Senate the Senate Met at 10 A.M

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

Vol. 150 WASHINGTON, THURSDAY, MAY 20, 2004 No. 72 Senate The Senate met at 10 a.m. and was APPOINTMENT OF ACTING period of morning business for up to 60 called to order by the Honorable LISA PRESIDENT PRO TEMPORE minutes, with the first half under the MURKOWSKI, a Senator from the State The PRESIDING OFFICER. The control of the majority leader and the of Alaska. clerk will please read a communication second half under the control of the The PRESIDING OFFICER. Today’s to the Senate from the President pro Democratic leader. Following morning prayer will be offered by guest Chap- tempore (Mr. STEVENS). business, the Senate will resume con- lain Rabbi Ellen Bernhardt, Head- The assistant legislative clerk read sideration of the Department of De- master of Albert Einstein Academy, the following letter: fense authorization bill. Senators WAR- Wilmington, DE. NER and LEVIN will continue working U.S. SENATE, PRESIDENT PRO TEMPORE, on amendments today and rollcall PRAYER Washington, DC, May 20, 2004. votes are expected on amendments to The guest Chaplain offered the fol- To the Senate: the bill throughout the day. Senators lowing prayer: Under the provisions of rule I, paragraph 3, will be notified when the first vote is God, Creator of the universe, source of the Standing Rules of the Senate, I hereby scheduled. of all goodness and mercy, we thank appoint the Honorable LISA MURKOWSKI, a The majority leader announced last Senator from the State of Alaska, to perform You for the bounty that is ours in this night that the fiscal year 2005 budget the duties of the Chair. resolution conference report may be- world. Help us to live so that we may TED STEVENS, be worthy of Your love as we strive to President pro tempore. come available and we may consider that conference report before the week do Your will. You have created each Ms. MURKOWSKI thereupon assumed one of us with uniqueness and im- concludes. Votes will occur over the the Chair as Acting President pro tem- next 2 days. Members should plan ac- planted within us a spark of the divine. pore. We come from many backgrounds cordingly. and ancestries, and we are bound to- f f gether in these great United States of RESERVATION OF LEADER TIME RECOGNITION OF THE ACTING America with its cherished values and The ACTING PRESIDENT pro tem- MINORITY LEADER high ideals. Let us remember the gifts pore. Under the previous order, the and responsibilities that God has given The ACTING PRESIDENT pro tem- leadership time is reserved. us as we strive to perfect the world in pore. The Senator from Nevada, Mr. our days and for generations yet un- f REID. born. MORNING BUSINESS f We beseech You to give strength and ORDER OF PROCEDURE wisdom to our Senators so that they The ACTING PRESIDENT pro tem- will continue to do their work in this pore. Under the previous order, there Mr. REID. Madam President, if the great Chamber and in every cubicle will be a period for the transaction of distinguished Chair would allow me a across this land. May they have the pa- morning business for up to 60 minutes, unanimous consent request, at the tience to listen to the voices of others, with the first half of the time under time the Democrats’ morning business the vision to see within the hearts of the control of the majority leader or hour begins, I ask unanimous consent each person, and the tenacity to con- his designee and the second half of the that Senator SCHUMER be recognized time under the control of the Demo- 1 tinue to strive to make this world a for 12 ⁄2 minutes and Senator BILL NEL- cratic leader or his designee. 1 better place for all humanity. And let SON be recognized for 12 ⁄2 minutes. us all say, Amen. f The ACTING PRESIDENT pro tempore. Without objection, it is so or- RECOGNITION OF THE ACTING f dered. MAJORITY LEADER The Senator from Kansas. PLEDGE OF ALLEGIANCE The ACTING PRESIDENT pro tem- f The Honorable LISA MURKOWSKI, a pore. The Senator from Kansas is recognized. MASSACHUSETTS COURT SAME- Senator from the State of Alaska, led SEX MARRIAGE DECISION the Pledge of Allegiance, as follows: f Mr. BROWNBACK. Madam President, I pledge allegiance to the Flag of the SCHEDULE United States of America, and to the Repub- I take a few minutes of the leader’s lic for which it stands, one nation under God, Mr. BROWNBACK. Madam President, time to speak in morning business on indivisible, with liberty and justice for all. this morning the Senate will conduct a one of the issues this week that has

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

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VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5894 CONGRESSIONAL RECORD — SENATE May 20, 2004 drawn, obviously, the attention of ev- This is a key issue. I look for this The other thing that was not recog- erybody across the country. It has hap- body to take up the issue in a constitu- nized and which some people wanted to pened in Massachusetts where, 3 days tional amendment defining marriage as ignore is the fact that we are much ago, in keeping with the rulings of four between a man and a woman. This is more secure today than we were 4 Massachusetts Supreme Court justices going to be a very difficult discussion. years ago. We didn’t realize, 4 years last November, the State of Massachu- I hope we can have a good, healthy dis- ago, the threat that was happening as setts started issuing marriage licenses cussion about the importance of mar- far as America. to same-sex couples, as thousands de- riage as a foundational building unit in I recall an opportunity where I was scended on the State. this society, a marriage between a man interviewed on BBC. This was an inter- This event has significant repercus- and a woman bonded together for life. view that happened a couple or 3 years sions for all Americans. According to That, indeed, is the best place to raise back. There was an individual on the news reports, local officials across the children according to all of our socio- other side who was from the Middle State were giving licenses to all who logical data. This institution has been East. requested them, without asking for in disrepair for 40 years—has had dif- He said: Senator, what you don’t re- proof of State residency. This is in ficulty for a long period of time—but alize is that you have been at war in open defiance of Massachusetts law, this is not the answer to curing it. This America for 5 years already because of which bars out-of-State couples from will harm it. what is happening in the Middle East. marrying in the State if the union While this is going to be a difficult They have already declared war on would be illegal in their home State. debate and discussion for us as a coun- you. Let there be no mistake about this. try, it is a valuable and important one If you look at it historically, we had The stakes in this battle over the fu- for us to have. I look forward to this a few terrorist attacks on small areas ture of our culture are enormous. This body, later this year, voting on a con- that were rather insignificant. We ig- attempt by an imperious judiciary to stitutional amendment defining mar- nored them. Then we had terrorist at- radically redefine marriage by a few riage as between a man and a woman. tacks on our embassies. We ignored people is both a grave threat to our I yield the floor. them. We had a terrorist attack on central social institution and a serious The ACTING PRESIDENT pro tem- Khobar Towers, and we ignored it. We affront to democratic rule in our Na- pore. The Senator from Texas. had the attack on the USS Cole, and we tion. Mrs. HUTCHISON. Madam President, ignored that. Then we had the World Our reaction to this threat hinges on I yield up to 10 minutes to the Senator Trade Center in New York, and basi- not only the future of marriage, which from Colorado. cally that was ignored. Finally, it took The ACTING PRESIDENT pro tem- is a foundational unit for building a the attacks by terrorists on the Twin pore. The Senator from Colorado. strong society, but our future as a self- Towers and the Pentagon of the United governing people as well—whether the f States for people to wake up, and this people here rule or a few on the judici- ACCOMPLISHMENTS OF THE LAST President and this Republican Congress ary. The actions of the Massachusetts FOUR YEARS stepped to the plate and we dealt with Supreme Court in Goodridge v. Depart- those security issues. We provided the Mr. ALLARD. Madam President, I money to make this a modern military. ment of Public Health, to mandate ho- thank the Senator from Texas for mosexual marriage, is simply the lat- This President said we needed a more yielding. modern military; that is, more mobile est instance of arrogant judges riding I want to talk a little bit about what roughshod over the democratic process because times are changing. has happened during the last 4 years Our threat is terrorism throughout and constitutional law alike, in a quest after the President assumed office, and the world. We need to be prepared to to impose a radical social agenda on after we have had a Republican Con- address that. This President and this America. gress. The decision in this case could not Congress didn’t put that off to the next I think there were problems within generation. We didn’t put it off until have been more radical. The court de- the world and within this country that somebody else would make a decision— clared that our society’s longstanding, nobody wanted to admit were hap- some future Congress or some future historical understanding of marriage as pening. President. We addressed that problem between a man and a woman was irra- For example, when this President immediately. We got after it. We are tional or completely lacking a founda- took office, the economy was going continuing to get after it. We still have tion in reason. As such, according to down. The previous President—Presi- a concern. the court, the only possible expla- dent Clinton—didn’t want to admit I am excited about the fact that we nation for the State denying marriage that, but it was a fact. And that is an are now talking about sovereignty for licenses to homosexual couples is prej- accepted fact today which everybody Iraq where they are going to be their udice, which the court compared with understands. own leaders. That doesn’t mean nec- racial prejudice of the past that op- Look at what the economy was doing essarily that we are going to have less posed interracial marriages. This anal- when President Bush assumed office. involvement as far as the conflict is ogy, of course, is false. It is misleading. The economy was going down. This concerned. The vast majority of African Ameri- President and this Congress, instead of But we need a leader in this world cans recognize that. The vast majority putting the problem off to future gen- who is trying to promote world peace. of all Americans recognize it. All erations and putting out a lot of rhet- And we need a leader who is trying to America should have the right to oric, did something. We cut the tax secure the economic health of this marry whomever they choose, regard- burden to stimulate this economy, and country and the world, too. less of race. But while most Americans today the economy is doing much bet- If we look back at the accomplish- believe that homosexuals have a right ter. Employment is growing. We have a ments of the last 4 years, there is a lot to live as they choose, they do not be- strong economy; it is getting stronger. to be proud of. I am glad we had some lieve that a small group of activists or People are being productive. We are real leadership in the White House. I a tiny judicial elite have a right to re- getting people into homes. Right now, am glad we had some real leadership in define marriage for the entire society we have the highest home ownership both the House of Representatives and and to impose this radical social exper- rate in the history of this country, the Senate that took on those issues. iment on the culture. which means people of all races and They are not easy issues. They are dif- Almost every benefit that is being ethnic backgrounds are getting an op- ficult issues. sought can be attained through con- portunity to own a piece of America. But the good message to the rest of tract or power of attorney. But let us That is where the strength of this the world is, America is stepping to the be clear, this is not a battle over civil country is. plate. rights. It is a battle over whether mar- Because of this President and this I am looking forward to continuing riage will be emptied of its meaning in Congress working on those kinds of the fight and the work with my other contradiction to the will of the people issues, there is a real difference in peo- Members to make sure we have a and their duly elected representatives. ple’s personal lives. strong economy. That is a challenge.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5895 We need to make sure those tax cuts President of the United States. He have died in this cause do not die in we provided are stimulating our econ- talked about our commitment and re- vain, that they are dealing with an omy and economic growth; make that minded us once again that our commit- America that has the leadership to economic engine go so we have a free ment to winning in Iraq is everything. stand up for our country and our secu- market system which is working; and There is no alternative. The President rity and our freedom and see it make sure those incentives are out talked about the commitment of win- through. That is what the President of there so Americans who work hard are ning the war on terrorism. the United States is doing for our justly rewarded and they can keep the That means we must stabilize Iraq. country today. We must not lose focus. benefits of their hard work in their We must begin to show the people in I ask unanimous consent to have own pockets and it doesn’t have to be the Middle East what freedom, free en- printed in the RECORD an article by sent to the Federal Government for it terprise, economy and jobs can do, and David Brooks from the New York to spend; they get to spend it them- an educational system that includes Times. selves in their own communities to boys and girls, giving them hope for There being no objection, the mate- meet there own needs. That means less the future. rial was ordered to be printed in the government. It means we can rely more He reminded us of the commitment RECORD, as follows: on individuals to assume responsi- we must make to see the war on ter- [From the New York Times, May 18, 2004.] bility. We need to work to make sure rorism through. This is not going to be IN IRAQ, AMERICA’S SHAKEOUT MOMENT we create opportunities for everyone. a war that goes exactly the way it was (By David Brooks) That is the challenge we have ahead planned. Name for me a war that did. of us. Tax cuts are expiring. One of the There’s something about our venture into Name for me a war that we said, Here Iraq that is inspiringly, painfully, embar- challenges we are facing in the Senate is what is going to happen, and it hap- rassingly and quintessentially American. is the budget deficit. We have to be pens just that way. This is war. We No other nation would have been hopeful sure we reduce the deficit. Our econ- have been attacked. Thousands of enough to try to evangelize for democracy omy is responding to the tax cuts. I Americans have been killed by fanat- across the Middle East. No other nation don’t think anybody can say tax cuts ics. Nick Berg was assassinated on vid- would have been naive enough to do it this didn’t help. We have to keep our coun- eotape in a brutal manner by ter- badly. No other nation would be adaptable enough to recover from its own innocence try strong for our security. rorism. This will continue to happen if We still have challenges, we recog- and muddle its way to success, as I suspect we lose our resolve. There is only one we are about to do. nize that. But we have to face up to way that we can lose; that is, for Amer- American history sometimes seems to be those challenges and not push them off ica not to see this through. the same story repeated over and over again. to future generations. It means winning the immediate war. Some group of big-dreaming but foolhardy I happen to believe you have to stand It means stabilizing Iraq and Afghani- adventurers head out to eradicate some evil up to terrorism. We learned the hard stan. It means sowing the seeds of free- and to realize some golden future. They get lesson. We learned if you ignore ter- dom and representative government in halfway along their journey and find they are unprepared for the harsh reality they rorism, it doesn’t go away. We learned those countries to show how it can be that you have to stand up to the ter- suddenly face. It’s too late to turn back, so done where people have not lived in they reinvent their mission. They toss out il- rorists. If you do not, with each success freedom for years. We must see it lusions and adopt an almost desperate prag- the recruitment of terrorist groups through. But it means more than just matism. They never do realize the utopia goes up. We saw that. With each suc- the next year in which we have the big they initially dreamed about, but they do cess, the terrorist groups get more important war on terrorism that we build something better than what came be- money, they get better financing, and see evolve before our eyes. It means we fore. they are a greater risk. are going to have to stick with it for 25 This basic pattern has marked our national style from the moment British colo- I compliment this President. I am or 30 years because it is going to take proud to be a part of a body which has nists landed on North American shores. that long to show education can give Overly optimistic about the conditions they over the last 4 years made a difference children hope for the future, so you would find, the colonists were woefully in this country. That is not to say we will not be able to brainwash a child to undercapitalized, underequipped and under- do not have a lot of challenges; we cer- think life is not worth living, that the skilled. At Jamestown, there were three gen- tainly have a lot of challenges. But we best thing one could do with their life tlemen and gentlemen’s servants for every are off to a good start. We need to con- is to give it up by killing other people skilled laborer. They didn’t bother to plant tinue. in a suicide bomb. enough grain to see them through the win- I look forward to working with this ter. The only way to warp children to be- But they learned and adapted. Settlement President for another 4 years because I lieve a suicide bomb is their best hope think he has done a good job in leader- companies were compelled to send more in life is by failing to give them an edu- workers, along with axes, chisels, scythes, ship. I think this country needs him. cation. An education gives them hope millstones and seeds. Eventually the colo- I think this Congress has some chal- for a future, for a job, for a family, for nies thrived. lenges ahead of it, and we need good, a quality of life that is worth living. Centuries later, it was much the same. The strong leadership. The President of the United States is guides who aided and fleeced the pioneers I yield the floor. laser-beam focused. He is focused on who moved West were struck by how clueless The ACTING PRESIDENT pro tem- many of them were about the wilderness winning the war on terrorism for the pore. The Senator from Texas. they were entering. Their diaries show that Mrs. HUTCHISON. Madam President, security of the American people and for many thought they could establish genteel how much time remains? the ability for freedom to live through- New England-style villages in short order. The ACTING PRESIDENT pro tem- out the world. If America does not They leapt before they looked, faced the pore. There is 18 minutes remaining on carry the beacon and the flag for free- shock of reality, adapted and cobbled to- dom in the world, who will? Who has gether something unexpected. the Republican side. And it is that way today. We are tricked by Mrs. HUTCHISON. Madam President, the capacity and the will to do it? If freedom dies in America, it will not hope into starting companies, beginning I would like to be notified at the end of books, immigrating to this country and in- 5 minutes, after which I will yield the flourish for very long anywhere else on vesting in telecom networks. The challenges remainder on our side to the Senator Earth. That is why the President is so turn out to be tougher than we imagined. from New Mexico. focused on the security of our country Our excessive optimism is exposed. New The ACTING PRESIDENT pro tem- by finding and winning the war on ter- skills are demanded. But nothing important pore. Without objection, it is so or- rorism. was ever begun in a prudential frame of dered. We see people wringing their hands, mind. Hope begets disappointment, and we are f asking, What can we do. We see the assassination of Nick Berg on videotape now in a moment of disappointment when it comes to Iraq. During these shakeout mo- COMMITMENT TO NATIONAL and we ask, What can we do to get out SECURITY ments, the nay-sayers get to gloat while the of this. We can make sure the violent rest of us despair, lacerate ourselves, second- Mrs. HUTCHISON. Madam President, death of Nicholas Berg is not in vain, guess those in charge and look at things we just heard a wonderful talk by the that the hundreds of Americans who anew. But this very process of self-criticism

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5896 CONGRESSIONAL RECORD — SENATE May 20, 2004 is the precondition for the second wind, the had a provision that will get the max- bottom but to go as high as they can grubbier, less illusioned effort that often imum amount of natural gas from our because they are afraid of terrorism. enough leads to some acceptable outcome. sources in America. We have to be hopeful that the cartel Today in Iraq local commanders seem to be The price of gas in California this and those who are producing oil, who allowed to try anything. We are allowing former Baathists to man a Falluja Brigade week averaged $2.27; in San Francisco, are listening to our President, some of to police their own city. We are pounding it hit $2.79; in Brooklyn, it was $2.49. whom have been friends of America, we Moktada al-Sadr while negotiating with Each time our citizens pump a gallon are hopeful they will see the light of him. There is talk of moving up elections so of gas in their cars, they should re- day, that this price they are forcing on when an Iraqi official is assassinated, he is member a majority of the Senators in the world is not good for them, either; not seen as a person working with the U.S., this body, led by the Republicans, has it is bad for their friends; it is bad for but as a duly elected representative of the been trying to pass a comprehensive the world. Ultimately, it is not good Iraqi people. energy legislation package. They are for the producing countries. Some of these policies seem incoherent, Our President is taking a leadership but they may work. And back home a new blocked each time by a filibuster led by mood has taken over part of the political the other side of the aisle, the Demo- role with reference to the energy-pro- class. The emerging responsible faction has crats, who, for some reason, find an ex- ducing countries. He is trying to ca- no time now for the witless applause lines cuse on every energy bill we propose. jole, to talk to them, to work on them the jeering jackdaws on left and right repeat Either this must be changed, that must so they will increase production and to themselves to their own perpetual self-ad- be changed, or this must be added— hopefully bring down the price of oil. miration and delight. Even in a political until we end up with nothing. Some want to embarrass the President year, most politicians do not want this coun- Fellow Senators, the Energy bill is by offering resolutions directing him to try to fail. not a silver bullet to lowering the price do what he is doing. Some want to use There are, for example, members of Con- gress from both parties who feel estranged of gasoline. It does, however, set forth the Strategic Petroleum Reserve as if from this administration. They feel it does a plan for the future. The Energy bill that reserve, which is there for emer- not listen to their ideas. But in this troubled will increase domestic oil and natural gencies, could, in fact, help with these hour, they are desperate to help. If but a call gas production that helps balance sup- high oil prices. The last time we tried, were made, they would burst forth with in- ply with our growing demand. The En- it affected gasoline prices by 1 cent. Do telligent suggestions: about Iraq, about po- ergy bill does a number of technical we want to reduce the emergency oil litical tactics, about getting additional ap- things. It removes a 2-percent oxygen- we have and then find in a few months propriations. ate mandate that will make it easier the terrorists do something and we are Remember, the most untrue truism in human history is that there are no second on refineries to make gasoline that can short of oil and then we have a real acts in American life. In reality, there is be traded between regional markets. problem because of it? SPR was for nothing but second acts. There are shakeout The Energy bill addresses the prolifera- that kind of situation. moments and redundantly, new beginnings. tion of boutique fuels. There are a Perhaps people forgot the last time The weeks until June 30 are bound to be number of State-specific gasoline refor- Iran cut a little bit of the supply to the awful, but we may be at the start of a new mulations that make refining more world, America was affected in a dra- beginning now. challenging and make marketing inef- matic way. That caused us to build Mrs. HUTCHISON. I yield the re- ficient. We can go on and on. SPR so we could never be immediately mainder of my time to the Senator This bill provides basic research in cut off and immediately forced to have from New Mexico. hydrogen power. Many ask, How are we our economy disrupted by a challenge Mr. DOMENICI. How much time do I going to get ourselves off of this tre- from outside. Why do we want to risk have? mendous demand for gasoline and that when the consequences will be The ACTING PRESIDENT pro tem- crude oil derivatives? One is hydrogen very little? pore. There is 12 minutes remaining. power. How do we do that without an Maybe some think they can blame an f energy bill that sets a policy of spend- economic downturn, because of high ing the research money on hydrogen energy prices, on President Bush. They HIGH ENERGY PRICES power with the automobile manufac- will not succeed. President Bush’s eco- Mr. DOMENICI. Madam President, turers to come up with a solution? nomic policy has brought America again this morning I will talk about We try, as part of a comprehensive from a recession to a vibrant, growing energy. I hope I have an opportunity energy bill, I said, try as we may—we economy. Its gross domestic product each week until we come to our senses cannot satisfy the other side of the increases are the highest in 20 years— and pass an energy bill to remind the aisle. I wonder if they really want an not 2 years, not 5 years, in 20 years. So American people one of the reasons gas energy bill. I am beginning to think it they are not going to deny that by fili- prices are spiraling, one of the reasons is their way or no way. They might bustering an energy bill. we are skeptical about our future is the even think the President of the United But I can tell you, the purpose of de- tremendously high price of crude oil. States might be helped too much with bating in the Senate is to let the Amer- That will never be reduced until an energy bill. I hope that is not true. ican people know who is responsible for America makes a commitment, until The benefits are being denied to the what. And I don’t know what to do. We the people of the world and the pro- American people. Some people want to have tried everything with reference to ducers of oil understand the United kick the political football around and getting an energy bill. Maybe we ought States of America is not going to sit by they hope they can score a touchdown. to ask the Democrats to sit down and and do nothing. We are going to have a We are actually going to score in high- talk about what they need. I am not comprehensive policy with one objec- er energy prices—and higher energy sure we could get anything out of that tive. That is to produce more alter- prices hurt the economy. I am a foot- because I am not sure they know. Be- natives that can be used by the Amer- ball fan. But that is one touchdown I cause it seems to me anything we try ican people to satisfy and supply their don’t want to see scored. just cannot get anywhere because one energy needs. That means we want to Right now we are focusing on high group or another, principally on the do more to produce natural gas, not sit gasoline prices. High gasoline prices other side of the aisle, seems to find idly by and let the demand increase are tied to the price of oil. What has fault; and there we go, we get nothing and soon be dependent on foreign coun- been making the price climb? We know done. tries for natural gas. there is huge demand in the world led Now, we have some who want to in- The occupant of the Chair comes by China, which is gobbling oil like you vestigate the oil companies because of from a State that has an abundance of would think there was no end to the the prices. I have, in this statement, a natural gas. But we have to bring it to supply. In addition, there is a risk fac- list of the investigations that have oc- the lower 48 States. The Energy bill tor being built into the price because of curred and who has done them. They which we propose, that the other side terrorism and the vulnerability of oil are powerful, neutral bodies that have of the aisle for the most part defeated, production. There is a risk factor that done them. They did one for California had a powerful provision which will is causing those who produce and sell it because their prices went sky- bring natural gas from Alaska. It also on the world market to not go rock rocketing. Nobody can find collusion or

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5897 price fixing. What has happened is the them begin to decide their future as Mr. DOMENICI. Madam President, I world demand is monstrous, and the free people who do not have to worry wonder if the Senator will yield for 30 cartel and others that are not part of it about getting killed, the sooner we can seconds? want to hold supply down to let prices let that happen, the sooner America Mr. CARPER. I yield. go up. will be back on the right track. But I Mr. DOMENICI. Madam President, I And what do we do? We sit here in am not sure that everybody in this say to the Senator, I heard your re- the U.S. Congress, wring our hands, country wants to get that over. marks, and I do want to say to the Sen- and complain and worry and talk about The ACTING PRESIDENT pro tem- ator, that while I do not know your President Bush needing a plan. Look, pore. The Senator’s time has expired. overall feelings about an energy bill, I he gave us a plan. If you want to argue Mr. DOMENICI. Madam President, I will say on a couple of very difficult about how he did it, go ahead, but look ask unanimous consent to have 1 addi- issues that I think are very important at it and see what it will do. For the tional minute. that were contentious—and many peo- most part, the things in that plan are The ACTING PRESIDENT pro temple on your side did not think we ought exactly what America needs. We need pore. Without objection, it is so or- to do—you stood tall because you un- to maximize our own production of oil. dered. derstand that we need diversification It will not be sufficient, but we can do Mr. DOMENICI. Madam President, I and you are not afraid to make votes. some things. We need to maximize the close by saying I would hope that as we And I thank you for that. production of natural gas. We need to prepare to go out for recess, everybody Mr. CARPER. I thank the Senator. maximize the potential use of coal. We in this body will examine their con- Madam President, on a brighter note, need to build every alternative into our science, examine their positions, and with respect to energy policy, a week national plan. Wind energy and solar that maybe they can come back and or so ago we passed a major bill called energy need the incentives that are re- say: Let’s sit down. Let’s get an energy FSC/ETI. Some people call it the JOBS quired. And, yes, in the end we have to bill. Let’s get the maximum kind of bill or a trade bill. But provisions of put some incentives in to get started flexibility for production of alter- the Energy bill were incorporated in with nuclear again. But we do not have natives in this country. Let’s see if we that legislation, important provisions to have all of these. We need the basics. can’t make the American electric en- that include incentives for renewable You cannot even get those done. ergy grid more powerful, stronger, forms of energy—solar, wind, geo- So from my standpoint, I hope we more reliable, and see that it can grow thermal—and incentives to encourage will quit blaming, quit wringing our and prosper. people to buy more energy-efficient ve- hands, quit talking, especially on the It is our future. How we energize it is hicles, hybrids, fuel-cell vehicles, to other side of the aisle, about what we our challenge. We cannot do it with make them more affordable, to get need to do, when, in fact, they are de- natural gas alone. We have to have al- more of them out on the road, and nying the very things they say we need ternatives. That is what we had pro- using less gasoline and diesel fuel, and to do by not voting for the things they posed. We must decide that we are also incentives for us to begin con- are talking about. In fact, I think we going to try. I chose this committee— verting to a greater use of what I call left the Budget Committee—because I could go through the RECORD and find biofuels—ethanol—and something we that many on the other side have got- knew how important this was, but, do in Delaware a lot on the Delmarva ten up and made speeches about what frankly, I never thought there would be Peninsula where we take soybean oil we need to do, and you could go down so many people who wanted to make it and mix it with diesel fuel. and tick them off, and most of them so hard for us to get an energy policy They were able to do something good are in the Energy bill. Most of the as has happened. I could not believe it, for the environment and actually re- things they talk about are in the En- as a veteran Senator. Frankly, I am duce significantly our use of diesel- ergy bill, but for some reason they amazed there are still those on the powered vehicles. would rather talk about it than vote other side who want to blame some- While it is still mid-May, we have a for it. They would rather talk about it body, want to tell us what we ought to fair amount of time to go before we fin- than offer amendments and get the do but do not want to vote for any- ish here. Before we finish, I hope we thing going. thing. will find common ground on the rest of I think what we ought to do soon is I yield the floor. the energy policy, and that it is also The ACTING PRESIDENT pro tem- offer a bill and offer a unanimous con- respective of our environment and the sent suggestion that we put it up here pore. The Senator from Delaware. Mr. CARPER. Madam President, as clean air concerns we have, and gives and we have 10 amendments on each the States the ability to recover dam- Senator DOMENICI prepares to leave the side and then we proceed to vote. I Senate floor, I thank him for his tenac- ages for their drinking supply that has think that would be a fair way to han- ity and his earnest desire to lead us to been damaged by MTBE. dle the energy crisis of America. It a balanced energy policy. I think he f would say, quit fooling around. You get knows there are plenty of us on this 10 amendments. That ought to be GUEST CHAPLAIN RABBI side who do want to reach the right enough to get your purposes out there. BERNHARDT balance, and I have enjoyed trying to We get 10. Then it is over with, and we Mr. CARPER. Mr. President, I ex- provide a little bit of that balance. press to Senator BIDEN my apprecia- vote. But I am sure if you tried that, Mr. BIDEN. Madam President, will tion for his inviting a wonderful every excuse in the world would be the Senator yield for a unanimous con- woman, a rabbi from Delaware, to forthcoming. Nobody will say: We need sent request? an energy bill. Let’s do something. Mr. CARPER. I am happy to yield. come here to be our guest Chaplain, They will say: Oh, no, it doesn’t have and to say how pleased we are, all of f this. There is a chance, a risk we will us, to welcome Ellen Bernhardt. She get hurt. They won’t take care of this ORDER OF PROCEDURE gave the invocation about 40 minutes and they won’t take care of that and Mr. BIDEN. Madam President, I ask ago. I told her it was one of the best in- we will get nowhere. unanimous consent that the Demo- vocations I have heard in the 3 years I So I close by saying I was also privi- cratic side be given an additional 10 have been privileged to be a Senator. It leged to hear the President speak this minutes of morning business, with the was as good as any I have heard. We morning. The Senator from Texas time equally divided between Senator thank you for not only coming to bring talked about it. I, frankly, have noth- CARPER and myself. Before the Chair the blessing of that invocation, but to ing but admiration for his fortitude, acts on this request, I am told it has remind us about what really matters. his strength, and his determination. I been cleared by the Republican side. I also thank her for just what she think if the United States and its peo- Mr. DOMENICI. We have no objec- does in Delaware. She has been a rabbi, ple can quickly assess the blame with tion. I think, about 17 years. She is a native reference to the prisons and get on The ACTING PRESIDENT pro tem- of Philadelphia. For the last 11 years or with letting our President and the pore. Without objection, it is so or- so, she has run a school in Delaware military people stabilize Iraq and let dered. which is, I believe, the only Jewish day

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5898 CONGRESSIONAL RECORD — SENATE May 20, 2004 school in our State. We have a lot of I arrived here almost 32 years ago He was famous for his passionate ser- schools, but only one Jewish day and I feel the same amount of pride mons from the pulpit, his love for Jew- school—Albert Einstein Academy. today that I felt then as I walk out on ish education, his love for Israel and There are youngsters in kindergarten, this floor. I know that sounds corny, the community he served. from age 5, up to the sixth grade. While but I really do. I am incredibly proud Rabbi Gewirtz was truly a spiritual it is a Jewish day school, it is non- of this institution. I remember the first leader and, as Ellen will tell you, is the denominational because whether the time I walked on the floor; my tem- reason she decided to become a rabbi. students happen to be Jewish or not, porary desk was the second from the We truly miss him, but his spirit is they can attend that school. I was kid- end over there. I realized I was stand- with her today. I know he is looking ding earlier about how most of them ing next to the desk where Daniel Web- down and is very proud. He was also are Baptists. Actually, I don’t think ster sat. I thought to myself, it is the proud of this place, proud of this coun- that is the case. That gives you the fla- only time I actually thought, my God, try, proud of the Senate. To have you vor of the nondenominational school. I what am I doing here? In the last 31 here, I am sure, he is smiling. have been privileged to know a number years, some in my constituency have There are a lot of other things I said: My God, what is he doing there? I of the kids who go there. They get a could and would like to say about have become accustomed to it. My im- wonderful education and start for their Ellen. As I said, we are very similar in pression at that time—and I don’t lives and go on to do great work. the sense that we are truly products of know the rabbi’s impression—was how We have been joined today not only our parents’ upbringing and, knowing by Rabbi Bernhardt, but also by three small this Chamber is. There is a close- her story, it is no surprise to me that of her children and her husband. We are ness to it. It is a comfort. Anyway, I she has devoted her life to Jewish edu- so privileged that she lives in Delaware am proud we are able to share the floor cation, community service, and to her and that she provides great leadership with the rabbi today. family. on the educational side, and also for a Let me say, my relationship and per- lot of us on the spiritual side, whether sonal connection with the rabbi is a Her grandparents came to this coun- we happen to be Jewish or not. Wel- quintessential example of the nature of try by way of Ellis Island. Her entire come. the State of Delaware. mother’s side of the family chose to re- Again, to my friend, JOE BIDEN, I I happen to know that the rabbi grew main in Eastern Europe and were trag- thank him for making it possible for up over her father’s drugstore in ically killed in the Nazi Holocaust. her to be here today. Belfonte, which I frequented a lot. I Her extended family was conspicu- Mr. BIDEN. Madam President, Dela- went to St. Helena, a Catholic grade ously absent from her life. As one can ware is a small State and everyone school in Claymont. Everybody knew imagine, this had a profound effect on seems to know everyone else. We know your father’s drugstore. Everybody Rabbi Bernhardt and her family’s life, just about everyone in the State. You hung out in your father’s drugstore. I priorities, and values. can’t go to the grocery store, church, am considerably older than the rabbi. Her father, Herman Gordon, was one synagogue, or mosque without running So we basically come from the same of the many heroic members of the into people you know. We go to each small neck of the woods, the same Armed Forces who chose to enlist in other’s events. It is a little like Alas- small neighborhood. the Army Air Corps at the outset of ka—small. Alaska is gigantic, but the The rabbi’s father was a heck of a World War II. Mr. Gordon served as a population is small. We go to each oth- guy, by the way. As a kid and a mem- waist gunner on the Flying Fortress B– er’s gatherings, and we are affected by ber of the Congregation Ades Kodesh 17 bomber. Shel Emeth, Ellen would study after each other’s achievements and each Based in England, his unit performed school with her rabbi, Rabbi Leonard other’s milestones, and we are affected missions over France and Germany, Gewirtz—a man I always affectionately by each other’s losses. Sometimes the clearing the way for our troops to land referred to as literally ‘‘my rabbi.’’ He closeness gets us in trouble, but I on the beaches of Normandy. On his introduced me frequently. He became would not change it for the world. 24th mission, his plane was shot down my first tutor—literally, not figu- It has been an honor and a pleasure over Germany. As a Jew, he became a ratively—because of my interest in to represent my State and to have the prisoner of war in Germany for 9 theology and the Holocaust. I remem- pleasure over the years to invite sev- months. The latter 3 months of his im- ber speaking up at a college, a rab- eral members of our clergy to come and prisonment was spent marching at gun- binical school in Philadelphia. I re- be guest Chaplains. point on the infamous ‘‘death march’’— member those big old thick shoes he Rabbi Ellen Bernhardt is our guest a desperate move by the Nazis to relo- used to wear, the kind that laced up Chaplain today. As Senator CARPER cate their POWs straight into the heart the side and squeaked on a linoleum said, she is finishing her 11th year at of Germany, out of the hands of the Al- floor. I was speaking in this room that the Albert Einstein Academy in Wil- lied forces which were closing in, which was not very commodious for speaking; mington, not far from where I live. The I always thought was a metaphor for it was long and with low ceilings, and academy is open to all students, al- the insanity, the lust of Hitler and the podium was in the middle. It was a though it is the only Jewish day school Nazi Germany. This nightmare all in our State. shoal, actually. He came late and want- came to an end when Mr. Gordon’s It has been a pleasure visiting the ed to hear me speak. He opened the camp was liberated by General Pat- school on a number of occasions. Over door and the congregation was seated ton’s army. the years, we have spent a fair amount and the door smacked against a pew. of time in fundraising events together, He walked in and, as you know, he It is quite a story, quite a heritage, sharing the dais, and attempting to see walked right up to the front and sat and quite a family. As my dad, who to it that the school remains vibrant. down. It was kind of a tense moment. passed away about a year and a half That has been going on, actually, be- Everybody wondered who is this guy ago, would say: Girl, you have good fore the rabbi was running the school. walking in. I said, ‘‘My rabbi has ar- blood; you have real good blood. But the fact is, her dedication, talent, rived.’’ I only hope our children and grand- faith, and deep abiding commitment to After speaking to this all-Jewish con- children develop an appreciation for her students and her work in my State gregation, a group of ladies my mom’s the sacrifices of so many Americans, has touched many people in our com- age, who were in an atrium that con- such as Ellen’s father, and the thou- munity. For that, we are all very nected the shoal to the university, the sands of soldiers who are currently grateful. school—as I walked out, they were ar- serving abroad have done for this coun- I believe I speak for all my col- guing. I could hear them saying: Yes, try. leagues when I say thank you for your he is. No, he isn’t. Yes, he is. A lady One of the reasons I am telling this thoughtful, inspirational invocation grabbed me by the coat and said: You story is to give my colleagues and con- this morning. We need it badly at this said ‘‘your rabbi. He had a similar in- stituents back home an insight into moment in the United States. We are fluence on me—though much more pro- what motivates our guest Chaplain this honored to welcome you to the floor of found to you but no less significant to morning to energize her students, fam- the Senate. me.’’ He was a great man. ily, and friends to better the Delaware

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5899 community and to uphold our Amer- Mr. REID. Madam President, I say to Mr. Chalabi is the President of the ican values with the same patriotic the distinguished ranking member, we Iraqi National Congress. I was so con- zeal exemplified by her father. have 25 minutes that have been allo- cerned about this that my friend from Last year, for the fourth consecutive cated. We could easily, I am confident, Nebraska, Senator HAGEL, and I were year, I submitted a resolution in the get another 10 minutes. Does the Sen- literally smuggled into northern Iraq Senate to designate the week of Vet- ator wish to speak right now? about a month before the war began be- erans Day as ‘‘National Veterans Mr. BIDEN. Madam President, I cause we wanted to meet with the Awareness Week.’’ It explicitly under- would like to do whatever accommo- Barzani and Talibani clients in north- scores the need for our schools to de- dates the Senate. ern Iraq to determine what their atti- velop educational programs to high- Mr. REID. Through the Chair to the tude was, first, toward our invasion light the contributions of veterans in distinguished Senator from Florida, with Iraq—would they be with us? our country. how is the Senator’s time schedule? There were reports that they would This past year, Ellen held a very Mr. NELSON of Florida. Madam have been, but we wanted to find out moving ceremony. The school invited President, I say there is never a dull firsthand. every friend, relative, or neighbor of a moment in the life of this Senator from And B, we wanted to find out whether student who served in our military to Florida. Since I have learned the ways Ahmed Chalabi spoke for them. The come and speak at the ceremony in of comity, accommodation, felicity, I leaders of both those clans said: We front of the entire school and faculty yield to the distinguished Senator from want to make it clear that the INC about their experiences. the State of Delaware. In fact, in my does not speak for us. We did form the Madam President, included in the list remarks about are we better off now INC with him, but he is out for himself, of speakers was the mother of LT Scott than we were 4 years ago, I was going not us. Travis, a Wilmington native, a grad- to try to engage my distinguished col- I could never quite understand the uate of Brandywine High School and league in a colloquy. incredible preoccupation of the admin- West Point, who is currently serving in Mr. REID. Madam President, I ask istration with Mr. Chalabi. I think that Iraq. unanimous consent there be 5 addi- reliance has done us great damage in The ceremony brought real people tional minutes on both sides for morn- terms of establishing legitimacy. with real stories into the classroom ing business. That will allow the Sen- Today’s raid comes on the heels of an and gave the kids a tangible sense of ator from Delaware to speak for 10 announcement earlier this week that what it meant and what it means to minutes. If my unanimous consent re- the Defense Department belatedly, sacrifice for one’s country. The climax quest is granted, that would allow him after well over a year, has cut off the was when students pinned medals on to begin now. $340,000 monthly payment to the INC, the veterans in attendance as a way to The ACTING PRESIDENT pro tem- headed by Mr. Chalabi. personally thank them for their serv- pore. The Senator will need an addi- Last month, I wrote to the Secretary ice. tional 10 minutes. All time in excess of State and the Secretary of Defense That is the kind of school Ellen runs. has expired. asking them to explain why we con- That is the kind of person Ellen is. Mr. REID. Our time is gone? tinue to pay Mr. Chalabi a monthly sti- By the way, for the record, let me The ACTING PRESIDENT pro tem- pend. The action was seen as sort of say that in my 31st year in the Senate, pore. There are 231⁄2 minutes remain- putting our thumb on the scale—we say Rabbi Bernhardt is only the fifth guest ing. we want the Iraqis to decide their out- Chaplain I have invited from Delaware, Mr. REID. Where did our time go? come, and here we are pouring into one following in the footsteps of Father Did somebody speak? man, an outfit, $340,000 a month. Jim Trainer from St. Patrick’s Church, The ACTING PRESIDENT pro tem- It is no secret Mr. Chalabi has long Rabbi Kenneth S. Cohen from Con- pore. The senior Senator from Dela- been the favorite of the Pentagon civil- gregation Beth Shalom, and Father ware and the junior Senator from Dela- ians and the Vice President, although Robert Balducci from St. Anthony’s ware. the CIA, the uniformed military, and Parish. Mr. REID. Madam President, I ask the State Department have been ada- From where I sit, you are in good unanimous consent for an additional 10 mantly opposed to him. company and so are they. We recently had a meeting with the I thank Rabbi Bernhardt for being minutes on each side, then. Secretary of Defense in a closed ses- here this morning. By the way, you The ACTING PRESIDENT pro tem- sion, but I am allowed to say this in should be very proud of your son sit- pore. Without objection, it is so or- public, and I raised the question of ting behind me who is a relatively new dered. funds to Chalabi and the phrase—well, member of my staff. He is already hav- f I guess I cannot quote exactly what the ing an impact in the conduct of busi- AHMED CHALABI phrase was. I cannot quote the Sec- ness around here. Mr. BIDEN. Madam President, I Again, I know I speak for all my col- retary. But the point is there has been thank my friend from Florida who leagues when I welcome you and your a real difficulty in pushing back. knows much more about what I am family here today. Thank you for the It has been clear for some time our going to mention today. He and I sacrifices you have made for this coun- close association with Mr. Chalabi has worked on what I am going to talk try, and thank you for the values you damaged American interests in Iraq. about for some time. And that is— are imprinting on the young men and Chalabi is the best known figure in the there are reports coming in that the women of my community. Iraqi Governing Council, according to a I yield the floor. home and offices of Ahmed Chalabi poll taken. We appointed him. By the The ACTING PRESIDENT pro tem- were raided today in Baghdad. way, a poll taken a couple of months pore. The Senator from Nevada. I do not have clear evidence yet as to ago in Iraq shows that he is not only whether they were raided by the Iraqi the best known member of the Gov- f government or by the CPA, but both erning Council, but he is also the least ORDER OF PROCEDURE the Senator and I have been incredible popular, with a negative rating of over Mr. REID. Madam President, the dis- skeptics of this administration’s reli- 60 percent. tinguished ranking member of the For- ance on this fellow, Ahmed Chalabi, Chalabi, as my colleagues will recall, eign Relations Committee wishes to who has been indicted, tried, convicted, was flown in to southern Iraq literally speak on an important subject. Will and sentenced in Jordan. days before the statue of Saddam fell. the Senator indicate how much time he For the last 2 years—although I have It was actually during the war; he was wishes to take? nothing personal against Mr. Ahmed flown in to a portion of southern Iraq Mr. BIDEN. Madam President, I say Chalabi—I have been urging this ad- we had already conquered and passed. to the Senator, I do not want to inter- ministration, particularly the Sec- He had been flown in without the fere. I want to speak for about 10 min- retary of Defense, the Vice President, knowledge of the State Department utes regarding Ahmed Chalabi. I do not and Mr. Wolfowitz: Do not put our eggs and other senior officials. I guess he have to do it now. into Mr. Chalabi’s basket. was going to be the triumphant Shi’a

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5900 CONGRESSIONAL RECORD — SENATE May 20, 2004 who was going to march through the sein’s. He refuses to give it to us. He Mr. NELSON of Florida. I did not Shi’a territories heading up to Bagh- refuses to turn it over to the U.S. mili- have a request. dad, except one thing, nobody liked tary. He will let us see it but not keep The PRESIDING OFFICER. The Sen- him and nobody followed him. it. And this is our guy. It is like our ator wishes to pose questions to the I do not know what it took to get the guy in Havana. You know, our guy? other side. message to this administration that I do not know what it takes. It is like Mr. SCHUMER. I apologize. I thought this guy was not helpful but this guy taking a wombat and banging it up the something was said about 10 minutes. was hurting our legitimacy. At that side of the heads of some of these guys The PRESIDING OFFICER. The Sen- time, I rose in the Senate and said, and the civilians in the Defense De- ator from Florida. what are we doing here? I think my partment. Mr. NELSON of Florida. How much friend from Florida as well, if not here This guy is bad news for the United time is allocated to this side on morn- in the Senate, I know in our hearings, States, whether the reason for the raid- ing business? The PRESIDING OFFICER. The said, what are we doing this for? How ing of his headquarters and his home Democratic side has 22 minutes re- are we saying we are liberating the relates to corruption or not. We have tarnished our reputation by our asso- maining. Iraqis, we are going to let them choose Mr. NELSON of Florida. Is it my un- their government and we are flying in ciation with this man. It is time to begin recouping it by ending our efforts derstanding this Senator would have 10 a handpicked guy? minutes? Well, that sort of went south, figu- to foist an unpopular leader on Iraqis and supporting a process which will The PRESIDING OFFICER. Correct. ratively speaking. It was clear we were Mr. NELSON of Florida. Does that attempting to put him in a place to produce more legitimate leaders. The PRESIDING OFFICER (Mr. EN- give the Senator from New York take over the reins of Baghdad. Toward enough time? the end of that year, he organized the SIGN). The Senator’s time has expired. The Senator from Florida. Mr. SCHUMER. Yes. militia, which was implicated in in- Mr. NELSON of Florida. Mr. Presi- Mr. NELSON of Florida. All of my stances of looting in Baghdad. The U.S. dent, I was going to address the topic, speech on ‘‘are you better off now than military wisely ordered the militia to ‘‘Are you safer than you were 4 years you were 4 years ago,’’ I am going to disband, but there were some sup- ago,’’ but while we have the distin- save for another day. I want to take porters here saying it is okay for him guished Senator from Delaware in the advantage of one of the most knowl- to set up a militia. Chamber, I want to address a couple of edgeable Members of the Senate. In We are trying to disband militias, issues with him. thinking about the question of are you and we wonder why we have so little le- The PRESIDING OFFICER. The Sen- better off now than you were 4 years gitimacy. This is not Monday-morning ator from Delaware. ago, are you safer now than you were 4 quarter-backing. If need be, for the Mr. BIDEN. The bottom line is it is a years ago, I have had the privilege of record, I will come back and lay out all long time in coming. I hope this means sitting at the knee of the former chair- the statements we made 2 years ago we have listened to the sounds of man of the Senate Foreign Relations about Mr. Chalabi, a year ago, 8 voices in this administration. I say to Committee. He has taught me some- months ago, 10 months ago, as recently my friend, we both know this: We have thing about two countries where we as a hearing 2 days ago in the Senate. both tried to help this administration, better keep a laser eye focused, namely It has done us serious damage. High- but it is as though there is a San Iran and North Korea. ranking civilians in the Defense De- Andreas fault that runs down the mid- I ask the distinguished ranking mem- partment continue to back Mr. dle of this administration, with two ber of the Senate Foreign Relations Chalabi, despite numerous warnings very different views of the world. One Committee, as I hold up this chart about his past dealings. is held by Mr. Powell, the State De- about suspected nuclear weapons in The King of Jordan made known his partment, and the uniformed military, North Korea, are we safer now than we country’s distaste for Mr. Chalabi. and the other being the Vice President, were 4 years ago? They did not hide it. The Foreign Min- the Secretary of Defense, and Mr. Mr. BIDEN. Clearly we are not. That ister of Jordan came to me personally WOLFowitz, who are all fine, honorable, is not to suggest you are suggesting it and said, for God’s sake, do not deal and decent men who have a very dif- is not good Saddam is gone. I think we with this guy; do you not understand ferent view of the world. are, in a marginal sense, safer because he is going to hurt you? The view of their world which they he is gone. But I think the effect of Mr. Chalabi has been convicted on have been promoting has turned out what we have allowed to happen, or fraud charges stemming from a failure not to be so accurate. I hope this is evi- what has happened in the rest of the of the Petra Bank which Chalabi head- dence of the fact the President is start- world, has literally put us in more ed. In recent months, Chalabi has been ing to listen to saner voices. jeopardy. moving closer and closer to the reli- I facetiously said—nobody asked—if Mr. NELSON of Florida. Then, Mr. gious elements in Iraq, apparently you had a baseball team and you had President, indeed this is what the Sen- belying his claims to be a secular lead- somebody who batted zero and it came ator from Delaware has constantly er. His close association with time to put in a pinch-hitter, are you preached. He has been a Johnny-one- hardliners in Iran, including Ayatollah going to look at the batting averages? note on how we ought to engage with Khamenei, has been a matter of mys- It is time to look at the batting aver- other nations around this world, tery and some suspicion, but we con- ages, Mr. President. Listen to those through diplomacy, to better the pro- tinued to support him. folks in your administration. There are tection of the United States. The reason for today’s raid is not yet some very good ones who have better Is it the impression of the Senator clear, although there were reports ear- batting averages, and I hope this is be- from Delaware we have been dragging lier this week that one of Chalabi’s as- ginning that recognition. our feet with regard to North Korea, sociates, the finance minister, is being Mr. NELSON of Florida. Mr. Presi- before we ever started engaging them investigated by Iraqi police for a scam dent, I want to posit a couple of ques- in international and one-to-one discus- involving government vehicles. There tions to the distinguished immediate sions? have been other reports of corruption past chairman of the Senate Foreign Mr. BIDEN. Mr. President, I say to allegations as well. Relations Committee. How much time my friend—I will make two points I am not making a judgment on that do we have remaining? here. One is, it was not only the Sen- at this moment. We will wait to see. The PRESIDING OFFICER. The Sen- ator from Delaware and Florida, but But I am making a judgment, did make ator from Florida has 10 minutes. also the Senator from Indiana, the Re- a judgment, and will continue to make Is there objection to the unanimous publican chairman, who pointed out we the judgment that Mr. Chalabi is hurt- consent request? Without objection, it made a mistake by dismissing the pol- ing us, not helping us. is so ordered. icy of engagement of the last adminis- One other point; Mr. Chalabi’s guys The Senator from New York. tration. Even the Secretary of State of got in and got hold of a whole lot of in- Mr. SCHUMER. I did not hear the re- the United States of America, Mr. Pow- telligence data that was Saddam Hus- quest. ell, when Kim Dae Jong of South Korea

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5901 came, said we were going to continue we are safer now in our international The PRESIDING OFFICER. The time engaging the North as Mr. Kim wanted diplomacy results than we were 4 years of the Senator has expired. us to and thought we should, as our ago? Mr. NELSON of Florida. I ask unani- Japanese friends thought we should, Mr. BIDEN. No, we are not. But we mous consent it be charged to our time and the President summarily stopped could be if the President is willing to and that we have 1 additional minute that. I think that was another mistake. not stay the course but change the so the Senator can finish his answer. I make another point about Iran. The course. There is an opportunity, if the The PRESIDING OFFICER. Without neoconservative view of why we should President begins to listen to the cor- objection, it is so ordered. have gone into Iraq alone is it would rect voices in his administration, to Mr. BIDEN. The bottom line is the teach a lesson to the other mal- internationalize this, to bring in the neoconservatives believe our power is contents in the world such as the Ira- major powers, to actually leave Iraq in enhanced by leveraging power. Mean- nians. They were going to say, My God, December of 2005 with a representative ing if we go alone without any help, look at the unilateral use of force; we government which will have a positive the malcontents of the world go: Oh, better behave. I point out what my impact on the region over time. It is my God, look at them, they don’t even friend knows well and we talked about. still possible, but the President must listen to the rest of the world. They Prior to our invasion of Iraq, Iran had quickly call a summit meeting of the have this awesome power. We should a genuine democratic movement—not major powers; quickly get them to listen to them. prowestern, democratic movement. It agree to sign off on Mr. Brahimi’s plan It might work if we had an army of 12 was the Majlis, their parliament, 195 of a new government; quickly get million and a surplus of $500 billion a people. There was a genuine movement. NATO to agree to have a NATO-led year instead of an army that is one- You had the mullahs and the appa- multinational force, sanctioned by the twelfth and a deficit of $500 billion a ratus and the clerics who controlled se- United Nations; and quickly, quickly year. It doesn’t work. curity and controlled the intelligence demonstrate he understands the Now ideology has run head on into apparatus, afraid of world opinion if breadth and depth of the damage done reality. For ideologues, like all honor- they crushed that democratic move- by the Abu Ghraib prison scandal, bull- able people, it is difficult to change. It ment. doze that prison down, build a hospital is a little like me as a practicing What did they do? If, in fact, the in its place, release those prisoners Roman Catholic denying the Trinity. neocons are correct, and having 140,000 who should not be there and keep the You can’t deny the Trinity and be a troops in Iraq was going to teach Iran others in a different environment and Catholic. It is not possible. They can- a lesson, in the midst of our greatest open it up. He still can do this. But my not acknowledge they need the inter- show of force in Iraq, the clerics in friend knows, we can’t do it. Only one national community and stick to a the- Tehran would have been afraid to man, because of the majesty of his of- sis that has been theirs for the last 12 touch the democratic movement, for fice, can do it: the President of the years. That is as quickly, succinctly, fear of world reaction. United States. He can do it. I hope he and as accurately as I can state it. As Obviously they were not frightened does not squander this last oppor- Samuel Clemens said: All generalities by our show of force. There is no demo- tunity. I am hopeful he will not. are false, including this one. I made a cratic movement left. For instead the I believe he understands more now. I bit of a generalization, but I believe an clerics crushed it. They disbanded it. hope he begins to listen to the uniform accurate one. So that is another example of the military and Mr. Powell, what they Mr. NELSON of Florida. Mr. Presi- two most dangerous states for the have been counseling along with you dent, what we have gotten in a few United States of America today if they and I and Senators LUGAR, HAGEL, minutes is a short course of what, in MCCAIN, and others all along here. spiral out of control—Iran and North the opinion of this Senator from Dela- There is still time. But I believe this is Korea. Both present a greater threat to ware, and in the opinion of this Sen- the last serious chance he has to get it America today than they did 3 years ator from Florida, we need to do: Inter- right by June 30. ago. nationalize the effort, build a con- Mr. NELSON of Florida. Mr. Presi- Mr. NELSON of Florida. Mr. Presi- dent, I certainly agree with the Sen- sensus, reach out, bring in an inter- dent, I further ask the distinguished ator from Delaware. I will ask a final national force such as NATO, led by former chairman of the Foreign Rela- question of him. Why does the Senator the American military, bring in a sen- tions Committee with regard to nu- from Delaware, one of the most knowl- ior international diplomat, prepare clear weapons and the acquiring of nu- edgeable in this entire body on inter- Iraq for governing itself, and be pre- clear technology and the ability to national affairs—— pared to be there for the long haul. make a bomb in Iran, are we safer Mr. BIDEN. I thank my friend. I yield the floor. today than we were 4 years ago? Mr. NELSON of Florida. Why, in his The PRESIDING OFFICER. The time Mr. BIDEN. As we both know, the de- opinion, does the administration con- of the Senator has expired. The Sen- tails of that are classified, but we are tinue to resist the outreach of building ator from New York. allowed to say, and I give you my opin- consensus in the international commu- The PRESIDING OFFICER. The Sen- ion, and I believe it would be the con- nity, to help us with problems such as ator from New York. sensus of the intelligence community: Iraq and Iran and North Korea? Why is f No. We are not safer. there resistance to that, I ask the Sen- NATIONAL SECURITY Mr. NELSON of Florida. Mr. Presi- ator from Delaware? dent, I further ask my friend from Mr. BIDEN. First of all, I thank the Mr. SCHUMER. Mr. President, I Delaware, given the fact of what we Senator for his compliments that are thank my colleague from Florida for have heard in the testimony in the excessive and not accurate, but I thank his persistence to get to the truth, and Foreign Relations Committee over the him nonetheless. But let me say in a my colleague from Delaware, who suc- last week, and also in the Senate second, I took the time 4 years ago to cinctly described our problem bril- Armed Services Committee; given the ask my senior staff to go back and get liantly in terms of the ideology of the fact my friend from Delaware and I every major work written by the neocons running into reality. I could have had long conversations about not Straussians, the neocons, I mean it sin- not agree more. only do we not need to pull out of Iraq cerely, and Tony Blinken, former Na- Ever since I was in college in the late but we need to increase our troop tional Security Agency, my chief guy, 1960s, I would say to my colleagues, strength in Iraq because the alter- got together 11 or 12 books, the most ideologues have bothered me. Anyone native would be unthinkable, for us to seminal volumes written in the last who thinks they have a monopoly on turn tail and run and create a vacuum decade by the neoconservatives. These truth, and there is only one way to see which would be filled by terrorists, are honorable, bright, serious people— the world, always gets us into trouble. which would only give succor and en- patriotic Americans. They can be ideologues of the far left, couragement to the other radical ele- If you read what they say, they mean they can be ideologues of the far right, ments in the region, including Iran, what they say. What they say is the they can be ideologues just on one does the Senator from Delaware think value of America—— issue. America is a place where we all

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5902 CONGRESSIONAL RECORD — SENATE May 20, 2004 come together. It is a place of con- was down, we know that. But we are taxes, cutting taxes, you cannot do it sensus. not close to where we should be. all. And it seems to me homeland secu- I tend to believe in a strong and mus- What has happened is basically this: rity should be just as high a priority as cular foreign policy. I think the war on While this administration is willing to helping our troops overseas fight the terror is real. But by being so blind to fully fund the war on terror overseas— wars in Iraq and Afghanistan. Yet the realities of the world, those who and we will get repeated requests for there is nothing. are hawks should be more angry at more dollars, which we will support, It hurts our localities. It is not just some of the things that have been provided they are planned out and we New York City, my city, where, obvi- done, as my colleague from Delaware see what they are doing with the ously, we have a real problem. In Buf- outlined, than those who are doves be- money—we are totally short on home- falo, Rochester, and smaller places, cause we are going to need strength land security. There are so many areas Watertown, Jamestown, talk to the po- and fortitude to continue this war for where we are weak: Port security, rail lice and fire departments, and they are decades. security, computer technology, the trying to do their job. They do not I thank both my colleagues. I was borders, who is coming in and who is have the dollars to do it. So they privileged to listen to their erudite and not. stretch and do their best. But it is not illuminating explanation. What is frustrating is, we can solve being done right. Over the last few days, we have been all these problems. They are not tech- In place after place after place, we discussing the question: Are we better nologically beyond our reach. We can are only inspecting 2 percent of the off than 4 years ago? We have been dis- have foreigners cross our borders free containers that come in on our ships. cussing mainly domestic issues the last and clear and yet keep bad people out Two percent? Do you want there to be few days. Today we are discussing it on if we have the right computer systems a 2-percent chance that we stop some- national security; are we better off and the right cards that we can give to one from smuggling in something ter- than we were 4 years ago. I guess this foreigners before they come in. rible? We have the technology to do it. means our safety. And there are pluses We can make our rail and our ports It costs dollars. We cannot do home- and minuses. far more secure. We can develop de- land security without the necessary re- Certainly in the wake of September vices that can detect explosives and bi- sources to make it happen. 11 and the horrible attacks—and now ological and chemical weapons. We can And every single time, the one place that the September 11 Commission was detect nuclear devices so, God forbid, if where we have done a good job is on air in my city yesterday, I am living them one is sent over here, we will get it at security, to prevent people from smug- all over again and it shakes my insides the borders. gling weapons on the planes. Even to remember what happened, to re- And why is the pace so slow? I will there we are not doing enough, but we member going the day after with my tell you why. Somehow the priorities have done better. colleague, Senator CLINTON and Mayor in the White House are not to spend I give credit in one other place: In Guiliani and the Governor, and seeing money on homeland security. It is to the biological area, we are doing a B. It what happened—certainly we have re- talk about it. It is to do some photo op- is not an A—it should be an A—but we sponded. It is good we have responded. portunities. Let me share with the are doing B. In almost every one of the Some do not want to respond or find American people somebody who has other areas we are at C’s, D’s, and F’s. every response wrong, and you get been deeply concerned and ahead of our Who in America would not spend dol- caught in a quagmire of no response, task force on this side on homeland se- lars to make us safe so that, God for- which would be the worst response, in curity. Every time we ask for the dol- bid, another September 11 does not my opinion. lars that are needed to tighten one happen? No one. But, once again, it is Having said that, I focus on two areas area—we say $10 is needed, and they the ideologues in the White House who where we should be a lot better off say, We will give you $1.50. say they hate spending money on do- than we were 4 years ago, where there An example, shoulder-held missiles. mestic things. It is not just education is a large deficiency. One I will touch We know the terrorists have them. God or health care, it is homeland security. on is Iraq. Again, as somebody who forbid, they smuggle 10 of them into So we are not as well off, we are not supported the President going into Iraq this country, and on a given moment close to as well off as we should be. We and supported the $87 billion, I am take down a plane in New York, Chi- can do a lot better. troubled, deeply troubled, by the lack cago, Los Angeles, Houston, Seattle, The bottom line is this: In area after of planning, not just in the prisons but Denver, Boston, Miami. The mayhem. area we should be far more secure than in the whole way the peace has been Of course, all the progress we are try- we are. We have taken some steps in managed. ing to make on the economy would go every area, but who wants to wake up No one knows what is going to hap- right down the drain. No one would fly one morning and say: What if? God for- pen on June 30. We set a June 30 dead- for 6 months or a year. bid, there was a terrorist incident the line and then we have to fill in the We can arm every one of our com- day before, and we say: What if we had blanks. What do we want to do? How mercial planes so they can avoid these put the detectors on the cranes and long does it take? The lack of planning shoulder-held missiles. Our military ports to avoid nuclear? What if we had has been troubling. It is taking the planes have them. Air Force One has made our ports secure? great military victory we had in Iraq, a them. People on their own private jets, Mr. President, I hope the administra- justified victory, and turning it into wealthy people, have them. We are not tion will change its view on homeland certainly less than a complete success doing it on our commercial planes. It is security and spend the dollars that are in terms of what happened afterward. a slow walk. necessary. So this inadequate planning, the ‘‘go We said take $8 billion to do the The PRESIDING OFFICER. The Sen- it alone’’ attitude which my colleagues whole thing in 2 years out of the $80 ator’s time has expired. discussed, means we should be a lot billion we are spending on the missile f better off than we were. defense system—which was designed to The place I want to focus on in my fight Russia and now Russia, thank CONCLUSION OF MORNING remaining few minutes is homeland se- God, or the Communist Soviet Union, BUSINESS curity. It is a truism that has been is no longer our enemy. And they said The PRESIDING OFFICER. Morning stated before, but it is not irrelevant no. They do not say let’s not do it, but business is closed. still. To win a war, to win a game, you they say let’s spend $50 million and f need a good offense and a good defense. study it. My colleagues talked about some of We know what is going on. I have NATIONAL DEFENSE AUTHORIZA- the problems on our team’s offense. Let spoken to people in the White House TION ACT FOR FISCAL YEAR 2005 me talk about our problems on our who will talk to me privately and say The PRESIDING OFFICER. Under team’s defense. We are better off than they will not spend a nickel on home- the previous order, the Senate will re- we were 4 years ago in terms of homeland security. Between the military sume consideration of S. 2400, which land security. No question. Our guard and the idea of cutting taxes, cutting the clerk will report.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5903 The legislative clerk read as follows: being treated and disposed of onsite. I understand Senator GRAHAM might A bill (S. 2400) to authorize appropriations Unless the law is clarified, these plans have an amendment he wants to bring for fiscal year 2005 for military activities of will not be able to proceed, and it will forward. the Department of Defense, for military con- be impossible to devise new ones. Mr. President, I recognize the Sen- struction, and for defense activities of the It is our responsibility in the Con- ator from South Carolina. Department of Energy, to prescribe per- gress and as members of the Armed The PRESIDING OFFICER. The Sen- sonnel strengths for such fiscal year for the ator cannot recognize other Senators. Armed Forces, and for other purposes. Services Committee to clarify the law so as to allow the plans agreed upon by The Senator from South Carolina. The PRESIDING OFFICER. The Sen- DOE and the States to proceed. I am AMENDMENT NO. 3170 ator from Colorado. convinced if we work together we can Mr. GRAHAM of South Carolina. Mr. Mr. ALLARD. Mr. President, I under- achieve the same kind of results on President, I call up amendment No. stand Senator WARNER is on his way to complex issues such as we achieved at 3170. the floor. I thought, in the meantime, Rocky Flats, where we accelerated The PRESIDING OFFICER. The I would make a few comments on a cleanup by 40 years at Rocky Flats, clerk will report the amendment. very important section of the Defense significantly reducing risks to the pub- The senior assistant bill clerk read as authorization bill. Then the plan is to lic and workers and saving the tax- follows: recognize Senator GRAHAM of South payers $10 billion. Carolina. I believe he has an amend- The Senator from South Carolina [Mr. If we do not get this problem solved GRAHAM] proposes an amendment numbered ment he is working on. 3170. As chairman of the Strategic Sub- at the nuclear sites in Idaho and Wash- The PRESIDING OFFICER. Without committee of the Armed Services Com- ington and South Carolina, what we objection, reading of the amendment is mittee, I have the responsibility of are going to end up with is a possible dispensed with. overseeing a lot of nuclear programs, increase in additional costs of $86 bil- The amendment is as follows: one of the most important of which is lion. We simply cannot deal with those nuclear cleanup. The Department of kinds of costs. And consider the stress (Purpose: To provide for the treatment by the Department of Energy of waste material) Energy is facing the potential collapse that is in the Armed Services right of its plan to accelerate risk reduction now. So it means you just do not move Strike section 3119 and insert the following: and cleanup of this Nation’s nuclear forward with cleanup. weapons production legacy. I think we The Senators from those three SEC. 3119. TREATMENT OF WASTE MATERIAL. States, I know, have been spending a (a) AVAILABILITY OF FUNDS FOR TREAT- must act responsibly to give the De- MENT.—Of the amount authorized to be ap- partment the clarification it needs to good deal of time trying to work out an agreement. It is called the WIR issue. propriated by section 3102(a)(1) for environ- complete cleanup of the sites in our mental management for defense site accel- lifetime. In committee, we fenced off $350 mil- eration completion, $350,000,000 shall be In 1997, the Rocky Flats cleanup was lion that was set aside to deal with available for the following purposes at the expected to take until 2045, at a cost of cleanup in those three sites and other sites referred to in subsection (b): $17.1 billion. Now, working together, parts of the country. We did that so it (1) The safe management of tanks or tank the State Government of Colorado and would not get used in other parts of the farms used to store waste from reprocessing bill because if you allow that money to activities. the Department of Energy have devel- (2) The on-site treatment and storage of oped a plan under which closure is ex- go out, that means there is less money for cleanup. And those of us who have wastes from reprocessing activities and re- pected in 2006, at a cost of $7.1 billion. lated waste. Key to our success was the collabora- been pushing cleanup for years in the (3) The consolidation of tank waste. tion between the State and the Depart- Senate would not want to lose that $350 (4) The emptying and cleaning of storage ment of Energy in devising the path million because it would be just hang- tanks. forward. ing out there. So we fenced it off. (5) Actions under section 3116. The initiative to accelerate cleanup We adopted an amendment in com- (b) SITES.—The sites referred to in this mittee that was proposed by Senator subsection are as follows: of the tank farms was proceeding on a (1) The Idaho National Engineering and GRAHAM to kind of get us out of com- similar path in other States. The DOE Environmental Laboratory, Idaho. had been working with each of the var- mittee and give the delegations from (2) The Savannah River Site, Aiken, South ious host States to develop strategies those States an opportunity to nego- Carolina. for acceleration and closure plans in tiate and see if they could work out (3) The Hanford Site, Richland, Wash- the States of Washington and Idaho, as some better provisions than what we ington. well as South Carolina. left with out of committee. We simply Mr. GRAHAM of Florida. Mr. Presi- We were so very successful in getting have to work out something. If we can- dent, I ask unanimous consent that cleanup at Rocky Flats in Colorado not get an agreement, maybe we will Senators ALLARD and CRAPO be added and saving billions upon billions of dol- have to step in to just work with those as cosponsors. lars for the taxpayers that I was hoping three States and see what other provi- The PRESIDING OFFICER. Without we could put together a plan that sions we can move forward so the objection, it is so ordered. would be working well in cleanup ef- cleanup, at least, can move forward. Mr. GRAHAM of South Carolina. Mr. forts in those three States which still I am very concerned that we do not President, I appreciate Senator have considerable challenges ahead of stop cleanup. Cleanup is very impor- ALLARD’s comments. I will try to ex- them. tant. It is something we need to move plain this amendment the best I can Last year, the Idaho District Court forward. The plan DOE had in mind and as briefly as I can. threw a monkey wrench in those plans. was a plan that would have met per- Several States played a very key role The court interpreted the Nuclear formance standards that have been in winning the cold war by making Waste Policy Act to prevent the plans specified by the Nuclear Regulatory sure we had a strong and effective nu- that DOE and the States have agreed Commission. They are the ones who clear deterrent. South Carolina is one on from going forward, by striking have oversight for disposal of low-level of them, as are Idaho and Washington. down a cornerstone of these plans, waste. And the debate over whether the They are States that have cold-war leg- which was DOE’s approach to grout used to stabilize residue should acy materials. classifying the waste in the tanks. be included in concentration areas is As Senator ALLARD suggested, the It is not just the accelerated cleanup basically a red herring because the bot- Federal Government has been working plans that were called into question, it tom line is, what we are doing here with these sites for decades now. We is also the base plans that the Depart- meets the requirements of the Nuclear spent billions of dollars—billions and ment of Energy had in place for years. Regulatory Commission. billions and billions of dollars—to Now in South Carolina and Wash- So I am hopeful that on the floor of clean up the cold-war legacy that ex- ington, since the 1980s, it has been the Senate we can get this problem fur- ists at the Savannah River site and clear that the cleanup plans have ther resolved than what we did in com- other sites. To be honest with you, we called for less radioactive tank waste mittee. have spent a lot of money and have

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5904 CONGRESSIONAL RECORD — SENATE May 20, 2004 done very little cleanup. From a tax- The issue is what is environmentally Energy and South Carolina for a very payer point of view, from an environ- sound cleanup for the State of South long time. Similar processes are going mental point of view, the longer you Carolina and any other State that has on now in Idaho and Washington. put this off, the more it costs, and the this legacy material. No. 1, no State I am asking this body to join with me more damage that can be done. should be forced to accept standards to make sure that the Department of I have an amendment that would that they find unacceptable for the Energy spends the money to treat the allow $350 million that has been put on State in terms of their environmental waste in these three sites, and that we the table by the Department of Energy needs. The amendment I have authored not bind any site by the agreement in to accelerate cleanup—$350 million has and that is part of the base Defense au- South Carolina but we allow the agree- been put on the table in, I think, a very thorization bill ratifies the agreement ment between South Carolina and the creative fashion to accelerate cleanup that South Carolina has achieved with Department of Energy to be ratified. at these sites, putting new money on the Department of Energy. Under that Not only is it good for my State, it is the table. agreement, my State regulators tell good for this Nation if we can clean up Here is a little history about what me that the permitting process of how these tanks in an environmentally has gone on in terms of how DOE and you close up a tank and when you close sound manner 23 years ahead of sched- the sites have been dealing with each up a tank and when a tank can be ule and save $16 billion. That is my other. There are 50-plus tanks of high- closed up is a collaborative process be- hope. level waste in South Carolina as a di- tween the State and the Department of As to what is left behind, the Nuclear rect result of winning the cold war, Energy. They feel they are protected. Regulatory Commission has looked at cold war legacy materials. The State of They have reached an agreement that the 1.5 inches of material left in the Washington has certainly done its the last 1.5 inches of waste that is in bottom of the tank and has classified it share in helping win the cold war. They the bottom of these rather large tanks as waste incidental to reprocessing, have a waste tank problem. Idaho has can be environmentally remediated in which is a separate category from high- waste. These three States have a prob- a manner safe for South Carolina that level waste. The people in South Caro- lem. It is now time to create an envi- would prevent people from unneces- lina who regulate our environment and ronment to fix the problem for each sarily risking their lives to go get that have an obligation to protect the State. last inch and a half and save $16 bil- State’s groundwater and other environ- Two years ago the State of Idaho en- lion. mental obligations have said that this tered into a cleanup agreement with What does it mean? It means that waste that is left can be dealt with in the Department of Energy, setting some things that were going to go to a sound manner, and to get the 1.5 standards that the State of Idaho Yucca Mountain don’t have to go be- inches totally out would risk people’s would agree to help remediate the en- cause to send them to Yucca Mountain lives and would take unnecessary time vironment and clean up the sites in is not environmentally necessary and and expense, and that we are going to Idaho so that we could move forward to it is not financially sensible. I hope secure these tanks in a way over which have a new day in Idaho. other States can find a way to get South Carolina would have control. Washington has been negotiating there. I know Washington is talking. I I didn’t come to Washington to tell with the Department of Energy to know Idaho had an agreement 2 years my State it is not a player in control- come up with acceptable standards for ling its waste. I hope Washington will cleanup of the waste in tanks and other ago. All I am asking is that South allow us who have these sites to work areas, and there are ongoing negotia- Carolina be allowed to execute this in a sound manner for the benefit of tions. agreement that is good for South Caro- South Carolina, for over a year, has lina and the Nation and will move for- the taxpayers in the State and the Na- been negotiating with the Department ward and clean up in a sound manner. tion and for the environmental needs of of Energy about how to clean up 51 The amendment I am offering today our State. tanks that contain high-level nuclear doesn’t deal with that issue. It deals That is what this is about. If we stay waste. People in South Carolina want with the idea that the $350 million to the old course and we never allow any- the waste cleaned up. They want it clean up sites in Washington and body to do anything other than the done in an environmentally sound Idaho, that the money due to Wash- most extreme groups out there in manner, and people in South Carolina ington and Idaho shall be spent on terms of what this is all about—and want it done sooner rather than later. cleanup, that the Department of En- there is politics in every issue, and They are conscious of the cost to the ergy cannot require either one of those there should be. There are some people taxpayer. States to enter into an agreement to who have an agenda that is not about All three States at some stage have get this cleanup money like we have in the groundwater in South Carolina be- negotiated with the Department of En- South Carolina. cause they don’t live there. Some of ergy about waste in their particular My goal has been to do two things: them are very well motivated, but States and how they can find agree- that my State could reach a sound some of them have an agenda to make ment between the Department of En- agreement with the Department of En- cleaning up these sites very difficult, ergy and the State to remediate the ergy to get it ratified for the best in- to the point that they don’t care what site. terests of South Carolina—and the Na- it costs, and they are not trying to get I am here to say, thankfully, that the tion—and not do anything in South a fair standard. They want to make it Department of Energy and the State Carolina that is going to harm any take as long as it takes and spend as regulators in South Carolina have other State’s ability to negotiate on much money as is necessary and send come up with a plan that will allow their terms and to reach an agreement everything to Yucca Mountain and these 51 tanks, 2 of which have already that is sound for their State, and not other repositories because they have an been cleaned up, to be cleaned up and to change any standards of what would agenda that we don’t want to produce to close them, that is environmentally leave South Carolina going to Yucca any more nuclear power and run out of sound, in my opinion. Mountain or any other repository. So places to store fuel rods. But it is just not my opinion. The this language requires the Department I don’t want to be part of that agen- people responsible for the groundwater of Energy to spend money to treat the da. I want to be a part of an agenda and the environmental safety of South waste in South Carolina, Idaho, and that allows each State that has these Carolina, in conjunction with the Gov- Washington. It also allows the agree- waste materials to be able to control ernor’s office and the Department of ment to be financed in South Carolina. their destiny, do it in a way that is safe Energy, have come up with an agree- I know there is some disagreement for the State and makes sense for the ment to allow these tanks to be closed. on this issue. I welcome the debate. Nation. That is exactly what we have The tanks will be cleaned up in a man- That is what the Senate is all about, accomplished. ner that will save $16 billion compared having two sides of every story. But Idaho and Washington have tried to to the old plan, and it will allow the this is not something we just came into do the same thing we are doing. They tanks to be closed up 23 years ahead of lightly; this is something that has been have tried to work with the Depart- schedule. going on between the Department of ment of Energy to get an agreement.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5905 We have been successful. I will never, want to wait 23 years and allow these no, or they make up a reason of telling as a Senator, leverage one of my sister things to leak as we try to clean up the us no, which would prevent this from States here to have to agree to some- last inch and a half; I think that does ever happening. thing to which they don’t want to more damage than good. Now, we are going to disagree over agree. That is not my goal. This is where we do agree. DOE, by some aspects of this. But here is where I hope the Senate and the Congress order 43.5, I think it is, tried to issue we do not disagree. The States are will allow an agreement that has been an internal order allowing them to uni- going to get the money, whether or not negotiated to its full term to be ap- laterally go into these States and say: they reach an agreement with DOE. We proved and to help South Carolina save Here are the cleanup standards, take it are not going to let them do it unilat- some money. I am ready to agree on a or leave it. erally. We want to make sure every small time agreement, a large one, or Then you had a court case in Idaho State has a right to negotiate an agree- whatever time agreement we can have where South Carolina joined as a friend ment on their own terms. on this amendment, and have a vote. of the court, with an amicus brief, say- There is nothing in this amendment Mr. ALLARD. If the Senator from ing, no, we don’t want the DOE unilat- that is going to prejudice another South Carolina will yield, I wish to erally telling a State to take it or State in terms of their ability to reach enter into a colloquy with him to make leave it. That is why we joined as a an agreement with DOE on their terms, sure we have laid out this debate. friend of the court. We think that is a if they can. I think this is a very im- First, we had a plan by the DOE to bad policy. portant concept. expedite cleanups of sites in South What we want to do, and what all This is a pivotal time in our effort to Carolina, Washington, and Idaho. Then three States have tried to do, is make clean up these sites. I say to my friend we had a court case that was litigated sure cleanup occurs in an environ- from Nevada and all those folks at in the district court in Idaho. As a re- mentally sound manner, where the Yucca Mountain, if I were in Nevada, I sult of that, that case is going to defi- States are involved. What we have been would have the same concerns. I to- nitely be appealed to the Federal court able to do in South Carolina is reach tally understand that. But the rest of of appeals and may even go as far as that agreement to have the waste us have an obligation, too. I don’t the U.S. Supreme Court. In the mean- stream cleaned up. What is left in the think it is fair just to make Nevada be time, we have some cleanup needs in bottom of the tank we believe we can the only one on the receiving end of these various States. handle in an environmentally sound what is fair and appropriate. If we can, As I understand what the Senator’s manner. Some people don’t want us to in our individual States, in an environ- amendment would provide, we are do that. That is not their agenda to ac- mentally sound manner, deal with going to keep our $350 million for cy- complish that. It is my agenda that we some of this waste—an inch and a cling, which is vital, and it is going to accomplish that when and how we can. half—not to send it to Yucca Moun- say that the money is going to be We are not going to let the DOE uni- tain, not spend $16 billion and take 23 available for treatment. But we are not laterally decide. That is what this years, I think we have some obligation going to have any removal or anything amendment is about. It doesn’t allow to be part of the solution. from a contaminated site, except for the Department of Energy to take Let it be said that South Carolina, South Carolina. South Carolina has a money away from a site. They have to from the regulator’s side—their view is plan that has been worked out with the let the $350 million go. The language in we have reached that agreement. I State. The State is very comfortable the bill, which Senator ALLARD helped hope we can pass this amendment. with it. It is a State-driven plan. We me write and get passed, ensures that Mr. ALLARD. Mr. President, I have a are trying to work out something South Carolina is protected. Now we letter from the Defense Nuclear Facili- where we don’t create a problem among need language to ratify that agree- ties Safety Board to the Secretary of the various States. We don’t want this ment. Energy. It addresses the disposal of process to tie up South Carolina and, Mr. ALLARD. Mr. President, I thank waste as contemplated in section 3116. obviously, we want to see cleanup the Senator for his hard work and dili- The last paragraph reads: move ahead in Idaho and Washington. gence. Certainly, I am glad he is a The Board believes that disposal of wastes My concern, as chairman of the sub- member of the Armed Services Com- as contemplated in Section 3116 can be ac- committee, is that I don’t want to see mittee. It has been a pleasure to work complished safely and should enable efficient taxpayer dollars wasted on a huge with him on many issues. disposition of the radioactive waste. The white elephant out there that will add I know there is a good deal of frustra- Board, under its statutory safety oversight mandate, will continue to follow DOE’s ac- something like $86 billion to the clean- tion on this particular issue. I recog- tions to ensure that activities related to dis- up budget, which we don’t have. nize, in a public way, his dedication posal of such waste are conducted safely. I hope we can work this out, and you and hard work on this issue in trying I ask unanimous consent that the are trying to work it out among your- to clean up this area. It is very impor- letter be printed in the RECORD. selves. I hope I characterized it prop- tant to his State and, hopefully, we can There being no objection, the mate- erly. reach some kind of agreement in the rial was ordered to be printed in the Mr. GRAHAM of South Carolina. The ensuing few hours on this debate. RECORD, as follows: Senator has done a good job character- Mr. GRAHAM of South Carolina. I Hon. SPENCER ABRAHAM, say to Senator ALLARD, he has been a izing it. Secretary of Energy, No. 1, this amendment makes the very responsible subcommittee chair- Washington, DC. money flow for treatment. There is the man here. This is a big deal for the DEAR SECRETARY ABRAHAM: This is in re- $350 million in committee with regard country, to South Carolina, Idaho, and sponse to the letter of May 13, 2004, from the to the argument that there is a fence Washington, and any other State. It is Assistant Secretary for Environmental Man- built around it. If there is any concern a huge deal. We need to make sure agement regarding the nuclear safety con- about it, this amendment knocks that these sites are remediated and the en- sequences of proposed Section 3116 of the Na- fence down. The money has to be spent vironment of each State is protected tional Defense Authorization Act for Fiscal Year 2005 (S. 2400). Section 3116 would permit on treatment of waste. There is a lot of and that we get on with it and not give certain radioactive residual materials to re- waste to be treated. But it also allows DOE unilateral authority to tell us main in a facility (including a tank) at the for a disposal plan agreed to between what to do, and do it in a collaborative Savannah River Site. South Carolina and DOE. way. Safe disposal of radioactive waste is essen- Other States, the Senator is right, We have achieved that in South Caro- tial to preserving public health and safety. have been negotiating and trying to lina. I think it would be inappropriate In 1994, the Board issued Recommendation find a disposal plan. We have just been if Washington or Idaho could reach an 94–2, Conformance with Safety Standards at successful, that is all. Other States agreement between DOE, and Idaho Department of Energy Low-Level Nuclear Waste and Disposal Sites, which identified have different needs and tank prob- and Washington ran it by the NRC and the importance of performance assessments lems. We don’t have tanks leaking as they say, yes, we like this agreement, for ensuring safe disposal of radioactive ma- they do in Washington. Washington has we think it protects us, we would like terials in shallow land burial grounds. De- different needs and concerns. I don’t to do it, and then somebody else says partment of Energy (DOE) subsequently

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5906 CONGRESSIONAL RECORD — SENATE May 20, 2004 issued Order 435.1, Radioactive Waste Man- referring to that particular section, some $13 billion in it. We are not wor- agement, which defines an acceptable proc- what we have is not a preemption, but ried about money. The Department of ess for conducting the required performance really the preemption is invalid. That Energy went around—and that is the assessments for DOE onsite waste disposal language is, ‘‘any such action may be case to which I am referring. They ran activities. During the period 1996 to 1997, the DOE at completed pursuant to the terms of the around and surreptitiously said we are the Savannah River Site undertook the clo- closure plan of the State-issued permit going to reclassify and call it low-level sure of two high level waste tanks. At that notwithstanding the final criteria waste, and that means we can save a time, The Defense Nuclear Facilities Safety adopted by the rulemaking pursuant to lot of money and bother and use the Board (Board) closely observed the under- subsection A.’’ money maybe on tax cuts. Don’t worry takings and saw no basis to determine that We had this in the Kentucky case about that fund because the power the remaining residual material constituted with respect to the supremacy clause. companies have sued on the particular a danger to the public. The closure process We know this has already been taken fund. Otherwise, that fund has been involved transport modeling of the residual built up, and there is plenty of money. material left in the tanks. to the 6th Circuit Court. That does not When conducted with appropriate rigor, a protect the State of South Carolina at It is just not cleaning it up. They performance assessment can provide a con- all. I know my distinguished colleague were trying to empty out the waste and servative estimate of potential safety and wants to protect the State of South throw some sand and concrete on top of health consequences. When these estimates Carolina, but I think he even knows it. We found out in expert hearings meet acceptable safety standards (i.e., DOE now that language does not protect the back in 1982, when we classified it as Order 435.1 or 10 CFR Part 61 subpart C, Per- State. high-level waste—the finest of experts formance Objectives), it is reasonable to con- came in, and that is where the classi- clude that the disposal action adequately I asked: Where in the world did this all come from anyway? fication came, and that, my dear protects public health and safety. friends, is what should occur here. The Board believes that disposal of wastes He said: Oh, Senator, we have been as contemplated in Section 3116 can be ac- working on it. If there is some reason to reclassify, complished safely and should enable efficient We have a brief filed on March 25, a then let’s come before the Environ- disposition of the radioactive waste. The certificate of a brief in the case of the ment Committee and the Energy Com- Board, under its statutory safety oversight National Resources Defense Council v. mittee and let’s have a hearing as has mandate, will continue to follow DOE’s ac- Spencer Abraham. We won the case, been provided for by my colleague, the tions to ensure that activities related to dis- and it is up on appeal. On this appeal, distinguished Congressman from the posal of such wastes are conducted safely. 5th District, Congressman JOHN Sincerely, we have signed that brief, Samuel L. Finckley III, South Carolina Depart- SPRATT, whereby on the House side JOHN T. CONWAY, they said, let’s refer to the National Chairman. ment of Health and Environmental Academy of Sciences, and we will go Mr. ALLARD. Mr. President, I yield Control—that was just a few weeks ago—stating the Department’s posi- about it in a deliberate way, and if the the floor. Energy Department wants it reclassi- The PRESIDING OFFICER. The Sen- tion. I have nothing from the Governor. I fied and has some authoritative source ator from South Carolina, Mr. HOL- that will support their particular posi- LINGS, is recognized. know Governor Sanford extremely well. We traveled back and forth for 6 tion, maybe the Congress itself will re- Mr. HOLLINGS. Mr. President, I classify. But this has been classified by have not had the opportunity to work years when he was in Congress. I know the one thing he is known for and that us, upheld in the courts, now on appeal, with my distinguished colleague. We and here they come around in a fancy have worked very closely together on is protecting the environment. Gov- ernor Sanford does not approve of this. little surreptitious way on a Defense many matters, and I have the highest authorization bill and get the Graham I understand informally he told my dis- respect for him. It has really been a language in the bill that would not tinguished colleague: If you can work pleasure for this Senator to work with hold up in the State legislature where out an agreement that protects the him as he has come over to the Senate. general provision would say it is un- State of South Carolina, then we will Only yesterday on our way to a vote, constitutional. I asked him about this issue because I go along with it. That is not what is When I heard about this going on, I heard about it from our colleague from occurring with this amendment. looked to see if maybe this was uncon- I have been in this game for 50 years. the State of Washington, Senator stitutional, but it is not. CANTWELL. He said he had a letter from In 1955, I was the chairman of the Re- That can be done, and it has been the Environmental Control Division of gional Advisory Council on Nuclear En- done already. So there has been prece- the State of South Carolina. ergy. We called it RACNE then. It was dent set for this. I can say categori- I thereupon got in touch with the di- a 17-State compact. We had all the dan- cally, the State in the last 48 hours is rector of the DHEC of South Carolina, gers of nuclear emissions. We looked in an uproar over this particular meas- the Department of Health and Environ- for places for permanent storage. At ure. They did not know of any kind of mental Control. Mr. Hunter said: Oh, that time, in the early fifties, they special provision that was going to be no, we adamantly oppose any kind of said—at that time, I was Lieutenant put on for one State in a Defense au- reclassification of high-level to low- Governor—they said: Governor, don’t thorization bill. They resent it, they level. worry about it. This Savannah River resist it, and they have asked me by I said: That is exactly what is being site we are developing is twofold very advertisement and telephone calls to done. dangerous for any kind of permanent please ‘‘adamantly oppose,’’ is the ex- He said: That is not what we under- storage. One reason is this site is over pression they have used. stand. We know that Senator GRAHAM the Tuscaloosa aquifer water supply This is all in the offing. We can see has been working with the Department that comes down below Aiken County. what my colleague has done. He has of Energy, and we were led to believe More than anything else, there is an put language on here so that when the we would have a signoff on it and his earthquake fault from Calhoun, deal is made with the Energy Depart- amendment would give us any kind of Orangeburg, into Aiken County. He ment where apparently the State still collaborative agreement, as character- said: We are not going to have any- would have a signoff—under the su- ized by the distinguished Senator, that thing stored here for over 2 years. premacy clause, the Federal Govern- was worked out, and we could sign off Two years became 4, 4 became 8, 8 be- ment has got it—and it means abso- on it. came 16, 16 became 32, and now it is lutely nothing, but it allows them to On page 2 of the amendment, he re- some 50 years. It has been some 50 get the deal and lock the State in, and fers to subsection A and subsection B— years and that problem has yet to be then we will start all the legal pro- rather subsection A shall not apply to solved. ceedings all over again. any other material otherwise covered We worked on the financial end of So I implore my colleagues on both by that subsection that is transported the problem, and we exacted 1/10th of sides of the aisle, this is no way to leg- from the State. Then down in section one cent on a kilowatt of power sold by islate high-level waste in the United D, in this section, the term ‘‘State’’ the various energy companies engaged States. I have worked with the Depart- means the State of South Carolina. So in nuclear power, and that fund has ment of Energy. We have the facility

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5907 down when Secretary Richardson—now ineffective by the highest court of the The PRESIDING OFFICER. Without the Governor of New Mexico—was in, land. objection, it is so ordered. and I have brought every particular I yield the floor. f benefit that I could possibly bring to The PRESIDING OFFICER (Mr. GRA- this particular facility, but apparently HAM of South Carolina). The Senator NATIONAL DEFENSE AUTHORIZA- the contractors want to move ahead from Virginia. TION ACT FOR FISCAL YEAR 2005—Continued and certainly the Department of En- f ergy wants to move ahead and not have AMENDMENT NO. 3226 TO AMENDMENT NO. 3170 ORDER FOR RECESS to pay out the full sums. If they can Mr. CRAPO. Mr. President, I call up get a precedent set for the reclassifica- Mr. WARNER. I ask unanimous con- amendment No. 3226. tion in a surreptitious fashion of this sent that the Senate stand in recess at The PRESIDING OFFICER. The kind called low-level waste, then it will the hour of 12:45 to accommodate the clerk will report. set a precedent for the other States Secretary of Defense, who will be brief- The assistant legislative clerk read and we have an environmental disaster ing us, and resume at 2:15. as follows: The PRESIDING OFFICER. The Sen- in the offing because we will not be The Senator from Idaho [Mr. CRAPO] pro- here. ator from Nevada. poses an amendment numbered 3226 to That is about the attitude around Mr. REID. I think the two managers amendment No. 3170. here, that if it can be handled in a are very wise, offering the opportunity Mr. CRAPO. I ask unanimous consent day’s time, then let us forget about the for everyone to go to hear the Sec- that reading of the amendment be dis- future. This is a highly dangerous pro- retary of Defense and the three gen- pensed with. cedure. It is wrong for the State of erals who testified yesterday. It is The PRESIDING OFFICER. Without South Carolina. It is wrong for the Na- commendable. It speaks well of the objection, it is so ordered. tion. It is wrong for the Department of management of the Senate floor be- The amendment is as follows: Energy. cause there would be nothing happening here anyway. Everyone needs to Strike all after the first word of the mat- I had misgivings when the Secretary ter proposed to be inserted and insert the fol- of Energy came up for nomination. I go there. So I commend the two man- lowing: remembered very clearly my debate agers of this bill. 3119. TREATMENT OF WASTE MATERIAL. with Spencer Abraham. He wanted to Has the Senator offered a unanimous (a) AVAILABILITY OF FUNDS FOR TREAT- abolish the Department of Energy and consent that we would be out from 12:45 MENT.—Of the amount authorized to be ap- abolish the Department of Commerce. I to 2:15? propriated by section 3102(a)(1) for environ- can see him over on that side of the Mr. WARNER. That is correct. It is mental management for defense site accel- floor right now. We had a debate about essential that Senator LEVIN and I be eration completion, $350,000,000 shall be that. I was sort of shocked that he present with the Secretary. available for the following purposes at the would want to be Secretary of a De- The PRESIDING OFFICER. Without sites referred to in subsection (b): objection, it is so ordered. (1) The safe management of tanks or tank partment that he wanted to abolish, farms used to store waste from reprocessing but he is a good fellow. I got along with Mr. WARNER. Mr. President, I sug- activities. him, and I said, all right, I will cast a gest the absence of a quorum. (2) The on-site treatment and storage of vote and keep my fingers crossed. But The PRESIDING OFFICER. The wastes from reprocessing activities and re- this is monkeyshines. We cannot go clerk will call the roll. lated waste. along with this one. The assistant legislative clerk pro- (3) The consolidation of tank waste. If they want a reclassification—this ceeded to call the roll. (4) The emptying and cleaning of storage is not a money problem, this is a re- Mr. WARNER. I ask unanimous con- tanks. classification problem—then let us resent that the order for the quorum call (5) Actions under section 3116. (b) SITES.—The sites referred to in this classify it in the orderly fashion in be rescinded. subsection are as follows: which we made the classification back The PRESIDING OFFICER (Mr. (1) The Idaho National Engineering and some 22 years ago in the Congress. CRAIG). Without objection, it is so or- Environmental Laboratory, Idaho. The House of Representatives says dered. (2) The Savannah River Site, Aiken, South let us handle it that way, so let us han- f Carolina. dle it that way over in the Senate. If (3) The Hanford Site, Richland, Wash- we want to give permission to have RECESS ington. hearings and then change that law, Mr. WARNER. Mr. President, the dis- (c) This section shall become effective 1 that is fine business, let us do it in that tinguished Senator from Michigan and day after enactment. fashion, but do not put a rider that I, together with the distinguished Sen- Mr. CRAPO. Mr. President, I yield says this is for the interest of the State ator from Nevada, are doing our very the floor. of South Carolina because it is not. It best to try to arrange the debate on the The PRESIDING OFFICER. The is not in the interest of the United pending amendment to accommodate Democratic leader. States of America. both sides. It is not likely we are going Mr. DASCHLE. Mr. President, I came I do not know how else we can solve to achieve that in the next few min- to the floor with the understanding this. I know the other States are in- utes, so I ask unanimous consent the that we are in a moment where we volved. The Senator from Michigan on pending unanimous consent request for haven’t been able to move forward leg- the Defense appropriations has been 12:45 be revised to reflect that the re- islatively as far as the schedule goes. I very alert on this particular measure. I cess start now and terminate at 2:15. wanted to take a few minutes of leader am just a Johnny-come-lately to it, There being no objection, the Senate, time to comment on a number of spe- but it affects my State, and it affects at 12:37 p.m., recessed until 2:15 p.m.; cific issues. an area that I have been vitally inter- whereupon, the Senate reassembled PAUL WELLSTONE MENTAL HEALTH EQUITABLE ested in for over 50 years now. I have when called to order by the Presiding TREATMENT ACT worked with every particular facet Officer [Mr. ALEXANDER]. Mr. DASCHLE. Yesterday I spoke that one can think of. Never has this The PRESIDING OFFICER. The Sen- about the Paul Wellstone Mental Senator been contacted about this ator from Idaho. Health Equitable Treatment Act. This deal. I know the Governor, I know his Mr. CRAPO. I suggest the absence of is a critical piece of health care legisla- position on the environment, and I a quorum. tion. One in five Americans today suf- know he will not approve of this one. The PRESIDING OFFICER. The fers from a mental illness every year. I can tell my colleagues right now clerk will call the roll. Many are now denied health care they that reclassifying high level as low The assistant legislative clerk pro- need because of legal discrimination by level, saying that we protect the State ceeded to call the roll. their health insurers. Such discrimina- of South Carolina when we know the Mr. CRAPO. Mr. President, I ask tion often takes a terrible toll on peo- legalistic wording is just that, legal- unanimous consent that the order for ple with mental illness, their families, istic wording, has already been found the quorum call be rescinded. and all of us.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5908 CONGRESSIONAL RECORD — SENATE May 20, 2004 It is estimated that not treating ones, hundreds of American families He was injured during the landing, mental illness costs our society $300 are today mourning the deaths of their and, as he was recovering, one of his billion a year. The Wellstone bill will children, spouses, and parents. duties was sending word back to the end that discrimination for all Ameri- For them, the cost of war and the States of those who had died so their cans. It is modest, affordable, and ur- price of freedom is not a thing of mem- loved ones could be notified. gently needed. ory. It is the inescapable fact of their That experience left my father with a I mentioned yesterday people from lives. And their pain and shock rever- profound sense of respect for the sac- across America were coming to Wash- berate throughout American commu- rifices that freedom sometimes de- ington on June 10 for a rally in support nities. mands, and he passed that lesson on to of mental health parity and the All Americans stand together in awe his four sons. Wellstone bill. The famous Wellstone of the courage of our soldiers, and in When I was a boy, every Memorial green bus that Paul loved to campaign gratitude for their sacrifice. Day, my parents would take my broth- on is coming back here for that rally. But the urgency of this Memorial ers and me to the cemetery to pay our It is my hope the majority leader will Day also serves to amplify and clarify respects to the heroes who lie buried agree to allow the Senate to vote on our understanding of America’s his- there. the Wellstone bill prior to the June 10 tory. Later in life, when I was in the serv- rally. I think it would be a fitting trib- Within the sacrifices of today’s sol- ice, I learned the lesson in a deeper ute to Paul, and it would make a pro- diers, we see a clear reflection of the way, as friends of mine lost their lives found difference for millions of Ameri- sacrifice of those who came before. in Vietnam. Like our soldiers today, our veterans, cans who live with mental illness. The men whose names my father sent too, left families behind. They, too, (The remarks of Mr. DASCHLE per- home from Normandy, the men whose woke up to uncertain dangers. They, taining to the introduction of S. 2451 names are carved into The Wall in too, saw their friends fall. Yet, know- are located in today’s RECORD under Washington, and all of the other noble ing both their risks and their respon- ‘‘Statements on Introduced Bills and heroes we honor gave their lives to pre- sibilities, they, too, performed their Joint Resolutions.’’) serve our freedom. duty each day. And many gave their We are in their debt—today and COMMEMORATION OF MEMORIAL DAY lives. every day. Now a new generation of Mr. DASCHLE. Mr. President, 2 Forty years ago, President Kennedy Americans is called to battle—in Iraq, weeks ago, in the Black Hill National noted that no nation ‘‘in the history of Afghanistan, and many other areas Cemetery, SD, SSG Cory Brooks was the world has buried its soldiers far- around the world. And once again, they laid to rest. ther from its native soil than we Amer- are answering the call, and making us A member of the South Dakota Na- icans—or closer to the towns in which tional Guard, Sergeant Brooks died in proud. they grew up.’’ In 1868, just three years after the end Iraq in late April, and his friends and At our proudest moments, the Amer- of the bloodiest conflict our Nation has family gathered to remember his ican people have sent our sons and ever known, General James Garfield laughter, his joyful spirit, and his love daughters across the globe to fight for led the first observance of the holiday of country. freedom. we now know as Memorial Day. Among the mourners was a man Cory Today, the honor of defending those Standing among the graves of Union Brooks had never met, Pat Red Fox. who cannot defend themselves is car- and Confederate soldiers alike, he said: Mr. Red Fox came as a representative ried forward by young American sol- of the Cheyenne River Sioux Tribe. If silence is ever golden, it must be here be- diers. But their service is doubled, for side the graves of fifteen thousand men Six months earlier, the tribe had suf- in addition to offering a chance for whose lives were more significant than fered the loss of PVT Sheldon Hawk freedom to the Iraqi people, they are speech and whose death was a poem the Eagle, who died when his Black Hawk renewing our understanding of the cost music of which can never be sung. helicopter collided with another above of war, the price of freedom, and the We do not know one promise these men Mosul. immeasurable depths of American made, one pledge they gave, one word they spoke; but we do know they summed up and The families of Sheldon Hawk Eagle valor. and Cory Brooks had little in common perfected, by one supreme act, the highest Seven hundred and ninety one Ameri- virtues of men and citizens. on the surface. cans have lost their lives in Iraq. An- For love of country they accepted death, But each passed along the values of other 122 have died in Afghanistan dur- and thus resolved all doubts, and made im- service and patriotism to their chil- ing the course of Operation Enduring mortal their patriotism and virtue. dren. Freedom. No words, no ceremony could add to With pride and sorrow, each said As was true in World War I, World the honor they won in their lives. good-bye as their loved ones were War II, and the Vietnam War, South So this year, with the heroism of our shipped overseas. And each prayed that Dakotans have volunteered for service soldiers so radiant, we must acknowl- Sheldon and Cory would complete their in disproportionate numbers. And as edge that Memorial Day is not commission unharmed. Today, they are before, South Dakota has borne a dis- memorated for the sake of those who bound to one another in mourning. proportionate share of loss. Seven of gave their lives, but for our own. And so to acknowledge this bond, South Dakota’s sons have lost their We remember their courage because this sacred bond that transcends all ap- lives in this conflict: within it lie the seeds of our own cour- parent differences, the family of Shel- CWO Hans GOO-Keye-sen, of Lead; age. don Hawk Eagle sent Pat Red Fox to PFC Michael DOOL, of Nemo; CWO We remember their sacrifice, because Cory Brooks’ funeral with one of the Scott Saboe, of Willow Lake; CPT it shows us both the cost, and the most valued gifts in the Sioux tradi- Chris SOUL-zer, of Sturgis; SP Dennis value, of freedom. tion—a star quilt bearing the colors of Morgan, of Winner; PFC Sheldon Hawk Memorial Day is not merely a time our Nation, and the Sioux symbol rep- Eagle, of Eagle Butte; SSG Cory to remember those who died in uni- resenting the immortality of the soul Brooks, of Philip. form, but a time for each of us to re- and the connection between the living For them and for the hundreds more dedicate ourselves to trying in our own and the dead. who have lost their lives in service to way, in our own lives, to meet the the During the upcoming recess, our Na- their country, America is united in sor- example of patriotism set by all the tion will commemorate Memorial Day row, and in debt for their sacrifice. men and women who defend our Na- with a special unity, immediacy, and But this sorrow, and this debt, is not tion. poignancy. unique to us. In many ways, it has been It is a time to rededicate ourselves to As we honor those who gave their the central experience of each and carrying forward the legacy that has lives for their country in generations every American generation. been passed down from one generation past, young American soldiers today My father was an Army sergeant in to the next. face mortal danger. World War II. He landed on the beaches As with the families of Sheldon Hawk As we offer thanks for the sacrifice of of Normandy with the 6th Armored Di- Eagle and Cory Brooks, it is a legacy families who suffered the loss of loved vision on ‘‘D Plus 1’’—June 7, 1944. that binds together every American.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5909 It transcends borders and generations to exist as a state. That is precisely aisle thinks they can come at 1 o’clock and all political divisions. why articles 4 and 5 of the current Con- in the afternoon and offer an amend- Above all else, it is this shared leg- vention are written in such broad lan- ment to change 30 years of policy, and acy, and the great gifts that it has con- guage with such inclusive presump- that in the blink of an eye, they are ferred upon our Nation, that we reaf- tions. going to get a vote on changing that firm on Memorial Day. I am equally disturbed by Mr. policy without discussion. I yield the floor. Gonzales’s argument that because the The underlying bill is flawed. As far The PRESIDING OFFICER. The as- Taliban were generally unrecognized as as I am concerned, it has made the sistant Democratic leader is recog- a legal government, they should not be whole DOD bill radioactive itself. Why nized. afforded the protection required for do they play politics on an issue that is Mr. REID. Mr. President, I suggest soldiers of a de facto government. What so important to our country? Why do the absence of a quorum. particularly bothers me about that is they try to sneak through a change The PRESIDING OFFICER. The the statement issued by the White that ought to be debated in public in clerk will call the roll. House late in 2001 that the United full daylight, with people weighing in The assistant legislative clerk pro- States recognized that the Taliban was on what is appropriate science? ceeded to call the roll. a de facto government of Afghanistan. Mr. President, if I sound as if I am a Mr. REID. Mr. President, I ask unan- You cannot have it both ways. Did Mr. little upset about this underlying bill imous consent that the order for the Gonzales forget that statement? Did he and the fact that it has this sneak at- quorum call be dispensed with. ignore it or did he just not care that it tack language to reclassify high-level The PRESIDING OFFICER. Without squarely contradicted his memo of Jan- nuclear waste, you are right. objection, it is so ordered. uary 25, 2002, made just days later? Fifty-three million gallons of nuclear RULE OF LAW When he sent that memo to the waste reside at the Hanford nuclear Mr. REID. Mr. President, the core President, over the objections of the reservation in the State of Washington. concept which has guided this Nation Secretary of State, Mr. Gonzales and This Senator wants to see that waste for 200 years has been the rule of law. everyone else involved in its drafting cleaned up. I do not believe that can That is why we have a Constitution. and preparation sowed a bitter harvest. happen by pouring cement on top of it That is why we have a judiciary. That They sowed the seeds of solitary con- and putting sand in those tanks and all is why we have a national legislature, finement, of sensory deprivation, of of a sudden now say we have cleaned up to make and revise the laws which rule physical mistreatment, of violations of waste. Nowhere has that policy been our conduct, one and all, no exceptions. religious right, of legal rights, of rights promulgated as sound science. This is a picture of the Hanford Nu- Therefore, no one, not the mightiest in against intimidations and threats and clear Reservation and one of its reac- his mansion, not the lowest begger on torture—all grave breaches of the tors in proximity to the Columbia the street, is above, beneath, or outside Third Geneva Convention. They sowed River. My constituents in Washington the law. the wind, and now we are reaping their State already know the 53 million-gal- If a law is outmoded, has lost its util- whirlwind caused by that memorandum lon tanks of nuclear waste are leaking, ity, if it is obsolete, it is not the place from the legal representative of the and there are toxic plumes that have of any citizen, no matter how high or President of the United States. already gained access to the Columbia how low, to decide it must no longer be AMENDMENT NO. 3170 River. So, yes, Washington State wants obeyed. That decision rests only with The PRESIDING OFFICER. The Sen- the tanks to be cleaned up. They want the Congress or with an interpretation ator from Washington. the material that has been part of the by the Federal courts. That is the only Ms. CANTWELL. Mr. President, I nuclear mission of this country replace that decision can rest. rise to speak on the Graham amend- moved from the tanks, the tanks Yet I have in front of me a memo- ment. cleaned up, the ground cleaned up, the randum written in January of 2002 by It is almost unbelievable that we are plumes removed to the best possible Alberto Gonzales, the White House on the DOD authorization bill, a very extent, in order for us to go on with counsel to President Bush, telling the important bill that we need to discuss our mission and our life at the Hanford President of the United States that the and move forward, as it supports a lot Reservation. Third Geneva Convention of 1949 is ob- of important things for our troops, and What we do not want is somebody to solete, that the War Crimes Act, which our military strategy. But somehow come in and say all of a sudden these we passed in 1995 making it a felony to the other side of the aisle and the De- underground storage tanks that exist commit a grave breach of that Conven- partment of Energy think they can below ground should be taken and ce- tion, is inapplicable, and that as a re- sneak in language to this Defense au- ment poured on top of them and that sult, prisoners captured on the battle- thorization bill that would allow the means they are cleaned up. field can be questioned using means reclassification of hazardous, high- It is amazing to me because when I that would violate the Third Geneva level nuclear waste and basically call think about the Hanford project and Convention. it incidental waste. Basically it would what I think it meant to our country, I am not talking about members of reclassify nuclear waste that is in ex- these were men and women in 1943 who al-Qaida. The Gonzales memo specifi- isting tanks in my State, in South started on a mission to produce a prod- cally discusses members of the Carolina, in Idaho, and in New York, uct that would help us win the war. In Taliban. It makes an extremely ques- and basically say that waste can be less than 2 years, they had the world’s tionable argument that the Taliban are covered over with cement, with sand, first reactor going and they produced not prisoners of war because they were and could be grouted. Basically, it says plutonium that provided a very valu- not the government of a state. we can take high-level nuclear waste able tool for our country. Those men That argument is most disturbing. In and grout it—grout it. and women did their job. the first place, it represents precisely For most Americans, grout is some- Now we have been left with the after- the kind of arguments which the draft- thing they see in their bathroom, not math of that and we should handle it in ers of the Third Geneva Convention something they do with nuclear waste. the same professional way those men tried to defeat, drafters who included Yet this is what we have before us in and women did, by cleaning up the representatives of the United States. the underlying Department of Defense waste and recognizing that these tanks Those drafters repeatedly expressed authorization bill. It is a shame. It is a are leaking and they are causing haz- their concern that the German Govern- shame that this body would allow such ard to the environment. The appro- ment, the Nazi government during a significant change, really a change to priate way to clean them up is by mak- World War II, used trumped-up legal- the Nuclear Waste Policy Act on how ing sure the material is removed and isms to avoid applying the 1929 POW nuclear waste is classified in this coun- that that material is placed in a more Convention to captured prisoners. One try, without public debate, without a permanent storage. That is exactly of those arguments was that Polish public vote, without a public hearing, what science has been saying. Yet my prisoners were unprotected because, ac- even without legislation discussing colleagues believe that in this under- cording to the Nazis, Poland had ceased that change. Yet the other side of the lying bill, the Defense authorization, it

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5910 CONGRESSIONAL RECORD — SENATE May 20, 2004 was somehow appropriate, in a closed- what hazardous waste is and the ment of Energy believes leaving some door session, with no public, no public changes to the Nuclear Waste Policy waste behind is a good idea but is try- testimony, no public witness to this Act that might be appropriate. ing to slip this in as a seismic policy language, no bill saying they were I guarantee, if somebody wants to shift in the Defense authorization bill going to put this in the DOD bill, they change the Nuclear Waste Policy Act, without comment or without congres- can now sneak through this policy. that bill would not go to the Senate sional debate.’’ Well, thank God some people in Armed Services Committee. It would I think these newspapers have it America are paying attention because be a policy that was debated by the En- right. In fact, another newspaper in my they are starting to respond. I will ergy and Natural Resources Committee State, the Tacoma News Tribune, said: share some of that with my colleagues. and by the EPW Committee. It is not ‘‘It was bad enough that the U.S. De- For example, the Idaho Falls Post Reg- the Armed Services Committee’s juris- partment of Energy was trying to ister basically said those on the other diction to change the Nuclear Waste carry out illegal, quick, and dirty dis- side are choosing the wrong side. Policy Act. This underlying bill basi- posal of the Nation’s most dangerous What happened in this case is the De- cally will put in place language con- radioactive waste. Now a Senate com- partment of Energy—maybe I should tradictory to the Nuclear Waste Policy mittee is helping the Department cir- stop for a second and give some of my Act. cumvent the law.’’ colleagues a little reminder of how we What are newspapers around America I think these newspapers are on to it. got to this point, because everybody saying about this? Basically, the Idaho The Buffalo News, in their editorial, thinks reclassification of waste is Falls Post Register says, ‘‘if the courts called it ‘‘A Dangerous Game.’’ something that belongs to the States. are uncooperative, try blackmail. That The Federal Department of Energy is try- It does not belong to the States. It be- is what DOE is doing by holding $350 ing to use administrative sleight of hand to longs in the Nuclear Waste Policy Act million in cleanup funds, including $95 avoid its responsibilities in the cleanup of that was passed in 1982. That was million for Idaho’s national engineer- nuclear waste at West Valley and several passed by Congress, after much debate. ing and environmental laboratory. other sites. DOD is trying to downgrade the threat of nuclear waste altered in this bill. It went through the Energy and Nat- They go on to say, ‘‘if blackmail The department argues that the waste ural Resources Committee and the fails, start cutting deals in secret with should be classified as high level based only EPW Committee. They had a discus- Congress. DOE found an ally and be- on how it originated, not on what they are. sion about what nuclear waste cleanup hind closed doors in the Senate Armed But what they are still is bad. It’s still radio- should be. They have the authority. Services Committee won a provision in active and it’s still a Federal responsibility. So when the Department of Energy the Defense authorization bill that That is from the Buffalo News. recently said ‘‘let us accelerate the would allow DOE to reclassify the Mr. President, I ask unanimous con- cleanup of waste, let us do it faster, we high-level Savannah River waste.’’ sent to have all those editorials printed have an idea, instead of removing all of I think they said it best when they in the RECORD. the material from these tanks we can said the view from Boise is more accu- There being no objection, the mate- just pour cement and sand on top of it rate, and that Kempthorne, the Gov- rial was ordered to be printed in the and somehow we can get this done ernor, believes the measure ‘‘would RECORD, as follows: quicker and cheaper’’—I am sure every- wreck Idaho’s position in the court by [From the Buffalo News, May 10, 2004] body in America agrees that pouring setting a precedent in short order, it DANGEROUS GAMES—FEDERAL EFFORT TO sand and cement on top of the waste would undermine the State’s landmark BURY NUCLEAR WASTES AT WEST VALLEY IS that is there instead of cleaning it up decision.’’ UNCONSCIONABLE is cheaper. But no one says it is safer It goes on to say: ‘‘Why would you re- The federal Department of Energy is try- and no one says it satisfies current law ward DOE for its heavyhandedness ing to use administrative sleight of hand to in the Nuclear Waste Policy Act. against the State by passing something avoid its responsibility in the cleanup of nu- That is why when the Department of in the committee with the thinnest of clear waste sites at West Valley and several other states. Energy tried to use an order basically claims to jurisdiction? If the Nuclear This contemptible effort involves down- reclassifying waste, saying, ‘‘let us try Waste Policy Act needs revision, do so grading the threat of nuclear waste, thereby this accelerated cleanup, let us try this in the open. Hold hearings. Conduct allowing the government to bury that dan- notion of grouting and see if it, in fact, them in germane committees. What is gerous material at West Valley and other is the way we can do this.’’ The courts going on here is not science, it is bare- sites instead of shipping it to a permanent have said the Department of Energy knuckle politics.’’ That is from the repository as called for in a 1982 law. Fortunately, New York Sens. Charles E. does not have that authority to reclas- Idaho paper. Schumer and Hillary Rodham Clinton recog- sify the waste; the definition lies with- The Seattle Post-Intelligencer said a nized this downgrading for what it was, a in the Nuclear Waste Policy Act, and similar thing: ‘‘The Senate should halt threat to West Valley and surrounding areas DOE was not consistent with that act. the nuclear waste plan.’’ Why? Because from the possibility of future leakage of this So what did the Department of En- the bill gives the DOE the reclassifica- radioactive material. After they protested ergy do when they lost that case? Yes, tion authority and withholds funds, the legislation, Sen. Lindsey Graham, a Re- it is on appeal. They can go through and that this is a scheme to reclassify, publican from south Carolina who introduced the appeal process. But instead of com- hoping the States will cave in. It is not the bill that would have allowed the DOE to ing to Congress and asking for public a good idea. downgrade the threat of nuclear wastes, altered his bill. It now will apply only to the hearings on changing the Nuclear What did the Idaho Statesman say? waste remediation project at Savannah Waste Policy Act, saying, ‘‘listen, we Well, basically in a headline that said River, S.C. think some waste that ought to be able ‘‘State Cleanup Faces An All or All But that doesn’t remove the danger. The to be reclassified,’’ they have snuck Proposition,’’ it said: ‘‘We expect the House, essentially led by Republican Major- language into the DOD authorizing Feds to clean up and move out all the ity Leader Tom DeLay, still has to consider bill. highly radioactive liquid waste now the DOE legislation. That cannot be a com- Let me be clear again. Sneaking in stored in Idaho. No haggling, no short- forting thought to residents living near West Valley. language is having a closed-door ses- cuts. Our political leaders need to hold The department argues that the wastes sion, without public debate, without firm even when politicians in other should be classified as ‘‘high-level’’ based public scrutiny, without a hearing on States are willing to cut deals.’’ only on how they originated, not what they the change in this reclassification. What did the Spokesman Review in are. But what they are is still bad, still ra- Now all of a sudden we are presented my State say? I thought the Spokes- dioactive and still a federal responsibility. with this bill and people think we man Review had an interesting take. Decades of expensive cleanup progress have ought to move ahead without removing They said: ‘‘For example, let us say the improved safety at West Valley, but the this radioactive language that is in the next step would be to persuade the af- work is far from over. The radioactive liquid wastes from a nuclear fuels reprocessing ef- DOD bill, which I say has no business fected parties and the public there is fort have been solidified into safe glass logs, being here. If people want to debate scientific consensus on this matter. which were supposed to be stored elsewhere. this policy, let us debate it in the Without that, there will be no hope of But the anticipated long-term storage facil- broad daylight of a hearing and discuss political consensus. The U.S. Depart- ity at Yucca Flats is years from completion.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5911 Tanks and residual wastes still remain at Fortunately, the House version contains ford threatens to pollute the Columbia West Valley, and an underground plume of none of this mischief. So even if the Senate River. Environmental groups rightly com- water is contaminated with radioactive goes along, there’s still hope a conference plain about rewriting the waste law in a de- strontium. Covering wastes with concrete committee will reject it. fense bill without public hearings. won’t help that. Craig and Crapo say they’re willing to The Senate should strip Graham’s amend- The 600,000 gallons of West Valley wastes defer to Graham on something they believe ment from the bill. The Energy Department have their counterpart in nuclear weapons affects only his state—as long as the cleanup needs to clean up nuclear waste fully, not production wastes at other sites—53 million funds are kicked loose. They also believe evade public accountability. gallons at Hanford on the Washington-Or- Graham will be appreciative down the road egon border, 34 million gallons at Savannah when Idaho needs his help. [From the Idaho Statesman, May 11, 2004] River near Aiken, S.C., and 900,000 gallons at The view from Boise is the more accurate STATE CLEANUP FACES ALL-OR-ALL the Idaho National Engineering and Environ- one, however. Kempthorne believes the Gra- PROPOSITION ham measure could wreck Idaho’s position in mental Laboratory. Idaho’s political leaders need to hold the the courts by setting a precedent. In short West Valley is the only site where the Department of Energy to a simple standard. state shares the cost of cleanup. order, it would undermine the state’s land- We expect the feds to clean up and move Those costs may run into the tens of bil- mark 1995 settlement with DOE, which re- out all the highly radioactive liquid waste lions of dollars over decades, but the mess quires the agency to clean up the INEEL and now stored in Idaho. No haggling and no remains a federal issue. At West Valley, the ship wastes out of the state. shortcuts. Our political leaders need to hold risk includes not only the site’s land but That’s not to say Idaho isn’t willing to ne- firm even when politicians in other states water drainage that flows into Buttermilk gotiate. But no governor can surrender uni- are willing to cut deals. Creek, Cattaraugus Creek and Lake Erie. laterally to DOE demands without unravel- About 900,000 gallons of high-level radio- Trace amounts of that radioactivity have ing the 8-year-old truce that ended the state- active waste sit in underground tanks in the been tracked as far as Buffalo. wide battle over the INEEL, its future and Eastern Idaho desert, above an aquifer that The DOE also is threatening to withhold the waste issue that has raged for more than provides water for many Idaho farms and $350 million in cleanup money from military- a decade. communities. Politically, two states are weaker than related cleanup efforts unless it gets a After decades of nuclear defense work in three. If South Carolina cuts a private deal change in the definition of what constitutes states like Idaho, it’s time for the Energy on waste, Washington and Idaho are left to high-level waste. That bit of weaseling does Department to fully clean up the sites that fight on their own. the department no credit. These sites were helped produce the implements of the Cold And why would you reward DOE for its created by the federal government, and the War. heavy-handedness against the states by pass- federal government should not be allowed to Unfortunately, the Energy Department has ing something in a committee with the thin- walk away from them. been more interested in cutting corners than nest of claims to jurisdiction? If the Nuclear Acceptable cleanup at West Valley in- in cleaning up. The agency wants to clean up Waste Policy Act needs revision, do so in the volves removal of all wastes and dismantling most of the waste but leave a fraction of it open. Hold hearings and conduct them in the and removal of the contaminated structures in the tanks, sealed with grout. that were used to process and store them. germane committees—Energy or Environ- The Energy Department has been trying to The government cannot be allowed to escape ment and Public Works. foist off less-than-clean cleanup as adequate What’s going on there isn’t science. It’s that responsibility through administrative and cost-effective. B. Lynn Winmill, an bare-knuckle politics. trickery. Idaho federal judge, ruled last year that the If the federal government truly could end a So as early as today, Sen. Maria Cantwell, D–Wash., will offer a motion to strip Gra- DOE plan violated federal law. Since then, problem by renaming it, we’d already be at the Energy Department has pushed the idea ‘‘mission accomplished’’ in Iraq. ham’s language from the defense bill. She has the support of Graham’s colleague, Sen. in Congress, and it may have a taker. With the help of Sen. Lindsey Graham, R–S.C., the [From the Idaho Falls Post Register, May 19, Ernest Hollings, D–S.C. But it’s going to be Energy Department now has language in a 2004] close, and the Idaho delegation could make defense bill limiting its cleanup obligations CHOOSING THE WRONG SIDE the difference. Does Graham may have more to offer Craig in South Carolina, where 34 million gallons Why would Idaho’s two U.S. senators sup- and Crapo than Idaho voters? of waste are stored at its Savannah River port the Department of Energy against their Maybe. Craig is in the second year of a six- Plant. own state? year term. Crapo just got re-elected to a sec- The language covers only South Carolina, You’ll have to ask them. ond term. Although the election isn’t until not Idaho. Still, it could set an alarming A big vote is coming up—possibly today or November, Idaho Democrats have forfeited precedent, and could put pressure on Idaho’s tomorrow—in the Senate. the race. political leaders to cave to the federal gov- Idaho has a lot at stake. ernment. The outcome is expected to be close. Just the same, both Idaho senators ought to reconsider. In Idaho, cleanup should be non-negotiable. Idaho Gov. Dirk Kempthorne is on the Idaho has the law and Winmill on its side right side. and has in hand a binding agreement with Sens. Larry Craig and Mike Crapo intend [From the Seattle Post-Intelligencer, May 18, 2004] the feds mandating the tank cleanup. Then- to be on the wrong side. Gov. Phil Batt reached a comprehensive At issue is nearly 1 million gallons of high- SENATE SHOULD HALT NUCLEAR WASTE PLAN waste cleanup deal in 1995, and Idaho voters level radioactive wastes stored in Idaho. The Senators should halt the Bush administra- ratified it a year later. Hanford nuclear site in Washington has 53 tion’s Department of Energy’s attempts to The deal gives Idaho leverage—but only if million gallons. Savannah River in South boss everyone around on nuclear waste pol- state officials and the Idaho delegation hold Carolina had 37 million gallons. icy and end run the federal courts. The ad- the feds to every word of it. Especially the Federal law says that waste may be col- ministration’s bullying tactics should be met word ‘‘all.’’ lected and stored in a national repository. with a firm refusal to submit. DOE wants to reclassify it, leave some mate- The DOE has a responsibility to clean up [From the Tacoma News Tribune, May 10, rial behind and save a few bucks. the heavily contaminated radioactive waste 2004] But it can’t get a judge to go along. Last in tanks at Hanford and several other sites year, U.S. District Judge Lynn Winmill ruled around the country. A federal judge already FIX ENERGY DEPARTMENT, NOT THE LAW IT’S DOE couldn’t do that on its own. DOE ap- has overruled the department’s attempts to BREAKING pealed. reclassify the waste in order to save money It was bad enough that the U.S. Depart- If the courts are uncooperative, try black- and leave it at the sites. ment of Energy was trying to carry out an il- mail. DOE is withholding $350 million in Legitimately, Energy has filed an appeal. legal quick-and-dirty ‘‘disposal’’ of some of cleanup funds—including about $95 million But is has shown horrid judgment with at- the nation’s most dangerous radioactive for the Idaho National Engineering and Envi- tempts to dictate changes in federal law to waste. Now a U.S. Senate committee is help- ronmental Laboratory. evade its responsibility, blackmail states ing the department circumvent the law. And if blackmail fails, start cutting into accepting the waste and free itself of The law in question is the Nuclear Waste deals—in secret—with Congress. DOE found state controls. Policy Act, which Congress passed in 1982. an ally in freshman Sen. Lindsey Graham, Sen. Lindsey Graham, R–S.C., has put lan- Among other things, this act requires the R–S.C. Behind closed doors in the Senate guage into a defense authorization bill to federal government to safely dispose of high- Armed Services Committee last week, Gra- give the department much of what it wants. level nuclear waste in a deep underground re- ham won a provision in the Defense author- The bill would authorize reclassification of pository. The law quite explicitly specifies ization Bill that would allow DOE to reclas- the waste in his state and let DOE withhold that the radioactive byproducts of pluto- sify high-level wastes at Savannah River. $350 million in cleanup money for Hanford nium creation—a category of waste all-too- Another provision allows DOE to continue and other sites until their states cave in to abundant at the Hanford Nuclear Reserva- holding cleanup funds hostage in Washington reclassification schemes. tion—must be buried in such a repository. and Idaho until the accede to DOE’s de- Sen. Maria Cantwell, D-Wash., is leading a Despite what the law says, the Energy De- mands. fight against the plan. Tank waste at Han- partment has other plans. Hanford’s high-

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5912 CONGRESSIONAL RECORD — SENATE May 20, 2004 level wastes are presently being stored on oratory, both of which are near major rivers. it from the tanks that are there, be- site in steel-walled tanks, many of which DOE previously announced a plan that would cause the tanks are leaking and you have leaked dangerous radioisotopes into the redefine as ‘‘low level’’ 53 million gallons of cannot guarantee permanent isolation. surrounding soils. The department does in- waste at Hanford and 900,000 gallons at So the tanks have started to be tent to encase most of the wastes in these INEEL. tanks in glass cylinders, which will be bur- Idaho and Washington are against reclassi- cleaned up and the process for cleaning ied. But it also wants to leave significant fying the waste. Said Sen. Maria Cantwell of them up is underway. But now the De- quantities on site. Naturally, the idea is to Washington: ‘‘Trying to rename high-level partment of Energy wants to say, save money. nuclear waste doesn’t change the fact that it ‘‘let’s have a new definition of that.’’ The Nuclear Waste Policy Act, however, is still dangerous, toxic, radioactive sludge In fact, in the underlying DOD bill, in doesn’t say, ‘‘Bury what’s convenient, and that needs to be cleaned up.’’ section 3116, it basically says: Critics say another danger in allowing don’t spend too much trying to get the rest.’’ High-level radioactive waste does not in- such waste to be reclassified and perma- It says, ‘‘Bury it, bury it all, and bury it clude radioactive material resulting from nently buried where it sits is that it paves deep.’’ A federal judge in Boise last year the processing of spent nuclear fuel. called the Energy Department on its scheme, the way for the importation of any other ruling that the leave-it-in-place plan would waste DOE deems to be ‘‘low level.’’ Hanford How about that? One change in the violate the law. could be a dumping ground for another DOD bill and billions of gallons of Laws, however, can be altered. That is state’s waste. The National Academy of waste in my State is no longer high- what Sen. Linsey Graham (R-S.C.) is now Sciences has concluded that the best ap- level radioactive nuclear waste. Just trying to do, so far with success. At this be- proach is to bury nuclear waste deep under- like that, changing the definition. Yes, hest, the Senate Armed Services Committee ground. Since that conclusion, Yucca Moun- it says the Secretary can determine last week amended a defense bill with a tain in Nevada has been chosen as the na- whether various hurdles have been measure that partially exempts the Energy tional repository. Department from the requirement that all Without a scientific or political consensus, scaled, but that is contradictory to the high-level waste be sent to a repository. it is unconscionable for DOE to seek such a current law in the 1982 act. The amendment applies only to South major change on such an important matter, I remind my colleagues this is an act Carolina wastes, but it’s a scary precedent especially in the absence of an open debate. that was passed through this body after for this state. The Energy Department has The agency needs to stop the repeated end- hearings, after discussion. I think the already made clear its desire for an incom- runs and make a good-faith effort to involve process may have taken more than a plete cleanup at Hanford, the nuclear con- all affected parties if it sees the need for year. It took more than a year to de- tamination capital of America. change. fine high-level radioactive waste. Yet If Congress attempts to relax the disposal Ms. CANTWELL. Mr. President, let’s standards in Washington as well, the state now we want to pass the DOD author- go back for a second to what this issue izing bill with this change in it and ba- had better be given consultation rights and is as it relates to the Nuclear Waste veto power over whatever plan the Energy sically say, ‘‘let’s go ahead and reclas- Department comes up with. The department Policy Act and what the underlying sify nuclear waste.’’ simply cannot be trusted to act in the inter- change in this bill does. That is the I am not for reclassifying nuclear est of Washington and its environment. question at hand. waste without a debate and a discus- As for Graham, his constituents in South My colleagues on the other side of sion and, frankly, the notion that this Carolina ought to be giving him an earful the aisle hope we can get rid of this underlying bill would reclassify it in about the prospect of living in perpetuity issue in one afternoon—again, without such an inappropriate fashion, to say with the world’s most lethal garbage. public debate, without the scrutiny of you could somehow call this grouting changing the definition of highly radio- [From the Spokesman-Review.com, May 9, and that this would be a sufficient way 2004] active waste. They think we should to deal with the country’s nuclear just pass what is in the underlying bill. DEBATE NEEDED ON NUCLEAR WASTE waste, is incredible. It is incredible It has only seen the daylight because of For the sake of argument, let’s say leaving that this is the scam being used on the some lethal waste buried at nuclear weapons the objections of myself and other col- American public just to get this proc- sites is a good idea, because the cost benefits leagues and the scrutiny of the press. ess in place. outweigh the risks. That is what has gotten them now to Let’s go through some of the history, The next step would be to persuade af- offer the amendment on the floor. The because as I said, I think this is really fected parties and the public there is a sci- amendment on the floor is not suffi- sour grapes by the Department of En- entific consensus on the matter. Without cient to strike the language relating to ergy, which has tried to get this policy that, there would be no hope of a political the reclassification of waste. pushed through and has not been suc- consensus. The U.S. Department of Energy So what is the issue? In 1982, when we believes that leaving some waste behind is a cessful. In fact, in 2001, basically, the good idea, but it is trying to slip this seismic passed the Nuclear Waste Policy Act— Department said that they would re- policy shift into a defense authorization bill, I wasn’t here but other Members create a better cleanup process. But, without public comment or congressional de- were—basically we came up with a defi- they said, we obviously have to get bate. nition. We said: States to agree. Last year, DOE tried to get House-Senate Highly radioactive material resulting from They came to us in Washington State conferees on an already passed energy bill to the processing of spent nuclear fuel, includ- and we said: We have an agreement accept this change. But that bill has bogged ing the liquid waste produced in the reproc- with you about the level of waste that down. Now it has found an opening in a bill essing. . . . is going to be cleaned up under the re- that otherwise has nothing to do with energy That is what this reactor did for us in matters. U.S. Sen. Lindsay Graham, R-S.C., quirements of the Nuclear Waste Pol- is pushing the change, but according to a Se- World War II. It basically processed icy Act, so we don’t really know what attle Post-Intelligencer article, a deputy as- spent nuclear fuel and that liquid you mean by reclassification. At that sistant energy secretary is listed as ‘‘au- waste was then stored in tanks still at time they refused to say that they thor’’ in supporting documents. Hanford. meant they would clean up 99 percent, In effects, Graham’s measure would ex- That the solid material derived from such or all that was technically possible, of empt DOE from the 1982 Nuclear Waste Pol- waste that contains fission products in suffi- this waste. icy Act, allowing the agency to solely deter- cient concentrations. . . . mine when a site has been ‘‘cleaned.’’ This is So we in Washington State said: Lis- just the latest DOE maneuver to shut states So that is what we said high-level ra- ten, it doesn’t sound like you have a out of the decision-making process, which is dioactive waste was. We went on to add serious plan for reclassifying waste in direct conflict with the 1989 Tri-Party to the definition: when you just want to call it a dif- Agreement. Highly radioactive material that the Com- ferent name. That is not an appro- DOE has been trying to reclassify some mission says is consistent with the law re- priate process. In fact, Washington ‘‘high-level’’ waste as ‘‘low level’’ for two quires permanent isolation. State decided not to do that. years, but the states, Congress and the That is what we said in 1982, that the Wisely enough, the Idaho court basi- courts have said no. A federal judge’s ruling spent fuel from these reactors required cally said DOE didn’t have that ability, sent DOE back to Congress to get the law changed. Such a change would have enor- permanent isolation. That is what the they didn’t have the ability to reclas- mous implications for sites such as the Han- current law says. The current law says sify that waste. That is exactly why ford Nuclear Reservation and the Idaho Na- spent fuel requires permanent isola- they are trying to sneak this language tional Engineering and Environmental Lab- tion. That means you have to remove in today, because they would like to

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5913 continue to say that they can move Waste Policy Act does not just affect that waste ending up in the Columbia ahead on a plan that, sure, would save South Carolina; it affects everyone. River. Or in the South Carolina, Savan- money, but who wants to save money That is not the way to legislate, by nah River. Governor Kempthorne said by leaving nuclear waste in the ground, sneaking it in without having full pub- it right: this is a huge step backward where it is leaking into the Columbia lic debate about this issue and the obli- because it reinforces the public fears River or the Savannah River, or other gations we have for nuclear waste about this process. areas of the country? cleanup. This Senator wants to have the nu- If somebody thinks this is an issue What has the Atomic Energy Com- clear waste cleaned up in our State. that affects the State of Washington, mission said? Basically, it said in 1970 Some people may not understand the or affects just Idaho, or affects South that over the life of these tanks, basi- process, or some people listening to Carolina—it doesn’t. These are bodies cally you have a problem. Basically, this debate may even think this is of water, with the potential of nuclear what you are saying when you assume somehow about four or five States in waste in them, that flow through many that you will take those Hanford tanks this country. It is not about four or parts of our country. To pass legisla- or Savannah River tanks or Idaho five States in this country and just tion without debate on changing the tanks or West Valley tanks, and you about whether we will change the defi- Nuclear Waste Policy Act is an incred- are going to leave material in them nition of high-level radioactive waste ible statement, that people are willing and somehow put cement over the top and what we will do about the defini- to override 30 years of law just to do of them and everything will be okay— tion. that. that is counter to all the science we That is what I am concerned about There are other issues I think we have had for 50 years. today in the underlying bill. This Na- need to talk about. I am very pleased The Atomic Energy Commission said tion has a responsibility—as it had a the Governor of Idaho, Governor Kemp- ‘‘over periods of centuries,’’—guess responsibility in development of the re- thorne, issued a release saying: what, that is what happens when you actors, the development of the pluto- Federal legislation undermines the cleanup leave it in the tanks for a long period nium, and the development of that that was to take place in Idaho, at the Idaho of time; you are talking about cen- product—this Nation has a responsi- facility. turies—‘‘one cannot assure the con- bility for the cleanup of those facili- In fact, Governor Kempthorne has tinuity of surveillance and care which ties. Oftentimes my colleagues forget said his opposition to the legislation tank storage requires.’’ about that responsibility until it that was passed by the Senate Armed (Mr. CRAPO assumed the Chair.) comes time to do the budget and people Services Committee is because it al- Ms. CANTWELL. They are saying if see the huge amount of money that is lows the Secretary of Energy to with- you put in high-level waste, we cannot spent on nuclear waste cleanup. hold an estimated $95 million from tell what will happen to that over a I would be the first Senator to say we cleanup funds, which is part of the de- long period of time. That is why the de- have made mistakes in this process. It bate we are going to have on the under- cision was made to take it out and put is mind-boggling to think prior to my lying amendment. But then he goes on it in a permanent storage facility coming here that at one point in time to say: somewhere else, because these tanks do somebody gave contracts to a company to produce vitrified logs, and they were I recognize the need to ensure public con- not have the capacity. fidence in how we manage nuclear waste. The science says that once you do not going to pay them until they made This legislation would be a huge step back- the grouting of this waste, unfortu- the vitrification work. Somewhere wards, reinforcing public fears about our Na- nately, your opportunity to do other along the way people figured that tion walking away from nuclear cleanup ob- things is much more difficult. Once you would not work, that the vitrification ligations. I am also concerned this legisla- have poured cement on the ground and process was not underway and oper- tion will negatively impact DOE’s compli- solidified it, the process of getting it ating. But now we have been successful ance with the 1995 court settlement case in out and retrieving it is made im- and vitrification is starting to take Idaho. mensely more difficult. In fact, the In- place. That means we are taking the I think Governor Kempthorne, who stitute for Energy and Environmental nuclear waste out of the ground and so- has to deal with this, just as Governor Research in 2004 said: lidifying it into a glass log substance Locke does in the State of Washington, Grouting residual high-level waste in and that glass log substance will then has realized what a bad deal this is for tanks that contain significant quantities of go to permanent storage. So it will be Idaho. He realizes the underlying lan- long lived radionuclides . . . Is a policy that in a facility that can help store that guage, when it tries to reclassify poses considerable risk to the long-term product for an indefinite period of waste, is a danger. health of the water resources in the region. time. That has been the plan. That is I find it interesting that we will for- This statement is from 2004. In 2004, the plan on the books. That is the plan get the Nuclear Waste Policy Act, no people have said this grouting tech- of record. problem. We will write our own rule nique, which basically is storing this in But that is not what the DOE author- about what hazardous waste is. We will the leaking position in underground izing bill does. It says, ‘‘no, let’s reclas- come up with our own definition. tanks, is a threat to the water re- sify that waste and say that it is not The states of Washington, Idaho, Or- sources of the region. These tanks are high level. Let’s just call it another egon, South Carolina, New Mexico, and not more than 7 miles from the Colum- name, let’s call it grout and say it is New York filed into the court case and bia River, not 7 miles from one of the okay to keep in the ground, let it con- in their amicus brief said: major water resources of the Pacific taminate water, and let’s keep the sav- DOE cannot ignore Congress’ intent . . . by Northwest. It already has a plume of ings from that unbelievable simply calling [high level] waste by a dif- nuclear waste that has reached the shortcutting of our responsibilities in ferent name. river. Fortunately, it is at a level that the cleanup process.’’ I don’t think South Carolina joined that case. we can contain today but only if we that is something we want to do as a South Carolina went to the courts, put continue to clean up the tanks. body and government. its name on a brief, objecting to the This proposal to pour cement and I would like to talk about how this DOE attempt to reclassify high-level sand on top of it and just keep the legal process worked and why DOE is nuclear waste by issuing an order. waste in the ground has not been prov- attempting to do this. What my col- Why all of a sudden are we now going en as a secure way to keep the waste leagues seem to want to think today is to listen to one State tell us they have intact and water resources clean. So that this is all about giving the State the right to decide they are going to what you are leaving us with in the Pa- of South Carolina the ability to nego- keep nuclear waste in their State and cific Northwest—in Washington, in Or- tiate with DOE what nuclear waste they are going to call it something egon, in the tributaries feeding in and cleanup should be. In fact, as I said, in else? Nuclear waste that reaches the out of the Columbia River and into the the underlying bill, instead of saying Savannah River does not affect just Pacific Ocean—is the threat of 50 mil- that high-level waste is something that South Carolina, and a definition in lion gallons of nuclear waste not being needs to be retrieved, basically that statute that conflicts with the Nuclear cleaned up in a sufficient fashion and spent fuel from reactors is something

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5914 CONGRESSIONAL RECORD — SENATE May 20, 2004 that needs to be retrieved from tanks from being in the bill. Unfortunately, done. They did their job. Now it is our and put in permanent storage, basi- it is in the underlying bill before us. turn to do our job and clean this up. cally the DOE underlying bill says, no, The underlying bill before us also When you are talking about 100 mil- high-level radioactive waste resulting created a slush fund of $350 million. I lion gallons of highly radioactive waste from fuel process can be reconsidered find it intriguing. I love knowing a lit- that is stored in 253 deteriorating and considered for a different kind of tle bit about software because when tanks in all of these States—as I said, storage permanently in the tank. And you share documents and you basically at Hanford we have 53 million gallons that is something South Carolina and try to make changes to documents, and of this tank waste, about 60 percent of DOE can do together. you e-mail those around to everybody, the whole national inventory. So 60 That is not what the cleanup part- you can look at the text and see where percent is in Washington State, along nership really is. The cleanup partner- the changes came from. It is very in- with other high level waste stored in ship is not about the State of South teresting, this legislation was proposed the Hanford 200–Area. That includes Carolina and the Federal Department by a member of the Senate Armed spent fuel and miscellaneous volumes of Energy interpreting the Nuclear Services Committee. But when you that contain high-level waste from off- Waste Policy Act in a new way by pass- check on who was really the author of site which are also buried in the ing contradictory language. the legislation, when you look at who ground. Let’s imagine for a second that we was making the changes to the legisla- I am all for considering new tech- let the State of Michigan determine tion, it was the Department of Energy. nology and new ways to clean up waste what the clean air standards are for The Department of Energy wrote the and to retrieve waste that is buried in the State of Michigan. Let’s say that statute and basically submitted it to the ground that is considered high- EPA and the State of Michigan de- the committee, and tried to make it level waste, which may have come from cided, well, the clean air standards for look like it was a Member’s idea. This other States or have been basically Michigan are going to be at X level, is coming straight from the Depart- brought to the Hanford Reservation. and that somehow that is OK for ment of Energy, that lost a court bat- Some has been dumped on the Hanford Michigan, but somehow we do not tle, and does not want to wait for an Reservation and then has been part of think that is going to apply to the rest appeal, does not want to come here and the storage there for some time, but of the country. fight their battle in the daylight, but that is a different issue. Does anyone think that once it ap- wants to try to sneak language in a The Nuclear Waste Policy Act makes plies to Michigan, some other State is bill, in the hopes these people will it very clear that spent nuclear fuel not going to say: How come you gave blink on a Thursday afternoon. Well, I from reactors needs to be placed in a Michigan an exemption? They continue am not prepared to have this bill move permanent isolated area. That does not to pollute the air at a level that the forward without having this discussion mean pouring cement in tanks and rest of the country does not, which has today about this change. calling it incidental. It is very clear a higher standard. We are talking Now, what was DOE’s great idea that about that. So we can talk about other about a recipe for disaster in the courts they submitted through a member of technologies to clean up other kinds of and for predictability in the process. I the Senate Armed Services Com- waste, or we can come back and debate think it is very detrimental, where we mittee? What was their wonderful idea? changing the Nuclear Waste Policy are going with this legislation. Well, besides reclassifying waste, they Act. But because 67 of the 177 tanks The court process that took place is decided, ‘‘well, let’s create a $350 mil- that we have in Washington State have now on appeal to the Ninth Circuit lion slush fund that gives the Sec- already leaked 1 million gallons of Court. We are still waiting for a deci- retary of Energy the authority to with- waste into the ground, that is 1 million sion. I think the appropriate thing for draw cleanup funds from the States of gallons of nuclear waste, this Senator the Department of Energy to do, while South Carolina, Washington, and does not take this issue lightly. they are waiting for their decision on Idaho—until they agree with our re- DOE estimates that at Hanford, 270 appeal, is to say they want to come to classification plan.’’ Basically, it was billion gallons of ground water is con- Congress and have hearings on chang- to hold them hostage and blackmail taminated above the drinking water ing radioactive waste definitions, that them into agreeing. standards across 80 miles of this site, they want to come and have a discus- As I said, when the State of Wash- and that plumes containing numerous sion about that. ington was offered this deal 2 years toxins have reached the Columbia I appreciate the fact the Senator ago, we said: ‘‘We are not taking any River. from Michigan, Mr. LEVIN, as this issue deal unless we understand what you I think we have another picture of was discussed in the Armed Services are cleaning up and how you are clean- the Hanford site. I encourage all my Committee, understood the dangerous ing it up. The fact that you think you colleagues, at some point in time, to go precedence of this language, and under- are going to reclassify and rename this to the Hanford site. This site is in stood how important it was to get the is not good enough for us. Let’s see the Washington State, but this is a Federal DOD bill done. He basically asked that details.’’ When they refused to show us responsibility. It is a Federal responsi- they not include that language in the that they planned on cutting cleaning bility to clean up nuclear waste. It is bill. up all this waste, we refused to accept not just the province or jurisdiction of Now, it was a closed-door session. I the deal. Now they are hoping they will four or five States in the country. We do not know what the real vote was. I buy off some other State. spend budget money on this issue, and am sure it was a closely, hotly debated If the Department of Energy really we need to get the job done. issue. But, really, what they put in was believes science is on their side, if it You can see one scene of the Hanford section 3116, which would overturn 30 really believes this grouting technique reservation, which is almost as big as— years of carefully crafted laws and 50 works, if it really believes this is the a third of the size—the State of Rhode years of scientific consensus related to process we ought to pursue, then come Island. It is an immense property. I the cleanup of the Nation’s radioactive before the Energy and Natural Re- know the senior Senator from Wash- defense waste. sources Committee, come before the ington State has joined me, and she As written, this provision—because it EPW Committee, and debate a change can tell you—because she was instru- allows DOE to reclassify waste that, as to the Nuclear Waste Policy Act, the mental in getting the Hanford Reach I said, for decades has been classified as policy that defines highly radioactive Monument created, preserving some of high-level waste—basically says the ra- waste and how it should be cleaned up. this as a national monument for us. On dioactive and chemical toxic compo- I think it is a tragedy, especially the one hand we are preserving it as a nents would stay the same. So basi- when you think about the good job the national monument and then deciding cally the same toxic level of waste is people did at Hanford, the process by one day we are going to take high-level there, but we are just going to call it which these people speedily got to the radioactive waste, rename it, let the another name. I appreciate the fact business of helping us in World War II, plume that is already reaching the Co- that the Senator from Michigan tried in the cold war years, and providing us lumbia River to stay in the ground, to change this language and prevent it with help and support. They got the job and that somehow by putting cement

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5915 and sand on it, we are all going to be term health of the water resources of fication. In all, I think there were OK. the region. That is what science says. three cases. DOE said they would still Everybody wants to say how much The grouting proposal that is in this retrieve waste from the tanks, but try cheaper that proposal is. I think every- bill is a considerable risk. In the State to treat it and bury it in steel con- body in America gets how cheap it of Washington, we are very familiar tainers and lined trenches in the Han- would be to pour concrete and sand. with this. In Washington State, thank ford site. What they want to know is whether it God our Department of Ecology has I can tell you, even the new and im- is safe, whether it is the right tech- had strong reservations about grouting proved grout was quickly rejected by nology, whether it is going to stop the and we have vocalized those. For us, the State of Washington and by other plumes or leaking tanks, whether you because it is 50 million gallons of this scientists. are going to change the current law highly radioactive waste, it would have According to the officials at the first to get there. to have been a plan for durability for Washington State Department of Ecol- This is a beautiful, pristine area of 10,000 years. That is what you would ogy, grouting would have violated the our country that we can preserve, but have to have. That is how radioactive State requirement that any alternative only if we do the job we are responsible the waste is. waste that was not performed at the to do, as the people who created the B What is bothersome is when people vitrification objected to. And, in addi- reactor and created this facility were say an indeterminate amount, that is tion, the State found that this grout- responsible in doing. what DOE can decide. An indetermi- ing would still pose ground water risks To be irresponsible today by offering nate amount? The last 8 percent of the and create leaching; furthermore, that this on the DOD authorizing bill and waste in the tanks has 50 percent of the this would violate drinking water thinking we are going to have a debate radioactivity. Think about that. So we standards. about it in a few short hours and are saying in this underlying bill, go Even more interesting is the fact change 30 years of law and 50 years of ahead, DOE. Leave an indeterminate that the grouting was not to be found science is shameful. It is shameful that amount in the tanks. Maybe they will more efficient. In some instances, we think we can have this kind of dis- say let’s leave 10 percent. Maybe they grouting wasn’t found to be any cheap- cussion in a few hours and wrap up a will say, let’s leave 5 percent. We know er than other options of cleaning up decision. If people are so sure about at 8 percent it is 50 percent of the ra- the tanks. While everybody says that their position, then hold the public dioactivity. pouring cement and sand on this is a hearings and have the debate. Because We think the grouting plan is some- great way to clean up nuclear waste, these tanks are leaking and one mil- thing that is not the way to go. We set most people figured out that leaking lion gallons have already leaked in my it aside in Washington State. We said would still happen and that nuclear State. It is not something that is a to- that basically glassifying or vitrifying waste would still need to be removed. morrow issue. the waste was the way to go. That They figured out that it was even more What about the science? Let’s go means that process of turning it into a expensive to remove than waste. back, so my colleagues are clear about glass structure so it is a solid structure So those are the scenarios with how we got here. Congress required and taking it to permanent storage was which we are dealing. Those are the DOE to clean up these sites and make a better way to go. scenarios that have been discussed. it a priority, and they did that in that As I said, in 2002, DOE wanted to use This debate—whether we want to re- 1982 act. That act reflected science dat- this accelerated initiative. We in Wash- classify nuclear waste and call it lowing back to 1950, when the National ington State had people come and talk level waste and say we are going to Academy of Sciences recognized that to us about what accelerated cleanup grout it—might be new to some of my high-level radioactive waste, such as was and what the schedule would be on colleagues in the Senate as to. But for the waste at Hanford, must remain iso- high-level waste. And we said: We want the State of Washington, we already lated from human beings and the envi- to understand how you are going to said this plan wasn’t acceptable ronment long enough for the radioac- comply with the agreements that are science, and that reclassification was tivity to decay. That is a long process. already on the table and with the Nu- something we didn’t think we should That is why the Atomic Energy Com- clear Waste Policy Act, with the go along with, when DOE wasn’t will- mission, a precursor to the Department triparty agreement, because this isn’t ing to give us a definition on how they of Energy, also recognized something the first time the Department of En- were going to clean up the waste. must be done to treat high-level radio- ergy has had debates with the State So this is very difficult because the active waste in the tanks and at these about their responsibilities for cleanup. tanks holding sludge and salt cake and DOE sites, and they referred to ‘‘over a I can’t imagine that there is an OMB hard heels—this would mean the waste period of centuries.’’ As I said earlier, director or a DOE executive who does in those tanks would not be penetrated this isn’t a problem where you think not come to that post and look at the to remove and segregate the radio- about it for a few years or even a dec- numbers involved in cleanup and basi- nuclides. The hazardous material ade. You have to come up with a solu- cally says: Boy, there has to be a way would not be separated out and re- tion for centuries. we can get this done quicker and moved. It means those tanks would not Over a period of centuries, the Atom- cheaper. I am all about getting it done be thoroughly mixed without the right ic Energy Commission wrote in 1970, quicker, given that I have a million level of product. Basically, what they ‘‘one cannot assure the continuity of gallons already leaking and running found is that grout, as engineered, is surveillance of care with storage into the Columbia River. I am all about not an option that protects human tanks.’’ Basically they said, you can’t quicker. But I am not about a plan health and the environment for such a get it done with storage tanks. So the that has not been verified by science, significant portion of tank waste, when science has not changed since then. that has not had a hearing in a full we don’t know the definition, because Yet there are provisions in this bill committee as to this process and what it is an indeterminate amount of tank where DOE says, let’s throw out the it will mean. waste. science. And the provision in this bill Everybody gets the quick factor, but As I said, even the last 8 percent of would allow DOE to take 50 years of who said cleaning up nuclear waste in tank waste includes 50 percent of the science and leave an indeterminate America should be about doing it on radioactivity. How do you know, by amount of toxic sludge in these leaky the cheap? It is about doing it the right using this grouting process, that you tanks and simply say: Mission accom- way. As the Atomic Energy Commis- have successfully rendered this a non- plished. I think we have heard that sion said, it is about keeping it out of hazardous substance? So grout as an statement before. the reach of humans for centuries. in-tank treatment for significant waste What science says is that grouting Subsequently DOE has insisted upon volume will be, as I said, probably residual high-level waste in tanks that researching new technologies for the more expensive than other routes when contain significant quantities of long- treatment of Hanford tanks, this new we find out that it is not successful. lived radionuclides is a policy that pos- form of grout, cast stone, steam re- The best science says is don’t hold sesses considerable risk to the long- forming, and different forms of vitri- States hostage by reclassifying waste

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5916 CONGRESSIONAL RECORD — SENATE May 20, 2004 and telling them we are not going to the Nuclear Regulatory Commission, is tion, and they are paying attention to give them money for cleanup unless on Yucca Mountain and the deep geo- the fact that this science is not stand- they agree to our definition. This defi- logical solution. That is what their re- ing the test of daylight and scrutiny. If nition is something that the Depart- sponsibility is. it were, they would be here debating it. ment of Energy thinks they can come The act directed the President to de- I am saying to them now, this Sen- up with on their own. But the courts cide whether high-level radioactive de- ator, and I am sure members of other have determined that DOE doesn’t fense waste should be disposed of in the committees, welcomes the opportunity have that authority. same repository as civilian waste, or in to understand this technology, to un- The courts have not sided in DOE’s a separate repository. So in 1985, Presi- derstand this new process, to under- favor. The courts have not said don’t dent Reagan decided this defense waste stand exactly how taking some level of go ahead with cleanup. They didn’t say should be put in the same repository as spent fuel from these reactors in these you cannot move forward on cleaning civilian waste. underground tanks and somehow pour- up the tanks. The courts said: DOE The 1982 act defines high-level radio- ing a grouting material on them is cannot move forward on its plan of re- active waste. We had a decision by the going to make for a successful cleanup classifying waste and saying that it is President in 1985 that military waste effort. a grout process and that is going to should be treated as civilian waste, and I am sure my colleagues would love work. It says you cannot move forward that the civilian waste should be put in to hear if it actually saves billions of on that. the same spot. dollars and can be safe and sound So back to the underlying bill and So that is the plan we have been on. science. But if that is the case, then we what happened in the Defense author- Now, I have had some concerns about should not be in a rush today. After the ization bill. There was an amendment how much waste you are actually going courts have already said DOE does not that would enable the Department of to take out of Hanford because, I tell have the authority to change this pol- Energy to exempt an intermediate you what, I want more than 17 percent icy without the approval of Congress, amount of highly radioactive waste of the waste taken from Hanford to go the Nuclear Waste Policy Act, my col- from regulation as high-level radio- to Yucca Mountain. I want it cleaned leagues should not be in a hurry to pass active waste. up and I want it in a permanent place. this legislation that basically says in a I am reading from legal counsel’s in- I don’t want grouting and I don’t contradictory form: Go ahead, DOE terpretation of this underlying provi- want to have plumes continuing to Secretary, reclassify the waste because sion in the DOD bill. This interpreta- leak. But that was the decision made nuclear waste from spent fuel does not tion says the amendment would allow in 1985, and the President made that have to be classified as highly radio- the Department of Energy to continue decision. They said, let’s vitrify this active. The definition of highly radioactive to store waste long thought destined waste, glassify it, take it out of the waste that is used in the Nuclear Waste for deep geologic repository in existing tanks, turn it into glass logs, and take Policy Act was initially modeled after storage tanks or send them to waste that to a site for permanent storage, the definition found in the West Valley isolation pile-up plants or low-level ra- wherever that site is. demonstration project. That is a com- dioactive waste burial sites. It also The plan, since 1985, has not been to mercial site in New York. I am again would exempt the Department’s han- pour cement and sand and create grout reading from the legal opinion Energy dling of those wastes from the license leaving some percentage, some indeter- counsel has provided to us. and regulation by the Nuclear Regu- minate amount of waste in tanks. It basically said waste produced by I cannot emphasize how important it latory Commission. It will, in short, reprocessing of spent fuel, that it in- is if DOE believes in this philosophy, overturn the fundamental legal prin- cluded both liquid waste and that ciples that have governed the disposal this science, if DOE thinks this is the waste directly from reprocessing and of these wastes for the past 30 years. successful course of discussion that dry solid material derived from that This legal briefing goes on to point should happen with spent nuclear fuel, solid waste. out—which I think is very important— then come to the broad daylight of a In addition, it gave the Nuclear Reg- that for nearly half a century, when Senate hearing and make their case ulatory Commission the authority to the DOE and its predecessors made plu- and put that before the appropriate include other waste in the definition of tonium for their nuclear weapons, they Senate committees. If they are so such material. Significantly, West Val- did so by irradiating uranium fuel, proud of their science and the standing ley gave the Commission power to add transforming it into plutonium, and re- of their decision, they should have no material other than reprocessing waste processing the spent fuel, as I showed problem doing that. As Governor to the definition, but not to exempt in the picture with the reactor. And Kempthorne of Idaho said, when you any part of the processing of waste. that became high-level radioactive don’t end up achieving public con- We have had this debate, and I know waste. This is the term given to the sensus, you don’t do anybody any fa- the Department of Energy objected to plutonium spent fuel from the reactors vors. the definition. I know they wanted the was high-level waste. The issue is the Department of En- regulatory agencies to be able to ex- So what did the Nuclear Waste Pol- ergy knows all too well, because these clude material from high-level radio- icy Act say? In 1981, the Nuclear Waste States of Washington, Oregon, Idaho, active waste. I know that is what they Policy Act said: Let’s establish a com- and South Carolina challenged the De- wanted. But Congress rewrote the defi- prehensive program for the disposal of partment of Energy in court, that nition, not as the Department asked, this spent nuclear fuel, and put it in these States do not believe this order but, as enacted, the final definition deep geologic repositories licensed by or plan for reclassifying waste is sound provides, as I said earlier, high-level the Commission. science. They do not believe it is sound radioactive waste means material from So let me be clear about this point, science. That is why they challenged it reprocessing of spent nuclear fuel, and because I am sure we will hear about in court. that other radioactive material that this in the debate. The Nuclear Regu- I know the Department of Energy the Commission, consistent with exist- latory Commission was given the re- knows they cannot waltz into the Sen- ing law, determines requires perma- sponsibility of the deep geological re- ate hearing rooms and make their case nent isolation. pository license procedure. The Nu- without hearing the critiques of the ex- That is the process by which we, as clear Regulatory Commission was not perts who have been dealing with this the legislative branch, have gotten to given the responsibility for these low- issue for years and years. And by ‘‘the the point of making decisions about level tanks. The Nuclear Regulatory experts,’’ I mean not only the sci- this incredible product that was made Commission was not given the respon- entists, but the people who have to live by men and women throughout our sibility to interpret this change in the with the economic and health con- country in the 1940s. It was a time of DOD bill as it relates to whether this is sequences of having a million gallons great military need, during World War a cleanup plan and whether they can li- of nuclear waste leak into the ground II and the cold war. And they did their cense it because that is not their re- and make its way to the Columbia job, as the federal government had sponsibility. Their responsibility, as River. Those people are paying atten- asked.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5917 Now we are saying we are going to ig- tention of the Environment and Public will take the 5 hours to explain to my nore the definitions and the process Works Committee and not be proposed colleague the significance of these and not really have a hearing on the on the Defense authorization bill with- changes. Nuclear Waste Policy Act or the fact out the scrutiny of public debate and Mr. WARNER. Mr. President, will the that the DOE has already been turned foresight that such a huge, significant distinguished Senator yield for a ques- down in the courts in its ability to re- change in policy would bring about. tion? classify that waste. This is why I am going to take as Ms. CANTWELL. I will yield to the Mr. ALLARD. Mr. President, I won- much time as necessary to explain this Senator for a question. der if the Senator from Washington policy and to say to the members of Mr. WARNER. I thank the Senator. will allow me a moment. the Senate Armed Services Committee May I most respectfully explain that Ms. CANTWELL. Does the Senator that while any member has the ability under the Senate rules of allocation of have a question? to offer any amendment they want, in- committee responsibilities, this issue Mr. ALLARD. Pardon? cluding in an authorizing bill, usually of the nuclear waste is directly within Ms. CANTWELL. Does the Senator it is the other way around. We have au- the purview of the Senate Armed Serv- have a question? thorizing on appropriations and issues ices Committee. We control, through Mr. ALLARD. I do not have a ques- of that nature that have caused—— oversight, 70 percent of the budget of tion. I wanted to know how much Mr. INHOFE. Will the Senator yield the Department of Energy. The cost of longer the Senator from Washington for a question? nuclear waste cleanup comes before our will take because we have Members in Ms. CANTWELL. The Senator will committee. So I want to say to my dis- the Chamber who would like to speak. yield for a question. tinguished colleague, while she may They have schedules and would like to Mr. INHOFE. I remind the Senator have concerns about the legislative get some feel of when their opportunity from Washington, if she is concerned process as a whole, there is no doubt may come up to speak. about the action that we had proposed about the jurisdiction of the Armed Ms. CANTWELL. Without yielding with the Environment and Public Services Committee over this subject. the floor. Works Committee, I chair that com- We have put in our bill, which is now Mr. ALLARD. Mr. President, I ask mittee and I am waiting to be heard at the desk and the subject of debate, the Senator from Washington how concerning this issue because I also the specific provisions the Senator is much longer she anticipates taking to have a lot of interest in it. I appreciate addressing. Jurisdictionally we had the complete her remarks. the fact that the Senator is suggesting perfect right to incorporate in our bill Ms. CANTWELL. Mr. President, I our jurisdiction should be heard, and such legislative language we deemed as have some more material on the his- that is what I am waiting to do. a committee necessary for dealing with tory of the process. I see 2 of my col- Will the Senator agree with that? this question of this specific type of leagues in the Chamber who are also Ms. CANTWELL. I thank the Senator nuclear waste. I was not certain that very concerned about this issue, but I for his question. The issue is that the the distinguished Senator was aware imagine at least another half hour or Senate Armed Services Committee that clearly this is in the jurisdiction so longer, maybe more. should never have voted and considered of this committee. Mr. ALLARD. I thank the Senator this legislation in a closed door session Ms. CANTWELL. I thank the Senator for that guidance. without those hearings. So I certainly for his question, but under rule XXV, Ms. CANTWELL. Does the Senator want the Member to be heard but—I the Armed Services Committee has ju- from Washington have a question? think I have the floor, Mr. President. risdiction over national security as- Mr. ALLARD. I would hope we could Mr. INHOFE. Will the Senator yield pects of nuclear energy, the Energy go back and forth. I think that is the the floor for a question? and Natural Resources Committee has way the debate has been going. The Ms. CANTWELL. I think I have the jurisdiction over nonmilitary develop- next Senator I will call on is Senator floor, Mr. President, and I will yield in ment of nuclear energy, and the EPW INHOFE, and then whoever on your side. a moment for another question. Committee has jurisdiction over the Ms. CANTWELL. I obviously want The issue is that we have been trying nonmilitary environmental regulation my colleagues to join in the debate on to work with the author of this legisla- and control of nuclear energy. this issue, but the reason this Senator tion on a compromise that would pro- Undoubtedly SASC has jurisdiction feels so strongly about this process is mote a dialog and a hearing. My staff over the reprocessing that created the because I do believe this measure does has been working diligently since the tanks to begin with because DOE was not belong on the Defense authoriza- language came out of the Senate responsible for the national security, tion bill. We have a very important Armed Services Committee. but I do not see how anyone could seri- piece of legislation that needs to move This morning we learned without ously argue how the waste, disposal, through the process, and yet we have warning, without notice, that perhaps and cleanup of the Nuclear Waste Pol- an entity the courts have turned down, now they did not want to continue dis- icy Act is a part of the national secu- that believes that States have turned cussion on that, they did not want to rity aspect of the Senate Armed Serv- them down, that believes this is a con- continue discussion on how we brought ices Committee’s jurisdiction. troversial issue, and thinks they ought this issue to light. While I am more than happy that the to sneak it in on a DOD bill and that is I really did not want to spend the committee has used this authority to a way to do legislation. It is not the afternoon on the Senate floor. We had bring this issue up, I think the com- way to do legislation. hoped we would actually propose a bet- mittee is doing an injustice to say to This is the only opportunity we have ter process and procedure, but others our colleagues that a change that is in to expose the fact this legislation has want to move forward on changing the contradiction to the Nuclear Waste been drafted this way and the unbeliev- underlying bill, which in this amend- Policy Act ought to be passed by the able effect it has on so many people in ment is still flawed. The proposed committee without hearing, without this country when the Department of amendment by Senator GRAHAM of debate, without full scrutiny of public Energy can author legislation and give South Carolina makes a bad situation daylight. This provision would really it to a member of the Senate Armed slightly better but does not correct the contradict 30 years of law on the books Services Committee who then offers it underlying problem. And this Senator when the agency promulgating that in a mark-up in private and includes it whose home state has one million gal- rule change lost a court battle basi- in the legislation. lons of nuclear waste flowing to the Co- cally telling it it does not have the au- I am going to take a little more time lumbia River—is going to be heard on thority to redefine high-level nuclear to go over these facts because I think the details of this proposal. waste. the bright light of day needs to shine The fact that we have not had a full I fully respect, because of all the on the fact the Nuclear Waste Policy public hearing on a significant change committees that I work with, I know Act of 1982 ought to have the attention in 30 years of policy and 50 years of that the chairman of the Armed Serv- of the Energy and Natural Resources science is something that, if it takes ices Committee always strives to be Committee and ought to have the at- me 5 hours to explain, I will take it. I fair and balanced at his hearings. And

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5918 CONGRESSIONAL RECORD — SENATE May 20, 2004 there are difficult challenges that we those other committees and maybe to on sound science, that has not met the have had over many sensitive subjects SASC in the authorizing of an appro- test, nor has our approval. in the last several weeks. The chair- priation, but not for the policy change. While I am willing to have this de- man has gone way out of his way to Mr. WARNER. Mr. President, I will bate, I hope my colleagues will use this make sure the continuity of that com- reply later today with the documents debate as an opportunity to understand mittee works well and that the rules in hand. our challenge on nuclear waste cleanup and processes are followed. But I say to Ms. CANTWELL. Mr. President, I and the tremendous amount of re- the chairman that if the Department of think there are several other people sources that are spent by our Govern- Energy is so sure about these statutory here. ment on that cleanup and the effi- changes they are promulgating Mr. REID. Will the Senator respond ciencies that need to happen to make through his committee without debate, to a question from the Senator? that process go more smoothly than it then they ought to be willing to have Ms. CANTWELL. Without losing my has in the past. the hearings and have the debates with right to the floor. But I can guarantee to my colleagues the other committees that have juris- Mr. REID. Yes. I say to my friend that wanting that process to go more diction for the cleanup, not the na- from Washington, having spoken with smoothly in the future, and wanting it tional security efforts the Senator was her, it is my understanding the Sen- to be more cost effective, does not sim- responsible for as the chairman of that ator has said publicly that if we came ply mean coming up with a short-term committee. back after the break, the Senator proposal, a fix that is counter to what Mr. WARNER. Mr. President, if I would be willing to look very closely at existing statute and law is. If we want could reply, without the Senator losing the amendment pending and would be to have that debate, let’s go through her right to the floor, I will shortly willing to offer one of her own, that she the normal committees and have that bring the President’s budget request would agree to a time certain on that debate, and let’s have the scientists for funds. I will bring appropriations amendment. Is that true? come in and discuss it with us, and acts and I will show the Senator the di- Ms. CANTWELL. I simply want the let’s not end up with a process where rect linkage of the request for funds issue to have the appropriate amount we are going to be battling in the coming to the Armed Services Com- of debate and dialog. All of us will have courts. I don’t think that does any of mittee, the Armed Services Committee the opportunity to vote up or down on us any good. Certainly, for us in the bill going to the Appropriations Com- any of the amendments anybody wants State of Washington, with a 1-million- mittee, and action by the Appropria- to offer to this section. But the ques- gallon plume heading toward the Co- tions Committee on the authorizations tion before us was, all of a sudden at lumbia River, it doesn’t do us any of expenditure of the funds for nuclear 11:30 today, without notice, when we good. waste and cleanup. It is irrefutable, had been in negotiations on this lan- I hope my colleagues will use this op- and I will take a little time to go out guage, to bring it to the floor, this Sen- portunity to focus attention not just and get the documentation. Then I will ator feels obligated to make sure this on the question at hand, of high-level ask unanimous consent to print that time period is used to bring committee radioactive waste, but I would say the documentation in the RECORD. members and colleagues up to speed consistency by which the States of I thank the Senator. about the contents of the underlying Washington, Oregon, Idaho, South Ms. CANTWELL. I thank the chair- bill. Carolina, and others have banded to- man again for his statement. I point Mr. REID. Does the Senator yield for gether in the last year or two in au- out to him that the difference between another question? thorizing and appropriations language authorizing for appropriations and Ms. CANTWELL. Yes. that has done a good job to make sure oversight of policy, and what I am de- Mr. REID. It is my further under- the processing of radioactive waste is bating is that the committee’s over- standing the Senator, who has spoken completed. sight over nuclear waste cleanup policy for some time now, has a lot more to I remind my colleagues, this is the as set out in the Nuclear Waste Policy say, is that right, on this amendment, first time I think the Department of Act. When that was passed in 1982 and on this date? She has only gotten Energy has successfully picked off a moved through the legislative branch warmed up; is that right? State. At first the underlying language and made its way through the debates, Ms. CANTWELL. That is correct. was actually blackmail: We are going it was debated in the Energy and Nat- Mr. REID. And you, as a matter of to make this change and nuclear waste ural Resources Committee and EPW courtesy, will allow Senators HOLLINGS is going to be reclassified, and if you Committee. As the parliamentarian re- and MURRAY and anyone on the major- are going to agree with us, we will give ferred to those committees, I am sure ity side to speak and you will be back you some money, and if you don’t that the SASC, because of its nature of at a later time for another round or agree with us, we are not cleaning up the appropriated funds, has some re- two; is that correct? your waste. That is blackmail. That is sponsibilities. But I do not think that Ms. CANTWELL. That is correct. I what the current language in the DOD the SASC is the committee of jurisdic- will give my colleagues from Wash- authorizing bill is. It is blackmail. tion for changing the Nuclear Waste ington and South Carolina an oppor- Now, after my colleagues have seen Policy Act. I do not think that is the tunity to join in this debate and par- what ludicrous language that is, Sen- primary responsibility of that com- ticipate because I think it is very im- ator GRAHAM wants to offer an amend- mittee. portant that this issue receive the full ment that will not tie up the funds. So, I don’t know. I say to the Sen- attention of Members. As I said at the But we still remain with the under- ator, the chairman of the Senate beginning of this discussion, I do not lying problem, which is the Depart- Armed Services Committee, I have a believe this is an issue—even though a ment of Energy is trying to reclassify great deal of respect for his willingness lot of my colleagues would like to clas- highly radioactive waste as low-level at all times in the most difficult of sit- sify it as an issue that only affects ancillary waste and say it can be uations to try to have consideration of Washington State, South Carolina, or grouted, that is that cement and sand issues be as fair and balanced as pos- Idaho perhaps with some impact on Or- can be poured on it and somehow, leav- sible, and to give Members their oppor- egon and maybe Georgia, or New York ing incidental amount of tank waste is tunity. I am happy to continue to disin its commercial facility. I have never a sufficient way to clean up tanks. cuss with him the nuances of this par- thought of this nuclear waste issue as a I will continue to fight on this issue ticular issue. But I have a feeling that geographic-specific debate. until Members understand the signifi- if we had this Nuclear Waste Policy Our responsibility as a body is to cant policy change that is before this Act before us today and we asked the make sure nuclear waste cleanup hap- body. Parliamentarian—this change that is pens in a process that the science de- I ask unanimous consent after the re- in your bill, under a separate act, termines will not be with harm to hu- marks of Senator INHOFE that Senators under a separate stand-alone bill—it mans or to the environment. We now MURRAY, ALLARD, and HOLLINGS be rec- would not be referred to that com- have a proposal before us that science ognized, and that I immediately be rec- mittee. It would be referred jointly to says will be harmful, that is not based ognized after them.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5919 Mr. REID. I object. having some votes tonight. I believe I and I will have more to say on this sub- The PRESIDING OFFICER. Objec- need to work with leadership on this ject as we continue to debate the DOD tion is heard. The Senator from Wash- side, if Senator REID will work with authorizing bill and continue to debate ington has the floor. leadership on his side, to determine if whether the Graham amendment is suf- Ms. CANTWELL. I want to accommo- we can work this out. The Senator ficient in disposing of the problem that date the Senator from Nevada. I was from Washington can finish, and I can has now been created in the underlying proposing to accommodate and trade call on the Senator from Oklahoma. bill in overriding 30 years of law and off recognition of the four Members Maybe we can sit down and work out a science about how this country should who are present on the floor? time agreement. clean up nuclear waste. I don’t believe Does the Senator have a question? Mr. REID. Mr. President, if the Sen- anybody in America wants to do it on Mr. REID. When the Senator yields ator will yield—— the cheap. We need to give the Amer- the floor, I will speak. Mr. ALLARD. I yield. ican public the certainty that this Ms. CANTWELL. The Senator from Mr. REID. The Senator from Wash- body will not propose major policy Nevada—I am happy to yield the floor ington has the floor. changes without hearings, without de- to the Senator from Nevada. Let me say this: Everyone should un- bate, without committees of jurisdic- Mr. REID. Pardon me? derstand that there is not going to be a tion having oversight of this policy The PRESIDING OFFICER. Is the vote on this amendment tonight. Ev- proposal that is in the Defense author- Senator yielding the floor? eryone should understand that. There ization bill. Several Senators addressed the is going to be no vote on the pending I yield the floor. Chair. amendment tonight. I told people that Mr. REID. Mr. President, I suggest Ms. CANTWELL. Does the Senator 5 hours ago. No one believed me. There the absence of a quorum. from Nevada have a question? is not going to be a vote on the Gra- The PRESIDING OFFICER. The Mr. REID. Mr. President, I yield to ham amendment tonight. clerk will call the roll. the Chair. I have a question on that Mr. ALLARD. Nobody is calling for a The assistant legislative clerk pro- statement. The Senator from Wash- vote on this amendment tonight, but ceeded to call the roll. ington has a right to speak, but we are there might be other votes. Mr. REID. Mr. President, I ask unan- not going to set a long list of speakers Mr. REID. We will not agree to set imous consent that the order for the here at random, what speakers are this one side. If the Senator from quorum call be rescinded. going to speak. I think what we are South Carolina wishes to withdraw his The PRESIDING OFFICER. Without going to do, we have a number of amendment and set some orderly pro- objection, it is so ordered. speakers on the floor, Senators INHOFE, cedure to take it up when we get back Mr. REID. Mr. President, we are try- HOLLINGS, ALLARD, MURRAY—people after the Memorial Day break, we are ing to work out, subject to the ap- who have been here for a long period of in agreement. But we are not going to proval of the majority leader, to allow time. agree to set this aside to go to another Senator INHOFE to speak for 15 minutes It appears to me we are not going to amendment. and Senator HOLLINGS for 45 minutes. have a vote on this in the near future. Ms. CANTWELL. Mr. President, this They have waited a long time. Senator I suggest what we do is enter into Senator is happy to yield the floor to ALLARD, being the gentleman he is, did agreement for the next several however my colleague to discuss this issue. I want to talk about the subsequent long it takes. We have people who want want to make it clear that after 30 votes; there are a couple of judges who to speak. We can go forward and who- years of standard policy, they are not need votes. We have 25 to do before the ever gets the jump ball, have people be willing to just have a few hours of de- end of June, so we have a lot of voting recognized whenever they get the floor. bate and then vote on this significant a to do. Then, of course, everyone should Senator HOLLINGS has said Senator change. The underlying Graham understand that we will be right back INHOFE has been here longer than he amendment does not fix the underlying on the Defense bill following those has. Senator INHOFE could be recog- DOD committee-passed authorization votes. nized for whatever time he feels appro- language that allows the Department We appreciate the courtesy of the priate. I would like to get some idea of of Energy to reclassify waste. Senator from Oklahoma for being pa- what the time should be. Then, Senator That is the key issue at hand. We do tient and the Senator from South Caro- HOLLINGS, I think that would be the not want to leave this bill with this re- lina. The order has not been entered, best way to go. classification of highly radioactive but that is what we will order. It would But in the meantime, it must be waste to an amendment on spent fuel be appropriate for the Senator from under some agreement, whoever gets storage tanks to then be grouted over. Oklahoma to start his speech. the floor. We need to have the attention of this Members should understand that we Mr. ALLARD. Will the Senator from body, my colleagues who are members will have a couple of votes around 5:30. Nevada yield? of the various committees I mentioned Mr. ALLARD. I yield 15 minutes to Mr. REID. I am happy to. and my colleagues from those States the Senator from Oklahoma. The PRESIDING OFFICER. The Sen- directly affected, although I said it is a Mr. INHOFE. I ask the manager if I ator from Washington has the floor. policy everybody should be discussing, could have 20 minutes, but I will prob- Ms. CANTWELL. The Senator from and the public needs to have an idea ably not take that long. I am saving Washington is happy to entertain a and an opportunity to understand that the best for last and I don’t want to question that would allow the various this is a major policy proposal which is miss it. Members who are here—— being proposed in this underlying bill. Mr. ALLARD. I amend that and ask Mr. REID. The Senator from Wash- I would have preferred that the Gra- unanimous consent that the Senator ington has to understand—she has the ham amendment not be brought up from Oklahoma be allowed to speak for floor, and if she wants to keep talking, today, not to this particular issue of 20 minutes. let her keep talking. When she finishes, the DOD bill being discussed. We are The PRESIDING OFFICER. The Sen- we will be happy to—— still talking. We hoped we might able ator from Oklahoma is recognized for Mr. ALLARD. If the Senator from to work something out and save our 20 minutes. Washington will yield, I would like to colleagues the time and attention of Mr. INHOFE. Mr. President, I will pose a plan of how we can go through studying a nuclear waste policy pro- clarify a couple of things that were this. I suggest that maybe we can sit posal and what level of radioactivity said by the distinguished Senator from down with leadership and work out could be sufficiently removed from Washington that I am sure she believes some time for debate. I know Senator tanks and what couldn’t be. But if my are true but need to be elaborated GRAHAM on this side of the Senate floor colleagues want to continue to pursue upon. First, characterizing the consid- would like to wrap up this debate. the subject, we are going to continue eration of going back to the old policy Maybe we can get some time limits to to pursue and discuss this issue. as something that happened in the give everybody an opportunity to With that, I know various Members middle of the night, something that speak. I know there is some interest in of both sides of the aisle are waiting, happened in the dark, something that

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5920 CONGRESSIONAL RECORD — SENATE May 20, 2004 happened in a less than honest way is this effort and the need to clean up the Energy constructs the facility nec- not at all accurate. sites where there is waste from the re- essary to prepare waste for disposal as I suggest two things. First, I chaired processing of spent nuclear fuel. The low-level or transuranic waste and pre- the Subcommittee on Clean Air, Wet- creation of this waste was a necessary pare the waste for disposal and then lands, Private Property and Nuclear result of the chemical processes needed finds out after the fact that it lacked Safety of the Environment and Public to make defense nuclear material. We the legal authority to classify the Works Committee in 1998 and 1999. Dur- all understand that. waste in this manner, hundreds of mil- ing that time, of course, we had juris- Last summer, this very important lions of dollars of the taxpayers’ money diction over the Nuclear Regulatory cleanup effort, which is the single larg- would already have been wasted and Commission. During that time, they est ongoing environmental risk reduc- years of cleanup work lost. The Depart- had countless hearings. They had com- tion project for the Department of En- ment may have actually made it hard- ment periods. They talked about this ergy, took a crushing blow when the er to put the waste in the form needed out in the open, with people given an district court issued a ruling that cre- to dispose of it at Yucca Mountain. opportunity to be heard. I happened to ated significantly illegal uncertainties The fundamental root cause of the di- be chairing the committee that had and enormous problems for the Depart- lemma that faces our Nation today is oversight at the time. I remember that ment’s tank waste cleanup at the Sa- the ambiguity presented by the Nu- very well. vannah River site, the West Valley, the clear Waste Policy Act’s definition of Second, I suggest this was discussed Hanford site, and the Idaho National high-level waste and that, if left un- in the Senate Armed Services Com- Engineer Environmental Laboratory. classified, is producing this techno- mittee. It certainly was not something Unless these legal uncertainties are re- logically irrational result without en- that was done in any way that was less solved, the only path the Department vironmental benefit that, in fact, in- than totally honest and totally done in of Energy could in theory pursue that creases health and safety risks. the daylight. By suggesting that Sen- does have the necessary legal certainty It is up to this committee and this ator JOE LIEBERMAN and Senator JACK would be to involve sending all the Congress to resolve ambiguity in order REED and the other Members on this waste in tanks and the tanks them- for the cleanup of the sites which side of the issue did something that selves to Yucca Mountain no matter played such a key role in the national was not out in the open, I don’t think how long or short lived is the radioac- security of our Nation. The language is quite fair. tivity they contain. before the Senate clarifies the ambi- We had a hearing this morning with This dramatic change in course guity, and I urge adoption of this lan- the Nuclear Regulatory Commission. It would increase the costs of the cleanup guage. is an oversight hearing we have had itself in terms of human lives sevenfold What had happened on this, back in ever since 1998. That is when, in the and also delay completion of simply the time it was considered in SAS NRC, I believe we saw a major change. emptying the tanks and treating the Committee—the Senate Armed Serv- They have done a good job. The NRC waste there by four decades, thereby ices Committee—was that it was an says we should manage waste based on further substantially increasing the amendment to actually go back and do the risk it poses, not how it is defined. risk, as the NRC pointed out, to the it as it had been done before, to do it in The Department of Energy was at- public health and safety during the the best way, as determined by the tempting to pursue this very policy time period by leaving the waste in multitude of hearings that were con- when it was stopped in its tracks. What tanks for that much longer. It would ducted by the Nuclear Regulatory stopped it? Several of my colleagues al- also increase the cost of simply Commission and which were conducted ready mentioned a lawsuit was brought emptying and treating the tank waste, during the time I chaired the oversight against the DOE by the Natural Re- according to the DOE estimates, by an committee. So we were there. We knew sources Defense Council. This is the al- additional $86 billion, only $1 billion it was taking place. legedly charitable organization that less than last year’s supplemental ap- The thing that I guess bothers me the uses a substantial amount of taxpayer propriation for the Iraq war, for ap- most—I see the ranking minority mem- dollars in the form of discretionary proximately a total cost of $138 billion. ber of the Senate Armed Services Com- grants to achieve its goals. We are talking about something real- mittee on the Senate floor. We acted Three weeks ago I spoke in the Sen- ly big. The estimates for delay and the very responsibly. This was not a par- ate about the spurious and misleading additional costs do not take into ac- tisan issue. This was a bipartisan issue. advertisement run by the NRDC. This count the very complex logistics of To infer in any way that things were organization places a higher priority transporting and disposing of all the done in the dark of night or in any way on imposing ridiculously stringent en- additional waste at Yucca Mountain or inappropriately is to say that I and vironmental standards than on essen- the complex logistics of preparing for several others—certainly the chairman tial elements of national security. disposal, transporting, and disposing of of the committee; certainly Senator They have proven this many times in the tanks themselves. Keep in mind, it JOE LIEBERMAN; certainly Senator the past by filing lawsuits to limit the is not just what is in the tanks. The JACK REED, who supported this effort Navy readiness exercises and otherwise tanks themselves would have to go and supported the Senator from South hampering our military. Now the there and be disposed of at the Yucca Carolina—were acting inappropriately. NRDC has hamstrung the Department Mountain facility. These would also I do not think that is realistic. of Energy in the faithful execution of add additional decades and tens, if not By the way, it has been said several its responsibilities. hundreds, of billions of dollars to the times that there is some doubt as to This amendment allows the DOE to cleanup cost. what the NRC’s position is on this pursue the best plan to dispose of this Furthermore, under this scenario, issue. I will read the last paragraph of nuclear material. That plan saves our the number of canisters of waste that a letter that was sent to me, on May 18, taxpayers money. It shortens the would be transported to Yucca Moun- as chairman of the Environment and amount of time the waste remains in tain would increase from 20,000 can- Public Works Committee. This last the tanks. It is a safe way to do it. It isters to approximately 200,000 can- paragraph says: is a well-thought-out way of doing it isters. It is our understanding that some oppo- and one that has been the subject of a I know there are a lot of members in nents of DOE’s proposed plans believe that lot of daylight. It is merely going back the Senate concerned about the trans- the tanks and the waste residuals should be to a policy that has worked for a long port of waste to Yucca Mountain. That disposed of as high-level waste in a geologic period of time. would increase it tenfold. Some have repository. While either approach could po- We know the background. Sometimes asked, why not just authorize and ap- tentially be implemented within NRC regu- it is necessary to repeat it. During the propriate $350 million needed for the latory requirements, we note that removal of the tanks, packaging of the tanks and re- cold war, the national security of the cleanup activities in fiscal year 2005 siduals for transport and disposal, and dis- United States necessitated the building and force the Department of Energy to posal of the waste at a geologic repository, if of nuclear weapons. Now, 50 years continue its work? This is not a re- feasible, would incur significant additional later, we are faced with the legacy of sponsible path. If the Department of worker exposures—

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5921 That is human lives. We are exposing the performance objectives in NRC’s regula- mind, this was years in the making. individuals. tion 10 CFR Part 61 (Licensing Requirements Six years ago we started hearings on and transportation exposures— for Land Disposal of Radioactive Waste), how to properly dispose of this, and the Subpart C, are satisfied. In all cases, the conclusions they came to were unani- The transportation exposures we NRC staff found that DOE’s proposed meth- have talked about on this floor many, odology and conclusions met the appropriate mous. many times— WIR criteria and therefore met the perform- With that, Mr. President, I yield the at very large financial costs. ance objectives and dose limits that would floor. Mr. REID. Mr. President, I ask the You might conclude that, at this apply to near-surface low-level waste disposal and would protect public health and Senator, are we in a position now to do time, with all the terrorist threats safety. It should be noted that the Commis- anything on this request we had? around, these could become prime tar- sion did not review all of DOE’s actions with Mr. ALLARD. No. We are still hear- gets while being transported. Still regard to WIR at those sites, and that the ing. Senator INHOFE has finished his quoting the letter: NRC conclusions applied only to those ac- statement. I would suggest we recog- Whereas, if DOE’s proposed plans meet ap- tions that the NRC reviewed. It should be noted that the Commission in its ‘‘Decom- nize the Senator from South Carolina propriate criteria, such as those used in for 40 minutes. NRC’s previous reviews, then the NRC be- missioning Criteria for the West Valley lieves that public health and safety can be Demonstration Project (M–32) at the West The PRESIDING OFFICER. The Sen- maintained while avoiding unnecessary addi- Valley Site; Final Policy Statement’’ (67 FR ator from South Carolina is recog- tional exposures and risks associated with 5003, February 1, 2002), established WIR cri- nized— removal and transport of the waste and un- teria for that site identical to those used in Mr. REID. No. The Senator is recog- necessary additional expenditures of Federal our reviews of the three DOE sites. nized for whatever time he wants. He funds. It is our understanding that some oppo- has the floor. nents of DOE’s proposed plans believe that I hope this letter satisfactorily addresses The PRESIDING OFFICER (Mr. COR- the tanks and the waste residuals should be your questions. NYN). The Senator from South Caro- Mr. President, I ask unanimous con- disposed of as high-level waste in a geologic repository. While either approach could po- lina. sent that the entire letter from the tentially be implemented within NRC regu- SETTING THE RECORD STRAIGHT NRC to me dated May 18 be printed in latory requirements, we note that removal of Mr. HOLLINGS. Mr. President, I the RECORD. the tanks, packaging of the tanks and re- thank my distinguished colleagues. I There being no objection, the mate- siduals for transport and disposal, and dis- have, this afternoon, the opportunity rial was ordered to be printed in the posal of the waste at a geologic repository, if to respond to being charged as anti-Se- RECORD, as follows: feasible, would incur significant additional worker exposures and transportation expo- mitic when I proclaimed the policy of NUCLEAR REGULATORY COMMISSION, sures at very large financial costs. Whereas, President Bush in the Mideast as not Washington, DC, May 18, 2004. if DOE’s proposed plans meet appropriate for Iraq or really for democracy in the Hon. JAMES M. INHOFE, criteria, such as those used in NRC’s pre- sense that he is worried about Saddam Chairman, Committee on Environment and Pub- vious reviews, then the NRC believes that lic Works, U.S. Senate, Washington, DC. and democracy. If he were worried public health and safety can be maintained DEAR MR. CHAIRMAN: This letter responds about democracy in the Mideast, as we to your request of May 18, 2004, for the U.S. while avoiding unnecessary additional expo- wanted to spread it as a policy, we Nuclear Regulatory Commission’s (NRC’s) sures and risks associated with removal and would have invaded Lebanon, which is transport of the waste and unnecessary addi- views on waste-incident-to-reprocessing half a democracy and has terrorism (WIR). Specifically, you requested NRC’s tional expenditures of Federal funds. I hope this letter satisfactorily addresses and terrorists who have been problems thoughts on: (1) the U.S. Department of En- your questions. to the interests of Israel and the ergy’s (DOE’s) plan to grout in place the re- Sincerely, maining residues left in the tanks at the Sa- United States. NILS J. DIAZ. vannah River Site (SRS), the Hanford site, It is very interesting that on page and the Idaho National Engineering and En- Mr. INHOFE. We have a lot of com- 231, Richard Clarke, in his book vironmental Laboratory (INEEL); and (2) the missions and a lot of organizations in ‘‘Against All Enemies,’’ cites the fact risks to human health and the environment the committee that I chair. We have that there had not been any terrorism, by following DOE’s plan or the Natural Re- some 17 Departments for which we any evidence or intelligence of sources Defense Council’ (NRDC’s) plan. The have oversight and we deal with on a Saddam’s terrorism against the United concept underlying WIR is that wastes can daily basis. When the Nuclear Regu- States from 1993 to 2003. He says that be managed based on their risk to human latory Commission was originally in the presence of Paul Wolfowitz. He health and the environment, rather than the origin of the wastes. For wastes that origi- formed, it was to have the expertise says that in the presence of John nate in reprocessing of nuclear fuel, such as and the knowledge as to what is going McLaughlin of the CIA. In fact, he the tank residuals at the DOE sites, some to assure the most safety for the public says: Isn’t that right, John? And John are highly radioactive and need to be treated in the cheapest way you can get things says: That is exactly right. and disposed of as high-level radioactive done. They have done a good job. We The reason was when they made the waste. Others do not pose the same risk to have a lot of organizations such as this attempt on President Bush, Senior, human health and the environment, and do throughout Government. We have back in 1993, President Clinton ordered not need to be disposed of as high-level waste CASAC, the Clean Air Scientific Advi- a missile strike on Saddam in down- in order to manage the risks that they pose. At the outset, it must be understood that sory Committee. We look to them be- town Baghdad, the intelligence head- the NRC does not have regulatory authority cause they have expertise. We look to quarters, and it went right straight or jurisdiction over SRS, Hanford, or INEEL. the NRC because they have expertise. down the middle of the headquarters. It In the past, DOE has requested NRC review I do not want to imply that any of was after hours so not a big kill—but of some of its WIR determinations and sup- the Members here would have nec- Saddam got the message: You monkey porting analysis. The NRC entered into reim- essarily less expertise than the NRC, around with the United States, a mis- bursable agreements to perform these re- but I suspect that is the case. So we sile will land on your head. views, which were provided as advice and did rely on that expertise. Here we have So, in essence, the equation had not constitute regulatory approval. NRC performed comprehensive and independent WIR the Department of Energy with all of changed in the Saddam-Iraq/Mideast reviews for Hanford in 1997, SRS in 2000, and its experts saying: This is the safe way concerns whereby Saddam was more INEEL in 2002 and 2003. These reviews in- to do it. This is the cheapest way to do worried about any threat of the United volved both waste removed from tanks, and it. And we have the NRC, which is States against him than the United waste residuals remaining in the tanks for charged with the responsibility of pub- States was worried about a threat by grouting and closure. NRC assessed whether lic safety, saying: This is the best way Saddam against us. DOE’s determinations had sound technical to do it. I want to read an article that ap- assumptions, analysis, and conclusions with So I believe, when the time comes, peared in the Post and Courier in regard to specific WIR criteria. These cri- we need to look at this rationally and Charleston on May 6; thereafter, I teria are: (1) the waste has been processed to remove key radionuclides to the maximum not try to make disparaging remarks think in the State newspaper in Colum- extent that is technically and economically about some of the members of the bia a couple days later; and in the practical, and (2) the waste is to be managed Armed Services Committee in our con- Greenville News—all three major news- so that safety requirements comparable to sideration of this amendment. Keep in papers in South Carolina. You will find

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5922 CONGRESSIONAL RECORD — SENATE May 20, 2004 that there is no anti-Semitic reference the United States and a missile lands on his let me go, diverting for a minute, right whatsoever in it. head. Of course there were no weapons of to the Project For The New American The reason I emphasize that upfront mass destruction. Israel’s intelligence Century. I have a letter that was writ- is for the simple reason that you can- Mossad knows what’s going on in Iraq. They are the best. They have to know. ten on May 29, 1998, to Newt Gingrich, not put an op-ed in my hometown Israel’s survival depends on knowing. the Speaker, TRENT LOTT, the Senate paper that is anti-Semitic. We have a Israel long since would have taken us to the majority leader. These are the gentle- very, very proud Jewish community in weapons of mass destruction . . . men who said this: Charleston. In fact, it is where reform Let me divert for a second there. I We would use U.S. and allied military Judaism began. The earliest temple, was here when Israel attacked the nu- power to provide protection for liberating Kadosh Beth Elohim, is on Hasell clear facility in Baghdad during the areas in northern and southern Iraq, and we Street. I have spoken there several 1980s. In all candor, when President should establish and maintain a strong U.S. times. I had the pleasure of having that Bush, on October 7, 2002, said, after all military presence in the region and be pre- particular temple put on the National that buildup by Cheney, Wolfowitz, pared to use that force to protect our vital Register. This particular Senator, with interests in the Gulf and, if necessary, to Rumsfeld and everybody else, that fac- help remove Saddam from power. over 50 years now of public service, has ing clear evidence of peril, we cannot received a strong Jewish vote. wait until the smoking gun is a mush- And that is signed by—and I want ev- Let me emphasize another thing be- room cloud, I thought we were attack- erybody to remember these names—El- cause the papers are piling on and ing for Israel. I thought that they knew liot Abrams, William J. Bennett, Jef- bringing up again a little difference of about some kind of nuclear develop- frey Bergner, John R. Bolton, Paula opinion I had on the Senate floor with ment there. And rather than getting Dobriansky, Francis Fukuyama, Rob- Senator Metzenbaum. It was not really them in further trouble with the ert Kagan, Zalmay Khalilzad, William a difference. What had happened was United Nations and the Arab world, Kristol, Richard Perle, Peter Rodman, we were discussing a matter, and we re- that its best friend, the United States, Donald Rumsfeld, William Schneider, ferred to each’s religion in order to would knock it out for them. That is Jr., Vin Weber, Paul Wolfowitz, James make sure there would not be any mis- why I voted for it. I got misled. Our at- Woolsey, Robert B. Zoellick. There is a understanding or tempers flaring. The tack on Iraq, the invasion of Iraq is a studied school of thought of the best distinguished Senator from North bad mistake. I will get into that later. way to secure Israel. We have been Carolina, Mr. Helms, referred to him- But let me read even further: going for years back and forth with self as the Baptist lay leader, Senator . . . if there were any [weapons of mass de- every particular administration, you Danforth as the Episcopal priest. I re- struction] or if they had been removed. With can see where we are now. ferred to myself as the Lutheran Sen- Iraq no threat, why invade a sovereign coun- But in any event, the better way to ator. And when Senator Metzenbaum try? The answer: President Bush’s policy to do it is go right in and establish our came on the floor, I referred to him as secure Israel. predominance in Iraq and then, as they Led by Wolfowitz, Richard Perle and the Senator from B’nai B’rith, and he say, and I have different articles here I Charles Krauthammer, for years there had could refer to, next is Iran and then took exception. He thought it was an been a domino school of thought that the aspersion. I told him: Wait a minute, I way to guarantee Israel’s security is to Syria. And it is the domino theory, and will gladly identify myself as the Sen- spread democracy in the area. Wolfowitz they genuinely believe it. I differ. I ator from B’nai B’rith. I did not mean wrote: ‘‘The United States may not be able think, frankly, we have caused more to hurt his feelings. I apologized at to lead countries through the door of democ- terrorism than we have gotten rid of. that time but not for the legitimacy racy, but where that door is locked shut by That is my Israel policy. You can’t and the circumstances of the particular a totalitarian deadbolt, American power may have an Israel policy other than what be the only way to open it up.’’ reference. AIPAC gives you around here. I have Now here we go again, some years Namely, invasion. That is Wolfowitz followed them mostly in the main, but later. The Senator from Virginia, Mr. talking. I have also resisted signing certain let- GEORGE ALLEN, and I are good friends. And on another occasion: Iraq as ‘‘the first ters from time to time, to give the poor Maybe after this particular thing he Arab democracy . . . would cast a very large President a chance. shadow, starting with Syria and Iran but I can tell you no President takes of- might feel different, but I know his across the whole Arab world.’’ Three weeks role as the chairman of the campaign before the invasion, President Bush stated: fice—I don’t care whether it is a Re- committee. And so I have an article ‘‘A new regime in Iraq would serve as a dra- publican or a Democrat—that all of a here where Senator ALLEN denounces matic and inspiring example for freedom for sudden AIPAC will tell him exactly Senator HOLLINGS’ latest political at- other nations in the region.’’ what the policy is, and Senators and tack, Senator HOLLINGS’ antisemitic, I referred to those three gentlemen members of Congress ought to sign let- political conspiracy statement. Let me because I know them well. They are ters. I read those carefully and I have read the statement here from the May brilliant. I have been for years associ- joined in most of them. On some I have 6 Post and Courier, and you be the ated one way or the other with each of held back. I have my own idea and my judge: them. I read Charles Krauthammer. I own policy. I have stated it categori- With 760 dead in Iraq, over 3,000 maimed wish I could write like he can. With re- cally. for life—home folks continue to argue why spect to Richard Perle, he was sort of The way to really get peace is not we are in Iraq—and how to get out. our authority in the cold war, best militarily. You cannot kill an idea Now everyone knows what was not the friend of Scoop Jackson. That is how I militarily. I was delighted the other cause. Even President Bush acknowledges day when General Myers appeared be- that Saddam Hussein had nothing to do with met him 38 years ago almost. I followed 9/11. Listing the 45 countries where al-Qaida him and I followed his advice, and that fore our Appropriations Subcommittee was operating on September 11 . . . the State is in large measure how we prevailed in on Defense and he said that we will not Department did not list Iraq. the cold war. So I have the highest re- win militarily in Iraq. He didn’t say we They listed 45 countries and at that spect for Richard Perle. are going to get defeated militarily but particular date on September 11, 2001, And, of course, the other gentleman, that you can’t win militarily in Iraq. they did not even list Iraq. Paul Wolfowitz, Paul Wolfowitz, I met Mr. ALLARD. Will the Senator yield? Richard Clarke, in ‘‘Against All Enemies,’’ him out in Indonesia when he was Am- Mr. HOLLINGS. Not until I complete tells how the United States had not received bassador. He came back. We were good this thought. Time is running out on any threat of terrorism for 10 years from friends. He was looking around for a me. Saddam at the time of our invasion. position, and I know I offered him The papers are the ones that pointed On page 231, John McLaughlin of the CIA one—in fact, we might go to the out Wolfowitz, Pearle, and Charles verifies this to Deputy Defense Secretary records and find temporarily he might Krauthammer were of the Jewish faith. Paul Wolfowitz. In 1993, President Clinton re- They are the ones who brought all this sponded to Saddam’s attempt on the life of have been on my payroll for a few President George H.W. Bush by putting a weeks. But I have always had the high- Semitism in there. I can tell you that missile down on Saddam’s intelligence head- est regard for Paul Wolfowitz. right now, I didn’t have that in mind. I quarters in Baghdad. Not a big kill, but Sad- That is why I referred to him. I had had my friends in mind and I followed dam got the message—monkey around with their sayings and everything else. But them. We had this in the late 1990s

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5923 under President Clinton, when we he loves campaigning. You cannot get Let me go back to this particular col- passed a resolution that we ought to him in the White House or catch him umn: have Saddam removed from power, there, hardly. He doesn’t work on these But George Bush, as stated by former have a regime change. I was wondering problems at all. Treasury Secretary Paul O’Neill and others, how it went. I had to find my old file— I have worked with all of the Presi- started laying the groundwork to invade Iraq on this Project For The New American dents. I know the leadership goes to days before the Inauguration. Century. the White House and tries to work with There is no question, he got a brief- Now, going back to my article: him. He is interested in one thing, and ing. That was the first thing he wanted ‘‘every President since 1947 has made a that is to be out campaigning. So he out of former Secretary of Defense Bill futile attempt to help Israel negotiate had one thought in mind, and that was Cohen. Then the nominee, about to peace. But no leadership has surfaced reelection. take the oath of office as President of amongst the Palestinians that can Again, let me read: Bush thought tax the United States, wanted to be briefed make a binding agreement. President cuts would hold his crowd together and on Iraq. They had this policy in mind Bush realized his chances at negotia- that spreading democracy in the Mid- coming to town. Mr. President, 9/11 had tion were no better. He came to office east to secure Israel would take the nothing to do with it, and we all know imbued with one thought.’’ Jewish vote from the Democrats. it now. We have to understand it be- Mr. ALLARD. I wonder if the Senator Is there anything wrong with refer- cause that is the only way really to will yield, preserving his time, for a ring to the Jewish vote? Good gosh, help Israel and get us out of the soup. unanimous consent request to move every 1 of us of the 100, with pollsters Everybody is worrying about Iraq. We forward with the judge vote we have at and all, refer to the Jewish vote. That better worry about Israel because we 5:40. is not anti-Semitic. It is appreciating certainly have put her in terrible jeop- Mr. HOLLINGS. Without losing my them. We campaigned for it. ardy with this particular initiative. right to the floor, I will yield. I just read about President Bush’s ap- Without any Iraq connection to 9/11, within UNANIMOUS CONSENT AGREEMENT—EXECUTIVE pearance before the AIPAC. He con- weeks President Bush had the Pentagon out- CALENDAR firmed his support of the Jewish vote, lining a plan to invade Iraq. He was deter- Mr. ALLARD. Mr. President, as in referring to adopting Ariel Sharon’s mined. President Bush thought taking Iraq executive session, I ask unanimous policy, and the dickens with the 1967 would be easy. Wolfowitz said it would take consent that at 5:30 today the Senate borders, the heck with negotiating the only 7 days. Vice President Cheney believed return of refugees, the heck with the that we would be greeted as liberators, but proceed to executive session to con- Cheney’s man, Chalabi, made a mess of de- sider the following nominations en bloc settlements he had objected to origi- Baathification of Iraq by dismissing Repub- on today’s Executive Calendar: No. 556, nally. They had those borders, Resolu- lican Guard leadership and Sunni leaders the nomination of Raymond Gruender tion No. 242—no, no, President Bush who soon joined with the insurgents. to be U.S. Circuit Judge for the Eighth said: I am going along with Sharon, Worst of all, we tried to secure Iraq with Circuit; and Calendar No. 557, the nom- and he was going to get that and he got too few troops. In 1966 in South Vietnam, ination of Franklin S. Van Antwerpen, the wonderful reception he got with with a population of 16 million, General Wil- to be U.S. Circuit Judge for the Third the Jewish vote. There is nothing like liam C. Westmoreland, with 535,000 U.S. politicizing or a conspiracy, as my troops, was still asking for more troops. In Circuit. Iraq, with a population of 25 million, General I further ask unanimous consent that friend from Virginia, Senator ALLEN, John Abizaid, with only 135,000 troops, can following 10 minutes of debate, equally says—that it is an anti-Semitic, polit- barely secure the troops, much less the coun- divided between the chairman and ical, conspiracy statement. try. If the troops are there to fight, there are ranking member of the Judiciary Com- That is not a conspiracy. That is the too few. If they are there to die, there are mittee, or their designees, that the policy. I didn’t like to keep it a secret, too many. To secure Iraq we need more Senate proceed to consecutive votes on maybe; but I can tell you now, I will troops, at least 100,000 more. The only way to the confirmation of the nominations, challenge any 1 of the other 99 Sen- get the United Nations back in Iraq is to ators to tell us why we are in Iraq, make the country secure. Once back, the with no further intervening action or French, Germans, and others will join with debate; further, that following the other than what this policy is here. It the U.N. to take over. vote, the President be immediately nois an adopted policy, a domino theory With President Bush’s domino policy in tified of the Senate’s action, and the of The Project For The New American the Mideast gone awry, he can’t keep shout- Senate then return to legislative ses- Century. ing ‘‘Terrorism war.’’ Terrorism is a method, sion. Everybody knows it because we want not a war. We don’t call the Crimean war, The PRESIDING OFFICER. Is there to secure our friend, Israel. If we can with the charge of the light brigade, the cav- objection? get in there and take it in 7 days, as alry war, or World War II the blitzkrieg war. Mr. REID. Mr. President, I ask that Paul Wolfowitz says, then we would get There is terrorism in Northern Ireland, there rid of Saddam, and when we got rid of is terrorism in India, and in Pakistan. In the the Senator modify his request so that Mideast, terrorism is a separate problem, to the statement of the Senator from Saddam, now all they can do is fall be defeated by diplomacy and negotiation, South Carolina will stop at 5:40, and back and say: Aren’t you getting rid of not militarily. the rest of the unanimous consent kick Saddam? Here, might does not make right. Right in at 5:40, rather than 5:30, so we will be Let me get to that point. What hap- makes might. Acting militarily we have cre- voting at 5:50. pens is, they say he is a monster. We ated more terrorism than we have elimi- Mr. ALLARD. I am willing to modify continued to give him aid after he nated. it. gassed his own people and everything The title of this article is ‘‘Bush’s The PRESIDING OFFICER. Without else of that kind. George Herbert Walk- failed Mideast policy is creating more objection, it is so ordered. er Bush said in his book All The Best terrorism, ‘‘ and, I could add, jeopard- Mr. HOLLINGS. Mr. President, let in 1999, never commit American GIs izing the security of Israel. me again read from my article: into an unwinnable urban guerrilla war They say: He talks like a big fan of President Bush came to office im- and lose the support of the Arab world, Israel. I am. I have a 38-year track bued with one thought: reelection. lose their friendship and support. That record. I will never forget some 34 I say that advisedly. I have been up is a general rephrasing of it. years ago meeting with David Ben- here with eight Presidents. We have The point is, my authority is the Gurion. He talked about little Israel, had support of all eight Presidents. President’s daddy. I want everybody to less than 3 million at that time in a sea Yes, I supported the President on this know that. I don’t apologize for this of 100 million. Iraq resolution, but I was misled. There column. I want them to apologize to Let’s say Israel has 5 million people weren’t any weapons, or any terrorism, me for talking about anti-Semitism. there now, but there are 150 million or al-Qaida. This is the reason we went They are not getting by with it. I will Muslims surrounding it. If you punch to war. He had one thought in mind, come down here every day—I have the particular buzzer I did with and that was reelection. I say that nothing else to do—and we will talk Yitzhak Rabin 1 day down on the Negev about President Bush. He is a delight- about it and find out what the policy to scramble the air force, I think it was ful fella, a wonderful campaigner, but is. 21 seconds they were up in the air, and

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5924 CONGRESSIONAL RECORD — SENATE May 20, 2004 in a minute’s time, they were outside he cautioned if you can settle the They are coming in there with U.S. over Jordan. Israel-Palestine question, terrorism equipment, U.S. gun helicopters, U.S. Militarily, Israel is a veritable air- will disappear around the world. tanks that are bulldozing. That is our craft carrier. You can hardly fly and Then we came in on a Friday evening policy. That is the reason for 9/11 and you are out of the country, and every- to make a little courtesy call with the Osama. He said, I do not like American body has to understand that. You can- French. The distinguished Senator troops in Saudi Arabia, get the infidel not play the numbers game Sharon from Virginia with Lafayette—and I out. That is why they went right into plays. He thinks he can do it mili- have slept in Lafayette’s bed over there that thing. Where do you think we get tarily. in Richmond, VA, and I helped with all this talk about hate America? I do I want to remind you, it was in that that particular thing because I believe not buy that stuff. I have traveled the 6-day war—the book is ‘‘Six Days of and remember the French help. I will world. They love Americans. War’’ by Michael Oren. Look on page never forget—everybody is going to the Recently we met with the Ambas- 151, and Major Ariel Sharon says: 60th anniversary of D-Day, but I was at sadors of Germany and France, and Look, we are going to decimate the the 50th anniversary and we went over Britain in our policy committee and Egyptian army and you will not hear to Ste-Mere-Eglise, where a major, who they said the young people are disillu- from Egypt again for several genera- was a Citadel graduate, had broken sioned. They always look to the United tions. And Levi Eshkol, the Prime Min- through the line and saved us from States for the moral position and tak- ister, on page 152 says: ‘‘Militarily vic- having to leave the beachhead and go ing and defending that particular pository decides nothing. The Arabs will back to England. They made a movie of tion. They do not look there anymore. still be here.’’ it. A shell burst killed him. They laid We are losing the terrorism war be- That is my theme. I have watched it him down on their side. He is buried on cause we thought we could do it mili- over the years. You have to learn not the side of the chapel. tarily under the domino policy of to kill together, but to live together. We went to the services. We had President Bush, going into Iraq. That The finest piece I ever read was right talks there. This little old lady came. is my point. That is not anti-Semite or in this morning’s paper. There is still She was about 80 years old, walking whatever they say in here about peo- hope. I refer to an article: ‘‘Israeli with a cane. I was listening to the ple’s faith and ethnicity. I never re- Arabs Exalting in a Rare Triumph.’’ mayor, and she pulled my jacket and ferred to any faith. I should have added There are a million Israeli Arabs. she said: Thank you, Yank. If you had those other names from the Project They won a soccer match in Tel Aviv. not come we would be goose-stepping. For The New American Century, but I The majority of the team was of Israeli I turned to her and I said, thank you, picked out the names I had quotes for. heritage, and they held an Israeli flag, madam, because if you had not come, And for space, I left other things out. if you can imagine that in the political we would still be a colony. Mr. President, on May 12 of this year, United States of America. They are liv- The majority of the troops on the I had printed in the RECORD the article ing together. Every Prime Minister field at Yorktown with the surrender of in its entirety. since David Ben-Gurion has realized Cornwallis were French troops. We had I diverted from the reading of the ar- that fact: that they have to learn to French troops that helped us get this ticle several times, so for the sake of live together. They all moved, and they so-called freedom. All this anti-French accuracy I wanted the whole article stuff, do not give me french fries and almost had it under Ehud Barak and printed. President Clinton. Arafat proved he did everything else, is crazy. This particular op-ed piece appeared I was proud to appear with the Sen- not want peace. He did not accept it. in the Post and Courier. Never would ator from Virginia. But Chirac, he said, That was our one chance. they have thought, having read it, if it Unfortunately, rather than working look, we have to have western soli- was anti-Semitic, that they would have on that one chance and continuing, darity. We have to work together now ever put it in there. Nor would the Ariel Sharon went in their face at and we have to watch this competition Knight Ridder newspapers in Columbia, Temple Mount, the intifada started, from China in the Far East, and we in SC. Nor would the Metro Media news- and he has been killing 10 to 1. He the western world have to stick to- papers in Greenville, SC. But the Anti- plays the numbers game, almost like gether. He said he wanted to help in we had in Vietnam. He thinks he can Iraq, but he needed a U.N. resolution to Defamation League picked it up and eliminate by moving the ball some, cover. He said what we have to do is do now they have given it to my good getting some more settlements, bull- something about Israel and Palestine. friend, Senator ALLEN of Virginia. I dozing a house, but he is creating ter- I said, what would you do? have his particular admonition how I rorism. He said, I would put a peacekeeping am anti-Semitic and I cannot let that I had a headline the other day. When force. stay there. I saw it, I showed it to my staff. I said: I said, would French troops come? My staff knew I was coming over and You all come in here, I want to ask you He said, French troops would come waiting my turn in order to talk under something. ‘‘Israel plans to destroy immediately. We would be part of it the Pastore rule. I know I am as vitally more Gaza dwellings.’’ You see that and we would separate them from kill- interested as anybody can be about headline? I asked staff members: Sup- ing each other every day. this issue. Our distinguished colleague pose they bulldoze your daddy’s home. My position is, and I believe in this from Washington, Senator CANTWELL, Wouldn’t you want to cut their throat? particular policy as strongly as I know knows this subject backward and for- They said: In a New York minute. how, might does not make right, but ward. How do you create terrorists? Where right makes might. We have lost our The reason I had not known or gotten is the front line in the so-called war on evenhanded posture and reputation in all fired up is I have been doing some terrorism? I learned the answer re- the Mideast. We are in worse off shape other work and South Carolina has al- cently on a trip I was on with the dis- with Israel, our principal interest in ready looked to me for everything at tinguished chairman of the Appropria- the gulf. that Savannah River plant. I am on the tions Committee and the chairman of Sharon has not helped us at all. We Energy Appropriations Subcommittee the Armed Services Committee. We see him going back and forth. They and we have gotten all the money—do talked for over an hour with the King say, oh, no, it is negotiation. But we not worry about money. This is a pol- of Jordan. He finally cautioned at the are throwing over the United States- icy of nuclear waste disposal, high- very end, when we stood up, he said: Israel policy of some 35 years insofar as level waste, being reclassified under an You have to settle this Israel-Palestine negotiating the settlements and the end-around-end deal of trying to make question. That is the only way to get refugees. We are saying forget about all it low-level waste and, as Senator on top of this. We went over to Kuwait of that, let Sharon keep bulldozing CANTWELL says, pouring in some sand to the Prime Minister when he got them. Now in the morning paper on the and concrete on top of it. The sci- through, he said: You have to settle the front page one sees the killing of chil- entists say, watch out, the remains in Israel-Palestine situation. dren, they are saying, we are defending these tanks are 50 percent as deadly I will quote Mr. Musharraf, the Presi- Israel. That is the U.S. policy. That is and dangerous as the entire tank con- dent of Pakistan. When we got there, not just Israel’s policy. tainer.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5925 Back to Saddam, everybody is glad economy and a global world. That is authority—President George Herbert we have gotten rid of Saddam, but we only going to come about economi- Walker Bush said: can see what has happened. There is an cally, politically, diplomatically, and old saying we learned in World War II by negotiations. Never commit U.S. troops into an unwinnable urban guerrilla war and turn off that no matter how well the gun is The United States, until this inva- the Arab world. aimed, if the recoil is going to kill the sion and this domino policy for Israel— gun crew, you do not fire. don’t tell me it is otherwise, about Look in that book of his and you will Did this White House and administra- spreading democracy. They know what see exactly what I am talking about. tion ever think of the recoil? It se- they are talking about. They are in- He is not anti-Semitic. He is sensible. verely injured the gun crew. Yes, ordi- sisting on it. It is not a Jewish policy He didn’t go in. narily to get rid of Saddam, like they or a Semite policy. It is their domino Yes, Colin Powell, General Powell put a missile on the intelligence head, policy. That is exactly what it is. But said if you are going in, let’s have they could have put a missile on him they know how to make you tuck tail enough troops. They tried to do it on any time they wanted, but they did not and run. Not the Senator from South the cheap. They were ill advised. My want to do that. They wanted the dom- Carolina. We don’t run, we don’t win, friend Paul Wolfowitz said you will do ino policy to ensue. we are not right, we are wrong a lot of it in 7 days. Come on. And they let the No, no, getting rid of Saddam was times, but I have thought this out as Republican Guard back into the city of not worth almost 800 dead GIs and over thoroughly as I know how, and it wor- Baghdad and into the Sunni triangle, 3,500 maimed for life. Some say every ries me that here we are. and the next thing you know, when time we want to criticize the policy, we I said after we got into that thing in Chalabi, who has now been demoted or are weakening the GIs. I am strength- Vietnam with the Gulf of Tonkin—I set aside—he did away with their lead- ening the GIs. I said let’s get enough in came there at that particular time, in ership and everything, so they got there so they can secure themselves. 1966, went to Vietnam when we were turned off and they buddied up with We have 135,000 now. A third of those under fire three times—actually over the insurgents, and now we have hell are guarding the other third, and that into Cambodia before and that kind of means leaving a third, 35,000 or 40,000 thing. We finally came up with McNa- on our hands. Everybody knows that. troops, running out like a fire drill to mara writing a book saying he was So it has been ill prepared, ill ad- any particular trouble and coming wrong. vised, and ill administered. The entire back in and eating. I have been there. I’ll never forget, McNamara comes thing is a mess. Don’t give me ‘‘support You can see it in Rafah. They are out to Allie Richenberg near Saint Al- the troops, support the troops.’’ I have building a big old thing like in Kosovo, bans to get his tennis lesson at 7 been with troops, about 3 years in com- where we hunker down and act like we o’clock, and Bob Mcnamara turned to bat, so don’t tell me about troops. I are in charge of Kosovo. The Albanians Allie and said, ‘‘Allie, what do you have always supported the troops. are in charge of Kosovo. think about my book?’’ He said, ‘‘It’s You ask how many Senators have You can’t force-feed democracy. It as bad as your backhand. You should gotten a Woodward Award from the has to come from within. We helped not have written it.’’ U.S. Army. They don’t give that out liberate Morocco, Algeria, Tunisia, 60- But we had to wait 20 years for that lightly. I have been with every Sec- some years ago, and Morocco, Algeria, one, and we killed 58,000 Americans. retary of Defense until this one, and I Tunisia have not opted for democracy, Now we have killed almost 800, maimed think he is brilliant, but I think he has nor has Libya, nor has Egypt, nor has for life thousands of others. Are we made a mistake going along with this Lebanon, nor has Syria, nor has Iraq, going to just continue on? domino policy. We have it now out on nor has Iran, nor has Afghanistan, nor What would the Senator from South the table, and we will all talk about it, has Pakistan, nor has Jordan, nor has Carolina do if I were king for a day? and we will be around and ready to de- Yemen, nor has Aden, nor has Saudi Yes, I would put the troops in to get se- bate it. Arabia, nor has the organization of curity, and I would step up the elec- Arab states. tion. I can tell you right now, I have I appreciate the colleagues yielding Come on. So we have to go out and run for all kind of offices, 20-some to me. I wish I had all the time to put not speak sense with respect to policy, statewide offices and campaigns. But all these articles in. and when you want to talk about pol- don’t put me in on that temporary coa- I want to thank—and I am going to icy, they say it is anti-Semitic. Well, lition. That fellow, El Baradei, who is sit here and support my friend from come on the floor, let’s debate it. Be- running around the United Nations to Washington. She has done a magnifi- cause my friend from Virginia admon- get a temporary coalition or govern- cent job stating what the issue is. ishes me. Referring to me he says, ‘‘I ment to turn power over to on June suggest he should learn from history 30—don’t put me in that. I immediately It is simply under the auspices of an before making accusations.’’ I didn’t have to repudiate the United States, accelerated disposal plan going around make any accusations. I stated facts. that I am not a stooge for the United end to reclassify—and it is around end. That is their policy. That is not my States. We just have our fingers I had not heard anything about it. I policy. crossed that we can hold law and order have been handling everything at Sa- Mind you me, when we went into so we can have an election. But don’t vannah River for 30 some years. I Iraq, the only people in the world who wait until 2005, or December; by Sep- called up the South Carolina Depart- favored that policy were the people of tember 30, let’s get that election going. ment of Health and Environmental the United States and the people of Let’s realize we are in real trouble. Control—DHEC—and they were ada- Israel. The people of Jordan, Iraq, Brit- Saudi Arabia is in trouble. Israel is in mantly opposed and gave me the brief ain, Spain, Poland, Italy, Japan, every- trouble. The United States is in trou- they signed a few weeks ago adamantly where around the world said you just ble. I am going to state what I believe opposing it, with the assistant attor- don’t invade a sovereign country no to be the fact. In fact, I believe it very ney general’s name on it. They say this matter how bad the rascal is. We have strongly. They just are whistling by on is DHEC policy. I talked to two mem- Kim Jong of North Korea—he has account of the pressures that we get bers of DHEC and they said it was weapons of mass destruction, but we politically. Nobody is willing to stand never brought up at their meetings. don’t do anything there. up and say what is going on. They do not know anything about it. Don’t give me this about how we It was a mistake like Vietnam. We So, yes, it is a little rider for one spe- saved this and we did this or did that. got misled with the Gulf of Tonkin, we We have to sort of learn that the front got misled here, and we are in that cial State that is injurious not only to line now is not the Pentagon but the quagmire. ‘‘Municipal guerrilla war the State itself—I say that advisedly— State Department. We have to work and a quagmire,’’ that says George but also to the United States. through diplomacy. We live in a global Herbert Walker Bush. I will end on my I yield the floor.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5926 CONGRESSIONAL RECORD — SENATE May 20, 2004 EXECUTIVE SESSION ment personnel, as well as plaintiffs’ firm commitment from the White and defendants’ attorneys. House that there would be no further I urge my colleagues to vote for Ray- judicial recess appointments for the re- RAYMOND W. GRUENDER, OF MIS- mond Gruender. mainder of this presidential term. That SOURI, TO BE UNITED STATES Mr. HATCH. Mr. President, I rise undertaking led immediately and di- CIRCUIT JUDGE FOR THE today to express my strong support for rectly to the Senate vitiating a cloture EIGHTH CIRCUIT the confirmation of Raymond W. vote and proceeding to confirm the Gruender, who has been nominated to nomination of Marcia Cooke to the fed- the U.S. Court of Appeals for the eral bench in Florida. Today we debate FRANKLIN S. VAN ANTWERPEN, Eighth Circuit. and vote on the nomination of Ray- OF PENNSYLVANIA, TO BE Our nominee has ideal qualifications mond Gruender to the Eighth Circuit. UNITED STATES CIRCUIT JUDGE for the Federal bench. An honors grad- Thus, despite the pessimism ex- FOR THE THIRD CIRCUIT uate of Washington University School pressed by some last week, I continued The PRESIDING OFFICER (Mr. of Law, Mr. Gruender has nearly ten working to conclude an arrangement COLEMAN). Under the previous order, years of experience as a trial attorney between the White House and the Sen- the Senate will now go into executive in private practice along with a solid ate that would allow additional session. The clerk will report the nomi- record in public service. He joined the progress on judicial confirmations. nations. U.S. Attorney’s Office for the Eastern Working with Senator DASCHLE, Sen- The legislative clerk read the nomi- District of Missouri as an Assistant ator FRIST, Judge Gonzales and the nations of Raymond W. Gruender, of U.S. Attorney in 1990, specializing in White House chief of staff Andy Card, Missouri, to be United States Circuit white collar and economic crimes, in- we were able to reach an agreement on Judge for the Eighth Circuit, and cluding fraud and corruption cases. Tuesday. I again commend our two Mr. Gruender has the bipartisan sup- Franklin S. Van Antwerpen, of Penn- leaders. I have been working with Sen- port of the Missouri legal community, sylvania, to be United States Circuit ator DASCHLE for months, as well as including: Senators BOND and TALENT; Judge for the Third Circuit. with the White House, to find a way Edward L. Down, Clinton appointed The PRESIDING OFFICER. There is out of the impasse in judicial confirma- U.S. Attorney for the Eastern District 15 minutes of debate evenly divided. tions. Senator FRIST and I have spoken of Missouri; Lee Lawless, First Assist- Who yields time? at length about this, and he has been ant Federal Public Defender for the Mr. ALLARD. Mr. President, I sug- working on that, too. I was delighted gest the absence of a quorum, and I ask Eastern District of Missouri; Howard Shalowitz, President of the Bar Asso- to see the meeting of Senator DASCHLE, unanimous consent that the time be Senator FRIST, and Mr. Card finally equally counted on both sides. ciation of Metropolitan St. Louis; Jo- seph Mokwa, Chief of Police of City of take place this week. Most impor- The PRESIDING OFFICER. Without tantly, I was pleased that the White objection, it is so ordered. St. Louis; and Dean Joel Seligman, Washington University in St. Louis House agreed to no more recess ap- The clerk will call the roll. pointments of judges. The legislative clerk proceeded to School of Law. In 2000, Mr. Gruender returned to the I think we have demonstrated our call the roll. U.S. Attorney’s Office in the Eastern good faith. In the 17 months that the Mr. BOND. Mr. President, I ask unan- District of Missouri, and specialized in Democrats were in charge of the Sen- imous consent that the order for the fraud and corruption prosecution. A ate, we confirmed 100 of President quorum call be dispensed with. year later, he was unanimously con- Bush’s nominees to lifetime positions The PRESIDING OFFICER. Without firmed as the United States Attorney on the federal bench. And the Repub- objection, it is so ordered. for the Eastern District of Missouri, licans, during the 23 months that they Mr. BOND. Mr. President, shortly we where he manages both the civil and have been in charge of the Senate, have are going to be voting on the nomina- criminal litigation handled by the of- now confirmed another 74. With the tion of Raymond Gruender to be United fice, as well as overseeing the adminis- consideration of the Gruender nomina- States Circuit Judge for the Eighth tration of the office, which includes 60 tion today, that total reaches 75. Circuit Court of Appeals. attorneys. Mr. Gruender and his office This is the 75th confirmation for 2003 I want to tell my colleagues this is have been active in helping to reduce and 2004, of the 108th Congress. That one of the finest young men I know. He violent crime in the St. Louis area. He matches the total for the entire two- worked his way through Washington has also been a leader in strengthening year 1995–1996 period in which Repub- University, getting an MBA and a law our nation’s readiness in the war on licans controlled the 104th Congress degree in 6 years while working full terror. and exceeds the total for the entire time to support himself. His personal Mr. Gruender also believes in giving two-year 1999–2000 period in which Re- story is a very touching one, with very back to his community, and in addition publicans controlled the 106th Con- significant difficulties which he over- to devoting a significant amount of his gress. Of course in those years Senate came. career to public service, he has been Republicans were reviewing President He served as an assistant U.S. Attor- very active in civic affairs. He has vol- Clinton’s judicial nominees. Further, ney under Republican and Democratic unteered his time on domestic violence with 175 confirmations, we will have administrations. issues, serving at various times as matched the total confirmation for the He has been in private practice of law President of the Board of Directors, most recent 4-year Presidential term and has tried cases in district courts— Vice President, and Secretary of Alter- 1997–2000. criminal and a wide range of civil natives to Living in Violent Environ- It is significant that this is the first cases. ments, ALIVE. ALIVE is a not-for- circuit court nomination the Senate He served as an appellate lawyer. profit organization dedicated to elimi- will have considered this Presidential Most recently, he has been U.S. At- nating domestic violence. He also election year. The last time a Presi- torney for the Eastern District of Mis- serves as a volunteer on the Alloca- dent ran for reelection was 1996. During souri. tions Committee of the Variety Club of that session, with the Republican ma- I can assure you this is a man who St. Louis, which raises and distributes jority controlling the Senate agenda will bring not only integrity, legal funds to disadvantaged and disabled not a single circuit court nominee was skills, and judicial knowledge to the children. considered. Accordingly, when the Sen- Eighth Circuit, but he is a person of Raymond W. Gruender III has a fine ate acts to confirm the first circuit great human understanding and intel- background, which will serve him well court nominee this year, we will have lect. He will be a pleasure to appear be- as a circuit court judge. He will be a bested the total for the entire 1996 ses- fore. terrific addition to the Court, and I sion. We can be proud the President has urge my colleagues to join me in sup- I am pleased that the Senate has re- nominated a man who has such great porting his nomination. ceived assurances from the White respect among the bar in the Eastern Mr. LEAHY. Mr. President, earlier House that the President will not fur- District of Missouri and law enforce- this week, we were able to obtain a ther abuse the recess appointment

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5927 power by making recess appointments Just as a nominee last year at- a distinguished career as a public serv- during the remainder of his presi- tempted to stonewall Committee Mem- ant and practicing attorney. He is an dential term. It was the White House’s bers by not answering questions in a outstanding and highly qualified can- refusal to reach a reasonable accommo- forthright manner, so Mr. Gruender didate as evidenced by his professional dation of the concerns of many Sen- avoided answering some of my ques- and academic credentials. ators about the unilateral approach of tions by claiming that he could not ex- From humble beginnings, Mr. the President’s recess appointments to press his views on the issues without a Gruender has risen to the top of the the federal courts that complicated our complete factual record and the benefit legal profession. Neither of his parents efforts to reach an agreement regard- of the ‘‘deliberative process.’’ For ex- graduated from high school; his father ing votes on judicial nominees over the ample, Mr. Gruender refused to express painted houses; his mother worked in a past few months. That is demonstrated his opinion about Congress’s power factory as a bookbinder and is now a by the prompt vote and confirmation of under the Commerce Clause, Section 5 prison guard. He has worked since age Judge Cooke Tuesday afternoon. I was of the Fourteenth Amendment, or the 10 with his father and he continued to pleased to be able to help facilitate the 10th or 11th Amendments. This is a work all through school. end of that impasse. timid, evasive and useless response. Mr. Gruender obtained three degrees And now we are set to vote on an- And many other circuit court nominees from Washington University in less other candidate, the nomination of of this President have answered the than 6 years, all while working and Raymond Gruender to the U.S. Court of same questions. paying his own way through school. By Appeals for the Eighth Circuit. While Mr. Gruender does, however, have the 1987, he had obtained Bachelor of some have mischaracterized the nomi- support of both of his home-State Sen- Science in Business Administration, nees included in this week’s agreement ators and has served both as prosecutor Master of Business Administration and as ‘‘noncontroversial,’’ they in fact in- and a defense attorney. Juris Doctoris degrees. Not only did he clude a number who will require debate I am hopeful that he will be open- work twenty hours per week during the and they will each require a roll call minded on the bench and will act as he 6 years in which he obtained these de- vote says he will, that he will follow the law grees, but he also ranked near the top Unfortunately, Mr. Gruender is an- and not seek out opportunities to over- of his class in each program. In law other nominee whose record raises con- turn precedent or decide cases in ac- school, Mr. Gruender served on the cerns, just as have the records of far cord with his political beliefs rather Washington University Law Quarterly too many of President Bush’s judicial than his obligations as a judge. I also and is a member of The Order of the nominees. Mr. Gruender, though only sincerely hope that Mr. Gruender will Coif. In December 2003, he was awarded 40 years old, has been a member of the treat all those who appear before him an honorary Doctor of Laws degree by Federalist Society since 1988 and has with respect and courtesy and will not William Woods University in Fulton, played a lead role in many national Re- abuse the power and trust of his posi- Missouri. publican campaigns. For the past two tion. Since May 1, 2001, Ray Gruender has years, Mr. Gruender has served as the For the last three and one-half years, served as the United States Attorney U.S. Attorney for the Eastern District I have urged President Bush to work for the Easter District of Missouri. As of Missouri. In this capacity, he has with us. Our proceeding today on this United States Attorney he oversees an been a vocal defender of Attorney Gen- nomination demonstrates our going office of 60 Assistant United States At- eral John Ashcroft’s aggressive and the extra mile. torneys actively engaged in both civil controversial tactics. I would note that President Clinton’s and criminal matters. During his ten- He has also been critical of a city nomination of Bonnie Campbell to this ure, the number of Federal firearms that passed a resolution reaffirming court was blocked—by a secret Repub- prosecutions in his district has in- the importance of civil liberties in the lican hold—from ever getting Com- creased dramatically. In 2003, the City fight against terrorism. He claimed mittee or Senate consideration. By of St. Louis experienced 69 homicides, that the resolution, which aimed to contrast, the Senate has already con- the first time it had fewer than 100 protect freedom of speech, assembly, firmed four of President Bush’s nomi- homicides in more than 40 years. privacy and due process, is ‘‘putting nees to this circuit:—William Riley, Prior to serving as the United States lives in jeopardy and increasing the Michael Melloy, and Lavenski Smith Attorney, Mr. Gruender served as an chances for terrorists to be successful.’’ were confirmed while Democrats held Assistant United States Attorney— Mr. Gruender stood by these state- the majority, and, last year, Steven AUSA—between 1990 and 1994 and again ments and his criticisms of the resolu- Colloton was confirmed to this court, between 2000 and 2001. As an AUSA, he tion at his hearing. as well. Mr. Gruender makes the fifth. specialized in fraud and public corrup- Despite his activities applying the With his confirmation, Republican tion matters. He was one of the AUSAs PATRIOT Act as a U.S. Attorney and appointees on the Eighth Circuit Court who handled the Second Injury Fund his public pronouncements about its of Appeals will outnumber Democratic prosecutions involving several lawyers, provisions, Mr. Gruender stated in his appointees by four to one. There will be physicians and an administrative law answers to my written questions that eight active Republican-appointed judge who were defrauding Missouri’s he has ‘‘not formed or expressed any judges and only two active Democratic- workers’ compensation system. opinions with respect to the constitu- appointed judges. And there is one In addition to his experience as a tionality of any provisions of the PA- more vacancy on this court which Federal prosecutor, Mr. Gruender has TRIOT Act’’ and would, if confirmed, President Bush intends to fill with an- spent 9 years in the private practice of protect each citizen’s civil rights and other conservative nominee. law. Between 1987 and 1990, he was an civil liberties. I would note for my friends on the associate with the large St. Louis law I do hope that, if confirmed, Mr. other side of the aisle—who consist- firm of Lewis, Rice and Fingersh. Be- Gruender will be a person of his word. ently rebuke the Ninth Circuit Court of tween 1994 and 2000, he as a partner I hope he will be fair and open-minded, Appeals as being ‘‘too liberal’’ because with Thompson Coburn, LLP, another and listen to all arguments involved in 60 percent of the judges are Democratic large Missouri firm. He has represented such cases. I hope he would not seek to appointees—that the scales are tipped both plaintiffs and defendants in a decide cases in accordance with his much farther the other way on the broad array of civil matters such as ad- partisan or personal beliefs rather than Eighth Circuit. With Democratic co- miralty, antitrust, contracts, employ- in accordance with the law. I also must operation in confirming five of Presi- ment, securities, fraud, banking and note that, while he was candid about dent Bush’s nominees to the Eighth various torts claims. some of his activities, Mr. Gruender Circuit, Republican appointees now oc- He is a member of the Missouri and failed to directly answer several ques- cupy 80 percent of the authorized seats Illinois bars, the Bar Association of tions that I asked him in writing after on that court. Metropolitan St. Louis, and has been a his hearing, questions that would en- I congratulate Mr. Gruender and his member of the Eastern District of Mis- able me to fully evaluate his qualifica- family on his confirmation today. souri’s Criminal Justice Act Lead tions for a lifetime appointment on the Mr. TALENT. Mr. President, United Counsel Panel, making himself avail- federal bench. States Attorney Ray Gruender has had able to accept criminal appointments.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5928 CONGRESSIONAL RECORD — SENATE May 20, 2004 Mr. Gruender also has been active in Clinton Grassley Murray ice when he joined the Court of Com- civil affairs. His numerous civic con- Cochran Gregg Nelson (FL) mon Pleas of Northampton County. He Coleman Hagel Nelson (NE) tributions include serving as a volun- Collins Hatch Nickles served in this position until 1987, when teer on the Allocations Committee of Conrad Hollings Pryor President Reagan appointed him the Variety Club of St. Louis to help Cornyn Hutchison Reed United States District Judge for the Corzine Inhofe raise and distribute funds to disadvan- Reid Eastern District of Pennsylvania, the Craig Inouye Roberts Crapo Jeffords position he holds today. taged and disabled children in the St. Rockefeller Daschle Johnson Judge Van Antwerpen has a fine Louis area. He also served on the Board Santorum Dayton Kennedy of Directors—including as board presi- Sarbanes background which will serve him well DeWine Kohl as a circuit court judge. He will be a dent of—ALIVE—Alternatives to Liv- Dodd Kyl Schumer ing in Violent Environments—a not- Dole Landrieu Sessions terrific addition to the court, and I Shelby for-profit entity dedicated to elimi- Domenici Lautenberg urge my colleagues to join me in sup- Dorgan Leahy Smith nating domestic violence and helping porting his nomination. Durbin Levin Snowe The PRESIDING OFFICER. The Sen- its victims. Edwards Lieberman Specter I urge all of my colleagues to vote to Ensign Lincoln Stabenow ator from Vermont. Mr. LEAHY. Mr. President, today, in confirm Raymond Gruender, of Mis- Enzi Lott Stevens Feingold Lugar Sununu addition to voting on the nomination souri, to be U.S. Circuit Judge for the Feinstein McCain Talent of Raymond Gruender, we vote to con- Fitzgerald McConnell Eighth Circuit. Thomas firm another circuit court nominee, Mr. BOND. Mr. President, I suggest Frist Mikulski Voinovich Graham (FL) Miller Wyden Judge Franklin Van Antwerpen to the the absence of a quorum. Graham (SC) Murkowski United States Court of Appeals for the The PRESIDING OFFICER. The NAYS—1 Third Circuit. A Federal District Court clerk will call the roll. Harkin judge since he was appointed by Presi- The legislative clerk proceeded to dent Reagan in 1987, Judge Van NOT VOTING—2 call the roll. Antwerpen comes to the Senate floor Mr. REID. Mr. President, I ask unan- Kerry Warner strongly supported by the Senior Sen- imous consent that the order for the The nomination was confirmed. ator from Pennsylvania, who I know is quorum call be dispensed with. The PRESIDING OFFICER. The Sen- eager to see him confirmed. The PRESIDING OFFICER. Without ator from Pennsylvania. Today’s confirmation will make the objection, it is so ordered. Mr. SPECTER. Mr. President, the 76th judge confirmed this year alone Mr. REID. Mr. President, I yield time nominee for confirmation to the Court and the 176th judicial nominee to be for the minority on the judges matter. of Appeals for the Third Circuit, confirmed for this President. With 76 The PRESIDING OFFICER. Without Franklin Van Antwerpen, has a very judicial confirmations in just a little objection, all time is yielded. distinguished academic record. He has more than 16 months, the Senate has The Senator from Texas. been on the bench for 25 years, 12 years now confirmed more Federal judges Mrs. HUTCHISON. Mr. President, I on the State court bench in North- than were confirmed during the two ask unanimous consent that there be 4 ampton County and 13 years on the full years of 1995 and 1996, when Repub- minutes equally divided between the U.S. District Court for the Eastern Dis- licans first controlled the Senate and two votes. trict of Pennsylvania. I thank my col- President Clinton was in the White The PRESIDING OFFICER. Without leagues, the leaders, and the chairman House. It also exceeds the 2-year total objection, it is so ordered. and ranking member of the Judiciary for the last 2 years of the Clinton ad- Mrs. HUTCHISON. Mr. President, Committee for working out the im- ministration, when Republicans held have the yeas and nays been asked for? passe. He will be an excellent judge for the Senate. In fact, with 176 total con- The PRESIDING OFFICER. They the Third Circuit. firmations for President Bush in just have not. I yield time to my distinguished col- 31⁄2 years, the Senate has confirmed Mrs. HUTCHISON. I ask for the yeas leagues. more lifetime appointees for this presi- and nays on the first vote. The PRESIDING OFFICER. The Sen- dent than were allowed to be confirmed The PRESIDING OFFICER. Is there a ator from Pennsylvania. in President Clinton’s entire second Mr. SANTORUM. Mr. President, I sufficient second? term, the most recent 4-year presi- add my congratulations to Judge Van There is a sufficient second. dential term. We have already sur- Antwerpen. He has been an excellent The question is, Will the Senate ad- passed the number of judicial con- public servant and distinguished jurist firmations won by President Reagan in vise and consent to the nomination of and will make an excellent contribu- Raymond W. Gruender, of Missouri, to his entire first term in office. tion to the Third Circuit. The confirmation of Judge Van be United States Circuit Judge for the Mr. HATCH. Mr. President, I rise Antwerpen also marks the second cir- Eighth Circuit? today to express my strong support for cuit court nominee confirmed for On this question, the yeas and nays the confirmation of Franklin S. Van President Bush this year, which is dou- have been ordered, and the clerk will Antwerpen, who has been nominated to ble the number of circuit court nomi- call the roll. the U.S. Court of Appeals for the Third nees confirmed in all of 1996, the last The legislative clerk called the roll. Circuit. time a president was running for re- Mr. REID. I announce that the Sen- Judge Van Antwerpen is truly an im- election and Republicans refused to ator from Massachusetts (Mr. KERRY) pressive man and has the enthusiastic allow a single circuit court nominee of is necessarily absent. support of both Pennsylvania senators, President Clinton to be confirmed all Mr. MCCONNELL. I announce that along with a unanimous ‘‘Well Quali- year. Today we confirm the 32nd cir- the Senator from Virginia (Mr. WAR- fied’’ ABA rating. cuit court nominee of President Bush, NER) is necessarily absent. Judge Van Antwerpen has excep- which is more circuit court confirma- The PRESIDING OFFICER. Are there tional qualifications for the Federal tions than in all 4 years of President any other Senators in the Chamber de- appellate bench. After graduation from Clinton’s first term in the White siring to vote? Temple University School of Law in House. The result was announced—yeas 97, 1967, he worked as an attorney at the A look at the Federal judiciary in nays 1, as follows: Hazeltine Corporation and served as Pennsylvania demonstrates yet again [Rollcall Vote No. 102 Ex.] Chief Counsel of the Northampton that President Bush’s nominees have YEAS—97 Legal Aid Society. He then spent 9 been treated far better than President Akaka Biden Burns years in private practice, representing Clinton’s and shows dramatically how Alexander Bingaman Byrd both plaintiffs and defendants in gen- Democrats have worked in a bipartisan Allard Bond Campbell eral litigation matters, with a par- way to fill vacancies, despite the fact Allen Boxer Cantwell ticular specialization in municipal law. that Republicans blocked more than 60 Baucus Breaux Carper Bayh Brownback Chafee In 1979, Judge Van Antwerpen com- of President Clinton’s judicial nomi- Bennett Bunning Chambliss menced a 25-year career in public serv- nees. With this confirmation, 16 of

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5929 President Bush’s nominees to the Fed- I congratulate Judge Van Antwerpen NATIONAL DEFENSE AUTHORIZA- eral courts in Pennsylvania will have and his family on his confirmation TION ACT FOR FISCAL YEAR been confirmed, more than for any today. 2005—Continued other State except California. The PRESIDING OFFICER. All time The PRESIDING OFFICER. The Sen- With this confirmation, President is yielded back. ator from Virginia. Bush’s nominees will make up 16 of the The question is, Will the Senate ad- Mr. WARNER. I join with my col- 41 active Federal circuit and district vise and consent to the nomination of league in requesting Senators to send court judges for Pennsylvania—that is Franklin S. Van Antwerpen, of Penn- in as many amendments as they pos- more than one third of the Pennsyl- sylvania, to be United States Circuit sibly can. The Senator from Michigan vania Federal bench. With the addi- Judge for the Third Circuit? and I will be here tomorrow in hopes tional four Pennsylvania district court Mr. LEAHY. Mr. President, I ask for that we can clear amendments. There nominees pending on the floor and like- the yeas and nays. are days when clearances could be fa- ly to be confirmed soon, nearly half of The PRESIDING OFFICER. Is there a cilitated. I think tomorrow is one of the district court seats in Pennsyl- sufficient second? those days. vania will be held by President Bush’s There is a sufficient second. The I say to my good colleague, the Sen- appointees. Republican appointees will clerk will call the roll. ator from Michigan, Mr. LEVIN, am I outnumber Democratic appointees by The bill clerk called the roll. correct in that? nearly two to one. The PRESIDING OFFICER. The Sen- This is in sharp contrast to the way Mr. MCCONNELL. I announce that the Senator from Texas (Mrs. ator from Michigan. vacancies in Pennsylvania were left un- Mr. LEVIN. I say to my good friend HUTCHISON) and the Senator from Ala- filled during Republican control of the from Virginia, he is absolutely not bama (Mr. SESSIONS) are necessarily Senate when President Clinton was in only correct but I would join his plea the White House. Although Repub- absent. Mr. REID. I announce that the Sen- to our colleagues that we make good licans now decry Democratic filibus- use of time tomorrow. If Senators are ters of a mere handful of the most ex- ator from Massachusetts (Mr. KERRY) and the Senator from Georgia (Mr. not here, their staff can deliver amend- treme nominees, Republicans denied ments so at least we can begin to con- MILLER) are necessarily absent. votes to nine district and one circuit sider them. We can make good use of The PRESIDING OFFICER. Are there court nominees of President Clinton in tomorrow so when we come back we any other Senators in the Chamber de- Pennsylvania alone. Despite the efforts will have to use up less of the Senate’s siring to vote? and diligence of the senior Senator time. from Pennsylvania, Mr. SPECTER, to se- The result was announced—yeas 96, So I join the chairman’s plea that cure the confirmation of all of the judi- nays 0, as follows: Members on both sides of the aisle, who cial nominees from every part of his [Rollcall Vote No. 103 Ex.] have not filed amendments or given home State, there were ten nominees YEAS—96 our staffs amendments, do that tomor- by President Clinton to Pennsylvania Akaka DeWine Lieberman row. Let us try to work through some vacancies who never got a vote. De- Alexander Dodd Lincoln of them. We could clear them tomor- spite how well-qualified these nomi- Allard Dole Lott row and, even if we do not have con- Allen Domenici Lugar nees were, many of their nominations Baucus Dorgan McCain tested amendments tomorrow, we sat pending before the Senate for more Bayh Durbin McConnell could make some progress on this bill. than a year without being considered. Bennett Edwards Mikulski Mr. WARNER. I thank my colleague. Such obstruction provided President Biden Ensign Murkowski The distinguished Senator from Ne- Bingaman Enzi Murray Bush with a significant opportunity to Bond Feingold Nelson (FL) vada, the Democratic whip, pointed out shape the bench according to his par- Boxer Feinstein Nelson (NE) that he has a count of over 100-odd tisan and ideological goals. Breaux Fitzgerald Nickles amendments with which we have to Recent news articles in Pennsylvania Brownback Frist Pryor Bunning Graham (FL) Reed deal. So there is a formidable task have highlighted the way that Presi- Burns Graham (SC) Reid ahead of us. dent Bush has been able to reshape the Byrd Grassley Roberts The PRESIDING OFFICER. The Sen- Federal bench in Pennsylvania. For ex- Campbell Gregg Rockefeller ator from South Carolina. Cantwell Hagel Santorum ample, the Philadelphia Inquirer, on Carper Harkin Sarbanes Mr. GRAHAM of South Carolina. The November 27, 2003, said that the signifi- Chafee Hatch Schumer reason I speak as we close out this cant number of vacancies on the Penn- Chambliss Hollings Shelby evening is to comment on a few things sylvania courts ‘‘present Republicans Clinton Inhofe Smith about the amendment pending before Cochran Inouye Snowe with an opportunity to shape the judi- Coleman Jeffords Specter the Senate in regard to an effort to do cial makeup of the court for years to Collins Johnson Stabenow two things: to make sure the $350 mil- come.’’ Conrad Kennedy Stevens lion that is available for the Depart- Democratic support for the confirma- Cornyn Kohl Sununu Corzine Kyl Talent ment of Energy to provide cleanup in tion of Franklin Van Antwerpen is yet Craig Landrieu Thomas the States of Washington, Idaho, and another example of our extraordinary Crapo Lautenberg Voinovich South Carolina can move forward with- cooperation despite an uncompro- Daschle Leahy Warner out any strings attached, and to ratify Dayton Levin Wyden mising White House and the record of an agreement that the State of South how President Clinton’s Pennsylvania NOT VOTING—4 Carolina has entered into with the De- nominees fared under Republican con- Hutchison Miller partment of Energy concerning 51 trol in the Senate. In contrast to many Kerry Sessions tanks containing high-level waste. of President Bush’s nominees, Judge The nomination was confirmed. I really do very much like my col- Van Antwerpen comes to us with a dis- Mr. WARNER. Mr. President, I move league from Washington, Senator tinguished and widely acclaimed career to reconsider the vote. CANTWELL, but we dramatically dis- on the bench—both on the State and Mr. LEVIN. I move to lay that mo- agree on this. I cannot emphasize how Federal levels. He was rated unani- tion on the table. dramatically we do disagree about mously well-qualified by the American The motion to lay on the table was what is at stake and what we are try- Bar Association and has the respect of agreed to. ing to accomplish. his peers on the bench and of the attor- My senior Senator from South Caro- neys who appear before him. He is the f lina could not have been possibly bet- kind of nominee this President and my ter to me since I have been in the Sen- Republican colleagues should be look- ate almost 18 months now. He is going ing for as we fulfill our constitutional LEGISLATIVE SESSION through some accusations that I find duty of appointing members to the The PRESIDING OFFICER. Under not consistent with who Senator HOL- Federal judiciary—an independent the previous order, the Senate will now LINGS is. I am not going to dwell on branch of the government. return to legislative session. that, but I believe that most of us who

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5930 CONGRESSIONAL RECORD — SENATE May 20, 2004 know Senator HOLLINGS very well be- We will agree on this: Our Governor Washington unless they reach a similar lieve he gives everybody the same is a good environmentalist. He has agreement with South Carolina. It does treatment: Really hard. He is a fair been a great Governor trying to change not make what is going on in South man. He is a good man. We have some the culture of the way we do business Carolina a Presidential event, in terms disagreement about how to handle the in South Carolina. I have been working of how it affects other States. It limits amendment before us, but I did not with him for well over a year to make what is going on in South Carolina to come to this issue without some time, sure our State gets those tanks cleaned South Carolina. It does not disadvan- attention, and thought to the matter. up in our lifetime and we do not have tage Washington or Idaho. They have Well over a year I have been involved to worry about ground water leakage. the right, the obligation to enter into with my State working with the De- The folks in Washington have a real an agreement, if any, with DOE. What partment of Energy to make sure that problem on their hands, and I want to we are doing in South Carolina only af- the 51 tanks that have high-level waste help them. The people in Idaho have fects South Carolina. I will tell you in as a result of the cold war legacy mate- problems on their hands, and I want to a moment what people in South Caro- rial at the Savannah River site is help them. I do not think they are lina who are in charge of our environ- cleaned up in a way that is environ- being very responsible in terms of how mental needs say about this agree- mentally sound for South Carolina, we are dealing with each other’s prob- ment. I will read the letter from the good for the taxpayer, and it makes lems. Governor here in a moment. sense. Here is a chronology of what has The Department of State, the De- I have a letter from the Governor of been going on in these three States. partment of Energy, and the State of South Carolina. Contrary to what Sen- Idaho, South Carolina, and Washington Washington, along with the State of ator HOLLINGS suggested, the Governor have been separately negotiating with Idaho, exchanged drafts and held con- of South Carolina not only knows what the Department of Energy about trying versations between January and April. we are doing, he encourages what we to agree on standards in their States to There is a lot of paperwork out there are doing. I received a letter to that ef- remediate the high-level waste that is that shows Idaho and Washington have fect. I ask unanimous consent that the left over from the cold war. Wash- been trying to do the same thing we letter be printed in the RECORD. ington has a particular problem where have been doing in South Carolina. There being no objection, the mate- they have tanks that are leaking into Here is the difference. We reached an rial was ordered to be printed in the the ground water. That needs to be agreement South Carolina likes that RECORD, as follows: fixed sooner rather than later. will get our tanks cleaned up in an en- STATE OF SOUTH CAROLINA, The question is, What is clean? The vironmentally sound manner. And lis- OFFICE OF THE GOVERNOR, question is, Are we going to allow ten to this, it allows the tanks to be Columbia, SC, May 20, 2004. South Carolina, Idaho, and Washington Hon. LINDSEY O. GRAHAM, cleaned up, remediated, and closed 23 U.S. Senate, to work with the Department of En- years ahead of schedule, and it saves Washington, DC. ergy to take care of their specific needs $16 billion to the American taxpayer. DEAR SENATOR GRAHAM: I am writing in and specific problems in an environ- I hope Washington and Idaho can get support Section 3116, Defense Site Accelera- mentally sound manner or are we going there. If they ever do get there, if they tion Completion in the FY 2005 Department to give one group a veto power over ev- ever do reach an agreement with the of Defense Authorization bill, S. 2400. More erybody else? Department of Energy where the Gov- specifically, this section of the bill will allow I hope we do not. January 26, 2004, for an accelerated clean up of the Savannah ernor says I like it, where the environ- River Site in South Carolina. Congressman HASTINGS and Senators mental regulators say I like it, where This Administration is concerned about MURRAY and CANTWELL sent a letter to the Nuclear Regulatory Commission the prospect of long-term storage of radio- Governor Locke and Secretary Abra- says this is waste incidental to reproc- active waste in aging tanks at the Savannah ham asking them to work together to essing, that this can be done in a way River Site. Under the current Nuclear Waste resolve the ongoing dispute pertaining that is environmentally sound—I hope Policy Act, the cleanup process could leave to waste classification. I will help, not stand in the way. the waste in those storage tanks for an addi- On February 2, the deputy secretary So much was said that is so wrong tional 30 years. However, the amendment allows the U.S. and Governor Locke connected. Gov- about this issue. To my two friends Department of Energy, working with the ernor Locke indicated he would des- from Idaho, you have taken some polit- South Carolina Department of Health and ignate someone to enter into a discus- ical abuse here that is so far from the Environmental Control, to move more quick- sion on behalf of the State of Wash- truth that it is mind-boggling. What ly to clean up the Savannah River Site. In ington. Senators CRAPO and CRAIG have been fact, the estimated cleanup time will be re- That has been going on in South doing is they have been working with duced by 23 years, at a savings of $16 billion Carolina far before January 26. It is to the taxpayers. me, in conjunction with all three Most important is ensuring that the State going on in Idaho. About 8 or 9 years States, to make sure they get the of South Carolina will be able to retain an ago Idaho reached agreement about money they are entitled to regardless oversight role in the cleanup process. Ac- certain aspects of cleaning up of the of what we do in South Carolina, and cording to analysis by the South Carolina Idaho sites. Each site has a different they have been kind enough to work Department of Health and Environmental problem and it is working with DOE in with me to make sure my State’s Control, the state’s environmental regu- a way that is good for everyone, the agreement can go forward. We are latory agency, the clean up process will still require an equal partnership with the State. State and at the Federal level, to clean doing nothing to prejudice the lawsuit As you move through the legislative proc- up these sites. of the State of Idaho or their ability to ess, we urge you and your colleagues to re- The reason we are in court in Idaho reach an independent agreement. I can tain two very important goals for South is DOE unilaterally issued an order assure you, this is not blindsiding any- Carolina: 1. allow for a more accelerated that gave them the authority to set the body because there is paperwork from clean up process, and 2. provide strong lan- cleanup standards without consulting January all the way through to recent guage to protect the State’s sovereignty with the States. They were trying to months between Idaho and Wash- within the process of accelerated cleanup. Thank you for your leadership in the change the game or the agreement ington, talking with DOE about trying United States Senate. I look forward to Idaho had with DOE, and Idaho sued to find an agreement. working with you on this and many other and we—South Carolina and Wash- On February 25, 2004, Jessie matters of importance to our State. ington—joined as a friend of the court, Roberson, the Assistant Secretary for Sincerely, saying we will not sit on the sidelines Energy for Environmental Manage- MARK SANFORD. and watch the Department of Energy ment came before Senator ALLARD in a Mr. GRAHAM of South Carolina. I have the unilateral right to set cleanup hearing and talked about this exten- am going to read from it. The question standards. That is what we agree upon. sively. He was asked numerous ques- Senator HOLLINGS raised was, well, if The amendment I have before the tions. our Governor knew about this he would Senate does two important things. It I ask unanimous consent to have an not agree to this because he is a good does not allow the Department of De- excerpt of that hearing printed in the environmentalist. fense to withhold funds to Idaho and RECORD.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5931 There being no objection, the mate- the nature of the waste removal in question. and the associated equipment. Our analysis rial was ordered to be printed in the Each tank can hold as much as 1.3 million thus far indicates that we would increase RECORD, as follows: gallons of liquid waste. At Hanford, for ex- worker exposure 10 fold. We would increase ample, the tanks are 75 feet in diameter, and costs 10 fold and achieve no meaningful im- TRANSCRIPT ON WASTE INCIDENTAL TO RE- the tanks are of differing shapes. Some are provement in environmental protection. PROCESSING, STRATEGIC FORCES SUB- concave, which means they don’t have a flat ALLARD: So I don’t see what the rational COMMITTEE HEARING, FEBRUARY 25, 2004 bottom. benefit is to the American taxpayer from the QUESTIONS BY SENATOR WAYNE ALLARD TO MS. ALLARD: I guess that’s about the size of department having to implement the Idaho JESSIE ROBERSON, ASSISTANT SECRETARY OF this room .... district court decision. ENERGY FOR ENVIRONMENTAL MANAGEMENT (CROSSTALK) ROBERSON: Frankly, Senator, we don’t ALLARD: Well, thank you very much for ROBERSON: Under the tri-party agree- see it either, which is why we are pursuing your participation. It’s invaluable to this ment at Hanford between DOE, Washington this. Rather than accelerating clean-up of committee. state and EPA, which governs the clean-up tank waste in agreement with our host I’m going to be referring in my questioning at that site, the goal is that we retrieve 99 states, we face stopping much of that work. to WIR, which stands for Waste Incidental percent of the tank waste. If all of the re- ALLARD: What is your plan for resolving Reprocessing. And I think it would behoove maining waste were on the bottom of the this WIR issue: the committee to hear, Secretary Roberson, tank, it would be just under one inch thick. ROBERSON: Accelerated clean up of tank you summarize what the WIR issue is. Because of radiological concerns with ex- waste is a top priority for the entire depart- ROBERSON: Thank you, Chairman Allard. posure for workers, tank waste removal ment and the states that host our facilities. Thank you, Senator, as well. must be done remotely. In addition, these As pointed out in the General Accounting Of- Clean-up of tank waste at Hanford, Idaho, tanks usually sit below 10 feet of soil cover. fice report completed last year, the WIR, and Savannah River represents the greatest Our retrieval equipment must fit into open- waste incidental to reprocessing issue, poses risk-reduction effort in the department’s en- ings two inches to two feet wide. And tank a significant vulnerability for the depart- tire clean-up program. structures are not designed to support heavy ment. ALLARD: And this all falls under Waste loads for which equipment must be deployed Consistent with both the GAO rec- Incidental Reprocessing, is that correct? to do the tank cleaning. So it is not a simple ROBERSON: Absolutely. ommendations to seek legislative clarifica- ALLARD: Okay. task to scrape the last remaining tank resi- tion regarding DOE’s authority to classify ROBERSON: And I’ll explain what portion dues from a tank. tank waste and with the request by the of the program that specifically applies to. Further, much of the waste residues are House Oversight and Investigations Sub- ALLARD: Very good. expected to have a stiff consistency. Most re- committee last year, we proposed draft legis- ROBERSON: Okay, we have planned at moval techniques require directing pressur- lation to Congress that would clarify our au- these three sites to clean up tank waste, ized water streams at the remaining waste to thority for managing such waste. plans agreed to with our host states and that immobilize it and to move it to a location We have since held discussions with af- the NRC had also carefully reviewed. At each which can be pumped. fected states over the impact the Idaho dis- site, our plans acknowledge we would remove ROBERSON: We have spent over 10 years trict court decision had on our activities in as much tank waste as we could. We would working on technologies to improve removal Hanford, Idaho, and Savannah River, in separate the tank waste into two factions. opportunities of the waste from these tanks. order to seek to address issues they have The first is a high-activity faction con- Finally, many of the tanks are over 40 raised about our proposed legislative ap- taining over 95 percent of the radioactivity, years old. And a number of them have known proach. which we would classify as high-level waste leak sites, requiring us to exercise great care In addition, we’ve just filed our opening and treat and dispose of in the repository for to preclude water leaking from the tank. brief in our appeal of the Idaho court deci- spent fuel and high-level waste called for by As I said, DOE spent tens of millions of sion to continue our litigation efforts to re- the Nuclear Waste Policy Act. dollars exploring how to get as much resid- solve the WIR issue. Without timely resolu- And then a low-activity faction, which we ual waste as possible out of the tanks. tion to this issue, not only could we be un- would classify as low-level waste, incidental ALLARD: What is the material you plan to able to implement our clean-up plans, but to reprocessing and, depending on its charac- leave in the tanks? DOE also could be forced to realign its re- teristics, treat and dispose of in an appro- ROBERSON: We think the residues, when sources across the complex in a manner that priate disposal facility for such material. stabilized, are appropriately considered low- would significantly distort the department’s We would then determine whether we could level waste, suitable for shallow land burial. clean-up and other priorities. demonstrate that disposing of a small Analysis will be performed to ensure that ALLARD: What about the $350 million, and amount of residues remaining in the tank, they meet performance objectives estab- what does it take to get that money re- generally around one percent of the original lished by DOE and the NRC for low-level leased? volume, by immobilizing it in place and de- waste performance objectives. ROBERSON: The Department’s fiscal year termine—to ensure that it would be com- In fact, that is what the order that was 2005 budget request includes $350 million in a parable to the public health and safety re- struck down by the judge’s ruling required. high-level waste proposal that reflects the quirements for disposal of low-level waste in ALLARD: Now, shouldn’t the waste char- need to satisfactorily resolve this issue to a near-surface disposal facility. If it would, acteristics and the risks they pose be what support clean-up. These funds will be re- our plans were to classify the residues as matters in terms of safe disposal rather than quested only to the extent that legal uncer- low-level waste, incidental to reprocessing, the process that created the waste? tainties concerning disposition of these ROBERSON: Yes, Mr. Chairman, we be- to immobilize them in the tank and close the wastes are resolved. lieve so. And we believe that that is the phi- tanks with these residues in place. Until we can resolve the legal uncertain- losophy behind the clean-up plans in place A key element of these plans is the classi- ties related to WIR, it does not make sense for those sites. fication of the tank waste. for us to proceed with projects that prepare ALLARD: And how much more than your The problem we have encountered is that tank waste for disposition as other than current estimates might this cost the Amer- in July of 2003, an Idaho district court struck high-level waste destined for deep geologic ican taxpayers? down the waste incident to reprocessing por- depository. ROBERSON: Our preliminary assessment tion of DOE Order 435.1, the DOE order ad- ALLARD: I want to thank you for your re- was that it would cost as much as $50 billion dressing how DOE and its contractors clas- sponse. sify waste under the Atomic Energy Act. As more over the life-cycle of the department’s a result, we now face uncertainty in imple- clean-up program and extend that life-cycle Mr. GRAHAM of South Carolina. menting the very plans our host states had by decades to have to process all of our tank There was another Energy and Water agreed made technical sense. waste as high-level waste for disposal in a hearing where the same topic was The classification of this waste is key to geologic repository, including exhuming the brought before the Congress. The topic determining how to dispose of it. Therefore, tanks themselves, cutting them up and pack- is, how are you doing with your efforts if we’re unable to resolve this issue regard- aging them for disposal. to reach agreements with the three ing waste incidental to reprocessing, we face ALLARD: So what is the risk if you have leaving these tank wastes in place far longer to do that? States in question to find cleanup than we and our host states had anticipated. ROBERSON: Clearly, the risk to workers, standards they can agree to that are In fact, such delay would likely create more and frankly to the environment, is much environmentally sound, that will allow serious health and safety risk to workers and larger if we have to exhume tanks. Given things to go forward in a more expedi- members of the public by leaving the waste that we cannot proceed with our clean-up tious manner? in tanks longer and risking leaks to ground plans that were based on our waste classi- The truth is, we have spent billions water. fication order, we risk leaving waste in of dollars talking about cleaning up tanks much longer than we had planned ALLARD: Madam Secretary, why do you and we have done nothing but let tanks have to leave any of the waste residues be- right now. hind? We also add to environmental risk by the leak and have waste stay around for ROBERSON: Mr. Chairman, let me just need to dispose of the large amounts of met- years and decades. Now we have a new briefly describe the size of these tanks and als resulting from the almost 250 large tanks model. Now we have new money, $350

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5932 CONGRESSIONAL RECORD — SENATE May 20, 2004 million of new dollars, and we are mous consent to have printed the let- comparable cleaning, will be required on se- using commonsense approaches to ter from the Department of Health and lected tanks, although it is not considered to cleanup. Environment Control in South Caro- be economically practical for all 51 tanks. What are we trying to do in South The sampling methods used to characterize lina, saying this is good for the State, the HLW tanks at SRS have been evaluated. Carolina? If I can explain very quickly. they retain control over the tanks, and Several different sampling techniques were I am not a scientist, but I do have fair- this is environmentally sound. used. In general, the sampling process for ly good common sense. The 51 tanks There being no objection, the mate- Tanks 17 and 20 was adequate. NRC staff has that have high-level waste, those tanks rial was ordered to be printed in the concluded that available removal tech- will be cleaned up. The liquid in those RECORD, as follows: nologies have been extensively examined to tanks will be converted to glass logs, it JUNE 30, 2000. determine those that are both technically is called vitrification, and that will be Mr. ROY J. SCHEPENS, and economically practical, and that the re- Assistant Manager for High-Level Waste, U.S. sidual waste left in the tanks is limited to sent to Yucca Mountain. waste that cannot be removed by application What we are trying to do is clean Department of Energy, Savannah River Op- erations Office, Aiken, SC. of those technologies currently considered these tanks up in a manner consistent technically and economically practical for SAVANNAH RIVER SITE HIGH LEVEL WASTE with safety for South Carolina. The HLW tank cleaning. As the HLW tank clo- TANK CLOSURE: CLASSIFICATION OF RESID- sure process evolves over the next several amendment says no tank can be closed UAL WASTE AS INCIDENTAL decades the technical and economic feasi- unless the State of South Carolina DEAR MR. SCHEPENS: The U.S. Nuclear Reg- issues a closure permit. The letter from bility of other waste removal options should ulatory Commission (NRC) has completed continue to be evaluated. my Governor says, not only am I aware the review of the tank closure methodology The staff recommends that a set waste of what you are doing, Senator GRA- for the high-level waste (HLW) tanks at the sampling protocol should be developed and HAM, I support it because it will allow Savannah River Site (SRS). Under the terms followed. The number of samples obtained the tanks to be closed up 23 years and conditions of the Department of Energy will be a function of the tank contents, as ahead of schedule, it will save money, (DOE)/NRC Memorandum of Understanding well as the homogeneity of the sludge. All and we don’t have to worry about and the DOE/NRC Interagency Agreement, sample results should be compared to process both dated July 9, 1997, the NRC is acting in estimates to ensure consistency and accu- tanks deteriorating. an advisory capacity and is not providing The plan is to take all of the liquid racy. Any significant inconsistencies result- regulatory approval. The focus of the review ing from tank sampling and process history out and the film on the bottom, which was whether or not the residual waste left in should result in further sampling. will be 1 to 1.5 inches, treated with con- the HLW tanks, after cleaning, could be la- The staff review generally found that crete and other materials and the tank beled as incidental waste. The criteria for in- DOE’s methodology for removal of key radio- will be closed. To get that 1 to 1.5 cidental waste were approved by the Com- nuclides to the maximum extent economi- inches out of the bottom of that tank mission in the Staff Requirements Memo- cally and technically practical achieves the will cost $16 billion and take 23 addi- randum (SRM) dated February 16, 1993, in re- objectives of Criterion One. sponse to SECY–92–391, ‘‘Denial of PRM 60– The staff review of Criterion Two, ‘‘ . . . tional years and put people’s lives at 4—Petition for Rulemaking from the States wastes will be incorporated in a solid phys- risk for no good reason, no good envi- of Washington and Oregon Regarding Classi- ical form at a concentration that does not ronmental reason. fication of Radioactive Waste at Hanford,’’ exceed the applicable concentration limits Every State is trying to define what and described in the March 2, 1993, letter for class C low-level waste as set out in 10 is clean for their State. Washington is from R. Bernero, NRC, to J. Lytle, DOE. The CFR Part 61,’’ made use of information you trying to do the same thing. Maybe review focused on DOE’s ‘‘Regulatory Basis provided on initial tank inventories and ex- they will want half an inch. I don’t for Incidental Waste Classification at the Sa- pected removal efficiencies. Fourteen of the know what they want. Idaho is trying vannah River Site High-Level Waste Tank 51 HLW tanks are anticipated to meet Class to do the same thing. We have done it Farms,’’ ‘‘High-Level Waste Tank Closure C limits by utilizing concentration aver- Program Plan,’’ ‘‘Environmental Radio- aging with only bulk waste removal and and I have a Nuclear Regulatory Com- logical Analysis, Fate and Transport Mod- water washing. The other 37 tanks would re- mission report that says what is left in eling of Residual Contaminants and Human quire chemical cleaning via oxalic acid wash- that tank after treatment is waste in- Health Impacts from the F-Area High-Level ing to meet Class C limits, even with the ap- cidental to reprocessing, not high-level Waste Tank Farm,’’ ‘‘Industrial Wastewater plication of concentration averaging. DOE, waste. Closure Module for the High-Level Waste therefore, plans to rely on alternative con- The people in my State who regulate Tank 17 System,’’ and ‘‘Industrial Waste- siderations of the classification of waste, the environment have sent a letter say- water Closure Module for the High-Level rather than planning to use oxalic acid ing we want this agreement because we Waste Tank 20 System.’’ It also included the cleaning to meet Class C concentration lim- have final say over where you close the responses (letter from R. Schepens, DOE, to its. In particular, DOE relies on its plans to K. Stablein, NRC, September 30, 1998) to the solidify the waste in layers of grout, some 30 tank and the standards we have nego- request for additional information, as well as feet below the surface of the ground, and re- tiated we think are good for South information resulting from the April 1, 1999, lies on the disposal site, which it considers Carolina. The only reason we are hav- public meeting between NRC and DOE staff. to be stable. In addition, it appears that ing this argument is they don’t want The results of the NRC staff review are en- there is reasonable assurance that the per- one State to go—I guess some groups closed to provide input to your decision. formance objectives of 10 CFR Part 61, Sub- want to have the leverage of all three DOE is responsible for determining whether part C can be met without meeting the Class States to get standards they believe the residual tank waste can be classified as C concentration limits for all tanks. These are better than those by the South incidental. considerations are similar to those in 10 CFR Your tank closure methodology proposes 61.58 of the Commission’s regulations, and Carolina folks who regulate our envi- using the incidental waste criteria approved are viewed by DOE as providing comparable ronment, and they are trying to use by the Commission in the February 16, 1993 protection to an inadvertent intruder. Staff some standard that may not be nec- SRM and stated in the March 2, 1993, letter believes that concentration averaging in ac- essary for Idaho and South Carolina. from R. Bernero, NRC, to J. Lytle, DOE, that cordance with the Branch Technical Position We don’t have the same problems they were established for the treatment and dis- on Concentration Averaging, is generally ac- do in Washington. posal of removed HLW. In reviewing your ceptable in this context to meet Class C con- I will stand behind any Senator from methodology, staff took a generic perform- centration limits, and recognizes that the al- ance-based approach rather than strictly ap- Washington to make sure DOE doesn’t ternative provisions for waste classification plying the criteria developed in 1993. Cri- proposed by DOE are generally similar to run over them. I will stand behind any terion One from the March 1993, letter speci- those in 10 CFR 61.58. Staff recommends that Senator from Idaho to make sure they fied that ‘‘. . . wastes have been processed DOE develop site-specific concentration lim- can negotiate on their own terms. I am (or will be further processed) to remove key its for residual waste in the SRS HLW tanks asking this body to approve an agree- radionuclides to the maximum extent that is in order to bound the associated analyses ment that is environmentally sound, technically and economically practical.’’ and to provide a specific benchmark for sat- fiscally responsible, that affects South DOE identified only water washing and ox- isfactory cleaning of the tanks. Carolina, and is what all three States alic acid washing as technically feasible with As for the portion of Criterion Two that regards to removal of key radionuclides fol- addresses the solid physical form, the staff are trying to achieve. lowing bulk waste removal. Water washing believes that the waste has been sufficiently I have had printed in the RECORD the and bulk waste removal have been shown to immobilized to help prevent inadvertent in- letter from my Governor. I have had be capable of removing 98 percent of the ini- trusion. By utilizing three different types of printed the study from the Nuclear tial tank activity. Depending on the initial grout, the waste is further protected. The Regulatory Commission. I ask unani- sludge inventories, oxalic acid washing, or initial reducing grout pour helps to reduce

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5933 the mobility of the radionuclides. The mid- nents as achieving the objectives of Cri- Mr. AKAKA. Mr. President, I rise dle layer of grout provides a solid foundation terion Three. today in support of the fiscal year 2005 to guard against subsidence, and, finally, the The worker is protected by DOE regula- Defense authorization bill. I want to top layer of strong grout provides protection tions which are analogous to 10 CFR Part 20. against physical penetration of the waste. The worker protection performance objec- first commend Chairman WARNER and Therefore, the physical form aspect of Cri- tives of § 61.43 is, therefore, considered to be Senator LEVIN, who have continued terion Two appears to be achieved by our adequately addressed. By filling the tanks their tradition of strong and bipartisan methodology. with three layers of grout, the site stability leadership. I also want to thank my Assessing Criterion Three, ‘‘ . . . wastes performance objectives of § 61.44 can also be friend, colleague and subcommittee are to be managed, pursuant to the Atomic satisfied. chairman Senator ENSIGN, for his co- The staff recommends that future tank Energy Act, so that safety requirements operation and leadership throughout comparable to the performance objectives closure modeling should include a more thor- set out in 10 CFR Part 61 are satisfied’’ in- ough PA for all predicted or known source this process this year. volves the evaluation of the tank farm per- terms (i.e., all HLW tanks) in the F–Area While I think the bill before us goes formance assessment (PA). Tank Farm and including the following: a long way to supporting the needs of DOE has indicated that it intends to meet early degradation of grout, degradation of our service men and women, I do want a 4 mrem/yr drinking water dose limit. From ancillary equipment and piping, combined to highlight a few concerns. standard dose modeling methodology, the aquifer scenarios, conservative distribution First, I am pleased that the adminis- drinking water dose is expected to be the coefficient analysis, conservative radio- tration finally followed Congress’ lead nuclide dispersion analysis, submerged largest dose contributor pathway. It appears and sent a request for an additional $25 from the performance assessment that the tanks, conservative analysis for the hori- drinking water dose will be less than the 4 zontal versus vertical flux radiouclide trans- billion to begin to address the ongoing mrem/yr drinking water dose limit, and by port processes for the saturated zone, and a military operations in Iraq and Af- extrapolation, that the individual dose will complete all-pathways dose assessment. See ghanistan for the first few months of be less than the 25 mrem/yr total effective the enclosed Technical Evaluation Report fiscal year 2005. While I do not support dose equivalent (TEDE) requirement of 10 for further details and additional rec- the structure of the administration’s CFR 61.41. In meeting the performance objec- ommendations. In addition, future tank closure modeling (including individual tank clo- request, in part because it does not do tive of § 61.41, reliance on institutional con- enough to ensure accountability for trols beyond 100 years will not be needed, al- sure modules, as well as fate and transport though DOE has proposed institutional con- modeling for H–Tank Farm) should not refer how these funds would be used, I do trols in perpetuity. Future PAs should focus to, or be reliant on in any way, previous support its intent, and I think it is im- on meeting the performance objectives of 10 modules. This will avoid confusion and er- perative that we include an authoriza- CFR Part 61 Subpart C and should not rely rors associated with outdated data and as- tion of additional funding in the final on any active institutional controls beyond sumptions. By generally achieving each of the per- version of this bill. 100 years. The NRC staff has concluded that formance objectives stated in 10 CFR Part 61, Second, while I support every action the DOE methodology will achieve safety ob- Subpart C, the staff has concluded that the to aid our brave men and women in the jectives comparable to § 61.41. tank closure methodology is consistent with armed forces, who are making so many To show protection of an inadvertent in- the objectives of Criterion Three. sacrifices as they fight for our free- truder, the standard agriculture scenario Based on the information provided the consists of a farmer who lives at the tank doms, I am concerned and disappointed staff has concluded that the methodology for by some of the actions we have taken farm, and drills a well near the tank farm tank closure at SRS appears to reasonably and then uses the well water to irrigate his analyze the relevant considerations for Cri- in the bill we are reporting to the Sen- crops and feed his livestock as well as him- terion One and Criterion Three of the three ate. My greatest concern lies, as it did self. DOE–SR has provided only calculated incidental waste criteria. DOE would under- last year, in the reductions we have drinking water doses for this intruder sce- take cleanup to the maximum extent that is made in the working capital funds of nario. DOE’s intruder PA showed that the technically and economically practical, and the military services and defense agen- maximum drinking water dose the farmer would demonstrate it can meet performance cies. While I disagreed with the cuts in would receive via the ground-water pathway objectives consistent with those required for was 130 mrem/year at a well distance of 1 disposal of low-level waste. These commit- these accounts last year, the ones this meter from the tank farm, at approximately ments, if satisfied, should serve to provide year are even more harmful, as DOD is 700 years. According to DOE–SR, the drink- adequate protection of public health and already tapping these accounts to the ing water dose pathway is expected to be the safety. Further, DOE’s methodology relies greatest possible extent to get through highest dose contributor and, therefore, pro- on alternative classification considerations the remainder of this fiscal year. So vides reasonable assurance of protection of similar to those contained in the Commis- they will already be well below normal individuals from inadvertent intrusion using sion’s regulations at 10 CFR 61.58. The NRC cash balances as they enter fiscal year a 500 mrem/year limit. The DOE–SR analysis staff, from a safety perspective, therefore assumes all activity is contained within the does not disagree with DOE–SR’s proposed 2005, and the $1.6 billion in reductions reducing grout layer located at the bottom methodology, contingent upon DOE reaching we have recommended in this bill will of each tank, and that this contaminant zone current goals for bulk waste removal, as well increase the risk of readiness problems is not disturbed. This then implies that there as water and chemical washing, such that by decreasing DOD’s ability to provide is no activity in any vertical component of the performance objectives comparable to spare parts, maintenance, and other the tank structure and, therefore, a typical those stated in Subpart C 10 CFR 61 are met. support for our forces that are critical construction scenario (with a 10 foot deep In addition, NRC judgment as to the adequacy of the methodology is dependent on to their continued success. By cutting basement) would not disturb any contami- into these accounts, I believe we are nated portion of the tank structure. verification that the assumptions underlying The staff recommends that future perform- the analysis are correct. sending a message that we do not sup- ance assessments for SR tank closures, in- The analysis performed regarding the pro- port our troops, a message that I know cluding individual tank closure modules, and posed tank closure methodology for the HLW could not be further from the truth. the H-Tank Farm Fate and Transport Mod- tanks located at the DOE Savannah River Our forces deserve armored vehicles eling, include the full agriculture scenario Site was performed by NRC according to the to protect them in Iraq, but they also terms and conditions of the established (all pathways) as well as the discovery sce- deserve the spare parts they need to nario, as described in the Draft Environ- Memorandum of Understanding and the Interagency Agreement. The analysis and re- keep those vehicles running. When our mental Impact Statement for 10 CFR Part troops come home, they deserve to 61. Staff also notes that closure of ancillary sulting NRC conclusions are specific only to piping and equipment must consider an inad- the 51 tanks located at the DOE Savannah have those vehicles repaired, rather vertent intruder. That is, performance as- River F and H Area tank farms, and related than wait for maintenance from a piping and equipment. The NRC assessment sessment must consider disturbed surface depot until parts arrive that could is a site-specific evaluation, and is not a piping and equipment, which, in addition to have been ordered earlier if the work- precedent for any future decisions on waste tank sources, must not exceed a TEDE of 500 classification scenarios at other sites, paring capital funds had had sufficient mrem per year (all pathways) for the dis- ticularly sites under NRC jurisdiction. cash. We owe them the courage to covery and agricultural scenarios. Further- Sincerely, make tough decisions to ensure that more, all external components (e.g., piping) WILLIAM F. KANE, those needs are met now, not when fu- have not been demonstrated to provide the Director, Office of Nuclear same protection to an inadvertent intruder ture funds not yet requested may or Material Safety and Safeguards. as the residual waste in the HLW tank bot- may not become available. toms. Without the proper intruder scenarios Mr. GRAHAM of South Carolina. On the positive side, I am pleased (e.g., intruder-agriculture) the NRC does not With that, to be continued. Thank you. about our continued support for mili- recognize in-situ disposal of external compo- Happy holidays. tary construction and family housing

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5934 CONGRESSIONAL RECORD — SENATE May 20, 2004 needs that are so critical to quality of spent Federal money on what amount- have notable omissions and other life for our service men and women. I ed to covert propaganda, by producing weaknesses. They say it is a question also support many of the provisions we videos about the Medicare changes that of prudence and appropriateness for have included that will further improve were made to look like news reports. HHS’s decision to communicate by the management of the department. I Portions of the videos which had been placing advertising in Roll Call, which particularly appreciate the bipartisan aired by 40 television stations around we all know is something that we read effort that the staff has made to ad- the country do not make it clear that and certainly our constituents and the dress a wide range of procurement the announcers were paid by Health seniors and the disabled of the country issues, environmental issues, and long- and Human Services, or paid by tax- do not read. standing DOD financial management payers, and that they were not real re- This goes on and on, questions of vio- problems. porters. lating the law and questions of an eth- While I support the overall actions In fact, the administration has vio- ics violation. taken in this bill, and commend all of lated two Federal laws. This comes Now we see, in fact, that the admin- my colleagues for the hard work that from the nonpartisan arm, the Con- istration specifically has broken two they have invested, as ranking member gressional Investigative Services, the different laws. One of the questions is, of the Readiness Subcommittee I have General Accounting Office. What do we do about that? I think the mixed feelings about our actions. We They indicated two different laws public deserves the answer to that. have increased funding for some key that the administration broke in these What is it that we do when the admin- programs, but at the expense of others ads on Medicare. istration violates the law as it relates where the impact might be more easily No. 1, the Omnibus appropriations to spending public dollars and adver- obscured. Our experience with the Air bill of 2003: The prohibition on using tising as it relates to this Medicare Force over the last few years has appropriated funds for publicity or bill? shown that there is a direct correlation propaganda purposes. A colleague of mine is suggesting— between increased spare parts and mis- No. 2, the Anti-Deficiency Act: In- since we know it is a campaign year sion capable rates for aircraft; those curred obligations in excess of appro- and we know this is put forward cer- spare parts are provided through the priations available for that purpose. tainly to put the best light on this for Air Force Working Capital Fund. The This is just one more example of the the administration—the Senator from Navy expects to have only a few days ongoing saga in what happened in rela- New Jersey, Mr. LAUTENBERG, has sug- of cash on hand at the end of this fiscal tionship to the passage of the new gested that the President repay the year, and may be forced to bill cus- Medicare law and all of the irregular- funds from his Presidential campaign. tomers before they actually receive ities—the pronouncement that, in fact, Given what we know is happening their orders. And the Army faces a sit- the law was violated and the other eth- this year and the fact that certainly uation where its orders for parts and ics investigations going on. the administration wants to have the other key items exceed its cash on Let me go through some of what else best face put on this Medicare package hand by more than 700 percent. War- is happening. It is stunning, actually, and certainly has everything to gain time, when we see a great expansion of when you look at the full picture. I from using public dollars to advertise customer needs for readiness and large would argue that this is absolutely in that, I think it would be appropriate to fluctuations in required support, is not the wrong direction and against the in- ask the President to repay that from the time to take on more readiness terests of those who count on Medi- his campaign funds. In fact, they are in risk by decreasing cash balances in the care—our seniors and disabled, and the violation of the law. working capital funds. It hurts readi- American taxpayers who have been We have seen questionable action ness, and it hurts the men and women funding what the GAO says are illegal after questionable action. The head of who serve in uniform. ads. the center of Medicare and Medicaid, By reducing funding for the readiness In addition to that, 2 weeks ago, the after writing this bill and working accounts and failing to provide any Congressional Research Service con- closely with the industry that benefits supplemental funding for 2005, this bill cluded that the administration poten- from it—the pharmaceutical industry— does not do enough to meet the most tially violated the law in a related leaves to take a job with folks involved pressing needs of our men and women matter in which the Medicare Pro- in the industry that will make money in uniform. gram’s chief actuary has said he was off of this new law. I will support this bill, and I urge my threatened with firing a year ago if he We have seen other individuals leav- colleagues to do the same. I think it is shared with Congress cost estimates ing and going into lucrative positions a good bill that could have been better, that the Medicare legislation would be where they will themselves be making and I will continue to work throughout one-third more expensive than what we money off of this new law. the rest of the authorization process to were told—one-third more expensive We know it has been analyzed and improve it. than the $400 billion the President said that the pharmaceutical industry will f it would cost. be making, during the next 8 years, Also, the House ethics panel mean- about $139 billion in new profits. That MORNING BUSINESS while is investigating whether Repub- is tough to do if you are lowering Mr. WARNER. I ask unanimous con- lican leaders attempted to bribe or co- prices and tough to do if you are pro- sent that the Senate now go into a pe- erce a Republican House Member—in viding a real Medicare benefit to sen- riod for morning business, with each fact, someone in my own State—to iors which they can afford. Senator permitted to speak no longer vote for the bill before it passed by a The reality is that is not what this than 10 minutes. few votes just before dawn after the bill does. This bill doesn’t allow Medi- The PRESIDING OFFICER. Without longest record rollcall in the history of care to be able to negotiate group dis- objection, it is so ordered. the House. counts as we do through the VA. The Senator from Michigan. We have numerous other challenges It creates a situation where up to 40 f and questions. It is important to note million seniors and disabled are locked for the record that the latest investiga- into the highest possible prices—not MEDICARE VIDEOS tion by the GAO was not prompted by only in our country but in the world. Ms. STABENOW. Mr. President, as our side of the aisle, nor requested. It We have a bill that locks in high we are wrapping up the session this was something they looked into on prices. week, I think it is very important to their own separate from other concerns The industry is making billions of note what we all read in the Wash- which have been raised. We have raised dollars from it. People from the admin- ington Post today. Something very se- issues that relate to the advertising we istration are going to work for the in- rious was clearly spelled out. That is have seen on television. dustry or related businesses that will that the General Accounting Office has Concerning materials, the GAO indi- be making money off of this process. concluded the U.S. Department of cated that, while they were not specifi- We now see a situation where, again, Health and Human Services illegally cally in violation, the HHS materials the taxpayer money that was put aside

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5935 to be able to explain the Medicare bill I am very hopeful between now and Armed Services Committee. In fact, has actually been used in a way that is the end of the session in the fall that the committee even said they are not in violation of the law. we are going to turn around and get part of our issues. Those are environ- I say again that the GAO concluded this right. Scrap the old bill and pass a mental policies or policies for other that the Department of Health and new one that focuses on helping our committees and referred to those spe- Human Services illegally spent Federal seniors and bringing down prescription cific committees. money—taxpayers’ money—on what drug prices for everyone. And by the I read to my colleagues rule XXV amounted to covert propaganda by pro- way, it is time to follow the law in the earlier regarding what the jurisdiction ducing videos about the Medicare process. of the Senate Armed Services Com- changes that were made. The PRESIDING OFFICER. The Sen- mittee is. It is specific to the national Another piece of that which is ex- ator from Washington. interests that were necessary in cre- tremely disconcerting to me is we now f ating nuclear fuel. That was an off- have discount cards for seniors for shoot of the reactors used in the devel- those who qualify for Medicare—de- NUCLEAR WASTE opment of plutonium for our efforts in pending on where you live—and there Ms. CANTWELL. Mr. President, I World War II and the cold war, but could be 60 or 70 different cards that take a few minutes to clarify points they do not have the legislative over- you now can attempt to wade through from the debate we had prior to moving sight of the cleanup policy. That is the to try to find a discount card that will off the DOE bill and the specifics of the prerogative of other committees, the help you when you really are strug- Graham amendment. Energy and Natural Resources Com- gling to pay for your medicine. I know my colleague, the Senator mittee, the Environment and Public We are now finding since passing the from South Carolina, is probably some- Works Committee. Medicare bill that many of the name where still in the vicinity of the Sen- To make my point, I took section brand companies have dramatically in- ate. I, too, admire the Senator from 3116 of this bill, this section that re- creased the prices of their products in South Carolina on a variety of issues, classifies waste, and introduced it anticipation of the discount card. The particularly on National Guard issues today as my own legislation and asked base is higher. That is like the and some of the challenges we have for a referral. If we took this section on storeowner who marked up the product had, both coming from States that reclassification now as a stand-alone 25 percent and then put a sign out that have been hard hit economically and bill, let’s see where it was referred to. says: ‘‘15 percent sale.’’ That is what is challenged with a large number of peo- That bill, Senate bill 2457, by Senator happening to many of our seniors. ple participating in our efforts in Iraq CANTWELL, was referred to the Energy To add insult to injury, those who and Afghanistan. This issue that he and Natural Resources Committee. purchase cards—most of them are pur- and I disagree on obviously is one of That proves my point, that this policy chased for about $30—lock themselves utmost importance and certainly one change is not the jurisdiction of the into one card for a year after wading that needs a lot of attention by the Senate Armed Services Committee, through all of the different cards. They Members of this body. We will get that and the Senate Armed Services Com- pick the one that covers the medicines time and attention when we return to mittee should not try, in a closed-door they use. They purchase the card and DOE after the recess. session, in secrecy without having a they are locked into it for a year, but I bring up a couple of points made public hearing, without having a public the business, the industry can change that are the crux of my concern about debate, to change policy of this signifi- every 7 days the list of what is covered. this legislation; that is, that section cant nature which is not the jurisdic- Today, four medicines are not covered; 3116 of the underlying bill, the Defense tion of their committee. next week maybe two aren’t covered; authorization bill, attempts to reclas- I ask unanimous consent to have and next week maybe none of them are sify high-level nuclear waste into a printed in the RECORD a letter from the covered. low-level material and allow it to be ranking member of the Senate Energy Why would this be set up like this? It disposed of in a different way. and Natural Resources Committee that is confusing. They are not real dis- I object to that and I object to the was also sent to the Senate Armed counts. The discounts are changed. It process by which that legislation was Services Committee chairman and is certainly not set up for the people drafted. The Senate Armed Services ranking member asking them not to who depend on Medicare every day. pass this legislation out of committee, Once again, the implementation of Committee does not have jurisdiction and that it was the jurisdiction of the the bill that passed is being done in a over the ability to reclassify waste. Energy and Natural Resources Com- way that helps the industry that al- That is a change to the Nuclear Waste Policy Act drafted in 1982. If the De- mittee. ready makes billions and billions of There being no objection, the mate- dollars in producing the products, but partment of Energy wants to have that rial was ordered to be printed in the it is not helping our seniors. We want debate, then the Department of Energy RECORD, as follows: industry to be successful. should come down here and have hear- Taxpayers help subsidize the billions ings before the appropriate committees U.S. SENATE, COMMITTEE ON ENERGY of dollars of research given free to the and discuss that issue. But to have AND NATURAL RESOURCES, Washington, DC, May 5, 2004. industry. We provide tax credits, tax such a major policy change of 30 years’ policy since 1982 and 50 years of science Hon. JOHN W. WARNER, Chairman, deductions, writeoffs and patents. All Hon. CARL LEVIN, Ranking Democratic Mem- we ask at the end of the day is that saying this is what high-level nuclear ber, people can afford their medicine, that waste is and one day changing it in the Committee on Armed Services, people can afford oftentimes the life- DOD bill is beyond absurd. Obviously, U.S. Senate, Washington, DC saving medicine they need for their that is why we have spent time this DEAR SENATOR WARNER AND SENATOR cancer, diabetes, or other chronic dis- afternoon talking about it. LEVIN: I am writing to urge you not to in- ease. The chairman of the committee clude language relating to the reclassifica- This is serious. We debated and had a asked me in a question whether that tion of high-level radioactive defense wastes committee has jurisdiction over the proposed by Senator Graham of South Caro- lot of hoopla about a new law in Medi- lina in the defense authorization bill. care. We have seen nothing but broken issue. I know that DOE many times has For thirty years, it has been the policy of promises, broken laws, broken ethics tried with various environmental this nation that the high-level radioactive rules since the adoption of the law. I issues to have them go through the defense wastes temporarily stored in tanks suggest it is time to start over. We can Senate Armed Services Committee, en- at Savannah River and elsewhere would, in do better. It is time to scrap this ben- vironmental issues such as the Re- time, be removed from those tanks and per- efit, start over, get it right, follow the source Conservation Recovery Act, manently disposed of in new facilities li- law, follow the ethics rules, negotiate Comprehensive Environmental Re- censed by the Nuclear Regulatory Commis- sion. Enactment of Senator Graham’s group prices, get a real benefit, bring sponse, Compensation, and Liability amendment would abandon that policy and prices down. That is what our seniors Act, the Endangered Species Act. All of permit the Department of Energy, in its dis- expected the first time. It is time we those, even though they are DOE cretion, to reclassify an unknown part of the make a commitment to get it right. issues, do not go through the Senate tank wastes as transuranic or low-level

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5936 CONGRESSIONAL RECORD — SENATE May 20, 2004 waste and either leave it where it is or ship ting it in a geological isolation, as we latory Commission that was specific it to New Mexico for disposal in the Waste have suggested, and others have sug- about the exact proposal that is in this Isolation Pilot Plant as transuranic waste, gested, at Yucca Mountain. bill and get their response, the issue is or to some other state for shallow land bur- A 1992 report by the Pacific North- they are not in charge of short-term ial as low-level waste. west Laboratory said: In addition, Senator Graham’s amendment waste disposal. They are in charge of would exempt the Department’s handling of The grouts will remain at elevated tem- this geological isolation solution we in these wastes from licensing and regulation peratures for many years. The high tempera- Congress and others have been looking by the Nuclear Regulatory Commission. Its tures expected during the first few decades for, and basically asking questions enactment would have profound con- after disposal will increase the driving force about, and saying, Where are you going sequences for the nation’s high-level nuclear for water vapor transport away from the grouts; the loss of water may result in crack- to take the vitrified waste and put it? waste policy, which is under the jurisdiction They are not the regulatory entity of the Committee on Energy and Natural Re- ing . . . A 1992 study on this issue regarding over those short-term issues. sources. It would also interfere in litigation I think the Nuclear Regulatory Com- now pending before the United States Court just pouring cement and sand on nu- mission has not fully addressed the of Appeals for the Ninth Circuit. clear waste and somehow storing it and question. I think perhaps we should For all of these reasons, I urge you not to solidifying it in the ground said there send them a more direct question to include Senator Graham’s amendment in the would be a result of cracking. defense authorization bill. What we know in Washington State which we can get a more specific an- Sincerely, is we already had the cracking of the swer. JEFF BINGAMAN. We will hear a lot more about this tanks. We already had a plume of nu- issue when we return from the legisla- Ms. CANTWELL. Mr. President, I am clear waste going toward the river. So tive recess. But I assure my colleagues, trying to make the point that the we already know what this situation is we are going to continue to talk about ranking member of the committee, and all about. the fact that we in Congress cannot now the parliamentarian, have agreed In 2000, the National Academy of have this significant a change in a pol- that this is not the jurisdiction of this Sciences said: icy by simply sneaking language into a committee. [W]aste tank residue is likely to be highly I ask my colleagues to weigh that in radioactive and not taken up in the grout, so Senate Armed Services Committee bill the time we have away from here, to there is substantial uncertainty. . . . that does not have jurisdiction over drop this policy as it relates to trying Another 2000 study by the National this issue and make a major policy change that is 30 years of law—30 years to reclassify waste without having the Academy of Sciences says: of established law—and 50 years of sci- proper public hearing and public com- [Using grout,] the ability of the site to re- ment about the issues. liably meet long-term safety performance entific evidence and override that in a Yes, everyone has heard of DOE at- objectives remains uncertain. short period of time without a full dis- tempts to try to reclassify this waste. I think there is much science that cussion and debate. This underlying bill language needs It is well known that they actually basically says we do not think grout to be stricken. We need to get about tried to do it by order themselves and can work. Obviously, we do not know the nuclear waste cleanup that the were shot down in court. They were what the Department of Energy is try- science says we should do; that is, re- shot down in court because specifically ing to do, because they want to leave they do not have the authority. They moving the high-level waste and not an unspecified amount of waste in the simply trying to do cleanup on the have to change the definition under the ground and not be specific about that. Nuclear Waste Policy Act. If they want quick by calling it grout. So it is very difficult for us to see. I yield the floor and suggest the ab- to do that, debate it on the Hill, have I would also like in my short time this discussion, and move forward. sence of a quorum. here, because I know each Member is The PRESIDING OFFICER. The I make a point that cleanup around limited in time this evening, to refute clerk will call the roll. America—whether it is in South Caro- the letter that was submitted by the The bill clerk proceeded to call the lina, in the Savannah River, or wheth- Nuclear Regulatory Commission. While roll. er it is Washington State at the Han- we do not know what the Nuclear Reg- Mr. DASCHLE. Mr. President, I ask ford reservation, whether it is Idaho or ulatory Commission was asked to com- unanimous consent that the order for any other facility in this country— ment on, what they ended up com- quorum call be rescinded. should be continuing. There is nothing menting on was not the underlying lan- The PRESIDING OFFICER. Without about any court case or any court bat- guage in the DOD authorizing bill. objection, it is so ordered. tle that prohibits the Department of They did not comment on the fact that f Energy from continuing with cleanup. I the Graham language would signifi- ROBERT A. (BOB) BEAN hope they understand that is the judg- cantly change the Nuclear Waste ment and the clarification of the court Power Act and classify high-level Mr. DASCHLE. Mr. President, earlier that ruled. waste as something else. today many of our Senate family at- If my colleague from South Carolina What they did comment on was the tended the funeral of a former Senate is hearing that nuclear waste cleanup fact that you could take the entire employee, Robert Bean. Bob started may be going slow or may be put on tanks out of the ground and it would be here in the Senate when he was 15 hold in the future, that is the absolute very expensive, which I do not know if years old as a Senate page under the wrong message from the Department of people can imagine, because the Han- sponsorship of Majority Leader Mike Energy. Congress has appropriated ford site is miles and miles of acres—I Mansfield. Following his page gradua- funds, has appropriated funds in the think earlier we said something close tion Bob moved into the Democratic past, and they should be going about to one-third the size of the State of cloakroom where he continued his out- their cleanup job. Rhode Island. That is how big the Han- standing service to our members. He What we are not going to do as a ford reservation is—580 miles of land. rose to the position of Assistant Sec- body is whitewash a change of signifi- These tanks that have stored the spent retary for the Majority and then was cant nature where we do not have fuel are enormous. appointed by Senate Majority Leader science backing that says we ought to The Nuclear Regulatory Commission George Mitchell to the position of Dep- reclassify this waste. In fact, science is saying: We do not know if it is fea- uty Sergeant at Arms in 1990. He has been very specific in saying this is sible to take out the tanks entirely. moved to the Treasury Department’s not a simple proposition. Well, no one ever said we expected to legislative affairs office in 1995 and re- In 1990, the National Academy of take out the entire tanks. What we mained there until 1999 when he re- Science said: said was we think the tanks have to be turned to the Hill to work on the House There is strong worldwide consensus that cleaned and the site has to be cleaned. side as the minority staff director of the best, and safest, long-term option for And that is the removal process we the House Administration Committee. dealing with HLW is geologic isolation. should continue to do. He retired from the Hill in 2002 and he Again, not grouting waste in existing So I think while we would be wise to had just recently begun work for the tanks but removing the waste and put- get a letter from the Nuclear Regu- Jefferson Consulting Group.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5937 Throughout these years of service Bob was always improving himself and, in ‘‘I measure all of my daybreaks at home, Bob earned his undergraduate degree the process, improving the lot of others. ‘‘Against the Chesapeake mornings I have from George Washington University In 1995, Bob was asked by Secretary Robert known, and his law degree from American Uni- Rubin to join him at the Treasury Depart- ‘‘Anchored in the stillness of emerging light, ment as the Deputy Assistant Secretary of ‘‘Waiting for dawn to open my shadowed versity’s Washington College of Law. the Treasury for Legislative Affairs, where eyes. But all of these accomplishments pale his extraordinary knowledge of the Congress ‘‘A grove of tall masts is tracing circles in comparison to his personal accom- and his reputation on Capitol Hill for hon- ‘‘In the sky as restless keels and unmanned plishments. Bob was known as a friend esty and insight would help guide our Nation rudders by anyone who came into contact with to unprecedented prosperity in the 1990s. ‘‘Stain the blue water with rippling patterns; him. Whether you were a member of Given the wide breadth of Bob’s experience ‘‘Brush stokes from the steady hand of God.’’ Congress or a new staffer, lost on the on Capitol Hill and in the Executive Branch, Bob has joined God now on one last voyage Hill, Bob would find a way to help you, I was ecstatic that I had the opportunity to that beckons us all. hire him in 1999 to serve as the staff director Yes, his heart has been stilled. and he would make sure you knew of the Committee on House Administration. But ours have been enriched beyond meas- that, if you ever needed help again, Bob’s service in that position was an im- ure-and forever—for having this opportunity he’d be there to assist you. The church mense advantage to me, the Committee, and to share time with this good and decent man. was filled today and that was a testa- the Congress, which he loved. ment to the type of person Bob was to Bob was a fierce partisan. He believed so many people. He died at the age of 43 deeply in the Democratic party and its prin- f leaving behind his mother, Margaret ciples, and he lived them. and his brothers John, Kenneth, and But his political convictions never trans- HONORING OUR ARMED FORCES lated into unthinking antagonism toward Brian. Bob also left behind a Capitol foes. PETTY OFFICER 2ND CLASS TRACE DOSSETT Hill community united in mourning And I saw that first-hand during the nego- Mr. GRASSLEY. Mr. President, I the loss of one of its most cherished tiations on bipartisan election reform, a leg- would like to pay tribute to Petty Offi- possessions—a true friend. I would like islative effort that was perhaps Bob’s legacy cer 2nd Class Trace Dossett who val- to extend my sympathies to his moth- as staff director on the House Administra- iantly gave his life for his country on er, his brothers and to all those who tion Committee. Sunday, May 2, 2004. Petty Officer were lucky enough to know him. Bob played to win, but he played by the Dossett was one of five Navy Seabees Mr. President, I ask unanimous con- rules. And Congressman Bob Ney, the Repub- lican chairman of the Committee and his from Naval Mobile Construction Bat- sent that the eulogy given earlier staff, knew that; and they respected and talion 14 killed during a mortar attack today by Congressman STENY HOYER be trusted Bob for it, which in my judgment is on the Ramadi Marine base in Iraq. I printed in the RECORD. one reason why we were able to work to- offer my deepest sympathy to his wife, There being no objection, the mate- gether, across the partisan divide, to address rial was ordered to be printed in the the problems in our election system. Angela, their two daughters, Cassidie RECORD, as follows: This week, Chairman Ney said of Bob: and Raimi, and his parents, Larry and ‘‘There were many times when the process Cheryl of Wapello, IA. EULOGY FOR ROBERT A. (BOB) BEAN was in danger of breaking down. Bob Bean Petty Officer Dossett was a 1985 grad- Father Nash, Father Polland, Members of refused to let that happen, though. He was a uate of Wapello High School in St. John’s Parish, Friends: stand-up guy, a tremendously hard worker I first want to express my deepest condo- Wapello, IA. He was respected in the and truly great American.’’ community for his strong mind and lences to the Bean family, Bob’s mother, As anyone who walked through the Capitol Margaret; his brothers, John, Kenneth and with Bob knows, he knew an unbelievable sense of devotion to serve our country. Brian; his sister-in-law, Patti; niece, Rachel; number of people. House members and Sen- Trace joined the Navy shortly after and nephew, Christian. ators. Staffers. Capitol Police officers. Main- graduating from high school and ended Your loss, I know, is as immeasurable as it tenance workers. And cafeteria workers. his six year tour in the early 1990s. He is unexpected; that this good, decent, kind All who knew him were his friend. joined the Naval Reserve a year ago man who graced and brightened your lives— Walking through the Capitol with Bob was and was activated in January. I am and all of ours—was summoned by our Cre- a constant reminder of his experience and ator, at what seems to so many of us as the proud of the patriotism displayed by popularity on Capitol Hill—with people from Petty Officer Trace Dossett and his ex- twilight of youth. all walks of life. And he returned their affec- The passing of one who had so much to tion with kindness, consideration and re- emplary commitment to defending offer, who yearned to serve others, who con- spect. America. I offer my condolences to his tinually took it upon himself to help others, A friend of Bob’s for nearly 30 years, Shar- family and close with the words of his and who was enjoying what seemed to be the on Daniels, the long-time executive assistant wife, ‘‘Trace died a hero and he would prime of his life, cuts particularly deep. for Congressman Richard Gephardt, said of But the truth be told, Robert A. Bean, son have had it no other way.’’ Bob: of Margaret and Louis, lived more in 43 years PFC BRANDON CHAUNCY STURDY ‘‘Bob is the kind of friend you could call at than most do in twice that time. two in the morning, and ask: Can I borrow Mr. GRASSLEY. Mr. President, I rise Bob’s service to our nation started early, today to pay tribute to PFC Brandon when at the age of 15, he began working as a twenty thousand dollars? And, by the way, Senate page under the former majority lead- can you bring it to me by 4 a.m. out on Chauncy Sturdy, the fourteenth Iowan er Mike Mansfield. Route 50? And Bob would not only do it. He to be killed in Iraq in brave service to He later served on the staff of the demo- would ask if there was anything else he our country. PFC Sturdy was a ma- cratic cloakroom in the Senate, which is could do—and, of course, when he showed up chine gunner in the 2nd Battalion of where I first met him after being elected to at 4 a.m., he would be wearing a suit and the 1st Marine Regiment in the 1st Ma- tie.’’ Congress. rine Division. I offer my deepest sym- I couldn’t help but be impressed with Bob, And, then, of course, there was Captain by his willingness to help on matters big and Bean, skipper of the ‘‘Margaret B.’’ Fisher- pathy to his parents, Shelly Rivera and small, his strong bearing, and his ability to man extraordinaire. David Sturdy and his fiance´, Tricia get things done. He loved the bay and he loved his boat. Johnson. Bob was not passing time. And all who sailed and fished with him re- PFC Sturdy was killed by the explo- His talent, his character, his personality member that experience as one filled with sion of a homemade bomb in Iraq on led to his being selected for ever-increasing the joy of life and adventure. Thursday, May 13 in the Al Anbar responsibility: serving first as the assistant How appropriate that God chose to take secretary for the democratic majority in the Bob home from his beloved bay and boat. Province near Fallujah. I thank him Senate and then as deputy sergeant at arms, Bob loved his family and all of us, as well. for his patriotic duty to his country where he performed the duties of chief law He was a blessing to each of us—a kind and and am proud to honor the courage he enforcement officer, protocol officer and gentle man, who succeeded in all of his ca- boldly displayed as a Marine. PFC manager of support services in the Senate. reers: government leader, businessman, cap- Sturdy was a 2003 graduate of In that position, he supervised thousands tain, consultant. Urbandale High School in Urbandale, of employees and displayed his considerable But his greatest success was as a human IA. A statement released by Brandon’s management skills. being. So as we pay our respects to a beloved And yes, along the way, he earned a bach- son and brother, a trusted and good friend, a family describes him as ‘‘the best of elor’s degree from George Washington Uni- colleague, let me end by quoting from the the best’’ who ‘‘set the bar high for us versity as well as a law degree from Amer- poem ‘‘Chesapeake Mornings’’ by Chris to reach for’’. He was a top notch Ma- ican University. Kleinfelter: rine who had already been awarded the

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5938 CONGRESSIONAL RECORD — SENATE May 20, 2004 National Defense Medal and a Purple record of the U.S. Senate for his serv- On behalf of all Vermonters, as an Heart. Brandon Sturdy died a hero ice to this country and for his profound American citizen, and as a member of fighting to preserve freedom. He was a commitment to freedom, democracy one of several grateful generations, I brave patriot whose presence will be and peace. When I think about the un- welcome our proud veterans to Wash- missed. I am proud of the model of fortunate pain that comes with the loss ington on the occasion of the dedica- service he provided to Iowans and I of our heroes, I hope that families such tion of the World War II Memorial. We again offer my condolences to his fam- as Bill’s can find comfort in the words thank you for all that you have done, ily. of the prophet Isaiah who said, ‘‘He and our Nation will forever honor your MAJ. WILLIAM E. BURCHETT will swallow up death in victory; and sacrifices. Mr. BAYH. Mr. President, I rise the Lord God will wipe away tears from We cannot thank you enough, but we today with a heavy heart and deep off all faces.’’ can, and we will, always remember. sense of gratitude to honor the life of a May God grant strength and peace to f brave man who served in the Indiana those who mourn, and may God be with MEMORIAL DAY 2004 AND WWII Air National Guard unit stationed in all of you, as I know He is with Bill. MEMORIAL DEDICATION Terre Haute, IN. Major William E. f Burchett, 35 years old, died during a Mr. DOMENICI. Mr. President, on training mission when the F–16 he was MONUMENT IN TRIBUTE TO ‘‘THE this Memorial Day, I encourage my fel- flying collided with another F–16 fight- GREATEST GENERATION’’ low New Mexicans to take a few mo- er jet, just west of Indiana on Monday, Mr. LEAHY. Mr. President, the dedi- ments to remember those Americans May 17, 2004. cation of the long overdue World War II who have given their lives in the name Bill graduated from the United Memorial is a moment in time that we of freedom. The freedom we enjoy States Air Force Academy in 1991. A will always remember. today remains only because of their native of Michigan, Bill moved to I am so pleased that many Vermont courage and unselfish sacrifice. Terre Haute in 2000 after leaving active veterans from the WWII will be on American men and women, through- duty and being reassigned to the 181st hand for this solemn, and triumphant, out our Nation’s history, have fought Fighter Wing. He was a seasoned fight- occasion. and died because they believed in their er pilot with over 2,300 flight hours in No monument—even one so grandly country and believed in preserving its various military aircraft, which he flew placed as this gleaming tribute in immeasurable blessings. Many gave while bravely serving our Nation on stone is, between the Washington and their lives for her in a far away land, numerous occasions, including mis- Lincoln Monuments—can fully capture and failed to make it back to the coun- sions in Kosovo, Bosnia, Yugoslavia the full enormity of the service and try or family they loved. and Saudi Arabia. His love of flying sacrifice of the 16 million soldiers, sail- With this upcoming remembrance, I also spilled over into his civilian ca- ors, airmen and others who served in am reminded of Oliver Wendell Holmes, reer. When Bill wasn’t training in his uniform during those 5 years of war Jr. Holmes gave us some of the best Air Force flight suit, he was working and struggle. Yet with its marble ex- thoughts, and his speech and writings, in his FedEx pilot uniform flying panse, majestic pillars, and carefully as a whole, will always be among the around the packages and supplies that chiseled engravings, this memorial will best of their kind. help keep our Nation’s economy mov- forever stand as a symbol of the Na- On May 30, 1884, Holmes delivered a ing forward. tion’s appreciation for those who Memorial Day address before John Bill was a man of great faith as well served and for those who made the ulti- Sedgwick Post No. 4, Grand Army of as a hardworking and brave airman. He mate sacrifice. the Republic. The address reflected on leaves behind his wife, Deborah who is World War II was truly an epic strug- the Civil War and during his address he expecting their third child in a few gle. It was a struggle that would deter- focused on a question posed to him by weeks and his two sons, ages six and mine the very direction of humanity, a young man, about why people still two years old. May Bill’s children grow whether militarism and Nazism would kept up Memorial Day. In his wonder- up knowing that their father gave his supplant freedom and democracy. ful style he gave attention why Memo- life to help defend our great Nation and Every American soldier understood the rial Day is what it is. ensure that children in other countries, purpose and the stakes of that war. He said, ‘‘Not the answer that you like Kosovo and Iraq, will some day They unwaveringly answered the call and I should give to each other-not the know the freedom they enjoy. Today, I join Bill’s family, his to duty, they won the war, they re- expression of those feelings that, so friends, and the entire Indiana commu- turned home, and then the greatest long as you live, will make this day sa- nity in mourning his death. While we generation soldiered on further to also cred to memories of love and grief and struggle to bear our sorrow over his win the peace. heroic youth—but an answer which death, we can also take pride in the ex- We in Vermont often pride ourselves should command the assent of those ample he set, bravely training and on our healthy skepticism of central- who do not share our memories, and in fighting to make the world a safer ized government. Yet we are early and which we of the North and our brethren place. It is his courage and strength of arduous in rallying to the Nation’s de- of the South could join in perfect ac- character that people will remember fense in disproportionate numbers to cord. . . . but Memorial Day may and when they think of Bill, a memory that our relatively small population, from ought to have a meaning also for those will burn brightly during these con- the Civil War onward. In World War II who do not share our memories.’’ tinuing days of grief. nearly 50,000 men from the State of One month ago on April 29, 2004, the When looking back on the life of his Vermont fought the axis powers. More National World War II Memorial late parishioner, Bill’s minister, Mark than 1,200 Vermonters lost their lives opened for public view. The memorial Grayless told the Terre Haute Tribune in the war. At home and overseas, is the first national memorial dedi- Star that he ‘‘was a fantastic family Vermont women also made great con- cated to all who served during the man. He was a really neat guy and tributions to the war effort, and 1,400 of WWII. The formal dedication will take great with his kids.’’ Bill was known them served with our armed forces. place this Memorial Day weekend as a for his wonderful sense of humor, his Today a new generation of veterans service and tribute to members of the unfailing patience and the incredible is being minted. I have had the honor World War II generation, and to share love he shared with his wife and small of meeting many of the young men and their memories. The memorial honors children. According to his friends, women who are serving in Afghanistan all military veterans of the war, the Bill’s passion for flying may not soon and Iraq. These soldiers, sailors, air- citizens of the time that stayed on the be forgotten for his oldest son was men, and Marines tell me time and home front, and the America’s moral quoted as having proudly pronounced time again that they look over their purpose that ultimately warranted our that he, too, wanted to be a pilot, just shoulders to take pride and courage in nation’s involvement. like his dad. the examples set by our World War II The memorial was authorized by It is my sad duty to enter the name veterans, as well as our veterans from Congress in 1993, and this year’s Memo- of William E. Burchett in the official more recent wars. rial Day celebration on the National

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5939 Mall will culminate a long effort to served and sacrificed their lives in de- their service, for guaranteeing my free- honor America’s World War II genera- fense of this great Nation and who ulti- dom and those of all Americans, and I tion. I take a quick moment to thank mately saved the world from tyranny wish them a Happy Memorial Day. my friend former Majority Leader Bob and tyrants. No doubt, those men and Mr. PRYOR. Mr. President, this week Dole, a wounded and decorated WWII women and their triumph over evil marks the 50th anniversary of Brown v. veteran who served in this body, for have served as a stark reminder and in- Board of Education, the Supreme Court chairing the World War II Memorial spiration to the men and women in uni- decision that ultimately ended legal Commission and for giving countless form who have followed in their perma- segregation in schools and helped cata- hours to this wonderful work. nent footsteps. lyze a better education for all of Amer- It has been nearly 59 years since the However, the presence of this genera- ica’s children. end of World War II. However, I think tion was not limited to the islands of This landmark decision was the first it is safe to say that from 1939 to 1945, the Pacific or the beaches of Nor- significant action by an institution of when every major power in the world mandy; it was also displayed by those national government in the struggle was involved in a worldwide conflict— who remained in this country to mobi- for equality. However, it would be those times, like the Civil War, were lize the home front during and after naive to believe that Brown erased the some of our nation’s toughest. We live the war. No one can question the hard hatred and ignorance that black fami- in a remarkably different world today, work and dedication this generation lies faced when testing their rights to a but Memorial Day has kept many embraced that ultimately pushed this better education. One of the most dra- memories. At this moment in Amer- nation to the position of global eco- matic examples occurred on September ica’s history, our men and women in nomic, military, political, and social 24, 1957 when President Eisenhower or- uniform are engaged in conflict in both leadership we still maintain today. Al- dered federal troops to Little Rock, AR Iraq and Afghanistan. They serve with most overnight, America moved from to allow nine black children, the Little the same courage and commitment isolation to a country of engagement. Rock Nine, to attend the all-white Cen- shown by Americans of generations Having learned this lesson well, tral High School. Of her experience, Melba Pattillo past, and they deserve our thoughts America remained engaged with the Beals of the Little Rock Nine recalls: and prayers. world after the war, struggling against ‘‘I had to become a warrior. I had to From the Bataan Peninsula to beach- the advance of communism, and ulti- learn not how to dress the best but how es of Normandy, from the Ia Drang mately winning that battle. to get from that door to the end of the Valley to Inchon, from Iwo Jima and I am proud of the role the citizens of hall without dying.’’ Her act of cour- Okinawa to the North Apennine Moun- my state played in these struggles, and age, and those of the other eight stu- tains of Italy, from Afghanistan to as such, I would like to take a moment dents who integrated Little Rock Cen- Iraq, and many other conflicts too nu- to honor those Idahoans who served tral, helped change history for all merous to mention, American men and and to those who lost their lives as a Americans in a tale that continues to women have fought and died because of result of World War II. Their strong commitment and dedication to their have immediacy. their love of country. Another one of those students was state and to our country has not and I am proud that we have kept up Me- Ernest Green, who best explains why will not go unnoticed. I am reminded of morial Day. This one, in particular, the Little Rock Nine sacrificed their a saying, ‘‘For your tomorrow, we gave brings significant meaning and a spe- innocence for a chance at a better edu- our today.’’ This statement embodies cial time to remember and reflect. I cation. He said, ‘‘We wanted to widen what this generation gave; but words pay a special tribute today to those options for ourselves and later for our can’t fully describe what the soldiers who have fallen during the two con- children.’’ Mr. Green was the first and survivors of WWII contributed to flicts in Iraq and Afghanistan, includ- black student to graduate from Central ing those from my home state of New this nation, during and after the war. High School. He later served as Assist- Mexico: CPT Tamara Archuleta of Los That contribution changed the course, ant Secretary of Housing and Urban Lunas; Marine CPL Aaron Austin of not only of our Nation, but of the en- Affairs under President Jimmy Carter Lovington; SrA Jason Cunningham of tire world. We continue to see the re- and now serves as the vice president of Carlsbad; Army SP James Pirtle of La percussions of it today, and to be hon- Lehman Brothers. Mesa; and Marine PFC Christopher est, I believe the effect will continue to Turning opportunity into achieve- Ramos of Albuquerque. be felt long after all of us are gone. The ment is what civil rights pioneer Daisy As we enjoy this holiday weekend official motto of Idaho is ‘‘Esto Bates had in mind when she helped the with our family and friends, let us take Perpetua,’’ meaning ‘‘May it last for- Little Rock Nine break down the bar- some time to recognize the valor with ever.’’ Well, the same could probably riers that stood between them and an which so many of our soldiers, sailors, be said of the influence of this genera- equal education. Despite threats on her airmen, and marines have fought when tion on America. life and financial ruin, Daisy Bates called upon by their country. Finally, Still, despite playing such a profound made significant strides in the court- may our United States continue to be role in American history, until this room and increased public awareness blessed and may America forever re- year, there was no monument or me- through her newspaper. main the land of the free and the home morial in our Nation’s capital that Mr. President, as a former student of of the brave. honored the sacrifices of all World War Central High, I can tell you the impact f II veterans. We have monuments and of the Little Rock Nine is still felt in memorials for Vietnam and the Korean the hearts of its student body and HONORING WORLD WAR II War, as we should. Just across the river teachers past and present. In 2007, Cen- VETERANS in Arlington, there is the Iwo Jima Me- tral High will commemorate the 50th Mr. CRAIG. Mr. President, more than morial which honors the U.S. Marines anniversary of its desegregation crises. 60 years ago a generation of Americans who served in World War II. It is a The National Park Service plans to answered the call to service, leaving beautiful and fitting commemoration build the Little Rock Central High their daily lives and joining the fight of the leathernecks’ service in that School Visitors Center in time for this in a world war that would dramatically conflict but just that branch, not all watershed anniversary, and I will be change the way this country, and the the services. urging my colleagues to support fund- world, conducted itself. Raised during This Memorial Day, we will dedicate, ing for this endeavor later this year. the Great Depression, this ‘‘Greatest at long last, the National World War II What we know today is that children Generation’’ would have such a pro- Memorial on the National Mall. I beall over America have the right to found impact on our history that is al- lieve it is fitting that the memorial learn—whether their ancestors came to most impossible to overstate. Their should take its place alongside Lin- America on slave ships or the legacy is formidable and lasting. coln, Jefferson and Washington, in the Mayflower. What we know today is Almost six decades later, we are fi- place our nation comes to remember that we all benefit when we learn to- nally paying full tribute to those men and honor the greatest deeds in our gether and work together for a com- and women, and this generation, who great history. I thank our veterans for mon purpose. What we know today is

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5940 CONGRESSIONAL RECORD — SENATE May 20, 2004 there are more black doctors, lawyers, Enhancement Act is a symbol that can Let’s review the history. judges and elected officials than ever become substance. I believe that by After September 11, there was nearly before. What we know today is that passing this legislation and changing universal support for retaliation there is more equality and more oppor- current law, we can change hearts and against al-Qaida. There was widespread tunity for all children. minds as well. sympathy and support for the United But what we don’t know, what we f States from around the world. But then still question is whether we have really the President, encouraged by a handful A COLOSSAL FAILURE OF WHITE achieved the inclusion, equality and di- of Pentagon and White House officials, HOUSE LEADERSHIP IN IRAQ versity in our schools that the Court most notably the Vice President, who intended when it struck down the ‘‘sep- Mr. LEAHY. Mr. President, according were fixated on Saddam Hussein, arate but equal’’ doctrine and required to the Washington Post, a recent poll changed course. And what followed, I the desegregation of schools across by the Coalition Provisional Authority believe, has very possibly increased the America. I do not believe we have met in Iraq, which is, for all intents and risk of terrorism against Americans. the promise of Brown yet. purposes, an entity of the U.S. Govern- We remember when someone in the I am concerned that many public ment, showed that 80 percent of the administration ‘‘gave currency to a schools in Arkansas and around the Iraqis surveyed reported a lack of con- fraud,’’ to quote George Will, by put- country remain segregated by race and fidence in the CPA and 82 percent dis- ting in the President’s 2003 State of the class, still unequal in regard to per- approve of the U.S. and allied mili- Union speech that Iraq was trying to formance and resources. Today, a taries in Iraq. buy uranium in Africa. fourth-grade Hispanic child is only one- I mention this for two reasons. This administration repeatedly, in- First, I remember when, less than 2 third as likely to read at the same sistently and unrelentingly justified months ago, much was made by admin- level as a fourth grade white child. pre-emptive war by insisting that Sad- istration officials and several Senators Only fifty percent of African-Ameri- dam Hussein not only had weapons of of a February poll which suggested cans are finishing high school, and only mass destruction but was hell-bent on that Iraqis strongly supported the U.S. 18 percent are graduating from college. using them against us and our allies. occupation. They held it up as proof We must do better, and President Administration officials, led by Vice that our strategy was working, even if Bush and the Congress can do better by President CHENEY, repeatedly tried to they could not explain what the strat- keeping the promises made to parents link Saddam Hussein to 9/11 in order to egy was. build public support for the war, and students when it passed the No To quote one of my friends on the though there never was any link— Child Left Behind Act. We must live up other side of the aisle, who spoke on none. to this promise, and provide every April 8: child access to a quality public edu- Truth tellers in the administration— [I] noticed the BBC/ABC poll results in like General Shinseki and Lawrence cation. Daisy Bates, the Little Rock Iraq, which are fascinating. I only wish Nine and countless civil rights leaders Americans were as upbeat about America as Lindsay—were either ridiculed or did not endure hardship and sacrifice Iraqis are about Iraq. If you watched U.S. TV hounded out of their jobs because they for us to fail now. every day, you would think there was noth- had the temerity to suggest realistic Mr. President, on this landmark an- ing but bad things happening in Iraq . . . But, estimates for the number of soldiers niversary, let us stand together to cele- in fact, in the BBC/ABC poll, which was and amount of money it would take to brate how far we have come. But let us taken from February 9th to February 28th, do the job right in Iraq. also acknowledge the problems that in answer to the question, ‘‘How are things Incredibly, there was no real plan, going today, good or bad, in Iraq?’’ Overall, despite a year-long, $5 million study by stand in the way to a better education 70 percent said good, 29 percent said bad. . . for all children. And let us commit our- And in terms of the optimism factor, how the State Department, to deal with the selves to preparing our children for to- they will be a year from now, 71 percent of widespread looting that greeted our day’s expectations and tomorrow’s Iraqis thought things would be better a year soldiers once Saddam had fallen—dou- challenges. from now . . . bling or tripling the cost of reconstruc- f He concluded by saying that this en- tion, and leaving open the gates to couraging news was thanks to the lead- stockpiles of weapons and ammunition LOCAL LAW ENFORCEMENT ACT ership of the President of the United that have been used with deadly results OF 2003 States. against our soldiers. Mr. SMITH. Mr. President, I rise Whatever the accuracy of that Feb- We remember President Bush flying today to speak about the need for hate ruary poll, the CPA’s recent poll indi- onto the aircraft carrier and declaring crimes legislation. On May 1, 2003, Sen- cates that far more Iraqis today oppose ‘‘Mission Accomplished’’ when, in fact, ator KENNEDY and I introduced the what we are doing in Iraq. The CPA’s the worst of it was ahead. Local Law Enforcement Enhancement poll also shows that more than half of Two months later, the President Act, a bill that would add new cat- Americans surveyed oppose the Presi- taunted Iraqi resistance fighters to egories to current hate crimes law, dent’s policy. ‘‘Bring It On!’’ while our troops were sending a signal that violence of any This latest poll also compels us to still in harm’s way and were fending off kind is unacceptable in our society. ask why so many of the people we ambushes and roadside attacks every On June 1, 2000, Gary William Mick, sought to liberate, and did liberate day and every night. 25, pleaded guilty to first-degree mur- from the brutality of Saddam, turned Some of our closest allies and der, attempted murder, and armed rob- against us so quickly. And why so friends, like Mexico and Canada, and bery after admitting that he murdered many Americans are questioning the even those countries Secretary Rums- a gay man and tried to kill another be- President’s decision to go to war. feld called ‘‘Old Europe,’’ were belittled cause he believed gay men were ‘‘evil.’’ There are many reasons, the genesis and alienated because they disagreed In the first attack, a New Jersey man of which dates back to the President’s with our strategy of pre-emptive war— was bludgeoned to death with a claw fateful decision to shift gears from countries whose diplomatic and intel- hammer. Mick met his second victim, a fighting al-Qaida, which had attacked ligence and military support we so des- dentist, at a bar. There, he had dinner us, to overthrowing Saddam Hussein, perately need today. with him and went home with him. who had not attacked us and who ap- That sorry chronology has brought Mick later attacked the man with a parently had no plan or ability to. us to where we are today. Each day knife, a struggle ensued, and the vic- That decision, followed by a remark- that passes, more Iraqis seem to turn tim escaped. Mick told police that a able series of miscalculations and mis- against us, threatening the mission childhood incident caused him to hate guided policies, has enmeshed our and morale of our troops. homosexuals. troops in an ill-fated, costly war from The latest episode in this misguided I believe that Government’s first which neither the President, nor any- adventure is the Abu Ghraib prison duty is to defend its citizens, to defend one else in his Administration, appears scandal. It is tragic for many reasons, them against the harms that come out to have the faintest idea of how to ex- but none more so than the harm it has of hate. The Local Law Enforcement tricate ourselves. caused to the image of our Armed

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5941 Forces and to our Nation, particularly We have heard of instances when deni- ure to hold accountable those in posi- among Muslims, and the fact that it als of misconduct by military officers tions of responsibility. could so easily have been prevented. were treated as proof that nothing bad The President reaffirmed, in the The International Red Cross had happened, while those who alleged the midst of the Abu Ghraib scandal, that warned U.S. officials about the mis- abuse were never interviewed. the United States is a nation of laws, treatment of Iraqi prisoners last year, We have learned that self-serving and and that those responsible for the mis- and nothing was done about it for reassuring statements about respect treatment of Iraqi prisoners will be months. for the law by officials here in Wash- punished. This, of course, must happen. We also know that similarly cruel ington, including the President and the But it does not obscure the glaring hy- and degrading treatment of prisoners Pentagon’s top lawyer, bore little re- pocrisy of this administration. occurred at Bagram Air Base in Af- semblance to what was going on in the On the one hand, last March, refer- ghanistan. The New York Times first field. ring to the capture of U.S. soldiers by reported it last March. It described The sadistic acts that have now been Iraqi forces, President Bush said, ‘‘We prisoners who had been kept naked in published on the front pages of every expect them to be treated humanely, freezing cold cells, forced to stand for newspaper in the world as well as mil- just like we’ll treat any prisoner of days with their arms upraised and lions of television screens have endan- theirs that we capture humanely. If chained to the ceiling, subjected to gered our soldiers and civilians abroad not, the people who mistreat the pris- other humiliating and abusive treat- and threaten our national security and oners will be treated as war criminals.’’ ment, and in at least two instances foreign policy interests abroad. The On the other hand, there is the White prisoners died in what were ruled homi- photographs will be used as recruiting House Counsel, who called the Geneva cides. We have since learned that many posters for terrorists around the world. Conventions ‘‘quaint’’ and ‘‘obsolete,’’ more detainees have died in U.S. cus- They depict an interrogation and de- and there is the pattern of abuses tody in both Afghanistan and Iraq. tention system that is out of control. themselves and the way the adminis- Even before last June, when I first They have made a mockery of Presi- tration ignored inquiries and warnings sought information about the abuses at dent Bush’s statement a year ago that for months. Bagram, my attempts to seek informa- the United States will neither ‘‘tor- The White House set the tone, and tion about the dehumanizing and, I be- ture’’ terrorist suspects, nor use ‘‘cruel the consequences were disastrous. Ac- lieve, illegal treatment of prisoners at and unusual’’ treatment to interrogate cording to the International Red Cross, Guantanamo were ignored. them, and they directly contradict the 70 to 90 percent of the Iraq prisoners It is no secret that Guantanamo was more detailed policy on interrogations arrested—who were unquestionably en- chosen precisely because the Pentagon outlined in a June 25, 2003, letter to me titled to the protections of the Geneva wanted it to be outside the jurisdiction by Defense Department General Coun- Conventions—were later determined to of U.S. courts. They did not want to be sel William Haynes. have been detained by mistake. That is subjected to the watchful eyes of attor- It is apparent that, when it comes to appalling, but not so appalling that the neys who know the law. They did not Iraq, this administration is disin- Administration did anything about it. want to be bothered with U.S. or inter- terested, at best, in the views of any- The Red Cross reported that soldiers national law. As it turns out, many of one who is either a member of the mi- carrying out arrests ‘‘usually entered the prisoners at Guantanamo who had nority, or who, Republican or Demo- after dark, breaking down doors, wak- been drugged and shackled and hooded crat, dares to utter words of caution or ing up residents roughly, yelling or- and denied access to lawyers, were re- criticism. But there are some basic ders. Sometimes they arrested all adult leased after it was determined, a year truths that cannot be ignored. males present in a house, including the or two later, that they were innocent. First, atrocities occur in all wars. In- elderly, handicapped or sick people. Now we hear that there are videos of variably, there are incidents—often Treatment often included pushing peo- the treatment of prisoners at Guanta- many incidents—in which excessive ple around, insulting, taking aim with namo, but, like Abu Ghraib, we only force is used, civilians are brutalized, rifles, punching and kicking and strik- learned about it from the press. That is prisoners of war are tortured and sum- ing with rifles.’’ the only way we have learned about marily executed. There has never been Is it any wonder that so many Iraqis any of what is increasingly looking a war without such heinous crimes. want us to leave? This is not what we like a pattern of cruel and degrading Second, our Armed Forces are the expect of the conduct of our military treatment of terrorism suspects in U.S. finest in the world. The vast majority operations. The Geneva Conventions military custody. of our troops have conducted them- have the force of law, and as a nation Top Pentagon officials continue to selves professionally and courageously, whose Bill of Rights was the model for insist that there is no pattern; that we in accordance with the laws of war. But the Universal Declaration of Human are dealing only with ‘‘isolated inci- even Americans have at times used ex- Rights, that holds itself out as a force dents.’’ We could debate when ‘‘inci- cessive force and violated the rights of for human rights and human dignity dents’’ become so pervasive that they civilians or prisoners. There were in- around the world, we should set the ex- are part of a ‘‘pattern.’’ One might stances of this long before Abu Ghraib ample. Any person taken into U.S. cus- think that similar types of abuses of prison. tody should be treated, at a minimum, prisoners in U.S. custody in Cuba, Af- And it is precisely because these consistent with the Geneva Conven- ghanistan, and Iraq during approxi- atrocities are predictable in any war tions and in accordance with the Tor- mately the same time period would that the Geneva Conventions and the ture Convention. suggest a pattern, but perhaps not to Torture Convention exist. The United This fiasco is part and parcel of the those who bear responsibility. The fact States was instrumental in the draft- increasing insecurity in Iraq and the is, as the Washington Post so clearly ing and adoption of these conventions, dangers facing our troops from a hos- stated on May 20, this was ‘‘A Cor- whose purpose is to prevent atrocities tile population that has resulted from rupted Culture.’’ against civilians and the mistreatment such miserably poor planning that so We have heard that U.S. military in- of prisoners of war, including Ameri- many people warned of. telligence gave the orders. We have cans. It has claimed the lives and limbs of heard of attempts by military to block We should also recognize that not hundreds of Americans and of thou- investigations by the International only were the abuses at Abu Ghraib sands of Iraqis. Red Cross. We have heard that FBI offi- prison not isolated incidents; similar It has caused deep divisions between cers declined to be present during in- practices have recently been docu- ourselves and the Iraqi people and Mus- terrogations because of the harsh mented in many prisons in the United lims around the world. methods that were used. We have heard States. We have seen the same types of It has damaged our image as a nation of complaints by former Iraqi and Af- humiliating and sexually degrading that stands for respect for human ghan prisoners that were ignored. We treatment, the assaults by prison rights. have heard about investigations of al- guards, the misuse of dogs against de- It represents a colossal failure of leged abuses that were cursory, at best. fenseless prisoners, and the same fail- leadership.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5942 CONGRESSIONAL RECORD — SENATE May 20, 2004 As I and so many others have said for Unless the President can answer Let’s all acknowledge that there are months, we cannot succeed in Iraq by these questions, more and more Ameri- precious few legislative days left in the ourselves. Not when the rationale for cans will question how much longer we 108th Congress, that we have a large going to war has been exposed for the can ask our troops to risk life and limb number of bills very important to our pretext that it was. Not when we are in Iraq and the taxpayers to continue country, and that we do not have the widely perceived as occupiers. Not to pay for a policy that is not working. luxury of debating and voting on each when photographs of uniformed Ameri- f and every amendment we desire. cans abusing naked Iraqi prisoners Let’s recognize that no legislation have become the symbol of that occu- END THE BLOCK AND BLAME will be perfect in everyone’s mind, but pation. GAME let’s not block it simply because we We saw, with the horrifying murder Mr. GRASSLEY. Mr. President, I rise don’t get everything we want. of Nicolas Berg by al-Qaida, the incred- today to make an appeal to our Demo- Instead, let’s work hard together to ible depravity and determination of the cratic colleagues to end this obstruc- get these important bills to the Presi- enemy we face. Only weeks ago there tion of legislation vital to our Nation. dent’s desk to be signed into law. were images of dismembered American I am appealing to my Democratic col- And that is the basis of a better cam- corpses hanging from a bridge. leagues to abandon this harmful, po- paign strategy for Democrats, and one We are united in our revulsion, and litically motivated, election year that will not undermine the vital inter- in our commitment to bring to justice strategy of gridlock, and if I may be so ests of Americans. Simply, Democrats could share credit those responsible for such despicable bold, to suggest a different election for all the legislation enacted this acts. The question is how to do it effec- year political strategy that will not tively. year, but then they are free to argue hurt Americans. with voters that had they been in con- Last October 13th, in a memo enti- The Democrats’ obstruction strategy trol of the Congress and the White tled ‘‘Global War on Terrorism,’’ Sec- is no secret in Washington, although it House, they would have done much, retary Rumsfeld asked, ‘‘Are we cap- may not be so obvious to those outside much better. turing, killing or dissuading more ter- the beltway. rorists every day than the madrassas Or, Democrats might try to persuade We have all heard of the old ‘‘blame voters that if they are elected, provi- and radical clerics are recruiting, game.’’ Well now, Congressional Demo- training and deploying against us?’’ sions that Democrats view as ill-con- crats have taken it to a new level and ceived, will be repealed or modified. Since then, he and the President created a new game. I call it the have called Iraq the main front in the Republicans are happy to engage ‘‘Block and Blame Game.’’ Democrats in the debate this fall over war against terrorism. It certainly did According to a lobbyist, a few weeks not used to be. Last week, I asked Sec- the issues, our goals and our vision for ago one of the Senate’s Democratic our nation’s future. And Democrats retary Rumsfeld how he would answer leaders gave a briefing to campaign the question he posed last October— should be just as enthusiastic. contributors. First, all were assured, In short, there is no need to obstruct whether we are winning the fight naturally, that the Democrats would legislation. It makes no sense, it is to- against terrorism. He said he didn’t take over the Senate. Second, they tally irrational, for Democrats to be know. were told that to help secure this That speaks volumes. We are spend- blocking critically needed legislation, Democratic victory, they were imple- crucial for their own constituents, sim- ing more than $1 billion a week in Iraq, ply because they fear that Republicans and the Secretary doesn’t know if we menting a strategy to block all major might get credit for passing and enact- are winning. legislation, except for some appropria- President Bush’s Iraq policy has been tions measurers. ing legislation. The ongoing fight over the Energy discredited not only among the world’s So how does blocking legislation bill is a perfect case study that under- Muslims, but among most of our elect Democrats? The answer came scores my point of how the vital inter- friends and allies. Not only have we within days as a Senate Democrat ests of Americans are being sacrificed lost the moral authority that is nec- blasted away, charging that while Re- publicans control the White House, the on the alter of political ambition. essary to defeat terrorism, we have Last year, lobbyist working hard for been unable to even secure the country Senate and the House of Representa- tives, the GOP is getting nothing done. either the medicare prescription bill or we liberated. As I have said repeatedly, the Energy bill, were telling me that we need a radical change of course, and The block and blame game. Democrats must think that as long the Senate Democratic caucus was that decision can be made only by the struggling with the following question: President of the United States. as no one outside Washington can figure out the nuances of the legislative ‘‘Which, if either bill, should we allow The President has reaffirmed his to pass? We definitely cannot let the steadfast support for the Secretary of procedures of obstruction, then as they say, ‘‘the proof is in the pudding,’’ President have two victories.’’ Defense, and at this point it appears Let me repeat, Congressional Demo- nothing is getting done, the Repub- that Secretary Rumsfeld has no plans crats concluded that they could not let licans are in control, and therefore the to leave. But many are seriously ques- the President have two victories. So as Republicans are to blame. tioning whether we can succeed in Iraq, it happened, Medicare was passed first, Who is really hurt by this strategy? or against terrorism for that matter, but then Democrats mounted a suc- Republicans? Maybe, if they are unable so long as he and General Myers, and cessful filibuster against the Energy to explain the complicated procedures Deputy Secretary Wolfowitz, who are bill. so closely identified with this discred- that are being used by Democrats to They wanted to deny the President a ited policy, remain at the helm. block the business of the Senate. victory. At the same time, the President Clearly, it is the American people Where did they get that crazy no- needs to articulate credible, achievable who are harmed. And for what reason? tion? What genius political consultants goals in Iraq, beyond ‘‘staying the Simply, the interests of Americans are and pollsters are advising them? course’’ and the usual cliches about re- being sacrificed upon the altar of the Enacting the Energy bill would be a making the Middle East. selfish, political power struggle. victory for all Americans, not just the We and the rest of the world need to Please understand that I refuse to in- President! It would be a victory for know what those goals are and how he sult my Democratic colleagues by sug- people of all political stripes. plans to achieve them, to whom we are gesting that they should not vigor- There are provisions in the Energy going to turn over sovereignty that can ously compete for control of Congress bill that would help increase oil pro- effectively govern, how the President and the White House. duction, which would reduce gasoline plans to secure the support needed But they can do it in a way that prices. from other nations to effectively ad- helps Americans, not hurt them. Do you thing Americans, who drive dress the deteriorating security situa- I do strongly urge them to abandon up to the pump today, having to spend tion, how long he expects our troops to the block and blame game strategy and well over two dollars a gallon for gaso- stay in Iraq, and how many more bil- instead to join Republicans in making line, give a hoot whether or not enact- lions of dollars it may cost. this closely divided Government work. ing the energy bill could be considered

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5943 a victory for the President? Do you have been working hard for approval of which is not so widely understood. If think for one moment that even the the renewable fuels standard. More- cloture is invoked, all amendments to most dyed-in-the-wool Democrats liv- over, these groups recognize that the that underlying provision must be ger- ing outside of Washington, DC say to comprehensive energy bill has provi- mane. If a second degree amendment is themselves, ‘‘Well, we may be paying sions beyond ethanol and biodiesel that not germane, then you have con- $2.50 for gasoline, but thank goodness are very important to their members. structed a hurdle requiring 60 votes to Congressional Democrats denied the So why did the Democratic leader overcome. President a legislative victory’’? fail to offer instead the comprehensive Could it be, therefore, since no one Why don’t Democrats do to the En- energy bill, which included the renew- was filibustering this amendment, that ergy bill, what they did to the prescrip- able fuels standard, as an amendment? an attempt to invoke cloture was tion drug bill? Let it be enacted into He has been around here long enough aimed at blocking the more popular, law, and then go out and tell everyone to know Senators from other parts of comprehensive energy legislation as a what a terrible bill it is. Tell voters the country, who want to pass pro-en- second degree amendment? that the Energy bill is just terrible, ergy provisions more important to Indeed, Senator DOMENICI, recog- but that Republicans are in control, their states than ethanol, are not like- nizing hopes for energy legislation was and if that’s their idea of good energy ly to vote to strip ethanol out. After being jeopardized by this block and policy, so be it. But if you elect us, we all, such an effort would unravel the blame game, offered the comprehensive will do this and that differently, and energy coalition, and thus reduce the energy bill as a second degree. you will be far better off. likelihood of passing their preferred What most constituents do not know, That type of political strategy does energy provisions. is that had the democratic leader suc- not undermine Americans. That strat- So the Democratic leader offered an ceeded in gaining the 60 votes needed egy sets the stage for vigorous cam- amendment that he knew was less like- to invoke cloture on his amendment, paigns that will we won or lost based ly to pass. the Domenici amendment would have upon who have the best ideas and vi- The second bit of evidence that this been ruled out of order as non germane sion. effort was part of the block and blame because it was far more expansive than Perhaps, therein lies the problem for game, is that no pro-ethanol Repub- the underlying amendment. It would Democrats. Perhaps the block and lican ally was contacted in advance to have taken another 60-vote majority to blame game is easier to play for those help develop a strategy to assure that overcome this ruling. That may not be who are not confident that they have we secure enough votes. impossible, but we know that some better ideas and winning arguments We have always counted on bipar- Senators vote will vote differently on a about their goals and vision. tisan cooperation to support ethanol procedural question than they might We came within two votes of shut- legislation, and for the first time that on the underlying amendment. So this ting off the Democrat-led filibuster I can remember, neither I nor any was another hurdle, another attempt against the Energy bill. There are pro- other pro-ethanol Republican was con- at blocking the more popular provision visions in that bill of vital interest to tacted. that, remember, included the renew- virtually every part of our country, let Third, and even more telling, the able fuels standard and had a much alone establishing critically needed en- Democrat leader failed to contact the higher likelihood of passing. ergy policy for our Nation as a whole. ethanol and corn grower lobbyists in The fifth piece of evidence that the For the upper Midwest’s farm coun- advance. That, I know, has never hap- Democratic leader’s amendment was try, it contains renewable fuel provi- pened. If you really want to pass re- designed to fail is that he offered it to sions that will expand farm markets newable fuels legislation, every one of S. 150, instead of the compromise sub- for corn and soybeans which in turn us in this body knows you better have stitute amendment developed and of- will increase income for farmers and the National Corn Growers and the Re- fered by Senator MCCAIN, the chairman rural Americans while expanding job newable Fuels Association ready and of the Senate Commerce Committee. opportunities. It contains provisions able to help you line up the votes. Given the long stalemate over the that increase our sources of oil and gas Why weren’t they contacted? Perhaps internet tax bill, we all knew that Sen- which will reduce the production costs it is because Democrats knew they ator MCCAIN’s substitute had broken of farmers as well as save money for all would refuse to be part of an effort to the impasse and that if anything was consumers throughout our country. splinter the broad energy coalition, going to pass, it was his compromise. Each and every one of us can point to sinking all hope of passing any energy But his amendment, No. 3048 was an things we did not like in the bill, but legislation this year, including that for entire substitute to the language of S. instead of passing it for the greater renewable fuels. 150. We all know, therefore, that any good, it has fallen prey to the Demo- They would not willingly let them- amendment to S. 150, including amend- crat’s block and blame game. selves become victims of the Demo- ment No. 3050 offered later by the Just 3 weeks ago, Democrats sac- cratic block and blame game! Democratic leader, would fall when the rificed the renewable fuels section of The fourth bit of evidence that this McCain substitute was approved. the Energy bill to the block and blame amendment was designed to fail in- So you should offer an amendment to game. volves Senate procedure. As soon as the substitute that will prevail. If you It is inconceivable that the renew- the amendment was offered, a signed did not think you knew which would able fuels amendment offered by the cloture petition was immediately of- prevail, then you could offer two Democratic leader on April 27 could fered by the Democratic leader to his amendments—one to the underlying have been designed any better to as- own amendment. This cloture petition, bill, and one to the substitute amend- sure its failure. It was guaranteed to by the way, was signed exclusively by ment. fail. If you understand Senate proce- Democrats. Here is a good way to explain this. dures, and the importance of passing a The most obvious reason to invoke Suppose our objective is to get supplies regionally attractive, comprehensive cloture is to cut off a filibuster. But to the space station. Do you load your Energy bill, it is obvious to you that who in the world was going to fili- supplies on the booster rocket, or do this amendment was designed to fail. buster this amendment? We were try- you load it into the space shuttle? The Let me offer the proof. ing to pass a long-overdue solution to booster rocket in this case was S. 150, First, everyone knows that any en- differences that has stalled the inter- and the McCain substitute was the ergy bill that has any hope of passing net tax bill. Moreover, if the Demo- space shuttle. And we all knew that. this Congress must be a comprehensive cratic leader’s renewable fuels amend- The next bit of evidence that the package that addresses a wide variety ment was so popular, why worry about Democratic leader’s ethanol amend- of energy issues and that draws bipar- a filibuster? Let’s just vote up or down ment was designed to fail, is the very tisan support from all regions of the on the amendment. fact that he picked a bill, again, the country. Although cutting off debate is the ob- internet tax bill, that is controlled and This fact has long been recognized by vious, normal purpose of filing a clo- managed by the Senate’s most out-spo- ethanol and farm organizations who ture petition, there is another purpose ken, anti-ethanol Senator.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5944 CONGRESSIONAL RECORD — SENATE May 20, 2004 If everything else failed to fail, add- SECTION 8 HOUSING ASSISTANCE flects the rise in unemployment among ing an amendment to a bill to be taken Mr. DODD. Mr. President, I am Section 8 participants and thus an in- to conference by Chairman MCCAIN was pleased to join Senators SCHUMER, KEN- crease in the public housing the iron-clad guarantee it would be re- NEDY, REED, and others as an original authority’s share of the rent. jected. And in fact, that is exactly co-sponsor of this important legisla- The impact of the April 22, 2004 rule what Senator MCCAIN stated on the tion, which would clarify the intent of on Connecticut will be particularly se- floor of the Senate. He stated emphati- a provision in the fiscal year 2004 ap- vere given that that it has the sixth cally, and quite predictably, that if the propriations law regarding the Section most expensive rental housing market ethanol or energy amendment passed, 8 housing voucher program. in the nation and very few vacancies to he would drop it in conference. The Department of Housing and meet the needs of low-income individ- So the Democrat leader’s amendment Urban Development, HUD, has claimed uals. Coupled with the administration’s was designed in so may ways to fail, that language in the FY2004 appropria- proposed FY2005 budget cuts and block and thus, to block his own amendment. tions law requires it to distribute granting of the Section 8 program, And guess who gets the blame? Repub- voucher funding in a manner that which could adversely affect over 4,000 licans. leaves no alternative but to reduce as- existing voucher holders in Con- Farmers lose. All energy consumers sistance by $191 million nationwide. necticut, it is difficult to understand lose. But if the block and blame game Subsequently, it issued a notice on why HUD would be trying to balance works and Republicans lose, too, then April 22, 2004 that put in place a new its budget on the backs of low-income it is all worth it, because Congressional system for funding Section 8 vouchers Americans. Democrats win. that differed greatly from its usual The Department of Housing and The block and blame game. practice. In the past, HUD would reim- Urban Development’s April 22, 2004 no- An interesting exchange occurred be- burse housing authorities for the cost tice is therefore just another salvo in tween Chairman MCCAIN and Senator of providing housing to low-income in- the administration’s war on the Sec- DORGAN during the debate of this dividuals based on their real, current tion 8 program. Section 8 provides amendment. Senator MCCAIN said, ‘‘I costs. Under the April 22 guidelines, more than just rent assistance for low am sure there may be a headline in however, the reimbursements will be and moderate wage individuals in high South Dakota that says: Senator gauged to August 1, 2003, plus a small cost housing markets. It also helps to DASCHLE fights for ethanol.’’ adjustment for inflation. In addition, sustain the employee base in urban Senator DORGAN responded, ‘‘Senator the change will be retroactive to Janu- markets, keeps wages for jobs in the DASCHLE has not offered an amendment ary 1, 2004, which will create even fur- service and manufacturing sectors for the purpose of a headline in South ther confusion for those public housing competitive, enables corporations to Dakota.’’ authorities whose vouchers are already remain and expand in their commu- Guess what. As soon as his amend- issued and whose budget are already fi- nities, and reduces the strain on vehic- ment failed, Senator DASCHLE did issue nalized. ular transportation systems. a press release. And not only that, the I strongly believe that that HUD’s in- In an economy that is creating few press release attacked Republicans. terpretation of the FY2004 appropria- jobs and producing scant affordable The release, according to the Con- tions law is both unduly restrictive and housing, HUD should be pursing poli- gressional Quarterly, was headlined, is in sharp contradiction to the intent cies to ensure that no family in Amer- and ‘‘Washington Republicans abandon of Congress to fully fund Section 8 pro- ica loses its housing assistance. HUD’s ethanol.’’ gram. Despite HUD’s protestations April 22 notice should therefore be The block and blame game: hurts the that Congress forced its hand to make changed, so I urge my colleagues to farmers, hurts Americans, but helps these cuts, Congress in fact added fund- support this urgent legislation. the Democrats. ing to the Section 8 program in FY2004 f I would like to share a statement so that HUD could fully fund all vouch- issued by the National Corn Growers ers currently in use. Congress appro- MANUEL RODRIGUEZ GOMEZ, MD following the vote: priated $17.6 billion in FY2004 to renew Mr. COLEMAN. Mr. President, I rise Yesterday, during consideration of legisla- expiring Section 8 contracts, or $1.4 bil- today to honor Manuel Rodriguez tion dealing with internet sales taxes, Sen- lion above the amount requested by the Gomez, MD, Emeritus Professor of Pe- ator DASCHLE offered an amendment to cre- administration. Although the FY2004 diatric Neurology at Mayo Medical ate a Renewable Fuels Standard (RFS). Sen- appropriations law did make some School in Rochester, Minnesota, for his ator DOMENICI offered S. 2095 as a second de- modest changes in how voucher fund- lifetime of education and as one of the gree amendment to the Daschle amendment. ing is disbursed, nothing in the law first physicians in the United States to S. 2095 contains the RFS as well as other energy provisions. NCGA will support all ef- mandated that HUD take the unprece- champion tuberous sclerosis complex, forts to pass an energy bill that contains an dented step of cutting housing assist- TSC. Dr. Gomez is considered by many RFS and addresses the serious problem our ance for senior citizens, the disabled, to be the ‘‘father’’ of tuberous sclerosis nation faces regarding energy. We again call and working families and individuals complex research because of his many upon Congress to set aside partisan bick- with the greatest housing needs. contributions to the field of TSC re- ering and to pass an energy bill. It therefore makes little sense that search and passionate patient care. I agree wholeheartedly with the Na- HUD would insist on reading the Through his work to describe TSC over tional Corn Growers Association. We FY2004 appropriations law in such a the lifespan of an individual with the have serious problems facing our na- way as to produce more homelessness disorder and the extraordinary re- tion, and we have several very impor- across the nation. My own State of sources provided by the Mayo Clinic, tant bills aimed at addressing these Connecticut will be especially hurt if Dr. Gomez published extensively on his problems that are falling victim to the HUD’s April 22 notice is not changed to growing knowledge of the multiple block and blame game. reflect the program commitments of organ involvement in TSC. He passion- I wish that what I was told by a housing authorities. Many public hous- ately encouraged his colleagues to not Democratic lobbyist, about the strat- ing authorities in Connecticut are an- only provide medical care for individ- egy to block everything this year . . . ticipating that the HUD proposal will uals with TSC, but to also share their I wish that it were not true. I hope that result in a significant reduction in knowledge through conferences, publi- the Democratic leaders will have a funds needed to honor existing con- cations and the three editions of the change of heart and a change of cam- tracts as well as effectively administer book, ‘‘Tuberous Sclerosis Complex.’’ paign strategy that allows vital pieces the voucher program. The current av- This book is considered by his peers to of legislation to be signed by the Presi- erage Housing Assistance Payment for be the premier medical textbook for dent this year, and then let the elec- many agencies has typically increased care of TSC patients. For his dedication be fought over who has the best beyond the August 1, 2003 ‘‘benchmark’’ tion to the many individuals he treated ideas or who will do better if they take plus the Annual Adjustment Factor. In throughout his medical practice and control of Congress or the White most cases, this result is not due to in- his guidance of the Tuberous Sclerosis House. creases in local rental rates but re- Alliance, Dr. Gomez made the world a

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5945 better place for individuals living with I express my own gratitude to the reer, he was a devoted husband, father, TSC by providing exceptional medical people of Walnut, IA, for their extraor- and grandfather. care and guidance through the many dinary caring and kindness toward Bill Fiset was born March 15, 1921 in challenges associated with living with Erwin Arndt. Like millions of Ameri- Seattle, WA and attended Queen Anne the disease. His quest to better under- cans of what Tom Brokaw has labeled High School and the University of stand the nature and cause of the dis- ‘‘the Greatest Generation,’’ Mr. Arndt Washington, where he was a member of ease will benefit all patients diagnosed served our Nation with dedication in the Delta Kappa Epsilon Fraternity with this condition and possible unlock both war and peace. and a member of the golf team. At 21, the secret to a cure that will eradicate In their own special way, the people he was a reporter and wrote a column this disease once and for all. Because of of Walnut have said thank you to this called ‘‘Strolling Around the Town’’ for his dedication to his patients and his veteran and beloved member of the the Seattle Times. contribution to the research commu- community. I would like to add my At 22, Fiset saw foreign service in Af- nity, it is my pleasure to rise today, own gratitude, not just to Mr. Arndt rica as an ambulance driver in the and offer this tribute to Dr. Gomez. but also to the good citizens of Wal- American Field Service, an organiza- f nut.∑ tion giving medical aid to the Allies ADDITIONAL STATEMENTS f before the U.S. entered the war. He re- FRIENDS OF THE DES PLAINES signed the Field Service in Egypt in PUBLIC LIBRARY April 1942, and enlisted with the Royal HONORING ERWIN ARNDT Armored Service Corps. As a second ∑ Mr. DURBIN. Mr. President, I want ∑ Mr. HARKIN. Mr. President, the Na- lieutenant in the British 8th Army in to honor The Friends of the Des tional World War II Memorial will be North Africa, he served as a machine Plaines Public Library, an organiza- dedicated here in Washington on the gunner on an armored lorry defending Saturday before Memorial Day. It is a tion that has been serving the Des convoys from Italian bombers between stunningly beautiful monument, lo- Plaines community for the past 50 Tobruk and Suez. Fiset also filed field cated midway between the Lincoln Me- years. reports as a war correspondent. morial and Washington Monument. It The Friends of the Des Plaines Public Then America entered WWII. With is a long-overdue salute—an expression Library was founded in April 1954 by a refugees flooding African transports, of profound gratitude—to the millions planning committee of the northwest Fiset luckily used his recent gunnery of Americans who served their country suburban branch of the American Asso- experience to sign on with an American with courage, sacrifice, and selflessness ciation of University Women and mem- freighter as a member of the gun crew, in that war. bers of several parent organizations reaching the U.S. 3 months later. from Des Plaines area schools. I would like to share with my Senate In October, 1942, he joined the Navy. The initial objectives of The Friends colleagues a remarkable story about He did his preflight training at St. of the Des Plaines Public Library were how the small community of Walnut, Mary’s College in Moraga, CA, and to stimulate interest in the library and IA, has expressed its gratitude to a served as a blimp pilot in Airship record historical data for the town of local veteran of the Second World War, Squadron 32 on a coastal submarine pa- Des Plaines. Much of the historical Erwin Arndt. trol stationed out of Moffet Field, Cali- data first recorded by The Friends has Mr. Arndt returned from the war to fornia. serve his community as an electrician, since become part of the collection of After the war, Fiset worked as a re- a volunteer firefighter, a city council the Des Plaines Historical Society. porter for the Oakland Post Enquirer member, and commander of the local Over the course of the past 50 years, from 1946 to 1950 and joined the San AMVETS unit. Just about everybody The Friends of the Des Plaines Public Francisco Call Bulletin as a staff re- in Walnut knows and respects Mr. Library has come to play an invaluable porter from 1950 to 1952. Arndt. And there was much concern role in the ongoing operations of the when he suffered a series of strokes institution and community they serve. Fiset then wrote for the Oakland over the past year. Members have volunteered to straight- Tribune from March 1952 to 1955 as a All too typically, a man in Mr. en book shelves, provided rainy day general assignment reporter covering Arndt’s condition would have no choice plastic bags to help protect books on such infamous murder and kidnap but to become a dependent in a nursing loan, and held voter registration trials as Burton Abbott, Carl Chess- home. But friends and neighbors in drives. man; and Barbara Graham, Jack Santo Walnut came to his rescue in a truly The Friends of the Des Plaines Public and Emmett Perkins of the so-called remarkable and inspiring way. They Library holds ongoing book sales to Mountain Murder Mob. He also wit- joined hands to give him the where- provide financial support to the li- nessed and reported on their executions withal and assistance he needed to con- brary, enabling the library to purchase at San Quentin Prison. tinue living independently in his apart- additional resources and provide edu- In 1956 he wrote the Tribune’s first ment. cational programming for the citizens television column where he became A local restaurant helped to provide of Des Plaines. In the past, the pro- internationally syndicated and was in- daily meals. Several citizens helped ceeds of these book sales have enabled vited to do walk-on acting parts in Mr. Arndt to keep his apartment clean the library to purchase computers and ‘‘Route 66’’ and ‘‘Tales of Wells Fargo.’’ and orderly, and take him to medical audio visual equipment. He began a general column for the appointments. Still others organized I congratulate the Friends of the Des Tribune in 1962. That same year, he was shifts to keep him company in his Plaines Public Library as it celebrates nominated for a Pulitzer Prize and won apartment. Several especially kind its 50th anniversary. I am confident many awards for his writing. His citizens got together to purchase a mo- that this organization will continue its award-winning public service booklets torized chair to help Mr. Arndt get long tradition of promoting and fos- ‘‘This Is Sherry’’ and ‘‘Want To Be around. tering a lifelong commitment to read- Smart,’’ written by Fiset and illus- It was truly a community effort—an ing and education in the community of trated by artist Ray Marta were dis- act of collective kindness that I find Des Plaines long into the future.∑ creetly designed to warn children and truly inspiring. As you can imagine, f parents about the dangers of kidnap- Mr. Arndt’s daughter, Karen Dewinter, ping and child sex offenders. Over a is overwhelmed with gratitude for what THE LIFE OF AN AWARD-WINNING million copies were distributed free the people of Walnut did for her father. COLUMNIST, REPORTER, AUTHOR worldwide and locally by the Tribune, She told me that she was especially ∑ Mr. BIDEN. Mr. President, I honor the Bay Area Board of Education, and touched that on her father’s birthday, the life of an award-winning columnist, local police departments. The efforts the local AMVET auxiliary held a reporter and author. My friend, Bill earned a commendation by FBI Direc- party at a cafe, where they brought Fiset, lived a long, distinguished life of tor J. Edgar Hoover as, ‘‘a graphic mes- cards from local elementary and pre- 73 years, serving his country in World sage which may mean the difference school children. War II. In addition to his honorable ca- between life and death for countless

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5946 CONGRESSIONAL RECORD — SENATE May 20, 2004 youngsters,’’ and was requested by po- (The nominations received today are as amended (15 U.S.C. 4108(a)), I trans- lice departments throughout the printed at the end of the Senate pro- mit herewith the eighth biennial revi- United States, Canada, and Europe. ceedings.) sion (2004–2008) to the United States From time to time Fiset continued f Arctic Research Plan, as prepared for to file news reports. He wrote about the Congress and the Administration REPORT OF THE CONTINUATION the airlift of Vietnamese-American by the Interagency Arctic Research OF THE NATIONAL EMERGENCY children out of Vietnam by Ed Daly, a Policy Committee. PROTECTING THE DEVELOPMENT friend and the flamboyant owner of GEORGE W. BUSH. FUND FOR IRAQ AND CERTAIN World Airways. In 1973, Fiset was one THE WHITE HOUSE, May 20, 2004. OTHER PROPERTY IN WHICH of the first to file an eyewitness report IRAQ HAS AN INTEREST—PM 78 f on the crash of the Soviet SST TU–144 The PRESIDING OFFICER laid be- 2004 COMPREHENSIVE REPORT ON crash at the Paris Air Show. U.S. TRADE AND INVESTMENT An avid golfer, Fiset participated in fore the Senate the following message from the President of the United POLICY FOR SUB-SAHARAN AFRI- many civic groups and fund raisers. He CA AND IMPLEMENTATION OF taught news writing and reporting at States, together with an accompanying report; which was referred to the Com- THE AFRICAN GROWTH AND OP- the College of Alameda and for many PORTUNITY ACT—PM 80 years was a board member for JACKIE, mittee on Banking, Housing, and an agency that finds foster homes for Urban Affairs: The PRESIDING OFFICER laid be- children. To the Congress of the United States: fore the Senate the following message He was married for almost 60 years Section 202(d) of the National Emer- from the President of the United and is survived by his wife, Marian gencies Act (50 U.S.C. 1622(d)) provides States, together with an accompanying Fiset of Walnut Creek, his sons Rick for the automatic termination of a na- report; which was referred to the Com- Fiset of Danville, Gary Fiset of Alamo, tional emergency unless, prior to the mittee on Finance: daughter Michele Fiset Rice of Bryn anniversary date of its declaration, the To the Congress of the United States: Mawr, PA, and his eight grandchildren. President publishes in the Federal Reg- Consistent with title I of the Trade Bill Fiset died peacefully on Sunday, ister and transmits to the Congress a and Development Act of 2000, I am pro- May 2, in Concord, CA.∑ notice stating that the emergency is to viding a report prepared by my Admin- continue in effect beyond the anniver- f istration entitled ‘‘2004 Comprehensive sary date. In accordance with this pro- Report on U.S. Trade and Investment HONORING THE STUDENTS OF vision, I have sent the enclosed notice, Policy for Sub-Saharan Africa and Im- DOBSON HIGH SCHOOL stating that the national emergency plementation of the African Growth ∑ Mr. KYL. Mr. President, earlier this declared in Executive Order 13303 of and Opportunity Act.’’ month, more than 1,250 students from May 22, 2003, as expanded in scope by GEORGE W. BUSH. across the United States were in Wash- Executive Order 13315 of August 28, THE WHITE HOUSE, May 20, 2004. ington, DC to compete in the national 2003, protecting the Development Fund f for Iraq and certain other property in finals of the ‘‘We the People: The Cit- MESSAGES FROM THE HOUSE izen and the Constitution’’ program. I which Iraq has an interest, is to con- At 10:38 a.m., a message from the am proud to note that the class from tinue in effect beyond May 22, 2004, to House of Representatives, delivered by Dobson High School from Mesa, AZ re- the Federal Register for publication. the House Enrolling Clerk, announced ceived a fourth place honorable men- The obstacles to the orderly recon- that the House has agreed to the report tion in this year’s competition. struction of Iraq, the restoration and of the committee of conference on the I would like to take a moment to maintenance of peace and security in disagreeing votes of the two Houses on mention the names of those students the country, and the development of the amendment of the House to the res- who competed for Dobson High: An- political, administrative, and economic olution (S. Con. Res. 95) setting forth drew Barrett, Andi Berlin, Amanda institutions in Iraq constituted by the the congressional budget for the United Campbell, Catherine Capozzi, Eric threat of attachment or other judicial States Government for fiscal year 2005 Chen, Katy Cronenberg, Tom Emmons, process against the Development Fund and including the appropriate budg- Eva Farnsworth, Jennifer Heller, Annie for Iraq, Iraqi petroleum and petroleum etary levels for fiscal years 2006 Ho, Jamie Kearney, Katie Kearney, products, and interests therein, and through 2009. Maureen Klaum, Nicole Klundt, Jessie proceeds, obligations, or any financial The message also announced that Leatham, Angela Mallard, Tara instruments of any nature whatsoever pursuant to section 211 of the Older McMurdy, Joanna Sung, Taylor Morris, arising from or related to the sale or Americans Act Amendments of 2000 (42 Kim Nath, Janne Perona, Dean Thong- marketing thereof, pose a continuing U.S.C. 3001 note), the Minority Leader Kahm, and Shaochen Wu. I would also unusual and extraordinary threat to appoints the following individuals on like to acknowledge their teacher, the national security and foreign pol- the part of the House of Representa- Abby Dupke, the district coordinator, icy of the United States. For these rea- tives to the Policy Committee of the Kathy Williams, and the State coordi- sons, I have determined that it is nec- White House Conference on Aging: Bar- nator, Susan Nusso. essary to continue the national emer- bara Kennelly of Connecticut and Rob- I congratulate these budding con- gency protecting the Development ert B. Blancato of Virginia. stitutional experts and wish them the Fund for Iraq, and certain other prop- best of luck in the future.∑ erty in which Iraq has an interest, and f to maintain in force the sanctions to ENROLLED BILLS SIGNED f respond to this threat. At 11:55 a.m., a message from the MESSAGES FROM THE PRESIDENT GEORGE W. BUSH. THE WHITE HOUSE, May 20, 2004. House of Representatives, delivered by Messages from the President of the f Ms. Niland, one of its reading clerks, United States were communicated to announced that the Speaker has signed the Senate by Ms. Evans, one of his UNITED STATES ARCTIC the following enrolled bills: RESEARCH PLAN—PM 79 secretaries. H. R. 923. An act to amend the Small Busi- f The PRESIDING OFFICER laid be- ness Investment Act of 1958 to allow certain fore the Senate the following message premier certified lenders to elect to main- EXECUTIVE MESSAGES REFERRED from the President of the United tain an alternative loss reserve. As in the executive session the Pre- States, together with an accompanying H.R. 3104. An act to provide for the estab- siding Officer laid before the Senate report; which was referred to the Com- lishment of separate campaign medals to be mittee on Governmental Affairs: awarded to members of the uniformed serv- messages from the President of the ices who participate in Operation Enduring United States submitting sundry nomi- To the Congress of the United States: Freedom and to members of the uniformed nations which were referred to the ap- Consistent with the provisions of the services who participate in Operation Iraqi propriate committees. Arctic Research and Policy Act of 1984, Freedom.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5947 The enrolled bills were signed subse- tional Safety and Health Review Commis- EC–7638. A communication from the Chair- quently by the President pro tempore sion; to provide for an independent review of man, Appraisal Subcommittee, Federal Fi- (Mr. STEVENS). citations issued by the Occupational Safety nancial Institutions Examination Council, and Health Administration; to provide for transmitting, pursuant to law, the Sub- At 4:51 p.m., a message from the the award of attorney’s fees and costs to committee’s Annual Report; to the Com- very small employers when they prevail in mittee on Banking, Housing, and Urban Af- House of Representatives, delivered by litigation prompted by the issuance of cita- fairs. Mr. Hays, one of its reading clerks, an- tions by the Occupational Safety and Health EC–7639. A communication from the Para- nounced that the House has agreed to Administration; and to amend the Paper- legal Specialist, Federal Aviation Adminis- the following concurrent resolutions, work Reduction Act and titles 5 and 31, tration, Department of Transportation, in which it requests the concurrence of United States Code, to reform Federal paper- transmitting, pursuant to law, the report of the Senate: work and regulatory processes. a rule entitled ‘‘Airworthiness Directives: Airbus Model A300 B4–600, B4–600R, C4–605R H. Con. Res. 424. Concurrent resolution S. 2448. A bill to coordinate rights under Variant F, and F4–600R (Collectively Called honoring past and current members of the the Uniformed Services Employment and Re- A300 and 600) Airplanes and Model A310 Doc. Armed Forces of the United States and en- employment Rights Act of 1994 with other No. 2004–NM–57’’ (RIN2120–AA64) received on couraging Americans to wear red poppies on Federal laws. May 19, 2004; to the Committee on Com- Memorial Day. f merce, Science, and Transportation. H. Con. Res. 432. Concurrent resolution MEASURES READ THE FIRST TIME EC–7640. A communication from the Para- providing for a conditional adjournment of legal Specialist, Federal Aviation Adminis- the House of Representatives and a condi- The following bills were read the first tration, Department of Transportation, tional recess or adjournment of the Senate. time: transmitting, pursuant to law, the report of The message also announced that the H.R. 4279. To amend the Internal Revenue a rule entitled ‘‘Airworthiness Directives: House disagree to the amendment of Code of 1986 to provide for the disposition of Boeing Model 747–400, and 400D Airplanes the Senate to the bill (H.R. 1047) to unused health benefits in cafeteria plans and Doc. No. 2004–NM–42’’ (RIN2120–AA64) re- amend the harmonized Tariff Schedule flexible spending arrangements, to improve ceived on May 19, 2004; to the Committee on patient access to health care services and Commerce, Science, and Transportation. of the United States to modify tempo- EC–7641. A communication from the Para- rarily certain rates of duty, to make provide improved medical care by reducing the excessive burden the liability system legal Specialist, Federal Aviation Adminis- other technical amendments to the places on the health care delivery system, tration, Department of Transportation, trade laws, and for other purposes, and and to amend title I of the Employee Retire- transmitting, pursuant to law, the report of ask a conference with the Senate on ment Income Security Act of 1974 to improve a rule entitled ‘‘Airworthiness Directives: the disagreeing votes of the two Houses access and choice for entrepreneurs with McDonnell Douglas Model MD–90–30 Air- thereon. small businesses with respect to medical planes Doc. No. 2001–NM–226’’ (RIN2120–AA64) Ordered, That the following Members care for their employees. received on May 19, 2004; to the Committee S. 2451. A bill to amend the Agricultural on Commerce, Science, and Transportation. be the managers of the conference on EC–7642. A communication from the Para- the part of the House: From the Com- Marketing Act of 1946 to restore the application date for country of origin labeling. legal Specialist, Federal Aviation Adminis- mittee on Ways and Means, for consid- tration, Department of Transportation, eration of the House bill and the Sen- f transmitting, pursuant to law, the report of ate amendment, and modifications EXECUTIVE AND OTHER a rule entitled ‘‘Airworthiness Directives: committed to conference: Mr. THOMAS, COMMUNICATIONS Boeing Model 737–300, 400, and 500 Airplanes Mr. CRANE, Mr. SHAW, Mr. RANGEL, and Doc. No. 2002–NM–174’’ (RIN2120–AA64) re- The following communications were ceived on May 19, 2004; to the Committee on Mr. LEVIN. laid before the Senate, together with Commerce, Science, and Transportation. f accompanying papers, reports, and doc- EC–7643. A communication from the Para- ENROLLED BILLS SIGNED uments, and were referred as indicated: legal Specialist, Federal Aviation Adminis- tration, Department of Transportation, At 7:28 p.m., a message from the EC–7632. A communication from the Dep- transmitting, pursuant to law, the report of House of Representatives, delivered by uty Associate Administrator, Environmental a rule entitled ‘‘Airworthiness Directives: Protection Agency, transmitting, pursuant Ms. Niland, one of its reading clerks, Boeing Model 707 and 720 Series Airplanes to law, the report of a rule entitled Doc. No. 2002–NM–335’’ (RIN2120–AA64) re- announced that the Speaker has signed ‘‘Indoxacarb; Time-Limited Pesticide Toler- the following enrolled bills: ceived on May 19, 2004; to the Committee on ance’’ (FRL#7359–1) received on May 19, 2004; Commerce, Science, and Transportation. H.R. 408. An act to provide for expansion of to the Committee on Agriculture, Nutrition, EC–7644. A communication from the Para- Sleeping Bear Dunes National Lakeshore. and Forestry. legal Specialist, Federal Aviation Adminis- H.R. 708. An act to require the conveyance EC–7633. A communication from the Dep- tration, Department of Transportation, of certain National Forest System lands in uty Associate Administrator, Environmental transmitting, pursuant to law, the report of Mendocino National Forest, California, to Protection Agency, transmitting, pursuant a rule entitled ‘‘Airworthiness Directives: provide for the use of the proceeds from such to law, the report of a rule entitled Boeing Model 737–600, 700, 700C, 800, and 900 conveyance for National Forest purposes, ‘‘Isoxadifen-ethyl; Pesticide Tolerance’’ Series Airplanes Doc. No. 2002–NM–101’’ and for other purposes. (FRL#7355–8) received on May 19, 2004; to the (RIN2120–AA64) received on May 19, 2004; to H.R. 856. An act to authorize the Secretary Committee on Agriculture, Nutrition, and the Committee on Commerce, Science, and of the Interior to revise a repayment con- Forestry. Transportation. tract with the Tom Green County Water EC–7634. A communication from the Assist- EC–7645. A communication from the Para- Control and Improvement District No. 1, San ant Director for Executive and Political Per- legal Specialist, Federal Aviation Adminis- Angelo project, Texas, and for other pur- sonnel, Department of the Army, transmit- tration, Department of Transportation, poses. ting, pursuant to law, a nomination rejected, transmitting, pursuant to law, the report of H.R. 1598. An act to amend the Reclama- withdrawn, or returned, received on May 19, a rule entitled ‘‘Airworthiness Directives: tion Wastewater and Groundwater Study and 2004; to the Committee on Armed Services. Boeing Model 767–400ER Series Airplanes Facilities Act to authorize the Secretary of EC–7635. A communication from the Sec- Doc. No. 2002–NM–287’’ (RIN2120–AA64) re- the Interior to participate in projects within retary of Defense, transmitting, the report of ceived on May 19, 2004; to the Committee on the San Diego Creek Watershed, California, a retirement; to the Committee on Armed Commerce, Science, and Transportation. and for other purposes. Services. EC–7646. A communication from the Para- EC–7636. A communication from the Acting f legal Specialist, Federal Aviation Adminis- Under Secretary of Defense for Acquisition, tration, Department of Transportation, MEASURES PLACED ON THE Technology, and Logistics, transmitting, transmitting, pursuant to law, the report of CALENDAR pursuant to law, a report relative to defense a rule entitled ‘‘Airworthiness Directives: federally funded research and development Airbus Model A321–111, 112, 131, Airplanes The following bills were read the sec- centers; to the Committee on Armed Serv- Doc. No. 2002–NM–17’’ (RIN2120–AA64) re- ond time, and placed on the calendar: ices. ceived on May 19, 2004; to the Committee on H.R. 2728. To amend the Occupational Safe- EC–7637. A communication from the Dep- Commerce, Science, and Transportation. ty and Health Act of 1970 to provide for adju- uty Secretary of the Treasury, transmitting, EC–7647. A communication from the Para- dicative flexibility with regard to an em- pursuant to law, a report on the national legal Specialist, Federal Aviation Adminis- ployer filing of a notice of contest following emergency with respect to Iran that was de- tration, Department of Transportation, the issuance of a citation by the Occupa- clared in Executive Order 12170 of November transmitting, pursuant to law, the report of tional Safety and Health Administration; to 14, 1979; to the Committee on Banking, Hous- a rule entitled ‘‘Airworthiness Directives: provide for greater efficiency at the Occupa- ing, and Urban Affairs. Construcciones Aeronauticas, S.A. (CASA),

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5948 CONGRESSIONAL RECORD — SENATE May 20, 2004 Model C–235 Airplanes Doc. No. 2002–NM–160’’ EC–7657. A communication from the Dep- EC–7666. A communication from the Assist- (RIN2120–AA64) received on May 19, 2004; to uty Associate Administrator, Environmental ant Secretary for Legislative Affairs, De- the Committee on Commerce, Science, and Protection Agency, transmitting, pursuant partment of State, transmitting, pursuant to Transportation. to law, the report of a rule entitled ‘‘Ap- the Arms Export Control Act, the report of a EC–7648. A communication from the Para- proval and Promulgation of State Implemen- proposed manufacturing license agreement legal Specialist, Federal Aviation Adminis- tation Plans; Illinois’’ (FRL#7657–8) received for the export of defense articles or defense tration, Department of Transportation, on May 19, 2004; to the Committee on Envi- services sold commercially under a contract transmitting, pursuant to law, the report of ronment and Public Works. in the amount of $100,000,000 or more to a rule entitled ‘‘Airworthiness Directives: EC–7658. A communication from the Dep- Japan; to the Committee on Foreign Rela- Construcciones Aeronauticas, S.A. (CASA), uty Associate Administrator, Environmental tions. Model C212 Airplanes Doc. No. 2002–NM–262’’ Protection Agency, transmitting, pursuant EC–7667. A communication from the Dep- (RIN2120–AA64) received on May 19, 2004; to to law, the report of a rule entitled ‘‘Finding uty Secretary of State and the Deputy Sec- the Committee on Commerce, Science, and of Failure to Submit Required State Imple- retary of Defense, transmitting, pursuant to Transportation. mentation Plan Revision for the Metropoli- law, a report relative to the Global Peace EC–7649. A communication from the Attor- tan Washington, DC Ozone Nonattainment Operations Initiative; to the Committee on ney Advisor, Maritime Administration, De- Area; Maryland’’ (FRL#7665–6) received on Foreign Relations. partment of Transportation, transmitting, May 19, 2004; to the Committee on Environ- EC–7668. A communication from the Execu- pursuant to law, the report of a rule entitled ment and Public Works. tive Secretary, Harry S. Truman Scholarship ‘‘Deferment of Service Obligations of Mid- EC–7659. A communication from the Dep- Foundation, transmitting, pursuant to law, shipmen Recipients of Scholarships or Fel- uty Associate Administrator, Environmental the Foundation’s Annual Report for 2003; to lowships’’ (RIN2133–AB58) received on May Protection Agency, transmitting, pursuant the Committee on Health, Education, Labor, 19, 2004; to the Committee on Commerce, to law, the report of a rule entitled ‘‘Revi- and Pensions. Science, and Transportation. sions to the California and Nevada State Im- EC–7669. A communication from the Sec- EC–7650. A communication from the Assist- plementation Plans, Ventura County Air retary of Labor, transmitting, pursuant to ant Secretary for Land and Minerals Man- Pollution Control District and Clark County law, the Department of Labor’s report on the agement, Department of the Interior, trans- Department of Air Quality Management’’ Office of Workers’ Compensation Programs’ mitting, pursuant to law, a report relative to (FRL#7660–6) received on May 19, 2004; to the administration of the Energy Employees Oc- leasing systems for the Cook Inlet, Sale 191; Committee on Environment and Public cupational Illness Compensation Program to the Committee on Energy and Natural Re- Works. Act of 2000; to the Committee on Health, sources. EC–7660. A communication from the Dep- Education, Labor, and Pensions. EC–7651. A communication from the Regu- uty Associate Administrator, Environmental EC–7670. A communication from the Chief, lations Officer, Federal Highway Adminis- Protection Agency, transmitting, pursuant Child Exploitation and Obscenity Section, tration, Department of Transportation, to law, the report of a rule entitled ‘‘Revi- Department of Justice, transmitting, pursu- transmitting, pursuant to law, the report of sions to the California State Implementation ant to law, the report of a rule entitled ‘‘Des- a rule entitled ‘‘National Standards for Traf- Plan, Bay Area Air Quality Management ignation of Agencies to Receive and Inves- fic Control Devices; the Manual on Uniform District, Monterey Bay Unified Air Pollution tigate Reports Required Under the Protec- Traffic Control Devices for Streets and High- Control District, and Ventura County Air tion of Children from Sexual Predators Act, ways; Specific Service and General Service Pollution Control District’’ (FRL#7665–2) re- as Amended’’ (RIN1105–AA65) received on Signing for 24-Hour Pharmacies’’ (RIN2125– ceived on May 19, 2004; to the Committee on May 18, 2004; to the Committee on the Judi- AF02) received on May 19, 2004; to the Com- Environment and Public Works. ciary. mittee on Environment and Public Works. EC–7661. A communication from the Regu- EC–7652. A communication from the Assist- lations Coordinator, Department of Health f ant Secretary of the Army for Civil Works, and Human Services, transmitting, pursuant REPORTS OF COMMITTEES Department of the Defense, transmitting, a to law, the report of a rule entitled ‘‘Medi- draft of proposed legislation relative to au- care and State Health Care Programs; Fraud The following reports of committees thority in support of the Recreation Mod- and Abuse: OIG Civil Money Penalties Under were submitted: ernization Initiative; to the Committee on the Medicare Prescription Drug Card Pro- By Mr. DOMENICI, from the Committee on Environment and Public Works. gram’’ (RIN0991–AB30) received on May 19, Energy and Natural Resources, with an EC–7653. A communication from the Dep- 2004; to the Committee on Finance. amendment: uty Associate Administrator, Environmental EC–7662. A communication from the Assist- S. 1071. A bill to authorize the Secretary of Protection Agency, transmitting, pursuant ant Secretary for Legislative Affairs, De- the Interior, through the Bureau of Reclama- to law, the report of a rule entitled ‘‘Ap- partment of State, transmitting, pursuant to tion, to conduct a feasibility study on a proval and Promulgation of Air Quality Im- the Arms Export Control Act, the report of a water conservation project within the Arch plementation Plans; Missouri Update to Ma- proposed amendment to a manufacturing li- Hurley Conservancy District in the State of terials Incorporated by Reference’’ cense agreement for the export of defense ar- New Mexico, and for other purposes (Rept. (FRL#7658–5) received on May 19, 2004; to the ticles or defense services in the amount of No. 108–267). Committee on Environment and Public $100,000,000 or more to Japan; to the Com- By Mr. DOMENICI, from the Committee on Works. mittee on Foreign Relations. Energy and Natural Resources, with an EC–7654. A communication from the Dep- EC–7663. A communication from the Assist- amendment in the nature of a substitute: uty Associate Administrator, Environmental ant Secretary for Legislative Affairs, De- S. 1097. A bill to authorize the Secretary of Protection Agency, transmitting, pursuant partment of State, transmitting, pursuant to the Interior to implement the Calfed Bay- to law, the report of a rule entitled ‘‘Ap- the Arms Export Control Act, the report of a Delta Program (Rept. No. 108–268). proval and Promulgation of Air Quality Im- proposed manufacturing license agreement S. 1582. A bill to amend the Valles Preser- plementation Plans; Pennsylvania; The 2005 for the export of defense articles or defense vation Act to improve the preservation of ROP Plan for the Pennsylvania Portion of services in the amount of $100,000,000 or more the Valles Caldera, and for other purposes the Philadelphia-Wilmington-Trenton Severe to the United Kingdom; to the Committee on (Rept. No. 108–269). Area Severe 1-Hour Ozone Nonattainment Foreign Relations . S. 1687. A bill to direct the Secretary of the Area’’ (FRL#7663–7) received on May 19, 2004; EC–7664. A communication from the Assist- Interior to conduct a study on the preserva- to the Committee on Environment and Pub- ant Secretary for Legislative Affairs, De- tion and interpretation of the historic sites lic Works. partment of State, transmitting, pursuant to of the Manhattan Project for potential inclu- EC–7655. A communication from the Dep- the Arms Export Control Act, the report of a sion in the National Park System (Rept. No. uty Associate Administrator, Environmental proposed manufacturing license agreement 108–270). Protection Agency, transmitting, pursuant for the export of defense articles or defense S. 1778. A bill to authorize a land convey- to law, the report of a rule entitled ‘‘Ap- services sold commercially under a contract ance between the United State and the City proval and Promulgation of Implementation in the amount of $100,000,000 or more to Can- of Craig, Alaska, and for other purposes Plans; Indiana’’ (FRL#7658–9) received on ada and the United Kingdom; to the Com- (Rept. No. 108–271). May 19, 2004; to the Committee on Environ- mittee on Foreign Relations. By Mr. DOMENICI, from the Committee on ment and Public Works. EC–7665. A communication from the Assist- Energy and Natural Resources, without EC–7656. A communication from the Dep- ant Secretary for Legislative Affairs, De- amendment: uty Associate Administrator, Environmental partment of State, transmitting, pursuant to S. 1791. A bill to amend the Lease Lot Con- Protection Agency, transmitting, pursuant the Arms Export Control Act, the report of a veyance Act of 2002 to provide that the to law, the report of a rule entitled ‘‘Ap- proposed manufacturing license agreement amounts received by the United States under proval and Promulgation of Implementation for the export of defense articles or defense that Act shall be deposited in the reclama- Plans; New Jersey; Motor Vehicle Enhanced services sold commercially under a contract tion fund, and for other purposes (Rept. No. Inspection and Maintenance Program’’ in the amount of $100,000,000 or more to 108–272). (FRL#7661–1) received on May 19, 2004; to the South Korea, Turkey, Spain, Saudi Arabia, By Mr. CAMPBELL, from the Committee Committee on Environment and Public and Chile; to the Committee on Foreign Re- on Indian Affairs, with an amendment in the Works. lations. nature of a substitute:

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5949 S. 1955. A bill to make technical correc- ject to the nominee’s commitment to tion with certain authority to regulate to- tions to laws relating to Native Americans, respond to requests to appear and tes- bacco products; to the Committee on Health, and for other purposes (Rept. No. 108–273). tify before any duly constituted com- Education, Labor, and Pensions. By Mr. MCCAIN, from the Committee on mittee of the Senate. By Mr. WARNER (for himself, Mr. LIE- Commerce, Science, and Transportation, BERMAN, Mr. ROBERTS, and Mr. with an amendment in the nature of a sub- (Nominations without an asterisk ALLEN): were reported with the recommenda- stitute: S. 2462. A bill to provide additional assist- S. 2279. A bill to amend title 46, United tion that they be confirmed.) ance to recipients of Federal Pell Grants who States Code, with respect to maritime trans- f are pursuing programs of study in engineer- portation security, and for other purposes ing, mathematics, science, or foreign lan- (Rept. No. 108–274). INTRODUCTION OF BILLS AND guages; to the Committee on Health, Edu- By Mr. DOMENICI, from the Committee on JOINT RESOLUTIONS cation, Labor, and Pensions. Energy and Natural Resources, without By Mr. BROWNBACK (for himself, Mr. amendment: The following bills and joint resolutions were introduced, read the first CHAMBLISS, Mr. CRAIG, Mr. CRAPO, S. Res. 321. A resolution recognizing the Mr. GRAHAM of South Carolina, and loyal service and outstanding contributions and second times by unanimous con- Mr. INHOFE): of J. Robert Oppenheimer to the United sent, and referred as indicated: S. 2463. A bill to terminate the Internal States and calling on the Secretary of En- By Mr. DASCHLE (for himself, Mr. Revenue Code of 1986; to the Committee on ergy to observe the 100th anniversary of Dr. JOHNSON, Mr. CONRAD, Mr. WYDEN, Finance. Oppenheimer’s birth with appropriate pro- and Mr. GRAHAM of Florida): By Mr. COLEMAN (for himself and grams at the Department of Energy and the S. 2451. A bill to amend the Agricultural Mrs. FEINSTEIN): Los Alamos National Laboratory (Rept. No. Marketing Act of 1946 to restore the applica- S. 2464. A bill to amend the Federal Food, 108–275). tion date for country of origin labeling; read Drug, and Cosmetic Act with respect to the H.R. 1521. A bill to provide for additional the first time. sale of prescription drugs through the Inter- lands to be included within the boundary of By Mr. FEINGOLD: net; to the Committee on Health, Education, the Johnstown Flood National Memorial in S. 2452. A bill to require labeling of raw ag- Labor, and Pensions. the State of Pennsylvania, and for other pur- ricultural forms of ginseng, including the By Mr. COLEMAN: poses (Rept. No. 108–276). country of harvest, and for other purposes; By Mr. HATCH, from the Committee on to the Committee on Agriculture, Nutrition, S. 2465. A bill to amend the Controlled Sub- the Judiciary, without amendment and with and Forestry . stances Act with respect to the seizure of a preamble: By Mr. SHELBY: shipments of controlled substances, and for H. Con. Res. 409. A concurrent resolution S. 2453. An original bill to authorize the other purposes; to the Committee on the Ju- recognizing with humble gratitude the more Secretary of Homeland Security to award diciary. than 16,000,000 veterans who served in the grants to public transportation agencies to By Mr. BROWNBACK (for himself, Mr. United States Armed Forces during World improve security, and for other purposes; ALEXANDER, Mr. BUNNING, Mr. BURNS, War II and the Americans who supported the from the Committee on Banking, Housing, Mr. COLEMAN, Mr. CRAPO, Mr. war effort on the home front and celebrating and Urban Affairs; placed on the calendar. DEWINE, Mr. ENSIGN, Mr. ENZI, Mr. the completion of the National World War II By Mr. DeWINE (for himself and Mr. FITZGERALD, Mr. GRAHAM of South Memorial on the National Mall in the Dis- DURBIN): Carolina, Mr. GRASSLEY, Mr. HATCH, trict of Columbia. S. 2454. A bill to amend the Peace Corps Mr. KYL, Mr. MCCONNELL, Mr. MIL- S. Res. 362. A resolution expressing the Act to establish an Ombudsman of the Peace LER, Mr. NICKLES, Mr. ROBERTS, Mr. sense of the Senate on the dedication of the Corps and a Office of Safety and Security of SANTORUM, Mr. SESSIONS, Mr. National World War II Memorial on May 29, the Peace Corps, to establish an independent SHELBY, Mr. TALENT, Mr. CHAMBLISS, 2004, in recognition of the duty, sacrifices, Inspector General of the Peace Corps, and for and Mr. INHOFE): and valor of the members of the Armed other purposes; to the Committee on Foreign S. 2466. A bill to ensure that women seek- Forces of the United States who served in Relations. ing an abortion are fully informed regarding World War II. By Mrs. HUTCHISON: the pain experienced by their unborn child; By Mr. HATCH, from the Committee on S. 2455. A bill to amend title II of the So- to the Committee on Health, Education, the Judiciary, with amendments: cial Security Act to repeal the windfall Labor, and Pensions. S. 1933. A bill to promote effective enforce- elimination provision and protect the retire- By Mr. SCHUMER (for himself, Mr. ment of copyrights, and for other purposes. ment of public servants; to the Committee KENNEDY, Mr. REED , Mr. DODD, Mrs. By Mr. SHELBY, from the Committee on on Finance. CLINTON, Mr. KERRY, Mr. LAUTEN- Banking, Housing, and Urban Affairs, with- By Mr. BAUCUS: BERG, Ms. CANTWELL, Mr. KOHL, Mr. out amendment: S. 2456. A bill to provide emergency dis- CORZINE, Mrs. MURRAY, Mr. CARPER, S. 2453. An original bill to authorize the aster assistance to agricultural producers, Mr. BINGAMAN, Mr. JEFFORDS, Mrs. Secretary of Homeland Security to award and for other purposes; to the Committee on BOXER, Mr. DURBIN, Mr. DAYTON, Mr. grants to public transportation agencies to Finance. LIEBERMAN, and Mr. JOHNSON): improve security, and for other purposes. By Ms. CANTWELL: S. 2467. A bill to clarify the calculation of f S. 2457. A bill entitled ‘‘Nuclear Waste per-unit costs payable under expiring annual EXECUTIVE REPORTS OF Cleanup Act’’; to the Committee on Energy contributions contracts for tenant-based and Natural Resources. COMMITTEES rental assistance that are renewed in fiscal By Mr. REID (for himself and Mr. EN- year 2004; to the Committee on Banking, The following executive reports of SIGN): Housing, and Urban Affairs. committees were submitted: S. 2458. A bill to provide for the convey- By Ms. COLLINS (for herself, Mr. CAR- ance of certain public lands in and around By Mr. GRASSLEY for the Committee on PER, Mr. STEVENS, Mr. VOINOVICH, Mr. historic mining townsites in Nevada, and for Finance. SUNUNU, Mr. LIEBERMAN, Mr. AKAKA, other purposes; to the Committee on Energy *John O. Colvin, of Virginia, to be a Judge and Mr. DURBIN): and Natural Resources. of the United States Tax Court for a term of S. 2468. A bill to reform the postal laws of By Mr. ROCKEFELLER: fifteen years. the United States; to the Committee on Gov- S. 2459. A bill to authorize the Secretary of *Juan Carlos Zarate, of California, to be an ernmental Affairs. Homeland Security to award research and Assistant Secretary of the Treasury. By Mr. TALENT: equipment grants, to provide a tax credit for *Stuart Levey, of Maryland, to be Under employers who hire temporary workers to S. 2469. A bill to amend the National His- Secretary of the Treasury for Enforcement. replace employees receiving first responder toric Preservation Act to provide appropria- By Mr. HATCH for the Committee on the training, to provide school-based mental tion authorization and improve the oper- Judiciary. health training, and for other purposes; to ations of the Advisory Council on Historic Jonathan W. Dudas, of Virginia, to be the Committee on Finance. Preservation; to the Committee on Energy Under Secretary of Commerce for Intellec- By Mr. DOMENICI: and Natural Resources. tual Property and Director of the United S. 2460. A bill to provide assistance to the By Mr. BOND (for himself, Mr. HARKIN, States Patent and Trademark Office. State of New Mexico for the development of Mr. DURBIN, Mr. TALENT, Mr. GRASS- By Mr. SPECTER for the Committee on comprehensive State water plans, and for LEY, Mr. COLEMAN, Mr. FITZGERALD, Veterans’ Affairs. other purposes; to the Committee on Energy and Mr. PRYOR): *Pamela M. Iovino, of the District of Co- and Natural Resources. S. 2470. A bill to enhance navigation capac- lumbia, to be an Assistant Secretary of Vet- By Mr. DeWINE (for himself and Mr. ity improvements and the ecosystem res- erans Affairs (Congressional Affairs). KENNEDY): toration plan for the Upper Mississippi River *Nomination was reported with rec- S. 2461. A bill to protect the public health and Illinois Waterway System; to the Com- ommendation that it be confirmed sub- by providing the Food and Drug Administra- mittee on Environment and Public Works.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5950 CONGRESSIONAL RECORD — SENATE May 20, 2004 By Mrs. CLINTON: the President to award a gold medal on (Mr. COLEMAN) was added as a cospon- S. 2471. A bill to regulate the transmission behalf of the Congress to Reverend sor of S. 2176, a bill to require the Sec- of personally identifiable information to for- Doctor Martin Luther King, Jr. (post- retary of Energy to carry out a pro- eign affiliates and subcontractors; to the humously) and his widow Coretta Scott gram of research and development to Committee on the Judiciary. By Mr. NELSON of Florida: King in recognition of their contribu- advance high-end computing. S. 2472. A bill to require that notices to tions to the Nation on behalf of the S. 2270 consumers of health and financial services civil rights movement. At the request of Mr. DEWINE, the include information on the outsourcing of S. 1369 name of the Senator from Maine (Ms. sensitive personal information abroad, to re- At the request of Mr. AKAKA, the SNOWE) was added as a cosponsor of S. quire relevant Federal agencies to prescribe name of the Senator from Michigan 2270, a bill to amend the Sherman Act regulations to ensure the privacy and secu- (Mr. LEVIN) was added as a cosponsor of rity of sensitive personal information to make oil-producing and exporting outsourced abroad, to establish requirements S. 1369, a bill to ensure that prescrip- cartels illegal. for foreign call centers, and for other pur- tion drug benefits offered to medicare S. 2271 poses; to the Committee on the Judiciary. eligible enrollees in the Federal Em- At the request of Mr. DURBIN, the f ployees Health Benefits Program are at name of the Senator from Vermont least equal to the actuarial value of (Mr. LEAHY) was added as a cosponsor SUBMISSION OF CONCURRENT AND the prescription drug benefits offered of S. 2271, a bill to establish national SENATE RESOLUTIONS to enrollees under the plan generally. standards for discharges from cruise The following concurrent resolutions S. 1379 vessels into the waters of the United and Senate resolutions were read, and At the request of Mr. JOHNSON, the States, and for other purposes. referred (or acted upon), as indicated: name of the Senator from Michigan S. 2283 (Mr. LEVIN) was added as a cosponsor of By Mr. COLEMAN: At the request of Mr. GREGG, the S. Res. 366. A resolution supporting May S. 1379, a bill to require the Secretary name of the Senator from Mississippi 2004 as National Better Hearing and Speech of the Treasury to mint coins in com- (Mr. COCHRAN) was added as a cospon- Month and commending those States that memoration of veterans who became have implemented routine hearing sor of S. 2283, a bill to extend Federal disabled for life while serving in the funding for operation of State high risk screenings for every newborn before the new- Armed Forces of the United States. born leaves the hospital; considered and health insurance pools. S. 1420 agreed to. S. 2302 By Ms. STABENOW (for herself and At the request of Mr. CRAIG, the name of the Senator from Alaska (Mr. At the request of Mr. CONRAD, the Mr. LEVIN): name of the Senator from Nebraska S. Res. 367. A resolution honoring the life STEVENS) was added as a cosponsor of (Mr. HAGEL) was added as a cosponsor of Mildred McWilliams ‘‘Millie’’ Jeffrey S. 1420, a bill to establish terms and (1910-2004) and her contributions to her com- conditions for use of certain Federal of S. 2302, a bill to improve access to munity and to the United States; considered land by outfitters and to facilitate pub- physicians in medically underserved and agreed to. lic opportunities for the recreational areas. f use and enjoyment of such land. S. 2305 At the request of Mr. HAGEL, the ADDITIONAL COSPONSORS S. 1515 At the request of Mr. GREGG, the name of the Senator from Arizona (Mr. S. 557 name of the Senator from Georgia (Mr. MCCAIN) was added as a cosponsor of S. At the request of Ms. COLLINS, the MILLER) was added as a cosponsor of S. 2305, a bill to authorize programs that name of the Senator from North Caro- 1515, a bill to establish and strengthen support economic and political devel- lina (Mr. EDWARDS) was added as a co- postsecondary programs and courses in opment in the Greater Middle East and sponsor of S. 557, a bill to amend the the subjects of traditional American Central Asia and support for three new Internal Revenue Code of 1986 to ex- history, free institutions, and Western multilateral institutions, and for other clude from gross income amounts re- civilization, available to students pre- purposes. ceived on account of claims based on paring to teach these subjects, and to S. 2351 certain unlawful discrimination and to other students. At the request of Ms. COLLINS, the allow income averaging for backpay S. 1721 name of the Senator from Connecticut and frontpay awards received on ac- At the request of Mr. CAMPBELL, the (Mr. DODD) was added as a cosponsor of count of such claims, and for other pur- name of the Senator from South Da- S. 2351, a bill to establish a Federal poses. kota (Mr. DASCHLE) was added as a co- Interagency Committee on Emergency S. 846 sponsor of S. 1721, a bill to amend the Medical Services and a Federal Inter- At the request of Mr. GRAHAM of Indian Land Consolidation Act to im- agency Committee on Emergency Med- Florida, his name was added as a co- prove provisions relating to probate of ical Services Advisory Council, and for sponsor of S. 846, a bill to amend the trust and restricted land, and for other other purposes. Internal Revenue Code of 1986 to allow purposes. S. 2363 a deduction for premiums on mortgage S. 1883 At the request of Mr. HATCH, the insurance, and for other purposes. At the request of Mr. ENZI, the name names of the Senator from Minnesota At the request of Mr. SMITH, the of the Senator from Nebraska (Mr. (Mr. DAYTON), the Senator from Idaho name of the Senator from Wisconsin HAGEL) was added as a cosponsor of S. (Mr. CRAIG), the Senator from Alaska (Mr. KOHL) was added as a cosponsor of 1883, a bill to amend the Public Health (Ms. MURKOWSKI), the Senator from S. 846, supra. Service Act to provide greater access Mississippi (Mr. COCHRAN) and the Sen- S. 847 for residents of frontier areas to the ator from Alabama (Mr. SESSIONS) were At the request of Mr. SMITH, the healthcare services provided by com- added as cosponsors of S. 2363, a bill to name of the Senator from Minnesota munity health centers. revise and extend the Boys and Girls (Mr. DAYTON) was added as a cosponsor S. 1890 Clubs of America. of S. 847, a bill to amend title XIX of At the request of Mr. ENZI, the names S. 2389 the Social Security Act to permit of the Senator from Missouri (Mr. TAL- At the request of Mr. ENSIGN, the States the option to provide medicaid ENT) and the Senator from New Mexico name of the Senator from Georgia (Mr. coverage for low income individuals in- (Mr. BINGAMAN) were added as cospon- CHAMBLISS) was added as a cosponsor of fected with HIV. sors of S. 1890, a bill to require the S. 2389, a bill to require the with- S. 1368 mandatory expensing of stock options holding of United States contributions At the request of Mr. LEVIN, the granted to executive officers, and for to the United Nations until the Presi- names of the Senator from Maine (Ms. other purposes. dent certifies that the United Nations SNOWE) and the Senator from South S. 2176 is cooperating in the investigation of Dakota (Mr. JOHNSON) were added as At the request of Mr. BINGAMAN, the the United Nations Oil-for-Food Pro- cosponsors of S. 1368, a bill to authorize name of the Senator from Minnesota gram.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5951 S. 2411 the Senator from Idaho (Mr. CRAPO) beef came into the United States and At the request of Mr. DODD, the name were added as cosponsors of amend- went straight to American consumers of the Senator from California (Mrs. ment No. 3170 proposed to S. 2400, an under a series of undisclosed permits BOXER) was added as a cosponsor of S. original bill to authorize appropria- USDA issued to the meatpackers. 2411, a bill to amend the Federal Fire tions for fiscal year 2005 for military This is how today’s article describes Prevention and Control Act of 1974 to activities of the Department of De- Secretary Veneman’s public position provide financial assistance for the im- fense, for military construction, and last August: provement of the health and safety of for defense activities of the Depart- She and her top deputies said ground beef firefighters, promote the use of life ment of Energy, to prescribe personnel imports would resume only after the agency saving technologies, achieve greater strengths for such fiscal year for the completed a formal rulemaking process, with equity for departments serving large Armed Services, and for other pur- public debate. jurisdictions, and for other purposes. poses. There was no public debate. Instead, S. 2425 AMENDMENT NO. 3171 there were undisclosed permits allow- At the request of Mr. COCHRAN, the At the request of Ms. LANDRIEU, the ing banned Canadian beef in the United name of the Senator from Alabama name of the Senator from New Mexico States. (Mr. SHELBY) was added as a cosponsor (Mr. BINGAMAN) was added as a cospon- Not only am I extremely concerned of S. 2425, a bill to amend the Tariff sor of amendment No. 3171 intended to that the Department of Agriculture de- Act of 1930 to allow for improved ad- be proposed to S. 2400, an original bill ceived American consumers by allow- ministration of new shipper adminis- to authorize appropriations for fiscal ing the import of Canadian beef that trative reviews. year 2005 for military activities of the was previously banned, but I am also Department of Defense, for military disappointed that the Bush administra- S. 2449 construction, and for defense activities tion is actually working to prevent At the request of Mr. BAUCUS, the of the Department of Energy, to pre- American consumers from knowing names of the Senator from New Hamp- scribe personnel strengths for such fis- where the food they buy comes from. shire (Mr. SUNUNU) and the Senator cal year for the Armed Services, and That is why I am introducing a bill from North Dakota (Mr. DORGAN) were for other purposes. today that will require USDA to imple- added as cosponsors of S. 2449, a bill to AMENDMENT NO. 3196 ment country-of-origin labeling on require congressional renewal of trade At the request of Mr. DURBIN, the schedule this September. That was the and travel restrictions with respect to name of the Senator from Maryland date agreed upon in the Farm Bill Cuba. (Mr. SARBANES) was added as a cospon- which the President signed into law in S. CON. RES. 81 sor of amendment No. 3196 intended to 2002. At the request of Mr. STEVENS, his be proposed to S. 2400, an original bill Unfortunately, at the urging of the name was added as a cosponsor of S. to authorize appropriations for fiscal Bush administration and the large Con. Res. 81, a concurrent resolution year 2005 for military activities of the meatpackers—most likely the same expressing the deep concern of Con- Department of Defense, for military people who urged USDA to issue per- gress regarding the failure of the Is- construction, and for defense activities mits to allow the importation of lamic Republic of Iran to adhere to its of the Department of Energy, to pre- banned Canadian meat products—Re- obligations under a safeguards agree- scribe personnel strengths for such fis- publican leaders in Congress inserted ment with the International Atomic cal year for the Armed Services, and language into last year’s omnibus ap- Energy Agency and the engagement by for other purposes. propriations bill in the dead of night Iran in activities that appear to be de- AMENDMENT NO. 3204 delaying implementation of country- signed to develop nuclear weapons. At the request of Mrs. CLINTON, the of-origin labeling for 2 years until Sep- At the request of Mrs. FEINSTEIN, the name of the Senator from New Mexico tember 2006. name of the Senator from Minnesota (Mr. BINGAMAN) was added as a cospon- The bill I am introducing today is (Mr. DAYTON) was added as a cosponsor sor of amendment No. 3204 intended to what the Senate has voted to do sev- of S. Con. Res. 81, supra. be proposed to S. 2400, an original bill eral times: Inform consumers about the S. CON. RES. 90 to authorize appropriations for fiscal origin of their food. At the request of Mr. LEVIN, the year 2005 for military activities of the Over 80 percent of American con- name of the Senator from Arkansas Department of Defense, for military sumers have said they want to know (Mr. PRYOR) was added as a cosponsor construction, and for defense activities the country of origin of their food, and of S. Con. Res. 90, a concurrent resolu- of the Department of Energy, to pre- over 170 groups representing over 50 tion expressing the Sense of the Con- scribe personnel strengths for such fis- million Americans support mandatory gress regarding negotiating, in the cal year for the Armed Services, and food labeling. United States-Thailand Free Trade for other purposes. We must not allow anyone who may Agreement, access to the United States f represent special interests, anyone who automobile industry. STATEMENTS ON INTRODUCED now abrogates the spirit as well as the letter of the law to choose big business S. RES. 221 BILLS AND JOINT RESOLUTIONS interests over the interests of the aver- At the request of Mr. SARBANES, the By Mr. DASCHLE (for himself, Mr. name of the Senator from Alabama age American family. We must ensure JOHNSON, Mr. CONRAD, Mr. WYDEN, consumer confidence, particularly now (Mr. SESSIONS) was added as a cospon- and Mr. GRAHAM of Florida): sor of S. Res. 221, a resolution recog- in light of recent developments. We nizing National Historically Black Col- S. 2451. A bill to amend the agricul- would have not had the situation of 33 leges and Universities and the impor- tural Marketing Act of 1946 to restore million pounds of banned beef entering tance and accomplishments of histori- the application date for country of ori- the United States if it couldn’t have cally Black colleges and universities. gin labeling; read the first time. been properly labeled. Mr. DASCHLE. Mr. President, today This legislation is long overdue. It is S. RES. 357 the Washington Post reported that the time that it become the law of the At the request of Mr. CAMPBELL, the United States Department of Agri- land. name of the Senator from Utah (Mr. culture secretly allowed American Mr. President, I ask unanimous con- HATCH) was added as a cosponsor of S. meatpackers to resume imports of sent that the text of the bill be printed Res. 357, a resolution designating the ground and processed beef from Canada in the RECORD. week of August 8 through August 14, last September, just weeks after Sec- There being no objection, the bill was 2004, as ‘‘National Health Center retary Veneman publicly reaffirmed ordered to be printed in the RECORD, as Week’’. the Department’s ban on such importa- follows: AMENDMENT NO. 3170 tion as a result of mad cow disease S. 2451 At the request of Mr. GRAHAM of being found in Canadian-born cattle. Be it enacted by the Senate and House of Rep- South Carolina, the names of the Sen- The article states that a total of 33 resentatives of the United States of America in ator from Colorado (Mr. ALLARD) and million pounds of Canadian processed Congress assembled,

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5952 CONGRESSIONAL RECORD — SENATE May 20, 2004 SECTION 1. COUNTRY OF ORIGIN LABELING. switch Wisconsin ginseng with Asian- S. 2452 Section 285 of the Agricultural Marketing or Canadian-grown ginseng considered Be it enacted by the Senate and House of Rep- Act of 1946 (7 U.S.C. 1638d) is amended by inferior by consumers. The lower qual- resentatives of the United States of America in striking ‘‘2006’’ and all that follows through ity ginseng is then shipped back to the Congress assembled, ‘‘2004’’ and inserting ‘‘2004’’. U.S. for sale to American consumers SECTION 1. SHORT TITLE. By Mr. FEINGOLD: who think they are buying the Wis- This Act may be cited as the ‘‘Ginseng S. 2452. A bill to require labeling of consin-grown product. Harvest Labeling Act of 2004’’. raw agricultural of ginseng, including For consumers concerned with pur- SEC. 2. DISCLOSURE OF COUNTRY OF HARVEST. the country of harvest, and for other chasing ginseng grown in the U.S., The Agricultural Marketing Act of 1946 (7 purposes; to the Committee on Agri- there is no accurate way of testing gin- U.S.C. 1621 et seq.) is amended by adding at culture, Nutrition, and Forestry. seng to determine where it was grown, the end the following: Mr. FEINGOLD. Mr. President, I other than testing for pesticides that ‘‘Subtitle E—Ginseng would like to discuss legislation I am are banned in the United States. The ‘‘SEC. 291. DISCLOSURE OF COUNTRY OF HAR- introducing that would protect ginseng Ginseng Board of Wisconsin has been VEST. farmers and consumers by ensuring testing some ginseng found on store ‘‘(a) DEFINITION OF GINSENG.—In this sec- that ginseng sold at retail discloses shelves, and in many of the products, tion, the term ‘ginseng’ means an herb or where the root was harvested. The residues of chemicals such as DDT, herbal ingredient that— lead, arsenic, and quintozine (PCNB) ‘‘(1) is derived from a plant classified with- ‘‘Ginseng Harvest Labeling Act of 2004’’ in the genus Panax; and is similar to a bill that I introduced in have been detected. Since the majority of ginseng sold in the U.S. originates ‘‘(2) is offered for sale as a raw agricultural the last Congress, but it has been fur- commodity in any form intended to be used ther strengthened based on suggestions from countries with less stringent pes- in or as a food or dietary supplement under I received from ginseng growers and ticide standards, it is vitally important the name of ‘ginseng’. the Ginseng Board of Wisconsin. that consumers know which ginseng is ‘‘(b) DISCLOSURE.— I would like to take the opportunity really grown in the U.S. ‘‘(1) IN GENERAL.—A person that offers gin- to discuss American ginseng and the To capitalize on their product’s pre- seng for sale as a raw agricultural com- problems facing Wisconsin’s ginseng eminence, the Ginseng Board of Wis- modity shall disclose to potential purchasers the country of harvest of the ginseng. growers so that my colleagues recog- consin has developed a voluntary label- ‘‘(2) IMPORTATION.—A person that imports nize the need for this legislation. Chi- ing program, stating that the ginseng is ‘‘Grown in Wisconsin, U.S.A.’’ How- ginseng into the United States shall disclose nese and Native American cultures ever, Wisconsin ginseng is so valuable the country of harvest of the ginseng at the have used ginseng for thousands of point of entry of the United States, in ac- that counterfeit labels and ginseng years for herbal and medicinal pur- cordance with section 304 of the Tariff Act of smuggling have become widespread poses. As a dietary supplement, Amer- 1930 (19 U.S.C. 1304). around the world. As a result, con- ican ginseng is widely touted for its ‘‘(c) MANNER OF DISCLOSURE.— sumers have no way of knowing the ability to improve energy and vitality, ‘‘(1) IN GENERAL.—The disclosure required most basic information about the gin- particularly in fighting fatigue or by subsection (b) shall be provided to poten- seng they purchase—where it was tial purchasers by means of a label, stamp, stress. grown, what quality or grade it is, or mark, placard, or other clear and visible sign In the U.S., ginseng is experiencing whether it contains dangerous pes- on the ginseng or on the package, display, increasing popularity as a dietary sup- ticides. holding unit, or bin containing the ginseng. plement, and I am proud to say that My legislation, the Ginseng Harvest ‘‘(2) RETAILERS.—A retailer of ginseng shall— my home State of Wisconsin is playing Labeling Act of 2004, proposes some a central role in ginseng’s resurgence. ‘‘(A) retain disclosure provided under sub- common sense steps to address some of section (b); and Wisconsin produces 97 percent of the the challenges facing the ginseng in- ginseng grown in the United States, ‘‘(B) provide disclosure to a retail pur- dustry. My legislation requires that chaser of the raw agricultural commodity. and 85 percent of the country’s ginseng ginseng, as a raw agricultural com- ‘‘(3) REGULATIONS.—The Secretary of Agri- is grown in just one Wisconsin county, modity, be sold at retail with a label culture shall by regulation prescribe with Marathon County. Ginseng is also clearly indicating the country that the specificity the manner in which disclosure grown in a number of other States such ginseng was harvested in. ‘Harvest’ is shall be made in transactions at wholesale or as Maine, Maryland, New York, North important because some Canadian and retail (including transactions by mail, telephone, or Internet or in retail stores). Carolina, Oregon, South Carolina, and Chinese growers have ginseng plants West Virginia. ‘‘(d) FAILURE TO DISCLOSE.—The Secretary that originated in the U.S., but because of Agriculture may impose on a person that For Wisconsin, ginseng has been an these plants were cultivated in the for- economic boon. Wisconsin ginseng fails to comply with subsection (b) a civil eign country, they may have been penalty of not more than— commands a premium price in world treated with chemicals not allowed for ‘‘(1) $1,000 for the first day on which the markets because it is of the highest use in the U.S. This label would also failure to disclose occurs; and quality and because it has a low pes- allow buyers of ginseng to more easily ‘‘(2) $250 for each day on which the failure ticide and chemical content. In 2002, prevent foreign companies from mixing to disclose continues.’’. U.S. exports of ginseng totaled nearly foreign-produced ginseng with ginseng SEC. 3. EFFECTIVE DATE. $45 million, much of which was grown harvested in the U.S. The country of This Act and the amendment made by this in Wisconsin. With a huge market for harvest labeling is a simple but effec- Act take effect on the date that is 180 days this high-quality ginseng overseas, and tive way to enable consumers to make after the date of enactment of this Act. growing popularity for the ancient root an informed decision. here at home, Wisconsin’s ginseng in- We must give ginseng growers the By Mr. DEWINE (for himself and dustry should have a prosperous future support they deserve by implementing Mr. DURBIN): ahead. these commonsense reforms that also S. 2454. A bill to amend the Peace Unfortunately, the outlook for gin- help consumers make informed choices Corps Act to establish an Ombudsman seng farmers is marred by a serious about the ginseng that they consume. of the Peace Corps and an Office of problem—smuggled and mislabeled gin- We must ensure that when ginseng con- Safety and Security of the Peace seng. Wisconsin ginseng is considered sumers reach for a high-quality gin- Corps, to establish an independent In- so superior to ginseng grown abroad seng product—such as Wisconsin-grown spector General of the Peace Corps, and that smugglers will go to great lengths ginseng—they are getting the real for other purposes; to the Committee to label ginseng grown in Canada or thing, not a knock-off. on Foreign Relations. Asia as ‘‘Wisconsin-grown.’’ I ask unanimous consent that the Mr. DEWINE. Mr. President, I ask Here’s how the switch takes place: full text of my bill, the Ginseng Har- unanimous consent that the Peace Wisconsin ginseng is shipped to China vest Labeling Act of 2004, be printed in Corps Volunteers Health, Safety, and to be sorted into various grades. While the RECORD. Security Act of 2004 be printed in the the sorting process is itself a legiti- There being no objection, the bill was RECORD. mate part of distributing ginseng, ordered to be printed in the RECORD, as There being no objection, the bill was smugglers often use it as a ruse to follows: ordered to be printed in the RECORD.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5953 S. 2454 ‘‘(B) the inquiries completed by the Om- (C) in section 11— Be it enacted by the Senate and House of Rep- budsman; (i) in paragraph (1), by striking ‘‘or the Of- resentatives of the United States of America in ‘‘(C) recommendations for action with re- fice of Personnel Management’’ and insert- Congress assembled, spect to such complaints, questions, con- ing ‘‘the Office of Personnel Management, or SECTION 1. SHORT TITLE. cerns, or inquiries; and the Peace Corps’’; and This Act may be cited as the ‘‘Peace Corps ‘‘(D) any other matters that the Ombuds- (ii) in paragraph (2), by inserting ‘‘, the Volunteers Health, Safety, and Security Act man considers relevant. Peace Corps’’ after ‘‘the Office of Personnel of 2004’’. ‘‘(2) CONFIDENTIALITY.—Each report sub- Management’’. mitted under paragraph (1) shall maintain (2) TECHNICAL AMENDMENT.—Section SEC. 2. OMBUDSMAN OF THE PEACE CORPS. confidentiality on any matter that the Om- The Peace Corps Act (22 U.S.C. 2501 et seq.) 9(a)(1)(U) of the Inspector General Act of 1978 budsman considers appropriate in accord- (5 U.S.C. App.) is amended by striking ‘‘and’’ is amended by inserting after section 4 the ance with subsection (e). following new section: at the end. ‘‘(h) EMPLOYEE DEFINED.—In this section, (b) TEMPORARY APPOINTMENT.—The Direc- ‘‘SEC. 4A. OMBUDSMAN OF THE PEACE CORPS. the term ‘employee’ means an employee of tor of the Peace Corps may appoint an indi- ‘‘(a) ESTABLISHMENT.—There is established the Peace Corps, an employee of the Office of vidual to assume the powers and duties of in the Peace Corps the Office of the Ombuds- Inspector General of the Peace Corps, an in- the Inspector General of the Peace Corps man of the Peace Corps (in this section re- dividual appointed or assigned under the under the Inspector General Act of 1978 (5 ferred to as the ‘Office’). The Office shall be Foreign Service Act of 1980 (22 U.S.C. 3901 et U.S.C. App.) on an interim basis until such headed by the Ombudsman of the Peace seq.) to carry out functions under this Act, time as a person is appointed by the Presi- Corps (in this section referred to as the ‘Om- or an individual subject to a personal serv- dent, by and with the advice and consent of budsman’), who shall be appointed by and re- ices contract with the Peace Corps.’’. the Senate, pursuant to the amendments port directly to the Director of the Peace SEC. 3. OFFICE OF SAFETY AND SECURITY OF made in this section. Corps. THE PEACE CORPS. (c) EXEMPTION FROM EMPLOYMENT TERM ‘‘(b) VOLUNTEER COMPLAINTS AND OTHER The Peace Corps Act (22 U.S.C. 2501 et LIMITS UNDER THE PEACE CORPS ACT.— MATTERS.—The Ombudsman shall receive seq.), as amended by section 2 of this Act, is (1) IN GENERAL.—Section 7 of the Peace and, as appropriate, inquire into complaints, further amended by inserting after section Corps Act (22 U.S.C. 2506) is amended— questions, or concerns submitted by current 4A the following new section: (A) by redesignating subsection (c) as sub- or former volunteers regarding services or ‘‘SEC. 4B. OFFICE OF SAFETY AND SECURITY OF section (b); and support provided by the Peace Corps to its THE PEACE CORPS. (B) by adding at the end the following new volunteers, including matters pertaining ‘‘(a) ESTABLISHMENT.—There is established subsection: to— in the Peace Corps the Office of Safety and ‘‘(c) The provisions of this section that ‘‘(1) the safety and security of volunteers; Security of the Peace Corps (in this section limit the duration of service, appointment, ‘‘(2) due process, including processes relat- referred to as the ‘Office’). The Office shall or assignment of individuals shall not apply ing to separation from the Peace Corps; be headed by the Associate Director of the to— ‘‘(3) benefits and assistance that may be Peace Corps for Safety and Security, who ‘‘(1) the Inspector General of the Peace due to current or former volunteers; shall be appointed by and report directly to Corps; ‘‘(4) medical or other health-related assist- the Director of the Peace Corps. ‘‘(2) officers of the Office of the Inspector ‘‘(b) RESPONSIBILITIES.—The Office estab- ance; and General of the Peace Corps; lished under subsection (a) shall be respon- ‘‘(5) access to files and records of current ‘‘(3) any individual whose official duties sible for all safety and security activities of or former volunteers. the Peace Corps, including background primarily include the safety and security of ‘‘(c) EMPLOYEE COMPLAINTS AND OTHER checks of volunteers and staff, the safety and Peace Corps volunteers or employees; MATTERS.—The Ombudsman shall receive security of volunteers and staff (including ‘‘(4) the head of the office responsible for and, as appropriate, inquire into complaints, training), the safety and security of facili- medical services of the Peace Corps; or questions, or concerns submitted by current ties, the security of information technology, ‘‘(5) any health care professional within or former employees of the Peace Corps on and other responsibilities as required by the the office responsible for medical services of any matters of grievance. Director. the Peace Corps.’’. ‘‘(d) ADDITIONAL DUTIES.—The Ombudsman ‘‘(c) SENSE OF CONGRESS.—It is the sense of (2) CONFORMING AMENDMENT.—The first pro- shall— Congress that— viso of section 15(d)(4) of the Peace Corps Act ‘‘(1) recommend responses to individual ‘‘(1) the Associate Director of Safety and (22 U.S.C. 2514(d)(4)) is amended by striking matters received under subsections (b) and Security of the Peace Corps, as appointed ‘‘7(c)’’ and inserting ‘‘7(b)’’. (c); pursuant to subsection (a) of this section, (d) COMPENSATION.—Section 7 of the Peace ‘‘(2) make recommendations for legislative, should assign a Peace Corps country security Corps Act (22 U.S.C. 2506), as amended by administrative, or regulatory adjustments to coordinator for each country where the subsection (c) of this section, is further address recurring problems or other difficul- Peace Corps has a program of volunteer serv- amended by adding at the end the following ties of the Peace Corps; ice for the purposes of carrying out the field new subsection: ‘‘(3) identify systemic issues relating to responsibilities of the Office; and ‘‘(d) The Inspector General of the Peace the practices, policies, and administrative ‘‘(2) each country security coordinator— Corps shall be compensated at the rate pro- procedures of the Peace Corps that affect ‘‘(A) should be a United States citizen; vided for level IV of the Executive Schedule volunteers and employees; and ‘‘(B) should be under the supervision of the under section 5315 of title 5, United States ‘‘(4) call attention to problems not yet ade- Peace Corps country director in such coun- Code.’’. quately considered by the Peace Corps. try; SEC. 5. OFFICE OF MEDICAL SERVICES OF THE ‘‘(e) STANDARDS OF OPERATION.—The Om- ‘‘(C) should report directly to the Asso- PEACE CORPS. budsman shall carry out the duties under ciate Director of the Peace Corps for Safety (a) REPORT ON MEDICAL SCREENING AND this section in a manner that is— and Security on all matters of importance PLACEMENT COORDINATION.—Not later than ‘‘(1) independent, impartial in the conduct that the country security coordinator con- 120 days after the date of the enactment of of inquiries, and confidential; and siders necessary; this Act, the Director of the Peace Corps ‘‘(2) consistent with the revised Standards ‘‘(D) should be responsible for coordinating shall submit to the appropriate congres- for the Establishment and Operation of Om- security activities with the regional security sional committees a report that— budsman Offices (August 2003) as endorsed by officer of the Peace Corps responsible for the (1) describes the medical screening proce- the American Bar Association. country to which such country security offi- dures and guidelines used by the office re- ‘‘(f) INVOLVEMENT IN MATTERS SUBJECT TO cer is assigned; and sponsible for medical services of the Peace ONGOING ADJUDICATION, LITIGATION, OR IN- ‘‘(E) should have access to information, in- Corps to determine whether an applicant for VESTIGATION.—The Ombudsman shall refrain cluding classified information, relating to Peace Corps service has worldwide clearance, from any involvement in the merits of indi- possible threats against Peace Corps volun- limited clearance, a deferral period, or is not vidual matters that are the subject of ongo- teers.’’. medically, including psychologically, quali- ing adjudication or litigation, or investiga- SEC. 4. INSPECTOR GENERAL OF THE PEACE fied to serve in the Peace Corps as a volun- tions related to such adjudication or litiga- CORPS. teer; tion. (a) ESTABLISHMENT OF INDEPENDENT IN- (2) describes the procedures and guidelines ‘‘(g) REPORTS.— SPECTOR GENERAL.— used by the Peace Corps to ensure that appli- ‘‘(1) IN GENERAL.—Not later than 180 days (1) IN GENERAL.—The Inspector General Act cants for Peace Corps service are matched after the date of the enactment of this sec- of 1978 (5 U.S.C. App.) is amended— with a host country where the applicant can, tion, and semiannually thereafter, the Om- (A) in section 8G(a)(2), by striking ‘‘, the with reasonable accommodations, complete budsman shall submit to the Director of the Peace Corps’’; at least two years of volunteer service with- Peace Corps, the Chair of the Peace Corps (B) in section 9(a)(1), by adding at the end out interruption due to foreseeable medical National Advisory Council, and Congress a the following new subparagraph: conditions; and report containing a summary of— ‘‘(X) of the Peace Corps, the office of that (3) with respect to each of fiscal years 2000 ‘‘(A) the complaints, questions, and con- agency referred to as the ‘Office of Inspector through 2003 and the first six months of fis- cerns considered by the Ombudsman; General’; and’’; and cal year 2004, states the number of—

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(A) medical screenings of applicants con- (1) IN GENERAL.—Not later than 180 days ‘‘(7)(A) In the case of an individual whose ducted; after the date of the enactment of this Act, primary insurance amount would be com- (B) applicants who have received world- the Director of the Peace Corps shall submit puted under paragraph (1) of this subsection, wide clearance, limited clearance, deferral to the appropriate congressional committees who— periods, and medical disqualifications to a report on the extent to which the work as- ‘‘(i) attains age 62 after 1985 (except where serve; signments of Peace Corps volunteers fulfill he or she became entitled to a disability in- (C) appeals to the Medical Screening Re- the commitment of the Peace Corps to en- surance benefit before 1986 and remained so view Board of the Peace Corps and the num- suring that— entitled in any of the 12 months immediately ber of times that an initial screening deci- (A) such assignments are well developed, preceding his or her attainment of age 62), or sion was upheld; with clear roles and expectations; and ‘‘(ii) would attain age 62 after 1985 and be- (D) requests that have been made to the (B) volunteers are well-suited for their as- comes eligible for a disability insurance ben- head of the office responsible for medical signments. efit after 1985, services of the Peace Corps for reconsider- (2) CONTENTS.—The report described in and who first becomes eligible after 1985 for ation of a decision of the Medical Screening paragraph (1) shall include— a monthly periodic payment (including a Review Board and the number of times that (A) an assessment of the extent to which payment determined under subparagraph (E), such decisions were upheld by the head of agreements between the Peace Corps and but excluding (I) a payment under the Rail- such office; host countries delineate clear roles for vol- road Retirement Act of 1974 or 1937, (II) a (E) Peace Corps volunteers who became unteers in assisting host governments to ad- payment by a social security system of a for- medically qualified to serve because of a de- vance their national development strategies; eign country based on an agreement con- cision of the Medical Screening Review (B) an assessment of the extent to which cluded between the United States and such Board and who were later evacuated or ter- the Peace Corps— foreign country pursuant to section 233, and minated their service early due to medical (i) recruits volunteers who have skills that (III) a payment based wholly on service as a reasons; correlate with the expectations cited in the member of a uniformed service (as defined in (F) Peace Corps volunteers who became country agreements; and section 210(m)) which is based in whole or in medically qualified to serve because of a de- (ii) assigns such volunteers to such posts; part upon his or her earnings for service cision of the head of the office responsible (C) a description of the procedures in place which did not constitute ‘employment’ as de- for medical services of the Peace Corps and for determining volunteer work assignments fined in section 210 for purposes of this title who were later evacuated or terminated and minimum standards for such assign- (hereafter in this paragraph and in sub- their service early due to medical reasons; ments; section (d)(3) referred to as ‘noncovered serv- (G) Peace Corps volunteers who the agency (D) the results of a survey of volunteers on ice’), the primary insurance amount of that has had to separate from service due to the health, safety, and security issues and of sat- individual during his or her concurrent enti- discovery of undisclosed medical informa- isfaction surveys, which are to be conducted tlement to such monthly periodic payment tion; and after the date of the enactment of this Act; and to old-age or disability insurance bene- (H) Peace Corps volunteers who have ter- and fits shall be computed or recomputed under minated their service early due to medical, (E) an assessment of the plan of the Peace subparagraph (B) or subparagraph (D) (as ap- including psychological, reasons. Corps to increase the number of volunteers plicable). ‘‘(B) In the case of an individual who first (b) FULL TIME DIRECTOR OF MEDICAL SERV- who are assigned to projects in sub-Saharan performs service described in subparagraph ICES.—Section 4(c) of the Peace Corps Act (22 Africa, Asia, and the Western Hemisphere, (A) after the 12th calendar month following U.S.C. 2503(c)) is amended by adding at the particularly among communities of African the date of the enactment of the Public Serv- end the following new paragraph: descent within countries in the Western ant Retirement Protection Act, if paragraph ‘‘(5) The Director of the Peace Corps shall Hemisphere, that help combat HIV/AIDS and (1) of this subsection would apply to such in- ensure that the head of the office responsible other global infectious diseases. for medical services of the Peace Corps does dividual (except for subparagraph (A) of this SEC. 7. DEFINITION OF APPROPRIATE CONGRES- paragraph), the individual’s primary insur- not occupy any other position in the Peace SIONAL COMMITTEES. Corps.’’. In this Act, the term ‘‘appropriate congres- ance amount shall be the product derived by SEC. 6. REPORTS ON THE ‘‘FIVE YEAR RULE’’ AND sional committees’’ means the Committee on multiplying— ON WORK ASSIGNMENTS OF VOLUN- Foreign Relations of the Senate and the ‘‘(i) the individual’s primary insurance TEERS OF THE PEACE CORPS. Committee on International Relations of the amount, as determined under paragraph (1) (a) REPORT BY THE COMPTROLLER GEN- House of Representatives. of this subsection and subparagraph (C)(i) of ERAL.— this paragraph, by (1) IN GENERAL.—Not later than one year ‘‘(ii) a fraction— after the date of enactment of this Act, the By Mrs. HUTCHISON: S. 2455. A bill to amend title II of the ‘‘(I) the numerator of which is the individ- Comptroller General shall submit to the ap- ual’s average indexed monthly earnings (de- propriate congressional committees a report Social security Act to repeal the wind- termined without regard to subparagraph on the effects on the ability of the Peace fall elimination provision and protect (C)(i)), and Corps to effectively manage Peace Corps op- the retirement of public servants; to ‘‘(II) the denominator of which is an erations of the limitations on the duration of the Committee on Finance. amount equal to the individual’s average in- employment, appointment, or assignment of Mrs. HUTCHISON. Mr. President, I dexed monthly earnings (as determined officers and employees of the Peace Corps ask unanimous consent that the text of under subparagraph (C)(i)), under section 7 of the Peace Corps Act (22 the bill be printed in the RECORD. rounded, if not a multiple of $0.10, to the U.S.C. 2506). There being no objection, the bill was next lower multiple of $0.10. (2) CONTENTS.—The report described in ‘‘(C)(i) For purposes of determining an in- paragraph (1) shall include— ordered to be printed in the RECORD, as dividual’s primary insurance amount pursu- (A) a description of such limitations; follows: ant to subparagraph (B)(i), the individual’s (B) a description of the history of such lim- S. 2455 average indexed monthly earnings shall be itations and the purposes for which it was Be it enacted by the Senate and House of Rep- determined by treating all service performed enacted and amended; resentatives of the United States of America in after 1950 on which the individual’s monthly (C) an analysis of the impact of such limi- Congress assembled, periodic payment referred to in subpara- tations on the ability of the Peace Corps to SECTION 1. SHORT TITLE. graph (A) is based (other than noncovered recruit capable volunteers, establish produc- This Act may be cited as the ‘‘Public Serv- service as a member of a uniformed service tive and worthwhile assignments for volun- ant Retirement Protection Act’’. (as defined in section 210(m))) as ‘employ- teers, provide for the health, safety, and se- SEC. 2. REPEAL OF CURRENT WINDFALL ELIMI- ment’ as defined in section 210 for purposes curity of volunteers, and, as declared in sec- NATION PROVISION. of this title (together with all other service tion 2(a) of the Peace Corps Act (22 U.S.C. Paragraph (7) of section 215(a) of the Social performed by such individual consisting of 2501(a)), ‘‘promote a better understanding of Security Act (42 U.S.C. 415(a)(7)) is repealed. ‘employment’ as so defined). ‘‘(ii) For purposes of determining average the American people on the part of the peo- SEC. 3. REPLACEMENT OF THE WINDFALL ELIMI- ples served and a better understanding of NATION PROVISION WITH A FOR- indexed monthly earnings as described in other peoples on the part of the American MULA EQUALIZING BENEFITS FOR clause (i), the Commissioner of Social Secu- people’’; CERTAIN INDIVIDUALS WITH NON- rity shall provide by regulation for a method (D) an assessment of whether the applica- COVERED EMPLOYMENT. for determining the amount of wages derived tion of such limitations have accomplished (a) SUBSTITUTION OF PROPORTIONAL FOR- from service performed after 1950 on which the objectives for which they were intended; MULA FOR FORMULA BASED ON COVERED POR- the individual’s periodic benefit is based and and TION OF PERIODIC BENEFIT.— which is to be treated as ‘employment’ solely (E) recommendations, if any, for legisla- (1) IN GENERAL.—Section 215(a) of the So- for purposes of clause (i). Such method shall tion to amend provisions of the Peace Corps cial Security Act (as amended by section 2 of provide for reliance on employment records Act that relate to such limitations. this Act) is amended further by inserting which are provided to the Commissioner and (b) REPORT ON WORK ASSIGNMENTS OF VOL- after paragraph (6) the following new para- which constitute a reasonable basis for UNTEERS.— graph: treatment of service as ‘employment’ for

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5955 such purposes, together with such other in- erage but less than 30 years of coverage (as Mr. REID. Mr. President, I rise today formation received by the Commissioner as so defined), the percent specified in the ap- on behalf of myself and Senator ENSIGN the Commissioner may consider appropriate plicable subdivision of subparagraph (D)(ii) to introduce the Nevada Mining Town- as a reasonable basis for treatment of service shall (if such percent is smaller than the ap- site Conveyance Act, which will ad- as ‘employment’ for such purposes. plicable percent specified in the following dress an important public land issue in ‘‘(D)(i) In the case of an individual who has table) be deemed to be the applicable percent performed service described in subparagraph specified in the following table: rural Nevada. As you may know, the (A) during or before the 12th calendar month ‘‘If the number of The applicable Federal Government controls over 87 following the date of the enactment of the such individual’s percent is: percent of the State of Nevada. That’s Public Servant Retirement Protection Act, years of coverage more than 61 million acres of land. if paragraph (1) of this subsection would (as so defined) is: This fact makes it necessary for our apply to such individual (except for subpara- 29 ...... 85 percent State and our communities to pursue graph (A) of this paragraph), there shall first 28 ...... 80 percent Federal remedies for problems that in be computed an amount equal to the individ- 27 ...... 75 percent ual’s primary insurance amount under para- 26 ...... 70 percent other States can be handled in a much graph (1) of this subsection, except that for 25 ...... 65 percent more expeditious manner. With this in purposes of such computation the percentage 24 ...... 60 percent mind, Senator ENSIGN and I look for- of the individual’s average indexed monthly 23 ...... 55 percent ward to working with our colleagues to earnings established by subparagraph (A)(i) 22 ...... 50 percent pass this common-sense legislation in a 21 ...... 45 percent of paragraph (1) shall be the percent speci- bipartisan and timely fashion. fied in clause (ii). There shall then be com- ‘‘(ii) For purposes of clause (i), the term Two rural counties in Nevada have puted (without regard to this paragraph) a ‘year of coverage’ shall have the meaning asked for our help in settling long- second amount, which shall be equal to the provided in paragraph (1)(C)(ii), except that the reference to ‘15 percent’ therein shall be standing trespass issues that hurt 2 individual’s primary insurance amount historic mining communities. The under paragraph (1) of this subsection, ex- deemed to be a reference to ‘25 percent’. cept that such second amount shall be re- ‘‘(G) An individual’s primary insurance towns of Ione and Gold Point have been duced by an amount equal to one-half of the amount determined under this paragraph continuously occupied for over 100 portion of the monthly periodic payment shall be deemed to be computed under para- years. Many residents live on land that which is attributable to noncovered service graph (1) of this subsection for the purpose of their families have ostensibly owned performed after 1956 (with such attribution applying other provisions of this title. for many decades. These citizens have being based on the proportionate number of ‘‘(H) This paragraph shall not apply in the paid their property taxes and made im- years of such noncovered service) and to case of an individual whose eligibility for old-age or disability insurance benefits is provements to their properties, reha- which the individual is entitled (or is deemed bilitated historic structures and built to be entitled) for the initial month of his or based on an agreement concluded pursuant to section 233 or an individual who on Janu- new ones. her concurrent entitlement to such monthly The documents by which many of periodic payment and old-age or disability ary 1, 1984— insurance benefits. There shall then be com- ‘‘(i) is an employee performing service to these people claim possession of the puted (without regard to this paragraph) a which social security coverage is extended properties date back many years. In third amount, which shall be equal to the in- on that date solely by reason of the amend- fact, some of the deeds are historic doc- dividual’s primary insurance amount deter- ments made by section 101 of the Social Se- uments themselves. Yet because many mined under subparagraph (B) as if subpara- curity Amendments of 1983; or of these documents do not satisfy mod- graph (B) applied in the case of such indi- ‘‘(ii) is an employee of a nonprofit organization which (on December 31, 1983) did not ern requirements for demonstrating vidual. The individual’s primary insurance land title, they have been deemed in- amount shall be the largest of the three have in effect a waiver certificate under section 3121(k) of the Internal Revenue Code of valid. In other words, the Bureau of amounts computed under this subparagraph Land Management has determined that (before the application of subsection (i)). 1954 and to the employees of which social se- ‘‘(ii) For purposes of clause (i), the percent curity coverage is extended on that date some of the residents of Ione and Gold specified in this clause is— solely by reason of the amendments made by Point are trespassing on Federal land. ‘‘(I) 80.0 percent with respect to individuals section 102 of that Act, unless social security This unfortunate situation puts the who become eligible (as defined in paragraph coverage had previously extended to service BLM at odds with the local residents (3)(B)) for old-age insurance benefits (or be- performed by such individual as an employee and county governments. came eligible as so defined for disability in- of that organization under a waiver certifi- Nye County, Esmeralda County, and cate which was subsequently (prior to De- surance benefits before attaining age 62) in the BLM have worked together for al- 1986; cember 31, 1983) terminated.’’. (2) CONFORMING AMENDMENTS.—— most 10 years to come up with a solu- ‘‘(II) 70.0 percent with respect to individ- tion to this problem. All of these par- uals who so become eligible in 1987; (A) Section 215(d)(3) of such Act (42 U.S.C. ‘‘(III) 60.0 percent with respect to individ- 415(d)(3)) is amended— ties support the legislation that we uals who so become eligible in 1988; (i) by striking ‘‘subsection (a)(7)(C)’’ each offer today as a solution to these land ‘‘(IV) 50.0 percent with respect to individ- place it appears and inserting ‘‘subsection ownerships conflicts, and as a means of uals who so become eligible in 1989; and (a)(7)(E)’’; promoting responsible resource man- ‘‘(V) 40.0 percent with respect to individ- (ii) by striking ‘‘subparagraph (E)’’ and in- agement. All of the land included in uals who so become eligible in 1990 or there- serting ‘‘subparagraph (H)’’; and our bill has been identified by the BLM (iii) by striking ‘‘subparagraph (D)’’ and in- after. for disposal. ‘‘(E)(i) Any periodic payment which other- serting ‘‘subparagraph (F)(i)’’. (B) Section 215(f)(9)(A) of such Act (42 Our legislation represents the first of wise meets the requirements of subparagraph a two-part solution. Under this bill, (A), but which is paid on other than a month- U.S.C. 415(f)(9)(A)) is amended by striking ly basis, shall be allocated on a basis equiva- ‘‘(a)(7)(C)’’ and inserting ‘‘(a)(7)(E)’’. specified lands within the historic min- lent to a monthly payment (as determined SEC. 4. EFFECTIVE DATE. ing townsites of Ione and Gold Point by the Commissioner of Social Security), The amendments made by this Act shall would be conveyed to the respective and such equivalent monthly payment shall apply with respect to monthly insurance counties. Under the provisions of a constitute a monthly periodic payment for benefits for months commencing with or State law passed several years ago in purposes of this paragraph. after the 12th calendar month following the Nevada, the counties will then re-con- ‘‘(ii) In the case of an individual who has date of the enactment of this Act. Notwith- vey the land to these people or entities elected to receive a periodic payment that standing section 215(f) of the Social Security who can demonstrate ownership or has been reduced so as to provide a sur- Act, the Commissioner of Social Security vivor’s benefit to any other individual, the shall recompute primary insurance amounts longstanding occupancy of specific payment shall be deemed to be increased (for to the extent necessary to carry out the land parcels. purposes of any computation under this amendments made by this Act. The sum of our bill is that it conveys paragraph or subsection (d)(3) by the amount for no consideration approximately 760 of such reduction. By Mr. REID (for himself and Mr. acres in Ione and Gold Point to the ‘‘(iii) For purposes of this paragraph, the ENSIGN): counties of Nye and Esmeralda. As a term ‘periodic payment’ includes a payment S. 2458. A bill to provide for the con- condition of the conveyance, all his- payable in a lump sum if it is a commutation veyance of certain public lands in and toric and cultural resources contained of, or a substitute for, periodic payments. ‘‘(F)(i) Subparagraph (D) shall not apply in around historic mining townsites in in the townsites shall be preserved and the case of an individual who has 30 years or Nevada, and for other purposes; to the protected under applicable Federal and more of coverage. In the case of an indi- Committee on Energy and Natural Re- State law. These conveyances will ben- vidual who has more than 20 years of cov- sources. efit the agencies that manage Nevada’s

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5956 CONGRESSIONAL RECORD — SENATE May 20, 2004 vast Federal lands as well as the proud vey, without consideration, all right, title, By Mr. ROCKEFELLER: citizens of our rural communities. We and interest of the United States in and to S. 2459. A bill to authorize the Sec- sincerely hope that our colleagues will mining townsites (including improvements retary of Homeland Security to award support this legislation. It is a prac- thereon) identified for conveyance on the research and equipment grants, to pro- maps entitled ‘‘Original Mining Townsite vide a tax credit for employers who tical solution that deserves swift pas- Ione Land Disposal Map Nye County’’ and sage. We salute the Bureau of Land ‘‘Original Mining Townsite Gold Point Land hire temporary workers to replace em- Management, the counties, and the Disposal Map Esmeralda County’’ dated Oc- ployees receiving first responder train- local residents for their cooperation tober 29, 2003. ing, to provide school-based mental and hard work in crafting this excel- (2) AVAILABILITY OF MAPS.—The maps re- health training, and for other purposes; lent compromise. ferred to in paragraph (1) shall be on file and to the Committee on Finance. Mr. President, I ask unanimous con- available for public inspection in the appro- Mr. ROCKEFELLER. Mr. President, I priate offices of the Secretary of the Inte- sent that the text of the bill be printed am proud today to introduce the Com- rior, including the office of the Bureau of munity Security Act of 2004. This bill in the RECORD. Land Management located in the State of is intended to help prepare our Nation There being no objection, the bill was Nevada. to cope with future disasters, as well as ordered to be printed in the RECORD, as (d) RECIPIENTS.— follows: (1) ORIGINAL RECIPIENT.—Subject to para- help the daily work of our first re- Be it enacted by the Senate and House of Rep- graph (2), the conveyance of a mining town- sponders, by adequately training and resentatives of the United States of America in site under subsection (c) shall be made to the equipping them, and by increasing Fed- Congress assembled, county in which the mining townsite is situ- eral investments in relevant research ated. SECTION 1. SHORT TITLE. and development. While much of the (2) RECONVEYANCE TO OCCUPANTS.—In the bill applies generally to all first re- This Act may be cited as the ‘‘Nevada Min- case of a mining townsite conveyed under ing Townsite Conveyance Act’’. subsection (c) for which a valid interest is sponders, this legislation gives special SEC. 2. DISPOSAL OF PUBLIC LANDS IN MINING proven by one or more persons, under the emphasis to the role of volunteer first TOWNSITES, ESMERALDA AND NYE provisions of Nevada Revised Statutes Chap- responders. COUNTIES, NEVADA. ter 244, the county that received the mining As my colleagues surely know, volun- (a) FINDINGS.— Congress finds the fol- townsite under paragraph (1) shall reconvey teers make up a very significant por- lowing: the property to that person or persons by ap- tion of our Nation’s fire service, as well (1) The Federal Government owns real propriate deed or other legal conveyance as as emergency medical personnel and, property in and around historic mining provided in that State law. For purposes of to a somewhat lesser degree, law en- townsites in the counties of Esmeralda and proving a valid interest, the person making Nye in the State of Nevada. forcement. The role of volunteers is es- the claim must have occupied the mining pecially prominent in rural areas, such (2) While the real property is under the ju- townsite for at least 15 years immediately risdiction of the Secretary of the Interior, before the date of the enactment of this Act. as in my State of West Virginia. Mak- acting through the Bureau of Land Manage- The county is not required to recognize a ing certain that local governments can ment, some of the real property land has claim under this paragraph submitted more recruit and retain first responders, and been occupied for decades by persons who than 10 years after the date of the enactment that once serving, these dedicated men took possession by purchase or other docu- of this Act. and women have the necessary tools, mented and putatively legal transactions, (e) PROTECTION OF HISTORIC AND CULTURAL are essential factors in protecting our but whose continued occupation of the real RESOURCES.—As a condition on the convey- property constitutes a ‘‘trespass’’ upon the communities. ance or reconveyance of a mining townsite Inspiration for much of this bill came title held by the Federal Government. under subsection (c), all historic and cultural (3) As a result of the confused and con- resources (including improvements) on the from the West Virginia Summit on flicting ownership claims, the real property mining townsite shall be preserved and pro- Homeland Security, which I hosted in is difficult to manage under multiple use tected in accordance with applicable Federal November of last year, and from the policies and creates a continuing source of and State law. numerous roundtable discussions I friction and unease between the Federal Gov- (f) VALID EXISTING RIGHTS.—The convey- have had with my State’s first respond- ernment and local residents. ance of a mining townsite under this section ers since the terrorist attacks on our (4) All of the real property is appropriate shall be subject to valid existing rights, in- country on September 11, 2001. During for disposal for the purpose of promoting ad- cluding any easement or other right-of-way ministrative efficiency and effectiveness, or lease in existence as of the date of the the Summit and in the discussions that and the Bureau of Land Management has al- conveyance. All valid existing rights and in- preceded it, first responders, educators, ready identified certain parcels of the real terests of mining claimants shall be main- health officials, and local elected offi- property for disposal. tained, unless those rights or interests are cials from around West Virginia pro- (5) Some of the real property contains his- deemed abandoned and void or null and void vided me with thoughtful analysis of toric and cultural values that must be pro- under— what works in Federal assistance protected. (1) section 2320 of the Revised Statutes (30 grams, what doesn’t, and what has been U.S.C. 21 et seq); (6) To promote responsible resource man- completely lacking. agement of the real property, certain parcels (2) the Federal Land Policy and Manage- ment Act of 1976 (43 U.S.C. 1701 et seq); or Although the President and Congress should be conveyed to the county in which have made great strides in improving the property is situated in accordance with (3) subtitle B of title X of the Omnibus land use management plans of the Bureau of Budget Reconciliation Act of 1993 (30 U.S.C. our homeland security, there are still Land Management so that the county can, 28(f)–(k)), including regulations promulgated gaping holes in our level of prepared- among other things, dispose of the property under section 3833.1 of title 43, Code of Fed- ness that must be filled. For the most to persons residing on or otherwise occu- eral Regulations or any successor regulation. part, the Federal Government is the pying the property. (g) SURVEY.—A mining townsite to be con- only source of funding for this work; (b) MINING TOWNSITE DEFINED.—In this sec- veyed by the United States under this section shall be sufficiently surveyed to legally work that must be done. This legislation, the term ‘‘mining townsite’’ means real tion is based on what first responders property in the counties of Esmeralda and describe the land for patent conveyance. (h) RELEASE.—On completion of the con- have told me they need and is intended Nye, Nevada, that is owned by the Federal veyance of a mining townsite under sub- to address these needs. Government, but upon which improvements section (c), the United States shall be re- What was reiterated in meeting after were constructed because of a mining oper- lieved from liability for, and shall be held meeting was that the gaps were many, ation on or near the property and based upon harmless from, any and all claims arising the belief that— and that additional State funding was from the presence of improvements and ma- unlikely. As almost every State in the (1) the property had been or would be ac- terials on the conveyed property. quired from the Federal Government by the (i) AUTHORIZATION OF APPROPRIATIONS.— Union faces budget shortfalls, I expect entity that operated the mine; or There is authorized to be appropriated to the my colleagues have heard much the (2) the person who made the improvement Secretary of the Interior such amounts as same thing. First responders and local had a valid claim for acquiring the property may be necessary to carry out the convey- politicians need to recruit and train from the Federal Government. ances required by this section, including volunteers; they need the Federal Gov- (c) CONVEYANCE AUTHORITY.— funds to cover the costs of cadastral and ernment to help them supply these (1) IN GENERAL.—Notwithstanding sections mineral surveys, mineral potential reports, 202 and 203 of the Federal Land Policy and hazardous materials, biological, cultural and men and women with basic lifesaving Management Act of 1976 (43 U.S.C. 1712, 1713), archaeological clearances, validity examina- and interoperable communication the Secretary of the Interior, acting through tions and other expenses incidental to the equipment; and they need help in fos- the Bureau of Land Management, shall con- conveyances. tering cooperation among not only the

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5957 different professions within the first partments across the country had only This bill works to address these com- responder community, but between enough radios for one-half of the fire- munity needs in two ways. First, in the first responders and the education and fighters on a shift and breathing unfortunate event that a school is the social service communities. apparatuses for only one-third. With- scene of a disaster, or is called upon to Many areas of concern were discussed out these basics, these brave men and assist a community in response to a and it became clear to me that no one women are not adequately equipped to disaster elsewhere, this bill provides program could address all of them. In- respond to a house fire and are at a se- that community with a reimbursement stead of introducing a number of small rious disadvantage when responding to mechanism for related expenses. Sec- bills, I’ve put together a package of a critical incident. ond, the bill creates a sustainable pro- legislation that contains several argu- Similarly, some firehouses and police gram to provide school-based mental ably unrelated provisions that have stations lack basic telecommuni- health services to all students. I am one thing in common—each is designed cations equipment. I have been con- convinced that having mental health to improve homeland security at the cerned for some time that many of our professionals in schools to train stu- local level. police departments in rural areas were dents and faculty about disaster avoid- In West Virginia and across the Na- operating without the crime-fighting ance and preparation makes for safer, tion, the numbers of volunteer first re- tools at their disposal that computers healthier schools and more stable com- sponders have been dwindling due to a and high-speed Internet connections munities. number of factors—National Guard and offer. So, while I was not necessarily Our institutions of higher learning Reserve call-ups and changing Amer- surprised, I was a little troubled that are already contributing to homeland ican lifestyles that leave little time for the lack of modern telecommuni- security. The Department of Homeland the serious commitment necessary to cations equipment—computer hard- Security has a program of university- be a first responder. It is believed that ware, Internet service and e-mail, and based research, and this legislation many more people would volunteer, or multiple phone and fax lines—was ham- proposes to expand it with a new re- would continue in their service as vol- pering the ability of fire departments search grant program to supplement unteers, if there were a way to carve and EMS units to serve their commu- the surprising dearth of research that out more time for the training in- nities. Given the wealth of information has been conducted on human factors in homeland security, including first volved. In addition to basic training, available and the greater amounts of responder group dynamics, citizens’ re- West Virginia and other states require first responder work conducted over sponse to disasters, and the human fac- additional training for first responders the Internet, these basic office tools tors behind preparation efforts. We who choose to serve in units special- are essential to guarantee the safety know that a primary goal of terrorists izing in Weapons of Mass Destruction and protection of our citizens. For in- is to disrupt social systems, and this (WMD) response, or mitigation of bio- stance, where this equipment is avail- social disruption is often more dev- hazards and chemical releases. In fact, able, some first responder training is astating to a community then the at- Secretary Ridge has cited West Vir- now being done over the Internet, sav- tack itself. I have actively supported ginia’s homeland security plan, including departments time and money. both basic and applied scientific re- ing development of highly trained Re- Rural firehouses are probably the ones search throughout my Senate career, gional Response Teams, as an example least likely to have an Internet-acces- and I believe science should guide pol- for other States to follow. sible computer and are also the least icy. This research grant program will The problem is, earning the right to likely to be able to fund a longer trip fund research on how terrorism and the be part of one of these teams—made up to a fire school. threat of terrorism impacts the aver- of the best of the best in their respec- So, this legislation requires the Sec- age citizen, how the inevitable societal tive disciplines—requires training that retary of Homeland Security to assess disruption can be mitigated, and will most volunteers, who are holding down the critical needs of a first responder help guide disaster planning and opti- full-time jobs in addition to their pub- unit, from personal safety equipment mize the performance of first responder lic service and family responsibilities, to office machines, and establishes a units and the systems designed to as- cannot find the time for, or in some grant program to provide the basic sist them. cases, afford. For example, West Vir- equipment essential for carrying out Historically, some States have bene- ginia’s Regional Response Team mem- the constantly expanding responsibil- fited more than others under tradi- bers are required, within the first two ities of local first responders. The Sec- tional grant systems and in response to years, to complete 200 hours of special- retary is to give emphasis to those de- that situation, our leading science ized training over and above what is al- partments most in need. These depart- funding organizations have developed ready required in their roles as fire- ments will often, but not always, be special programs to encourage the fighters or EMTs. For many volunteer rural departments. growth of research in under rep- first responders, this time commitment The other areas I cover in this bill resented states. For example, the Na- is difficult to meet but, for those whose are a bit of a departure from standard tional Science Foundation designed the jurisdictions do not pay training costs, measures to increase funding and pro- Experimental Program to Stimulate it is impossible to justify. vide better equipment for first respond- Competitive Research to support aca- To remedy this situation, this bill ers. They are, I believe, no less impor- demic research and development across creates two tax incentives: a business tant to the goal of improving the safe- the nation and to counteract the trend credit to encourage small businesses to ty and security of our towns and cities. that concentrated research expertise in allow their volunteer first responder Again, my conversations with people a few states. This bill allows for a simi- employees to take time off for train- on the front lines—in this instance lar program to be developed within the ing, and a personal deduction for the teachers and academic experts on Department of Homeland Security. first responders themselves, when homeland security and mental health— Homeland security is regional and re- training and related expenses are not inspired these provisions. search and personnel expertise must be reimbursed by their State or local gov- Our communities have had to adjust distributed around the country. Unfor- ernment. to some new realities. Our schools find tunately, terrorist threats against the My conversations with West Virginia themselves thrust into a role in dis- United States are not restricted to a first responders and local officials have aster preparedness and response that single geographic area, terrorist group, also taught me that even when a State most educators never before consid- or method of threat. Terrorism is pos- is well prepared or, in the case of West ered. When I asked school personnel sible in many parts of our country that Virginia, exceptionally prepared, gaps what was needed to improve the cir- have never had to prepare for, or re- can still exist at the local level which cumstance of schools in homeland se- spond to, such attacks. Addressing put citizens at risk. Some local first re- curity preparation, response, and miti- these threats requires regional and sponder units, especially those in rural gation efforts, I was surprised to hear local expertise; thus the homeland areas, do not feel as prepared as they their answer—mental health profes- security- related scientific and techno- know they should be. For example, a sionals in the schools and training for logical workforce and training must recent report found that most fire de- school staff in mental health issues. not be overly centralized.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5958 CONGRESSIONAL RECORD — SENATE May 20, 2004 Our country has worked extraor- to all qualified volunteer first responder em- under sections 51(a) and 1396(a) with respect dinarily hard to prepare for disaster. ployees of the taxpayer, plus to any employee shall be reduced by the The Local Preparation Act is designed ‘‘(3) the self-employment credit of a quali- credit allowed by reason of paragraph (1)(A) fied volunteer first responder self-employed with respect to such employee. to assist these preparation efforts by taxpayer. ‘‘(d) SELF-EMPLOYMENT CREDIT.—For pur- guaranteeing adequate numbers of first ‘‘(b) EMPLOYMENT CREDIT.—For purposes of responders, providing them with the this section— poses of this section— training and protection they need, and ‘‘(1) IN GENERAL.—The employment credit ‘‘(1) IN GENERAL.—The self-employment improving the safety and security of with respect to any qualified volunteer first credit with respect to a qualified volunteer first responder self-employed taxpayer is an our communities. Local preparation is responder employee of the taxpayer is an amount equal to the amount paid or incurred the bedrock of our state-wide and na- amount equal to the lesser of— ‘‘(A) the actual compensation amount with by such taxpayer with respect to a qualified tional efforts. I firmly believe these respect to such employee for such taxable self-employment replacement employee. goals will be achieved through the in- year, or ‘‘(2) QUALIFIED VOLUNTEER FIRST RE- novative programs contained in this ‘‘(B) $30,000. SPONDER SELF-EMPLOYED TAXPAYER.—The bill. I want to thank Summit partici- ‘‘(2) ACTUAL COMPENSATION AMOUNT.— term ‘qualified volunteer first responder self- pants as well as the men and women ‘‘(A) IN GENERAL.—The term ‘actual com- employed taxpayer’ means a taxpayer who— who have taken time out of their busy pensation amount’ means the amount of ‘‘(A) has self-employment income (as de- schedules to help work through the compensation paid or incurred by the tax- fined in section 1402) for the taxable year, payer with respect to a qualified volunteer and best way to design these new programs. first responder employee on any day when ‘‘(B) holds a volunteer position as a fire- Also, I want to thank first responders, such employee was absent from employment fighter, law enforcement official, or emer- both volunteer and career. After all, for the purpose of participating in a qualified gency medical service provider. they are the original inspiration for activity. ‘‘(3) QUALIFIED SELF-EMPLOYMENT REPLACE- this bill. ‘‘(B) COMPENSATION.—The term ‘compensa- MENT EMPLOYEE.—The term ‘qualified self- I ask unanimous consent that the tion’ means any remuneration for employ- employment replacement employee’ means text of the bill be printed in the ment, whether in cash or in kind, which is an individual who is hired to replace the paid or incurred by a taxpayer and which is qualified volunteer first responder self-em- RECORD. deductible from the taxpayer’s gross income There being no objection, the bill was ployed taxpayer, but only with respect to the under section 162(a)(1). period during which such taxpayer partici- ordered to be printed in the RECORD, as ‘‘(3) LIMITATION.—No credit shall be al- pates in a qualified activity, including time follows: lowed under this subsection with respect to spent in travel status. S. 2459 any day that a qualified volunteer first responder employee who takes part in a quali- ‘‘(e) DEFINITIONS AND OTHER RULES.—For Be it enacted by the Senate and House of Rep- fied activity was not scheduled to work (for purposes of this section— resentatives of the United States of America in reason other than to participate in a quali- ‘‘(1) QUALIFIED VOLUNTEER FIRST RE- Congress assembled, fied activity). SPONDER EMPLOYEE.—The term ‘qualified vol- SECTION 1. SHORT TITLE. ‘‘(c) REPLACEMENT CREDIT.—For purposes unteer first responder employee’ means an This Act may be cited as the ‘‘Community of this section.— individual who— Security Act’’. ‘‘(1) IN GENERAL.—The replacement credit ‘‘(A) has been an employee of the taxpayer SEC. 2. TAX INCENTIVES TO FACILITATE TRAIN- with respect to any qualified volunteer first for the 91-day period immediately preceding ING OR DISASTER RESPONSE BY IN- responder employee of the taxpayer is an the period during which the employee par- DIVIDUALS SERVING AS VOLUNTEER amount equal to the sum of— ticipates in a qualified activity, and FIRST RESPONDERS. ‘‘(A) the qualified compensation with re- ‘‘(B) holds a volunteer position as a fire- (a) FINDINGS.—Congress makes the fol- spect to each qualified replacement em- fighter, law enforcement official, or emer- lowing findings: ployee of the taxpayer paid by the taxpayer gency medical service provider. (1) Seventy percent of our Nation’s fire- during the taxable year, and ‘‘(2) QUALIFIED ACTIVITY.—The term ‘quali- fighters are volunteers, as are many emer- ‘‘(B) the qualified overtime wages paid by fied activity’ means— gency medical service and police personnel. the taxpayer during the taxable year. ‘‘(A) training with respect to duties per- (2) States rely heavily on the services of ‘‘(2) LIMITATION.—The amount of the credit formed in connection with the volunteer po- these volunteer first responders. allowed by reason of this subsection shall sition of the qualified volunteer first re- (3) Many career first responders begin as not exceed $12,000 for any taxable year. sponder employee or qualified volunteer first volunteers. ‘‘(3) QUALIFIED COMPENSATION.—The term responder self-employed taxpayer, and (4) Volunteer first responders need the ‘qualified compensation’ means— ‘‘(B) the performance of duties in connec- same preparation and training as career first ‘‘(A) compensation which is normally con- tion with the volunteer position of the quali- responders. Advanced training is frequently tingent on the qualified replacement em- fied volunteer first responder employee or required before volunteer first responders ployee’s presence for work and which is de- qualified volunteer first responder self-em- can be fully integrated in a State homeland ductible from the taxpayer’s gross income ployed taxpayer, but only to the extent that security plan. under section 162(a)(1), such duties take not less than 1 day to per- (5) The training and duties of volunteer ‘‘(B) compensation which is not character- form. first responders sometimes conflict with ized by the taxpayer as vacation or holiday ‘‘(3) SMALL BUSINESS EMPLOYER.— their regular employment for significant pe- pay, or as sick leave or pay, or as any other ‘‘(A) IN GENERAL.—The term ‘small busi- riods of time, such as in cases of out-of-State form of pay for a nonspecific leave of ab- ness employer’ means, with respect to any training and disaster response. In these cases sence, and taxable year, any employer who employed an employers may need to hire temporary re- ‘‘(C) group health plan costs (if any) with average of 200 or fewer employees on busi- placement workers or incur other related respect to the qualified replacement em- ness days during such taxable year. costs while the volunteer responders are ployee. ‘‘(B) CONTROLLED GROUPS.—For purposes of away from work. The burden of temporarily ‘‘(4) QUALIFIED REPLACEMENT EMPLOYEE.— subparagraph (A), all persons treated as a replacing these employees is particularly The term ‘qualified replacement employee’ single employer under subsection (b), (c), great for small and single-employer busi- means an individual who is hired to replace (m), or (o) of section 414 shall be treated as nesses. a qualified volunteer first responder em- a single employer.’’. (b) VOLUNTEER FIRST RESPONDER CREDIT.— ployee, but only with respect to the period (2) CREDIT MADE PART OF GENERAL BUSINESS (1) IN GENERAL.—Subpart D of part IV of during which such employee participates in a CREDIT.—Section 38(b) of the Internal Rev- subchapter A of chapter 1 (relating to busi- qualified activity, including time spent in enue Code of 1986 is amended by striking ness-related credits), as amended by this travel status. ‘‘plus’’ at the end of paragraph (14), by strik- Act, is amended by adding at the end the fol- ‘‘(5) QUALIFIED OVERTIME WAGES.—For pur- ing the period at the end of paragraph (15) lowing: poses of this section, the term ‘qualified and inserting ‘‘, plus’’, and by adding at the ‘‘SEC. 45G. CREDIT TO EMPLOYERS OF VOLUN- overtime wages’ means overtime wages paid end the following new paragraph: TEER FIRST RESPONDERS. to an employee of the taxpayer (other than a ‘‘(16) the volunteer first responder em- ‘‘(a) GENERAL RULE.—For purposes of sec- qualified replacement employee) for duties ployee credit determined under section tion 38, the volunteer first responder em- normally performed by a qualified volunteer 45G.’’. ployee credit is an amount equal to 50 per- first responder employee, but only with re- (3) TRANSITION RULE.—Section 39(d) of the cent of the sum of— spect to the period during which such quali- Internal Revenue Code of 1986 is amended by ‘‘(1) the employment credit with respect to fied volunteer first responder employee par- adding at the end the following new para- all qualified volunteer first responder em- ticipates in a qualified activity, including graph: ployees of the taxpayer, time spent in travel status. ‘‘(11) NO CARRYBACK OF VOLUNTEER FIRST ‘‘(2) in the case of a small business em- ‘‘(6) COORDINATION WITH OTHER CREDITS.— RESPONDER EMPLOYEE CREDIT BEFORE ENACT- ployer, the replacement credit with respect The amount of credit otherwise allowable MENT.—No portion of the unused business

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credit for any taxable year which is attrib- (B) DEDUCTION ALLOWED WHETHER OR NOT ‘‘(C) communications capabilities within utable to the volunteer first responder em- TAXPAYER ELECTS TO ITEMIZE.—Section 62(a) individual firehouses, police precincts, or ployee credit determined under section 45G of such Code (relating to adjusted gross in- other centers of emergency operation. may be carried back to a taxable year begin- come) is amended by adding at the end the ‘‘(b) STANDARD OF BASIC PREPAREDNESS.— ning before January 1, 2004.’’. following new section: Not later than September 30, 2005, the Under (4) DENIAL OF DOUBLE BENEFIT.—Section ‘‘(20) VOLUNTEER FIRST RESPONDER TRAINING Secretary for Emergency Preparedness and 280C(a) of the Internal Revenue Code of 1986 EXPENSES.—The deduction allowed by section Response shall establish a standard of basic (relating to rule for employment credits) is 224.’’. preparedness for local first responders, which amendedl (C) CONFORMING AMENDMENT.—The table of shall provide for maximum State flexibility. (A) by inserting ‘‘or compensation’’ after section for part VII of subchapter B of chap- ‘‘(c) GRANTS AUTHORIZED.—The Secretary ‘‘salaries’’, and ter 1 of such Code is amended by striking the may award need-based, competitive grants to (B) by inserting ‘‘45G,’’, after ‘‘45A(a),’’. item relating to section 224 and inserting the States and units of local government to be used for basic personal equipment and com- (5) CONFORMING AMENDMENT.—The table of following: munications enhancement needed to perform sections for subpart D of part IV of sub- ‘‘Sec. 224. Certain expenses of volunteer first their disaster response, mitigation, and re- chapter A of chapter 1 of the Internal Rev- responders. covery missions. enue Code of 1986 is amended by adding at ‘‘Sec. 225. Cross reference.’’. ‘‘(d) APPLICATION.— the end the following new item: (3) EFFECTIVE DATE.—The amendments ‘‘(1) IN GENERAL.—Each eligible entity de- ‘‘Sec. 45G. Credit to employers of volunteer made by this subsection shall apply to tax- siring a grant under this section shall sub- first responders.’’. able years beginning after December 31, 2003. mit an application to the Under Secretary (6) EFFECTIVE DATE.—The amendments for Emergency Preparedness and Response at SEC. 3. CRITICAL NEED GRANTS FOR FIRST RE- such time, in such manner, and containing made by this subsection shall apply to tax- SPONDERS. able years beginning after December 31, 2003. such information, including the safety and (a) FINDINGS.—Congress finds the fol- (c) DEDUCTION FOR CERTAIN EXPENSES OF communications equipment to be purchased lowing: VOLUNTEER FIRST RESPONDERS.— with grant funds, as the Under Secretary (1) According to a report by the Council on (1) DEDUCTION FOR TRAVEL EXPENSES.— may reasonably require. Foreign Relations Independent Task Force, (A) DEDUCTION ALLOWED.—Section 162 (re- ‘‘(2) PRIORITY.— lating to certain trade or business expenses) first responders in the United States are un- ‘‘(A) IN GENERAL.—The Under Secretary is amended by redesignating subsection (q) derfunded and unprepared for future natural, shall give the highest priority to applicants as subsection (r) and inserting after sub- technological, and human-caused disasters. demonstrating the greatest need for basic section (p) the following new subsection: (2) Local firefighters, police officers, and personal equipment and communication en- ‘‘(q) TREATMENT OF EXPENSES OF VOLUN- emergency medical personnel are responsible hancements when compared to the standard TEER FIRST RESPONDERS.—For purposes of for disaster prevention, mitigation, and re- of basic preparedness established under sub- subsection (a)(2), in the case of an individual sponse. section (d). who participates in a qualified activity (3) It is essential that first responders have ‘‘(B) INTERIM PRIORITY.—Until a standard (within the meaning of section 45G(e)(2)) as a basic safety equipment that is in good work- of basic preparedness is established under volunteer first responder (within the meaning order and customized, if appropriate, to subsection (d), the Secretary shall give high- ing of section 224) at any time during the do their jobs as safely and effectively as pos- est priority to applicants that demonstrate taxable year, such individual shall be sible. the greatest need for basic personal equip- deemed to be away from home in the pursuit (4) All first responder operation centers ment and communication enhancements of a trade or business for any period during need basic communications equipment, in- when compared to the standard under con- which such individual is away from home in cluding— sideration. connection with such participation.’’. (A) multiple touch-tone phone lines; ‘‘(3) EVALUATION PLANS.—The Secretary (B) DEDUCTION ALLOWED WHETHER OR NOT (B) a fax machine with a dedicated phone shall use evaluation plans under consider- TAXPAYER ELECTS TO ITEMIZE.—Section line; ation to help determine which applicants 62(a)(2) (relating to certain trade and busi- (C) a computer with a high-speed connec- will receive grants under this section. ness deductions of employees) is amended by tion to the Internet; and ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— adding at the end the following new subpara- (D) personal communication devices for There are authorized to be appropriated, for graph: shift supervisors, their commanders, and all each of fiscal years 2005 through 2007, such sums as may be necessary to carry out this ‘‘(F) CERTAIN EXPENSES OF VOLUNTEER first responders in a work unit. section, which shall remain available until FIRST RESPONDERS.—The deductions allowed (b) PURPOSE.—The purpose of this section expended.’’. by section 162 which consist of expenses, de- is to establish a competitive grant program termined at a rate not in excess of the rates within the Department of Homeland Secu- SEC. 4. SAFE SCHOOLS THROUGH MENTAL HEALTH PROGRAM. for travel expenses (including per diem in rity to provide first responders with the (a) GRANTS AUTHORIZED.—Subpart 2 of part lieu of subsistence) authorized for employees basic equipment needed to accomplish their homeland security goals. A of title IV of the Elementary and Sec- of agencies under subchapter I of chapter 57 ondary Education Act of 1965 (20 U.S.C. 7131 (c) LOCAL CRITICAL NEED HOMELAND SECU- of title 5, United States Code, paid or in- et seq.) is amended by adding at the end the RITY GRANTS FOR FIRST RESPONDERS.—Title curred by the taxpayer in connection with following: V of the Homeland Security Act of 2002 (6 participation in qualified activities (as de- ‘‘SEC. 4131. MENTAL HEALTH PROGRAMS. fined in section 45G(e)(2)) as a volunteer first U.S.C. 311 et seq.) is amended by adding at the end the following: ‘‘(a) PURPOSE.—The purpose of this section responder for any period during which such is to provide grants to States and local edu- individual is more than 100 miles away from ‘‘SEC. 510. LOCAL CRITICAL NEED HOMELAND SE- cational agencies— home in connection with such qualified ac- CURITY GRANTS FOR FIRST RE- ‘‘(1) to prepare for and respond to disasters SPONDERS. tivities.’’. or terrorism in or impacting schools; (2) DEDUCTION FOR TRAINING EXPENSES.— ‘‘(a) DEFINITIONS.—As used in this section, ‘‘(2) to prevent avoidable disasters, such as (A) IN GENERAL.—Part VII of subchapter B the following definitions shall apply: in-school or school-related violence; of chapter 1 of the Internal Revenue Code of ‘‘(1) BASIC PERSONAL EQUIPMENT.—The term ‘‘(3) to establish community-sustainable 1986 (relating to additional itemized deduc- ‘basic personal equipment’ means equipment mental health programs in schools; and tion for individuals) is amended by redesig- necessary to achieve the standard of basic ‘‘(4) to train school personnel on mental nating section 224 as section 225 and by in- preparedness established by the Under Sec- health issues, including disaster and ter- serting after section 223 the following new retary for Emergency Preparedness and Re- rorism prevention, response, and mitigation. section: sponse under subsection (d), including— ‘‘(b) FINDINGS.—Congress makes the fol- ‘‘SEC. 224. CERTAIN EXPENSES OF VOLUNTEER ‘‘(A) personal breathing apparatus; lowing findings: FIRST RESPONDERS. ‘‘(B) protective equipment; and ‘‘(1) Schools occupy a unique place in the ‘‘(a) IN GENERAL.—In the case of a volun- ‘‘(C) bulletproof vests. community. In addition to their main mis- teer first responder, there shall be allowed as ‘‘(2) COMMUNICATIONS ENHANCEMENT.—The sion of educating children, they serve a pub- a deduction an amount equal to the expenses term ‘communications enhancement’ means lic education role and a role in community paid or incurred by the volunteer first re- improvements to local first responder com- organization. sponder necessary for training with respect munications systems that are necessary to ‘‘(2) Schools have new responsibilities in to duties performed in connection with the achieve the standard of basic preparedness the homeland security era and in terms of volunteer position of such volunteer first re- established by the Under Secretary for disaster response. Schools often serve as sponder. Emergency Preparedness and Response under community meeting places, centers of oper- ‘‘(b) VOLUNTEER FIRST RESPONDER.—For subsection (d), including the development or ation for disaster response, and shelters, and purposes of this section, the term ‘volunteer enhancement of— have a place in preventing some disasters first responder’ means an individual who ‘‘(A) emergency operations centers; from happening. Schools may also be called holds a volunteer position as a firefighter, ‘‘(B) processes and facilities for informa- upon to fill novel roles in the case of a dis- law enforcement official, or emergency med- tion sharing among different levels and first aster, such as keeping children safe after ical service provider.’’. responder units; and normal school hours.

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‘‘(3) Some disasters, such as in-school vio- ‘‘(2) APPLICATION.—An eligible entity that cated in States and territories that qualify lence, are largely preventable. Mental health desires to receive a grant under this sub- for the National Science Foundation’s professionals in schools may be able to an- section shall submit an application to the EPSCoR program or the National Institutes ticipate and prevent school-related disasters Secretary at such time, in such manner, and of Health IDeA program shall be eligible for and are better positioned to mitigate dis- accompanied by such information as the Sec- funding under the Program. aster effects. retary may require. ‘‘(c) RESPONSIBILITIES.—The Under Sec- ‘‘(4) After any disaster, people benefit from ‘‘(3) USE OF FUNDS.—An eligible entity that retary for Science and Technology shall— returning to their normal routine to what- receives a grant under this subsection shall ‘‘(1) ensure that not less than 15 percent of ever extent possible. Schools may be in the use the grant funds to reimburse elementary the Department’s overall academic research position to mitigate disaster–related stress. and secondary schools for costs incurred by funding is allocated to universities and col- ‘‘(c) DEFINITION.—In this section, the term such schools— leges in eligible States; ‘eligible entity’ means a public school or a ‘‘(A) during a disaster response; and ‘‘(2) establish a cofunding mechanism for local educational agency. ‘‘(B) for in–school mental health coun- States with academic facilities that have not ‘‘(d) SAFE SCHOOLS THROUGH MENTAL seling for a period of 13 months beginning on fully developed security-related science and HEALTH PROGRAM.— the date of the disaster.’’. technology to support burgeoning research ‘‘(1) GRANTS AUTHORIZED.—From funds (b) FEDERAL EMERGENCY ASSISTANCE.—Sec- efforts by the faculty or link them to estab- made available to carry out this subpart tion 502(a) of the Robert T. Stafford Disaster lished investigators; under section 4003(2), the Secretary shall Relief and Emergency Assistance Act (42 ‘‘(3) provide for conferences, workshops, award grants to eligible entities to pay the U.S.C. 5192(a)) is amended— outreach, and technical assistance to re- Federal share of the cost of carrying out the (1) in paragraph (6), by striking ‘‘and’’ at searchers and academic institutions in eligi- activities described in paragraph (3). the end; ble States on topics related to developing ‘‘(2) APPLICATION.—An eligible entity that (2) in paragraph (7), by striking the period science and technology expertise in areas of desires to receive a grant under this sub- at the end and inserting ‘‘; and’’; and high interest and relevance to the Depart- section shall submit an application to the (3) by adding at the end the following: ment; Secretary at such time, in such manner, and ‘‘(8) provide financial assistance to affected ‘‘(4) monitor the efforts of States to de- accompanied by such information as the Sec- State and local governments for school- velop programs that support the Depart- retary may require, including a certification based community mental health coun- ment’s mission; that the eligible entity will provide the nec- seling.’’. ‘‘(5) implement a merit review program, essary State or local funding to continue the SEC. 5. HOMELAND SECURITY RESEARCH AND consistent with program objectives, to en- activities initiated with the grant during the DEVELOPMENT GRANT PROGRAM. sure the quality of research conducted with 5-year period beginning on the date on which (a) FINDINGS.—Congress finds the fol- Program funding; and such grant is awarded. lowing: ‘‘(6) provide annual reports on the progress (1) The Department of Homeland Security ‘‘(3) USES OF FUNDS.—An eligible entity and achievements of the Program to the Sec- that receives a grant under this subsection is responsible for funding the intramural and retary. may use the grant funds to— extramural research and development to ad- ‘‘(d) ANNUAL REPORT.—Not later than ‘‘(A) train elementary school and sec- dress the Department’s scientific and tech- March 15 of each year, the Under Secretary ondary school teachers, administrators, and nological needs and requirements. for Science and Technology shall submit a other professionals to— (2) Funding has been appropriated to the report to Congress on the implementation of ‘‘(i) identify and prevent avoidable disas- Department of Homeland Security to carry the Program. ters; and out significant levels of scientific develop- ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(ii) assist children in dealing with the ment, and this funding will likely increase in There are authorized to be appropriated— aftermath of terrorism and disasters or other the future. ‘‘(1) $5,000,000 for fiscal year 2005 to carry mental health issues; (3) Terrorist threats against the United out subsection (c)(3); and ‘‘(B) provide for school-based mental States are not restricted to a single geo- ‘‘(2) such sums as may be necessary for fis- health professionals to offer services in ele- graphic area, terrorist group, or method of cal year 2006 to carry out this section.’’. threat. Undefended borders make terrorist mentary and secondary schools; SEC. 6. HOMELAND SECURITY RESEARCH EXPAN- ‘‘(C) provide mental health services to ele- attacks possible in places that have never SION GRANT PROGRAM. had to prepare for, or respond to, terrorism. mentary and secondary school students who (a) FINDINGS.—Congress finds the fol- (4) Every State must be prepared for disas- face, or have faced, disciplinary action, in- lowing: ters and will incur costs associated with cluding students who have been suspended or (1) The Department of Homeland Security homeland security. expelled from school. should fund research, which explores the in- (5) States experience varying levels of po- ‘‘(4) FEDERAL SHARE.—The Federal share of novative human dimensions of homeland se- tential homeland security threats and home- the cost of carrying out the activities under curity. land security concerns vary geographically. paragraph (3) shall be not more than— (2) Infrastructure and transportation sys- Addressing these threats requires regional ‘‘(A) 80 percent of the total cost of such ac- tems, and the systems designed to protect and local expertise, thus the scientific and tivities, in the first year of the grant award; them, are only as effective as their operators technological workforce and training should ‘‘(B) 60 percent of the total cost of such ac- and users. not be overly centralized. tivities, in the second year of the grant (3) Because communication before, during, (6) Academic research and development award; and after disasters is critical, the under- funding has not been distributed equitably in ‘‘(C) 40 percent of the total cost of such ac- standing of behavioral, psychological, and the past. Congress has taken steps to resolve tivities, in the third year of the grant award; social sciences in promoting effective com- this problem. Correcting this inequity will ‘‘(D) 20 percent of the total cost of such ac- munications with homeland security goals in provide beneficial results for science and tivities, in the fourth year of the grant mind is vital to the department’s mission. technology training and research. award; and (4) Several areas of social science are rel- (b) PURPOSE.—The purpose of this section ‘‘(E) 0 percent of the total cost of such ac- is to establish a competitive grant program evant to homeland security, including— tivities, in the fifth year of the grant award. for homeland security research and develop- (A) theories and data regarding threat ‘‘(5) STATE AND LOCAL FUNDING.—If an eligi- ment. communication and the psychological im- ble entity receiving a grant under this sub- (c) HOMELAND SECURITY RESEARCH AND DE- pacts of such threats; section fails to provide sufficient State or VELOPMENT GRANT PROGRAM.—Title III of the (B) citizen response to disaster; local funding, in accordance with paragraph Homeland Security Act of 2002 (6 U.S.C. 181 (C) group behavior in response to a threat (4), the eligible entity shall be subject to a et seq.) is amended by adding at the end the or actual disaster; penalty up to the amount received under this following: (D) theories and data about the impact of subsection, as determined by the Secretary, ‘‘SEC. 314. COMPETITIVE RESEARCH GRANT PRO- sustained attention and vigilance on rea- which shall be payable to the United States GRAM. soning; and Treasury. ‘‘(a) ESTABLISHMENT.—The Secretary, in (E) risk analysis and decision-making and ‘‘(e) SCHOOL-BASED DISASTER MITIGATION consultation with the Under Secretary for their application to homeland security. REFUND PROGRAM.— Science and Technology, shall establish a (5) Since the primary goal of terrorism is ‘‘(1) GRANTS AUTHORIZED.—From funds Homeland Security Competitive Research to disrupt social systems, the Department of made available to carry out this subpart Grant Program (referred to in this section as Homeland Security should support research under section 4003(2), the Secretary, in an the ‘Program’) to more equitably distribute on how attitudes and beliefs about terrorism emergency declared by the President under Federal research and development funds by impact— title V of the Robert T. Stafford Disaster Re- awarding competitive grants to universities (A) consumer confidence; lief and Emergency Assistance Act (42 U.S.C. and colleges in eligible States to conduct re- (B) population mobility; 501 et seq.), shall award grants to eligible en- search projects relating to homeland secu- (C) decisions about childcare; tities to pay the Federal share of the cost of rity. (D) job behaviors; and carrying out the activities described in para- ‘‘(b) ELIGIBLE STATES.—During fiscal years (E) attitudes toward immigrants, political graph (3). 2005 and 2006, colleges and universities lo- institutions, and leaders.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5961 (6) Homeland security efforts would benefit As such, the scarcity of water in New (1) provide to the State technical assist- from research on— Mexico is a dire situation. Unfortu- ance and grants for the development of com- (A) the selection, management, and train- nately, the New Mexico Office of the prehensive State water plans; ing of security personnel and first respond- State Engineer (NM OSE) lacks the (2) conduct water resources mapping in the ers; State; and (B) the impact of stereotyping and tools necessary to undertake the Her- (3) conduct a comprehensive study of marginalization of groups; culean task of effectively managing groundwater resources (including potable, (C) hate crimes; New Mexico’s water resources. brackish, and saline water resources) in the (D) the emergence and maintenance of fun- Today, I introduce legislation that State to assess the quantity, quality, and damentalist, extremist, and antigovernment would allow New Mexico to make in- interaction of groundwater and surface groups within the United States; and formed decisions about its limited water resources. (E) protection against the acts inspired by water resources. (b) TECHNICAL ASSISTANCE.—Technical as- the groups described in subparagraph (D). In order to effectively perform water sistance provided under subsection (a) may (b) PURPOSE.—The purpose of this section rights administration, as well as com- include— is to establish a program to award research (1) acquisition of hydrologic data, ground- grants to examine the social dimensions of ply with New Mexico’s compact deliv- water characterization, database develop- terrorism. eries, the State Engineer is statutorily ment, and data distribution; (c) RESEARCH EXPANSION GRANTS.—Title III required to perform assessments and (2) expansion of climate, surface water, and of the Homeland Security Act of 2002 (6 investigations of the numerous stream groundwater monitoring networks; U.S.C. 181 et seq.), as amended by section 5, systems and ground water basins lo- (3) assessment of existing water resources, is further amended by adding at the end the cated within New Mexico. However, the surface water storage, and groundwater stor- following: NM OSE is ill equipped to vigorously age potential; ‘‘SEC. 315. RESEARCH EXPANSION GRANTS. and comprehensively undertake the (4) numerical analysis and modeling necessary to provide an integrated under- ‘‘(a) IN GENERAL.—The Secretary shall daunting but critically important task award research grants to colleges and uni- standing of water resources and water man- versities to— of water resource planning. At present, agement options; ‘‘(1) analyze group dynamics during periods the NM OSE lacks adequate resources (5) participation in State planning forums of extreme stress, including how first re- to perform necessary hydrographic sur- and planning groups; sponders— veys and data collection. As such, en- (6) coordination of Federal water manage- ‘‘(A) react during such periods; suring a future water supply for my ment planning efforts; ‘‘(B) can be inoculated to stress; and home state requires that Congress pro- (7) technical review of data, models, plan- ‘‘(C) can help mitigate the stress and social vide the NM OSE with the resources ning scenarios, and water plans developed by the State; and disruption that often accompanies emer- necessary to fulfill its statutory man- gency situations; (8) provision of scientific and technical ‘‘(2) analyze the social and cultural factors date. specialists to support State and local activi- that may affect the performance of first re- The bill I introduce today would cre- ties. sponder groups; ate a standing authority for the State (c) ALLOCATION.—In providing grants under ‘‘(3) expand human factors research to all of New Mexico to seek and receive subsection (a), the Secretary shall, subject other modes of transportation including the technical assistance from the Bureau to the availability of appropriations, allo- use of infrastructure and transportation sys- of Reclamation and the United States cate— tems under evacuation circumstances; Geological Survey. It would also pro- (1) $5,000,000 to develop hydrologic models ‘‘(4) develop and demonstrate compliance vide the NM OSE the sum of $12.5 mil- and acquire associated equipment for the New Mexico Rio Grande main stem sections with operability standards for new tech- lion in federal assistance to perform nologies designed by human factors experts and Rio Taos and Hondo, Rios Nambe, in conjunction with users; hydrologic models of New Mexico’s Pojoaque and Teseque, Rio Chama, and ‘‘(5) examine the decision making of vol- most important water systems. This Lower Rio Grande tributaries; untary first responders under extended peri- bill would provide the NM OSE with (2) $1,500,000 to complete the hydrographic ods of disaster, including whether volunteer the best resources available when mak- survey development of hydrologic models first responders would report to their pri- ing crucial decisions about how best and acquire associated equipment for the mary jobs or their first responder positions if preserve our limited water stores. San Juan River and tributaries; simultaneously called to both; and Ever decreasing water supplies in (3) $1,000,000 to complete the hydrographic ‘‘(6) understand how the Homeland Secu- survey development of hydrologic models New Mexico have reached critical lev- and acquire associated equipment for South- rity Advisory System operates as a useful els and require immediate action. The communication tool for citizens. west New Mexico, including the Animas ‘‘(b) APPLICATION.—Each college and uni- Congress cannot sit idly by as water Basin, the Gila River, and tributaries; versity desiring a grant under this section shortages cause death to New Mexico’s (4) $4,500,000 for statewide digital shall submit an application to the Secretary communities. I hope the Senate will orthophotography mapping; and at such time, in such manner, and con- give this legislation its every consider- (5) such sums as are necessary to carry out taining such information as the Secretary ation. additional projects consistent with sub- may reasonably require. I ask unanimous consent that the section (b). ‘‘(c) ANNUAL REPORTS.— text of the bill be printed in the (d) NON-REIMBURSABLE AND NO COST-SHAR- ‘‘(1) REPORT TO SECRETARY.—Grant recipi- ING.—Any assistance or grants provided to RECORD. the State under this Act shall be made on a ents shall submit an annual report to the There being no objection, the bill was Secretary containing specific research find- non-reimbursable basis and without a cost- ings that may be used to improve emergency ordered to be printed in the RECORD, as sharing requirement. preparedness and response efforts. follows: (e) AUTHORIZED TRANSFERS.—On request of ‘‘(2) REPORT TO CONGRESS.—The Secretary S. 2460 the State, the Secretary shall directly trans- shall submit an annual report to Congress on Be it enacted by the Senate and House of Rep- fer to 1 or more Federal agencies any the grant program authorized by this sec- resentatives of the United States of America in amounts made available to the State to tion. Congress assembled, carry out this Act. ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— SECTION 1. SHORT TITLE. SEC. 4. AUTHORIZATION OF APPROPRIATIONS. There are authorized to be appropriated This Act may be cited as the ‘‘New Mexico There is authorized to be appropriated to $40,000,000 for each of the fiscal years 2005 Water Planning Assistance Act’’. carry out this Act $2,500,000 for each of fiscal through 2007.’’. SEC. 2. DEFINITIONS. years 2005 through 2009. In this Act: By Mr. DOMENICI: (1) SECRETARY.—The term ‘‘Secretary’’ By Mr. DEWINE (for himself and S. 2460. A bill to provide assistance to means the Secretary of the Interior, acting Mr. KENNEDY): the State of New Mexico for the devel- through the Bureau of Reclamation and the S. 2461. A bill to protect the public opment of comprehensive State water United States Geological Survey. health by providing the Food and Drug plans, and for other purposes; to the (2) STATE.—The term ‘‘State’’ means the Administration with certain authority Committee on Energy and Natural Re- State of New Mexico. to regulate tobacco products; to the sources. SEC. 3. COMPREHENSIVE WATER PLAN ASSIST- Committee on Health, Education, ANCE. Mr. DOMENICI. Mr. President, water (a) IN GENERAL.— On the request of the Labor, and Pensions. is the life’s blood for New Mexico. Governor of the State and subject to sub- Mr. DEWINE. Mr. President, today I When the water dries up in New Mex- sections (b) through (e), the Secretary join our colleague from Massachusetts, ico, so will many of its communities. shall— Senator KENNEDY, to introduce a bill

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5962 CONGRESSIONAL RECORD — SENATE May 20, 2004 designed to help protect consumers— dients in its cigarettes—even though cigarettes. They have carbon filters especially children—from the dangers cigarettes cause one-third of all cancer running down the center of them. They of tobacco. Simply, our bill would fi- deaths and 90 percent of lung cancer are sophisticated products that burn nally give the Food and Drug Adminis- deaths. It is unfathomable to me that tobacco differently, that affect the tration (FDA) the authority it needs to we would require the listing of ingredi- body differently, and that may cause effectively regulate the manufacture ents on these products, yet not require people to smoke them differently. and sale of tobacco products. the listing of ingredients for one of the According to the Department of I say finally, because there are some leading causes of death and disease. Health and Human Services, in an Oc- tobacco proponents who would have Right now, the FDA requires the tober article of the Journal of the Na- you believe that the Master Settlement printed ingredients for chewing gum, tional Cancer Institute, ‘‘the only Agreement, which was signed in 1998 by lipstick, bottled water, and ice cream, proven method to reduce tobacco-re- 46 States, resolved the issue of youth but not for cigarettes—a product that lated cancer risk is to stop smoking.’’ tobacco use by imposing advertising re- causes 20% of all heart disease deaths Yet, often times, people cannot quit. It strictions. and is the leading cause of preventable is very difficult to quit ingesting an ad- I say finally, because my colleagues— death in the United States. dictive product. People are addicted to first Senator MCCAIN, then Senator Think about this: If a company wants the nicotine in the tobacco product and FRIST, then Senator GREGG, and then to market a food product as ‘‘fat-free’’ are just simply unable to quit using it. Senator KENNEDY and I—have been or ‘‘reduced-fat’’ or ‘‘lite,’’ that com- So, tobacco companies have responded seeking FDA regulation of tobacco pany is required to meet certain stand- by developing and marketing tobacco products since the mid to late 1990’s. ards regarding the number of calories products that purport to be ‘‘reduced- And, I say finally, because the bill or the amount of fat grams in that risk’’ or ‘‘safer.’’ that we are introducing today is the product. Yet, cigarette companies can Take, for example, a person who product of long and hard discussions call a cigarette a ‘‘light’’ or ‘‘mild’’ and smokes Marlboro cigarettes—just plain and negotiations that I have had with not reveal a thing about the amount of Marlboro cigarettes, the ones in the Senator KENNEDY and public interest tar or nicotine or arsenic in that sup- red package. Let’s say that person groups and industry. Our bill has the posedly ‘‘light’’ cigarette. would like to quit smoking, has tried support of Campaign for Tobacco Free Not having access to all the informa- to quit smoking a number of times, but Kids. Our bill has the support of Philip tion about this deadly product just just hasn’t been successful. So instead Morris. Our bill has the support of the makes no sense, and it is something of quitting outright, that person fig- American Heart Association, the that needs to change. By introducing ures they will switch the type of ciga- American Lung Association, and the this bill, we are finally saying that we rette they smoke to a cigarette that American Cancer Association. It is a are not going to let tobacco manufac- has the implied claim of being bill that I am proud of, that is worthy turers have free reign over their mar- ‘‘safer’’—like a ‘‘light’’ cigarette or a of the Senate’s consideration, and that kets and consumers any more. ‘‘mild’’ cigarette or a ‘‘low tar’’ ciga- will provide the FDA—finally—with Today, we are taking a step toward rette. Those cigarettes have not been strong and effective authority over the making sure the public gets adequate found to be any safer? In fact, just the regulation of tobacco products. information about whether to continue opposite has been discovered. I realize full well that tobacco users to smoke or even to start smoking in In a 2001 National Cancer Institute and non-users, alike, recognize and un- the first place. With this bill, we are publication, they wrote the following: derstand that tobacco products are not just saying ‘‘buyer beware.’’ We are The tobacco companies set out to develop hazardous to their health. We all know saying ‘‘tobacco companies be honest.’’ cigarette designs that markedly lowered the tar and nicotine yield results as measured by that smoking is not a healthy habit. We are saying ‘‘tobacco companies stop the Federal Trade Commission (FTC) testing But, that’s an obvious point in com- marketing to innocent children.’’ We method. Yet, these cigarettes can be manipu- parison to the fact that right now, are saying ‘‘tobacco companies tell lated by the smoker to increase the intake of many consumers, including smokers, consumers about what they are really tar and nicotine. The use of these ‘‘decreased are surprised to learn that no Federal buying.’’ risk’’ cigarettes have not significantly de- agency has the authority to require to- The legislation that Senator KEN- creased the disease risk. In fact, the use of bacco companies to list the ingredients NEDY and I are introducing would do these cigarettes may be partly responsible that are in their products—things like just that. for the increase in lung cancer for long-term One of the most dramatic changes smokers who have switched to the low-tar/ trace amounts of arsenic, formalde- low-nicotine brands. Finally, switching to hyde, and ammonia. And, no Federal our bill makes is that tobacco products these cigarettes may provide smokers with a agency has the authority to inspect to- will now have to be approved before false sense of reduced risk, when the actual bacco manufacturers—how the ciga- they reach consumer hands. It just amount of tar and nicotine consumed may be rette and smokeless tobacco products makes sense that tobacco products the same as, or more than, the previously are made, whether the manufacturers’ should not be able to imply that they used higher yield brand. machines and equipment are clean, etc. may be safer or less harmful to con- So the products that tobacco compa- While simply listing the ingredients, sumers because they use descriptors nies develop and market as being toxic as they may be, might not seem such as ‘‘light’’ or ‘‘mild’’ or ‘‘low’’ to ‘‘safer’’ are not safer. Rather than peo- like much to some, think of it this characterize the level of a substance in ple quitting smoking entirely, they are way: Current law makes sure we know a product. The National Cancer Insti- often misled into thinking that the what’s in products designed to help tute has found that many smokers mis- ‘‘light’’ or ‘‘mild’’ cigarettes that they people quit smoking, like ‘‘the patch’’ takenly believe that ‘‘low tar’’ and switch to are better for them. In addi- or Nicorette gum, but not the very ‘‘light’’ cigarettes cause fewer health tion, people may begin to start smok- products that get people addicted in problems than other cigarettes. Our ing because they think some of these the first place—the cigarettes. That is bill would require specific approval by products aren’t so bad for them—that absolutely absurd! the FDA to use those words, so that the products have been made safer or Think about this: Right now, the consumers could be informed. better for them somehow and are okay Food and Drug Administration (FDA) For the first time ever, all new to- to smoke. requires Philip Morris/Altria to print bacco products entering the market Tobacco companies are able to make the ingredients in its Kraft ‘‘Macaroni would have to be approved by the FDA. these implied health claims about their and Cheese,’’ but not the ingredients in Obviously, we already know that smok- products because they are not regu- its cigarettes—a product that contrib- ing is a health risk. But, what we don’t lated. Consumers have no choice but to utes to the deaths of more than 440,000 know about is the harm caused by or trust the tobacco companies to reveal people a year. what adverse health effects are created the ingredients and marketing claims Right now, the FDA requires Philip by the other ingredients in tobacco about their products. That is just ab- Morris-owned Nabisco to print the in- products or by how the tobacco is surd to me. These are all things that gredients contained in ‘‘Oreo Cookies’’ burned. There are tobacco products on should be examined, reviewed, and and ‘‘Ritz Crackers,’’ but not the ingre- the market that are not conventional commented on by the Food and Drug

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5963 Administration to determine whether added by the manufacturer to the to- Mr. President, I ask unanimous con- it is appropriate for these products to bacco, paper, or filter. sent that the text of the bill be printed be marketed as ‘‘reduced-risk’’ prod- It would require a description of the in the RECORD. ucts, so the public knows what they are content, delivery, and form of nicotine There being no objection, the bill was choosing to consume. in each tobacco product. ordered to be printed in the RECORD, as Tobacco advertising is in magazines It would require information on the follows: and on billboards along the highway. health, behavioral, or physiologic ef- S. 2461 Tobacco advertising is in convenience fects of the tobacco products. Be it enacted by the Senate and House of Rep- stores, along the aisles and at the I think it is equally important that I resentatives of the United States of America in checkout counter right beside the mention what our bill does not do. Congress assembled, candy where children are likely to see Here are some of the areas where au- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. it. Tobacco advertising is at sporting thority is not conferred to FDA: Our (a) SHORT TITLE.—This Act may be cited as events, part of promotional items, bill does not allow FDA to ban tobacco the ‘‘Family Smoking Prevention and To- where consumers can ‘‘buy 1 get 1 products or to eliminate nicotine from bacco Control Act’’. a tobacco product. The bill ensures (b) TABLE OF CONTENTS.—The table of con- free.’’ Tobacco advertising is on the tents of this Act is as follows: Internet and in the daily delivery of that FDA will not have the power to Sec. 1. Short title; table of contents. mail. use its ‘‘performance standard’’ author- Sec. 2. Findings. Our bill would make changes regard- ity to ban cigarettes, smokeless to- Sec. 3. Purpose. ing tobacco advertising. It would give bacco or any other category of tobacco Sec. 4. Scope and effect. the FDA authority to restrict tobacco products, or to reduce their nicotine Sec. 5. Severability. industry marketing—consistent with yields to zero. TITLE I—AUTHORITY OF THE FOOD AND the First Amendment—that targets Our bill does not allow FDA to estab- DRUG ADMINISTRATION our children. Our bill would require ad- lish a minimum smoking age higher Sec. 101. Amendment of Federal food, drug, vertisements to be in black and white than 18. The bill explicitly forbids FDA and cosmetic act. text only and would define adult publi- from establishing a minimum age high- Sec. 102. Construction of current regula- er than 18 years of age to purchase to- tions. cation in terms of readership. Sec. 103. Conforming and other amendments An issue that is related to adver- bacco products. to general provisions. Our bill treats all tobacco retailers tising and marketing of tobacco prod- TITLE II—TOBACCO PRODUCT WARN- ucts has to do with the flavored to- equally. Our bill specifically provides INGS; CONSTITUENT AND SMOKE CON- bacco products, which clearly target that FDA can’t prohibit the sale of to- STITUENT DISCLOSURE our children. We have probably all seen bacco products in any particular cat- Sec. 201. Cigarette label and advertising the flavored cigarettes—flavors like egory of retail outlet. Our bill forbids warnings. strawberry, chocolate, and wild rum. FDA from creating a more permissive Sec. 202. Authority to revise cigarette warn- The scent of strawberry filters through set of advertising rules for adult-only ing label Statements. the unopened pack of cigarettes. And establishments. This provision protects Sec. 203. State regulation of cigarette adver- guess what, the cigarettes smell like retailers and convenience store owners. tising and promotion. Finally, I would like to make a com- Sec. 204. Smokeless tobacco labels and ad- candy. A recent New York Times arti- vertising warnings. cle described the scent of chocolate fla- ment about the tobacco farmers. There Sec. 205. Authority to revise smokeless to- vored cigarettes as if ‘‘someone had has been a lot of talk recently about bacco product warning label lifted the lid on a Whitman Sampler.’’ the need for a buyout for our Nation’s Statements. I can’t speak for every parent, but I tobacco farmers. My colleagues, Sen- Sec. 206. Tar, nicotine, and other smoke con- know my 8 grandchildren like candy, ator MCCONNELL and Senator DOLE, stituent disclosure to the pub- and they like the smell of chocolate, have been working tirelessly to craft a lic. and they would be curious to try some- buyout bill for tobacco farmers. They TITLE III—PREVENTION OF ILLICIT thing that smells or tastes like candy. need a buyout—and the Congress TRADE IN TOBACCO PRODUCTS Cigarettes shouldn’t be flavored and should give them one. The Senate Sec. 301. Labeling, record keeping, records marketed in such a way to attract chil- needs to pass the buyout, but the inspection. Sec. 302. Study and report. dren and to encourage children to buyout needs to be passed along with this FDA bill. I look forward to work- SEC. 2. FINDINGS. smoke. Our bill bans the use of flavors The Congress finds the following: such as strawberry, grape, orange, ing with my colleagues from the to- (1) The use of tobacco products by the Na- clove, cinnamon, pineapple, vanilla, co- bacco-growing states to make this hap- tion’s children is a pediatric disease of con- conut, coffee and other flavorings that pen. siderable proportions that results in new would attract children to the product. The bill that Senator KENNEDY and I generations of tobacco-dependent children Despite the fact that 40 million introduce today gives the FDA the au- and adults. Americans use tobacco products, many thority to regulate a product that has (2) A consensus exists within the scientific of them do not know what is inside the gone unregulated for far too long—a and medical communities that tobacco prod- cigarette or the tobacco product they product that for the past century has ucts are inherently dangerous and cause cannot revealed its ingredients to the con- cer, heart disease, and other serious adverse ingest. They do not know the ingredi- health effects. ents or the constituents, like tar or sumer—a product whose manufacturing (3) Nicotine is an addictive drug. nicotine, that are in the products they facilities are not inspected or account- (4) Virtually all new users of tobacco prod- use. Consumers do not know what addi- able for following good manufacturing ucts are under the minimum legal age to tives are included in the product. Addi- practices—a product that is never repurchase such products. tives like ammonia or urea, both of viewed or approved before reaching the (5) Tobacco advertising and marketing which may make the tobacco product hands of 40 million consumers, many of contribute significantly to the use of nico- more addictive because they increase whom are just children. Congress needs tine-containing tobacco products by adoles- to put an end to this. Congress should cents. the delivery of nicotine. Tobacco com- (6) Because past efforts to restrict adver- panies do not disclose the specific input an end to the marketing of tobacco tising and marketing of tobacco products gredients in their products because products to our children. Congress have failed adequately to curb tobacco use they don’t have to. Tobacco products should put an end to the ability of to- by adolescents, comprehensive restrictions are unregulated. bacco companies to make claims, on the sale, promotion, and distribution of Our legislation would give consumers whether they are implied claims or di- such products are needed. more information about what’s in to- rect claims, about their products. Con- (7) Federal and State governments have bacco products. Specifically, the bill gress should put an end to tobacco lacked the legal and regulatory authority companies putting any ingredient they and resources they need to address com- would provide the FDA with the ability prehensively the public health and societal to publish the ingredients of tobacco want into their products without dis- problems caused by the use of tobacco prod- products. closing it to the consumer. It is time ucts. It would require a listing of all ingre- Congress give the FDA authority to it (8) Federal and State public health offi- dients, substances, and compounds needs to fix these problems. cials, the public health community, and the

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5964 CONGRESSIONAL RECORD — SENATE May 20, 2004 public at large recognize that the tobacco in- (23) Children are more influenced by to- interventions to achieve long-term or perma- dustry should be subject to ongoing over- bacco advertising than adults, they smoke nent abstinence. sight. the most advertised brands. (34) Because the only known safe alter- (9) Under Article I, Section 8 of the Con- (24) Tobacco company documents indicate native to smoking is cessation, interventions stitution, the Congress is vested with the re- that young people are an important and should target all smokers to help them quit sponsibility for regulating interstate com- often crucial segment of the tobacco market. completely. merce and commerce with Indian tribes. Children, who tend to be more price-sen- (35) Tobacco products have been used to fa- (10) The sale, distribution, marketing, ad- sitive than adults, are influenced by adver- cilitate and finance criminal activities both vertising, and use of tobacco products are ac- tising and promotion practices that result in domestically and internationally. Illicit tivities in and substantially affecting inter- drastically reduced cigarette prices. trade of tobacco products has been linked to state commerce because they are sold, mar- (25) Comprehensive advertising restrictions organized crime and terrorist groups. keted, advertised, and distributed in inter- will have a positive effect on the smoking (36) It is essential that the Food and Drug rates of young people. Administration review products sold or dis- state commerce on a nationwide basis, and (26) Restrictions on advertising are nec- tributed for use to reduce risks or exposures have a substantial effect on the Nation’s essary to prevent unrestricted tobacco ad- associated with tobacco products and that it economy. vertising from undermining legislation pro- be empowered to review any advertising and (11) The sale, distribution, marketing, ad- hibiting access to young people and pro- labeling for such products. It is also essen- vertising, and use of such products substan- viding for education about tobacco use. tial that manufacturers, prior to marketing tially affect interstate commerce through (27) International experience shows that such products, be required to demonstrate the health care and other costs attributable advertising regulations that are stringent that such products will meet a series of rig- to the use of tobacco products. and comprehensive have a greater impact on orous criteria, and will benefit the health of (12) It is in the public interest for Congress overall tobacco use and young people’s use the population as a whole, taking into ac- to enact legislation that provides the Food than weaker or less comprehensive ones. count both users of tobacco products and and Drug Administration with the authority (28) Text only requirements, although not persons who do not currently use tobacco to regulate tobacco products and the adver- as stringent as a ban, will help reduce under- products. tising and promotion of such products. The age use of tobacco products while preserving (37) Unless tobacco products that purport benefits to the American people from enact- the informational function of advertising. to reduce the risks to the public of tobacco ing such legislation would be significant in (29) It is in the public interest for Congress use actually reduce such risks, those prod- human and economic terms. to adopt legislation to address the public ucts can cause substantial harm to the pub- (13) Tobacco use is the foremost prevent- health crisis created by actions of the to- lic health to the extent that the individuals, able cause of premature death in America. It bacco industry. who would otherwise not consume tobacco causes over 400,000 deaths in the United (30) The final regulations promulgated by products or would consume such products States each year and approximately 8,600,000 the Secretary of Health and Human Services less, use tobacco products purporting to re- Americans have chronic illnesses related to in the August 28, 1996, issue of the Federal duce risk. Those who use products sold or smoking. Register (61 Fed. Reg. 44615–44618) for inclu- distributed as modified risk products that do (14) Reducing the use of tobacco by minors sion as part 897 of title 21, Code of Federal not in fact reduce risk, rather than quitting by 50 percent would prevent well over Regulations, are consistent with the First or reducing their use of tobacco products, 6,500,000 of today’s children from becoming Amendment to the United States Constitu- have a substantially increased likelihood of regular, daily smokers, saving over 2,000,000 tion and with the standards set forth in the suffering disability and premature death. of them from premature death due to to- amendments made by this Act for the regu- The costs to society of the widespread use of bacco induced disease. Such a reduction in lation of tobacco products by the Food and products sold or distributed as modified risk youth smoking would also result in approxi- Drug Administration and the restriction on products that do not in fact reduce risk or mately $75,000,000,000 in savings attributable the sale and distribution, including access to that increase risk include thousands of un- to reduced health care costs. and the advertising and promotion of, to- necessary deaths and injuries and huge costs (15) Advertising, marketing, and promotion bacco products contained in such regulations to our health care system. of tobacco products have been especially di- are substantially related to accomplishing (38) As the National Cancer Institute has rected to attract young persons to use to- the public health goals of this Act. found, many smokers mistakenly believe bacco products and these efforts have re- (31) The regulations described in paragraph that ‘‘low tar’’ and ‘‘light’’ cigarettes cause sulted in increased use of such products by (30) will directly and materially advance the fewer health problems than other cigarettes. youth. Past efforts to oversee these activi- Federal Government’s substantial interest in As the National Cancer Institute has also ties have not been successful in adequately reducing the number of children and adoles- found, mistaken beliefs about the health cents who use cigarettes and smokeless to- consequences of smoking ‘‘low tar’’ and preventing such increased use. bacco and in preventing the life-threatening ‘‘light’’ cigarettes can reduce the motivation (16) In 2001, the tobacco industry spent health consequences associated with tobacco to quit smoking entirely and thereby lead to more than $11,000,000,000 to attract new use. An overwhelming majority of Americans disease and death. users, retain current users, increase current who use tobacco products begin using such (39) Recent studies have demonstrated that consumption, and generate favorable long- products while they are minors and become there has been no reduction in risk on a pop- term attitudes toward smoking and tobacco addicted to the nicotine in those products ulation-wide basis from ‘‘low tar’’ and use. before reaching the age of 18. Tobacco adver- ‘‘light’’ cigarettes and such products may ac- (17) Tobacco product advertising often tising and promotion plays a crucial role in tually increase the risk of tobacco use. misleadingly portrays the use of tobacco as the decision of these minors to begin using (40) The dangers of products sold or distrib- socially acceptable and healthful to minors. tobacco products. Less restrictive and less uted as modified risk tobacco products that (18) Tobacco product advertising is regu- comprehensive approaches have not and will do not in fact reduce risk are so high that larly seen by persons under the age of 18, and not be effective in reducing the problems ad- there is a compelling governmental interest persons under the age of 18 are regularly ex- dressed by such regulations. The reasonable in insuring that statements about modified posed to tobacco product promotional ef- restrictions on the advertising and pro- risk tobacco products are complete, accu- forts. motion of tobacco products contained in rate, and relate to the overall disease risk of (19) Through advertisements during and such regulations will lead to a significant de- the product. sponsorship of sporting events, tobacco has crease in the number of minors using and be- (41) As the Federal Trade Commission has become strongly associated with sports and coming addicted to those products. found, consumers have misinterpreted adver- has become portrayed as an integral part of (32) The regulations described in paragraph tisements in which one product is claimed to sports and the healthy lifestyle associated (30) impose no more extensive restrictions on be less harmful than a comparable product, with rigorous sporting activity. communication by tobacco manufacturers even in the presence of disclosures and (20) Children are exposed to substantial and sellers than are necessary to reduce the advisories intended to provide clarification. and unavoidable tobacco advertising that number of children and adolescents who use (42) Permitting manufacturers to make un- leads to favorable beliefs about tobacco use, cigarettes and smokeless tobacco and to pre- substantiated statements concerning modi- plays a role in leading young people to over- vent the life-threatening health con- fied risk tobacco products, whether express estimate the prevalence of tobacco use, and sequences associated with tobacco use. Such or implied, even if accompanied by dis- increases the number of young people who regulations are narrowly tailored to restrict claimers would be detrimental to the public begin to use tobacco. those advertising and promotional practices health. (21) The use of tobacco products in motion which are most likely to be seen or heard by (43) The only way to effectively protect the pictures and other mass media glamorizes its youth and most likely to entice them into public health from the dangers of unsubstan- use for young people and encourages them to tobacco use, while affording tobacco manu- tiated modified risk tobacco products is to use tobacco products. facturers and sellers ample opportunity to empower the Food and Drug Administration (22) Tobacco advertising expands the size of convey information about their products to to require that products that tobacco manu- the tobacco market by increasing consump- adult consumers. facturers sold or distributed for risk reduction of tobacco products including tobacco (33) Tobacco dependence is a chronic dis- tion be approved in advance of marketing, use by young people. ease, one that typically requires repeated and to require that the evidence relied on to

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5965 support approval of these products is rig- ‘‘(nn)(1) The term ‘tobacco product’ means any likeness thereof, of a tobacco product orous. any product made or derived from tobacco listed in a registration under section SEC. 3. PURPOSE. that is intended for human consumption, in- 905(i)(1). The purposes of this Act are— cluding any component, part, or accessory of ‘‘(7) DISTRIBUTOR.—The term ‘distributor’ (1) to provide authority to the Food and a tobacco product (except for raw materials as regards a tobacco product means any per- Drug Administration to regulate tobacco other than tobacco used in manufacturing a son who furthers the distribution of a to- products under the Federal Food, Drug, and component, part, or accessory of a tobacco bacco product, whether domestic or im- Cosmetic Act (21 U.S.C. 301 et seq.), by recog- product). ported, at any point from the original place nizing it as the primary Federal regulatory ‘‘(2) The term ‘tobacco product’ does not of manufacture to the person who sells or authority with respect to the manufacture, mean— distributes the product to individuals for marketing, and distribution of tobacco prod- ‘‘(A) a product in the form of conventional personal consumption. Common carriers are ucts; food (including water and chewing gum), a not considered distributors for purposes of (2) to ensure that the Food and Drug Ad- product represented for use as or for use in a this chapter. conventional food, or a product that is in- ministration has the authority to address ‘‘(8) ILLICIT TRADE.—The term ‘illicit trade’ issues of particular concern to public health tended for ingestion in capsule, tablet, means any practice or conduct prohibited by officials, especially the use of tobacco by softgel, or liquid form; or law which relates to production, shipment, ‘‘(B) an article that is approved or is regu- young people and dependence on tobacco; receipt, possession, distribution, sale, or pur- lated as a drug by the Food and Drug Admin- (3) to authorize the Food and Drug Admin- chase of tobacco products including any istration. istration to set national standards control- practice or conduct intended to facilitate ‘‘(3) The products described in paragraph ling the manufacture of tobacco products such activity. and the identity, public disclosure, and (2)(A) shall be subject to chapter IV or chap- ‘‘(9) INDIAN TRIBE.—The term ‘Indian tribe’ ter V of this Act and the articles described in amount of ingredients used in such products; has the meaning given such term in section (4) to provide new and flexible enforcement paragraph (2)(B) shall be subject to chapter V of this Act. 4(e) of the Indian Self Determination and authority to ensure that there is effective Education Assistance Act (25 U.S.C. 450b(e)). oversight of the tobacco industry’s efforts to ‘‘(4) A tobacco product may not be mar- ‘‘(10) LITTLE CIGAR.—The term ‘little cigar’ develop, introduce, and promote less harmful keted in combination with any other article has the meaning given that term by section tobacco products; or product regulated under this Act (includ- 3(7) of the Federal Cigarette Labeling and (5) to vest the Food and Drug Administra- ing a drug, biologic, food, cosmetics, medical Advertising Act (15 U.S.C. 1332(7)). tion with the authority to regulate the lev- device, or a dietary supplement).’’. ‘‘(11) NICOTINE.—The term ‘nicotine’ means els of tar, nicotine, and other harmful com- (b) FDA AUTHORITY OVER TOBACCO PROD- the chemical substance named 3-(1-Methyl-2- ponents of tobacco products; UCTS.—The Federal Food, Drug, and Cos- pyrrolidinyl) pyridine or C[10]H[14]N[2], in- (6) in order to ensure that consumers are metic Act (21 U.S.C. 301 et seq.) is amended— cluding any salt or complex of nicotine. better informed, to require tobacco product (1) by redesignating chapter IX as chapter ‘‘(12) PACKAGE.—The term ‘package’ means manufacturers to disclose research which X; a pack, box, carton, or container of any kind has not previously been made available, as (2) by redesignating sections 901 through or, if no other container, any wrapping (in- well as research generated in the future, re- 907 as sections 1001 through 1007; and lating to the health and dependency effects (3) by inserting after section 803 the fol- cluding cellophane), in which a tobacco prod- or safety of tobacco products; lowing: uct is offered for sale, sold, or otherwise dis- (7) to continue to permit the sale of to- ‘‘CHAPTER IX—TOBACCO PRODUCTS tributed to consumers. ‘‘(13) RETAILER.—The term ‘retailer’ means bacco products to adults in conjunction with ‘‘SEC. 900. DEFINITIONS. measures to ensure that they are not sold or any person who sells tobacco products to in- ‘‘In this chapter: dividuals for personal consumption, or who accessible to underage purchasers; ‘‘(1) ADDITIVE.—The term ‘additive’ means operates a facility where self-service dis- (8) to impose appropriate regulatory con- any substance the intended use of which re- plays of tobacco products are permitted. trols on the tobacco industry; sults or may reasonably be expected to re- ‘‘(14) ROLL-YOUR-OWN TOBACCO.—The term (9) to promote cessation to reduce disease sult, directly or indirectly, in its becoming a ‘roll-your-own tobacco’ means any tobacco risk and the social costs associated with to- component or otherwise affecting the char- which, because of its appearance, type, pack- bacco related diseases; and acteristic of any tobacco product (including aging, or labeling, is suitable for use and (10) to strengthen legislation against illicit any substances intended for use as a fla- likely to be offered to, or purchased by, con- trade in tobacco products. voring, coloring or in producing, manufac- sumers as tobacco for making cigarettes. SEC. 4. SCOPE AND EFFECT. turing, packing, processing, preparing, treat- ‘‘(15) SMOKE CONSTITUENT.—The term (a) INTENDED EFFECT.—Nothing in this Act ing, packaging, transporting, or holding), ex- ‘smoke constituent’ means any chemical or (or an amendment made by this Act) shall be cept that such term does not include tobacco construed to— or a pesticide chemical residue in or on raw chemical compound in mainstream or (1) establish a precedent with regard to any tobacco or a pesticide chemical. sidestream tobacco smoke that either transfers from any component of the cigarette to other industry, situation, circumstance, or ‘‘(2) BRAND.—The term ‘brand’ means a va- legal action; or riety of tobacco product distinguished by the the smoke or that is formed by the combus- (2) affect any action pending in Federal, tobacco used, tar content, nicotine content, tion or heating of tobacco, additives, or State, or Tribal court, or any agreement, flavoring used, size, filtration, or packaging, other component of the tobacco product. consent decree, or contract of any kind. logo, registered trademark or brand name, ‘‘(16) SMOKELESS TOBACCO.—The term (b) AGRICULTURAL ACTIVITIES.—The provi- identifiable pattern of colors, or any com- ‘smokeless tobacco’ means any tobacco prod- sions of this Act (or an amendment made by bination of such attributes. uct that consists of cut, ground, powdered, or this Act) which authorize the Secretary to ‘‘(3) CIGARETTE.—The term ‘cigarette’ has leaf tobacco and that is intended to be placed take certain actions with regard to tobacco the meaning given that term by section 3(1) in the oral or nasal cavity. and tobacco products shall not be construed of the Federal Cigarette Labeling and Adver- ‘‘(17) STATE.—The term ‘State’ means any to affect any authority of the Secretary of tising Act (15 U.S.C. 1332(1)), but also in- State of the United States and, for purposes Agriculture under existing law regarding the cludes tobacco, in any form, that is func- of this chapter, includes the District of Co- growing, cultivation, or curing of raw to- tional in the product, which, because of its lumbia, the Commonwealth of Puerto Rico, bacco. appearance, the type of tobacco used in the Guam, the Virgin Islands, American Samoa, SEC. 5. SEVERABILITY. filler, or its packaging and labeling, is likely Wake Island, Midway Islands, Kingman Reef, If any provision of this Act, the amend- to be offered to, or purchased by, consumers Johnston Atoll, the Northern Mariana Is- ments made by this Act, or the application as a cigarette or as roll-your-own tobacco. lands, and any other trust territory or pos- of any provision of this Act to any person or ‘‘(4) CIGARETTE TOBACCO.—The term ‘ciga- session of the United States. circumstance is held to be invalid, the re- rette tobacco’ means any product that con- ‘‘(18) TOBACCO PRODUCT MANUFACTURER.— mainder of this Act, the amendments made sists of loose tobacco that is intended for use Term ‘tobacco product manufacturer’ means by this Act, and the application of the provi- by consumers in a cigarette. Unless other- any person, including any repacker or re- sions of this Act to any other person or cir- wise stated, the requirements for cigarettes labeler, who— cumstance shall not be affected and shall shall also apply to cigarette tobacco. ‘‘(A) manufactures, fabricates, assembles, continue to be enforced to the fullest extent ‘‘(5) COMMERCE.—The term ‘commerce’ has processes, or labels a tobacco product; or possible. the meaning given that term by section 3(2) ‘‘(B) imports a finished cigarette or smoke- TITLE I—AUTHORITY OF THE FOOD AND of the Federal Cigarette Labeling and Adver- less tobacco product for sale or distribution DRUG ADMINISTRATION tising Act (15 U.S.C. 1332(2)). in the United States. SEC. 101. AMENDMENT OF FEDERAL FOOD, DRUG, ‘‘(6) COUNTERFEIT TOBACCO PRODUCT.—The ‘‘(19) UNITED STATES.—The term ‘United AND COSMETIC ACT. term ‘counterfeit tobacco product’ means a States’ means the 50 States of the United (a) DEFINITION OF TOBACCO PRODUCTS.—Sec- tobacco product (or the container or labeling States of America and the District of Colum- tion 201 of the Federal Food, Drug, and Cos- of such a product) that, without authoriza- bia, the Commonwealth of Puerto Rico, metic Act (21 U.S.C. 321) is amended by add- tion, bears the trademark, trade name, or Guam, the Virgin Islands, American Samoa, ing at the end the following: other identifying mark, imprint or device, or Wake Island, Midway Islands, Kingman Reef,

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5966 CONGRESSIONAL RECORD — SENATE May 20, 2004 Johnston Atoll, the Northern Mariana Is- ‘‘(6) the methods used in, or the facilities retary after notice and opportunity for com- lands, and any other trust territory or pos- or controls used for, its manufacture, pack- ment that such action is appropriate to pro- session of the United States. ing or storage are not in conformity with ap- tect the public health, a full description of ‘‘SEC. 901. FDA AUTHORITY OVER TOBACCO plicable requirements under section 906(e)(1) the components of such tobacco product or PRODUCTS. or an applicable condition prescribed by an the formula showing quantitatively each in- ‘‘(a) IN GENERAL.—Tobacco products shall order under section 906(e)(2); or gredient of such tobacco product to the ex- be regulated by the Secretary under this ‘‘(7) it is in violation of section 911. tent required in regulations which shall be chapter and shall not be subject to the provi- ‘‘SEC. 903. MISBRANDED TOBACCO PRODUCTS. issued by the Secretary after an opportunity sions of chapter V, unless— ‘‘(a) IN GENERAL.—A tobacco product shall for a hearing; ‘‘(1) such products are intended for use in be deemed to be misbranded— ‘‘(9) if it is a tobacco product subject to a the diagnosis, cure, mitigation, treatment, ‘‘(1) if its labeling is false or misleading in tobacco product standard established under or prevention of disease (within the meaning any particular; section 907, unless it bears such labeling as of section 201(g)(1)(B) or section 201(h)(2)); or ‘‘(2) if in package form unless it bears a may be prescribed in such tobacco product ‘‘(2) a claim is made for such products label containing— standard; or under section 201(g)(1)(C) or 201(h)(3); ‘‘(A) the name and place of business of the ‘‘(10) if there was a failure or refusal— other than modified risk tobacco products tobacco product manufacturer, packer, or ‘‘(A) to comply with any requirement pre- approved in accordance with section 911. distributor; scribed under section 904 or 908; or ‘‘(b) APPLICABILITY.—This chapter shall ‘‘(B) an accurate statement of the quantity ‘‘(B) to furnish any material or informa- apply to all tobacco products subject to the of the contents in terms of weight, measure, tion required under section 909. regulations referred to in section 102 of the or numerical count; ‘‘(b) PRIOR APPROVAL OF LABEL STATE- Family Smoking Prevention and Tobacco ‘‘(C) an accurate statement of the percent- MENTS.—The Secretary may, by regulation, Control Act, and to any other tobacco prod- age of the tobacco used in the product that require prior approval of statements made on ucts that the Secretary by regulation deems is domestically grown tobacco and the per- the label of a tobacco product. No regulation issued under this subsection may require to be subject to this chapter. centage that is foreign grown tobacco; and prior approval by the Secretary of the con- ‘‘(c) SCOPE.— ‘‘(D) the statement required under section tent of any advertisement, except for modi- ‘‘(1) IN GENERAL.—Nothing in this chapter, 921(a), fied risk tobacco products as provided in sec- or any policy issued or regulation promul- except that under subparagraph (B) reason- tion 911. No advertisement of a tobacco prod- gated thereunder, or the Family Smoking able variations shall be permitted, and ex- Prevention and Tobacco Control Act, shall uct published after the date of enactment of emptions as to small packages shall be es- the Family Smoking Prevention and To- be construed to affect the Secretary’s au- tablished, by regulations prescribed by the thority over, or the regulation of, products bacco Control Act shall, with respect to the Secretary; language of label statements as prescribed under this Act that are not tobacco products ‘‘(3) if any word, statement, or other infor- under chapter V or any other chapter. under section 4 of the Cigarette Labeling and mation required by or under authority of Advertising Act and section 3 of the Com- ‘‘(2) LIMITATION OF AUTHORITY.— this chapter to appear on the label or label- prehensive Smokeless Tobacco Health Edu- ‘‘(A) IN GENERAL.—The provisions of this ing is not prominently placed thereon with chapter shall not apply to tobacco leaf that cation Act of 1986 or the regulations issued such conspicuousness (as compared with under such sections, be subject to the provi- is not in the possession of a manufacturer of other words, statements or designs in the la- sions of sections 12 through 15 of the Federal tobacco products, or to the producers of to- beling) and in such terms as to render it Trade Commission Act (15 U.S.C. 52 through bacco leaf, including tobacco growers, to- likely to be read and understood by the ordi- 55). bacco warehouses, and tobacco grower co- nary individual under customary conditions operatives, nor shall any employee of the ‘‘SEC. 904. SUBMISSION OF HEALTH INFORMA- of purchase and use; TION TO THE SECRETARY. Food and Drug Administration have any au- ‘‘(4) if it has an established name, unless ‘‘(a) REQUIREMENT.—Not later than 6 thority to enter onto a farm owned by a pro- its label bears, to the exclusion of any other months after the date of enactment of the ducer of tobacco leaf without the written nonproprietary name, its established name Family Smoking Prevention and Tobacco consent of such producer. prominently printed in type as required by Control Act, each tobacco product manufac- ‘‘(B) EXCEPTION.—Notwithstanding any the Secretary by regulation; turer or importer, or agents thereof, shall other provision of this subparagraph, if a ‘‘(5) if the Secretary has issued regulations submit to the Secretary the following infor- producer of tobacco leaf is also a tobacco requiring that its labeling bear adequate di- mation: product manufacturer or controlled by a to- rections for use, or adequate warnings ‘‘(1) A listing of all ingredients, including bacco product manufacturer, the producer against use by children, that are necessary tobacco, substances, compounds, and addi- shall be subject to this chapter in the pro- for the protection of users unless its labeling tives that are, as of such date, added by the ducer’s capacity as a manufacturer. conforms in all respects to such regulations; manufacturer to the tobacco, paper, filter, or ‘‘(C) RULE OF CONSTRUCTION.—Nothing in ‘‘(6) if it was manufactured, prepared, prop- other part of each tobacco product by brand this chapter shall be construed to grant the agated, compounded, or processed in any and by quantity in each brand and subbrand. Secretary authority to promulgate regula- State in an establishment not duly reg- ‘‘(2) A description of the content, delivery, tions on any matter that involves the pro- istered under section 905(b), 905(c), 905(d), or and form of nicotine in each tobacco product duction of tobacco leaf or a producer thereof, 905(h), if it was not included in a list re- measured in milligrams of nicotine in ac- other than activities by a manufacturer af- quired by section 905(i), if a notice or other cordance with regulations promulgated by fecting production. information respecting it was not provided the Secretary in accordance with section ‘‘SEC. 902. ADULTERATED TOBACCO PRODUCTS. as required by such section or section 905(j), 4(a)(4) of the Federal Cigarette Labeling and ‘‘A tobacco product shall be deemed to be or if it does not bear such symbols from the Advertising Act. adulterated if— uniform system for identification of tobacco ‘‘(3) A listing of all constituents, including ‘‘(1) it consists in whole or in part of any products prescribed under section 905(e) as smoke constituents as applicable, identified filthy, putrid, or decomposed substance, or is the Secretary by regulation requires; by the Secretary as harmful or potentially otherwise contaminated by any added poi- ‘‘(7) if, in the case of any tobacco product harmful to health in each tobacco product, sonous or added deleterious substance that distributed or offered for sale in any State— and as applicable in the smoke of each to- may render the product injurious to health; ‘‘(A) its advertising is false or misleading bacco product, by brand and by quantity in ‘‘(2) it has been prepared, packed, or held in any particular; or each brand and subbrand. Effective begin- under insanitary conditions whereby it may ‘‘(B) it is sold or distributed in violation of ning 2 years after the date of enactment of have been contaminated with filth, or where- regulations prescribed under section 906(d); this chapter, the manufacturer, importer, or by it may have been rendered injurious to ‘‘(8) unless, in the case of any tobacco agent shall comply with regulations promul- health; product distributed or offered for sale in any gated under section 915 in reporting informa- ‘‘(3) its package is composed, in whole or in State, the manufacturer, packer, or dis- tion under this paragraph, where applicable. part, of any poisonous or deleterious sub- tributor thereof includes in all advertise- ‘‘(4) All documents developed after the stance which may render the contents inju- ments and other descriptive printed matter date of enactment of the Family Smoking rious to health; issued or caused to be issued by the manufac- Prevention and Tobacco Control Act that re- ‘‘(4) it is, or purports to be or is rep- turer, packer, or distributor with respect to late to health, toxicological, behavioral, or resented as, a tobacco product which is sub- that tobacco product— physiologic effects of current or future to- ject to a tobacco product standard estab- ‘‘(A) a true statement of the tobacco prod- bacco products, their constituents (including lished under section 907 unless such tobacco uct’s established name as described in para- smoke constituents), ingredients, compo- product is in all respects in conformity with graph (4), printed prominently; and nents, and additives. such standard; ‘‘(B) a brief statement of— ‘‘(b) DATA SUBMISSION.—At the request of ‘‘(5)(A) it is required by section 910(a) to ‘‘(i) the uses of the tobacco product and the Secretary, each tobacco product manu- have premarket approval and does not have relevant warnings, precautions, side effects, facturer or importer of tobacco products, or an approved application in effect; and contraindications; and agents thereof, shall submit the following: ‘‘(B) it is in violation of the order approv- ‘‘(ii) in the case of specific tobacco prod- ‘‘(1) Any or all documents (including un- ing such an application; or ucts made subject to a finding by the Sec- derlying scientific information) relating to

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5967 research activities, and research findings, constituents in tobacco products and tobacco country or otherwise, to enable the Sec- conducted, supported, or possessed by the smoke. retary to determine from time to time manufacturer (or agents thereof) on the ‘‘SEC. 905. ANNUAL REGISTRATION. whether tobacco products manufactured, health, toxicological, behavioral, or physio- ‘‘(a) DEFINITIONS.—In this section: prepared, compounded, or processed in such logic effects of tobacco products and their ‘‘(1) MANUFACTURE, PREPARATION, establishment, if imported or offered for im- constituents (including smoke constituents), COMPOUNDING, OR PROCESSING.—The term port into the United States, shall be refused ingredients, components, and additives. ‘manufacture, preparation, compounding, or admission on any of the grounds set forth in ‘‘(2) Any or all documents (including un- processing’ shall include repackaging or oth- section 801(a). derlying scientific information) relating to erwise changing the container, wrapper, or ‘‘(i) REGISTRATION INFORMATION.— research activities, and research findings, labeling of any tobacco product package in ‘‘(1) PRODUCT LIST.—Every person who reg- conducted, supported, or possessed by the furtherance of the distribution of the to- isters with the Secretary under subsection manufacturer (or agents thereof) that relate bacco product from the original place of (b), (c), (d), or (h) shall, at the time of reg- to the issue of whether a reduction in risk to manufacture to the person who makes final istration under any such subsection, file health from tobacco products can occur upon delivery or sale to the ultimate consumer or with the Secretary a list of all tobacco prod- the employment of technology available or user. ucts which are being manufactured, pre- known to the manufacturer. ‘‘(2) NAME.—The term ‘name’ shall include pared, compounded, or processed by that per- ‘‘(3) Any or all documents (including un- in the case of a partnership the name of each son for commercial distribution and which derlying scientific or financial information) partner and, in the case of a corporation, the has not been included in any list of tobacco relating to marketing research involving the name of each corporate officer and director, products filed by that person with the Sec- use of tobacco products or marketing prac- and the State of incorporation. retary under this paragraph or paragraph (2) tices and the effectiveness of such practices ‘‘(b) REGISTRATION BY OWNERS AND OPERA- before such time of registration. Such list used by tobacco manufacturers and distribu- TORS.—On or before December 31 of each year shall be prepared in such form and manner as tors. every person who owns or operates any es- the Secretary may prescribe and shall be ac- An importer of a tobacco product not manu- tablishment in any State engaged in the companied by— factured in the United States shall supply manufacture, preparation, compounding, or ‘‘(A) in the case of a tobacco product con- the information required of a tobacco prod- processing of a tobacco product or tobacco tained in the applicable list with respect to uct manufacturer under this subsection. products shall register with the Secretary which a tobacco product standard has been ‘‘(c) TIME FOR SUBMISSION.— the name, places of business, and all such es- established under section 907 or which is sub- ‘‘(1) IN GENERAL.—At least 90 days prior to tablishments of that person. ject to section 910, a reference to the author- the delivery for introduction into interstate ‘‘(c) REGISTRATION OF NEW OWNERS AND OP- ity for the marketing of such tobacco prod- commerce of a tobacco product not on the ERATORS.—Every person upon first engaging uct and a copy of all labeling for such to- market on the date of enactment of the in the manufacture, preparation, bacco product; Family Smoking Prevention and Tobacco compounding, or processing of a tobacco ‘‘(B) in the case of any other tobacco prod- Control Act, the manufacturer of such prod- product or tobacco products in any establish- uct contained in an applicable list, a copy of uct shall provide the information required ment owned or operated in any State by that all consumer information and other labeling under subsection (a). person shall immediately register with the for such tobacco product, a representative ‘‘(2) DISCLOSURE OF ADDITIVE.—If at any Secretary that person’s name, place of busi- sampling of advertisements for such tobacco time a tobacco product manufacturer adds to ness, and such establishment. product, and, upon request made by the Sec- its tobacco products a new tobacco additive ‘‘(d) REGISTRATION OF ADDED ESTABLISH- retary for good cause, a copy of all advertise- or increases the quantity of an existing to- MENTS.—Every person required to register ments for a particular tobacco product; and bacco additive, the manufacturer shall, ex- under subsection (b) or (c) shall immediately ‘‘(C) if the registrant filing a list has deter- cept as provided in paragraph (3), at least 90 register with the Secretary any additional mined that a tobacco product contained in days prior to such action so advise the Sec- establishment which that person owns or op- such list is not subject to a tobacco product retary in writing. erates in any State and in which that person standard established under section 907, a ‘‘(3) DISCLOSURE OF OTHER ACTIONS.—If at begins the manufacture, preparation, brief statement of the basis upon which the any time a tobacco product manufacturer compounding, or processing of a tobacco registrant made such determination if the eliminates or decreases an existing additive, product or tobacco products. Secretary requests such a statement with re- or adds or increases an additive that has by ‘‘(e) UNIFORM PRODUCT IDENTIFICATION SYS- spect to that particular tobacco product. regulation been designated by the Secretary TEM.—The Secretary may by regulation pre- ‘‘(2) BIANNUAL REPORT OF ANY CHANGE IN as an additive that is not a human or animal scribe a uniform system for the identifica- PRODUCT LIST.—Each person who registers carcinogen, or otherwise harmful to health tion of tobacco products and may require with the Secretary under this section shall under intended conditions of use, the manu- that persons who are required to list such to- report to the Secretary once during the facturer shall within 60 days of such action bacco products under subsection (i) shall list month of June of each year and once during so advise the Secretary in writing. such tobacco products in accordance with the month of December of each year the fol- ‘‘(d) DATA LIST.— such system. lowing: ‘‘(1) IN GENERAL.—Not later than 3 years after the date of enactment of the Family ‘‘(f) PUBLIC ACCESS TO REGISTRATION INFOR- ‘‘(A) A list of each tobacco product intro- Smoking Prevention and Tobacco Control MATION.—The Secretary shall make available duced by the registrant for commercial dis- Act, and annually thereafter, the Secretary for inspection, to any person so requesting, tribution which has not been included in any shall publish in a format that is understand- any registration filed under this section. list previously filed by that person with the able and not misleading to a lay person, and ‘‘(g) BIENNIAL INSPECTION OF REGISTERED Secretary under this subparagraph or para- place on public display (in a manner deter- ESTABLISHMENTS.—Every establishment in graph (1). A list under this subparagraph mined by the Secretary) the list established any State registered with the Secretary shall list a tobacco product by its estab- under subsection (e). under this section shall be subject to inspec- lished name and shall be accompanied by the tion under section 704, and every such estab- other information required by paragraph (1). ‘‘(2) CONSUMER RESEARCH.—The Secretary shall conduct periodic consumer research to lishment engaged in the manufacture, ‘‘(B) If since the date the registrant last ensure that the list published under para- compounding, or processing of a tobacco made a report under this paragraph that per- graph (1) is not misleading to lay persons. product or tobacco products shall be so in- son has discontinued the manufacture, prep- Not later than 5 years after the date of en- spected by 1 or more officers or employees aration, compounding, or processing for com- actment of the Family Smoking Prevention duly designated by the Secretary at least mercial distribution of a tobacco product in- and Tobacco Control Act, the Secretary shall once in the 2-year period beginning with the cluded in a list filed under subparagraph (A) submit to the appropriate committees of date of registration of such establishment or paragraph (1), notice of such discontinu- Congress a report on the results of such re- under this section and at least once in every ance, the date of such discontinuance, and search, together with recommendations on successive 2-year period thereafter. the identity of its established name. whether such publication should be contin- ‘‘(h) FOREIGN ESTABLISHMENTS SHALL REG- ‘‘(C) If since the date the registrant re- ued or modified. ISTER.—Any establishment within any for- ported under subparagraph (B) a notice of ‘‘(e) DATA COLLECTION.—Not later than 12 eign country engaged in the manufacture, discontinuance that person has resumed the months after the date of enactment of the preparation, compounding, or processing of a manufacture, preparation, compounding, or Family Smoking Prevention and Tobacco tobacco product or tobacco products, shall processing for commercial distribution of Control Act, the Secretary shall establish a register under this section under regulations the tobacco product with respect to which list of harmful and potentially harmful con- promulgated by the Secretary. Such regula- such notice of discontinuance was reported, stituents, including smoke constituents, to tions shall require such establishment to notice of such resumption, the date of such health in each tobacco product by brand and provide the information required by sub- resumption, the identity of such tobacco by quantity in each brand and subbrand. The section (i) of this section and shall include product by established name, and other in- Secretary shall publish a public notice re- provisions for registration of any such estab- formation required by paragraph (1), unless questing the submission by interested per- lishment upon condition that adequate and the registrant has previously reported such sons of scientific and other information con- effective means are available, by arrange- resumption to the Secretary under this sub- cerning the harmful and potentially harmful ment with the government of such foreign paragraph.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5968 CONGRESSIONAL RECORD — SENATE May 20, 2004 ‘‘(D) Any material change in any informa- required to be made in connection with rule- books shall not be considered adult written tion previously submitted under this para- making under any such section shall set publications. graph or paragraph (1). forth— ‘‘(e) GOOD MANUFACTURING PRACTICE RE- ‘‘(j) REPORT PRECEDING INTRODUCTION OF ‘‘(1) the manner in which interested per- QUIREMENTS.— CERTAIN SUBSTANTIALLY-EQUIVALENT PROD- sons may examine data and other informa- UCTS INTO INTERSTATE COMMERCE.— tion on which the notice or findings is based; ‘‘(1) METHODS, FACILITIES, AND CONTROLS TO ‘‘(1) IN GENERAL.—Each person who is re- and CONFORM.— quired to register under this section and who ‘‘(2) the period within which interested per- ‘‘(A) IN GENERAL.—The Secretary may, in proposes to begin the introduction or deliv- sons may present their comments on the no- accordance with subparagraph (B), prescribe ery for introduction into interstate com- tice or findings (including the need there- regulations (which may differ based on the merce for commercial distribution of a to- fore) orally or in writing, which period shall type of tobacco product involved) requiring bacco product intended for human use that be at least 60 days but may not exceed 90 that the methods used in, and the facilities was not commercially marketed (other than days unless the time is extended by the Sec- and controls used for, the manufacture, pre- for test marketing) in the United States as retary by a notice published in the Federal production design validation (including a of June 1, 2003, shall, at least 90 days prior to Register stating good cause therefore. process to assess the performance of a to- making such introduction or delivery, report ‘‘(c) LIMITED CONFIDENTIALITY OF INFORMA- bacco product), packing and storage of a to- to the Secretary (in such form and manner TION.—Any information reported to or other- bacco product, conform to current good man- as the Secretary shall prescribe)— wise obtained by the Secretary or the Sec- ufacturing practice, as prescribed in such ‘‘(A) the basis for such person’s determina- retary’s representative under section 903, 904, regulations, to assure that the public health tion that the tobacco product is substan- 907, 908, 909, 910, 911, or 704, or under sub- is protected and that the tobacco product is tially equivalent, within the meaning of sec- section (e) or (f) of this section, which is ex- in compliance with this chapter. Good manu- tion 910, to a tobacco product commercially empt from disclosure under subsection (a) of facturing practices may include the testing marketed (other than for test marketing) in section 552 of title 5, United States Code, by of raw tobacco for pesticide chemical resi- the United States as of June 1, 2003, that is reason of subsection (b)(4) of that section dues regardless of whether a tolerance for in compliance with the requirements of this shall be considered confidential and shall not such chemical residues has been established. Act; and be disclosed, except that the information ‘‘(B) REQUIREMENTS.—The Secretary ‘‘(B) action taken by such person to com- may be disclosed to other officers or employ- shall— ees concerned with carrying out this chap- ply with the requirements under section 907 ‘‘(i) before promulgating any regulation ter, or when relevant in any proceeding that are applicable to the tobacco product. under subparagraph (A), afford the Tobacco under this chapter. ‘‘(2) APPLICATION TO CERTAIN POST JUNE 1, Products Scientific Advisory Committee an ‘‘(d) RESTRICTIONS.— 2003 PRODUCTS.—A report under this sub- opportunity to submit recommendations ‘‘(1) IN GENERAL.—The Secretary may by section for a tobacco product that was first regulation require restrictions on the sale with respect to the regulation proposed to be introduced or delivered for introduction into and distribution of a tobacco product, in- promulgated; interstate commerce for commercial dis- cluding restrictions on the access to, and the ‘‘(ii) before promulgating any regulation tribution in the United States after June 1, advertising and promotion of, the tobacco under subparagraph (A), afford opportunity 2003, and prior to the date that is 15 months product, if the Secretary determines that for an oral hearing; after the date of enactment of the Family such regulation would be appropriate for the ‘‘(iii) provide the advisory committee a Smoking Prevention and Tobacco Control protection of the public health. The Sec- reasonable time to make its recommenda- Act shall be submitted to the Secretary not retary may by regulation impose restrictions tion with respect to proposed regulations later than 15 months after such date of en- on the advertising and promotion of a to- under subparagraph (A); and actment. bacco product consistent with and to full ex- ‘‘(iv) in establishing the effective date of a ‘‘(3) EXEMPTIONS.— tent permitted by the first amendment to regulation promulgated under this sub- ‘‘(A) IN GENERAL.—The Secretary may by the Constitution. The finding as to whether section, take into account the differences in regulation, exempt from the requirements of such regulation would be appropriate for the the manner in which the different types of this subsection tobacco products that are protection of the public health shall be de- tobacco products have historically been pro- modified by adding or deleting a tobacco ad- termined with respect to the risks and bene- duced, the financial resources of the dif- ditive, or increasing or decreasing the quan- fits to the population as a whole, including ferent tobacco product manufacturers, and tity of an existing tobacco additive, if the users and non-users of the tobacco product, the state of their existing manufacturing fa- Secretary determines that— and taking into account— cilities, and shall provide for a reasonable ‘‘(i) such modification would be a minor ‘‘(A) the increased or decreased likelihood period of time for such manufacturers to modification of a tobacco product authorized that existing users of tobacco products will conform to good manufacturing practices. for sale under this Act; stop using such products; and ‘‘(2) EXEMPTIONS; VARIANCES.— ‘‘(ii) a report under this subsection is not ‘‘(B) the increased or decreased likelihood ‘‘(A) PETITION.—Any person subject to any necessary to ensure that permitting the to- that those who do not use tobacco products requirement prescribed under paragraph (1) bacco product to be marketed would be ap- will start using such products. may petition the Secretary for a permanent propriate for protection of the public health; No such regulation may require that the sale or temporary exemption or variance from and or distribution of a tobacco product be lim- such requirement. Such a petition shall be ‘‘(iii) an exemption is otherwise appro- ited to the written or oral authorization of a submitted to the Secretary in such form and priate. practitioner licensed by law to prescribe manner as the Secretary shall prescribe and ‘‘(B) REGULATIONS.—Not later than 9 medical products. shall— months after the date of enactment of the ‘‘(2) LABEL STATEMENTS.—The label of a to- ‘‘(i) in the case of a petition for an exemp- Family Smoking Prevention and Tobacco bacco product shall bear such appropriate tion from a requirement, set forth the basis Control Act, the Secretary shall issue regu- statements of the restrictions required by a for the petitioner’s determination that com- lations to implement this paragraph. regulation under subsection (a) as the Sec- pliance with the requirement is not required ‘‘SEC. 906. GENERAL PROVISIONS RESPECTING retary may in such regulation prescribe. to assure that the tobacco product will be in CONTROL OF TOBACCO PRODUCTS. ‘‘(3) LIMITATIONS.— compliance with this chapter; ‘‘(a) IN GENERAL.—Any requirement estab- ‘‘(A) IN GENERAL.—No restrictions under ‘‘(ii) in the case of a petition for a variance lished by or under section 902, 903, 905, or 909 paragraph (1) may— from a requirement, set forth the methods applicable to a tobacco product shall apply ‘‘(i) prohibit the sale of any tobacco prod- proposed to be used in, and the facilities and to such tobacco product until the applicability of the requirement to the tobacco uct in face-to-face transactions by a specific controls proposed to be used for, the manu- product has been changed by action taken category of retail outlets; or facture, packing, and storage of the tobacco under section 907, section 910, section 911, or ‘‘(ii) establish a minimum age of sale of to- product in lieu of the methods, facilities, and subsection (d) of this section, and any re- bacco products to any person older than 18 controls prescribed by the requirement; and quirement established by or under section years of age. ‘‘(iii) contain such other information as 902, 903, 905, or 909 which is inconsistent with ‘‘(B) MATCHBOOKS.—For purposes of any the Secretary shall prescribe. a requirement imposed on such tobacco prod- regulations issued by the Secretary, match- ‘‘(B) REFERRAL TO THE TOBACCO PRODUCTS uct under section 907, section 910, section 911, books of conventional size containing not SCIENTIFIC ADVISORY COMMITTEE.—The Sec- or subsection (d) of this section shall not more than 20 paper matches, and which are retary may refer to the Tobacco Products apply to such tobacco product. customarily given away for free with the Scientific Advisory Committee any petition ‘‘(b) INFORMATION ON PUBLIC ACCESS AND purchase of tobacco products shall be consid- submitted under subparagraph (A). The To- COMMENT.—Each notice of proposed rule- ered as adult written publications which bacco Products Scientific Advisory Com- making under section 907, 908, 909, 910, or 911 shall be permitted to contain advertising. mittee shall report its recommendations to or under this section, any other notice which Notwithstanding the preceding sentence, if the Secretary with respect to a petition re- is published in the Federal Register with re- the Secretary finds that such treatment of ferred to it within 60 days after the date of spect to any other action taken under any matchbooks is not appropriate for the pro- the petition’s referral. Within 60 days after— such section and which states the reasons for tection of the public health, the Secretary ‘‘(i) the date the petition was submitted to such action, and each publication of findings may determine by regulation that match- the Secretary under subparagraph (A); or

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00076 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5969 ‘‘(ii) the day after the petition was referred ‘‘(A) the increased or decreased likelihood or amendment of a tobacco product standard to the Tobacco Products Scientific Advisory that existing users of tobacco products will for a tobacco product shall— Committee, stop using such products; and ‘‘(i) set forth a finding with supporting jus- whichever occurs later, the Secretary shall ‘‘(B) the increased or decreased likelihood tification that the tobacco product standard by order either deny the petition or approve that those who do not use tobacco products is appropriate for the protection of the pub- it. will start using such products. lic health; ‘‘(C) APPROVAL.—The Secretary may ap- ‘‘(4) CONTENT OF TOBACCO PRODUCT STAND- ‘‘(ii) set forth proposed findings with re- prove— ARDS.—A tobacco product standard estab- spect to the risk of illness or injury that the ‘‘(i) a petition for an exemption for a to- lished under this section for a tobacco prod- tobacco product standard is intended to re- bacco product from a requirement if the Sec- uct— duce or eliminate; and retary determines that compliance with such ‘‘(A) shall include provisions that are ap- ‘‘(iii) invite interested persons to submit requirement is not required to assure that propriate for the protection of the public an existing tobacco product standard for the the tobacco product will be in compliance health, including provisions, where appro- tobacco product, including a draft or pro- with this chapter; and priate— posed tobacco product standard, for consider- ‘‘(ii) a petition for a variance for a tobacco ‘‘(i) for the reduction of nicotine yields of ation by the Secretary. TANDARD.—Upon a determination by product from a requirement if the Secretary the product; ‘‘(C) S the Secretary that an additive, constituent determines that the methods to be used in, ‘‘(ii) for the reduction or elimination of (including smoke constituent), or other com- and the facilities and controls to be used for, other constituents, including smoke con- ponent of the product that is the subject of the manufacture, packing, and storage of the stituents, or harmful components of the the proposed tobacco product standard is tobacco product in lieu of the methods, con- product; or harmful, it shall be the burden of any party trols, and facilities prescribed by the re- ‘‘(iii) relating to any other requirement challenging the proposed standard to prove quirement are sufficient to assure that the under (B); that the proposed standard will not reduce or tobacco product will be in compliance with ‘‘(B) shall, where appropriate for the pro- eliminate the risk of illness or injury. this chapter. tection of the public health, include— ‘‘(D) FINDING.—A notice of proposed rule- ‘‘(D) CONDITIONS.—An order of the Sec- ‘‘(i) provisions respecting the construction, making for the revocation of a tobacco prod- retary approving a petition for a variance components, ingredients, additives, constituents, including smoke constituents, and uct standard shall set forth a finding with shall prescribe such conditions respecting supporting justification that the tobacco the methods used in, and the facilities and properties of the tobacco product; ‘‘(ii) provisions for the testing (on a sample product standard is no longer appropriate for controls used for, the manufacture, packing, the protection of the public health. and storage of the tobacco product to be basis or, if necessary, on an individual basis) of the tobacco product; ‘‘(E) CONSIDERATION BY SECRETARY.—The granted the variance under the petition as Secretary shall consider all information sub- may be necessary to assure that the tobacco ‘‘(iii) provisions for the measurement of the tobacco product characteristics of the mitted in connection with a proposed stand- product will be in compliance with this chap- ard, including information concerning the ter. tobacco product; ‘‘(iv) provisions requiring that the results countervailing effects of the tobacco product ‘‘(E) HEARING.—After the issuance of an standard on the health of adolescent tobacco of each or of certain of the tests of the to- order under subparagraph (B) respecting a users, adult tobacco users, or non-tobacco bacco product required to be made under petition, the petitioner shall have an oppor- users, such as the creation of a significant clause (ii) show that the tobacco product is tunity for an informal hearing on such order. demand for contraband or other tobacco in conformity with the portions of the stand- ‘‘(3) COMPLIANCE.—Compliance with re- products that do not meet the requirements ard for which the test or tests were required; quirements under this subsection shall not of this chapter and the significance of such and be required before the period ending 3 years demand, and shall issue the standard if the ‘‘(v) a provision requiring that the sale and after the date of enactment of the Family Secretary determines that the standard distribution of the tobacco product be re- Smoking Prevention and Tobacco Control would be appropriate for the protection of stricted but only to the extent that the sale Act. the public health. and distribution of a tobacco product may be ‘‘(f) RESEARCH AND DEVELOPMENT.—The ‘‘(F) COMMENT.—The Secretary shall pro- restricted under a regulation under section Secretary may enter into contracts for re- vide for a comment period of not less than 60 906(d); and search, testing, and demonstrations respect- days. ‘‘(C) shall, where appropriate, require the ing tobacco products and may obtain tobacco ‘‘(2) PROMULGATION.— use and prescribe the form and content of la- products for research, testing, and dem- ‘‘(A) IN GENERAL.—After the expiration of beling for the proper use of the tobacco prod- onstration purposes without regard to sec- the period for comment on a notice of pro- uct. tion 3324(a) and (b) of title 31, United States posed rulemaking published under paragraph ‘‘(5) PERIODIC RE-EVALUATION OF TOBACCO Code, and section 5 of title 41, United States (1) respecting a tobacco product standard PRODUCT STANDARDS.—The Secretary shall Code. and after consideration of such comments provide for periodic evaluation of tobacco and any report from the Tobacco Products ‘‘SEC. 907. TOBACCO PRODUCT STANDARDS. product standards established under this sec- Scientific Advisory Committee, the Sec- ‘‘(a) IN GENERAL.— tion to determine whether such standards retary shall— ‘‘(1) SPECIAL RULE FOR CIGARETTES.—A cig- should be changed to reflect new medical, ‘‘(i) promulgate a regulation establishing a arette or any of its component parts (includ- scientific, or other technological data. The tobacco product standard and publish in the ing the tobacco, filter, or paper) shall not Secretary may provide for testing under Federal Register findings on the matters re- contain, as a constituent (including a smoke paragraph (4)(B) by any person. ferred to in paragraph (1); or constituent) or additive, an artificial or nat- ‘‘(6) INVOLVEMENT OF OTHER AGENCIES; IN- ‘‘(ii) publish a notice terminating the pro- ural flavor (other than tobacco or menthol) FORMED PERSONS.—In carrying out duties ceeding for the development of the standard or an herb or spice, including strawberry, under this section, the Secretary shall en- together with the reasons for such termi- grape, orange, clove, cinnamon, pineapple, deavor to— nation. vanilla, coconut, licorice, cocoa, chocolate, ‘‘(A) use personnel, facilities, and other ‘‘(B) EFFECTIVE DATE.—A regulation estab- cherry, or coffee, that is a characterizing fla- technical support available in other Federal lishing a tobacco product standard shall set vor of the tobacco product or tobacco smoke. agencies; forth the date or dates upon which the stand- Nothing in this subparagraph shall be con- ‘‘(B) consult with other Federal agencies ard shall take effect, but no such regulation strued to limit the Secretary’s authority to concerned with standard-setting and other may take effect before 1 year after the date take action under this section or other sec- nationally or internationally recognized of its publication unless the Secretary deter- tions of this Act applicable to menthol or standard-setting entities; and mines that an earlier effective date is nec- any artificial or natural flavor, herb, or spice ‘‘(C) invite appropriate participation, essary for the protection of the public not specified in this paragraph. through joint or other conferences, work- health. Such date or dates shall be estab- ‘‘(2) REVISION OF TOBACCO PRODUCT STAND- shops, or other means, by informed persons lished so as to minimize, consistent with the ARDS.—The Secretary may revise the to- representative of scientific, professional, in- public health, economic loss to, and disrup- bacco product standards in paragraph (1) in dustry, agricultural, or consumer organization or dislocation of, domestic and inter- accordance with subsection (b). tions who in the Secretary’s judgment can national trade. ‘‘(3) TOBACCO PRODUCT STANDARDS.—The make a significant contribution. ‘‘(3) POWER RESERVED TO CONGRESS.—Be- Secretary may adopt tobacco product stand- ‘‘(b) ESTABLISHMENT OF STANDARDS.— cause of the importance of a decision of the ards in addition to those in paragraph (1) if ‘‘(1) NOTICE.— Secretary to issue a regulation establishing the Secretary finds that a tobacco product ‘‘(A) IN GENERAL.—The Secretary shall pub- a tobacco product standard— standard is appropriate for the protection of lish in the Federal Register a notice of pro- ‘‘(A) banning all cigarettes, all smokeless the public health. This finding shall be deter- posed rulemaking for the establishment, tobacco products, all little cigars, all cigars mined with respect to the risks and benefits amendment, or revocation of any tobacco other than little cigars, all pipe tobacco, or to the population as a whole, including users product standard. all roll your own tobacco products; or and non-users of the tobacco product, and ‘‘(B) REQUIREMENTS OF NOTICE.—A notice of ‘‘(B) requiring the reduction of nicotine taking into account— proposed rulemaking for the establishment yields of a tobacco product to zero,

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Congress expressly reserves to itself such ‘‘(c) RECALL AUTHORITY.— and the need for the protection of the public power. ‘‘(1) IN GENERAL.—If the Secretary finds health and the implementation of this chap- ‘‘(4) AMENDMENT; REVOCATION.— that there is a reasonable probability that a ter; ‘‘(A) AUTHORITY.—The Secretary, upon the tobacco product contains a manufacturing or ‘‘(4) when prescribing the procedure for Secretary’s own initiative or upon petition other defect not ordinarily contained in to- making requests for reports or information, of an interested person may by a regulation, bacco products on the market that would shall require that each request made under promulgated in accordance with the require- cause serious, adverse health consequences such regulations for submission of a report ments of paragraphs (1) and (2)(B), amend or or death, the Secretary shall issue an order or information to the Secretary state the revoke a tobacco product standard. requiring the appropriate person (including reason or purpose for such request and iden- ‘‘(B) EFFECTIVE DATE.—The Secretary may the manufacturers, importers, distributors, tify to the fullest extent practicable such re- declare a proposed amendment of a tobacco or retailers of the tobacco product) to imme- port or information; product standard to be effective on and after diately cease distribution of such tobacco ‘‘(5) when requiring submission of a report its publication in the Federal Register and product. The order shall provide the person or information to the Secretary, shall state until the effective date of any final action subject to the order with an opportunity for the reason or purpose for the submission of taken on such amendment if the Secretary an informal hearing, to be held not later such report or information and identify to determines that making it so effective is in than 10 days after the date of the issuance of the fullest extent practicable such report or the public interest. the order, on the actions required by the information; and ‘‘(5) REFERENCE TO ADVISORY COMMITTEE.— order and on whether the order should be ‘‘(6) may not require that the identity of The Secretary may— amended to require a recall of such tobacco any patient or user be disclosed in records, ‘‘(A) on the Secretary’s own initiative, product. If, after providing an opportunity reports, or information required under this refer a proposed regulation for the establish- for such a hearing, the Secretary determines subsection unless required for the medical ment, amendment, or revocation of a to- that inadequate grounds exist to support the welfare of an individual, to determine risks bacco product standard; or actions required by the order, the Secretary to public health of a tobacco product, or to ‘‘(B) upon the request of an interested per- shall vacate the order. verify a record, report, or information sub- son which demonstrates good cause for refer- ‘‘(2) AMENDMENT OF ORDER TO REQUIRE RE- mitted under this chapter. ral and which is made before the expiration CALL.— In prescribing regulations under this sub- of the period for submission of comments on ‘‘(A) IN GENERAL.—If, after providing an op- section, the Secretary shall have due regard such proposed regulation, portunity for an informal hearing under for the professional ethics of the medical refer such proposed regulation to the To- paragraph (1), the Secretary determines that profession and the interests of patients. The bacco Products Scientific Advisory Com- the order should be amended to include a re- prohibitions of paragraph (6) continue to mittee, for a report and recommendation call of the tobacco product with respect to apply to records, reports, and information with respect to any matter involved in the which the order was issued, the Secretary concerning any individual who has been a pa- proposed regulation which requires the exer- shall, except as provided in subparagraph tient, irrespective of whether or when he cise of scientific judgment. If a proposed reg- (B), amend the order to require a recall. The ceases to be a patient. ulation is referred under this paragraph to Secretary shall specify a timetable in which ‘‘(b) REPORTS OF REMOVALS AND CORREC- the Tobacco Products Scientific Advisory the tobacco product recall will occur and TIONS.— Committee, the Secretary shall provide the shall require periodic reports to the Sec- ‘‘(1) IN GENERAL.—Except as provided in advisory committee with the data and infor- retary describing the progress of the recall. paragraph (2), the Secretary shall by regula- mation on which such proposed regulation is ‘‘(B) NOTICE.—An amended order under sub- tion require a tobacco product manufacturer based. The Tobacco Products Scientific Ad- paragraph (A)— or importer of a tobacco product to report visory Committee shall, within 60 days after ‘‘(i) shall not include recall of a tobacco promptly to the Secretary any corrective ac- the referral of a proposed regulation and product from individuals; and tion taken or removal from the market of a after independent study of the data and in- ‘‘(ii) shall provide for notice to persons tobacco product undertaken by such manu- formation furnished to it by the Secretary subject to the risks associated with the use facturer or importer if the removal or cor- and other data and information before it, of such tobacco product. rection was undertaken— submit to the Secretary a report and rec- In providing the notice required by clause ‘‘(A) to reduce a risk to health posed by the ommendation respecting such regulation, to- (ii), the Secretary may use the assistance of tobacco product; or gether with all underlying data and informa- ‘‘(B) to remedy a violation of this chapter tion and a statement of the reason or basis retailers and other persons who distributed such tobacco product. If a significant num- caused by the tobacco product which may for the recommendation. A copy of such represent a risk to health. port and recommendation shall be made pub- ber of such persons cannot be identified, the lic by the Secretary. Secretary shall notify such persons under A tobacco product manufacturer or importer ‘‘SEC. 908. NOTIFICATION AND OTHER REMEDIES. section 705(b). of a tobacco product who undertakes a cor- ‘‘(3) REMEDY NOT EXCLUSIVE.—The remedy ‘‘(a) NOTIFICATION.—If the Secretary deter- rective action or removal from the market of mines that— provided by this subsection shall be in addi- a tobacco product which is not required to be ‘‘(1) a tobacco product which is introduced tion to remedies provided by subsection (a) reported under this subsection shall keep a or delivered for introduction into interstate of this section. record of such correction or removal. commerce for commercial distribution pre- ‘‘SEC. 909. RECORDS AND REPORTS ON TOBACCO ‘‘(2) EXCEPTION.—No report of the correc- sents an unreasonable risk of substantial PRODUCTS. tive action or removal of a tobacco product harm to the public health; and ‘‘(a) IN GENERAL.—Every person who is a may be required under paragraph (1) if a re- ‘‘(2) notification under this subsection is tobacco product manufacturer or importer of port of the corrective action or removal is necessary to eliminate the unreasonable risk a tobacco product shall establish and main- required and has been submitted under sub- of such harm and no more practicable means tain such records, make such reports, and section (a). is available under the provisions of this provide such information, as the Secretary ‘‘SEC. 910. APPLICATION FOR REVIEW OF CER- chapter (other than this section) to elimi- may by regulation reasonably require to as- TAIN TOBACCO PRODUCTS. nate such risk, sure that such tobacco product is not adul- ‘‘(a) IN GENERAL.— terated or misbranded and to otherwise pro- ‘‘(1) NEW TOBACCO PRODUCT DEFINED.—For the Secretary may issue such order as may tect public health. Regulations prescribed purposes of this section the term ‘new to- be necessary to assure that adequate notifi- under the preceding sentence— bacco product’ means— cation is provided in an appropriate form, by the persons and means best suited under the ‘‘(1) may require a tobacco product manu- ‘‘(A) any tobacco product (including those circumstances involved, to all persons who facturer or importer to report to the Sec- products in test markets) that was not com- should properly receive such notification in retary whenever the manufacturer or im- mercially marketed in the United States as order to eliminate such risk. The Secretary porter receives or otherwise becomes aware of June 1, 2003; or may order notification by any appropriate of information that reasonably suggests that ‘‘(B) any modification (including a change means, including public service announce- one of its marketed tobacco products may in design, any component, any part, or any ments. Before issuing an order under this have caused or contributed to a serious unex- constituent, including a smoke constituent, subsection, the Secretary shall consult with pected adverse experience associated with or in the content, delivery or form of nico- the persons who are to give notice under the the use of the product or any significant in- tine, or any other additive or ingredient) of order. crease in the frequency of a serious, expected a tobacco product where the modified prod- ‘‘(b) NO EXEMPTION FROM OTHER LIABIL- adverse product experience; uct was commercially marketed in the ITY.—Compliance with an order issued under ‘‘(2) shall require reporting of other signifi- United States after June 1, 2003. this section shall not relieve any person cant adverse tobacco product experiences as ‘‘(2) PREMARKET APPROVAL REQUIRED.— from liability under Federal or State law. In determined by the Secretary to be necessary ‘‘(A) NEW PRODUCTS.—Approval under this awarding damages for economic loss in an to be reported; section of an application for premarket ap- action brought for the enforcement of any ‘‘(3) shall not impose requirements unduly proval for any new tobacco product is re- such liability, the value to the plaintiff in burdensome to a tobacco product manufac- quired unless— such action of any remedy provided under turer or importer, taking into account the ‘‘(i) the manufacturer has submitted a re- such order shall be taken into account. cost of complying with such requirements port under section 905(j); and

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or which would be applicable to any aspect of application in approvable form (which meas- ‘‘(bb) is exempt from the requirements of such tobacco product, and either adequate ures may include further research by the ap- section 905(j) pursuant to a regulation issued information to show that such aspect of such plicant in accordance with 1 or more proto- under section 905(j)(3). tobacco product fully meets such tobacco cols prescribed by the Secretary). ‘‘(B) APPLICATION TO CERTAIN POST JUNE 1, product standard or adequate information to ‘‘(4) BASIS FOR FINDING.—For purposes of 2003 PRODUCTS.—Subparagraph (A) shall not justify any deviation from such standard; this section, the finding as to whether ap- apply to a tobacco product— ‘‘(E) such samples of such tobacco product proval of a tobacco product is appropriate for ‘‘(i) that was first introduced or delivered and of components thereof as the Secretary the protection of the public health shall be for introduction into interstate commerce may reasonably require; determined with respect to the risks and for commercial distribution in the United ‘‘(F) specimens of the labeling proposed to benefits to the population as a whole, includ- States after June 1, 2003, and prior to the be used for such tobacco product; and ing users and nonusers of the tobacco prod- date that is 15 months after the date of en- ‘‘(G) such other information relevant to uct, and taking into account— actment of the Family Smoking Prevention the subject matter of the application as the ‘‘(A) the increased or decreased likelihood and Tobacco Control Act; and Secretary may require. that existing users of tobacco products will ‘‘(ii) for which a report was submitted ‘‘(2) REFERENCE TO TOBACCO PRODUCTS SCI- stop using such products; and under section 905(j) within such 15-month pe- ENTIFIC ADVISORY COMMITTEE.—Upon receipt ‘‘(B) the increased or decreased likelihood riod, until the Secretary issues an order that of an application meeting the requirements that those who do not use tobacco products the tobacco product is not substantially set forth in paragraph (1), the Secretary— will start using such products. equivalent. ‘‘(A) may, on the Secretary’s own initia- ‘‘(5) BASIS FOR ACTION.— ‘‘(3) SUBSTANTIALLY EQUIVALENT DEFINED.— tive; or ‘‘(A) INVESTIGATIONS.—For purposes of ‘‘(A) IN GENERAL.—In this section and sec- ‘‘(B) may, upon the request of an applicant, paragraph (2)(A), whether permitting a to- tion 905(j), the terms ‘substantially equiva- refer such application to the Tobacco Prod- bacco product to be marketed would be ap- lent’ or ‘substantial equivalence’ mean, with ucts Scientific Advisory Committee for ref- propriate for the protection of the public respect to the tobacco product being com- erence and for submission (within such pe- health shall, when appropriate, be deter- pared to the predicate tobacco product, that riod as the Secretary may establish) of a re- mined on the basis of well-controlled inves- the Secretary by order has found that the to- port and recommendation respecting ap- tigations, which may include 1 or more clin- bacco product— proval of the application, together with all ical investigations by experts qualified by ‘‘(i) has the same characteristics as the underlying data and the reasons or basis for training and experience to evaluate the to- predicate tobacco product; or the recommendation. bacco product. ‘‘(ii) has different characteristics and the ‘‘(c) ACTION ON APPLICATION.— ‘‘(B) OTHER EVIDENCE.—If the Secretary de- information submitted contains information, ‘‘(1) DEADLINE.— termines that there exists valid scientific including clinical data if deemed necessary ‘‘(A) IN GENERAL.—As promptly as possible, evidence (other than evidence derived from by the Secretary, that demonstrates that it but in no event later than 180 days after the investigations described in subparagraph is not appropriate to regulate the product receipt of an application under subsection (A)) which is sufficient to evaluate the to- under this section because the product does (b), the Secretary, after considering the re- bacco product the Secretary may authorize not raise different questions of public health. port and recommendation submitted under that the determination for purposes of para- ‘‘(B) CHARACTERISTICS.—In subparagraph paragraph (2) of such subsection, shall— graph (2)(A) be made on the basis of such evi- (A), the term ‘characteristics’ means the ma- ‘‘(i) issue an order approving the applica- dence. terials, ingredients, design, composition, tion if the Secretary finds that none of the ‘‘(d) WITHDRAWAL AND TEMPORARY SUSPEN- heating source, or other features of a to- grounds for denying approval specified in SION.— bacco product. paragraph (2) of this subsection applies; or ‘‘(1) IN GENERAL.—The Secretary shall, ‘‘(C) LIMITATION.—A tobacco product may ‘‘(ii) deny approval of the application if the upon obtaining, where appropriate, advice on not be found to be substantially equivalent Secretary finds (and sets forth the basis for scientific matters from an advisory com- to a predicate tobacco product that has been such finding as part of or accompanying such mittee, and after due notice and opportunity removed from the market at the initiative of denial) that 1 or more grounds for denial for informal hearing to the holder of an ap- the Secretary or that has been determined specified in paragraph (2) of this subsection proved application for a tobacco product, by a judicial order to be misbranded or adul- apply. issue an order withdrawing approval of the terated. ‘‘(B) RESTRICTIONS ON SALE AND DISTRIBU- application if the Secretary finds— ‘‘(4) HEALTH INFORMATION.— TION.—An order approving an application for ‘‘(A) that the continued marketing of such ‘‘(A) SUMMARY.—As part of a submission a tobacco product may require as a condition tobacco product no longer is appropriate for under section 905(j) respecting a tobacco to such approval that the sale and distribu- the protection of the public health; product, the person required to file a pre- tion of the tobacco product be restricted but ‘‘(B) that the application contained or was market notification under such section shall only to the extent that the sale and distribu- accompanied by an untrue statement of a provide an adequate summary of any health tion of a tobacco product may be restricted material fact; information related to the tobacco product under a regulation under section 906(d). ‘‘(C) that the applicant— or state that such information will be made ‘‘(2) DENIAL OF APPROVAL.—The Secretary ‘‘(i) has failed to establish a system for available upon request by any person. shall deny approval of an application for a maintaining records, or has repeatedly or de- ‘‘(B) REQUIRED INFORMATION.—Any sum- tobacco product if, upon the basis of the in- liberately failed to maintain records or to mary under subparagraph (A) respecting a formation submitted to the Secretary as make reports, required by an applicable reg- tobacco product shall contain detailed infor- part of the application and any other infor- ulation under section 909; mation regarding data concerning adverse mation before the Secretary with respect to ‘‘(ii) has refused to permit access to, or health effects and shall be made available to such tobacco product, the Secretary finds copying or verification of, such records as re- the public by the Secretary within 30 days of that— quired by section 704; or the issuance of a determination that such to- ‘‘(A) there is a lack of a showing that per- ‘‘(iii) has not complied with the require- bacco product is substantially equivalent to mitting such tobacco product to be marketed ments of section 905; another tobacco product. would be appropriate for the protection of ‘‘(D) on the basis of new information before ‘‘(b) APPLICATION.— the public health; the Secretary with respect to such tobacco ‘‘(1) CONTENTS.—An application for pre- ‘‘(B) the methods used in, or the facilities product, evaluated together with the evi- market approval shall contain— or controls used for, the manufacture, proc- dence before the Secretary when the applica- ‘‘(A) full reports of all information, pub- essing, or packing of such tobacco product do tion was approved, that the methods used in, lished or known to, or which should reason- not conform to the requirements of section or the facilities and controls used for, the ably be known to, the applicant, concerning 906(e); manufacture, processing, packing, or instal- investigations which have been made to ‘‘(C) based on a fair evaluation of all mate- lation of such tobacco product do not con- show the health risks of such tobacco prod- rial facts, the proposed labeling is false or form with the requirements of section 906(e) uct and whether such tobacco product pre- misleading in any particular; or and were not brought into conformity with sents less risk than other tobacco products; ‘‘(D) such tobacco product is not shown to such requirements within a reasonable time ‘‘(B) a full statement of the components, conform in all respects to a tobacco product after receipt of written notice from the Sec- ingredients, additives, and properties, and of standard in effect under section 907, compli- retary of nonconformity; the principle or principles of operation, of ance with which is a condition to approval of ‘‘(E) on the basis of new information before such tobacco product; the application, and there is a lack of ade- the Secretary, evaluated together with the

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evidence before the Secretary when the ap- ‘‘(b) DEFINITIONS.—In this section: and advertising accompanying such applica- plication was approved, that the labeling of ‘‘(1) MODIFIED RISK TOBACCO PRODUCT.—The tion. such tobacco product, based on a fair evalua- term ‘modified risk tobacco product’ means ‘‘(f) ADVISORY COMMITTEE.— tion of all material facts, is false or mis- any tobacco product that is sold or distrib- ‘‘(1) IN GENERAL.—The Secretary shall refer leading in any particular and was not cor- uted for use to reduce harm or the risk of to- to an advisory committee any application rected within a reasonable time after receipt bacco-related disease associated with com- submitted under this subsection. of written notice from the Secretary of such mercially marketed tobacco products. ‘‘(2) RECOMMENDATIONS.—Not later than 60 fact; or ‘‘(2) SOLD OR DISTRIBUTED.— days after the date an application is referred ‘‘(F) on the basis of new information before ‘‘(A) IN GENERAL.—With respect to a to- to an advisory committee under paragraph the Secretary, evaluated together with the bacco product, the term ‘sold or distributed (1), the advisory committee shall report its evidence before the Secretary when the ap- for use to reduce harm or the risk of to- recommendations on the application to the plication was approved, that such tobacco bacco-related disease associated with com- Secretary. product is not shown to conform in all re- mercially marketed tobacco products’ means ‘‘(g) APPROVAL.— spects to a tobacco product standard which a tobacco product— ‘‘(1) MODIFIED RISK PRODUCTS.—Except as is in effect under section 907, compliance ‘‘(A) the label, labeling, or advertising of provided in paragraph (2), the Secretary with which was a condition to approval of which represents explicitly or implicitly shall approve an application for a modified the application, and that there is a lack of that— risk tobacco product filed under this section adequate information to justify the devi- ‘‘(I) the tobacco product presents a lower only if the Secretary determines that the ap- ation from such standard. risk of tobacco-related disease or is less plicant has demonstrated that such product, ‘‘(2) APPEAL.—The holder of an application harmful than one or more other commer- as it is actually used by consumers, will— ‘‘(A) significantly reduce harm and the subject to an order issued under paragraph cially marketed tobacco products; risk of tobacco-related disease to individual (1) withdrawing approval of the application ‘‘(II) the tobacco product or its smoke con- tobacco users; and may, by petition filed on or before the 30th tains a reduced level of a substance or pre- ‘‘(B) benefit the health of the population as day after the date upon which such holder sents a reduced exposure to a substance; or a whole taking into account both users of to- receives notice of such withdrawal, obtain ‘‘(III) the tobacco product or its smoke bacco products and persons who do not cur- review thereof in accordance with subsection does not contain or is free of a substance; rently use tobacco products. (e). ‘‘(ii) the label, labeling, or advertising of ‘‘(2) SPECIAL RULE FOR CERTAIN PRODUCTS.— ‘‘(3) TEMPORARY SUSPENSION.—If, after pro- which uses the descriptors ‘light’, ‘mild’, or ‘‘(A) IN GENERAL.—The Secretary may ap- viding an opportunity for an informal hear- ‘low’ or similar descriptors; or ing, the Secretary determines there is rea- prove an application for a tobacco product ‘‘(iii) the tobacco product manufacturer of that has not been approved as a modified sonable probability that the continuation of which has taken any action directed to con- distribution of a tobacco product under an risk tobacco product pursuant to paragraph sumers through the media or otherwise, (1) if the Secretary makes the findings re- approved application would cause serious, other than by means of the tobacco product’s adverse health consequences or death, that is quired under this paragraph and determines label, labeling or advertising, after the date that the applicant has demonstrated that— greater than ordinarily caused by tobacco of enactment of the Family Smoking Pre- ‘‘(i) the approval of the application would products on the market, the Secretary shall vention and Tobacco Control Act, respecting be appropriate to promote the public health; by order temporarily suspend the approval of the product that would be reasonably ex- ‘‘(ii) any aspect of the label, labeling, and the application approved under this section. pected to result in consumers believing that advertising for such product that would If the Secretary issues such an order, the the tobacco product or its smoke may cause the tobacco product to be a modified Secretary shall proceed expeditiously under present a lower risk of disease or is less risk tobacco product under subsection (b)(2) paragraph (1) to withdraw such application. harmful than one or more commercially is limited to an explicit or implicit represen- ‘‘(e) SERVICE OF ORDER.—An order issued marketed tobacco products, or presents a re- by the Secretary under this section shall be tation that such tobacco product or its duced exposure to, or does not contain or is smoke contains or is free of a substance or served— free of, a substance or substances. ‘‘(1) in person by any officer or employee of contains a reduced level of a substance, or ‘‘(B) LIMITATION.—No tobacco product shall presents a reduced exposure to a substance the department designated by the Secretary; be considered to be ‘sold or distributed for or in tobacco smoke. use to reduce harm or the risk of tobacco-re- ‘‘(iii) scientific evidence is not available ‘‘(2) by mailing the order by registered lated disease associated with commercially mail or certified mail addressed to the appli- and, using the best available scientific meth- marketed tobacco products’, except as de- ods, cannot be made available without con- cant at the applicant’s last known address in scribed in subparagraph (A). the records of the Secretary. ducting long-term epidemiological studies ‘‘(c) TOBACCO DEPENDENCE PRODUCTS.—A ‘‘(f) RECORDS.— for an application to meet the standards set product that is intended to be used for the ‘‘(1) ADDITIONAL INFORMATION.—In the case forth in paragraph (1); and treatment of tobacco dependence, including of any tobacco product for which an approval ‘‘(iv) the scientific evidence that is avail- smoking cessation, is not a modified risk to- of an application filed under subsection (b) is able without conducting long-term epidemio- bacco product under this section and is sub- in effect, the applicant shall establish and logical studies demonstrates that a measur- ject to the requirements of chapter V. maintain such records, and make such re- able and substantial reduction in morbidity ports to the Secretary, as the Secretary may ‘‘(d) FILING.—Any person may file with the or mortality among individual tobacco users by regulation, or by order with respect to Secretary an application for a modified risk is anticipated in subsequent studies. such application, prescribe on the basis of a tobacco product. Such application shall in- ‘‘(B) ADDITIONAL FINDINGS REQUIRED.—In finding that such records and reports are clude— order to approve an application under sub- necessary in order to enable the Secretary to ‘‘(1) a description of the proposed product paragraph (A) the Secretary must also find determine, or facilitate a determination of, and any proposed advertising and labeling; that the applicant has demonstrated that— whether there is or may be grounds for with- ‘‘(2) the conditions for using the product; ‘‘(i) the magnitude of the overall reduc- drawing or temporarily suspending such ap- ‘‘(3) the formulation of the product; tions in exposure to the substance or sub- proval. ‘‘(4) sample product labels and labeling; stances which are the subject of the applica- ‘‘(5) all documents (including underlying ‘‘(2) ACCESS TO RECORDS.—Each person re- tion is substantial, such substance or sub- quired under this section to maintain scientific information) relating to research stances are harmful, and the product as ac- records, and each person in charge or cus- findings conducted, supported, or possessed tually used exposes consumers to the speci- tody thereof, shall, upon request of an officer by the tobacco product manufacturer relat- fied reduced level of the substance or sub- or employee designated by the Secretary, ing to the effect of the product on tobacco stances; permit such officer or employee at all rea- related diseases and health-related condi- ‘‘(ii) the product as actually used by con- sonable times to have access to and copy and tions, including information both favorable sumers will not expose them to higher levels verify such records. and unfavorable to the ability of the product of other harmful substances compared to the ‘‘(g) INVESTIGATIONAL TOBACCO PRODUCT to reduce risk or exposure and relating to similar types of tobacco products then on EXEMPTION FOR INVESTIGATIONAL USE.—The human health; the market unless such increases are mini- Secretary may exempt tobacco products in- ‘‘(6) data and information on how con- mal and the anticipated overall impact of tended for investigational use from the pro- sumers actually use the tobacco product; and use of the product remains a substantial and visions of this chapter under such conditions ‘‘(7) such other information as the Sec- measurable reduction in overall morbidity as the Secretary may by regulation pre- retary may require. and mortality among individual tobacco scribe. ‘‘(e) PUBLIC AVAILABILITY.—The Secretary users; ‘‘SEC. 911. MODIFIED RISK TOBACCO PRODUCTS. shall make the application described in sub- ‘‘(iii) testing of actual consumer percep- ‘‘(a) IN GENERAL.—No person may intro- section (d) publicly available (except matters tion shows that, as the applicant proposes to duce or deliver for introduction into inter- in the application which are trade secrets or label and market the product, consumers state commerce any modified risk tobacco otherwise confidential, commercial informa- will not be misled into believing that the product unless approval of an application tion) and shall request comments by inter- product— filed pursuant to subsection (d) is effective ested persons on the information contained ‘‘(I) is or has been demonstrated to be less with respect to such product. in the application and on the label, labeling, harmful; or

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00080 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5973 ‘‘(II) presents or has been demonstrated to value of the top 3 brands of an established to the product that is the subject of the ap- present less of a risk of disease than 1 or regular tobacco product). plication; or more other commercially marketed tobacco ‘‘(B) QUANTITATIVE COMPARISONS.—The Sec- ‘‘(C) any postmarket surveillance or stud- products; and retary may also require, for purposes of sub- ies reveal that the approval of the applica- ‘‘(iv) approval of the application is ex- paragraph (A), that the percent (or fraction) tion is no longer consistent with the protec- pected to benefit the health of the popu- of change and identity of the reference to- tion of the public health; lation as a whole taking into account both bacco product and a quantitative comparison ‘‘(4) the applicant failed to conduct or sub- users of tobacco products and persons who do of the amount of the substance claimed to be mit the postmarket surveillance and studies not currently use tobacco products. reduced shall be stated in immediate prox- required under subsection (g)(2)(C)(ii) or (i); ‘‘(C) CONDITIONS OF APPROVAL.— imity to the most prominent claim. or ‘‘(i) IN GENERAL.—Applications approved ‘‘(3) LABEL DISCLOSURE.— ‘‘(5) the applicant failed to meet a condi- under this paragraph shall be limited to a ‘‘(A) IN GENERAL.—The Secretary may re- tion imposed under subsection (h). term of not more than 5 years, but may be quire the disclosure on the label of other ‘‘(k) CHAPTER IV OR V.—A product ap- renewed upon a finding by the Secretary substances in the tobacco product, or sub- proved in accordance with this section shall that the requirements of this paragraph con- stances that may be produced by the con- not be subject to chapter IV or V. tinue to be satisfied based on the filing of a sumption of that tobacco product, that may ‘‘(l) IMPLEMENTING REGULATIONS OR GUID- new application. affect a disease or health-related condition ANCE.— ‘‘(ii) AGREEMENTS BY APPLICANT.—Applica- or may increase the risk of other diseases or ‘‘(1) SCIENTIFIC EVIDENCE.—Not later than 2 tions approved under this paragraph shall be health-related conditions associated with years after the date of enactment of the conditioned on the applicant’s agreement to the use of tobacco products. Family Smoking Prevention and Tobacco conduct post-market surveillance and stud- ‘‘(B) CONDITIONS OF USE.—If the conditions Control Act, the Secretary shall issue regu- ies and to submit to the Secretary the re- of use of the tobacco product may affect the lations or guidance (or any combination sults of such surveillance and studies to de- risk of the product to human health, the thereof) on the scientific evidence required termine the impact of the application ap- Secretary may require the labeling of condi- for assessment and ongoing review of modi- proval on consumer perception, behavior, tions of use. fied risk tobacco products. Such regulations and health and to enable the Secretary to re- ‘‘(4) TIME.—The Secretary shall limit an or guidance shall— view the accuracy of the determinations approval under subsection (g)(1) for a speci- ‘‘(A) establish minimum standards for sci- upon which the approval was based in ac- fied period of time. entific studies needed prior to approval to cordance with a protocol approved by the ‘‘(5) ADVERTISING.—The Secretary may re- show that a substantial reduction in mor- Secretary. quire that an applicant, whose application bidity or mortality among individual to- has been approved under this subsection, ‘‘(iii) ANNUAL SUBMISSION.—The results of bacco users is likely; such post-market surveillance and studies comply with requirements relating to adver- ‘‘(B) include validated biomarkers, inter- described in clause (ii) shall be submitted an- tising and promotion of the tobacco product. mediate clinical endpoints, and other fea- ‘‘(i) POSTMARKET SURVEILLANCE AND STUD- nually. sible outcome measures, as appropriate; IES.— ‘‘(3) BASIS.—The determinations under ‘‘(C) establish minimum standards for post ‘‘(1) IN GENERAL.—The Secretary shall re- paragraphs (1) and (2) shall be based on— market studies, that shall include regular quire that an applicant under subsection ‘‘(A) the scientific evidence submitted by and long-term assessments of health out- (g)(1) conduct post market surveillance and the applicant; and comes and mortality, intermediate clinical studies for a tobacco product for which an ‘‘(B) scientific evidence and other informa- endpoints, consumer perception of harm re- application has been approved to determine tion that is available to the Secretary. duction, and the impact on quitting behavior the impact of the application approval on ‘‘(4) BENEFIT TO HEALTH OF INDIVIDUALS AND and new use of tobacco products, as appro- consumer perception, behavior, and health, OF POPULATION AS A WHOLE.—In making the priate; to enable the Secretary to review the accu- determinations under paragraphs (1) and (2), ‘‘(D) establish minimum standards for re- racy of the determinations upon which the the Secretary shall take into account— quired postmarket surveillance, including approval was based, and to provide informa- ‘‘(A) the relative health risks to individ- ongoing assessments of consumer perception; tion that the Secretary determines is other- uals of the tobacco product that is the sub- and wise necessary regarding the use or health ject of the application; ‘‘(E) require that data from the required risks involving the tobacco product. The re- ‘‘(B) the increased or decreased likelihood studies and surveillance be made available to sults of post-market surveillance and studies that existing users of tobacco products who the Secretary prior to the decision on re- shall be submitted to the Secretary on an would otherwise stop using such products newal of a modified risk tobacco product. annual basis. will switch to the tobacco product that is ‘‘(2) CONSULTATION.—The regulations or ‘‘(2) SURVEILLANCE PROTOCOL.—Each appli- the subject of the application; guidance issued under paragraph (1) shall be cant required to conduct a surveillance of a ‘‘(C) the increased or decreased likelihood developed in consultation with the Institute tobacco product under paragraph (1) shall, that persons who do not use tobacco prod- of Medicine, and with the input of other ap- within 30 days after receiving notice that the ucts will start using the tobacco product propriate scientific and medical experts, on applicant is required to conduct such surveil- that is the subject of the application; the design and conduct of such studies and lance, submit, for the approval of the Sec- ‘‘(D) the risks and benefits to persons from surveillance. retary, a protocol for the required surveil- the use of the tobacco product that is the ‘‘(3) REVISION.—The regulations or guid- lance. The Secretary, within 60 days of the subject of the application as compared to the ance under paragraph (1) shall be revised on receipt of such protocol, shall determine if use of products for smoking cessation ap- a regular basis as new scientific information the principal investigator proposed to be proved under chapter V to treat nicotine de- becomes available. used in the surveillance has sufficient quali- pendence; and ‘‘(4) NEW TOBACCO PRODUCTS.—Not later fications and experience to conduct such sur- ‘‘(E) comments, data, and information sub- than 2 years after the date of enactment of veillance and if such protocol will result in mitted by interested persons. the Family Smoking Prevention and To- collection of the data or other information bacco Control Act, the Secretary shall issue ‘‘(h) ADDITIONAL CONDITIONS FOR AP- designated by the Secretary as necessary to a regulation or guidance that permits the fil- PROVAL.— protect the public health. ‘‘(1) MODIFIED RISK PRODUCTS.—The Sec- ‘‘(j) WITHDRAWAL OF APPROVAL.—The Sec- ing of a single application for any tobacco retary shall require for the approval of an retary, after an opportunity for an informal product that is a new tobacco product under application under this section that any ad- hearing, shall withdraw the approval of an section 910 and for which the applicant seeks vertising or labeling concerning modified application under this section if the Sec- approval as a modified risk tobacco product risk products enable the public to com- retary determines that— under this section. prehend the information concerning modi- ‘‘(1) the applicant, based on new informa- ‘‘(m) DISTRIBUTORS.—No distributor may fied risk and to understand the relative sig- tion, can no longer make the demonstrations take any action, after the date of enactment nificance of such information in the context required under subsection (g), or the Sec- of the Family Smoking Prevention and To- of total health and in relation to all of the retary can no longer make the determina- bacco Control Act, with respect to a tobacco diseases and health-related conditions asso- tions required under subsection (g); product that would reasonably be expected ciated with the use of tobacco products. ‘‘(2) the application failed to include mate- to result in consumers believing that the to- ‘‘(2) COMPARATIVE CLAIMS.— rial information or included any untrue bacco product or its smoke may present a ‘‘(A) IN GENERAL.—The Secretary may re- statement of material fact; lower risk of disease or is less harmful than quire for the approval of an application ‘‘(3) any explicit or implicit representation one or more commercially marketed tobacco under this subsection that a claim com- that the product reduces risk or exposure is products, or presents a reduced exposure to, paring a tobacco product to 1 or more other no longer valid, including if— or does not contain or is free of, a substance commercially marketed tobacco products ‘‘(A) a tobacco product standard is estab- or substances. shall compare the tobacco product to a com- lished pursuant to section 907; ‘‘SEC. 912. JUDICIAL REVIEW. mercially marketed tobacco product that is ‘‘(B) an action is taken that affects the ‘‘(a) RIGHT TO REVIEW.— representative of that type of tobacco prod- risks presented by other commercially mar- ‘‘(1) IN GENERAL.—Not later than 30 days uct on the market (for example the average keted tobacco products that were compared after—

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00081 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5974 CONGRESSIONAL RECORD — SENATE May 20, 2004 ‘‘(A) the promulgation of a regulation chapter shall be construed as limiting or dition to, or more stringent than, require- under section 907 establishing, amending, or minishing the authority of the Federal Trade ments established under this chapter, includ- revoking a tobacco product standard; or Commission to enforce the laws under its ju- ing a law, rule, regulation, or other measure ‘‘(B) a denial of an application for approval risdiction with respect to the advertising, relating to or prohibiting the sale, distribu- under section 910(c), sale, or distribution of tobacco products. tion, possession, exposure to, access to, ad- any person adversely affected by such regu- ‘‘(2) ENFORCEMENT.—Any advertising that vertising and promotion of, or use of tobacco lation or denial may file a petition for judi- violates this chapter or a provision of the products by individuals of any age, informa- cial review of such regulation or denial with regulations referred to in section 102 of the tion reporting to the State, or measures re- the United States Court of Appeals for the Family Smoking Prevention and Tobacco lating to fire safety standards for tobacco District of Columbia or for the circuit in Control Act, is an unfair or deceptive act or products. No provision of this chapter shall which such person resides or has their prin- practice under section 5(a) of the Federal limit or otherwise affect any State, Tribal, cipal place of business. Trade Commission Act (15 U.S.C. 45(a)) and or local taxation of tobacco products. ‘‘(2) REQUIREMENTS.— shall be considered a violation of a rule pro- ‘‘(2) PREEMPTION OF CERTAIN STATE AND ‘‘(A) COPY OF PETITION.—A copy of the peti- mulgated under section 18 of that Act (15 LOCAL REQUIREMENTS.— tion filed under paragraph (1) shall be trans- U.S.C. 57a). ‘‘(A) IN GENERAL.—Except as provided in mitted by the clerk of the court involved to ‘‘(b) COORDINATION.—With respect to the re- paragraph (1) and subparagraph (B), no State the Secretary. quirements of section 4 of the Federal Ciga- or political subdivision of a State may estab- ‘‘(B) RECORD OF PROCEEDINGS.—On receipt rette Labeling and Advertising Act (15 U.S.C. lish or continue in effect with respect to a of a petition under subparagraph (A), the 1333) and section 3 of the Comprehensive tobacco product any requirement which is Secretary shall file in the court in which Smokeless Tobacco Health Education Act of different from, or in addition to, any require- such petition was filed— 1986 (15 U.S.C. 4402)— ment under the provisions of this chapter re- ‘‘(i) the record of the proceedings on which ‘‘(1) the Chairman of the Federal Trade lating to tobacco product standards, pre- the regulation or order was based; and Commission shall coordinate with the Sec- market approval, adulteration, misbranding, ‘‘(ii) a statement of the reasons for the retary concerning the enforcement of such labeling, registration, good manufacturing issuance of such a regulation or order. Act as such enforcement relates to unfair or standards, or reduced risk products. ‘‘(C) DEFINITION OF RECORD.—In this sec- deceptive acts or practices in the advertising ‘‘(B) EXCEPTION.—Subparagraph (A) does tion, the term ‘record’ means— of cigarettes or smokeless tobacco; and not apply to requirements relating to the ‘‘(i) all notices and other matter published ‘‘(2) the Secretary shall consult with the sale, distribution, possession, information in the Federal Register with respect to the Chairman of such Commission in revising reporting to the State, exposure to, access regulation or order reviewed; the label statements and requirements under to, the advertising and promotion of, or use ‘‘(ii) all information submitted to the Sec- such sections. of, tobacco products by individuals of any retary with respect to such regulation or ‘‘SEC. 915. CONGRESSIONAL REVIEW PROVISIONS. age, or relating to fire safety standards for order; ‘‘In accordance with section 801 of title 5, tobacco products. Information disclosed to a ‘‘(iii) proceedings of any panel or advisory United States Code, Congress shall review, State under subparagraph (A) that is exempt committee with respect to such regulation and may disapprove, any rule under this from disclosure under section 554(b)(4) of or order; chapter that is subject to section 801. This title 5, United States Code, shall be treated ‘‘(iv) any hearing held with respect to such section and section 801 do not apply to the as trade secret and confidential information regulation or order; and regulations referred to in section 102 of the by the State. ‘‘(v) any other information identified by Family Smoking Prevention and Tobacco ‘‘(b) RULE OF CONSTRUCTION REGARDING the Secretary, in the administrative pro- Control Act. PRODUCT LIABILITY.—No provision of this ceeding held with respect to such regulation ‘‘SEC. 916. REGULATION REQUIREMENT. chapter relating to a tobacco product shall or order, as being relevant to such regulation ‘‘(a) TESTING, REPORTING, AND DISCLO- be construed to modify or otherwise affect or order. SURE.—Not later than 24 months after the any action or the liability of any person ‘‘(b) STANDARD OF REVIEW.—Upon the filing date of enactment of the Family Smoking under the product liability law of any State. of the petition under subsection (a) for judi- Prevention and Tobacco Control Act, the ‘‘SEC. 918. TOBACCO PRODUCTS SCIENTIFIC AD- cial review of a regulation or order, the Secretary, acting through the Commissioner VISORY COMMITTEE. court shall have jurisdiction to review the of the Food and Drug Administration, shall ‘‘(a) ESTABLISHMENT.—Not later than 1 regulation or order in accordance with chap- promulgate regulations under this Act that year after the date of enactment of the Fam- ter 7 of title 5, United States Code, and to meet the requirements of subsection (b). ily Smoking Prevention and Tobacco Con- grant appropriate relief, including interim ‘‘(b) CONTENTS OF RULES.—The regulations trol Act, the Secretary shall establish a 11- relief, as provided for in such chapter. A reg- promulgated under subsection (a) shall remember advisory committee, to be known as ulation or denial described in subsection (a) quire testing and reporting of tobacco prod- the ‘Tobacco Products Scientific Advisory shall be reviewed in accordance with section uct constituents, ingredients, and additives, Committee’. 706(2)(A) of title 5, United States Code. including smoke constituents, by brand and ‘‘(b) MEMBERSHIP.— ‘‘(c) FINALITY OF JUDGMENT.—The judg- sub-brand that the Secretary determines ‘‘(1) IN GENERAL.— ment of the court affirming or setting aside, should be tested to protect the public health. ‘‘(A) MEMBERS.—The Secretary shall ap- in whole or in part, any regulation or order The regulations may require that tobacco point as members of the Tobacco Products shall be final, subject to review by the Su- product manufacturers, packagers, or im- Scientific Advisory Committee individuals preme Court of the United States upon cer- porters make disclosures relating to the re- who are technically qualified by training and tiorari or certification, as provided in sec- sults of the testing of tar and nicotine experience in the medicine, medical ethics, tion 1254 of title 28, United States Code. through labels or advertising or other appro- science, or technology involving the manu- ‘‘(d) OTHER REMEDIES.—The remedies propriate means, and make disclosures regard- facture, evaluation, or use of tobacco prod- vided for in this section shall be in addition ing the results of the testing of other con- ucts, who are of appropriately diversified to, and not in lieu of, any other remedies stituents, including smoke constituents, in- professional backgrounds. The committee provided by law. gredients, or additives, that the Secretary ‘‘(e) REGULATIONS AND ORDERS MUST RE- shall be composed of— CITE BASIS IN RECORD.—To facilitate judicial determines should be disclosed to the public ‘‘(i) 7 individuals who are physicians, den- review, a regulation or order issued under to protect the public health and will not mis- tists, scientists, or health care professionals section 906, 907, 908, 909, 910, or 916 shall con- lead consumers about the risk of tobacco re- practicing in the area of oncology, tain a statement of the reasons for the lated disease. pulmonology, cardiology, toxicology, phar- issuance of such regulation or order in the ‘‘(c) AUTHORITY.—The Food and Drug Ad- macology, addiction, or any other relevant record of the proceedings held in connection ministration shall have the authority under specialty; with its issuance. this chapter to conduct or to require the ‘‘(ii) 1 individual who is an officer or em- ‘‘SEC. 913. EQUAL TREATMENT OF RETAIL OUT- testing, reporting, or disclosure of tobacco ployee of a State or local government or of LETS. product constituents, including smoke con- the Federal Government; ‘‘The Secretary shall issue regulations to stituents. ‘‘(iii) 1 individual as a representative of the require that retail establishments for which ‘‘SEC. 917. PRESERVATION OF STATE AND LOCAL general public; the predominant business is the sale of to- AUTHORITY. ‘‘(iv) 1 individual as a representative of the bacco products comply with any advertising ‘‘(a) IN GENERAL.— interests in the tobacco manufacturing in- restrictions applicable to retail establish- ‘‘(1) PRESERVATION.—Nothing in this chap- dustry; and ments accessible to individuals under the ter, or rules promulgated under this chapter, ‘‘(v) 1 individual as a representative of the age of 18. shall be construed to limit the authority of interests of the tobacco growers. ‘‘SEC. 914. JURISDICTION OF AND COORDINATION a Federal agency (including the Armed ‘‘(B) NONVOTING MEMBERS.—The members WITH THE FEDERAL TRADE COMMIS- Forces), a State or political subdivision of a of the committee appointed under clauses SION. State, or the government of an Indian tribe (iv) and (v) of subparagraph (A) shall serve as ‘‘(a) JURISDICTION.— to enact, adopt, promulgate, and enforce any consultants to those described in clauses (i) ‘‘(1) IN GENERAL.—Except where expressly law, rule, regulation, or other measure with through (iii) of subparagraph (A) and shall be provided in this chapter, nothing in this respect to tobacco products that is in addi- nonvoting representatives.

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‘‘(2) LIMITATION.—The Secretary may not ‘‘SEC. 920. USER FEE. on June 30 of the preceding fiscal year for appoint to the Advisory Committee any indi- ‘‘(a) ESTABLISHMENT OF QUARTERLY USER which fees are being established; or vidual who is in the regular full-time employ FEE.—The Secretary shall assess a quarterly ‘‘(ii) the total percentage change for the of the Food and Drug Administration or any user fee with respect to every quarter of each previous fiscal year in basic pay under the agency responsible for the enforcement of fiscal year commencing fiscal year 2004, cal- General Schedule in accordance with section this Act. The Secretary may appoint Federal culated in accordance with this section, upon 5332 of title 5, United States Code, as ad- officials as ex officio members. each manufacturer and importer of tobacco justed by any locality-based comparability ‘‘(3) CHAIRPERSON.—The Secretary shall products subject to this chapter. payment pursuant to section 5304 of such designate 1 of the members of the Advisory ‘‘(b) FUNDING OF FDA REGULATION OF TO- title for Federal employees stationed in the Committee to serve as chairperson. BACCO PRODUCTS.—The Secretary shall make District of Columbia. ‘‘(c) DUTIES.—The Tobacco Products Sci- user fees collected pursuant to this section ‘‘(5) TIMING OF USER FEE ASSESSMENT.—The entific Advisory Committee shall provide ad- available to pay, in each fiscal year, for the Secretary shall notify each manufacturer vice, information, and recommendations to costs of the activities of the Food and Drug and importer of tobacco products subject to the Secretary— Administration related to the regulation of this section of the amount of the quarterly ‘‘(1) as provided in this chapter; tobacco products under this chapter. assessment imposed on such manufacturer or ‘‘(2) on the effects of the alteration of the importer under subsection (f) during each ‘‘(c) ASSESSMENT OF USER FEE.— nicotine yields from tobacco products; quarter of each fiscal year. Such notifica- ‘‘(1) AMOUNT OF ASSESSMENT.—Except as ‘‘(3) on whether there is a threshold level tions shall occur not earlier than 3 months provided in paragraph (4), the total user fees below which nicotine yields do not produce prior to the end of the quarter for which such assessed each year pursuant to this section dependence on the tobacco product involved; assessment is made, and payments of all as- shall be sufficient, and shall not exceed what and sessments shall be made not later than 60 is necessary, to pay for the costs of the ac- ‘‘(4) on its review of other safety, depend- days after each such notification. tivities described in subsection (b) for each ence, or health issues relating to tobacco ‘‘(d) DETERMINATION OF USER FEE BY COM- fiscal year. products as requested by the Secretary. PANY MARKET SHARE.— ‘‘(2) ALLOCATION OF ASSESSMENT BY CLASS ‘‘(d) COMPENSATION; SUPPORT; FACA.— ‘‘(1) IN GENERAL.—The user fee to be paid OF TOBACCO PRODUCTS.— ‘‘(1) COMPENSATION AND TRAVEL.—Members by each manufacturer or importer of a given of the Advisory Committee who are not offi- ‘‘(A) IN GENERAL.—Subject to paragraph class of tobacco products shall be determined cers or employees of the United States, while (3), the total user fees assessed each fiscal in each quarter by multiplying— attending conferences or meetings of the year with respect to each class of importers ‘‘(A) such manufacturer’s or importer’s committee or otherwise engaged in its busi- and manufacturers shall be equal to an market share of such class of tobacco prod- ness, shall be entitled to receive compensa- amount that is the applicable percentage of ucts; by tion at rates to be fixed by the Secretary, the total costs of activities of the Food and ‘‘(B) the portion of the user fee amount for which may not exceed the daily equivalent of Drug Administration described in subsection the current quarter to be assessed on manu- the rate in effect for level 4 of the Senior Ex- (b). facturers and importers of such class of to- ecutive Schedule under section 5382 of title 5, ‘‘(B) APPLICABLE PERCENTAGE.—For pur- bacco products as determined under sub- United States Code, for each day (including poses of subparagraph (A) the applicable per- section (e). travel time) they are so engaged; and while centage for a fiscal year shall be the fol- ‘‘(2) NO FEE IN EXCESS OF MARKET SHARE.— so serving away from their homes or regular lowing: No manufacturer or importer of tobacco places of business each member may be al- ‘‘(i) 92.07 percent shall be assessed on man- products shall be required to pay a user fee lowed travel expenses, including per diem in ufacturers and importers of cigarettes; in excess of the market share of such manu- lieu of subsistence, as authorized by section ‘‘(ii) 0.05 percent shall be assessed on man- facturer or importer. 5703 of title 5, United States Code, for per- ufacturers and importers of little cigars; ‘‘(e) DETERMINATION OF VOLUME OF DOMES- sons in the Government service employed ‘‘(iii) 7.15 percent shall be assessed on man- TIC SALES.— intermittently. ufacturers and importers of cigars other ‘‘(1) IN GENERAL.—The calculation of gross than little cigars; ‘‘(2) ADMINISTRATIVE SUPPORT.—The Sec- domestic volume of a class of tobacco prod- retary shall furnish the Advisory Committee ‘‘(iv) 0.43 percent shall be assessed on man- uct by a manufacturer or importer, and by clerical and other assistance. ufacturers and importers of snuff; all manufacturers and importers as a group, ‘‘(v) 0.10 percent shall be assessed on manu- ‘‘(3) NONAPPLICATION OF FACA.—Section 14 shall be made by the Secretary using infor- of the Federal Advisory Committee Act (5 facturers and importers of chewing tobacco; mation provided by manufacturers and im- U.S.C. ‘‘(vi) 0.06 percent shall be assessed on man- porters pursuant to subsection (f), as well as App.) does not apply to the Advisory Com- ufacturers and importers of pipe tobacco; any other relevant information provided to mittee. and or obtained by the Secretary. ‘‘(e) PROCEEDINGS OF ADVISORY PANELS AND ‘‘(vii) 0.14 percent shall be assessed on ‘‘(2) MEASUREMENT.—For purposes of the COMMITTEES.—The Advisory Committee shall manufacturers and importers of roll-your- calculations under this subsection and the make and maintain a transcript of any pro- own tobacco. information provided under subsection (f) by ceeding of the panel or committee. Each ‘‘(3) DISTRIBUTION OF FEE SHARES OF MANU- the Secretary, gross domestic volume shall such panel and committee shall delete from FACTURERS AND IMPORTERS EXEMPT FROM be measured by— any transcript made under this subsection USER FEE.—Where a class of tobacco products ‘‘(A) in the case of cigarettes, the number information which is exempt from disclosure is not subject to a user fee under this sec- of cigarettes sold; under section 552(b) of title 5, United States tion, the portion of the user fee assigned to ‘‘(B) in the case of little cigars, the number Code. such class under subsection (d)(2) shall be al- of little cigars sold; ‘‘SEC. 919. DRUG PRODUCTS USED TO TREAT TO- located by the Secretary on a pro rata basis ‘‘(C) in the case of large cigars, the number BACCO DEPENDENCE. among the classes of tobacco products that of cigars weighing more than 3 pounds per ‘‘The Secretary shall consider— are subject to a user fee under this section. thousand sold; and ‘‘(1) at the request of the applicant, desig- Such pro rata allocation for each class of to- ‘‘(D) in the case of other classes of tobacco nating nicotine replacement products as fast bacco products that are subject to a user fee products, in terms of number of pounds, or track research and approval products within under this section shall be the quotient of— fraction thereof, of these products sold. the meaning of section 506; ‘‘(A) the sum of the percentages assigned ‘‘(f) MEASUREMENT OF GROSS DOMESTIC ‘‘(2) direct the Commissioner to consider to all classes of tobacco products subject to VOLUME.— approving the extended use of nicotine re- this section; divided by ‘‘(1) IN GENERAL.—Each manufacturer and placement products (such as nicotine patch- ‘‘(B) the percentage assigned to such class importer of tobacco products shall submit to es, nicotine gum, and nicotine lozenges) for under paragraph (2). the Secretary a certified copy of each of the the treatment of tobacco dependence; ‘‘(4) ANNUAL LIMIT ON ASSESSMENT.—The returns or forms described by this paragraph ‘‘(3) review and consider the evidence for total assessment under this section— that are required to be filed with a Govern- additional indications for nicotine replace- ‘‘(A) for fiscal year 2004 shall be $85,000,000; ment agency on the same date that those re- ment products, such as for craving relief or ‘‘(B) for fiscal year 2005 shall be $175,000,000; turns or forms are filed, or required to be relapse prevention; and ‘‘(C) for fiscal year 2006 shall be filed, with such agency. The returns and ‘‘(4) consider— $$300,000,000; and forms described by this paragraph are those ‘‘(A) relieving companies of premarket bur- ‘‘(D) for each subsequent fiscal year, shall returns and forms related to the release of dens under section 505 if the requirement is not exceed the limit on the assessment im- tobacco products into domestic commerce, redundant considering other nicotine re- posed during the previous fiscal year, as ad- as defined by section 5702(k) of the Internal placement therapies already on the market; justed by the Secretary (after notice, pub- Revenue Code of 1986, and the repayment of and lished in the Federal Register) to reflect the the taxes imposed under chapter 52 of such ‘‘(B) time and extent applications for nico- greater of— Code (ATF Form 500.24 and United States tine replacement therapies that have been ‘‘(i) the total percentage change that oc- Customs Form 7501 under currently applica- approved by a regulatory body in a foreign curred in the Consumer Price Index for all ble regulations). country and have marketing experience in urban consumers (all items; United States ‘‘(2) PENALTIES.—Any person that know- such country. city average) for the 12-month period ending ingly fails to provide information required

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00083 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5976 CONGRESSIONAL RECORD — SENATE May 20, 2004 under this subsection or that provides false SEC. 103. CONFORMING AND OTHER AMEND- ‘‘(ee) The failure of a manufacturer or disinformation under this subsection shall be MENTS TO GENERAL PROVISIONS. tributor to notify the Attorney General of subject to the penalties described in section (a) AMENDMENT OF FEDERAL FOOD, DRUG, their knowledge of tobacco products used in 1003 of title 18, United States Code. In addi- AND COSMETIC ACT.—Except as otherwise ex- illicit trade.’’. tion, such person may be subject to a civil pressly provided, whenever in this section an (c) SECTION 303.—Section 303 (21 U.S.C. penalty in an amount not to exceed 2 percent amendment is expressed in terms of an 333(f)) is amended in subsection (f)— of the value of the kind of tobacco products amendment to, or repeal of, a section or (1) by striking the subsection heading and manufactured or imported by such person other provision, the reference is to a section inserting the following: during the applicable quarter, as determined or other provision of the Federal Food, Drug, ‘‘(f) CIVIL PENALTIES; NO-TOBACCO-SALE by the Secretary. and Cosmetic Act (21 U.S.C. 301 et seq.). ORDERS.—’’; ‘‘(h) EFFECTIVE DATE.—The user fees pre- (b) SECTION 301.—Section 301 (21 U.S.C. 331) (2) in paragraph (1)(A), by inserting ‘‘or to- scribed by this section shall be assessed in is amended— bacco products’’ after ‘‘devices’’; fiscal year 2004, based on domestic sales of (1) in subsection (a), by inserting ‘‘tobacco (3) by redesignating paragraphs (3), (4), and tobacco products during fiscal year 2003 and product,’’ after ‘‘device,’’; (5) as paragraphs (4), (5), and (6), and insert- shall be assessed in each fiscal year there- (2) in subsection (b), by inserting ‘‘tobacco ing after paragraph (2) the following: after.’’. product,’’ after ‘‘device,’’; ‘‘(3) If the Secretary finds that a person SEC. 102. INTERIM FINAL RULE. (3) in subsection (c), by inserting ‘‘tobacco has committed repeated violations of restric- (a) CIGARETTES AND SMOKELESS TOBACCO.— product,’’ after ‘‘device,’’; tions promulgated under section 906(d) at a (1) IN GENERAL.—Not later than 30 days (4) in subsection (e), by striking ‘‘515(f), or particular retail outlet then the Secretary after the date of enactment of this Act, the 519’’ and inserting ‘‘515(f), 519, or 909’’; may impose a no-tobacco-sale order on that Secretary of Health and Human Services (5) in subsection (g), by inserting ‘‘tobacco person prohibiting the sale of tobacco prod- shall publish in the Federal Register an in- product,’’ after ‘‘device,’’; ucts in that outlet. A no-tobacco-sale order terim final rule regarding cigarettes and (6) in subsection (h), by inserting ‘‘tobacco may be imposed with a civil penalty under smokeless tobacco, which is hereby deemed product,’’ after ‘‘device,’’; paragraph (1).’’; to be in compliance with the Administrative (7) in subsection (j), by striking ‘‘708, or (4) in paragraph (4) as so redesignated— Procedures Act and other applicable law. 721’’ and inserting ‘‘708, 721, 904, 905, 906, 907, (A) in subparagraph (A)— (2) CONTENTS OF RULE.—Except as provided 908, 909, or section 921(b)’’; (i) by striking ‘‘assessed’’ the first time it in this subsection, the interim final rule pub- (8) in subsection (k), by inserting ‘‘tobacco appears and inserting ‘‘assessed, or a no-to- lished under paragraph (1), shall be identical product,’’ after ‘‘device,’’; bacco-sale order may be imposed,’’; and in its provisions to part 897 of the regula- (9) by striking subsection (p) and inserting (ii) by striking ‘‘penalty’’ and inserting tions promulgated by the Secretary of the following: ‘‘penalty, or upon whom a no-tobacco-order Health and Human Services in the August 28, is to be imposed,’’; 1996, issue of the Federal Register (61 Fed. ‘‘(p) The failure to register in accordance (B) in subparagraph (B)— Reg., 44615–44618). Such rule shall— with section 510 or 905, the failure to provide (i) by inserting after ‘‘penalty,’’ the fol- (A) provide for the designation of jurisdic- any information required by section 510(j), lowing: ‘‘or the period to be covered by a no- tional authority that is in accordance with 510(k), 905(i), or 905(j), or the failure to pro- tobacco-sale order,’’; and this subsection; vide a notice required by section 510(j)(2) or (ii) by adding at the end the following: ‘‘A (B) strike Subpart C—Labeling and section 905(i)(2).’’; no-tobacco-sale order permanently prohib- 897.32(c); and (10) by striking subsection (q)(1) and in- iting an individual retail outlet from selling (C) become effective not later than 1 year serting the following: tobacco products shall include provisions after the date of enactment of this Act. ‘‘(q)(1) The failure or refusal— that allow the outlet, after a specified period (3) AMENDMENTS TO RULE.—Prior to making ‘‘(A) to comply with any requirement pre- of time, to request that the Secretary com- amendments to the rule published under scribed under section 518, 520(g), 903(b)(8), or promise, modify, or terminate the order.’’; paragraph (1), the Secretary shall promul- 908, or condition prescribed under section and gate a proposed rule in accordance with the 903(b)(6)(B)(ii)(II); (C) by adding at the end, the following: Administrative Procedures Act. ‘‘(B) to furnish any notification or other ‘‘(D) The Secretary may compromise, mod- (4) RULE OF CONSTRUCTION.—Except as pro- material or information required by or under ify, or terminate, with or without condi- vided in paragraph (3), nothing in this sec- section 519, 520(g), 904, 909, or section 921; or tions, any no-tobacco-sale order.’’; tion shall be construed to limit the author- ‘‘(C) to comply with a requirement under (5) in paragraph (5) as so redesignated— ity of the Secretary to amend, in accordance section 522 or 913.’’; (A) by striking ‘‘(3)(A)’’ as redesignated, with the Administrative Procedures Act, the (11) in subsection (q)(2), by striking ‘‘de- and inserting ‘‘(4)(A)’’; regulation promulgated pursuant to this sec- vice,’’ and inserting ‘‘device or tobacco prod- (B) by inserting ‘‘or the imposition of a notion. uct,’’; tobacco-sale order’’ after ‘‘penalty’’ the first (b) LIMITATION ON ADVISORY OPINIONS.—As (12) in subsection (r), by inserting ‘‘or to- of the date of enactment of this Act, the fol- bacco product’’ after ‘‘device’’ each time 2 places it appears; and lowing documents issued by the Food and that it appears; and (C) by striking ‘‘issued.’’ and inserting Drug Administration shall not constitute ad- (13) by adding at the end the following: ‘‘issued, or on which the no-tobacco-sale visory opinions under section 10.85(d)(1) of ‘‘(aa) The sale of tobacco products in viola- order was imposed, as the case may be.’’; and title 21, Code of Federal Regulations, except tion of a no-tobacco-sale order issued under (6) in paragraph (6), as so redesignated, by as they apply to tobacco products, and shall section 303(f). striking ‘‘paragraph (4)’’ each place it ap- not be cited by the Secretary of Health and ‘‘(bb) The introduction or delivery for in- pears and inserting ‘‘paragraph (5)’’. Human Services or the Food and Drug Ad- troduction into interstate commerce of a to- (d) SECTION 304.—Section 304 (21 U.S.C. 334) ministration as binding precedent: bacco product in violation of section 911. is amended— (1) The preamble to the proposed rule in ‘‘(cc)(1) Forging, counterfeiting, simu- (1) in subsection (a)(2)— the document entitled ‘‘Regulations Re- lating, or falsely representing, or without (A) by striking ‘‘and’’ before ‘‘(D)’’; and stricting the Sale and Distribution of Ciga- proper authority using any mark, stamp (in- (B) by striking ‘‘device.’’ and inserting the rettes and Smokeless Tobacco Products to cluding tax stamp), tag, label, or other iden- following: ‘‘, (E) Any adulterated or mis- Protect Children and Adolescents’’ (60 Fed. tification device upon any tobacco product branded tobacco product.’’; Reg. 41314–41372 (August 11, 1995)). or container or labeling thereof so as to (2) in subsection (d)(1), by inserting ‘‘to- (2) The document entitled ‘‘Nicotine in render such tobacco product a counterfeit tobacco product,’’ after ‘‘device,’’; Cigarettes and Smokeless Tobacco Products bacco product. (3) in subsection (g)(1), by inserting ‘‘or to- is a Drug and These Products Are Nicotine ‘‘(2) Making, selling, disposing of, or keep- bacco product’’ after ‘‘device’’ each place it Delivery Devices Under the Federal Food, ing in possession, control, or custody, or con- appears; and Drug, and Cosmetic Act’’ (60 Fed. Reg. 41453– cealing any punch, die, plate, stone, or other (4) in subsection (g)(2)(A), by inserting ‘‘or 41787 (August 11, 1995)). item that is designed to print, imprint, or re- tobacco product’’ after ‘‘device’’ each place (3) The preamble to the final rule in the produce the trademark, trade name, or other it appears. document entitled ‘‘Regulations Restricting identifying mark, imprint, or device of an- (e) SECTION 702.—Section 702(a) (21 U.S.C. the Sale and Distribution of Cigarettes and other or any likeness of any of the foregoing 372(a)) is amended— Smokeless Tobacco to Protect Children and upon any tobacco product or container or la- (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and Adolescents’’ (61 Fed. Reg. 44396–44615 (Au- beling thereof so as to render such tobacco (2) by adding at the end thereof the fol- gust 28, 1996)). product a counterfeit tobacco product. lowing: (4) The document entitled ‘‘Nicotine in ‘‘(3) The doing of any act that causes a to- ‘‘(2) For a tobacco product, to the extent Cigarettes and Smokeless Tobacco is a Drug bacco product to be a counterfeit tobacco feasible, the Secretary shall contract with and These Products are Nicotine Delivery product, or the sale or dispensing, or the the States in accordance with paragraph (1) Devices Under the Federal Food, Drug, and holding for sale or dispensing, of a counter- to carry out inspections of retailers in con- Cosmetic Act; Jurisdictional Determina- feit tobacco product. nection with the enforcement of this Act.’’. tion’’ (61 Fed. Reg. 44619–45318 (August 28, ‘‘(dd) The charitable distribution of to- (f) SECTION 703.—Section 703 (21 U.S.C. 373) 1996)). bacco products. is amended—

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00084 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5977 (1) by inserting ‘‘tobacco product,’’ after ticular retail outlet, that outlet will not cept as provided in this paragraph, the provi- ‘‘device,’’ each place it appears; and considered to have been the site of repeated sions of this subsection shall apply to such (2) by inserting ‘‘tobacco products,’’ after violations when the next violation occurs; packages. ‘‘devices,’’ each place it appears. and ‘‘(3) DOES NOT APPLY TO FOREIGN DISTRIBU- (g) SECTION 704.—Section 704 (21 U.S.C. 374) (5) providing that good faith reliance on TION.—The provisions of this subsection do is amended— the presentation of a false government not apply to a tobacco product manufacturer (1) in subsection (a)(1)(A), by inserting ‘‘to- issued photographic identification that con- or distributor of cigarettes which does not bacco products,’’ after ‘‘devices,’’ each place tains the bearer’s date of birth does not con- manufacture, package, or import cigarettes it appears; stitute a violation of any minimum age refor sale or distribution within the United (2) in subsection (a)(1)(B), by inserting ‘‘or quirement for the sale of tobacco products if States. tobacco product’’ after ‘‘restricted devices’’ the retailer has taken effective steps to pre- each place it appears; and ‘‘(4) APPLICABILITY TO RETAILERS.—A re- vent such violations, including— tailer of cigarettes shall not be in violation (3) in subsection (b), by inserting ‘‘tobacco (A) adopting and enforcing a written policy of this subsection for packaging that is sup- product,’’ after ‘‘device,’’. against sales to minors; plied to the retailer by a tobacco product (h) SECTION 705.—Section 705(b) (21 U.S.C. (B) informing its employees of all applica- manufacturer, importer, or distributor and is 375(b)) is amended by inserting ‘‘tobacco ble laws; not altered by the retailer in a way that is products,’’ after ‘‘devices,’’. (C) establishing disciplinary sanctions for (i) SECTION 709.—Section 709 (21 U.S.C. 379) employee noncompliance; and material to the requirements of this sub- is amended by inserting ‘‘or tobacco prod- (D) requiring its employees to verify age section except that this paragraph shall not uct’’ after ‘‘device’’. relieve a retailer of liability if the retailer (j) SECTION 801.—Section 801 (21 U.S.C. 381) by way of photographic identification or electronic scanning device. sells or distributes tobacco products that are is amended— not labeled in accordance with this sub- (1) in subsection (a)— TITLE II—TOBACCO PRODUCT WARNINGS; section. (A) by inserting ‘‘tobacco products,’’ after CONSTITUENT AND SMOKE CON- ‘‘devices,’’ the first time it appears; STITUENT DISCLOSURE ‘‘(b) ADVERTISING REQUIREMENTS.— (B) by inserting ‘‘or section 905(j)’’ after SEC. 201. CIGARETTE LABEL AND ADVERTISING ‘‘(1) IN GENERAL.—It shall be unlawful for ‘‘section 510’’; and WARNINGS. any tobacco product manufacturer, im- (C) by striking ‘‘drugs or devices’’ each Section 4 of the Federal Cigarette Labeling porter, distributor, or retailer of cigarettes time it appears and inserting ‘‘drugs, de- and Advertising Act (15 U.S.C. 1333) is to advertise or cause to be advertised within vices, or tobacco products’’; amended to read as follows: the United States any cigarette unless its (2) in subsection (e)(1), by inserting ‘‘to- ‘‘SEC. 4. LABELING. advertising bears, in accordance with the re- bacco product,’’ after ‘‘device,’’; and ‘‘(a) LABEL REQUIREMENTS.— quirements of this section, one of the labels (3) by adding at the end the following: specified in subsection (a) of this section. ‘‘(p)(1) Not later than 2 years after the date ‘‘(1) IN GENERAL.—It shall be unlawful for ‘‘(2) TYPOGRAPHY, ETC.—Each label state- of enactment of the Family Smoking Pre- any person to manufacture, package, sell, ment required by subsection (a) of this sec- vention and Tobacco Control Act, and annu- offer to sell, distribute, or import for sale or ally thereafter, the Secretary shall submit distribution within the United States any tion in cigarette advertising shall comply to the Committee on Health, Education, cigarettes the package of which fails to bear, with the standards set forth in this para- Labor, and Pensions of the Senate and the in accordance with the requirements of this graph. For press and poster advertisements, Committee on Energy and Commerce of the section, one of the following labels: each such statement and (where applicable) House of Representatives, a report regard- ‘WARNING: Cigarettes are addictive’. any required statement relating to tar, nico- ing— ‘WARNING: Tobacco smoke can harm your tine, or other constituent (including a smoke ‘‘(A) the nature, extent, and destination of children’. constituent) yield shall comprise at least 20 United States tobacco product exports that ‘WARNING: Cigarettes cause fatal lung dis- percent of the area of the advertisement and do not conform to tobacco product standards ease’. shall appear in a conspicuous and prominent established pursuant to this Act; ‘WARNING: Cigarettes cause cancer’. format and location at the top of each adver- ‘‘(B) the public health implications of such ‘WARNING: Cigarettes cause strokes and tisement within the trim area. The Sec- exports, including any evidence of a negative heart disease’. retary may revise the required type sizes in public health impact; and ‘WARNING: Smoking during pregnancy can such area in such manner as the Secretary ‘‘(C) recommendations or assessments of harm your baby’. determines appropriate. The word ‘WARN- policy alternatives available to Congress and ‘WARNING: Smoking can kill you’. ING’ shall appear in capital letters, and each the Executive Branch to reduce any negative ‘WARNING: Tobacco smoke causes fatal lung label statement shall appear in conspicuous public health impact caused by such exports. disease in non-smokers’. and legible type. The text of the label state- ‘‘(2) The Secretary is authorized to estab- ‘WARNING: Quitting smoking now greatly ment shall be black if the background is lish appropriate information disclosure re- reduces serious risks to your health’. quirements to carry out this subsection.’’. white and white if the background is black, (k) SECTION 1003.—Section 1003(d)(2)(C) (as ‘‘(2) PLACEMENT; TYPOGRAPHY; ETC.— under the plan submitted under paragraph redesignated by section 101(a)) is amended— ‘‘(A) IN GENERAL.—Each label statement re- (4) of this subsection. The label statements (1) by striking ‘‘and’’ after ‘‘cosmetics,’’; quired by paragraph (1) shall be located in shall be enclosed by a rectangular border and the upper portion of the front and rear pan- that is the same color as the letters of the (2) inserting a comma and ‘‘and tobacco els of the package, directly on the package statements and that is the width of the first products’’ after ‘‘devices’’. underneath the cellophane or other clear downstroke of the capital ‘W’ of the word (l) EFFECTIVE DATE FOR NO-TOBACCO-SALE wrapping. Except as provided in subpara- ‘WARNING’ in the label statements. The ORDER AMENDMENTS.—The amendments graph (B), each label statement shall com- text of such label statements shall be in a made by subsection (c), other than the prise at least the top 30 percent of the front typeface pro rata to the following require- amendment made by paragraph (2) of such and rear panels of the package. The word ments: 45-point type for a whole-page subsection, shall take effect upon the ‘WARNING’ shall appear in capital letters broadsheet newspaper advertisement; 39- issuance of guidance by the Secretary of and all text shall be in conspicuous and leg- point type for a half-page broadsheet news- Health and Human Services— ible 17-point type, unless the text of the label paper advertisement; 39-point type for a (1) defining the term ‘‘repeated violation’’, statement would occupy more than 70 per- whole-page tabloid newspaper advertise- as used in section 303(f) of the Federal Food, cent of such area, in which case the text may Drug, and Cosmetic Act (21 U.S.C. 333(f)) as be in a smaller conspicuous and legible type ment; 27-point type for a half-page tabloid amended by subsection (c), by identifying size, provided that at least 60 percent of such newspaper advertisement; 31.5-point type for the number of violations of particular re- area is occupied by required text. The text a double page spread magazine or whole-page quirements over a specified period of time at shall be black on a white background, or magazine advertisement; 22.5-point type for a particular retail outlet that constitute a white on a black background, in a manner a 28 centimeter by 3 column advertisement; repeated violation; that contrasts, by typography, layout, or and 15-point type for a 20 centimeter by 2 (2) providing for timely and effective no- color, with all other printed material on the column advertisement. The label statements tice to the retailer of each alleged violation package, in an alternating fashion under the shall be in English, except that in the case at a particular retail outlet and an expedited plan submitted under subsection (b)(4). of— procedure for the administrative appeal of an ‘‘(B) FLIP-TOP BOXES.—For any cigarette ‘‘(A) an advertisement that appears in a alleged violation; brand package manufactured or distributed newspaper, magazine, periodical, or other (3) providing that a person may not be before January 1, 2000, which employs a flip- publication that is not in English, the state- charged with a violation at a particular re- top style (if such packaging was used for ments shall appear in the predominant lan- tail outlet unless the Secretary has provided that brand in commerce prior to June 21, guage of the publication; and notice to the retailer of all previous viola- 1997), the label statement required by para- ‘‘(B) in the case of any other advertisement tions at that outlet; graph (1) shall be located on the flip-top area that is not in English, the statements shall (4) establishing a period of time during of the package, even if such area is less than appear in the same language as that prin- which, if there are no violations by a par- 25 percent of the area of the front panel. Ex- cipally used in the advertisement.

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‘‘(3) MATCHBOOKS.—Notwithstanding para- SEC. 203. STATE REGULATION OF CIGARETTE AD- ‘‘(2) Each label statement required by sub- graph (2), for matchbooks (defined as con- VERTISING AND PROMOTION. section (a) in smokeless tobacco advertising taining not more than 20 matches) custom- Section 5 of the Federal Cigarette Labeling shall comply with the standards set forth in arily given away with the purchase of to- and Advertising Act (15 U.S.C. 1334) is this paragraph. For press and poster adver- bacco products, each label statement re- amended by adding a the end the following: tisements, each such statement and (where quired by subsection (a) may be printed on ‘‘(c) EXCEPTION.—Notwithstanding sub- applicable) any required statement relating the inside cover of the matchbook. section (b), a State or locality may enact to tar, nicotine, or other constituent yield ‘‘(4) ADJUSTMENT BY SECRETARY.—The Sec- statutes and promulgate regulations, based shall— retary may, through a rulemaking under sec- on smoking and health, that take effect after ‘‘(A) comprise at least 20 percent of the tion 553 of title 5, United States Code, adjust the effective date of the Family Smoking area of the advertisement, and the warning the format and type sizes for the label state- Prevention and Tobacco Control Act, impos- area shall be delineated by a dividing line of ments required by this section or the text, ing specific bans or restrictions on the time, contrasting color from the advertisement; format, and type sizes of any required tar, place, and manner, but not content, of the and nicotine yield, or other constituent (includ- advertising or promotion of any cigarettes.’’. ‘‘(B) the word ‘WARNING’ shall appear in ing smoke constituent) disclosures, or to es- SEC. 204. SMOKELESS TOBACCO LABELS AND AD- capital letters and each label statement tablish the text, format, and type sizes for VERTISING WARNINGS. shall appear in conspicuous and legible type. any other disclosures required under the Section 3 of the Comprehensive Smokeless The text of the label statement shall be Federal Food, Drug, and Cosmetic Act (21 Tobacco Health Education Act of 1986 (15 black on a white background, or white on a U.S.C. 301 et. seq.). The text of any such label U.S.C. 4402) is amended to read as follows: black background, in an alternating fashion statements or disclosures shall be required ‘‘SEC. 3. SMOKELESS TOBACCO WARNING. under the plan submitted under paragraph to appear only within the 20 percent area of ‘‘(a) GENERAL RULE.— (3). cigarette advertisements provided by para- ‘‘(1) It shall be unlawful for any person to ‘‘(3)(A) The label statements specified in graph (2) of this subsection. The Secretary manufacture, package, sell, offer to sell, dis- subsection (a)(1) shall be randomly displayed shall promulgate regulations which provide tribute, or import for sale or distribution in each 12-month period, in as equal a num- for adjustments in the format and type sizes within the United States any smokeless tober of times as is possible on each brand of of any text required to appear in such area bacco product unless the product package the product and be randomly distributed in to ensure that the total text required to ap- bears, in accordance with the requirements all areas of the United States in which the pear by law will fit within such area. of this Act, one of the following labels: product is marketed in accordance with a ‘‘(5) MARKETING REQUIREMENTS.— ‘WARNING: This product can cause mouth plan submitted by the tobacco product man- ‘‘(A) The label statements specified in sub- cancer’. ufacturer, importer, distributor, or retailer section (a)(1) shall be randomly displayed in ‘WARNING: This product can cause gum dis- and approved by the Secretary. each 12-month period, in as equal a number ease and tooth loss’. ‘‘(B) The label statements specified in sub- of times as is possible on each brand of the ‘WARNING: This product is not a safe alter- section (a)(1) shall be rotated quarterly in al- product and be randomly distributed in all native to cigarettes’. ternating sequence in advertisements for areas of the United States in which the prod- ‘WARNING: Smokeless tobacco is addictive’. each brand of smokeless tobacco product in uct is marketed in accordance with a plan ‘‘(2) Each label statement required by para- accordance with a plan submitted by the to- submitted by the tobacco product manufac- graph (1) shall be— bacco product manufacturer, importer, dis- turer, importer, distributor, or retailer and ‘‘(A) located on the 2 principal display pan- tributor, or retailer to, and approved by, the approved by the Secretary. els of the package, and each label statement Secretary. ‘‘(B) The label statements specified in sub- shall comprise at least 30 percent of each ‘‘(C) The Secretary shall review each plan section (a)(1) shall be rotated quarterly in al- such display panel; and submitted under subparagraph (B) and ap- ternating sequence in advertisements for ‘‘(B) in 17-point conspicuous and legible prove it if the plan— each brand of cigarettes in accordance with type and in black text on a white back- ‘‘(i) will provide for the equal distribution a plan submitted by the tobacco product ground, or white text on a black background, and display on packaging and the rotation manufacturer, importer, distributor, or re- in a manner that contrasts by typography, required in advertising under this sub- tailer to, and approved by, the Secretary. layout, or color, with all other printed mate- section; and ‘‘(C) The Secretary shall review each plan rial on the package, in an alternating fash- ‘‘(ii) assures that all of the labels required submitted under subparagraph (B) and ap- ion under the plan submitted under sub- under this section will be displayed by the prove it if the plan— section (b)(3), except that if the text of a tobacco product manufacturer, importer, ‘‘(i) will provide for the equal distribution label statement would occupy more than 70 distributor, or retailer at the same time. and display on packaging and the rotation percent of the area specified by subparagraph ‘‘(D) This paragraph applies to a retailer required in advertising under this sub- (A), such text may appear in a smaller type only if that retailer is responsible for or di- section; and size, so long as at least 60 percent of such rects the label statements under this sec- ‘‘(ii) assures that all of the labels required warning area is occupied by the label state- tion, unless the retailer displays in a loca- under this section will be displayed by the ment. tion open to the public, an advertisement tobacco product manufacturer, importer, ‘‘(3) The label statements required by para- that is not labeled in accordance with the re- distributor, or retailer at the same time. graph (1) shall be introduced by each tobacco quirements of this subsection. ‘‘(6) APPLICABILITY TO RETAILERS.—This product manufacturer, packager, importer, ‘‘(c) TELEVISION AND RADIO ADVERTISING.— subsection applies to a retailer only if that distributor, or retailer of smokeless tobacco It is unlawful to advertise smokeless tobacco retailer is responsible for or directs the label products concurrently into the distribution on any medium of electronic communica- statements required under this section ex- chain of such products. tions subject to the jurisdiction of the Fed- cept that this paragraph shall not relieve a ‘‘(4) The provisions of this subsection do eral Communications Commission.’’. retailer of liability if the retailer displays, in not apply to a tobacco product manufacturer a location open to the public, an advertise- SEC. 205. AUTHORITY TO REVISE SMOKELESS TO- or distributor of any smokeless tobacco ment that is not labeled in accordance with BACCO PRODUCT WARNING LABEL product that does not manufacture, package, the requirements of this subsection.’’. STATEMENTS. or import smokeless tobacco products for SEC. 202. AUTHORITY TO REVISE CIGARETTE sale or distribution within the United Section 3 of the Comprehensive Smokeless WARNING LABEL STATEMENTS. States. Tobacco Health Education Act of 1986 (15 Section 4 of the Federal Cigarette Labeling ‘‘(5) A retailer of smokeless tobacco prod- U.S.C. 4402), as amended by section 203, is and Advertising Act (15 U.S.C. 1333), as ucts shall not be in violation of this sub- further amended by adding at the end the amended by section 201, is further amended following: by adding at the end the following: section for packaging that is supplied to the ‘‘(d) AUTHORITY TO REVISE WARNING LABEL ‘‘(c) CHANGE IN REQUIRED STATEMENTS.— retailer by a tobacco products manufacturer, The Secretary may, by a rulemaking con- importer, or distributor and that is not al- STATEMENTS.—The Secretary may, by a rule- ducted under section 553 of title 5, United tered by the retailer unless the retailer of- making conducted under section 553 of title States Code, adjust the format, type size, fers for sale, sells, or distributes a smokeless 5, United States Code, adjust the format, and text of any of the label requirements, re- tobacco product that is not labeled in ac- type size, and text of any of the label require color graphics to accompany the text, cordance with this subsection. quirements, require color graphics to accom- increase the required label area from 30 per- ‘‘(b) REQUIRED LABELS.— pany the text, increase the required label cent up to 50 percent of the front and rear ‘‘(1) It shall be unlawful for any tobacco area from 30 percent up to 50 percent of the panels of the package, or establish the for- product manufacturer, packager, importer, front and rear panels of the package, or es- mat, type size, and text of any other disclo- distributor, or retailer of smokeless tobacco tablish the format, type size, and text of any sures required under the Federal Food, Drug, products to advertise or cause to be adver- other disclosures required under the Federal and Cosmetic Act (21 U.S.C. 301 et seq.), if tised within the United States any smoke- Food, Drug, and Cosmetic Act (21 U.S.C. 301 the Secretary finds that such a change would less tobacco product unless its advertising et seq.), if the Secretary finds that such a promote greater public understanding of the bears, in accordance with the requirements change would promote greater public under- risks associated with the use of tobacco of this section, one of the labels specified in standing of the risks associated with the use products.’’. subsection (a). of smokeless tobacco products.’’.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00086 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5979

SEC. 206. TAR, NICOTINE, AND OTHER SMOKE ‘‘(2) INSPECTION.—In promulgating the reg- Comptroller General of the United States CONSTITUENT DISCLOSURE TO THE ulations described in paragraph (1), the Sec- shall submit to the Committee on Health, PUBLIC. retary shall consider which records are need- Education, Labor, and Pensions of the Sen- Section 4(a) of the Federal Cigarette La- ed for inspection to monitor the movement ate and the Committee on Energy and Com- beling and Advertising Act (15 U.S.C. 1333 of tobacco products from the point of manu- merce of the House of Representatives a re- (a)), as amended by section 201, is further facture through distribution to retail outlets port on the study described in subsection (a). amended by adding at the end the following: to assist in investigating potential illicit ‘‘(4)(A) The Secretary shall, by a rule- Mr. KENNEDY. Mr. President, today, trade, smuggling or counterfeiting of to- making conducted under section 553 of title Senator DEWINE and I are introducing bacco products. 5, United States Code, determine (in the Sec- ‘‘(3) CODES.—The Secretary may require legislation to give the Food and Drug retary’s sole discretion) whether cigarette codes on the labels of tobacco products or Administration broad authority to reg- and other tobacco product manufacturers other designs or devices for the purpose of ulate tobacco products for the protec- shall be required to include in the area of tracking or tracing the tobacco product tion of the public health. We cannot in each cigarette advertisement specified by through the distribution system. subsection (b) of this section, or on the pack- good conscience allow the Federal ‘‘(4) SIZE OF BUSINESS.—The Secretary shall age label, or both, the tar and nicotine yields agency most responsible for protecting take into account the size of a business in of the advertised or packaged brand. Any the public health to remain powerless promulgating regulations under this section. such disclosure shall be in accordance with to deal with the enormous risks of to- ‘‘(5) RECORDKEEPING BY RETAILERS.—The the methodology established under such reg- Secretary shall not require any retailer to bacco, the most deadly of all consumer ulations, shall conform to the type size re- maintain records relating to individual pur- products. quirements of subsection (b) of this section, chasers of tobacco products for personal con- This legislation is a fair and balanced and shall appear within the area specified in sumption. subsection (b) of this section. approach to FDA regulation. It creates ‘‘(c) RECORDS INSPECTION.—If the Secretary ‘‘(B) Any differences between the require- a new section in FDA jurisdiction for has a reasonable belief that a tobacco prod- ments established by the Secretary under the regulation of tobacco products, uct is part of an illicit trade or smuggling or subparagraph (A) and tar and nicotine yield with standards that allow for consider- is a counterfeit product, each person who reporting requirements established by the manufactures, processes, transports, distrib- ation of the unique issues raised by to- Federal Trade Commission shall be resolved utes, receives, holds, packages, exports, or bacco use. It is sensitive to the con- by a memorandum of understanding between imports tobacco products shall, at the re- cerns of tobacco farmers, small busi- the Secretary and the Federal Trade Com- quest of an officer or employee duly des- nesses, and nicotine-dependent smok- mission. ignated by the Secretary, permit such officer ‘‘(C) In addition to the disclosures required ers. But, it clearly gives FDA the au- or employee, at reasonable times and within by subparagraph (A) of this paragraph, the thority it needs in order to prevent reasonable limits and in a reasonable man- Secretary may, under a rulemaking con- youth smoking and to reduce addiction ner, upon the presentation of appropriate ducted under section 553 of title 5, United to this highly lethal product. credentials and a written notice to such per- States Code, prescribe disclosure require- son, to have access to and copy all records The stakes are vast. Five thousand ments regarding the level of any cigarette or (including financial records) relating to such children have their first cigarette other tobacco product constituent including article that are needed to assist the Sec- every day, and two thousand of them any smoke constituent. Any such disclosure retary in investigating potential illicit become daily smokers. Nearly a thou- may be required if the Secretary determines trade, smuggling or counterfeiting of to- that disclosure would be of benefit to the sand of them will die prematurely from bacco products. public health, or otherwise would increase tobacco-induced diseases. Smoking is ‘‘(d) KNOWLEDGE OF ILLEGAL TRANS- consumer awareness of the health con- the number one preventable cause of ACTION.—If the manufacturer or distributor sequences of the use of tobacco products, ex- death in the Nation today. Cigarettes of a tobacco product has knowledge which cept that no such prescribed disclosure shall reasonably supports the conclusion that a kill well over 400,000 Americans each be required on the face of any cigarette tobacco product manufactured or distributed year. That is more lives lost than from package or advertisement. Nothing in this by such manufacturer or distributor that has automobile accidents, alcohol abuse, il- section shall prohibit the Secretary from re- left the control of such person may be or has legal drugs, AIDS, murder, suicide, and quiring such prescribed disclosure through a been— cigarette or other tobacco product package fires combined. Our response to a pub- ‘‘(A) imported, exported, distributed or of- or advertisement insert, or by any other lic health problem of this magnitude fered for sale in interstate commerce by a means under the Federal Food, Drug, and must consist of more than half-way person without paying duties or taxes re- Cosmetic Act (21 U.S.C. 301 et seq.). measures. quired by law; or ‘‘(D) This paragraph applies to a retailer ‘‘(B) imported, exported, distributed or di- We must deal firmly with tobacco only if that retailer is responsible for or diverted for possible illicit marketing, company marketing practices that tar- rects the label statements required under the manufacturer or distributor shall get children and mislead the public. this section, except that this paragraph shall The Food and Drug Administration not relieve a retailer of liability if the re- promptly notify the Attorney General of tailer sells or distributes tobacco products such knowledge. needs broad authority to regulate the that are not labeled in accordance with the ‘‘(2) KNOWLEDGE DEFINED.—For purposes of sale, distribution, and advertising of requirements of this subsection.’’. this subsection, the term ‘knowledge’ as ap- cigarettes and smokeless tobacco. plied to a manufacturer or distributor TITLE III—PREVENTION OF ILLICIT The tobacco industry currently means— TRADE IN TOBACCO PRODUCTS spends over $9 billion a year to pro- ‘‘(A) the actual knowledge that the manu- mote its products. Much of that money SEC. 301. LABELING, RECORDKEEPING, RECORDS facturer or distributor had; or INSPECTION. ‘‘(B) the knowledge which a reasonable per- is spent in ways designed to tempt chil- Chapter IX of the Federal Food, Drug, and son would have had under like circumstances dren to start smoking, before they are Cosmetic Act, as added by section 101, is fur- or which would have been obtained upon the mature enough to appreciate the enor- ther amended by adding at the end the fol- exercise of due care. lowing: mity of the health risk. The industry SEC. 302. STUDY AND REPORT. ‘‘SEC. 921. LABELING, RECORDKEEPING, knows that more than 90 percent of RECORDS INSPECTION. (a) STUDY.—The Comptroller General of smokers begin as children and are ad- ‘‘(a) ORIGIN LABELING.—The label, pack- the United States shall conduct a study of dicted by the time they reach adult- aging, and shipping containers of tobacco cross-border trade in tobacco products to— hood. products for introduction or delivery for in- (1) collect data on cross-border trade in to- Documents obtained from tobacco bacco products, including illicit trade and troduction into interstate commerce shall companies prove, in the companies’ bear the statement ‘sale only allowed in the trade of counterfeit tobacco products and United States.’ make recommendations on the monitoring of own words, the magnitude of the indus- ‘‘(b) REGULATIONS CONCERNING RECORD- such trade; try’s efforts to trap children into de- KEEPING FOR TRACKING AND TRACING.— (2) collect data on cross-border advertising pendency on their deadly product. Re- ‘‘(1) IN GENERAL.—Not later than 9 months (any advertising intended to be broadcast, cent studies by the Institute of Medi- after the date of enactment of the Family transmitted, or distributed from the United cine and the Centers for Disease Con- Smoking Prevention and Tobacco Control States to another country) of tobacco prod- trol show the substantial role of indus- Act, the Secretary shall promulgate regula- ucts and make recommendations on how to try advertising in decisions by young tions regarding the establishment and main- prevent or eliminate, and what technologies tenance of records by any person who manu- could help facilitate the elimination of, people to use tobacco products. factures, processes, transports, distributes, cross-border advertising. If we are serious about reducing receives, packages, holds, exports, or imports (b) REPORT.—Not later than 18 months youth smoking, FDA must have the tobacco products. after the date of enactment of this Act, the power to prevent industry advertising

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00087 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5980 CONGRESSIONAL RECORD — SENATE May 20, 2004 designed to appeal to children wherever ulated the nicotine in their products to plish both of these goals during this it will be seen by children. This legisla- make it even more addictive. session. This approach is supported by tion will give FDA the ability to stop The tobacco industry has a long, dis- the public health community and by tobacco advertising which glamorizes honorable history of providing mis- farmers’ organizations. Most impor- smoking from appearing where it will leading information about the health tantly, it is the right thing to do for be seen by significant numbers of chil- consequences of smoking. These com- America’s children. dren. It grants FDA full authority to panies have repeatedly sought to char- regulate tobacco advertising ‘‘con- acterize their products as far less haz- By Mr. WARNER (for himself, sistent with and to the full extent per- ardous than they are. They made Mr. LIEBERMAN, Mr. ROBERTS, mitted by the First Amendment.’’ minor innovations in product design and Mr. ALLEN): FDA authority must also extend to seem far more significant for the S. 2462. A bill to provide additional the sale of tobacco products. Nearly health of the user than they actually assistance to recipients of Federal Pell every State makes it illegal to sell were. It is essential that FDA have Grants who are pursuing programs of cigarettes to children under 18, but sur- clear and unambiguous authority to study in engineering, mathematics, veys show that those laws are rarely prevent such misrepresentations in the science, or foreign languages; to the enforced and frequently violated. FDA future. The largest disinformation Committee on Health, Education, must have the power to limit the sale campaign in the history of the cor- Labor and Pensions. of cigarettes to face-to-face trans- porate world must end. Mr. WARNER. Mr. President, I rise actions in which the age of the pur- Given the addictiveness of tobacco today to introduce an important bill chaser can be verified by identifica- products, it is essential that the FDA related to education and our national, tion. This means an end to self-service regulate them for the protection of the homeland, and economic security. I am displays and vending machine sales. public health. Over forty million Amer- pleased to be joined in this bipartisan There must also be serious enforce- icans are currently addicted to ciga- effort with Senators LIEBERMAN, ROB- ment efforts with real penalties for rettes. No responsible public health of- ERTS, and ALLEN, and I am grateful to those caught selling tobacco products ficial believes that cigarettes should be each of them for working closely with to children. This is the only way to en- banned. A ban would leave forty mil- me in crafting this legislation. sure that children under 18 are not able lion people without a way to satisfy Some 50 plus years ago, I was a high to buy cigarettes. their drug dependency. FDA should be school drop-out. I left school at the age The FDA conducted the longest rule- able to take the necessary steps to help of 17 to enlist in the Navy to serve this making proceeding in its history, addicted smokers overcome their ad- country in World War II. In the mili- studying which regulations would most diction, and to make the product less tary, I earned the rank of Petty Officer effectively reduce the number of chil- toxic for smokers who are unable or 3rd Class, electronic technician’s mate. dren who smoke. Seven hundred thou- unwilling to stop. To do so, FDA must And, it was in this role that I earned sand public comments were received in have the authority to reduce or remove my first bit of technical education. the course of that rulemaking. At the hazardous ingredients from cigarettes, In return for my service, I was lucky conclusion of its proceeding, the Agen- to the extent that it becomes scientif- enough to earn a GI Bill that helped cy promulgated rules on the manner in ically feasible. The inherent risk in me go to college at Washington & Lee which cigarettes are advertised and smoking should not be unnecessarily University where I earned a degree in sold. Due to litigation, most of those compounded. engineering. Subsequently, I joined the regulations were never implemented. If Recent statements by several to- Marines and earned a second GI Bill we are serious about curbing youth bacco companies make clear that they that allowed me to attend the Univer- smoking as much as possible, as soon plan to develop what they characterize sity of Virginia where I earned my law as possible; it makes no sense to re- as ‘‘reduced risk’’ cigarettes. This leg- degree. quire FDA to reinvent the wheel by islation will require manufacturers to Without the GI bill, I certainly might conducting a new multi-year rule- submit such ‘‘reduced risk’’ products to not have earned the education that I making process on the same issues. the FDA for analysis before they can was fortunate enough to receive, and I This legislation will give the youth ac- be marketed. No health-related claims certainly would not be standing here cess and advertising restrictions al- will be permitted until they have been today in the United States Senate. ready developed by FDA the immediate verified to the FDA’s satisfaction. That is why I feel so very strongly that force of law, as if they had been issued These safeguards are essential to pre- we must support education in this under the new statute. vent deceptive industry marketing country. Today’s generation of stu- The legislation also provides for campaigns, which could lull the public dents should have at least the same op- stronger warnings on all cigarette and into a false sense of health safety. portunity to earn their education that smokeless tobacco packages, and in all Smoking is the number one prevent- I had, if not more. print advertisements. These warnings able cause of death in America. Con- We are fortunate in America that we will be more explicit in their descrip- gress must vest FDA not only with the have several important Federal pro- tion of the medical problems which can responsibility for regulating tobacco grams to help make education more af- result from tobacco use. The FDA is products, but with full authority to do fordable for today’s generation. Wheth- given the authority to change the text the job effectively. er it is the GI Bill, the Americorp sti- of these warning labels periodically, to This legislation will give the FDA pend, subsidized and unsubsidized Staf- keep their impact strong. the legal authority it needs—to reduce ford loans, or any number of other Fed- Nicotine in cigarettes is highly ad- youth smoking by preventing tobacco eral education programs, many Ameri- dictive. Medical experts say that it is advertising which targets children—to cans today who wish to obtain higher as addictive as heroin or cocaine. Yet prevent the sale of tobacco products to education have access to a variety of for decades, tobacco companies have minors—to help smokers overcome educational programs. I support vehemently denied the addictiveness of their addiction—to make tobacco prod- strengthening these programs to in- their products. No one can forget the ucts less toxic for those who continue crease access to higher education. parade of tobacco executives who testi- to use them—and to prevent the to- Of all the educational grant pro- fied under oath before Congress that bacco industry from misleading the grams, the Pell Grant program is the smoking cigarettes is not addictive. public about the dangers of smoking. largest source of grant aid to help stu- Overwhelming evidence in industry We believe that there is an excellent dents pay for the costs associated with documents obtained through the dis- chance of enacting this bill this year. higher education. Eligibility for Pell covery process proves that the compa- The interest of tobacco-state members Grants is based on financial need, and nies not only knew of this in passing a tobacco farmers’ quota this year alone, Pell Grants helped 5.3 addictiveness for decades, but actually buyout provides a golden opportunity. million undergraduate students attain relied on it as the basis for their mar- By joining a strong FDA bill with relief higher education. keting strategy. As we now know, ciga- for tobacco farmers, we can assemble a Now, I am a strong supporter of the rette manufacturers chemically manip- broad, bipartisan coalition to accom- Pell Grant program. The $13.1 billion

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00088 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5981 that is being spent by the Federal Gov- view, one of the most important re- and women in the Armed Forces the ernment on Pell Grants in fiscal year search journals in the world, has hit an best technology and equipment re- 2004 gives students access to higher all time low of 29 percent, down from 61 quires the special skills of engineers, education that otherwise might not percent in 1983. And the U.S. produc- scientists and computer scientists. Our have such access. But, I also recognize tion of patents, probably the most di- military has always recognized these that the Pell Grant program was cre- rect link between research and eco- facts, and historically has been a treated in 1972 when the world was en- nomic benefit, has declined steadily mendous supporter of science and engi- tirely different. relative to the rest of the world for neering on a broad scale, from applied Our world today is much more dan- decades, and now stands at only 52 per- research to the most pure and esoteric gerous than it was back then, and cent of the total. of pursuits. much more dangerous than when I Despite these statistics, up to now, Let me quote some numbers which served this country with brief tours of this country has been able to meet its make clear what a huge investment duty in World War II and the Korean new challenges by importing brain our defense community makes in War. power from foreign countries. We are science and engineering: According to Today, while we’re sleeping, people in fortunate to have so many smart minds the National Science Foundation, the other parts of the world are contriving from other countries willing to come to Defense Department is by far the larg- of every possible way to take our busi- the United States to fill critical est single supporter of science and ness, our economy, our security, and science and engineering positions. technology in the Federal Government, our freedoms away from us. September However, the need for home-grown tal- accounting for about half of the total 11, 2001, should remind us of this. ent is becoming more and more appar- research dollars spent; the proportion Once, great oceans protected this Na- ent. of defense funding for University re- tion. But now, with the advent of the First, international competition for search in critical disciplines is very Internet and other modern tech- this foreign brain power has become insignificant. For example, 90 percent of nologies, the world is more connected tense. As the National Science Board basic astronautical research is defense- than ever, and America is more vulner- notes, ‘‘Governments throughout the funded. And, as you all must realize, able than ever in a lot of ways. Com- world recognize that a high-skill S&E University research is vastly impor- puter hackers all over the world try on workforce is essential for economic tant for training subsequent genera- a daily basis to hack into government strength. Countries beyond the United tions of high-quality researchers; and computers. If successful, this could States have been taking action to . . . in terms of technical manpower, de- wreak havoc. Furthermore, each day, attract foreign students and workers, fense-related scientists and engineers for whatever reason, people create and raise the attractiveness to their make up nearly 46 percent of the total computer viruses, and even the small- own citizenry of staying home or re- Federal workforce. And, this includes est virus can cost our economy billions turning from abroad to serve growing 28 percent of all physical scientists, 48 of dollars. national economies and research enter- percent of computer scientists and Simply put, in today’s day and age, prises.’’ This increased global competi- mathematicians, and 67 percent of all our country faces new challenges like tion for science and engineering work- engineers. never before. I ask—are we prepared to ers ‘‘comes at a time when demand for For well over a century these invest- meet these challenges? their skills is projected to rise signifi- ments have given us advantages in Unfortunately, our institutions of cantly—both in the United States and technological fields that have provided higher learning are not producing throughout the global economy.’’ our men and women of our Armed enough American graduates with cer- Without action on our part, though, Forces the most advanced and powerful tain majors to meet our new chal- America will lose out in the competi- tools in existence, from submarines lenges. In engineering, math, computer tion for these technically talented and airplanes to unmanned vehicles sciences, hard sciences, and certain for- workers. According to the National and the Internet. These technologies eign languages—America is coming up Science Board, by 2010, if current not only give our military an over- short. trends continue, significantly less than whelming advantage on the battlefield, The statistics are alarming: the 10 percent of all physical scientists and they also save many lives. Third International Math and Science engineers in the world will be working Yet, alarmingly, it is in the precise Study reports that U.S. 12th graders in America. disciplines that produce these tech- scored in only the 7th percentile in Increased global competition is not nologies and equipment where we see math worldwide, and only the 3rd per- the only reason, though, that we have some of the greatest potential short- centile in science. This is near the bot- to promote a home-grown S&E work- ages in our science and engineering tom among major industrialized na- force in America. In the post 9/11 era, it workforce. Numerous studies show that tions. The National Science Founda- is more important than ever from a se- the number of domestic students in tion reports that the fraction of U.S. curity perspective to have American these critical fields has been falling Bachelor degrees in science and engi- citizens performing certain tasks. steadily for years. And, without major neering have been declining for nearly The National Science Board put it investments to encourage more Ameri- 2 decades when compared to the rest of best when they said, ‘‘The ready avail- cans to enter these critical fields, the world. While nearly two-thirds of ability of outstanding science and engi- America is going to lose its status as Bachelor degrees in China and Singa- neering talent from other countries is the world’s innovator and be placed in pore are science or engineering, they no longer assured, as international the precarious situation of having to account for only about 17 percent in competition for the science and engi- rely on foreign countries to sell us the the United States. In fact, we currently neering workforce grows. Threats to best equipment and the best tech- rank 61st out of the 63 countries sur- world peace and domestic security cre- nology for our troops. That is why it is veyed. Similarly, the National Science ate additional constraints on employ- paramount for America, from within, Board reports that the fraction of for- ment of foreign nationals in the United to produce the home-grown technical eign born scientists and engineers in States.’’ talent it needs. the U.S. workforce rose to an all time I think the message is clear: Our S&E The consequences of inaction are high by 2000. Amazingly, 38 percent of workforce is in crisis. If we do not act enormous. And, while America’s chal- all people working in the United States to encourage more American citizens lenge is substantial, it is not insur- with doctorate degrees in science or en- to enter the high shortage areas in en- mountable. Fortunately, we already gineering are now foreign born. gineering, math, and science, then have an existing Federal program up The effects of these educational America may lose its historical advan- and running that, if modified, can help. trends are already being felt in various tage as the world’s innovator. Under current law, the $13.1 billion a important ways. For example: the The consequences of this trend are year Pell Grant program awards recipi- American Physical Society reports also significant from a national secu- ents grants regardless of the course of that the proportion of articles by rity perspective. The defense-related study that the recipient chooses to American authors in the Physical Re- research that goes into giving our men pursue. So, under current law, 2 people

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00089 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5982 CONGRESSIONAL RECORD — SENATE May 20, 2004 from the same financial background the amount calculated for the student under amount equal to the difference between the are eligible for the same grant even subparagraph (A) for the academic year in- total amount the student received under this though one chooses to major in the lib- volved, multiplied by 2. subparagraph and the total amount the stu- ‘‘(ii)(I) The Secretary, in consultation with dent would have received under this section eral arts while the other majors in en- the Secretary of Defense, the Secretary of if this subparagraph had not been applied. gineering or science. the Department of Homeland Security, and ‘‘(II) The Secretary shall reduce the While I believe studying the liberal the Director of the National Science Founda- amount of Federal Pell Grant assistance the arts is an important component to hav- tion, shall develop, update not less than once student is eligible to receive in subsequent ing an enlightened citizenry, I also be- every 2 years, and publish in the Federal academic years by dividing the total amount lieve that given the unique challenges Register, a list of engineering, mathematics, to be reduced under subclause (I) for the student by the number of years the student re- we are facing in this country, it is ap- and science degrees, majors, certificates, or programs that if pursued by a student, may ceived an increased Federal Pell Grant propriate for us to add an incentive to enable the student to receive the increased amount under clause (i), and deducting the the Pell Grant program to encourage Federal Pell Grant amount under clause (i). result from the amount of Federal Pell individuals to pursue courses of study In developing and updating the list the Sec- Grant assistance the student is eligible to re- where graduates are needed to meet retaries and Director shall consider the fol- ceive under this section for a number of sub- our national security, homeland secu- lowing: sequent academic years equal to the number rity, and economic security needs. ‘‘(aa) The current engineering, mathe- of academic years the student received an in- matics, and science needs of the United creased Federal Pell Grant amount under That is why today I am introducing clause (i).’’. this legislation. The legislation is sim- States with respect to national security, homeland security, and economic security. Mr. LIEBERMAN. Mr. President, I ple. It provides that at least every 2 ‘‘(bb) Whether institutions of higher edu- rise today to join my esteemed col- years, our Secretary of Education, in cation in the United States are currently league from the State of Virginia, Sen- consultation with the Secretary of De- producing enough graduates with degrees to ator WARNER, in introducing The 21st fense, the Secretary of Homeland Secu- meet the national security, homeland secu- Century Pell Grant Plus Act. This bill rity, and others, should provide a list rity, and economic security needs of the is intended to provide an immediate of courses of study where America United States. ‘‘(cc) The future expected workforce needs and direct response to the urgent need needs home-grown talent to meet our in this country to encourage greater national, homeland, and economic se- of the United States required to help ensure the Nation’s national security, homeland se- numbers of graduates in the critical curity needs. Those students who pur- curity, and economic security. areas of math and science and foreign sue courses of study in these programs ‘‘(dd) Whether institutions of higher edu- language. Specifically, our bill would will be rewarded through a doubling of cation in the United States are expected to provide financial incentives to Amer- their Pell Grant to help them with the produce enough graduates with degrees to ican college students, via enhanced costs associated with obtaining their meet the future national security, homeland Pell grants, to pursue degrees in education. security, and economic security needs of the science, engineering, mathematics, and We in the Congress have an obliga- United States. ‘‘(II) The Secretary, in consultation with key foreign languages. These subject tion when expending taxpayer money, the Secretary of Defense, the Secretary of areas are critical for meeting our na- to do so in a manner that meets our the Department of Homeland Security, and tion’s economic and homeland security Nation’s needs. Our Nation desperately the Secretary of State, shall develop, update needs. needs more highly trained domestic not less than once every 2 years, and publish Although the number of jobs requir- workers. That is an indisputable fact. in the Federal Register, a list of foreign lan- ing scientific and technical skills is And, in the Pell Grant program, we guage degrees, majors, certificates, or pro- projected to grow over the next decade, have over $13 billion that is readily grams that if pursued by a student, may enable the student to receive the increased the last ten years have witnessed a sig- available to help meet this demand. Federal Pell Grant amount under clause (i). nificant decline in the number of rel- In closing, our world is vastly dif- In developing and updating the list the Sec- evant baccalaureate degrees awarded ferent today than it was when the Pell retaries shall consider the following: by U.S. institutions of higher edu- Grant program was created in 1972. My ‘‘(aa) The foreign language needs of the cation. Recent reports have high- legislation is a commonsense modifica- United States with respect to national secu- lighted the decline in science and engi- tion of the Pell Grant program that rity, homeland security, and economic secu- neering graduates in our country, will help America meet its new chal- rity. which has threatened the United lenges. I hope my colleagues will join ‘‘(bb) Whether institutions of higher edu- States’ worldwide dominance in cation in the United States are currently me in this endeavor. producing enough graduates with degrees to science and innovation. Foreign ad- Mr. President, I ask unanimous con- meet the national security, homeland secu- vances in basic science now often ex- sent that the text of the bill be printed rity, and economic security needs of the ceed those in the United States. To ex- in the RECORD. United States. acerbate the matter, future demo- There being no objection, the bill was ‘‘(cc) The future expected workforce needs graphics signal that many of the pres- ordered to be printed in the RECORD, as of the United States required to help ensure ently employed engineers and sci- follows: the Nation’s national security, homeland se- entists who entered the workforce in curity, and economic security. S. 2462 the 1960s and 1970s will retire during ‘‘(dd) Whether institutions of higher edu- the next decade. Unfortunately, their Be it enacted by the Senate and House of Rep- cation in the United States are expected to resentatives of the United States of America in produce enough graduates with degrees to children are not following them into Congress assembled, meet the future national security, homeland the same professions. SECTION 1. SHORT TITLE. security, and economic security needs of the Many of our competitors in the world This Act may be cited as the ‘‘21st Century United States. market are not experiencing these Federal Pell Grant Plus Act’’. ‘‘(iii) Each student who received an in- same problems. The universities in SEC. 2. RECIPIENTS OF FEDERAL PELL GRANTS creased Federal Pell Grant amount under some European and Asian countries are WHO ARE PURSUING PROGRAMS OF clause (i) to pursue a degree, major, certifi- attracting science and engineering ma- STUDY IN ENGINEERING, MATHE- cate, or program described in a list published jors at much higher rates than the uni- MATICS, SCIENCE, OR FOREIGN LAN- under subclause (I) or (II) of clause (ii) shall GUAGES. continue to be eligible for the increased Fed- versities in the United States. For ex- Section 401(b)(2) of the Higher Education eral Pell Grant amount in subsequent aca- ample, China graduated three times as Act of 1965 (20 U.S.C. 1070a(b)(2)) is amended demic years if the degree, major, certificate, many engineering graduates than the by adding at the end the following: or program, respectively, is subsequently re- United States did in 1999. In 2000, there ‘‘(C)(i) Notwithstanding subparagraph (A) moved from the list. were 24 nations who awarded a higher and subject to clause (iii), in the case of a ‘‘(iv)(I) If a student who received an in- percentage of science and engineering student who is eligible under this part and creased Federal Pell Grant amount under degrees than the United States did. In who is pursuing a degree with a major in, or clause (i) changes the student’s course of that same year, the percentage of stu- a certificate or program of study relating to, study to a degree, major, certificate, or pro- engineering, mathematics, science (such as gram that is not included in a list described dents earning science degrees in Fin- physics, chemistry, or computer science), or in clause (ii), then the Secretary shall reduce land was 2.5 times higher than in the a foreign language, described in a list devel- the amount of Federal Pell Grant assistance United States. Graduate education oped or updated under clause (ii), the the student is eligible to receive under this trends are no better. According to Na- amount of the Federal Pell Grant shall be section for subsequent academic years by an tional Science Foundation indicators,

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00090 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5983 between 1986 and 1999, China produced technical workforce. Among his many him to buy baseball cards on Ebay. You science and engineering doctorates at achievements, including many in Uni- might ask, how did a healthy 17-year an average annual growth rate of 36.5 versity education and at NSF, I would old obtain prescriptions for painkillers percent. By comparison, the United note that Dr. Hopps was the author of without a medical exam. He got them States had an average annual growth numerous scholarly and scientific pa- from Dr. Robert Ogle an ‘‘online’’ phy- rate of just 2.2 percent during the same pers, and was recognized as one of the sician based out of Texas. With the pre- period. We must also keep in mind that top African Americans in Technology scriptions from Dr. Ogle, Ryan was of all the science and engineering doc- in 2004. I might also mention that in able to order hydrocodone, morphine, toral degrees earned in the United addition to his intellectual prowess, he Valium and Oxazepam and have them States in 1999, 48.6 percent of them was passionate about athletics—a win- shipped via US mail right to his front were earned by non-U.S. citizens. ning combination. As we introduce this door. I noted in my recent offshore out- bill to highlight the importance of this In February 2001, Ryan overdosed on sourcing study, now posted on my profession, I thought it was appro- a combination of these prescription website, that as global competition for priate to recognize Dr. Hopps, and drugs. His mother found him dead on technical talent intensifies, our eco- thank my colleagues for this oppor- his bedroom floor. nomic security depends on producing tunity. The Ryan Haight Internet Pharmacy U.S.-born science and engineering grad- Consumer Protection Act counters the uates. Not being able to fill the jobs in By Mr. COLEMAN (for himself growing sale of prescription drugs over this country with U.S. citizens is also a and Mrs. FEINSTEIN) the Internet without a valid prescrip- threat to our national security. Thus, S. 2464. A bill to amend the Federal tion by 1. providing new disclosure it is imperative that our higher edu- Food, Drug, and Cosmetic Act with re- standards for Internet pharmacies; 2. cation system, which is the best in the spect to the sale of prescription drugs barring Internet sites from selling or world, train more individuals in through the Internet; to the Com- dispensing prescription drugs to conscience and technology. mittee on Health, Education, Labor, sumers who are provided a prescription and Pensions. Our bill provides a simple and effi- solely on the basis of an online ques- cient solution to this problem. Under By Mr. COLEMAN: tionnaire; and 3. allowing State Attor- our proposal, any student who qualifies S. 2465. A bill to amend the Con- neys General to go to Federal court to for a Pell Grant and majors in science, trolled Substances Act with respect to shut down rogue sites. engineering, mathematics, or certain the seizure of shipments of controlled The bill is geared to counter domes- foreign languages would be eligible to substances, and for other purposes; to tic Internet pharmacies that sell drugs receive a grant that is double the size the Committee on the Judiciary. without a valid prescription, not inter- of the original award. Every two years Mr. COLEMAN. Mr. President, I rise national pharmacies that sell drugs at the Secretary of Education, in con- to introduce two bills that expand Fed- a low cost to individuals who have a sultation with the Secretaries of De- eral authority to prevent controlled valid prescription from their U.S. doc- fense and Homeland Security, and the substances from flooding into the U.S., tors. director of the National Science Foun- authorizing states to shut down illegit- Under current law, purchasing drugs dation will develop a list of engineer- imate virtual pharmacies, and bar online without a valid prescription can ing, mathematics, science, and foreign Internet drug stores from dispensing be simple: a consumer just types the language majors, degrees, certificates, drugs to customers referred to on-line name of the drug into a search engine, or programs that if pursued by a stu- doctors for a prescription. quickly identifies a site selling the dent, may enable that student to re- Americans are increasingly turning medication, fills in a brief question- ceive the increased Federal Pell Grant to the Internet for access to affordable naire, and then clicks to purchase. The amount. drugs. In 2003, consumer spending on risks of self-medicating, however, can Science, engineering, technology, drugs procured over the Internet ex- include potential adverse reactions and innovation are key to our eco- ceeded $3.2 billion. Unfortunately, from inappropriately prescribed medi- nomic growth, prosperity, and secu- rogue Internet sites have proliferated cations, dangerous drug interactions, rity. The 21st Century Federal Pell and rake in millions of dollars by sell- use of counterfeit or tainted products, Grant Plus Act aims to strengthen our ing unproven, counterfeit, defective or and addiction to habit-forming sub- technical workforce, and thus our eco- otherwise inappropriate medications to stances. Several of these illegitimate nomic and homeland security, by en- unsuspecting consumers. Even more sites fail to provide information about couraging more of our college students dangerously, these sites are profiting contraindications, potential adverse ef- to study science, engineering, mathe- by selling addictive and potentially fects, and efficacy. matics, and foreign languages. I urge deadly controlled substances to con- Regulating these Internet phar- my colleagues to act favorably on this sumers without a prescription or any macies is difficult for Federal and measure. physician oversight. This must stop be- State authorities. State medical and I would also like to take this oppor- fore more individuals die or become ad- pharmacy boards have expressed the tunity to pay tribute to a man who dicted to easily obtainable narcotic concern that they do not have ade- some have appropriately described as a drugs. quate enforcement tools to regulate true gentleman as well as an out- The first bill I am introducing was practice over the Internet. It can be standing leader in engineering and developed in close consultation with virtually impossible for States to iden- science. Dr. John H. Hopps died on May Senator FEINSTEIN, who is an original tify, investigate, and prosecute these 14, 2004 at 65 years of age. He has ad- cosponsor. In appreciation for her role illegal pharmacies because the con- vised my office on our nation’s science in helping write this legislation it is sumer, prescriber, and seller of a drug talent issues for the past three years, named after a young man from her may be located in different States. and I want to dedicate today’s new bill state who died from an overdose of The Internet Pharmacy Consumer to him. At the time of his death, he drugs purchased over the Internet. Protection Act amends the Federal was serving as Deputy Under Secretary 17-year old Ryan Haight of La Mesa, Food, Drug, and Cosmetic Act to ad- of Defense for Research and National CA was an honor roll student, and avid dress this problem in three steps. First, Laboratories, and Deputy Director of baseball card collector about to enter it requires Internet pharmacy websites Defense Research and Engineering. He college. As his mom says, ‘‘he was a to display information identifying the accepted this dual position out of a good kid.’’ But in May of 2000 Ryan business, pharmacist, and physician as- strong sense of national service after started hanging out with a different sociated with the website. the September 11 attack. The science crowd of friends. He joined an online Second, the bill bars the selling or community has lost a member who has chat forum, which advocates the safe dispensing of a prescription drug via served as an inspiration to many, in- use of drugs, and he began buying pre- the Internet when the website has re- cluding members of my staff, for his scription drugs from the Internet. ferred the customer to a doctor who commitment to his profession and his He used the family computer late at then writes a prescription without ever unique approaches to developing our night and a debit card his parents gave seeing the patient.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00091 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5984 CONGRESSIONAL RECORD — SENATE May 20, 2004 Third, the bill provides States with Netherlands, Spain, Portugal, Canada, ties in shutting down ‘‘rogue’’ Internet new enforcement authority modeled on Mexico, and Romania. pharmacies. the Federal Telemarketing Sales Act Likewise, as of March 2003, senior First, this bill establishes disclosure that will allow a state attorney general Customs officials at the Miami Inter- standards for Internet pharmacies. to shut down a rogue site across the national Airport indicated that as Second, this bill prohibits the dis- country, rather than only bar sales to much as 30,000 packages containing pensing or sale of a prescription drug consumers of his or her state. drugs were being imported on a daily based solely on communications via I am proud to say that the Ryan basis. A large percentage of these are the Internet such as the completion of Haight Internet Pharmacy Consumer controlled substances as well. Customs an online medical questionnaire. Protection Act is supported by the is simply overwhelmed. At Mail facili- Third, it allows a State Attorney Federation of State Medical Boards, ties across the U.S., Customs regularly General to bring a civil action in a fed- the National Community Pharmacists seizes shipments of oxycodone, hydro- eral district court to enjoin a phar- Association, and the American Phar- quinone, tranquilizers, steroids, co- macy operation and to enforce compli- macists Association. deine laced products, GHB, date rape ance with the provisions of this law. The second bill I am introducing en- drug, and morphine. Under this bill, for a domestic ables Customs and Border Protection In order to comply with paperwork website to sell prescription drugs le- to immediately seize and destroy any requirements, Customs is forced to de- gally, the website would have to dis- package containing a controlled sub- vote investigators solely to opening, play identifying information such as stance that is illegally imported into counting, and analyzing drug packages, the names, addresses, and medical li- the U.S. without having to fill out du- filling out duplicative forms, and log- censing information for pharmacists plicative forms and other unnecessary ging into a computer all of the seized and physicians associated with the administrative paperwork. The Act controlled substances. It takes Cus- website. In addition, if a person wants to use will allow Customs to focus on inter- toms at least one hour to process a sin- the Internet to purchase their prescrip- dicting and destroying potentially ad- gle shipment of a controlled substance. tion drugs he or she will not be prohib- dictive and deadly controlled sub- This minimizes the availability of in- ited from doing so under this bill but, stances. The Act is dedicated to Todd spectors to screen incoming drug pack- in order to do so, must already have a Rode, a young man who died after over- ages. In fact, currently at JFK, there prescription for the drug that is valid dosing on imported drugs. are 20,000 packages of seized controlled in the United States prior to making Todd Rode had the heart and soul of substances waiting processing. Cus- the Internet purchase. a musician. He graduated from college toms acknowledges that, because of the Reliance on the Internet for public magna cum laude with a major in psy- sheer volume of product, bureaucratic health purposes and the expansion of chology and a minor in music. The fac- regulations, and lack of manpower, the telemedicine, particularly in rural ulty named him the outstanding senior vast majority of controlled substances areas, make it essential that there be in the Psychology Department. He that are illegally imported are simply at the very least a minimum standard worked in this field for a number of missed and allowed into the U.S. for what qualifies as an acceptable years, but he constantly fought bouts stream of commerce. medical relationship between patients of depression and anxiety. The Act to Prevent the Illegal Impor- and their physicians. Unfortunately Todd ordered con- tation of Controlled Substances is a According to the American Medical trolled drugs from a pharmacy and doc- simple bill to address this burgeoning Association, a health care practitioner tor in another country. These drugs in- and potentially lethal problem. who offers a prescription for a patient cluded Venlafaxine, Propoxyphene, and I am confident that, if enacted as he or she has never seen before, based Codeine. All were controlled sub- stand-alone measures, each of these solely on an online questionnaire, gen- stances and all were obtained from bills will make on-line drug purchasing erally does not meet the appropriate overseas pharmacies without any safe- safer. However, I am working with Sen- medical standard of care. guards. To obtain these controlled sub- ator GREGG to ensure these safety fea- Let me illustrate the situation facing stances all Todd had to do was to fill tures are included in his comprehensive our country today. If a physician’s of- out an online questionnaire and with reimportation bill and urge my col- fice prescribed and dispensed prescrip- the click of a mouse they were shipped leagues to help make sure that this im- tion drugs the same way Internet phar- directly to his front door. portant piece of legislation becomes macies currently can and do, it would In October of 1999, Todd’s family law this year. look something like this: A physician found him dead in his apartment. Mrs. FEINSTEIN. Mr. President, I opens a physical office, asks a patient A six-month investigation by the rise today along with my colleague to fill out a medical history question- Permanent Subcommittee on Inves- Senator COLEMAN to introduce the naire in the lobby and give his or her tigations has revealed that tens of Internet Pharmacy Consumer Protec- credit card information to the office thousands of dangerous and addictive tion Act also called the ‘‘Ryan Haight manager. There is no nurse, and there- controlled substances are streaming Act’’, a bill which is vital to protect fore no one to take the patients’ into the U.S. on a daily basis from the safety of Americans who choose to height, weight, blood pressure, verify overseas Internet pharmacies. For ex- purchase their prescription drugs le- his or her medical history, and so forth ample, on March 15 and 17, 2004, at JFK gally over the Internet. and no one to answer the patient’s airport, home to the largest Inter- This legislation is necessary because questions regarding their health. national Mail Branch in the U.S., at of a growing problem of illegal pre- The questionnaire is then slipped least 3,000 boxes from a single vendor scription drug diversion and abuse of through a hole in the window; the of- in the Netherlands containing prescription drugs. Coupled with the fice manager takes it to the physician, hydrocodone and Diazepam (Valium) ease of access to the Internet, it has or person acting as the physician, who were seized by Customs and Border led to an environment where illegit- then writes the prescription and hands Protection (Customs). imate pharmacy websites can bypass it to the pharmacist, or person acting In fact, senior Customs inspectors at traditional regulations and established as the pharmacist, in the next room. JFK estimate that 40,000 parcels con- safeguards for the sale of prescription Once the patient signs his credit card, taining drugs are imported on a daily drugs. Internet websites that allow he is on his way out the door, drugs in basis. During last summer’s FDA/Cus- consumers to obtain prescription drugs hand. toms blitz, 28 percent of the drugs test- without the existence of a bona fide No examination is performed, no ed were controlled substances. Ex- physician-patient relationship pose an questions asked, and no verification or trapolating these figures, 11,200 drug immediate threat to public health and clarification of the answers provided on parcels containing controlled sub- safety. the medical history questionnaire. stances are imported through JFK To address this problem, the Internet This illustration is not an exaggera- daily, 78,400 weekly, 313,600 monthly Pharmacy Consumer Protection Act tion. It occurs every day all across the and 3,763,200 annually. top countries of makes several critical steps to ensure United States. The National Associa- origin include Brazil, India, Pakistan, safety and to assist regulatory authori- tion of Boards of Pharmacy estimates

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00092 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5985 that there are around 500 identifiable It turns out that Ryan had been or- Many among us are unaware of the rogue pharmacy websites operating on dering addictive drugs online and pay- scientific, medical fact that unborn the Internet. ing with a debit card his parents gave children can feel, but it is true. Not According to the Federation of State him to buy baseball cards on eBay. only can they feel, but their ability to Medical Boards, approximately 29 Without a physical exam or his par- experience pain is heightened. The states and the District of Columbia ei- ents’ consent, Ryan had been obtaining highest density of pain receptors per ther have laws or medical board initia- controlled substances, some from an square inch of skin in human develop- tives addressing Internet medical prac- Internet site in Oklahoma. It only took ment occurs in utero from 20 to 30 tice. Of the other 21 States, 13 have a few months before Ryan’s life was weeks gestation. medical or osteopathic medical boards ended by an overdose on a cocktail of An expert report on fetal develop- that have taken disciplinary action painkillers. ment, prepared for the Partial Birth against a physician for prescribing Ryan’s story and others like it force Abortion Ban trials, notes that while medication online. us to ask why anyone in the U.S. would unborn children are obviously incapa- Many States have already enacted be able to access such highly addictive ble of verbal expressions, we know that laws defining acceptable practices for and dangerous drugs over the Internet they can experience pain based upon qualifying medical relationships be- with such ease? anatomical, functional, physiological tween doctors and patients and this Why was there no physician or phar- and behavioral indicators that are cor- bill would not affect any existing State macist on the other end of this teen- related with pain in children and laws. ager’s computer verifying his age, his adults. For example, California law was medical history and that there was a Unborn children can experience pain. changed in 2000 to say: valid prescription? This is why unborn children are often No person or entity may prescribe, dis- That is why I support this legisla- administered anesthesia during in pense, or furnish, or cause to be prescribed, tion. It makes sensible requirements of utero surgeries. dispensed, or furnished dangerous drugs or Internet pharmacy websites that will Think about the pain that unborn dangerous devices [defined as any drug or de- children can experience, and then vice unsafe for self-use] on the Internet for not impact access to convenient, often- delivery to any person in this state, without times cost-saving drugs. think about the more gruesome abor- a good faith prior examination and medical With simple disclosure requirements tion procedures. Of course, we have indication . . . for Internet sites such as names, ad- heard about Partial Birth Abortion, I believe California’s law is a perfect dresses and medical or pharmacy li- but also consider the D&E abortion. example of why this legislation is need- censing information, patients will be During this procedure, commonly per- ed. The law only applies to persons liv- better off and state medical and phar- formed after 20-weeks—when there is ing in California. As we all know, how- macy boards can ensure that phar- medical evidence that the child can ex- ever, the Internet is not bound by macists and doctors are properly li- perience severe pain—the child is torn State or even country borders. censed. apart limb from limb. Think about how This legislation makes a critical step Lastly, this bill will give State At- that must feel to a young human. forward by providing additional au- torneys General the authority they We would never allow a dog to be thority for State Attorneys General to need to shut down rogue Internet phar- treated this way. Yet, the creature we file an injunction in Federal court to macies operating in other States. I are talking about is a young, unborn shut down an Internet site operating in urge my colleagues to support this bill. child. another State that violates the provi- Fortunately, the issue of pain experi- sions in the bill. By Mr. BROWNBACK (for him- enced by unborn children has been cov- Under current law, in order to close self, Mr. ALEXANDER, Mr. BUN- ered by the news media during the on- down an Internet website selling pre- NING, Mr. BURNS, Mr. COLEMAN, going Partial Birth Abortion Ban scription drugs prosecutors must take Mr. CRAPO, Mr. DEWINE, Mr. trials. Take for instance an April 7, enforcement actions in every State ENSIGN, Mr. ENZI, Mr. FITZ- 2004 Associated Press news article cov- where the Internet pharmacy operates, GERALD, Mr. GRAHAM of South ering the trials. And I quote: ‘‘A type requiring a tremendous amount of re- Carolina, Mr. GRASSLEY, Mr. of abortion banned under a new federal sources in an environment where the HATCH, Mr. KYL, Mr. MCCON- law would cause ‘severe and excru- location of the website is difficult, if NELL, Mr. MILLER, Mr. NICKLES, ciating’ pain to 20-week-old fetuses, a not impossible, to determine or keep Mr. ROBERTS, Mr. SANTORUM, medical expert testified yesterday . . . track of. Mr. SESSIONS, Mr. SHELBY, Mr. ‘I believe the fetus is conscious,’ said This bill will allow a State Attorney TALENT, Mr. CHAMBLISS, and Dr. Kanwaljeet ‘Sonny’ Anand, a pedia- General to bring a civil action in a Mr. INHOFE): trician at the University of Arkansas Federal district court to enjoin a phar- S. 2466. A bill to ensure that women for Medical Sciences . . . said yester- macy operation and to enforce compli- seeking an abortion are fully informed day that fetuses show increased heart ance with the provisions of the law in regarding the pain experienced by their rate, blood flow, and hormone levels in every jurisdiction where the pharmacy unborn child; to the Committee on response to pain. ‘The physiological re- is operating. Health, Education, Labor, and Pen- sponses have been very clearly stud- While this legislation pertains to do- sions. ied,’ he said. ‘The fetus cannot talk mestic Internet pharmacies, the prac- Mr. BROWNBACK. Mr. President, I . . . so this is the best evidence we can tice of international pharmacies sell- rise today to introduce the bipartisan get.’’ ing low-cost drugs to U.S. consumers Unborn Child Pain Awareness Act, and Today I introduce a bill that would who have valid prescriptions from their I am joined by 22 original cosponsors. require those who perform abortions on doctors deserves to be discussed and de- Unborn children can experience pain, unborn children 20 weeks after fer- bated on the Senate floor. It is my and they can certainly respond to tilization to inform the woman seeking hope that the Senate will act this year touch from outside the womb. Any an abortion of the medical evidence on prescription drug importation legis- woman who has been blessed with car- that the unborn child feels pain: (a.) lation. rying a baby in the second trimester Through a verbal statement given by In closing, I want to share with you can tell you this. the abortion provider, and also (b.) by the story of Ryan T. Haight of La I remember my own children kicking providing a brochure—developed by the Mesa, CA in whose memory this bill is and squirming inside of my wife’s Department of Health and Human named. womb. And my wife certainly remem- Services—that goes into more detail Ryan was an 18-year old honor stu- bers feeling their kicks. That unborn than the verbal statement on the med- dent from La Mesa, CA, when he died child is very much alive. All along, ical evidence of pain experienced by an in his home on February 12, 2001. His women have been able to feel the child unborn child 20 weeks after fertiliza- parents found a bottle of Vicodin in his inside of them, but now, science is tell- tion. room with a label from an out-of-state ing us what the child inside of his or The bill would also ensure that the pharmacy. her mother can feel. woman, if she chooses to continue with

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00093 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5986 CONGRESSIONAL RECORD — SENATE May 20, 2004 the abortion procedure after being the operational, structural, and finan- ing with the House, during which we given the medical information, has the cial challenges facing the U.S. Postal reviewed the recommendations of the option of choosing anesthesia for the Service. The President charged this President’s Commission. The bill Sen- child, so that the unborn child’s pain is commission with examining all signifi- ator CARPER and I introduce today is less severe. cant aspects of the Postal Service with the culmination of everything the Women should not be kept in the the goal of recommending legislative Committee learned from dozens of wit- dark; women have the right to know and administrative reforms to ensure nesses over the past eight months. what their unborn child experiences its long-term viability. First and foremost, the Collins-Car- during an abortion. After being pre- The President’s Commission con- per bill preserves the basic features of sented with the medical and scientific ducted seven public hearings across the universal service-affordable rates, fre- information on the development of the country at which they heard from nu- quent delivery, and convenient commu- unborn child 20 weeks after fertiliza- merous witnesses. On July 31, 2003, the nity access to retail postal services. As tion, the woman is more aware of the Commission released its final report, a Senator representing a large, rural pain experienced by the child during an making 35 legislative and administra- State, I want to ensure that my con- abortion procedure, and able—at the tive recommendations for the reform of stituents living in the northern woods, very least—to make an informed deci- the Postal Service. or on the islands, or in our many rural sion. It is simply not fair to keep As I read through the Commission’s small towns have the same access to women in the dark. report, I was struck by what I consid- postal services as the people of our cit- Unborn children do not have a voice, ered the Commission’s wake up call to ies. If the Postal Service were no but they are young members of the Congress: its statement that ‘‘an incre- longer to provide universal service and human family. It is time to look at the mental approach to Postal Service re- deliver mail to every customer, the af- unborn child, and recognize that it is form will yield too little, too late given fordable communication link upon really a young human, who can feel the enterprise’s bleak fiscal outlook, which many Americans rely would be pain and should be treated with care. the depth of current debt and unfunded jeopardized. Most commercial enter- I urge my colleagues to support and obligations, the downward trend in prises would find it uneconomical, if pass this important piece of legisla- First-Class mail volumes and the lim- not impossible, to deliver mail and tion. ited potential of its legacy postal net- packages to rural Americans at rates work that was built for a bygone era.’’ charged by the Postal Service. By Ms. COLLINS (for herself, Mr. That is a very strong statement, and The Collins-Carper bill allows the CARPER, Mr. STEVENS, Mr. one that challenged both the Postal Postal Service to maintain its current VOINOVICH, Mr. SUNUNU, Mr. Service and Congress to embrace far- mail monopoly, and retain its sole ac- LIEBERMAN, Mr. AKAKA, and Mr. reaching reforms. cess to customer mailboxes. It grants DURBIN): To the relief of many, including my- the Postal Service Board of Governors S. 2468. A bill to reform the postal self, the Commission did not rec- the authority to set rates for competi- laws of the United States; to the Com- ommend privatization of the Postal tive products like Express Mail and mittee on Governmental Affairs. Service. Instead, the Commission Parcel Post, as long as these prices do Ms. COLLINS. Mr. President, I rise sought to find a way for the Postal not result in cross subsidy from mar- today with my friend and colleague, Service to do, as Co-Chair Jim Johnson ket-dominant products. As a safeguard, Senator CARPER, to introduce the Post- described to me, ‘‘an overwhelmingly our bill establishes a 30 day prior real Accountability and Enhancement better job under the same general view period during which the proposed Act of 2004, a bill designed to help the structure.’’ rate changes shall be reviewed by the 225-year-old Postal Service meet the The Postal Service plays a vital role Postal Regulatory Commission. challenges of the 21st Century. This in our economy. The Service itself em- It replaces the current lengthy and legislation represents the culmination ploys more than 750,000 career employ- litigious rate-setting process with a of a process that began in the summer ees. Less well known is the fact that it rate cap-based structure for market- of 2002 when I introduced a bill to es- is also the linchpin of a $900-billion dominant products such as First-Class tablish a Presidential Commission mailing industry that employs 9 mil- Mail, periodicals and library mail. This charged with examining the problems lion Americans in fields as diverse as would allow the Postal Service to react the Postal Service faces, and devel- direct mailing, printing, catalog pro- more quickly to changes in the mailing oping specific recommendations and duction, paper manufacturing, and fi- industry. The rate caps would be linked legislative proposals that Congress and nancial services. The health of the to an inflation indicator selected by the Postal Service could implement. Postal Service is essential to the vital- the Postal Regulatory Commission. It has long been acknowledged that ity of thousands of companies and the The goal would be to make rate in- the financial and operational problems millions that they employ. creases more predictable and less fre- confronting the Postal Service are seri- One of the greatest challenges for the quent and to provide incentives for the ous. At present, the Postal Service has Postal Service is the decrease in mail Postal Service to operate efficiently. more than $90 billion in unfunded li- volume as business communications, Price changes for market-dominant abilities and obligations, which include bills and payments move more and products would be subject to a 45-day $6.5 billion in debt to the U.S. Treas- more to the Internet. The Postal Serv- prior review period by the Postal Regu- ury, nearly $7 billion for Workers’ ice has experienced declining volumes latory Commission. Compensation claims, $5 billion for re- of First-Class mail for the past four Our bill would introduce new safe- tirement costs, and as much as $45 bil- years. This is highly significant, given guards against unfair competition by lion to cover retiree health care costs. that First-Class mail accounts for 48 the Postal Service in competitive mar- The General Accounting Office’s Comp- percent of total mail volume, and the kets. Subsidization of competitive troller General, David Walker, has revenue it generates pays for more products by market-dominant products pointed to the urgent need for ‘‘funda- than two-thirds of the Postal Service’s would be expressly forbidden, and an mental reforms to minimize the risk of institutional costs. equitable allocation of institutional a significant taxpayer bailout or dra- The Postal Service also faces the dif- costs to competitive products would be matic postal rate increases.’’ The Post- ficult task of trying to cut costs from required. al Service has been on GAO’s ‘‘High- its nationwide infrastructure and The President’s Commission rec- Risk’’ List since April of 2001. The transportation network. These costs ommended that the regulator be grant- Postal Service is at risk of a ‘‘death are difficult to cut. Even though vol- ed the authority to make changes to spiral’’ of decreasing volume and in- umes may be decreasing, carriers must the Postal Service’s universal service creasing rates that lead to further de- still deliver six days a week to more obligation and monopoly. The vast ma- creases in volume. than 139 million addresses. jority of the postal community, how- In December of 2003, President Bush As Chairman of the Committee on ever, shared my belief that these are announced the creation of a bipartisan Governmental Affairs, I held a series of important policy determinations that commission charged with identifying eight hearings, including a joint hear- should be retained by Congress. The

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00094 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5987 Collins-Carper bill keeps those public compensation benefits for total or par- payers should not be held responsible policy decisions in congressional tial disability to a retirement annuity for this $27 billion obligation. hands. when the affected employee reaches 65 The Postal Service has reached a The existing Postal Rate Commission years of age. This change would reflect critical juncture. If we are to save and would be transformed into the Postal the fact that disabled postal employees strengthen this vital service upon Regulatory Commission with greatly would likely retire at some point were which so many Americans rely for enhanced authority. Under current they not receiving workers’ compensa- communication and their livelihoods, law, the Rate Commission has very tion. I would like to note that the aver- the time to act is now. narrow authority. We wanted to ensure age postal employee retires far earlier Our bill has the strong endorsements that the Postal Service management than age 65, so this is still a generous of the National Rural Letter Carriers has both greater latitude and stronger program. It is important to point out Association, the National Association oversight. Among other things, the that the Postal Service has reduced of Letter Carriers, the National Asso- Postal Regulatory Commission will their workplace injury rate by twenty- ciation of Postmasters of the United have the authority to regulate rates eight percent over the past three years. States, and the Coalition for a 21st for non-competitive products and serv- The Collins—Carper bill also puts Century Postal Service—which rep- ices; ensure financial transparency; es- into place a three-day waiting period resents thousands of the major mailers, tablish limits on the accumulation of before an employee is eligible to re- employee groups, small businesses, and retained earnings by the Postal Serv- ceive 45 days of continuation of pay. other users of the mail. I am also very ice; obtain information from the Postal This is consistent with every state’s pleased to add Senators TED STEVENS, Service, if need be, through the use of workers’ compensation program that GEORGE VOINOVICH and JOHN SUNUNU as new subpoena power; and review and requires a three- to seven-day waiting originated cosponsors of this bill. act on complaints filed by those who period before benefits are paid. I look forward to working with all of believe the Postal Service has exceeded Our bill has reached an important my colleagues in the Senate, and House its authority. Members of the Postal compromise on the issue of workshare Government Reform and Oversight Regulatory Board will be selected sole- discounts. Some have raised concerns Committee Chairman Tom Davis, who ly on the basis of their demonstrated that the Postal Service has set rates so just last week passed a postal reform experience and professional standing. that mailers get a discount greater bill out of his committee by a vote of Senate confirmation of all Board Mem- than the cost avoided by the Postal 40–0. bers will be required. Service. While this may have occurred I ask unanimous consent that the The Governmental Affairs Com- in a handful of instances, those mailers text of the bill be printed in the mittee dedicated two hearings to the are still covering their attributable RECORD, along with a letter sent to me examination of the Commission’s costs, as well as making a healthy con- from David Walker, Comptroller Gen- workforce-related recommendations. tribution to overhead. The language in eral of the General Accounting Office, The Postal Service is a highly labor in- our bill sets a policy that the Postal addressing the need for comprehensive tensive organization, using $3 out of Service shall not create new discounts postal reform. every $4 to pay the wages and benefits greater than the cost avoided by the There being no objection, the mate- of its employees. Their workforce is Postal Service. The only exception is rial was ordered to be printed in the comprised of more than 700,000 dedi- in those cases where the Postal Regu- RECORD, as follows: cated letter carriers, clerks, mail han- latory Commission believes those rates S. 2468 dlers, postmasters, and others, who are necessary. Be it enacted by the Senate and House of Rep- place great value on their right to col- The bill has also, for the first time, resentatives of the United States of America in lectively bargain. Our bill reaffirms explicitly created the authority for the Congress assembled, that right. This bill only makes Postal Service to enter into negotiated SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) SHORT TITLE.—This Act may be cited as changes to the bargaining process that service agreements with individual the ‘‘Postal Accountability and Enhance- have been agreed to by both the Postal customers. This will allow the Postal ment Act’’. Service and the four major unions. We Service to create agreements with cus- (b) TABLE OF CONTENTS.—The table of con- replace the rarely used fact-finding tomers to increase its revenue. I would tents for this Act is as follows: process with mediation, and shorten point out that these agreements must Sec. 1. Short title; table of contents. statutory deadlines for certain phases cover all attributable costs, and will TITLE I—DEFINITIONS; POSTAL of the bargaining process. likely result in greater contribution to SERVICES Additionally, the Collins-Carper bill overhead. In addition, our bill requires Sec. 101. Definitions. corrects what I believe to be an anom- that other similarly situated mailers Sec. 102. Postal services. aly in the Federal workers’ compensa- will be able to enter into such agree- TITLE II—MODERN RATE REGULATION tion law that results in high costs for ments with the Postal Service. Sec. 201. Provisions relating to market-dom- the Postal Service. Under the Federal Finally, our bill would repeal a provi- inant products. Sec. 202. Provisions relating to competitive Employees Compensation Act (FECA), sion of Public Law 108–18 which re- products. Federal employees with dependents are quires that money owed to the Postal Sec. 203. Provisions relating to experimental eligible for 75 percent of their take- Service due to an overpayment into the and new products. home pay, tax free, plus cost of living Civil Service Retirement System Fund Sec. 204. Reporting requirements and related allowances. In addition, there is no be held in an escrow account. Repeal- provisions. ing this provision would essentially Sec. 205. Complaints; appellate review and maximum dollar cap on FECA pay- enforcement. ments. As a result, employees often opt ‘‘free up’’ $78 billion over a period of 60 Sec. 206. Clerical amendment. not to retire, staying on the more gen- years. These savings would be used to TITLE III—MODERN SERVICE erous workers’ compensation program not only pay off debt to the U.S. Treas- STANDARDS permanently. ury and to fund health care liabilities, Sec. 301. Establishment of modern service According to a March 2003 audit but to mitigate rate increases as well. standards. issued by the Postal Service’s Office of In fact, failure to release these escrow Sec. 302. Postal service plan. Inspector General, the Postal Service’s funds would mean, for mailers, a dou- TITLE IV—PROVISIONS RELATING TO workers’ compensation rolls include 81 ble-digit rate increase in 2006—an ex- FAIR COMPETITION cases that originated 40 to 50 years ago, pense most American businesses and Sec. 401. Postal Service Competitive Prod- with the oldest recipient being 102 many consumers are ill-equipped to af- ucts Fund. years old. The IG’s office found 778 ford. Sec. 402. Assumed Federal income tax on competitive products income. cases that originated 30 to 40 years ago; The bill would also return to the De- Sec. 403. Unfair competition prohibited. and 1,189 cases that originated 20 to 29 partment of Treasury the responsi- Sec. 404. Suits by and against the Postal years ago. bility for funding CSRS pension bene- Service. The Collins-Carper bill works to profits relating to the military service of TITLE V—GENERAL PROVISIONS tect the financial resources of the postal retirees. No other agency is re- Sec. 501. Qualification and term require- Postal Service by converting workers’ quired to make this payment. Rate- ments for Governors.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00095 Fmt 4624 Sfmt 0655 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5988 CONGRESSIONAL RECORD — SENATE May 20, 2004 Sec. 502. Obligations. 10601(b)(1)(B)(ii)) is amended by striking omy engaged in the delivery of mail matter Sec. 503. Private carriage of letters. ‘‘404(a)(8)’’ and inserting ‘‘404(a)(7)’’. other than letters; Sec. 504. Rulemaking authority. (2) Section 2003(b)(1) of title 39, United ‘‘(5) the available alternative means of Sec. 505. Noninterference with collective States Code, is amended by striking ‘‘and sending and receiving letters and other mail bargaining agreements. nonpostal’’. matter at reasonable costs; TITLE VI—ENHANCED REGULATORY TITLE II—MODERN RATE REGULATION ‘‘(6) the degree of preparation of mail for delivery into the postal system performed by COMMISSION SEC. 201. PROVISIONS RELATING TO MARKET- Sec. 601. Reorganization and modification of DOMINANT PRODUCTS. the mailer and its effect upon reducing costs to the Postal Service; certain provisions relating to (a) IN GENERAL.—Chapter 36 of title 39, the Postal Regulatory Commis- United States Code, is amended by striking ‘‘(7) simplicity of structure for the entire sion. sections 3621, 3622, and 3623 and inserting the schedule and simple, identifiable relation- Sec. 602. Authority for Postal Regulatory following: ships between the rates or fees charged the various classes of mail for postal services; Commission to issue subpoenas. ‘‘§ 3621. Applicability; definitions Sec. 603. Appropriations for the Postal Reg- ‘‘(8) the relative value to the people of the ‘‘(a) APPLICABILITY.—This subchapter shall ulatory Commission. kinds of mail matter entered into the postal apply with respect to— Sec. 604. Redesignation of the Postal Rate system and the desirability and justification ‘‘(1) first-class mail letters; Commission. for special classifications and services of Sec. 605. Financial transparency. ‘‘(2) first-class mail cards; mail; ‘‘(3) periodicals; ‘‘(9) the importance of providing classifica- TITLE VII—EVALUATIONS ‘‘(4) standard mail; tions with extremely high degrees of reli- Sec. 701. Assessments of ratemaking, classi- ‘‘(5) single-piece parcel post; ability and speed of delivery and of providing fication, and other provisions. ‘‘(6) media mail; those that do not require high degrees of re- Sec. 702. Report on universal postal service ‘‘(7) bound printed matter; liability and speed of delivery; and the postal monopoly. ‘‘(8) library mail; ‘‘(10) the desirability of special classifica- Sec. 703. Study on equal application of laws ‘‘(9) special services; and tions from the point of view of both the user to competitive products. ‘‘(10) single-piece international mail, and of the Postal Service; TITLE VIII—POSTAL SERVICE RETIRE- subject to any changes the Postal Regu- ‘‘(11) the educational, cultural, scientific, MENT AND HEALTH BENEFITS FUND- latory Commission may make under section and informational value to the recipient of ING 3642. mail matter; and Sec. 801. Short title. ‘‘(b) RULE OF CONSTRUCTION.—Mail matter ‘‘(12) the policies of this title as well as Sec. 802. Civil Service Retirement System. referred to in subsection (a) shall, for pur- such other factors as the Commission deems Sec. 803. Health insurance. poses of this subchapter, be considered to appropriate. Sec. 804. Repeal of disposition of savings have the meaning given to such mail matter ‘‘(d) REQUIREMENTS.—The system for regu- provision. under the mail classification schedule. lating rates and classes for market-dominant Sec. 805. Effective dates. ‘‘§ 3622. Modern rate regulation products shall— TITLE IX—COMPENSATION FOR WORK ‘‘(a) AUTHORITY GENERALLY.—The Postal ‘‘(1) require the Postal Rate Commission to INJURIES Regulatory Commission shall, within 12 set annual limitations on the percentage Sec. 901. Temporary disability; continuation months after the date of the enactment of changes in rates based on inflation using in- of pay. this section, by regulation establish (and dices, such as the Consumer Price Index, the Sec. 902. Disability retirement for postal may from time to time thereafter by regula- Employment Cost Index, the Gross Domestic employees. tion revise) a modern system for regulating Product Price Index, or any similar measure rates and classes for market-dominant prod- as the Postal Rate Commission may pre- TITLE I—DEFINITIONS; POSTAL SERVICES ucts. scribe; SEC. 101. DEFINITIONS. ‘‘(b) OBJECTIVES.—Such system shall be de- ‘‘(2) establish a schedule whereby rates, Section 102 of title 39, United States Code, signed to achieve the following objectives: when necessary and appropriate, would in- is amended by striking ‘‘and’’ at the end of ‘‘(1) To reduce the administrative burden crease at regular intervals by predictable paragraph (3), by striking the period at the and increase the transparency of the rate- amounts; end of paragraph (4) and inserting a semi- making process. ‘‘(3) not later than 45 days before the im- colon, and by adding at the end the fol- ‘‘(2) To create predictability and stability plementation of any adjustment in rates lowing: in rates. under this section— ‘‘(5) ‘postal service’ refers to the physical ‘‘(3) To maximize incentives to reduce ‘‘(A) require the Postal Service to provide delivery of letters, printed matter, or pack- costs and increase efficiency. public notice of the adjustment; ages weighing up to 70 pounds, including ‘‘(4) To enhance mail security and deter ‘‘(B) provide an opportunity for review by physical acceptance, collection, sorting, terrorism by promoting secure, sender-iden- the Postal Rate Commission; transportation, or other services ancillary tified mail. ‘‘(C) provide for the Postal Rate Commis- thereto; ‘‘(5) To allow the Postal Service pricing sion to notify the Postal Service of any non- ‘‘(6) ‘product’ means a postal service with a flexibility, including the ability to use pric- compliance of the adjustment with the limi- distinct cost or market characteristic for ing to promote intelligent mail and encour- tation under paragraph (1); and which a rate is applied; age increased mail volume during nonpeak ‘‘(D) require the Postal Service to respond ‘‘(7) ‘rates’, as used with respect to prod- periods. to the notice provided under subparagraph ucts, includes fees for postal services; ‘‘(6) To assure adequate revenues, includ- (C) and describe the actions to be taken to ‘‘(8) ‘market-dominant product’ or ‘product ing retained earnings, to maintain financial comply with the limitation under paragraph in the market-dominant category of mail’ stability and meet the service standards es- (1). means a product subject to subchapter I of tablished under section 3691. ‘‘(4) notwithstanding any limitation set chapter 36; and ‘‘(7) To allocate the total institutional under paragraphs (1) and (3), establish proce- ‘‘(9) ‘competitive product’ or ‘product in costs of the Postal Service equitably be- dures whereby rates may be adjusted on an the competitive category of mail’ means a tween market-dominant and competitive expedited basis due to unexpected and ex- product subject to subchapter II of chapter products. traordinary circumstances. 36; and ‘‘(c) FACTORS.—In establishing or revising ‘‘(e) WORKSHARE DISCOUNTS.— ‘‘(10) ‘year’, as used in chapter 36 (other such system, the Postal Regulatory Commis- ‘‘(1) DEFINITION.—In this subsection, the than subchapters I and VI thereof), means a sion shall take into account— term ‘workshare discount’ refers to rate dis- fiscal year.’’. ‘‘(1) the establishment and maintenance of counts provided to mailers for the SEC. 102. POSTAL SERVICES. a fair and equitable schedule for rates and presorting, prebarcoding, handling, or trans- (a) IN GENERAL.—Section 404 of title 39, classification system; portation of mail, as further defined by the United States Code, is amended— ‘‘(2) the value of the mail service actually Postal Regulatory Commission under sub- (1) in subsection (a), by striking paragraph provided each class or type of mail service to section (a). (6) and by redesignating paragraphs (7) both the sender and the recipient, including ‘‘(2) REGULATIONS.—As part of the regula- through (9) as paragraphs (6) through (8), re- but not limited to the collection, mode of tions established under subsection (a), the spectively; and transportation, and priority of delivery; Postal Regulatory Commission shall estab- (2) by adding at the end the following: ‘‘(3) the direct and indirect postal costs at- lish rules for workshare discounts that en- ‘‘(c) Nothing in this title shall be consid- tributable to each class or type of mail serv- sure that such discounts do not exceed the ered to permit or require that the Postal ice plus that portion of all other costs of the cost that the Postal Service avoids as a re- Service provide any special nonpostal or Postal Service reasonably assignable to such sult of workshare activity, unless— similar services.’’. class or type; ‘‘(A) the discount is— (b) CONFORMING AMENDMENTS.—(1) Section ‘‘(4) the effect of rate increases upon the ‘‘(i) associated with a new postal service or 1402(b)(1)(B)(ii) of the Victims of Crime Act general public, business mail users, and en- with a change to an existing postal service; of 1984 (98 Stat. 2170; 42 U.S.C. terprises in the private sector of the econ- and

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00096 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5989 ‘‘(ii) necessary to induce mailer behavior ‘‘(4) The agreement will not preclude or used shall be provided and shall include a that furthers the economically efficient op- materially hinder similarly situated mail discussion of the suitability of the data used, eration of the Postal Service; users from entering into agreements with in accordance with regulations established ‘‘(B) a reduction in the discount would— the Postal Service on the same, or substan- by the Postal Regulatory Commission.’’. ‘‘(i) lead to a loss of volume in the affected tially the same terms or conditions, and the (b) REPEALED SECTIONS.—Sections 3624, category of mail and reduce the aggregate Postal Service remains willing and able to 3625, and 3628 of title 39, United States Code, contribution to institutional costs of the enter into such. are repealed. Postal Service from the mail matter subject ‘‘(c) LIMITATIONS.—A service agreement (c) REDESIGNATION.—Chapter 36 of title 39, to the discount below what it otherwise under this section shall— United States Code (as in effect after the would have been if the discount had not been ‘‘(1) be for a term not to exceed 3 years; amendment made by section 601, but before reduced to costs avoided; and the amendment made by section 202) is ‘‘(ii) result in a further increase in the ‘‘(2) provide that such agreement shall be amended by striking the heading for sub- rates paid by mailers not able to take advan- subject to the cancellation authority of the chapter II and inserting the following: tage of the discount; or Commission under section 3662. ‘‘SUBCHAPTER I—PROVISIONS RELATING ‘‘(iii) impede the efficient operation of the ‘‘(d) NOTICE REQUIREMENTS.— TO MARKET-DOMINANT PRODUCTS’’. Postal Service; ‘‘(1) IN GENERAL.—At least 30 days before a service agreement under this section is to SEC. 202. PROVISIONS RELATING TO COMPETI- ‘‘(C) the amount of the discount above TIVE PRODUCTS. take effect, the Postal Service shall file with costs avoided— Chapter 36 of title 39, United States Code, the Postal Regulatory Commission and pub- ‘‘(i) is necessary to mitigate rate shock; is amended by inserting after section 3629 lish in the Federal Register the following in- and the following: ‘‘(ii) will be phased out over time; formation with respect to such agreement: ‘‘SUBCHAPTER II—PROVISIONS ‘‘(D) the workshare discount is provided in ‘‘(A) A description of the postal services RELATING TO COMPETITIVE PRODUCTS connection with subclasses of mail con- the agreement involves. sisting exclusively of mail matter of edu- ‘‘(B) A description of the functions the cus- ‘‘§ 3631. Applicability; definitions and updates cational, cultural, or scientific value; or tomer is to perform under the agreement. ‘‘(a) APPLICABILITY.—This subchapter shall ‘‘(E) the Postal Regulatory Commission de- ‘‘(C) A description of the functions the apply with respect to— termines that such discounts are reasonable Postal Service is to perform under the agree- ‘‘(1) priority mail; and equitable and consistent with the objec- ment. ‘‘(2) expedited mail; tives and factors taken into account under ‘‘(D) The rates and fees payable by the cus- ‘‘(3) bulk parcel post; subsections (b) and (c). tomer during the term of the agreement. ‘‘(4) bulk international mail; and ‘‘(3) REPORT.—Whenever the Postal Service ‘‘(E) With respect to each condition under ‘‘(5) mailgrams; establishes or maintains a workshare dis- subsection (b), information sufficient to subject to subsection (d) and any changes the count, the Postal Service shall, at the time demonstrate the bases for the view of the Postal Regulatory Commission may make it publishes the workshare discount rate, Postal Service that such condition would be under section 3642. submit to the Postal Regulatory Commission met. ‘‘(b) DEFINITION.—For purposes of this sub- a detailed report and explanation of the ‘‘(2) AGREEMENTS LESS THAN NATIONAL IN chapter, the term ‘costs attributable’, as Postal Service’s reasons for establishing or SCOPE.—In the case of a service agreement used with respect to a product, means the di- maintaining the rate, setting forth the data, under this section that is less than national rect and indirect postal costs attributable to economic analyses, and other information in scope, the information described under such product. relied on by the Postal Service to justify the paragraph (1) shall also be published by the ‘‘(c) RULE OF CONSTRUCTION.—Mail matter rate. Postal Service in a manner designed to af- referred to in subsection (a) shall, for pur- ‘‘(f) TRANSITION RULE.—Until regulations ford reasonable notice to persons within any poses of this subchapter, be considered to under this section first take effect, rates and geographic area to which such agreement (or have the meaning given to such mail matter classes for market-dominant products shall any amendment to that agreement) pertains. under the mail classification schedule. remain subject to modification in accord- ‘‘(e) EQUAL TREATMENT REQUIRED.—If the ‘‘(d) LIMITATION.—Notwithstanding any ance with the provisions of this chapter and Postal Service enters into a service agree- other provision of this section, nothing in section 407, as such provisions were last in ment with a mailer under this section, the this subchapter shall be considered to apply effect before the date of the enactment of Postal Service shall make such agreement with respect to any product then currently this section. available to similarly situated mailers on in the market-dominant category of mail. functionally equivalent terms and conditions ‘‘§ 3623. Service agreements for market-domi- ‘‘§ 3632. Action of the Governors consistent with the regulatory system estab- nant products lished under section 3622 without unreason- ‘‘(a) AUTHORITY TO ESTABLISH RATES AND ‘‘(a) IN GENERAL.— able distinctions based on mailer profiles, CLASSES.—The Governors, with the written ‘‘(1) AUTHORITY.—The Postal Service may provided that such distinctions, if ignored, concurrence of a majority of all of the Gov- enter into service agreements with a cus- would not render any subsequent agreement ernors then holding office, shall establish tomer or group of customers that provide for uneconomic or impractical. rates and classes for products in the com- the provision of postal services under terms, ‘‘(f) COMPLAINTS.—Any person who believes petitive category of mail in accordance with conditions, or service standards that differ that a service agreement under this section the requirements of this subchapter and reg- from those that would apply under the other- is not in conformance with the requirements ulations promulgated under section 3633. wise applicable classification of market- of this section, or who is aggrieved by a deci- ‘‘(b) PROCEDURES.— dominant mail. sion of the Postal Service not to enter into ‘‘(1) IN GENERAL.—Rates and classes shall ‘‘(2) AGREEMENTS.—An agreement under an agreement under this section, may file a be established in writing, complete with a this section may involve— complaint with the Postal Regulatory Com- statement of explanation and justification, ‘‘(A) performance by the contracting mail mission in accordance with section 3662. and the date as of which each such rate or user of mail preparation, processing, trans- ‘‘(g) POSTAL REGULATORY COMMISSION class takes effect. portation, or other functions; ROLE.— ‘‘(2) PUBLIC NOTICE; REVIEW; AND COMPLI- ‘‘(B) performance by the Postal Service of ‘‘(1) REGULATIONS.—The Postal Regulatory ANCE.—Not later than 30 days before the date additional mail preparation, processing, Commission may promulgate such regula- of implementation of any adjustment in transportation, or other functions; or tions regarding service agreements as the rates under this section— ‘‘(C) other terms and conditions that meet Commission determines necessary to imple- ‘‘(A) the Governors shall provide public no- the requirements of subsections (b) and (c). ment the requirements of this section. tice of the adjustment and an opportunity ‘‘(b) REQUIREMENTS.—A service agreement ‘‘(2) REVIEW.—The Postal Regulatory Com- for review by the Postal Regulatory Commis- under this section may be entered into only mission may review any agreement or pro- sion; if each of the following conditions is met: posed agreement under this section and may ‘‘(B) the Postal Rate Commission shall no- ‘‘(1) The total revenue generated under the suspend, cancel, or prevent such agreement tify the Governors of any noncompliance of agreement— if the Commission finds that the agreement the adjustment with section 3633; and ‘‘(A) will cover all Postal Service costs at- does not meet the requirements of this sec- ‘‘(C) the Governors shall respond to the no- tributable to the postal services covered by tion. tice provided under subparagraph (B) and de- the agreement; and ‘‘(h) INTERPRETATION.—The determination scribe the actions to be taken to comply ‘‘(B) will result in no less contribution to of whether the revenue generated under the with section 3633. the institutional costs of the Postal Service agreement meets the requirements of sub- ‘‘(c) TRANSITION RULE.—Until regulations than would have been generated had the section (b)(1)(B) shall be based, to the extent under section 3633 first take effect, rates and agreement not been entered into. practicable, on the actual contribution of classes for competitive products shall re- ‘‘(2) Rates or fees for other mailers will not the mail involved, not on the average con- main subject to modification in accordance increase as a result of the agreement. tribution made by the mail classification with the provisions of this chapter and sec- ‘‘(3) The agreement pertains exclusively to most similar to the services performed under tion 407, as such provisions were as last in ef- products in the market-dominant category the agreement. If mailer-specific data is not fect before the date of the enactment of this of mail. available, the bases for the determination section.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00097 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5990 CONGRESSIONAL RECORD — SENATE May 20, 2004 ‘‘§ 3633. Provisions applicable to rates for under the preceding sentence (subject to the removing products from the lists, or trans- competitive products same exception as set forth in section ferring products between the lists. ‘‘The Postal Regulatory Commission shall, 504(g)(3)). ‘‘(b) CRITERIA.—All determinations by the within 180 days after the date of the enact- ‘‘(d) DURATION.— Postal Regulatory Commission under sub- ment of this section, promulgate (and may ‘‘(1) IN GENERAL.—A market test of a prod- section (a) shall be made in accordance with from time to time thereafter revise) regula- uct under this section may be conducted the following criteria: tions to— over a period of not to exceed 24 months. ‘‘(1) The market-dominant category of ‘‘(1) prohibit the subsidization of competi- ‘‘(2) EXTENSION AUTHORITY.—If necessary in products shall consist of each product in the tive products by market-dominant products; order to determine the feasibility or desir- sale of which the Postal Service exercises ‘‘(2) ensure that each competitive product ability of a product being tested under this sufficient market power that it can effec- covers its costs attributable; and section, the Postal Regulatory Commission tively set the price of such product substan- ‘‘(3) ensure that all competitive products may, upon written application of the Postal tially above costs, raise prices significantly, collectively cover their share of the institu- Service (filed not later than 60 days before decrease quality, or decrease output, without tional costs of the Postal Service.’’. the date as of which the testing of such prod- risk of losing substantial business to other SEC. 203. PROVISIONS RELATING TO EXPERI- uct would otherwise be scheduled to termi- firms offering similar products. The competi- MENTAL AND NEW PRODUCTS. nate under paragraph (1)), extend the testing tive category of products shall consist of all Subchapter III of chapter 36 of title 39, of such product for not to exceed an addi- other products. United States Code, is amended to read as tional 12 months. ‘‘(2) EXCLUSION OF PRODUCTS COVERED BY follows: ‘‘(e) DOLLAR-AMOUNT LIMITATION.— POSTAL MONOPOLY.—A product covered by the ‘‘SUBCHAPTER III—PROVISIONS RELAT- ‘‘(1) IN GENERAL.—A product may only be postal monopoly shall not be subject to ING TO EXPERIMENTAL AND NEW tested under this section if the total reve- transfer under this section from the market- PRODUCTS nues that are anticipated, or in fact received, dominant category of mail. For purposes of ‘‘§ 3641. Market tests of experimental prod- by the Postal Service from such product do the preceding sentence, the term ‘product ucts not exceed $10,000,000 in any year, subject to covered by the postal monopoly’ means any paragraph (2) and subsection (g). product the conveyance or transmission of ‘‘(a) AUTHORITY.— ‘‘(2) EXEMPTION AUTHORITY.—The Postal which is reserved to the United States under ‘‘(1) IN GENERAL.—The Postal Service may Regulatory Commission may, upon written conduct market tests of experimental prod- section 1696 of title 18, subject to the same application of the Postal Service, exempt the ucts in accordance with this section. exception as set forth in the last sentence of market test from the limit in paragraph (1) section 409(e)(1). ‘‘(2) PROVISIONS WAIVED.—A product shall if the total revenues that are anticipated, or not, while it is being tested under this sec- ‘‘(3) ADDITIONAL CONSIDERATIONS.—In mak- in fact received, by the Postal Service from tion, be subject to the requirements of sec- ing any decision under this section, due re- such product do not exceed $50,000,000 in any tions 3622, 3633, or 3642, or regulations pro- gard shall be given to— year, subject to subsection (g). In reviewing mulgated under those sections. ‘‘(A) the availability and nature of enter- an application under this paragraph, the ‘‘(b) CONDITIONS.—A product may not be prises in the private sector engaged in the tested under this section unless it satisfies Postal Regulatory Commission shall approve delivery of the product involved; each of the following: such application if it determines that— ‘‘(B) the views of those who use the product ‘‘(A) the product is likely to benefit the ‘‘(1) SIGNIFICANTLY DIFFERENT PRODUCT.— involved on the appropriateness of the pro- The product is, from the viewpoint of the public and meet an expected demand; posed action; and mail users, significantly different from all ‘‘(B) the product is likely to contribute to ‘‘(C) the likely impact of the proposed ac- products offered by the Postal Service within the financial stability of the Postal Service; tion on small business concerns (within the the 2-year period preceding the start of the and meaning of section 3641(h)). test. ‘‘(C) the product is not likely to result in ‘‘(c) TRANSFERS OF SUBCLASSES AND OTHER unfair or otherwise inappropriate competi- ‘‘(2) MARKET DISRUPTION.—The introduc- SUBORDINATE UNITS ALLOWABLE.—Nothing in tion or continued offering of the product will tion. this title shall be considered to prevent ‘‘(f) CANCELLATION.—If the Postal Regu- not create an unfair or otherwise inappro- transfers under this section from being made latory Commission at any time determines priate competitive advantage for the Postal by reason of the fact that they would involve that a market test under this section fails to Service or any mailer, particularly in regard only some (but not all) of the subclasses or meet 1 or more of the requirements of this to small business concerns (as defined under other subordinate units of the class of mail section, it may order the cancellation of the subsection (h)). or type of postal service involved (without test involved or take such other action as it ‘‘(3) CORRECT CATEGORIZATION.—The Postal regard to satisfaction of minimum quantity considers appropriate. A determination Service identifies the product, for the pur- requirements standing alone). under this subsection shall be made in ac- pose of a test under this section, as either ‘‘(d) NOTIFICATION AND PUBLICATION RE- cordance with such procedures as the Com- market-dominant or competitive, consistent QUIREMENTS.— mission shall by regulation prescribe. with the criteria under section 3642(b)(1). ‘‘(1) NOTIFICATION REQUIREMENT.—The Post- ‘‘(g) ADJUSTMENT FOR INFLATION.—For pur- Costs and revenues attributable to a product al Service shall, whenever it requests to add poses of each year following the year in identified as competitive shall be included in a product or transfer a product to a different which occurs the deadline for the Postal any determination under section 3633(3) (re- category, file with the Postal Regulatory Service’s first report to the Postal Regu- lating to provisions applicable to competi- Commission and publish in the Federal Reg- latory Commission under section 3652(a), tive products collectively). Any test that ister a notice setting out the basis for its de- each dollar amount contained in this section solely affects products currently classified as termination that the product satisfies the shall be adjusted by the change in the Con- competitive, or which provides services an- criteria under subsection (b) and, in the case sumer Price Index for such year (as deter- cillary to only competitive products, shall be of a request to add a product or transfer a mined under regulations of the Commission). presumed to be in the competitive product product to the competitive category of mail, ‘‘(h) DEFINITION OF A SMALL BUSINESS CON- category without regard to whether a simi- that the product meets the regulations pro- CERN.—The criteria used in defining small lar ancillary product exists for market-domi- mulgated by the Postal Regulatory Commis- business concerns or otherwise categorizing nant products. sion under section 3633. The provisions of business concerns as small business concerns ‘‘(c) NOTICE.— section 504(g) shall be available with respect shall, for purposes of this section, be estab- ‘‘(1) IN GENERAL.—At least 30 days before to any information required to be filed. lished by the Postal Regulatory Commission initiating a market test under this section, ‘‘(2) PUBLICATION REQUIREMENT.—The Post- the Postal Service shall file with the Postal in conformance with the requirements of sec- al Regulatory Commission shall, whenever it Regulatory Commission and publish in the tion 3 of the Small Business Act. changes the list of products in the market- ‘‘(i) EFFECTIVE DATE.—Market tests under Federal Register a notice— dominant or competitive category of mail, this subchapter may be conducted in any ‘‘(A) setting out the basis for the Postal prescribe new lists of products. The revised year beginning with the first year in which Service’s determination that the market test lists shall indicate how and when any pre- occurs the deadline for the Postal Service’s is covered by this section; and vious lists (including the lists under sections first report to the Postal Regulatory Com- ‘‘(B) describing the nature and scope of the 3621 and 3631) are superseded, and shall be mission under section 3652(a). market test. published in the Federal Register. ‘‘(2) SAFEGUARDS.—For a competitive ex- ‘‘§ 3642. New products and transfers of prod- ‘‘(e) PROHIBITION.—Except as provided in perimental product, the provisions of section ucts between the market-dominant and section 3641, no product that involves the 504(g) shall be available with respect to any competitive categories of mail physical delivery of letters, printed matter, information required to be filed under para- ‘‘(a) IN GENERAL.—Upon request of the or packages may be offered by the Postal graph (1) to the same extent and in the same Postal Service or users of the mails, or upon Service unless it has been assigned to the manner as in the case of any matter de- its own initiative, the Postal Regulatory market-dominant or competitive category of scribed in section 504(g)(1). Nothing in para- Commission may change the list of market- mail (as appropriate) either— graph (1) shall be considered to permit or re- dominant products under section 3621 and ‘‘(1) under this subchapter; or quire the publication of any information as the list of competitive products under sec- ‘‘(2) by or under any other provision of to which confidential treatment is accorded tion 3631 by adding new products to the lists, law.’’.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00098 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5991 SEC. 204. REPORTING REQUIREMENTS AND RE- (b) with respect to service agreements (in- ‘‘(3) performance plan under section 2803; LATED PROVISIONS. cluding service agreements entered into and (a) REDESIGNATION.—Chapter 36 of title 39, under section 3623) and experimental prod- ‘‘(4) program performance reports under United States Code (as in effect before the ucts offered through market tests under sec- section 2804. amendment made by subsection (b)) is tion 3641 in a year, the Postal Service— ‘‘§ 3653. Annual determination of compliance amended— ‘‘(1) may report summary data on the ‘‘(a) OPPORTUNITY FOR PUBLIC COMMENT.— (1) by striking the heading for subchapter costs, revenues, and quality of service by After receiving the reports required under IV and inserting the following: service agreement and market test; and section 3652 for any year, the Postal Regu- ‘‘(2) shall report such data as the Postal ‘‘SUBCHAPTER V—POSTAL SERVICES, latory Commission shall promptly provide Regulatory Commission requires. COMPLAINTS, AND JUDICIAL REVIEW’’; an opportunity for comment on such reports and ‘‘(d) SUPPORTING MATTER.—The Postal Reg- by users of the mails, affected parties, and (2) by striking the heading for subchapter ulatory Commission shall have access, in ac- an officer of the Commission who shall be re- V and inserting the following: cordance with such regulations as the Com- quired to represent the interests of the gen- mission shall prescribe, to the working pa- ‘‘SUBCHAPTER VI—GENERAL’’. eral public. pers and any other supporting matter of the ‘‘(b) DETERMINATION OF COMPLIANCE OR (b) REPORTS AND COMPLIANCE.—Chapter 36 Postal Service and the Inspector General in NONCOMPLIANCE.—Not later than 90 days of title 39, United States Code, is amended by connection with any information submitted inserting after subchapter III the following: after receiving the submissions required under this section. under section 3652 with respect to a year, the ‘‘SUBCHAPTER IV—REPORTING RE- ‘‘(e) CONTENT AND FORM OF REPORTS.— Postal Regulatory Commission shall make a QUIREMENTS AND RELATED PROVI- ‘‘(1) IN GENERAL.—The Postal Regulatory written determination as to— SIONS Commission shall, by regulation, prescribe ‘‘(1) whether any rates or fees in effect dur- ‘‘§ 3651. Annual reports by the Commission the content and form of the public reports ing such year (for products individually or (and any nonpublic annex and supporting ‘‘(a) IN GENERAL.—The Postal Regulatory collectively) were not in compliance with ap- Commission shall submit an annual report to matter relating to the report) to be provided plicable provisions of this chapter (or regula- the President and the Congress concerning by the Postal Service under this section. In tions promulgated thereunder); or the operations of the Commission under this carrying out this subsection, the Commis- ‘‘(2) whether any service standards in ef- title, including the extent to which regula- sion shall give due consideration to— fect during such year were not met. ‘‘(A) providing the public with timely, ade- tions are achieving the objectives under sec- If, with respect to a year, no instance of non- tions 3622, 3633, and 3691. quate information to assess the lawfulness of rates charged; compliance is found under this subsection to ‘‘(b) INFORMATION FROM POSTAL SERVICE.— have occurred in such year, the written de- The Postal Service shall provide the Postal ‘‘(B) avoiding unnecessary or unwarranted administrative effort and expense on the termination shall be to that effect. Regulatory Commission with such informa- ‘‘(c) IF ANY NONCOMPLIANCE IS FOUND.—If, part of the Postal Service; and tion as may, in the judgment of the Commis- for a year, a timely written determination of ‘‘(C) protecting the confidentiality of com- sion, be necessary in order for the Commis- noncompliance is made under subsection (b), mercially sensitive information. sion to prepare its reports under this section. the Postal Regulatory Commission shall ‘‘(2) REVISED REQUIREMENTS.—The Commis- ‘‘§ 3652. Annual reports to the Commission sion may, on its own motion or on request of take any appropriate remedial action authorized by section 3662(c). ‘‘(a) COSTS, REVENUES, RATES, AND SERV- an interested party, initiate proceedings (to ‘‘(d) REBUTTABLE PRESUMPTION.—A timely ICE.—Except as provided in subsection (c), be conducted in accordance with regulations written determination described in the last the Postal Service shall, no later than 90 that the Commission shall prescribe) to im- sentence of subsection (b) shall, for purposes days after the end of each year, prepare and prove the quality, accuracy, or completeness of any proceeding under section 3662, create submit to the Postal Regulatory Commission of Postal Service data required by the Com- a rebuttable presumption of compliance by a report (together with such nonpublic annex mission under this subsection whenever it the Postal Service (with regard to the mat- to the report as the Commission may require shall appear that— ters described in paragraphs (1) through (3) under subsection (e))— ‘‘(A) the attribution of costs or revenues to of subsection (b)) during the year to which ‘‘(1) which shall analyze costs, revenues, products has become significantly inac- such determination relates.’’. rates, and quality of service in sufficient de- curate or can be significantly improved; tail to demonstrate that all products during ‘‘(B) the quality of service data has become SEC. 205. COMPLAINTS; APPELLATE REVIEW AND such year complied with all applicable re- significantly inaccurate or can be signifi- ENFORCEMENT. quirements of this title; and cantly improved; or Chapter 36 of title 39, United States Code, ‘‘(2) which shall, for each market-dominant ‘‘(C) such revisions are, in the judgment of is amended by striking sections 3662 and 3663 product provided in such year, provide— the Commission, otherwise necessitated by and inserting the following: ‘‘(A) product information, including mail the public interest. ‘‘§ 3662. Rate and service complaints volumes; and ‘‘(f) CONFIDENTIAL INFORMATION.— ‘‘(a) IN GENERAL.—Interested persons (in- ‘‘(B) measures of the service afforded by ‘‘(1) IN GENERAL.—If the Postal Service de- cluding an officer of the Postal Regulatory the Postal Service in connection with such termines that any document or portion of a Commission representing the interests of the product, including— document, or other matter, which it provides general public) who believe the Postal Serv- ‘‘(i) the level of service (described in terms to the Postal Regulatory Commission in a ice is not operating in conformance with the of speed of delivery and reliability) provided; nonpublic annex under this section or under requirements of chapter 1, 4, or 6, or this and subsection (d) contains information which is chapter (or regulations promulgated under ‘‘(ii) the degree of customer satisfaction described in section 410(c) of this title, or ex- any of those chapters) may lodge a com- with the service provided. empt from public disclosure under section plaint with the Postal Regulatory Commis- Before submitting a report under this sub- 552(b) of title 5, the Postal Service shall, at sion in such form and manner as the Com- section (including any annex to the report the time of providing such matter to the mission may prescribe. and the information required under sub- Commission, notify the Commission of its ‘‘(b) PROMPT RESPONSE REQUIRED.— section (b)), the Postal Service shall have determination, in writing, and describe with ‘‘(1) IN GENERAL.—The Postal Regulatory the information contained in such report particularity the documents (or portions of Commission shall, within 90 days after re- (and annex) audited by the Inspector Gen- documents) or other matter for which con- ceiving a complaint under subsection (a), ei- eral. The results of any such audit shall be fidentiality is sought and the reasons there- ther— submitted along with the report to which it for. ‘‘(A) begin proceedings on such complaint; pertains. ‘‘(2) TREATMENT.—Any information or or ‘‘(b) INFORMATION RELATING TO WORKSHARE other matter described in paragraph (1) to ‘‘(B) issue an order dismissing the com- DISCOUNTS.—The Postal Service shall in- which the Commission gains access under plaint (together with a statement of the rea- clude, in each report under subsection (a), this section shall be subject to paragraphs (2) sons therefor). the following information with respect to and (3) of section 504(g) in the same way as ‘‘(2) TREATMENT OF COMPLAINTS NOT TIMELY each market-dominant product for which a if the Commission had received notification ACTED ON.—For purposes of section 3663, any workshare discount was in effect during the with respect to such matter under section complaint under subsection (a) on which the period covered by such report: 504(g)(1). Commission fails to act in the time and man- ‘‘(1) The per-item cost avoided by the Post- ‘‘(g) OTHER REPORTS.—The Postal Service ner required by paragraph (1) shall be treated al Service by virtue of such discount. shall submit to the Postal Regulatory Com- in the same way as if it had been dismissed ‘‘(2) The percentage of such per-item cost mission, together with any other submission under an order issued by the Commission on avoided that the per-item workshare dis- that the Postal Service is required to make the last day allowable for the issuance of count represents. under this section in a year, copies of its such order under paragraph (1). ‘‘(3) The per-item contribution made to in- then most recent— ‘‘(c) ACTION REQUIRED IF COMPLAINT FOUND stitutional costs. ‘‘(1) comprehensive statement under sec- TO BE JUSTIFIED.—If the Postal Regulatory ‘‘(c) SERVICE AGREEMENTS AND MARKET tion 2401(e); Commission finds the complaint to be justi- TESTS.—In carrying out subsections (a) and ‘‘(2) strategic plan under section 2802; fied, it shall order that the Postal Service

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00099 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5992 CONGRESSIONAL RECORD — SENATE May 20, 2004 take such action as the Commission con- ‘‘SUBCHAPTER IV—REPORTING RE- section 3691 of title 39, United States Code, siders appropriate in order to achieve com- QUIREMENTS AND RELATED PROVI- as added by this Act, the Postal Service pliance with the applicable requirements and SIONS shall, in consultation with the Postal Regu- to remedy the effects of any noncompliance ‘‘3651. Annual reports by the Commission. latory Commission, develop and submit to including ordering unlawful rates to be ad- ‘‘3652. Annual reports to the Commission. Congress a plan for meeting those standards. (b) CONTENT.—The plan under this section justed to lawful levels, ordering the cancella- ‘‘3653. Annual determination of compliance. tion of market tests, ordering the Postal shall— ‘‘SUBCHAPTER V—POSTAL SERVICES, Service to discontinue providing loss-making (1) establish performance goals; COMPLAINTS, AND JUDICIAL REVIEW products, and requiring the Postal Service to (2) describe any changes to the Postal make up for revenue shortfalls in competi- ‘‘3661. Postal Services. Service’s processing, transportation, deliv- tive products. ‘‘3662. Rate and service complaints. ery, and retail networks necessary to allow ‘‘(d) AUTHORITY TO ORDER FINES IN CASES ‘‘3663. Appellate review. the Postal Service to meet the performance OF DELIBERATE NONCOMPLIANCE.—In addition, ‘‘3664. Enforcement of orders. goals; and in cases of deliberate noncompliance by the ‘‘SUBCHAPTER VI—GENERAL (3) describe any changes to planning and performance management documents pre- Postal Service with the requirements of this ‘‘3681. Reimbursement. viously submitted to Congress to reflect new title, the Postal Regulatory Commission ‘‘3682. Size and weight limits. performance goals. may order, based on the nature, cir- ‘‘3683. Uniform rates for books; films, other (c) POSTAL FACILITIES.—The Postal Service cumstances, extent, and seriousness of the materials. noncompliance, a fine (in the amount speci- plan shall include a description of its long- ‘‘3684. Limitations. term vision for rationalizing its infrastruc- fied by the Commission in its order) for each ‘‘3685. Filing of information relating to peri- incidence of noncompliance. Fines resulting ture and workforce and how it intends to im- odical publications. plement that vision, including— from the provision of competitive products ‘‘3686. Bonus authority. shall be paid out of the Competitive Prod- (1) a strategy for how it intends to ration- ‘‘SUBCHAPTER VII—MODERN SERVICE ucts Fund established in section 2011. All realize the postal facilities network and re- STANDARDS ceipts from fines imposed under this sub- move excess processing capacity and space section shall be deposited in the general fund ‘‘3691. Establishment of modern service from the network, including estimated time- of the Treasury of the United States. standards.’’. frames, criteria and processes to be used for TITLE III—MODERN SERVICE STANDARDS making changes to the facilities network, ‘‘§ 3663. Appellate review and the process for engaging policy makers ‘‘A person, including the Postal Service, SEC. 301. ESTABLISHMENT OF MODERN SERVICE and the public in related decisions; adversely affected or aggrieved by a final STANDARDS. (2) an update on how postal decisions re- order or decision of the Postal Regulatory Chapter 36 of title 39, United States Code, lated to mail changes, security, automation Commission may, within 30 days after such as amended by this Act, is further amended initiatives, worksharing, information tech- order or decision becomes final, institute by adding at the end the following: nology systems, and other areas will impact proceedings for review thereof by filing a pe- ‘‘SUBCHAPTER VII—MODERN SERVICE network rationalization plans; tition in the United States Court of Appeals STANDARDS (3) a discussion of what impact any facility for the District of Columbia. The court shall ‘‘§ 3691. Establishment of modern service changes may have on the postal workforce review the order or decision in accordance standards and whether the Postal Service has suffi- with section 706 of title 5, and chapter 158 cient flexibility to make needed workforce ‘‘(a) AUTHORITY GENERALLY.—The Postal and section 2112 of title 28, on the basis of Regulatory Commission shall, within 12 changes; and the record before the Commission. months after the date of the enactment of (4) an identification of anticipated costs, ‘‘§ 3664. Enforcement of orders this section, by regulation establish (and cost savings, and other benefits associated with the infrastructure rationalization alter- ‘‘The several district courts have jurisdic- may from time to time thereafter by regula- natives discussed in the plan. tion specifically to enforce, and to enjoin tion revise) a set of service standards for (d) ALTERNATE RETAIL OPTIONS.—The Post- market-dominant products consistent with and restrain the Postal Service from vio- al Service plan shall include plans to expand sections 101 (a) and (b) and 403. lating, any order issued by the Postal Regu- and market retail access to postal services, ‘‘(b) OBJECTIVES.—Such standards shall be latory Commission.’’. in addition to post offices, including— designed to achieve the following objectives: SEC. 206. CLERICAL AMENDMENT. (1) vending machines; ‘‘(1) To enhance and preserve the value of Chapter 36 of title 39, United States Code, (2) the Internet; postal services to both senders and recipi- is amended by striking the heading and anal- (3) Postal Service employees on delivery ents. ysis for such chapter and inserting the fol- routes; and ‘‘(2) To provide a system of objective exter- lowing: (4) retail facilities in which overhead costs nal performance measurements for each are shared with private businesses and other ‘‘CHAPTER 36—POSTAL RATES, CLASSES, market-dominant product as a basis for government agencies. AND SERVICES measurement of Postal Service performance. (e) REEMPLOYMENT ASSISTANCE AND RE- ‘‘SUBCHAPTER I—PROVISIONS RELATING ‘‘(3) To guarantee Postal Service cus- TIREMENT BENEFITS.—The Postal Service TO MARKET-DOMINANT PRODUCTS tomers delivery reliability, speed and fre- plan shall include— ‘‘Sec. quency consistent with reasonable rates and (1) a plan under which reemployment as- ‘‘3621. Applicability; definitions. best business practices. sistance shall be afforded to employees dis- ‘‘3622. Modern rate regulation. ‘‘(c) FACTORS.—In establishing or revising placed as a result of the automation or pri- ‘‘3623. Service agreements for market-domi- such standards, the Postal Regulatory Com- vatization of any of its functions or the clos- nant products. mission shall take into account— ing and consolidation of any of its facilities; ‘‘[3624. Repealed.] ‘‘(1) the actual level of service that Postal and ‘‘[3625. Repealed.] Service customers receive under any service (2) a plan, developed in consultation with ‘‘3626. Reduced Rates. guidelines previously established by the the Office of Personnel Management, to offer ‘‘3627. Adjusting free rates. Postal Service or service standards estab- early retirement benefits. ‘‘[3628. Repealed.] lished under this section; (f) INSPECTOR GENERAL REPORT.— ‘‘3629. Reduced rates for voter registration ‘‘(2) the degree of customer satisfaction (1) IN GENERAL.—Before submitting the purposes. with Postal Service performance in the ac- plan under this section to Congress, the ceptance, processing and delivery of mail; ‘‘SUBCHAPTER II—PROVISIONS Postal Service shall submit the plan to the ‘‘(3) mail volume and revenues projected RELATING TO COMPETITIVE PRODUCTS Inspector General of the United States Post- for future years; al Service in a timely manner to carry out ‘‘3631. Applicability; definitions and updates. ‘‘(4) the projected growth in the number of this subsection. ‘‘3632. Action of the Governors. addresses the Postal Service will be required (2) REPORT.—The Inspector General shall ‘‘3633. Provisions applicable to rates for com- to serve in future years; prepare a report describing the extent to petitive products. ‘‘(5) the current and projected future cost which the Postal Service plan— ‘‘3634. Assumed Federal income tax on com- of serving Postal Service customers; (A) is consistent with the continuing obli- petitive products. ‘‘(6) the effect of changes in technology, de- gations of the Postal Service under title 39, ‘‘SUBCHAPTER III—PROVISIONS RELAT- mographics and population distribution on United States Code; and ING TO EXPERIMENTAL AND NEW the efficient and reliable operation of the (B) provides for the Postal Service to meet PRODUCTS postal delivery system; and the service standards established under sec- ‘‘3641. Market tests of experimental prod- ‘‘(7) the policies of this title as well as such tion 3691. ucts. other factors as the Commission determines (3) SUBMISSION OF REPORT.—The Postal ‘‘3642. New products and transfers of products appropriate.’’. Service shall submit the report of the Inspec- between the market-dominant SEC. 302. POSTAL SERVICE PLAN. tor General under this subsection with the and competitive categories of (a) IN GENERAL.—Within 6 months after the plan submitted to Congress under subsection mail. establishment of the service standards under (a).

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00100 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5993 TITLE IV—PROVISIONS RELATING TO ‘‘(C) stipulations concerning the subse- counting firm and such other advisors as it FAIR COMPETITION quent issuance of obligations or the execu- considers appropriate, shall develop rec- SEC. 401. POSTAL SERVICE COMPETITIVE PROD- tion of leases or lease purchases relating to ommendations regarding— UCTS FUND. properties of the Postal Service; and ‘‘(A) the accounting practices and prin- (a) PROVISIONS RELATING TO POSTAL SERV- ‘‘(D) such other matters as the Postal ciples that should be followed by the Postal ICE COMPETITIVE PRODUCTS FUND AND RE- Service considers necessary or desirable to Service with the objectives of identifying the LATED MATTERS.— enhance the marketability of such obliga- capital and operating costs incurred by the (1) IN GENERAL.—Chapter 20 of title 39, tions. Postal Service in providing competitive United States Code, is amended by adding at ‘‘(3) Obligations issued by the Postal Serv- products, and preventing the cross-subsidiza- the end the following: ice under this subsection— tion of such products by market-dominant ‘‘§ 2011. Provisions relating to competitive ‘‘(A) may not be purchased by the Sec- products; and products retary of the Treasury; ‘‘(B) the substantive and procedural rules ‘‘(B) shall not be exempt either as to prin- that should be followed in determining the ‘‘(a) There is established in the Treasury of cipal or interest from any taxation now or Postal Service’s assumed Federal income tax the United States a revolving fund, to be hereafter imposed by any State or local tax- on competitive products income for any year called the Postal Service Competitive Prod- ing authority; (within the meaning of section 3634). ucts Fund, which shall be available to the ‘‘(C) shall not be obligations of, nor shall Postal Service without fiscal year limitation Such recommendations shall be submitted to payment of the principal thereof or interest for the payment of— the Postal Regulatory Commission no later thereon be guaranteed by, the Government ‘‘(1) costs attributable to competitive prod- than 12 months after the effective date of of the United States, and the obligations ucts; and this section. shall so plainly state; and ‘‘(2)(A) Upon receiving the recommenda- ‘‘(2) all other costs incurred by the Postal ‘‘(D) notwithstanding the provisions of the tions of the Postal Service under paragraph Service, to the extent allocable to competi- Federal Financing Bank Act of 1973 or any (1), the Commission shall give interested tive products. other provision of law (except as specifically parties, including the Postal Service, enter- For purposes of this subsection, the term provided by reference to this subparagraph prises in the private sector of the economy ‘costs attributable’ has the meaning given in a law enacted after this subparagraph engaged in the delivery of mail matter other such term by section 3631. takes effect), shall not be eligible for pur- than letters, users of the mails, and an offi- ‘‘(b) There shall be deposited in the Com- chase by, commitment to purchase by, or cer of the Commission who shall be required petitive Products Fund, subject to with- sale or issuance to, the Federal Financing to represent the interests of the general pub- drawal by the Postal Service— Bank. lic, an opportunity to present their views on ‘‘(1) revenues from competitive products; ‘‘(4)(A) This paragraph applies with respect those recommendations through submission ‘‘(2) amounts received from obligations to the period beginning on the date of the en- of written data, views, or arguments with or issued by the Postal Service under sub- actment of this paragraph and ending at the without opportunity for oral presentation, or section (e); close of the 5-year period which begins on in such other manner as the Commission ‘‘(3) interest and dividends earned on in- the date on which the Postal Service makes considers appropriate. vestments of the Competitive Products its submission under subsection (h)(1). ‘‘(B) After due consideration of the views Fund; and ‘‘(B) During the period described in sub- and other information received under sub- ‘‘(4) any other receipts of the Postal Serv- paragraph (A), nothing in subparagraph (A) paragraph (A), the Commission shall by ice (including from the sale of assets), to the or (D) of paragraph (3) or the last sentence of rule— extent allocable to competitive products. section 2006(b) shall, with respect to any ob- ‘‘(i) provide for the establishment and ap- ‘‘(c) If the Postal Service determines that ligations sought to be issued by the Postal plication of the accounting practices and the moneys of the Competitive Products Service under this subsection, be considered principles which shall be followed by the Fund are in excess of current needs, it may to affect such obligations’ eligibility for pur- Postal Service; invest such amounts as it considers appro- chase by, commitment to purchase by, or ‘‘(ii) provide for the establishment and ap- priate in accordance with regulations which sale or issuance to, the Federal Financing plication of the substantive and procedural the Secretary of the Treasury shall prescribe Bank. rules described in paragraph (1)(B); and within 12 months after the date of enactment ‘‘(C) The Federal Financing Bank may ‘‘(iii) provide for the submission by the of the Postal Accountability and Enhance- elect to purchase such obligations under Postal Service to the Postal Regulatory ment Act. such terms, including rates of interest, as Commission of annual and other periodic re- ‘‘(d) The Postal Service may, in its sole the Bank and the Postal Service may agree, ports setting forth such information as the discretion, provide that moneys of the Com- but at a rate of yield no less than the pre- Commission may require. petitive Products Fund be deposited in a vailing yield on outstanding marketable se- Final rules under this subparagraph shall be Federal Reserve bank or a depository for curities of comparable maturity issued by issued not later than 12 months after the public funds. entities with the same credit rating as the date on which the Postal Service makes its ‘‘(e)(1) Subject to the limitations specified rating then most recently obtained by the submission to the Commission under para- in section 2005(a), the Postal Service is au- Postal Service under subparagraph (D), as graph (1) (or by such later date as the Com- thorized to borrow money and to issue and determined by the Bank. mission and the Postal Service may agree sell such obligations as it determines nec- ‘‘(D) In order to be eligible to borrow under to). If final rules are not issued by the Com- essary to provide for competitive products this paragraph, the Postal Service shall first mission by the deadline under the preceding and deposit such amounts in the Competitive obtain a credit rating from a nationally rec- sentence, the recommendations submitted Products Fund, except that the Postal Serv- ognized credit rating organization. Such rat- by the Postal Service under paragraph (1) ice may pledge only assets related to the ing— shall be treated as the final rules. The Com- provision of competitive products (as deter- ‘‘(i) shall be determined taking into ac- mission is authorized to promulgate regula- mined under subsection (h) or, for purposes count only those assets and activities of the tions revising such rules. of any period before accounting practices Postal Service which are described in section ‘‘(C) Reports described in subparagraph and principles under subsection (h) have been 3634(a)(2) (relating to the Postal Service’s as- (B)(iii) shall be submitted at such time and established and applied, the best information sumed taxable income from competitive in such form, and shall include such informa- available from the Postal Service, including products); and tion, as the Commission by rule requires. the audited statements required by section ‘‘(ii) may, before final rules of the Postal The Commission may, on its own motion or 2008(e)), and the revenues and receipts from Regulatory Commission under subsection (h) on request of an interested party, initiate such products, for the payment of the prin- are issued (or deemed to have been issued), proceedings (to be conducted in accordance cipal of or interest on such obligations, for be based on the best information available with such rules as the Commission shall pre- the purchase or redemption thereof, and for from the Postal Service, including the au- scribe) to improve the quality, accuracy, or other purposes incidental thereto, including dited statements required by section 2008(e). completeness of Postal Service data under creation of reserve, sinking, and other funds ‘‘(f) The receipts and disbursements of the such subparagraph whenever it shall appear which may be similarly pledged and used, to Competitive Products Fund shall be ac- that— such extent and in such manner as the Post- corded the same budgetary treatment as is ‘‘(i) the quality of the information fur- al Service determines necessary or desirable. accorded to receipts and disbursements of nished in those reports has become signifi- ‘‘(2) The Postal Service may enter into the Postal Service Fund under section 2009a. cantly inaccurate or can be significantly im- binding covenants with the holders of such ‘‘(g) A judgment against the Postal Service proved; or obligations, and with the trustee, if any, or the Government of the United States (or ‘‘(ii) such revisions are, in the judgment of under any agreement entered into in connec- settlement of a claim) shall, to the extent the Commission, otherwise necessitated by tion with the issuance thereof with respect that it arises out of activities of the Postal the public interest. to— Service in the provision of competitive prod- ‘‘(D) A copy of each report described in ‘‘(A) the establishment of reserve, sinking, ucts, be paid out of the Competitive Prod- subparagraph (B)(iii) shall also be trans- and other funds; ucts Fund. mitted by the Postal Service to the Sec- ‘‘(B) application and use of revenues and ‘‘(h)(1) The Postal Service, in consultation retary of the Treasury and the Inspector receipts of the Competitive Products Fund; with an independent, certified public ac- General of the United States Postal Service.

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‘‘(i) The Postal Service shall render an an- ‘‘(b) COMPUTATION AND TRANSFER REQUIRE- ‘‘(A) the Act of July 5, 1946 (commonly re- nual report to the Secretary of the Treasury MENTS.—The Postal Service shall, for each ferred to as the ‘Trademark Act of 1946’ (15 concerning the operation of the Competitive year beginning with the year in which occurs U.S.C. 1051 and following)); and Products Fund, in which it shall address the deadline for the Postal Service’s first re- ‘‘(B) the provisions of section 5 of the Fed- such matters as risk limitations, reserve bal- port to the Postal Regulatory Commission eral Trade Commission Act to the extent ances, allocation or distribution of moneys, under section 3652(a)— that such section 5 applies to unfair or de- liquidity requirements, and measures to ‘‘(1) compute its assumed Federal income ceptive acts or practices. safeguard against losses. A copy of its then tax on competitive products income for such ‘‘(e)(1) To the extent that the Postal Serv- most recent report under this subsection year; and ice, or other Federal agency acting on behalf shall be included with any other submission ‘‘(2) transfer from the Competitive Prod- of or in concert with the Postal Service, en- that it is required to make to the Postal ucts Fund to the Postal Service Fund the gages in conduct with respect to any product Regulatory Commission under section amount of that assumed tax. which is not reserved to the United States 3652(g).’’. ‘‘(c) DEADLINE FOR TRANSFERS.—Any trans- under section 1696 of title 18, the Postal (2) CLERICAL AMENDMENT.—The analysis for fer required to be made under this section for Service or other Federal agency (as the case chapter 20 of title 39, United States Code, is a year shall be due on or before the January may be)— amended by adding after the item relating to 15th next occurring after the close of such ‘‘(A) shall not be immune under any doc- section 2010 the following: year.’’. trine of sovereign immunity from suit in ‘‘2011. Provisions relating to competitive SEC. 403. UNFAIR COMPETITION PROHIBITED. Federal court by any person for any viola- products.’’. (a) SPECIFIC LIMITATIONS.—Chapter 4 of tion of Federal law by such agency or any of- (b) TECHNICAL AND CONFORMING AMEND- title 39, United States Code, is amended by ficer or employee thereof; and MENTS.— adding after section 404 the following: ‘‘(B) shall be considered to be a person (as (1) DEFINITION.—Section 2001 of title 39, ‘‘§ 404a. Specific limitations defined in subsection (a) of the first section United States Code, is amended by striking ‘‘(a) Except as specifically authorized by of the Clayton Act) for purposes of— ‘‘and’’ at the end of paragraph (1), by redesig- law, the Postal Service may not: ‘‘(i) the antitrust laws (as defined in such nating paragraph (2) as paragraph (3), and by ‘‘(1) establish any rule or regulation (in- subsection); and inserting after paragraph (1) the following: cluding any standard) the effect of which is ‘‘(ii) section 5 of the Federal Trade Com- ‘‘(2) ‘Competitive Products Fund’ means to preclude competition or establish the mission Act to the extent that such section the Postal Service Competitive Products terms of competition unless the Postal Serv- 5 applies to unfair methods of competition. Fund established by section 2011; and’’. ice demonstrates that the regulation does For purposes of the preceding sentence, any (2) CAPITAL OF THE POSTAL SERVICE.—Sec- not create an unfair competitive advantage private carriage of mail allowable by virtue tion 2002(b) of title 39, United States Code, is for itself or any entity funded (in whole or in of section 601 shall not be considered a serv- amended by striking ‘‘Fund,’’ and inserting part) by the Postal Service; ice reserved to the United States under sec- ‘‘Fund and the balance in the Competitive ‘‘(2) compel the disclosure, transfer, or lition 1696 of title 18. Products Fund,’’. censing of intellectual property to any third ‘‘(2) No damages, interest on damages, (3) POSTAL SERVICE FUND.— party (such as patents, copyrights, trade- costs or attorney’s fees may be recovered (A) PURPOSES FOR WHICH AVAILABLE.—Sec- marks, trade secrets, and proprietary infor- under the antitrust laws (as so defined) from tion 2003(a) of title 39, United States Code, is mation); or the Postal Service or any officer or employee amended by striking ‘‘title.’’ and inserting ‘‘(3) obtain information from a person that thereof acting in an official capacity for any ‘‘title (other than any of the purposes, func- provides (or seeks to provide) any product, conduct with respect to a product in the tions, or powers for which the Competitive and then offer any postal service that uses or market-dominant category of mail. Products Fund is available).’’. is based in whole or in part on such informa- ‘‘(3) This subsection shall not apply with (B) DEPOSITS.—Section 2003(b) of title 39, tion, without the consent of the person pro- respect to conduct occurring before the date United States Code, is amended by striking viding that information, unless substantially of the enactment of this subsection. ‘‘There’’ and inserting ‘‘Except as otherwise the same information is obtained (or obtain- ‘‘(f) To the extent that the Postal Service provided in section 2011, there’’. able) from an independent source or is other- engages in conduct with respect to the provi- (4) RELATIONSHIP BETWEEN THE TREASURY wise obtained (or obtainable). sion of competitive products, it shall be con- AND THE POSTAL SERVICE.—Section 2006 of ‘‘(b) The Postal Regulatory Commission sidered a person for the purposes of the Fed- title 39, United States Code, is amended— shall prescribe regulations to carry out this eral bankruptcy laws. (A) in subsection (b), by adding at the end section. ‘‘(g)(1) Each building constructed or al- the following: ‘‘Nothing in this chapter shall ‘‘(c) Any party (including an officer of the tered by the Postal Service shall be con- be considered to permit or require the Sec- Commission representing the interests of the structed or altered, to the maximum extent retary of the Treasury to purchase any obli- general public) who believes that the Postal feasible as determined by the Postal Service, gations of the Postal Service other than Service has violated this section may bring a in compliance with 1 of the nationally recog- those issued under section 2005.’’; and complaint in accordance with section 3662.’’. nized model building codes and with other (B) in subsection (c), by inserting ‘‘under (b) CONFORMING AMENDMENTS.— applicable nationally recognized codes. section 2005’’ before ‘‘shall be obligations’’. (1) GENERAL POWERS.—Section 401 of title ‘‘(2) Each building constructed or altered SEC. 402. ASSUMED FEDERAL INCOME TAX ON 39, United States Code, is amended by strik- by the Postal Service shall be constructed or COMPETITIVE PRODUCTS INCOME. ing ‘‘The’’ and inserting ‘‘Subject to the pro- altered only after consideration of all re- Subchapter II of chapter 36 of title 39, visions of section 404a, the’’. quirements (other than procedural require- United States Code, as amended by section (2) SPECIFIC POWERS.—Section 404(a) of title ments) of zoning laws, land use laws, and ap- 202, is amended by adding at the end the fol- 39, United States Code, is amended by strik- plicable environmental laws of a State or lowing: ing ‘‘Without’’ and inserting ‘‘Subject to the subdivision of a State which would apply to ‘‘§ 3634. Assumed Federal income tax on com- provisions of section 404a, but otherwise the building if it were not a building con- petitive products income without’’. structed or altered by an establishment of ‘‘(a) DEFINITIONS.—For purposes of this sec- (c) CLERICAL AMENDMENT.—The analysis the Government of the United States. tion— for chapter 4 of title 39, United States Code, ‘‘(3) For purposes of meeting the require- ‘‘(1) the term ‘assumed Federal income tax is amended by inserting after the item relat- ments of paragraphs (1) and (2) with respect on competitive products income’ means the ing to section 404 the following: to a building, the Postal Service shall— net income tax that would be imposed by ‘‘404a. Specific limitations.’’. ‘‘(A) in preparing plans for the building, chapter 1 of the Internal Revenue Code of SEC. 404. SUITS BY AND AGAINST THE POSTAL consult with appropriate officials of the 1986 on the Postal Service’s assumed taxable SERVICE. State or political subdivision, or both, in income from competitive products for the (a) IN GENERAL.—Section 409 of title 39, which the building will be located; year; and United States Code, is amended by striking ‘‘(B) upon request, submit such plans in a ‘‘(2) the term ‘assumed taxable income subsections (d) and (e) and inserting the fol- timely manner to such officials for review by from competitive products’, with respect to a lowing: such officials for a reasonable period of time year, refers to the amount representing what ‘‘(d)(1) For purposes of the provisions of not exceeding 30 days; and would be the taxable income of a corporation law cited in paragraphs (2)(A) and (2)(B), re- ‘‘(C) permit inspection by such officials under the Internal Revenue Code of 1986 for spectively, the Postal Service— during construction or alteration of the the year, if— ‘‘(A) shall be considered to be a ‘person’, as building, in accordance with the customary ‘‘(A) the only activities of such corporation used in the provisions of law involved; and schedule of inspections for construction or were the activities of the Postal Service al- ‘‘(B) shall not be immune under any other alteration of buildings in the locality, if such locable under section 2011(h) to competitive doctrine of sovereign immunity from suit in officials provide to the Postal Service— products; and Federal court by any person for any viola- ‘‘(i) a copy of such schedule before con- ‘‘(B) the only assets held by such corporation of any of those provisions of law by any struction of the building is begun; and tion were the assets of the Postal Service al- officer or employee of the Postal Service. ‘‘(ii) reasonable notice of their intention to locable under section 2011(h) to such activi- ‘‘(2) This subsection applies with respect conduct any inspection before conducting ties. to— such inspection.

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Nothing in this subsection shall impose an striking ‘‘Except as provided in section 3628 (d) TERM LIMITATION.— obligation on any State or political subdivi- of this title,’’ and inserting ‘‘Except as oth- (1) IN GENERAL.—Section 202(b) of title 39, sion to take any action under the preceding erwise provided in this title,’’. United States Code, is amended— sentence, nor shall anything in this sub- TITLE V—GENERAL PROVISIONS (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; and section require the Postal Service or any of (B) by adding at the end the following: SEC. 501. QUALIFICATION AND TERM REQUIRE- its contractors to pay for any action taken MENTS FOR GOVERNORS. ‘‘(2) No person may serve more than 3 by a State or political subdivision to carry (a) QUALIFICATIONS.— terms as a Governor.’’. PPLICABILITY out this subsection (including reviewing (1) IN GENERAL.—Section 202(a) of title 39, (2) A .—The amendments made plans, carrying out on-site inspections, United States Code, is amended by striking by paragraph (1) shall not affect the tenure issuing building permits, and making rec- ‘‘(a)’’ and inserting ‘‘(a)(1)’’ and by striking of any person serving as a Governor of the ommendations). the fourth sentence and inserting the fol- United States Postal Service on the date of ‘‘(4) Appropriate officials of a State or a lowing: ‘‘The Governors shall represent the enactment of this Act with respect to the political subdivision of a State may make public interest generally, and shall be chosen term which that person is serving on that recommendations to the Postal Service con- solely on the basis of their demonstrated date. Such person may continue to serve the cerning measures necessary to meet the re- ability in managing organizations or cor- remainder of the applicable term, after quirements of paragraphs (1) and (2). Such of- porations (in either the public or private sec- which the amendments made by paragraph ficials may also make recommendations to tor) of substantial size. The Governors shall (1) shall apply. the Postal Service concerning measures not be representatives of specific interests SEC. 502. OBLIGATIONS. which should be taken in the construction or using the Postal Service, and may be re- (a) PURPOSES FOR WHICH OBLIGATIONS MAY alteration of the building to take into ac- moved only for cause.’’. BE ISSUED.—The first sentence of section count local conditions. The Postal Service (2) APPLICABILITY.—The amendment made 2005(a)(1) of title 39, United States Code, is shall give due consideration to any such rec- by paragraph (1) shall not affect the appoint- amended by striking ‘‘title.’’ and inserting ommendations. ment or tenure of any person serving as a ‘‘title, other than any of the purposes for ‘‘(5) In addition to consulting with local Governor of the United States Postal Service which the corresponding authority is avail- and State officials under paragraph (3), the under an appointment made before the date able to the Postal Service under section Postal Service shall establish procedures for of the enactment of this Act however, when 2011.’’. soliciting, assessing, and incorporating local any such office becomes vacant, the appoint- (b) INCREASE RELATING TO OBLIGATIONS community input on real property and land ment of any person to fill that office shall be ISSUED FOR CAPITAL IMPROVEMENTS.—Section use decisions. 2005(a)(1) of title 39, United States Code, is ‘‘(6) For purposes of this subsection, the made in accordance with such amendment. amended by striking the third sentence. term ‘State’ includes the District of Colum- The requirement set forth in the fourth sen- (c) AMOUNTS WHICH MAY BE PLEDGED.— bia, the Commonwealth of Puerto Rico, and tence of section 202(a)(1) of title 39, United (1) OBLIGATIONS TO WHICH PROVISIONS a territory or possession of the United States Code (as amended by subsection (a)) APPLY.—The first sentence of section 2005(b) States. shall be met beginning not later than 9 years of title 39, United States Code, is amended by ‘‘(h)(1) Notwithstanding any other provi- after the date of the enactment of this Act. striking ‘‘such obligations,’’ and inserting sion of law, legal representation may not be (b) CONSULTATION REQUIREMENT.—Section ‘‘obligations issued by the Postal Service furnished by the Department of Justice to 202(a) of title 39, United States Code, is under this section,’’. the Postal Service in any action, suit, or amended by adding at the end the following: (2) ASSETS, REVENUES, AND RECEIPTS TO proceeding arising, in whole or in part, under ‘‘(2) In selecting the individuals described WHICH PROVISIONS APPLY.—Subsection (b) of any of the following: in paragraph (1) for nomination for appoint- section 2005 of title 39, United States Code, is ‘‘(A) Subsection (d) or (e) of this section. ment to the position of Governor, the Presi- amended by striking ‘‘(b)’’ and inserting ‘‘(B) Subsection (f) or (g) of section 504 (re- dent should consult with the Speaker of the ‘‘(b)(1)’’, and by adding at the end the fol- lating to administrative subpoenas by the House of Representatives, the minority lead- lowing: Postal Regulatory Commission). er of the House of Representatives, the ma- ‘‘(2) Notwithstanding any other provision ‘‘(C) Section 3663 (relating to appellate re- jority leader of the Senate, and the minority of this section— view). leader of the Senate.’’. (c) 5-YEAR TERMS.— ‘‘(A) the authority to pledge assets of the The Postal Service may, by contract or oth- (1) IN GENERAL.—Section 202(b) of title 39, Postal Service under this subsection shall be erwise, employ attorneys to obtain any legal United States code, is amended in the first available only to the extent that such assets representation that it is precluded from ob- sentence by striking ‘‘9 years’’ and inserting are not related to the provision of competi- taining from the Department of Justice ‘‘5 years’’. tive products (as determined under section under this paragraph. 2011(h) or, for purposes of any period before ‘‘(2) In any circumstance not covered by (2) APPLICABILITY.— accounting practices and principles under paragraph (1), the Department of Justice (A) CONTINUATION BY INCUMBENTS.—The section 2011(h) have been established and ap- shall, under section 411, furnish the Postal amendment made by paragraph (1) shall not plied, the best information available from Service such legal representation as it may affect the tenure of any person serving as a the Postal Service, including the audited require, except that, with the prior consent Governor of the United States Postal Service statements required by section 2008(e)); and of the Attorney General, the Postal Service on the date of enactment of this Act and ‘‘(B) any authority under this subsection may, in any such circumstance, employ at- such person may continue to serve the re- relating to the pledging or other use of reve- torneys by contract or otherwise to conduct mainder of the applicable term. nues or receipts of the Postal Service shall litigation brought by or against the Postal (B) VACANCY BY INCUMBENT BEFORE 5 YEARS be available only to the extent that they are Service or its officers or employees in mat- OF SERVICE.—If a person who is serving as a not revenues or receipts of the Competitive ters affecting the Postal Service. Governor of the United States Postal Service ‘‘(3)(A) In any action, suit, or proceeding in on the date of enactment of this Act resigns, Products Fund.’’. a court of the United States arising in whole is removed, or dies before the expiration of SEC. 503. PRIVATE CARRIAGE OF LETTERS. or in part under any of the provisions of law the 9-year term of that Governor, and that (a) IN GENERAL.—Section 601 of title 39, referred to in subparagraph (B) or (C) of Governor has served less than 5 years of that United States Code, is amended by striking paragraph (1), and to which the Commission term, the resulting vacancy in office shall be subsection (b) and inserting the following: is not otherwise a party, the Commission treated as a vacancy in a 5-year term. ‘‘(b) A letter may also be carried out of the shall be permitted to appear as a party on its (C) VACANCY BY INCUMBENT AFTER 5 YEARS mails when— own motion and as of right. OF SERVICE.—If a person who is serving as a ‘‘(1) the amount paid for the private car- ‘‘(B) The Department of Justice shall, Governor of the United States Postal Service riage of the letter is at least the amount under such terms and conditions as the Com- on the date of enactment of this Act resigns, equal to 6 times the rate then currently mission and the Attorney General shall con- is removed, or dies before the expiration of charged for the 1st ounce of a single-piece sider appropriate, furnish the Commission the 9-year term of that Governor, and that first class letter; such legal representation as it may require Governor has served 5 years or more of that ‘‘(2) the letter weighs at least 121⁄2 ounces; in connection with any such action, suit, or term, that term shall be deemed to have or proceeding, except that, with the prior con- been a 5-year term beginning on its com- ‘‘(3) such carriage is within the scope of sent of the Attorney General, the Commis- mencement date for purposes of determining services described by regulations of the sion may employ attorneys by contract or vacancies in office. Any appointment to the United States Postal Service (as in effect on otherwise for that purpose. vacant office shall be for a 5-year term be- July 1, 2001) that purport to permit private ‘‘(i) A judgment against the Government of ginning at the end of the original 9-year carriage by suspension of the operation of the United States arising out of activities of term determined without regard to the this section (as then in effect). the Postal Service shall be paid by the Post- deeming under the preceding sentence. Noth- ‘‘(c) Any regulations necessary to carry al Service out of any funds available to the ing in this subparagraph shall be construed out this section shall be promulgated by the Postal Service, subject to the restriction to affect any action or authority of any Gov- Postal Regulatory Commission.’’. specified in section 2011(g).’’. ernor or the Board of Governors during any (b) EFFECTIVE DATE.—This section shall (b) TECHNICAL AMENDMENT.—Section 409(a) portion of a 9-year term deemed to be 5-year take effect on the date as of which the regu- of title 39, United States Code, is amended by term under this subparagraph. lations promulgated under section 3633 of

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00103 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5996 CONGRESSIONAL RECORD — SENATE May 20, 2004 title 39, United States Code (as amended by tive does not have an agreement with the ‘‘(d) One of the Commissioners shall be des- section 202) take effect. Postal Service, if the parties fail to reach ignated as Chairman by, and shall serve in SEC. 504. RULEMAKING AUTHORITY. the agreement within 90 days of the com- the position of Chairman at the pleasure of, Paragraph (2) of section 401 of title 39, mencement of collective bargaining, a medi- the President. United States Code, is amended to read as ator shall be appointed in accordance with ‘‘(e) The Commissioners shall by majority follows: the terms in subsection (b) of this section, vote designate a Vice Chairman of the Com- ‘‘(2) to adopt, amend, and repeal such rules unless the parties have previously agreed to mission. The Vice Chairman shall act as and regulations, not inconsistent with this another procedure for a binding resolution of Chairman of the Commission in the absence title, as may be necessary in the execution of their differences. If the parties fail to reach of the Chairman. its functions under this title and such other agreement within 180 days of the commence- ‘‘(f) The Commissioners shall serve for functions as may be assigned to the Postal ment of collective bargaining, and if they terms of 6 years.’’; Service under any provisions of law outside have not agreed to another procedure for (2) by striking, in subchapter I of chapter of this title;’’. binding resolution, an arbitration board 36 (as in effect before the amendment made SEC. 505. NONINTERFERENCE WITH COLLECTIVE shall be established to provide conclusive by section 201(c)), the heading for such sub- BARGAINING AGREEMENTS. and binding arbitration in accordance with chapter I and all that follows through sec- (a) LABOR DISPUTES.—Section 1207 of title the terms of subsection (c) of this section.’’. tion 3602; and 39, United States Code, is amended to read as (b) NONINTERFERENCE WITH COLLECTIVE (3) by redesignating sections 3603 and 3604 follows: BARGAINING AGREEMENTS.—Except as other- as sections 503 and 504, respectively, and ‘‘§ 1207. Labor disputes wise provided by the amendment made by transferring such sections to the end of chap- ‘‘(a) If there is a collective-bargaining subsection (a), nothing in this Act shall re- ter 5 (as inserted by paragraph (1)). agreement in effect, no party to such agree- strict, expand, or otherwise affect any of the (b) APPLICABILITY.—The amendment made ment shall terminate or modify such agree- rights, privileges, or benefits of either em- by subsection (a)(1) shall not affect the ap- ment unless the party desiring such termi- ployees of or labor organizations rep- pointment or tenure of any person serving as nation or modification serves written notice resenting employees of the United States a Commissioner on the Postal Regulatory upon the other party to the agreement of the Postal Service under chapter 12 of title 39, Commission (as so redesignated by section proposed termination or modification not United States Code, the National Labor Re- 604) under an appointment made before the less than 90 days prior to the expiration date lations Act, any handbook or manual affect- date of the enactment of this Act or any thereof, or not less than 90 days prior to the ing employee labor relations within the nomination made before that date, but, when time it is proposed to make such termi- United States Postal Service, or any collec- any such office becomes vacant, the appoint- nation or modification. The party serving tive bargaining agreement. ment of any person to fill that office shall be such notice shall notify the Federal Medi- (c) FREE MAILING PRIVILEGES CONTINUE UN- made in accordance with such amendment. ation and Conciliation Service of the exist- CHANGED.—Nothing in this Act or any (c) CLERICAL AMENDMENT.—The analysis ence of a dispute within 45 days of such no- amendment made by this Act shall affect for part I of title 39, United States Code, is tice, if no agreement has been reached by any free mailing privileges accorded under amended by inserting after the item relating that time. section 3217 or sections 3403 through 3406 of to chapter 4 the following: ‘‘(b) If the parties fail to reach agreement title 39, United States Code. ‘‘5. Postal Regulatory Commission .. 501’’ or to adopt a procedure providing for a bind- TITLE VI—ENHANCED REGULATORY SEC. 602. AUTHORITY FOR POSTAL REGULATORY ing resolution of a dispute by the expiration COMMISSION COMMISSION TO ISSUE SUBPOENAS. date of the agreement in effect, or the date SEC. 601. REORGANIZATION AND MODIFICATION Section 504 of title 39, United States Code of the proposed termination or modification, OF CERTAIN PROVISIONS RELATING (as so redesignated by section 601) is amend- the Director of the Federal Mediation and TO THE POSTAL REGULATORY COM- ed by adding at the end the following: Conciliation Service shall within 10 days ap- MISSION. ‘‘(f)(1) Any Commissioner of the Postal point a mediator of nationwide reputation (a) TRANSFER AND REDESIGNATION.—Title Regulatory Commission, any administrative and professional stature, and who is also a 39, United States Code, is amended— law judge appointed by the Commission member of the National Academy of Arbitra- (1) by inserting after chapter 4 the fol- under section 3105 of title 5, and any em- tors. The parties shall cooperate with the lowing: ployee of the Commission designated by the mediator in an effort to reach an agreement ‘‘CHAPTER 5—POSTAL REGULATORY Commission may administer oaths, examine and shall meet and negotiate in good faith at COMMISSION witnesses, take depositions, and receive evi- such times and places that the mediator, in ‘‘Sec. dence. consultation with the parties, shall direct. ‘‘501. Establishment. ‘‘(2) The Chairman of the Commission, any ‘‘(c)(1) If no agreement is reached within 60 ‘‘502. Commissioners. Commissioner designated by the Chairman, days after the expiration or termination of ‘‘503. Rules; regulations; procedures. and any administrative law judge appointed the agreement or the date on which the ‘‘504. Administration. by the Commission under section 3105 of title agreement became subject to modification ‘‘§ 501. Establishment 5 may, with respect to any proceeding con- under subsection (a) of this section, or if the ‘‘The Postal Regulatory Commission is an ducted by the Commission under this title— parties decide upon arbitration but do not independent establishment of the executive ‘‘(A) issue subpoenas requiring the attend- agree upon the procedures therefore, an arbi- branch of the Government of the United ance and presentation of testimony by, or tration board shall be established consisting States. the production of documentary or other evi- of 3 members, 1 of whom shall be selected by dence in the possession of, any covered per- the Postal Service, 1 by the bargaining rep- ‘‘§ 502. Commissioners son; and resentative of the employees, and the third ‘‘(a) The Postal Regulatory Commission is ‘‘(B) order the taking of depositions and re- by the 2 thus selected. If either of the parties composed of 5 Commissioners, appointed by sponses to written interrogatories by a cov- fails to select a member, or if the members the President, by and with the advice and ered person. chosen by the parties fail to agree on the consent of the Senate. The Commissioners third person within 5 days after their first shall be chosen solely on the basis of their The written concurrence of a majority of the meeting, the selection shall be made from a technical qualifications, professional stand- Commissioners then holding office shall, list of names provided by the Director. This ing, and demonstrated expertise in econom- with respect to each subpoena under sub- list shall consist of not less then 9 names of ics, accounting, law, or public administra- paragraph (A), be required in advance of its arbitrators of nationwide reputation and tion, and may be removed by the President issuance. professional nature, who are also members of only for cause. Each individual appointed to ‘‘(3) In the case of contumacy or failure to the National Academy of Arbitrators, and the Commission shall have the qualifications obey a subpoena issued under this sub- whom the Director has determined are avail- and expertise necessary to carry out the en- section, upon application by the Commis- able and willing to serve. hanced responsibilities accorded Commis- sion, the district court of the United States ‘‘(2) The arbitration board shall give the sioners under the Postal Accountability and for the district in which the person to whom parties a full and fair hearing, including an Enhancement Act. Not more than 3 of the the subpoena is addressed resides or is served opportunity to present evidence in support of Commissioners may be adherents of the may issue an order requiring such person to their claims, and an opportunity to present same political party. appear at any designated place to testify or their case in person, by counsel or by other ‘‘(b) No Commissioner shall be financially produce documentary or other evidence. Any representative as they may elect. Decisions interested in any enterprise in the private failure to obey the order of the court may be of the arbitration board shall be conclusive sector of the economy engaged in the deliv- punished by the court as a contempt thereof. and binding upon the parties. The arbitra- ery of mail matter. ‘‘(4) For purposes of this subsection, the tion board shall render its decision within 45 ‘‘(c) A Commissioner may continue to term ‘covered person’ means an officer, em- days after its appointment. serve after the expiration of his term until ployee, agent, or contractor of the Postal ‘‘(3) Costs of the arbitration board and me- his successor has qualified, except that a Service. diation shall be shared equally by the Postal Commissioner may not so continue to serve ‘‘(g)(1) If the Postal Service determines Service and the bargaining representative. for more than 1 year after the date upon that any document or other matter it pro- ‘‘(d) In the case of a bargaining unit whose which his term otherwise would expire under vides to the Postal Regulatory Commission recognized collective-bargaining representa- subsection (f). under a subpoena issued under subsection (f),

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00104 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5997 or otherwise at the request of the Commis- to the same limitation as set forth in the (1) the operation of the amendments made sion in connection with any proceeding or parenthetical matter under subsection (a); by this Act; and other purpose under this title, contains in- (B) all expenses of the Postal Regulatory (2) recommendations for any legislation or formation which is described in section 410(c) Commission, subject to the availability of other measures necessary to improve the ef- of this title, or exempt from public disclo- amounts appropriated under section 504(d); fectiveness or efficiency of the postal laws of sure under section 552(b) of title 5, the Postal and (C) all expenses of the Office of Inspector the United States. Service shall, at the time of providing such General, subject to the availability of (b) POSTAL SERVICE VIEWS.—A report under matter to the Commission, notify the Com- amounts appropriated under section 8G(f) of this section shall be submitted only after mission, in writing, of its determination (and the Inspector General Act of 1978.’’. reasonable opportunity has been afforded to the reasons therefor). (c) EFFECTIVE DATE.— ‘‘(2) Except as provided in paragraph (3), no (1) IN GENERAL.—The amendments made by the Postal Service to review the report and officer or employee of the Commission may, this section shall apply with respect to fiscal to submit written comments on the report. with respect to any information as to which years beginning on or after October 1, 2002. Any comments timely received from the the Commission has been notified under (2) SAVINGS PROVISION.—The provisions of Postal Service under the preceding sentence paragraph (1)— title 39, United States Code, that are amend- shall be attached to the report submitted ‘‘(A) use such information for purposes ed by this section shall, for purposes of any under subsection (a). other than the purposes for which it is sup- fiscal year before the first fiscal year to plied; or SEC. 702. REPORT ON UNIVERSAL POSTAL SERV- which the amendments made by this section ICE AND THE POSTAL MONOPOLY. ‘‘(B) permit anyone who is not an officer or apply, continue to apply in the same way as employee of the Commission to have access if this section had never been enacted. (a) REPORT BY THE POSTAL SERVICE.— to any such information. SEC. 604. REDESIGNATION OF THE POSTAL RATE (1) IN GENERAL.—Not later than 12 months ‘‘(3)(A) Paragraph (2) shall not prohibit the COMMISSION. after the date of enactment of this Act, the Commission from publicly disclosing rel- (a) AMENDMENTS TO TITLE 39, UNITED Postal Regulatory Commission shall submit evant information in furtherance of its du- STATES CODE.—Title 39, United States Code, a report to the President and Congress on ties under this title, provided that the Com- is amended in sections 404, 503 and 504 (as so universal postal service and the postal mo- mission has adopted regulations under sec- redesignated by section 601), 1001 and 1002, by nopoly in the United States (in this section tion 553 of title 5, that establish a procedure striking ‘‘Postal Rate Commission’’ each referred to as ‘‘universal service and the for according appropriate confidentiality to place it appears and inserting ‘‘Postal Regu- postal monopoly’’), including the monopoly information identified by the Postal Service latory Commission’’; on the delivery of mail and on access to under paragraph (1). In determining the ap- (b) AMENDMENTS TO TITLE 5, UNITED STATES mailboxes. propriate degree of confidentiality to be ac- CODE.—Title 5, United States Code, is (2) CONTENTS.—The report under this sub- corded information identified by the Postal amended in sections 104(1), 306(f), 2104(b), section shall include— Service under paragraph (1), the Commission 3371(3), 5314 (in the item relating to Chair- (A) a comprehensive review of the history shall balance the nature and extent of the man, Postal Rate Commission), 5315 (in the and development of universal service and the likely commercial injury to the Postal Serv- item relating to Members, Postal Rate Com- postal monopoly, including how the scope ice against the public interest in maintain- mission), 5514(a)(5)(B), 7342(a)(1)(A), and standards of universal service and the ing the financial transparency of a govern- 7511(a)(1)(B)(ii), 8402(c)(1), 8423(b)(1)(B), and postal monopoly have evolved over time for ment establishment competing in commer- 8474(c)(4) by striking ‘‘Postal Rate Commis- the Nation and its urban and rural areas; cial markets. sion’’ and inserting ‘‘Postal Regulatory Com- (B) the scope and standards of universal ‘‘(B) Paragraph (2) shall not prevent the mission’’. service and the postal monopoly provided Commission from requiring production of in- (c) AMENDMENT TO THE ETHICS IN GOVERN- under current law (including sections 101 and formation in the course of any discovery pro- MENT ACT OF 1978.—Section 101(f)(6) of the 403 of title 39, United States Code), and cur- cedure established in connection with a pro- Ethics in Government Act of 1978 (5 U.S.C. rent rules, regulations, policy statements, ceeding under this title. The Commission App.) is amended by striking ‘‘Postal Rate and practices of the Postal Service; shall, by regulations based on rule 26(c) of Commission’’ and inserting ‘‘Postal Regu- (C) a description of any geographic areas, the Federal Rules of Civil Procedure, estab- latory Commission’’. populations, communities (including both lish procedures for ensuring appropriate con- (d) AMENDMENT TO THE REHABILITATION ACT urban and rural communities), organiza- fidentiality for information furnished to any OF 1973.—Section 501(b) of the Rehabilitation tions, or other groups or entities not cur- party.’’. Act of 1973 (29 U.S.C. 791(b)) is amended by rently covered by universal service or that SEC. 603. APPROPRIATIONS FOR THE POSTAL striking ‘‘Postal Rate Office’’ and inserting are covered but that are receiving services REGULATORY COMMISSION. ‘‘Postal Regulatory Commission’’. deficient in scope or quality or both; and (a) AUTHORIZATION OF APPROPRIATIONS.— (e) AMENDMENT TO TITLE 44, UNITED STATES (D) the scope and standards of universal Subsection (d) of section 504 of title 39, CODE.—Section 3502(5) of title 44, United service and the postal monopoly likely to be United States Code (as so redesignated by States Code, is amended by striking ‘‘Postal required in the future in order to meet the section 601) is amended to read as follows: Rate Commission’’ and inserting ‘‘Postal needs and expectations of the United States ‘‘(d) There are authorized to be appro- Regulatory Commission’’. public, including all types of mail users, (f) OTHER REFERENCES.—Whenever a ref- priated, out of the Postal Service Fund, such based on discussion of such assumptions, al- erence is made in any provision of law (other sums as may be necessary for the Postal ternative sets of assumptions, and analyses than this Act or a provision of law amended Regulatory Commission. In requesting an ap- as the Postal Service considers plausible. propriation under this subsection for a fiscal by this Act), regulation, rule, document, or year, the Commission shall prepare and sub- other record of the United States to the (b) RECOMMENDED CHANGES TO UNIVERSAL mit to the Congress under section 2009 a Postal Rate Commission, such reference SERVICE AND THE MONOPOLY.—The Postal budget of the Commission’s expenses, includ- shall be considered a reference to the Postal Regulatory Commission shall include in the ing expenses for facilities, supplies, com- Regulatory Commission. report under subsection (a), and in all re- pensation, and employee benefits.’’. SEC. 605. FINANCIAL TRANSPARENCY. ports submitted under section 701 of this (b) BUDGET PROGRAM.— Section 101 of title 39, United States Code, Act— (1) IN GENERAL.—The next to last sentence is amended— (1) any recommended changes to universal of section 2009 of title 39, United States Code, (1) by redesignating subsections (d) service and the postal monopoly as the Com- is amended to read as follows: ‘‘The budget through (g) as subsections (e) through (h), re- mission considers appropriate, including program shall also include separate state- spectively; and changes that the Commission may implements of the amounts which (1) the Postal (2) by inserting after subsection (c) the fol- ment under current law and changes that Service requests to be appropriated under lowing: would require changes to current law, with subsections (b) and (c) of section 2401, (2) the ‘‘(d) As an independent establishment of estimated effects of the recommendations on Office of Inspector General of the United the executive branch of the Government of the service, financial condition, rates, and States Postal Service requests to be appro- the United States, the Postal Service shall security of mail provided by the Postal Serv- priated, out of the Postal Service Fund, be subject to a high degree of transparency ice; under section 8G(f) of the Inspector General to ensure fair treatment of customers of the (2) with respect to each recommended Act of 1978, and (3) the Postal Regulatory Postal Service’s market-dominant products change described under paragraph (1)— Commission requests to be appropriated, out and companies competing with the Postal (A) an estimate of the costs of the Postal of the Postal Service Fund, under section Service’s competitive products.’’. Service attributable to the obligation to pro- 504(d) of this title.’’. TITLE VII—EVALUATIONS vide universal service under current law; and (2) CONFORMING AMENDMENT.—Section SEC. 701. ASSESSMENTS OF RATEMAKING, CLAS- (B) an analysis of the likely benefit of the 2003(e)(1) of title 39, United States Code, is SIFICATION, AND OTHER PROVI- current postal monopoly to the ability of the amended by striking the first sentence and SIONS. Postal Service to sustain the current scope inserting the following: ‘‘The Fund shall be (a) IN GENERAL.—The Postal Regulatory and standards of universal service, including available for the payment of (A) all expenses Commission shall, at least every 3 years, estimates of the financial benefit of the post- incurred by the Postal Service in carrying submit a report to the President and Con- al monopoly to the extent practicable, under out its functions as provided by law, subject gress concerning— current law; and

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00105 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S5998 CONGRESSIONAL RECORD — SENATE May 20, 2004 (3) such additional topics and recommenda- ‘‘(iii) any other appropriate amount, as de- ‘‘§ 8909a. Postal Service Retiree Health Ben- tions as the Commission considers appro- termined by the Office in accordance with efit Fund priate, with estimated effects of the rec- generally accepted actuarial practices and ‘‘(a) There is in the Treasury of the United ommendations on the service, financial con- principles. States a Postal Service Retiree Health Bene- dition, rates, and the security of mail pro- ‘‘(2)(A) Not later than June 30, 2006, the Of- fits Fund which is administered by the Office vided by the Postal Service. fice shall determine the Postal surplus or of Personnel Management. SEC. 703. STUDY ON EQUAL APPLICATION OF supplemental liability, as of September 30, ‘‘(b) The Fund is available without fiscal LAWS TO COMPETITIVE PRODUCTS. 2005. If that result is a surplus, the amount year limitation for payments required under (a) IN GENERAL.—The Federal Trade Com- of the surplus shall be transferred to the section 8906(g)(2)(A). mission shall prepare and submit to the Postal Service Retiree Health Benefits Fund ‘‘(c) The Secretary of the Treasury shall President and Congress, and to the Postal established under section 8909a. If the result immediately invest, in interest-bearing secu- Regulatory Commission, within 1 year after is a supplemental liability, the Office shall rities of the United States such currently the date of the enactment of this Act, a com- establish an amortization schedule, includ- available portions of the Fund as are not im- prehensive report identifying Federal and ing a series of annual installments com- mediately required for payments from the State laws that apply differently to the mencing September 30, 2006, which provides Fund. Such investments shall be made in the United States Postal Service with respect to for the liquidation of such liability by Sep- same manner as investments for the Civil the competitive category of mail (within the tember 30, 2043. Service Retirement and Disability Fund meaning of section 102 of title 39, United ‘‘(B) The Office shall redetermine the Post- under section 8348. States Code, as amended by section 101) and al surplus or supplemental liability as of the ‘‘(d)(1) Not later than December 31, 2006, similar products provided by private compa- close of the fiscal year, for each fiscal year and by December 31 of each succeeding year, nies. beginning after September 30, 2006, through the Office shall compute the net present (b) RECOMMENDATIONS.—The Federal Trade the fiscal year ending September 30, 2038. If value of the future payments required under Commission shall include such recommenda- the result is a surplus, that amount shall re- section 8906(g)(2)(A) and attributable to the tions as it considers appropriate for bringing main in the Fund until distribution is au- service of Postal Service employees during such legal discrimination to an end, and in thorized under subparagraph (C), and any the most recently ended fiscal year. the interim, to account under section 3633 of prior amortization schedule for payments ‘‘(2)(A) Not later than December 31, 2006, title 39, United States Code (as added by this shall be terminated. If the result is a supple- the Office shall compute, and by December 31 Act), for the net economic advantages pro- mental liability, the Office shall establish a of each succeeding year, the Office shall re- vided by those laws. new amortization schedule, including a se- compute the difference between— (c) CONSULTATION.—In preparing its report, ries of annual installments commencing on ‘‘(i) the net present value of the excess of the Federal Trade Commission shall consult September 30 of the subsequent fiscal year, future payments required under section with the United States Postal Service, the which provides for the liquidation of such li- 8906(g)(2)(A) for current and future United Postal Regulatory Commission, other Fed- ability by September 30, 2043. States Postal Service annuitants as of the ‘‘(C) As of the close of the fiscal years end- eral agencies, mailers, private companies end of the fiscal year ending on September 30 ing September 30, 2015, 2025, 2035, and 2039, if that provide delivery services, and the gen- of that year; and the result is a surplus, that amount shall be eral public, and shall append to such report ‘‘(ii)(I) the value of the assets of the Postal transferred to the Postal Service Retiree any written comments received under this Retiree Health Benefits Fund as of the end of Health Benefits Fund, and any prior amorti- subsection. the fiscal year ending on September 30 of zation schedule for payments shall be termi- (d) COMPETITIVE PRODUCT REGULATION.— that year; and nated. The Postal Regulatory Commission shall ‘‘(II) the net present value computed under ‘‘(D) Amortization schedules established take into account the recommendations of paragraph (1). under this paragraph shall be set in accord- the Federal Trade Commission in promul- ‘‘(B) Not later than December 31, 2006, the ance with generally accepted actuarial prac- gating or revising the regulations required Office shall compute, and by December 31 of tices and principles, with interest computed under section 3633 of title 39, United States each succeeding year shall recompute, an at the rate used in the most recent valuation Code. amortization schedule including a series of of the Civil Service Retirement System. TITLE VIII—POSTAL SERVICE RETIRE- ‘‘(E) The United States Postal Service annual installments which provide for the MENT AND HEALTH BENEFITS FUNDING shall pay the amounts so determined to the liquidation by January 31, 2046, or within 15 SEC. 801. SHORT TITLE. Office, with payments due not later than the years, whichever is later, of the net present This title may be cited as the ‘‘Postal Civil date scheduled by the Office. value determined under subparagraph (A), Service Retirement and Health Benefits ‘‘(3) Notwithstanding any other provision including interest at the rate used in that Funding Amendments of 2004’’. of law, in computing the amount of any pay- computation. SEC. 802. CIVIL SERVICE RETIREMENT SYSTEM. ment under any other subsection of this sec- ‘‘(3) Not later than January 31, 2007, and by January 31 of each succeeding year, the (a) IN GENERAL.—Chapter 83 of title 5, tion that is based upon the amount of the United States Code, is amended— unfunded liability, such payment shall be United States Postal Service shall pay into (1) in section 8334(a)(1)(B), by striking computed disregarding that portion of the such Fund— clause (ii) and inserting the following: unfunded liability that the Office determines ‘‘(A) the net present value computed under ‘‘(ii) In the case of an employee of the will be liquidated by payments under this paragraph (1); and United States Postal Service, no amount subsection.’’. ‘‘(B) the annual installment computed shall be contributed under this subpara- (b) CREDIT ALLOWED FOR MILITARY SERV- under paragraph (2)(B). graph.’’; and ICE.—In the application of section 8348(g)(2) ‘‘(4) Computations under this subsection (2) by amending section 8348(h) to read as of title 5, United States Code, for the fiscal shall be made consistent with the assump- follows: year 2006, the Office of Personnel Manage- tions and methodology used by the Office for ‘‘(h)(1) In this subsection, the term ‘Postal ment shall include, in addition to the financial reporting under subchapter II of surplus or supplemental liability’ means the amount otherwise computed under that chapter 35 of title 31. estimated difference, as determined by the paragraph, the amounts that would have ‘‘(5) After consultation with the United Office, between— been included for the fiscal years 2003 States Postal Service, the Office shall pro- ‘‘(A) the actuarial present value of all fu- through 2005 with respect to credit for mili- mulgate any regulations the Office deter- ture benefits payable from the Fund under tary service of former employees of the mines necessary under this subsection.’’. this subchapter to current or former employ- United States Postal Service as though the (b) TECHNICAL AND CONFORMING AMEND- ees of the United States Postal Service and Postal Civil Service Retirement System MENT.—The table of sections for chapter 89 of attributable to civilian employment with Funding Reform Act of 2003 (Public Law 108– title 5, United States Code, is amended by in- the United States Postal Service; and 18) had not been enacted, and the Secretary serting after the item relating to section 8909 ‘‘(B) the sum of— of the Treasury shall make the required the following: ‘‘(i) the actuarial present value of deduc- transfer to the Civil Service Retirement and ‘‘8909a. Postal Service Retiree Health Bene- tions to be withheld from the future basic Disability Fund based on that amount. fits Fund.’’. pay of employees of the United States Postal SEC. 803. HEALTH INSURANCE. SEC. 804. REPEAL OF DISPOSITION OF SAVINGS Service currently subject to this subchapter (a) IN GENERAL.—Chapter 89 of title 5, PROVISION. under section 8334; United States Code, is amended— Section 3 of the Postal Civil Service Re- ‘‘(ii) that portion of the Fund balance, as (1) in section 8906(g)(2)(A), by striking tirement System Funding Reform Act of 2003 of the date the Postal surplus or supple- ‘‘shall be paid by the United States Postal (Public Law 108–18) is repealed. mental liability is determined, attributable Service.’’ and inserting ‘‘shall be paid first SEC. 805. EFFECTIVE DATES. to payments to the Fund by the United from the Postal Service Retiree Health Ben- (a) IN GENERAL.—Except as provided under States Postal Service and its employees, efits Fund up to the amount contained in the subsection (b), this title shall take effect on minus benefit payments attributable to ci- Fund, with any remaining amount paid by October 1, 2005. vilian employment with the United States the United States Postal Service.’’; and (b) TERMINATION OF EMPLOYER CONTRIBU- Postal Service, plus the earnings on such (2) by inserting after section 8909 the fol- TION.—The amendment made by paragraph amounts while in the Fund; and lowing: (1) of section 802(a) shall take effect on the

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00106 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S5999 first day of the first pay period beginning on need for postal reform and is based upon our ice’s needs will be to maintain and mod- or after October 1, 2005. prior testimonies related to this issue. In ernize its physical infrastructure, as well as TITLE IX—COMPENSATION FOR WORK summary, we believe that comprehensive how these needs will be funded. INJURIES postal reform is urgently needed. The ability Renewed difficulties in substantially im- of the Service to remain financially viable is proving postal productivity: The Service’s SEC. 901. TEMPORARY DISABILITY; CONTINU- at risk because its current business model— productivity increased by 1.8 percent in fis- ATION OF PAY. which relies on mail volume growth to cover cal year 2003 but is estimated to increase by (a) TIME OF ACCRUAL OF RIGHT.—Section the costs of its expanding delivery network— only 0.4 percent in fiscal year 2004. In the ab- 8117 of title 5, United States Code, is amend- is not well aligned with 21st century reali- sence of mail volume growth, substantial ed— ties. Since we placed the Postal Service’s productivity increases will be required to (1) by striking ‘‘An employee’’ and insert- transformation efforts and financial outlook help cover cost increases generated by rising ing ‘‘(a) An employee other than a Postal on our High-Risk List in April 2001, I have wages and benefit costs and to mitigate rate Service employee’’; and testified on several occasions about the gov- increases. (2) by adding at the end the following: ernance, financial, operational, and human Significant financial liabilities and obliga- ‘‘(b) A Postal Service employee is not enti- capital challenges that threaten the Serv- tions: Despite the passage of legislation that tled to compensation or continuation of pay ice’s ability to carry out its mission. If not reduced the Service’s pension obligations, for the first 3 days of temporary disability. A effectively addressed in a timely manner, the Service has about $88 billion to $98 bil- Postal Service employee may use annual these challenges serve to threaten the Serv- lion in liabilities and obligations that in- leave, sick leave, or leave without pay dur- ice’s ability to remain self-supporting while clude $47 billion to $57 billion in unfunded re- ing that 3-day period.’’. providing affordable, high-quality and uni- tiree health benefits. Under the current pay- (b) TECHNICAL AND CONFORMING AMEND- versal postal services to all Americans. as-you-go system, the Service may have dif- MENT.—Section 8118(b)(1) of title 5, United The following key trends serve to reinforce ficulty financing its retiree health benefits States Code, is amended to read as follows: our view that enactment of postal reform obligation in the future if mail volume ‘‘(1) without a break in time, except as pro- legislation is needed: trends continue to impact revenues while vided under section 8117;’’. Declining mail volume: Total mail volume costs in this area continue to rise. The Serv- SEC. 902. DISABILITY RETIREMENT FOR POSTAL declined in fiscal year 2003 for the third year ice has recently proposed two options to EMPLOYEES. in a row—a historical first for the Service, Congress, so the Service could prefund this (a) TOTAL DISABILITY.—Section 8105 of title which has depended on rising mail volume to obligation to the extent that it is financially 5, United States Code, is amended— help cover rising costs and mitigate rate in- able. (1) in subsection (a), by adding at the end creases. First-Class Mail volume declined by Uncertain funding for emergency prepared- the following: ‘‘This section applies to a a record 3.2 percent in fiscal year 2003 and is ness: The Service requested $350 million for Postal Service employee, except as provided projected to decline annually for the foresee- emergency preparedness for fiscal year 2004, under subsection (c).’’; and able future. Some of this decline is due to which it did not receive, and $779 million for (2) by adding at the end the following: technology advances (e.g. E-mail, digital fiscal year 2005. If the money is not appro- ‘‘(c)(1) In this subsection, the term ‘retire- phones, faxes, and electronic bill payments) priated, funding for this purpose may have to ment age’ has the meaning given under sec- that are likely to increase in the future. This be built into postal rates. tion 216(l)(1) of the Social Security Act (42 trend is particularly significant because Challenges to achieve sufficient cost cut- U.S.C. 416(l)(1)). First-Class Mail covers more than two-thirds ting: The Service achieved additional cost ‘‘(2) Notwithstanding any other provision of the Service’s institutional costs. cutting to compensate for below-budget rev- of law, for any injury occurring on or after Changes in the mail mix: The Service’s enues in fiscal year 2003. Despite this the date of enactment of the Postal Account- mail mix is changing with declining volume progress, in the longer term it is unclear ability and Enhancement Act, and for any for high-margin products, such as First-Class whether continued cost-cutting efforts can new claim for a period of disability com- Mail, and increasing volume of lower-margin offset declines in First-Class Mail volume mencing on or after that date, the compensa- products, such as some types of Standard without impacting the quality of service. tion entitlement for total disability is con- Mail. These changes reduce revenues avail- Although we have discussed numerous ac- verted to 50 percent of the monthly pay of able to cover the Service’s institutional tions that the Postal Service can take with- the employee on the later of— costs. in its existing authority to improve its over- ‘‘(A) the date on which the injured em- Increased competition from private deliv- all efficiency and effectiveness, we do not be- ployee reaches retirement age; or ery companies: Private delivery companies lieve that incremental steps toward postal ‘‘(B) 1 year after the employee begins re- dominate the market for parcels greater transformation can resolve the fundamental ceiving compensation.’’. than 2 pounds and appear to be making in- and systemic issues associated with the (b) PARTIAL DISABILITY.—Section 8106 of roads into the market for small parcels. Pri- Service’s current business model. To avoid title 5, United States Code, is amended— ority Mail volume fell 13.9 percent in fiscal the risk of a significant taxpayer bailout or (1) in subsection (a), by adding at the end year 2003 and over the last 3 years has de- dramatic postal rate increases, we believe the following: ‘‘This section applies to a clined nearly 30 percent. Once a highly prof- that Congress should enact comprehensive Postal Service employee, except as provided itable growth product for the Service, Pri- postal reform legislation that includes the under subsection (d).’’; and ority Mail volume is declining as the highly Service’s overall statutory framework, reso- (2) by adding at the end the following: competitive parcel market turns to lower- lution of issues regarding the Service’s pen- ‘‘(d)(1) In this subsection, the term ‘retire- priced ground shipment alternatives. Express sion and retiree health benefits obligations, ment age’ has the meaning given under sec- Mail volume is declining for the same rea- and whether there is a continued need for an tion 216(l)(1) of the Social Security Act (42 son. In addition, United Parcel Service escrow account. U.S.C. 416(l)(1)). (UPS) and FedEx have established national The key areas of the Service’s statutory ‘‘(2) Notwithstanding any other provision retail networks through UPS’s acquisition of framework that need to be addressed include: of law, for any injury occurring on or after MailBoxes Etc., now called UPS Stores, and Clarifying the Service’s mission and role the date of enactment of this subsection, and FedEx’s recent acquisition of Kinko’s. by defining the scope of universal service and for any new claim for a period of disability Subpar revenue growth: The Service’s reve- the postal monopoly and by clarifying the commencing on or after that date, the com- nues are budgeted for zero growth in fiscal role of the Service in regard to competition pensation entitlement for partial disability year 2004, which would be the first year since and its regulatory functions. is converted to 50 percent of the difference postal reorganization that postal revenues Enhancing governance, transparency, and between the monthly pay of an employee and have failed to increase. However, as the accountability by delineating public policy, the monthly wage earning capacity of the Service has recognized, even the zero-growth operational, and regulatory responsibilities; employee after the beginning of partial dis- target will be challenging. In the absence of by ensuring managerial accountability ability on the later of— revenue growth generated by increasing vol- through a strong, well-qualified corporate- ‘‘(A) the date on which the injured em- ume, the Service must rely more heavily on style board that holds its officers responsible ployee reaches retirement age; or rate increases to cover rising costs and help and accountable for achieving real results; ‘‘(B) 1 year after the employee begins re- finance capital investment needs. and by defining appropriate reporting mech- ceiving compensation.’’. Declining capital investment: The Serv- anisms to enhance the Service’s trans- ice’s capital cash outlays declined from $3.3 parency and accountability for financial and UNITED STATES GENERAL billion in fiscal year 2000 to $1.3 billion in fis- performance results. ACCOUNTING OFFICE, cal year 2003, which was the lowest level Improving flexibilities and oversight by Washington, DC, February 6, 2004. since fiscal year 1986, and far below the level balancing increased flexibility for the Serv- Hon. SUSAN M. COLLINS, of the late 1990s, when the Service spent ice—through streamlining the rate-setting Chairman, Committee on Governmental Affairs, more than $3 billion annually. Capital cash process and allowing a certain amount of re- United States Senate. outlays are budgeted to increase to $2.4 bil- tained earnings—with appropriate oversight lion in fiscal year 2004, but this level may by a independent regulatory body to protect Need for Comprehensive Postal Reform not be sufficient to enable the Service to postal customers against undue discrimina- DEAR CHAIRMAN COLLINS: This letter re- fully fund its capital investment needs. In tion, to restrict cross-subsidies, and to en- sponds to your request for our views on the the longer term, it is unclear what the Serv- sure due process. In addition, the Service

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00107 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6000 CONGRESSIONAL RECORD — SENATE May 20, 2004 needs additional flexibility to rationalize its would focus on some of the more ex- Service has, for the most part, re- infrastructure and reshape its workforce. treme reform proposals floated in the mained unchanged for more than three Any such additional flexibility should be ac- past, such as postal privatization. decades now. companied by appropriate safeguards to pre- While the Commission did make a In the early 1970s, Senator STEVENS vent abuse along with enhanced trans- and others led the effort in the Senate parency and accountability mechanisms. handful of recommendations that I be- Making needed human capital reforms lieve go too far, I was pleased to see to create the Postal Service out of the such as (1) determining the Service’s respon- that its work largely mirrored the pro- failing Post Office Department. At the sibility for pension costs related to military visions in S. 1285 and the various House time, the Post Office Department re- service, funding retiree health benefits, and reform bills we have seen in recent ceived about 20 percent of its revenue determining what action to take on the es- years. from taxpayer subsidies. Service was crow account established in recent pension I’d like to begin, then, by thanking suffering and there was little money legislation; (2) deciding whether postal work- Congressman MCHUGH and his col- available to expand. ers’ compensation benefits should be on par By all accounts, the product of Sen- with those in the private sector; and (3) leagues on the House Government Re- clarifying pay comparability standards. form Committee for its visionary lead- ator STEVENS’ labors, the Postal Reor- We believe that Congress now has a rare ership on postal reform over the years. ganization Act signed into law by opportunity to assure the Service’s long- I’d also like to thank the members of President Nixon in 1971, has been a phe- term financial viability through comprehen- the President’s Commission, especially nomenal success. The Postal Service sive postal reform legislation that addresses co-chairs James A. Johnson and Harry today receives virtually no taxpayer the Service’s key structural and systemic de- J. Pearce, for their service. Postal re- support and the service its hundreds of ficiencies, its unfunded obligations, includ- form is a difficult issue. It is also a vi- thousands of employees provide to ing its retiree health benefits obligation, and the escrow requirement. Key legislative and tally important issue for every Amer- every American, every day is second to administrative actions in connection with ican who depends on the Postal Service none. More than thirty years after its transforming the Postal Service can also every day. Their willingness to listen birth, the Postal Service now delivers serve as positive examples for other key gov- to all sides of the debate and to craft to 141 million addresses each day and is ernment transformation efforts. what is, for the most part, a set of bal- the anchor of a $900 billion per year As agreed with your office, unless you pub- anced reform recommendations is ad- mailing industry. licly announce the contents of this report mired and appreciated. The work they As we celebrate the Postal Service’s earlier, we plan no further distribution until have done has brought to light a num- successes, however, we need to be 30 days from the date of this letter. At that thinking about what needs to be done time, we will provide copies to interested ber of the key issues facing the Postal congressional committees. We will also Service and has made it possible to get to make them just as successful in the make copies available to others on request. a bipartisan postal reform bill signed years to come. When the Postal Service In addition, the report will be available at no into law this year. started out in 1971, no one had access charge on the GAO Web site at http:// Senator COLLINS also deserves our to fax machines, cell phones and www.gao.gov. thanks and applause for her hard work pagers. No one imagined that we would For additional information about this re- on this issue. Under her leadership, the ever enjoy conveniences like e-mail port, please contact Mark L. Goldstein, Di- Governmental Affairs Committee held and electronic bill payment. Most of rector, Physical Infrastructure Issues at (202) 512–2834 or at [email protected]. Please a series of eight excellent hearings on the mail I receive from my constitu- contact me if I can be of any further assist- postal reform over the past few ents these days arrives via fax and e- ance to help make comprehensive postal re- months. She and I and our staffs have mail instead of hard copy mail, a form a reality. also held countless meetings with the marked change from my days in the Sincerely yours, various stakeholders for more than a House and even from my more recent DAVID M. WALKER, year now. Everyone with an interest in days as Governor of Delaware. Comptroller General of the United States. the Postal Service was given an oppor- This continuing electronic diversion Mr. CARPER. Mr. President, I rise tunity to have their say, and I think of mail, coupled with economic reces- today to join Senator COLLINS in intro- that’s reflected in the balanced bill sion and terrorism, has made for some ducing the Postal Accountability and we’re introducing today. rough going at the Postal Service in re- Enhancement Act of 2004, legislation It’s always a pleasure working with cent years. In 2001, as Postmaster Gen- that makes the reforms necessary for Senator COLLINS. We’ve worked to- eral Potter came onboard, the Postal the Postal Service to thrive in the 21st gether on a number of issues over the Service was projecting its third con- Century and to better serve the Amer- years—from welfare reform to home- secutive year of deficits. They lost $199 ican people. land security and the future of pas- million in fiscal year 2000 and $1.68 bil- This bill is based in part on S. 1285, senger rail in our country. Her dedica- lion in fiscal year 2001. They were pro- the comprehensive postal reform legis- tion to bipartisanship, and simply jecting losses of up to $4 billion in fis- lation I introduced nearly a year ago. doing the right thing, is rare these cal year 2002. Mail volume was falling, S. 1285 was itself based on ten years of days. It’s a honor to be introducing revenues were below projections and work on postal reform in the House of this historic bill with her today. the Postal Service was estimating that Representatives, led by Congressman, Let me also express to Senator LIE- it needed to spend $4 billion on security JOHN MCHUGH from New York. It is BERMAN, our Committee’s Ranking enhancements in order to prevent a re- also inspired by the work of the postal Member, my appreciation for giving me peat of the tragic anthrax attacks that commission formed by President Bush the opportunity as a freshman Senator took several lives. The Postal Service last year, called the President’s Com- to work so closely on one of the most was also perilously close to its $15 bil- mission on the United States Postal important issues to come before Gov- lion debt ceiling and had been forced to Service, which studied all aspects of ernmental Affairs. The support he and raise rates three times in less than two the Postal Service and made rec- his staff have offered us throughout years in order to pay for its operations, ommendations on how it could be mod- this process has been invaluable. further eroding mail volume. ernized. Some of our colleagues may wonder Good things have happened since When I rose to introduce S. 1285 last why we need postal reform. They prob- 2001, though. First, General Potter has June, the House Government Reform ably receive few complaints about the led a commendable effort to make the Committee had only recently failed to service their constituents get from the Postal Service more efficient. Billions report out the latest version of the Postal Service and its employees. In of dollars in costs and have been taken McHugh reform bill and the President’s fact, a survey conducted by the Presi- out of the system. Thousands of posi- Commission was only weeks away from dent’s Commission indicated that the tions have been eliminated through at- issuing its final recommendations. American people like the Postal Serv- trition. Successful automation pro- Along with a number of other observ- ice just the way it is. We must keep in grams have yielded great benefits. Per- ers, I feared that the McHugh bill’s fate mind, however, that, despite the fact haps more dramatically, the Postal might have spelled the end of postal re- that the mailing industry, and the Service also learned that an unfunded form for some time. I also feared that economy as a whole, have changed pension liability they once believed the Commission’s recommendations radically over the years, the Postal was an high as $32 billion was actually

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00108 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6001 $5 billion. Senator COLLINS and I re- veloping a modern rate system for pric- First Class mail, that are part of the sponded with legislation, the Postal ing Postal Service products. The new postal monopoly. The Postal Service Civil Service Retirement System Fund- system, to be developed by a strength- currently sets its own service standing Reform Act, signed into law by ened Postal Rate Commission, re- ards, which allows them to pursue ef- President Bush last year, which cuts named the Postal Regulatory Commis- forts like the elimination of Saturday the amount the Postal Service must sion, would allow retained earnings, delivery, a proposal floated three years pay into the Civil Service Retirement provide the Postal Service signifi- ago. The new standards set by the System each year by nearly $3 billion. cantly more flexibility in setting Commission will aim to improve serv- This has freed up money for debt reduc- prices and streamline today’s burden- ice and will be used by the Postal Serv- tion and prevented the need for an- some ratemaking process. To provide ice to establish performance goals, ra- other rate increase until at least 2006. stability, predictability and fairness tionalize its physical infrastructure Aggressive cost cutting and a lower for the Postal Service’s customers, and streamline its workforce. pension payment, then, have put off rates would remain within an inflation- In a rate system featuring rate caps, the emergency that would have come if based cap to be developed by the Com- as any system established under the the Postal Service had reached its debt mission. Postal Accountability and Enhance- limit. But cost cutting can only go so In addition, the new rate system will ment Act must, I believe it is espe- far and will not solve the Postal Serv- allow the Postal Service to negotiate cially important that the Regulatory ice’s long-term challenges. These long- service agreements with individual Commission, not the Postal Service, be term challenges were laid out in stark mailers. The Postal Rate Commission charged with determining the appro- detail earlier this year when Post- in recent years did approve a service priate level of service postal customers master General Potter and Postal agreement the Postal Service nego- should receive. This will prevent the Board of Governors Chairman David tiated with Capital One, but the proc- Postal Service form cutting service as Fineman testified before the House ess for considering the agreement took a way to keep rates below the cap. The Government Reform Committee’s Spe- almost a year and the Postal Service’s Postal Service should be forced to look cial Panel on Postal Reform. Chairman authority to enter into such agree- to productivity enhancements, not Fineman pointed out then that the ments is not clearly spelled out in law. poorer quality service, to find savings. total volume of mail delivered by the The Postal Accountability and En- Third, the Postal Accountability and Postal Service has declined by more hancement Act allows the Postal Serv- Enhancement Act ensures that the than 5 billion pieces since 2000. Over ice to enter into agreements if the rev- Postal Service competes fairly. The the same period, the number of homes enue generated from them covers all bill prohibits the Postal Service from and businesses the Postal Service de- costs attributable to the Postal Service issuing anti-competitive regulations. It livers to have increased by more than 5 and will result in no less contribution also subjects the Postal Service to million. First Class mail, the largest to the institutional costs of the Postal state zoning, planning and land use contributor to the Postal Service’s bot- Service than would have been gen- laws, requires them to pay an assumed tom line, is leading the decline in vol- erated had the agreement not been en- Federal income tax on products like ume. Some of those disappearing First tered into. No agreement would be per- packages and Express Mail that private Class letters are being replaced by ad- mitted if it resulted in higher rates for firms also offer and requires that these vertising mail, which earns signifi- any other mailer or prohibited any products as a whole pay their share of cantly less. Many First Class letters similarly situated mailer from negoti- the Postal Service’s institutional have likely been lost for good to the ating a similar agreement. costs. The Federal Trade Commission fax machine, e-mail and electronic bill The new rate system also includes will further study any additional legal pay. some important safeguards meant to benefits the Postal Service enjoys that Despite electronic diversion, the prohibit worksharing discounts that its private sector competitors do not. Postal Service continues to add about exceed costs avoided by the Postal The Regulatory Commission will then 1.7 million new delivery points each Service. Now, worksharing on the part find a way to use the rate system to year, creating the need for thousands of mailers has been an important part level the playing field. of new routes and thousands of new let- of the productivity improvements at Fourth, the Postal Accountability ter carriers to work them. In addition, the Postal Service in recent years. and Enhancement Act improves Postal faster-growing parts of the country Mailers should get credit in the form of Service accountability, mostly by will need new or expanded postal facili- a discount for work they do to their strengthening oversight. Qualifications ties in the coming years. As more and mail, such as presorting and barcoding for membership on the Regulatory more customers turn to electronic or transporting mail deeper into the Commission would be stronger than forms of communication, letter car- postal system. The discounts they re- those for the Rate Commission so that riers are bringing fewer and fewer ceive, however, should have some ra- Commissioners would have a back- pieces of mail to each address they tional relation to the benefit the Post- ground in finance or economics. Com- serve. The rate increases that will be al Service gets from the worksharing. missioners would also have the power needed to maintain the Postal Serv- The Postal Service should continue to to demand information from the Postal ice’s current infrastructure, finance re- be free to use discounts to incent mail- Service, including by subpoena, and tirement obligations to its current em- ers to be more efficient. They also have the power to punish them for vio- ployees, pay for new letter carriers and should not be forced to impose large lating rate and service regulations. In build facilities in growing part of the rate increases on workshared mail in addition, the Commission will make an country will only further erode mail order to comply with a strict prohibi- annual determination as to whether volume. tion on discounts in excess of costs the Postal Service is in compliance As I’ve mentioned, the Postal Service avoided. Discounts in excess of costs with rate law and meeting service has been trying to improve on its own. avoided, however, should be temporary standards and will have the power to They are making progress, but there is and reasonable. Our worksharing lan- punish them for any transgressions. only so much they can do. Even if the guage strikes a good balance in that it Fifth, the Postal Accountability and economy begins to recover more quick- prohibits the Postal Service from out- Enhancement Act revises two provi- ly and the Postal Service begins to see sourcing work that could be performed sions from the Postal Civil Service Re- volume and revenues improve, we will cheaper in house while maintaining tirement System Funding Reform Act still need to make fundamental pricing flexibility. in an effort to shore up the Postal changes in the way the Postal Service The second major provision in the Service’s finances in the years to come. operates in order to make them as suc- Postal Accountability and Enhance- As our colleagues may be aware, that cessful in the 21st Century as they were ment Act requires the Postal Regu- bill requires the Postal Service, begin- in the 20th Century. latory Commission to set strong serv- ning in 2006, to deposit any savings it This is where the Postal Account- ice standards for the Postal Service’s enjoys by virtue of lower pension pay- ability and Enhancement Act comes in. Market Dominant products, a category ments into an escrow account. In this First, our bill begins the process of de- made up mostly of those products, like bill, we eliminate that requirement in

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00109 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6002 CONGRESSIONAL RECORD — SENATE May 20, 2004 order to allow the Postal Service to changes to the way the Postal Service gent views were seriously considered spend the money that would have gone operates. We now have everyone from throughout our eight hearings. I also into escrow according to the plan sub- the National Association of Letter Car- wish to commend my colleague from mitted by the Postal Service in Sep- riers to former opponents of reform Delaware, Senator CARPER, for his tember of last year, which called for like UPS supporting our efforts, as well strong and early commitment to postal using most of the savings to begin pay- as those in the House. I know there are reform. ing down the Postal Service’s $50 bil- still some concerns about certain pro- I support modernizing the U.S. Post- lion retiree health obligation. The bill visions in our bill, but I look forward al Service to ensure that its mission of Senator COLLINS and I are introducing to working with Senator COLLINS and providing 6 days a week universal serv- today also reverses the provision in the each of our colleagues in the coming ice at an affordable rate is preserved. Postal Civil Service Retirement Sys- weeks to continue this momentum and Although the legislation introduced tem Funding Reform Act that made get a bill through Congress that can be today responds to many of the rec- the Postal Service the only Federal signed into law this year. ommendations and concerns we heard agency shouldered with the burden of It’s amazing to me to think that the in our hearings, it wisely rejects oth- paying the additional pension benefits Postal Service, something Senator ers. However, like most bills, there are owed to their employees by virtue of STEVENS was able to put together at provisions that trouble me. I am par- past military service. the beginning of his career, could have ticularly concerned with the sections Finally, and most importantly, the lasted so long and had such an impact relating to worksharing and changes to bill preserves universal service and the on every American. I’m hopeful that the Federal Employees’ Compensation postal monopoly and forces the Postal the model Senator COLLINS and I have Act (FECA). I will continue to work Service to concentrate solely on what set out in this bill today can last at with the bill’s sponsors to address it does best—processing and delivering least that long and have just as posi- these provisions, which I believe do not the mail to all Americans. Our bill lim- tive an impact on our nation and our promote cost savings for the Postal its the Postal Service, for the first economy as the Postal Service did so Service or fairness for postal workers. time, to providing ‘‘postal services,’’ many years ago. I look forward to working with my meaning they would be prohibited from Mr. STEVENS. Mr. President, I am colleagues on this legislation to guar- engaging in other lines of business, pleased to join Chairman COLLINS and antee that the U.S. Postal Service will such as e-commerce, that draw time Senator CARPER as an original cospon- be in position to best serve the public and resources away from letter and sor of S. 2468, the Postal Account- in the 21st century, be a model em- package delivery. It also explicitly pre- ability and Enhancement Act. In 2002, ployer, and protect the retirement fu- serves the requirement that the Postal the President formed a Commission to ture of its employees. Service ‘‘bind the Nation together evaluate the operations of the United By Mr. BOND (for himself, Mr. through the mail’’ and serve all parts States Postal Service. Earlier this HARKIN, Mr. DURBIN, Mr. TAL- of the country, urban, suburban and year, the President’s Commission ENT, Mr. GRASSLEY, Mr. COLE- rural, in a non-discriminatory fashion. issued a comprehensive report filled MAN, Mr. FITZGERALD, and Mr. Any service standards established by with suggestions on how to improve PRYOR): the Postal Regulatory Commission will the Postal Service. Senator COLLINS S. 2470. A bill to enhance navigation continue to ensure delivery to every became actively engaged on the issue capacity improvements and the eco- address, every day. In addition, the bill of postal reform and held a series of system restoration plan for the Upper maintains the prohibition on closing hearing this year on postal reform. Mississippi River and Illinois Water- post offices solely because they operate This bill is the product of the postal re- way System; to the Committee on En- at a deficit, ensuring that rural and form hearings held before the Govern- vironment and Public Works. urban customers continue to enjoy full ment Affairs Committee. Mr. BOND. Mr. President, today, I access to retail postal services. I expect I will have suggestions on join my colleagues, Senators HARKIN, The President’s Commission, while this legislation as the bill moves DURBIN, TALENT, GRASSLEY, COLEMAN, calling for the preservation of uni- through the legislative process. How- FITZGERALD and PRYOR to introduce bi- versal service and the postal monopoly, ever, I support Senator COLLINS’s com- partisan legislation to provide trans- opened the door for future changes by mitment to postal reform. I look for- portation efficiency and environmental recommending that the Regulatory ward to working with her and Senator sustainability on the Mississippi and Commission be given the authority to CARPER in Committee and on the Sen- Illinois Rivers. make them themselves. While I believe ate floor to ensure the success of this As the world becomes more competi- that Congress will find it difficult to legislation. tive, we must also. In the heartland, roll back universal service or limit the Mr. AKAKA. Mr. President, I am the efficiency, reliability, capacity, postal monopoly in the future if it is pleased to join with Senator COLLINS and safety of our transportation op- deemed necessary to do so, I believe and Senator CARPER, who today have tions are critical—often make-or- the recommendation from the Presi- introduced the Postal Accountability break. As we look 50 years into the fu- dent’s Commission would give too and Enhancement Act. I commend both ture, and as we anticipate and try to much power to a relatively small, po- of my Governmental Affairs Com- promote commercial and economic litical body. In order to keep Congress mittee colleagues for their leadership growth, we have to ask ourselves a fun- focused on the Postal Service’s future, in crafting a postal reform bill. damental question: should we have a however, our bill asks the Regulatory For some time, the General Account- system that permits and promotes Commission to report every three ing Office has warned that the long- growth, or should we be satisfied to re- years on the state of universal service term financial outlook for the U.S. strict our growth to the confines of a and the postal monopoly. When nec- Postal Service was at risk without sig- transportation straight jacket designed essary, they would also make rec- nificant changes. At the request of the not for 2050, but for 1980? ommendations to Congress when they Governmental Affairs Committee, the Further, we must ask ourselves if feel like one is necessary. U.S. Postal Service developed a trans- dramatic investments should be made We have a once-in-a-generation op- formation plan that offered its vision to address environmental problems and portunity this year to enact meaning- for the future. Late in 2002, a Presi- opportunities that exist on these great ful postal reform legislation. The dential Postal Commission was con- waterways. House Government Reform Committee vened, which issued a number of rec- In both cases, the answer is, ‘‘Of marked up its version of the Postal Ac- ommendations in 2003. course we should modernize and im- countability and Enhancement Act last Over the past 6 months, I have par- prove.’’ week by a unanimous 40–0 vote. The ticipated in a series of hearings chaired We have a system which is in envi- President has indicated his support for by Senator COLLINS which examined ronmental and economic decline. Jobs a bill, releasing a set of postal reform the recommendations of the Postal and markets and the availability of principles at the end of last year call- Commission. I commend Senator COL- habitat for fish and wildlife are at ing on Congress to make some key LINS for guaranteeing that the diver- stake.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00110 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6003 We cannot be for increased trade, nomic Coordinating Committee, among SECTION 1. FINDINGS. commercial growth, and job creation the States along the Upper Mississippi Congress finds that— without supporting the basic transpor- and Illinois waterways, and there have (1) in section 1103(a)(2) of the Water Re- sources Development Act of 1986 (100 Stat. tation infrastructure necessary to been 44 meetings of the Navigation and 4225), Congress recognized the Upper Mis- move goods from buyers to sellers. New Environmental Coordination Com- sissippi River System as ‘‘a nationally sig- efficiency helps give our producers an mittee. Additionally, there have been nificant ecosystem and a nationally signifi- edge that can make or break opportu- 130 briefings for special interest groups, cant commercial navigation system’’ and de- nities in the international market- 24 newsletters. There have been six sets clared that the system ‘‘shall be adminis- place. of public meetings in 46 locations with tered and regulated in recognition of its sev- Seventy years ago, some argued that over 4,000 people in attendance. To say eral purposes’’; (2) inaction on construction of new locks a transportation system on the Mis- the least, this has been a very long, will lead to economic decline, and inaction sissippi River was not justified. Con- very transparent, and very representa- on implementation of an enhanced eco- gress decided that its role was not to tive process. system restoration program will lead to fur- try to predict the future but to shape However, while we have been study- ther environmental decline; the future and decided to invest in a ing, our competitors have been build- (3) the Upper Mississippi River and Illinois system despite the naysayers. Over 80 ing. Given the extraordinary delay so Waterway carry approximately 60 percent of million tons per year later, it is clear far, and given the reality that large the corn exports of the United States and 45 that the decision was wise. scale construction takes not weeks or percent of the soybean exports of the United States, providing a significant positive bal- Now, that system that was designed months, but decades, further delay is ance of trade benefit for the Nation; for paddlewheel boats and to last 50 no longer an option. (4) the movement of more than 100,000,000 years is nearly 70 years old and we This is why I am leased to be joined tons of product supports 400,000 full- and must make decisions that will shape by a bipartisan group of Senators who part-time jobs in the United States, gener- the next 50–70 years. As we look ahead, agree that we must improve the effi- ating over $4,000,000,000 in income and we must promote growth policies that ciency and the environmental sustain- $12,000,000,000 to $15,000,000,000 in economic help Americans who produce and em- ability of our great resources. Today, activity; (5) Midwestern utilities use coal, the sec- ploy. we introduce legislation to adopt the ond largest category of cargo shipped on the We must work for policies that pro- initial recommendations of the Corps Upper Mississippi River System, to produce mote economic growth, job creation, of Engineers and their public and pri- cost-efficient energy; and environmental sustainability. We vate partners to increase the lock ca- (6) keeping the cost of transportation know that trade and economic growth pacity on the Upper Mississippi and Il- lower through competition between trans- can be fostered or it can be discouraged linois Rivers and the begin an ambi- portation modes is the United States farm- by policies and other realities which tious program of ecosystem restora- er’s competitive advantage in capturing fu- include the quality of our transpor- ture global growth in agricultural exports; tion. (7) United States farm and trade policies tation infrastructure. This plan gets the Corps back in the work to open world markets and promote So in 20 and 30 and 40 and 50 years, business of building the future, rather United States exports, and water resource where will the growth in transpor- than just haggling about predicting the policy has provided a low-cost transportation occur to accommodate the future. More will need to be done later tation alternative to other modes; growth in demand for commercial ship- on ecosystem and lock expansions fur- (8) the Department of Agriculture projects ping? The Department of Transpor- ther upstream, but this begins the im- that corn exports will grow 44 percent over 1 tation suggests that congestion on our provement schedule underway. the next decade, with a ⁄3 increase in growth roads and rails will double in the next exported through the Gulf of Mexico; In this legislation, we authorize $1.46 (9) those transportation savings— quarter century. The fact of the matter billion for ecosystem restoration—two (A) provide higher income to farmers and is that the great untapped capacity is times the federal share of lock capac- rural communities; and on our water. ity expansion which we authorize on (B) generate Federal and State taxes to This is good news because water locks 20–25 on the Mississippi River and support community activities, quality of transportation is efficient, it is safe, it Peoria and LaGrange on the Illinois. life, and national benefits; conserves fuel, and it protects the air The new 1,200 foot locks on the Mis- (10) the construction of new 1,200-foot locks and the environment. One medium- and lock extensions will provide more than sissippi River will provide equal capac- 48,000,000 man-hours of employment over 10 sized barge tow can carry the freight of ity in the bottleneck region below the to 15 years; 870 trucks. That fact alone speaks vol- 1,200 foot lock 19 at Keokuk above (11) foreign competitors have worked over umes to the benefits of water. If we locks 26 and 27 near St. Louis. Half the the last 10 years to improve foreign transpor- can, would we rather have 870 diesel en- cost of the new locks will be paid for by tation infrastructure to compete more effec- gines on the roads of downtown St. private users who pay into the Inland tively with United States production; Louis, or two diesel engines on the Waterways Trust fund. Additional (12) the inland waterway transportation water watching the traffic buildup and funds will be provided for mitigation system moves 16 percent of the freight in the United States for 2 percent of the cost, in- smog glide by? and small scale and nonstructural The veteran Chief Economist at cluding more than 100,000,000 tons on the measures to improve efficiency. Upper Mississippi River System; USDA testified that transportation ef- As we look ahead, the locks at 14–18 (13) the Department of Transportation ficiency and the ability of farmers to will have to be addressed as will fur- projects that freight congestion on the roads win markets at higher prices are ‘‘fun- ther investments to ecosystem restora- and rails in the United States will double in damentally related.’’ He predicts that tion efforts. the next 25 years and that water transpor- corn exports over the next 10 years will This effort is supported by a broad- tation will need to play an increasing role in rise 45 percent, 70 percent of which will based group of the States, farm groups, moving freight; travel down the Mississippi. shippers, labor, and those who pay (14) the movement of 100,000,000 tons on the Over the past 35 years, waterborne river system in 4,400 15-barge tows out of taxes into the Trust Fund for improve- harms way would require an equivalent of commerce on the Upper Mississippi ments. 4,000,000 trucks or 1,000,000 rail cars moving River has more than tripled. The sys- I thank my colleagues for their work directly through our communities; tem currently carries 60 percent of our together on this bipartisan effort. (15) econometric models are useful analytic Nation’s corn exports and 45 percent of I ask unanimous consent that the tools to provide valuable information, but our Nation’s soybean exports and it text of the bill be printed in the are unable to account for every market does so at two-thirds the cost of rail— RECORD. trend, development, and public policy im- when rail is available. There being no objection, the bill was pact; (16) the current capacity of the Upper Mis- Over the previous 11 years, the U.S. ordered to be printed in the RECORD, as Army Corps of Engineers have spent sissippi River System is— follows: (A) declining by 10 percent annually be- $70 million doing a six year study. Dur- S. 2470 cause of unplanned closures of a 70-year old ing that period, there have been 35 Be it enacted by the Senate and House of Rep- infrastructure; and meetings of the Governors Liaison resentatives of the United States of America in (B) reducing the potential for sustained Committee, 28 meetings on the Eco- Congress assembled, growth;

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(17) the current 600-foot lock system was (A) the segment of the Mississippi River (i) IN GENERAL.—Except as provided in designed for steamboats, at a time when from the confluence with the Ohio River, clause (ii), the Federal share of the cost of 4,000,000 tons moved on the Mississippi River River Mile 0.0, to Upper St. Anthony Falls carrying out an ecosystem restoration and a total of 2,000,000,000 bushels of corn Lock in Minneapolis-St. Paul, Minnesota, project under this paragraph shall be 65 per- were produced nationally, compared to River Mile 854.0; and cent. today, when 100,000,000 to 120,000,000 tons are (B) the Illinois Waterway from its con- (ii) EXCEPTION FOR CERTAIN RESTORATION shipped and the national production of corn fluence with the Mississippi River at Graf- PROJECTS.—In the case of a project under exceeds 10,000,000,000 bushels; ton, Illinois, River Mile 0.0, to T.J. O’Brien this paragraph for ecosystem restoration, (18) the 600-foot locks at Locks and Dam Lock in Chicago, Illinois, River Mile 327.0. the Federal share of the cost of carrying out Nos. 20, 21, 22, 24, and 25 on the Upper Mis- (b) AUTHORIZATION OF CONSTRUCTION OF the project shall be 100 percent if the sissippi River and LaGrange and Peoria on NAVIGATION IMPROVEMENTS.— project— the Illinois Waterway are operating at 80 (1) SMALL SCALE AND NONSTRUCTURAL MEAS- (I) is located below the ordinary high water percent utilization and are unable to provide URES.—At a cost of $24,000,000 in funds from mark or in a connected backwater; for or process effectively the volatile growth the general fund of the Treasury, to be (II) modifies the operation or structures of traditional export grain markets; matched in an equal amount from the Inland for navigation; or (19) based on the current construction Waterways Trust Fund (which is paid by pri- (III) is located on federally owned land. schedule of new locks and dams on the in- vate users), the Secretary shall— (iii) NONGOVERNMENTAL ORGANIZATIONS.— land system, lock modernization will need to (A) construct mooring facilities at Locks Nongovernmental organizations shall be eli- take place over 30 years, starting imme- 12, 14, 18, 20, 22, 24, and LaGrange Lock; gible to contribute the non-Federal cost- diately, as an imperative to avoid lost export (B) provide switchboats at Locks 20 sharing requirements applicable to projects grain sales and diminished national competi- through 25 over 5 years for project operation; under this paragraph. tiveness; and (D) LAND ACQUISITION.—The Secretary may (20) the Corps of Engineers has been study- (C) conduct development and testing of an acquire land or an interest in land for an ing the needs for national investments on appointment scheduling system. ecosystem restoration project from a willing the Upper Mississippi River System for the owner through conveyance of— (2) NEW LOCKS.—At a cost of $730,000,000 in last 15 years and has based initial rec- funds from the general fund of the Treasury, (i) fee title to the land; or (ii) a flood plain conservation easement. ommendations on the best available infor- with an equal matching amount provided (3) SPECIFIC PROJECTS AUTHORIZATION.— mation and science; from the Inland Waterways Trust Fund (A) IN GENERAL.—Subject to subparagraph (21) the Upper Mississippi and Illinois Riv- (which is paid by the private users), the Sec- (B), the ecosystem restoration projects de- ers ecosystem consists of hundreds of thou- retary shall construct new 1,200-foot locks at scribed in paragraph (2) shall be carried out sands of acres of bottomland forests, islands, Locks 20, 21, 22, 24, and 25 on the Upper Mis- at a total construction cost of $1,460,000,000. backwaters, side channels, and wetlands; sissippi River and at LaGrange Lock and Pe- (B) LIMITATION ON AVAILABLE FUNDS.—Of (22) the river ecosystem is home to 270 spe- oria Lock on the Illinois Waterway. cies of birds, 57 species of mammals, 45 spe- the amounts made available under subpara- (3) MITIGATION.—At a cost of $100,000,000 in graph (A), not more than $35,000,000 for each cies of amphibians and reptiles, 113 species of funds from the general fund of the Treasury, fish, and nearly 50 species of mussels; fiscal year shall be available for land acqui- with an equal matching amount provided sition under paragraph (2)(D). (23) more than 40 percent of migratory wa- from the Inland Waterway Trust Fund (4) IMPLEMENTATION REPORTS.— terfowl and shorebirds in North America de- (which is paid by private users), the Sec- pend on the river for food, shelter, and habi- (A) IN GENERAL.—Not later than June 30, retary shall conduct mitigation for new 2005, and every 4 years thereafter, the Sec- tat during migration; locks and small scale and nonstructural (24) the annual operation of the Upper Mis- retary shall submit to the Committee on En- measures authorized under paragraphs (1) vironment and Public Works of the Senate sissippi River Basin needs to take into con- and (2). sideration opportunities for ecosystem res- and the Committee on Transportation and (c) ECOSYSTEM RESTORATION AUTHORIZA- toration; Infrastructure of the House of Representa- TION.— (25) development since the 1930’s has al- tives an implementation report that— (1) OPERATION.—To ensure the environ- tered and reduced the biological diversity of (i) includes baselines, benchmarks, goals, mental sustainability of the existing Upper the large flood plain river systems of the and priorities for ecosystem restoration Mississippi River and Illinois Waterway Sys- Upper Mississippi and Illinois Rivers; projects; and tem, the Secretary shall, consistent with re- (26) Congress recognizes the need for sig- (ii) measures the progress in meeting the quirements to avoid any adverse effects on nificant Federal investment in the restora- goals. navigation, modify the operation of the tion of the Upper Mississippi and Illinois (B) ADVISORY PANEL.— Upper Mississippi River and Illinois Water- River ecosystems; (i) IN GENERAL.—The Secretary shall ap- way System to address the cumulative envi- (27) the Upper Mississippi River System point and convene an advisory panel to pro- ronmental impacts of operation of the sys- provides important economic benefits from vide independent guidance in the develop- tem and improve the ecological integrity of recreational and tourist uses, resulting in ment of each implementation report under the Upper Mississippi River and Illinois the basin’s receiving more visitors annually subparagraph (A). River. than most National Parks, with the eco- (ii) PANELISTS.—Panelists shall include— (2) ECOSYSTEM RESTORATION PROJECTS.— systems and wildlife being the main attrac- (I) 1 representative of each of the State re- (A) IN GENERAL.—The Secretary shall, con- tions; and source agencies (or a designee of the Gov- sistent with requirements to avoid any ad- (28) the Upper Mississippi River System— ernor of the State) from each of the States of verse effects on navigation, carry out eco- (A) includes 284,688 acres of National Wild- Illinois, Iowa, Minnesota, Missouri, and Wis- system restoration projects to attain and life Refuge land that is managed as habitat consin; maintain the sustainability of the ecosystem for migratory birds, fish, threatened and en- (II) 1 representative of the Department of of the Upper Mississippi River and Illinois dangered species, and a diverse assortment of Agriculture; River in accordance with the general frame- other species and related habitats; and (III) 1 representative of the Department of work outlined in the Plan. (B) provides many recreational opportuni- Transportation; (B) PROJECTS INCLUDED.—Ecosystem res- ties. (IV) 1 representative of the United States toration projects may include— SEC. 2. ENHANCED NAVIGATION CAPACITY IM- Geological Survey; PROVEMENTS AND ECOSYSTEM RES- (i) island building; (V) 1 representative of the United States TORATION PLAN FOR THE UPPER (ii) construction of fish passages; Fish and Wildlife Service; MISSISSIPPI RIVER AND ILLINOIS (iii) floodplain restoration; (VI) 1 representative of the Environmental WATERWAY SYSTEM. (iv) water level management (including Protection Agency; (a) DEFINITIONS.— In this section: water drawdown); (VII) 1 representative of affected land- (1) PLAN.—The term ‘‘Plan’’ means the pre- (v) backwater restoration; owners; ferred integrated plan contained in the docu- (vi) side channel restoration; (VIII) 2 representatives of conservation and ment entitled ‘‘Integrated Feasibility Report (vii) wing dam and dike restoration and environmental advocacy groups; and and Programmatic Environmental Impact modification; (IX) 2 representatives of agriculture and Statement for the UMR–IWW System Navi- (viii) island and shoreline protection; industry advocacy groups. gation Feasibility System’’ and dated April (ix) topographical diversity; (iii) CO-CHAIRPERSONS.—The Secretary and 29, 2004. (x) dam point control; the Secretary of the Interior shall serve as (2) SECRETARY.—The term ‘‘Secretary’’ (xi) use of dredged material for environ- co-chairpersons of the advisory panel. means the Secretary of the Army. mental purposes; (d) AUTHORIZATION OF APPROPRIATIONS.— (3) UPPER MISSISSIPPI RIVER AND ILLINOIS (xii) tributary confluence restoration; Except as otherwise provided in this sec- WATERWAY SYSTEM.—The term ‘‘Upper Mis- (xiii) spillway modification to benefit the tion— sissippi River and Illinois Waterway Sys- environment; (1) there are authorized to be appropriated tem’’ means the projects for navigation and (xiv) land easement authority; and such sums as are necessary to carry out this ecosystem restoration authorized by Con- (xv) land acquisition. section for fiscal years 2006 through 2020; and gress for— (C) COST SHARING.— (2) after fiscal year 2020—

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00112 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6005 (A) funds that have been made available as other wildlife. All of this wildlife, down the Mississippi River to the Gulf under this section, but have not been ex- and the abundant plant life, too, are where they are shipped to markets pended, may be expended; and important to the character and life of overseas. (B) funds that have been authorized to be the Mississippi River. Approximately appropriated under this section, but have not To me, this issue is a question of been made available, may be made available. 40 percent of North America’s water- common sense. Water transportation is Mr. HARKIN. Mr. President, I rise to fowl and shorebirds use the Mississippi safe, clean and efficient. One medium discuss a bipartisan measure on which Flyway. Parts of the Upper Mississippi barge tow can carry the same freight River serve could well be the most im- I have worked closely with my col- as 870 tractor trailer trucks. This re- portant area for migrating diving league from Missouri, Senator BOND. lieves highway congestion, reduces ducks in the United States. The Mis- The purpose of this bill is to expand shipping costs, and reduces fuels con- sissippi River also serves as habitat for the transportation infrastructure and sumption and air emissions. Despite breeding and wintering birds, including improve the ecosystem of the upper this, we’ll still have opponents to this Mississippi River. the bald eagle. I have been deeply involved with Mis- We are all aware of the problems that bill saying that it isn’t good for the en- sissippi navigation issues because of have plagued the Corps’ past work on vironment. their enormous importance to farmers the Mississippi River. But the Corps This bill is a win-win. It will take in Iowa. Efficient river transportation has pledged to dramatically step up its steps to reduce some of the burdens on is critical to keeping Iowa commodity emphasis on environmental protection. our transportation systems, as well as costs competitive with foreign and do- We need to work with the Corps to en- providing more opportunities for our mestic alternatives. When shipping on sure that all updates and renovations agricultural producers to export their the river is constrained, costs rise. of locks and dams are done with keen products. That, in turn, leads to price increases concern for the environment and for These locks are old and outdated. for moving bulk farm commodities by the fish and wildlife that depend on the The current 600-foot lock system was alternative means, mainly rail. These Mississippi River habitat. At the same price differentials seem relatively time, we need to give the Corps the au- designed for streamboats, at a time small compared to the total price, but thorization and funding it needs to ac- when 4 million tons moved on the Mis- they make a huge difference in farm complish real ecosystem restoration, sissippi River and a total of 2 billion income. and not just make up for the lost habi- bushels of corn were produced nation- Clearly, river traffic on the Mis- tat of specific identified species. The ally, compared to today, when 100 mil- sissippi is incredibly important to pro- legislation we are proposing accom- lion to 120 million tons are shipped and ducers in my State. As a result of traf- plishes this. the national production of corn exceeds fic congestion on the Mississippi, pro- We understand that this bill is going 10 million bushels. We need to bring ducers in the upper Midwest face to be a challenge in these difficult these locks into the 21st Century. longer shipping times, higher costs, budget times. But to not act would be and lost revenue. In the short run, en- If we don’t fix this aging infrastruc- penny wise and pound foolish. We need ture now, it will only become more hanced traffic management can im- to be thinking of the long-term eco- prove the situation. And it is impor- costly. If I get a hole in the roof of my nomic health of our agricultural pro- house, my wife and I may discuss how tant to have helper boats to push long ducers and shippers, hand in hand with barges through crowded locks. This bill to fix it, but we know we will make the the long-term health of the diverse repair. If you don’t make the repairs addresses these two matters. But we ecosystems in the river. I believe the and upgrades, the problem only gets need a longer-term solution, too. It is legislation we are proposing strikes a incredibly important that we mod- worse. That is what we have done to careful balance. I look forward to ernize a number of the locks on the working closely with my colleagues to the locks and dams on the Mississippi upper Mississippi—and we need to get achieve those goals. River. I don’t want this to be a situa- started as soon as possible. Mr. TALENT. Mr. President, I rise tion where the roof actually falls in— Existing law requires exhaustive we must modernize the system. analysis of river-use levels looking dec- today to as a cosponsor of legislation ades into the future. The studies re- to modernize our aging waterways in- I commend my colleague from Mis- quired for such predictions are, by frastructure on the Upper Mississippi souri and his leadership on this issue. their very nature, highly speculative at River and the Illinois River. This is a good bill and I am happy to I am glad to join my colleague from best. There is no shortage of critics of join him as a cosponsor. I look forward the U.S. Army Corps of Engineers and Missouri, Senator BOND as well as Sen- to continuing to work with him on this its methods. But we can all agree that, ators HARKIN and GRASSLEY in intro- important issue. to remain competitive, America needs ducing a bill to upgrade and modernize the failing infrastructure on the Upper Mr. GRASSLEY. Mr. President, I am to keep the arteries and veins of Amer- pleased to be an original cosponsor of ica’s river transportation system in Mississippi and Illinois Rivers. This $2.9 billion authorization will bipartisan legislation to authorize the smooth running order. Last year, I vis- also bring great benefits to the fish modernization of the lock and dam in- ited Brazil and saw first-hand their re- frastructure and enhanced environ- markable efforts to modernize and im- habitat along the river through con- mental restoration on the Upper Mis- prove their river transportation sys- struction of fish passages, floodplain sissippi and Illinois Rivers. tem. We need to keep up with countries restoration and side channel restora- like Brazil, if we are going to remain tion. I commend Senators BOND and Modernizing the inland waterway competitive. We simply cannot wait HARKIN for working to find some bal- transportation system remains a high any longer to authorize construction of ance in this important issue. I have al- priority for the Upper Mississippi River 1,200-foot locks so barge tows can move ways said, navigation and habitat res- basin and for agricultural, commercial, through the upper Mississippi and Illi- toration do not have to be mutually ex- and labor interests that rely on the nois without being split. clusive. river to transport their products. In ad- The locks and dams that are in place However, this is not an easy issue. dition to strong grassroots support for today are vital to our national econ- Over the years, I have heard time and this endeavor, the State legislatures omy. These national waterways serve time again from constituents and na- have passed resolutions endorsing lock as our competitive advantage to our tional leaders who are concerned about and dam modernization, ecosystem res- overseas competitors, and this a clean the environment, as I am. People cor- toration, and Congressional action. rectly insist that we maintain a bal- and efficient way to move goods and ance between navigation, flood control, commodities for export. The Upper Agriculture and related industries in and environmental protection. Habitat Mississippi River and Illinois Water- Iowa and the other States on the Upper for many species, and the Mississippi way carry approximately 60 percent of Mississippi remain competitive in river ecosystem as a whole, has dete- the country’s corn exports and 45 per- world markets, despite higher produc- riorated since the construction of the cent of our soybean exports, providing tion costs, because of the efficiencies original lock system in the 1930’s. a significant positive balance of trade inherent in river transport. More than The Mississippi River is home to a benefit for the Nation. Over half of the 60 percent of all grain exports move wide variety of fish and birds, as well Soybeans produced in Missiouri head from the Upper Mississippi, making

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00113 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6006 CONGRESSIONAL RECORD — SENATE May 20, 2004 this competitive advantage vital to Improving navigation efficiency on and Illinois Rivers are two of the major their ability to operate their business. the upper Mississippi and Illinois Riv- routes by which Illinois agricultural Over 400,000 full and part-time jobs in ers has been a high priority issue for commodities are distributed to the our basin are connected to the river. Midwest farmers for years. Our agricul- world. In fact, roughly 70 percent of Without modernization, Midwest pro- tural competitive position in accessing U.S. agricultural products are trans- ducers will not be able to compete in world markets is greatly impacted by ported through the Mississippi River anticipated world grain export growth. the efficiency of our transportation system. More than 60 million tons of Furthermore, a recent study esti- system. Farmers depend on the lock commodities are transported on the Il- mates the loss of 30,000 jobs nation- system to move grain efficiently to linois River alone, including more than wide, $562 million annually in lost farm market. They also depend on the locks half of Illinois’ annual corn crop. income and $185 million annually in for the movement of crop production By controlling the water’s flow, locks lost State and local tax receipts if the inputs up the Mississippi River. and dams help facilitate the transpor- lock and dam system is not upgraded. Our entire region benefits as com- tation of commodities along rivers. Providing U.S. agricultural producers mercial barge traffic moves not only The outdated and deteriorating 600-foot every opportunity to export their prod- agricultural products, but also aggre- locks on the Mississippi and Illinois ucts to world markets is essential for gate, cement, salt, and other important Rivers create unnecessary delays be- their financial well-being and future items efficiently, safely and in an envi- cause the locks are too small to accom- viability. ronmentally sound manner. modate modern size barge tows. This While it is important to consider eco- The Upper Mississippi River Eco- causes transportation costs to rise and nomic benefits, we must also protect system Restoration and navigation bill results in lost market share for Illinois the ecosystem of the river. A coopera- also represents a landmark oppor- agriculture producers. tive solution can meet the needs of tunity to address environmental and Along with modernizing this river farmers and waterway users while at economic ramifications of the entire system’s locks, we must not allow the the same time improve the environ- lock and dam system, rather than the deterioration of its ecosystem. A coop- ment and stem the decline of the Riv- previous piecemeal approaches. The erative solution can meet the needs of ers’ ecosystems through enhanced au- Corps of Engineers has responded to waterway users and, at the same time, thorities. Restoring the ecosystem is critics who called for a comprehensive improve the environment and stem the not mutually exclusive to lock mod- evaluation, coupling an assessment of decline of the Mississippi and Illinois ernization. the economic need for navigation im- Rivers’ ecosystems. This legislation After 12 years and $70 million of provements and the ecosystem restora- strikes a good balance by upgrading study, we firmly believe that the time tion components necessary to protect the lock system while protecting the has come to take action. I urge my col- our region in the process. As outlined ecosystem of these rivers. in this legislation, the $1.46 billion eco- leagues to support this legislation pro- I commend Senator BOND for intro- viding initial authorization to begin system restoration package includes ducing this important legislation and the modernization process and enhance the construction of fish passages, flood- am pleased to join him in cosponsoring plain restoration on thousands of acres the authorities to address broader eco- this bill. Illinois farmers and other pro- and side channel restoration, along system restoration. Without imme- ducers have waited far too long for diate action, the health of both the ag- with other measures. This is indeed a new approach to im- these improvements. This bill brings riculture economy and river ecosystem proving our economy, by providing the Upper Mississippi and Illinois Riv- will continue to decline. construction jobs and boosting our ers Waterway System into the 21st cen- Mr. COLEMAN. Mr. President, the tury. Mississippi River is a national treasure farm economy, and protecting our en- and this legislation authorizes pro- vironment, by increasing the efficiency By Mr. NELSON of Florida: of barge traffic while initiating impor- grams that will help restore water S. 2472. A bill to require that notices tant water quality measures. quality and rehabilitate wildlife and to consumers of health and financial I am proud to be a coauthor of this services include information on the wildlife habitat on the river. important legislation. The annual operation of the Upper Mr. FITZGERALD. Mr. President, I outsourcing of sensitive personal infor- Mississippi River Basin needs to take mation abroad, to require relevant rise today with Senator BOND in sup- into consideration opportunities for port of a bill to put into place rec- Federal agencies to prescribe regula- ecosystem restoration. The Upper Mis- ommendations by the Army Corps of tions to ensure the privacy and secu- sissippi River ecosystem consists of Engineers for navigation capacity im- rity of sensitive personal information hundreds of thousands of acres of bot- provements and ecosystem restoration outsourced abroad, to establish re- tomland forests, islands, backwaters, for the Upper Mississippi and Illinois quirements for foreign call centers, and side channels and wetlands. The Upper Rivers Waterway System. for other purposes; to the Committee Mississippi River system includes Modernizing the inland waterway on the Judiciary. 284,688 acres of National Wildlife Ref- transportation system is a high pri- Mr. NELSON of Florida. Mr. Presi- uge land that is managed as habitat for ority for the Upper Mississippi River dent, I rise today to express my deep migratory birds, fish, threatened and basin and for agricultural, commercial, concern about an issue that illustrates endangered species and a diverse as- and labor interests that rely on the the continuing erosion of Americans’ sortment of other species and related river to transport their products. With- privacy rights. My concern is related habitats. out modernization, Midwest producers to the practice of outsourcing. When I am very pleased that this bill gives will not be able to fully participate in U.S. companies outsource sensitive ecosystem restoration the attention growing world markets. customer information for processing that it deserves. On April 29, 2004, the Army Corps of overseas, they may be outsourcing our The Department of Transportation Engineers released its proposal to up- privacy rights along with it. projects that water transportation will grade the locks and to provide for eco- We all know that recently it has be- play an increasing role in moving system restoration on these two water- come popular for American companies freight due to congestion on roads and ways. I have consistently fought for to send internal paperwork to be done railways. More efficient use of river funding to revitalize these locks to in other countries, by foreign compa- transportation will help the environ- help Illinois producers more easily nies. ment reducing traffic congestion and transport their products to market. I When a U.S. company allows a for- emissions on our Nation’s highways. have joined Senator BOND as a cospon- eign company to process customer For example, a 15 barge tow can carry sor to this bill because our country’s data, the foreign company may be as much as 870 semi-tractor trailer agriculture and business interests have given access to the most sensitive trucks. Fuel efficiency for barge trans- waited far too long for these improve- types of customer information. Our portation is 2.5 times that of rail trans- ments. health records, bank account numbers, port and nearly 10 times that of truck The Mississippi River plays a vital social security numbers, tax forms, and transport. role in our economy. The Mississippi credit card numbers are now being

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00114 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6007 shipped abroad—without the knowl- Second, U.S. companies in the health S. 2472 edge of the customer and beyond the care industry and the financial indus- Be it enacted by the Senate and House of Rep- reach of U.S. privacy laws. try must promise their customers that resentatives of the United States of America in This phenomenon means that con- they are complying with U.S. privacy Congress assembled, sumers are almost powerless to stop laws, which are designed to keep sen- SECTION 1. SHORT TITLE. foreign scam artists from misusing sitive customer information secure This Act may be cited as the ‘‘Increasing Notice of Foreign Outsourcing Act’’. their sensitive information. What types even when it is outsourced. of abuses can occur under this sce- Third, U.S. companies in the health SEC. 2. HEALTH PRIVACY. care industry and financial industry (a) FOREIGN-BASED BUSINESS ASSOCIATE.— nario? In this section, the term ‘‘foreign-based busi- In one recent shocking example, a must make sure that each foreign com- ness associate’’ means a business associate, U.S. hospital hired a medical tran- pany that is handling sensitive cus- as defined under the regulations promul- scriber in Pakistan through a subcon- tomer information has agreed by con- gated pursuant to section 264(c) of the tractor to work with sensitive patient tract to meet U.S. privacy standards Health Insurance Portability and Account- health information. Later, the foreign and to keep sensitive customer infor- ability Act of 1996 (42 U.S.C. 1320d–2 note), worker claimed that she had not been mation secure. whose operation is based outside the United paid for her work. Fourth, U.S. companies may examine States and that receives protected health in- the business operations of the foreign formation and processes such information So, you know what she did? She outside the United States. threatened to post patients’ medical company to make sure the foreign company is meeting privacy standards (b) NOTICES.— records online unless she was paid. (1) IN GENERAL.—The Secretary of Health Luckily, she got her paycheck and and is keeping sensitive customer in- and Human Services (referred to in this sec- doesn’t seem to have posted anything formation secure. tion as the ‘‘Secretary’’) shall revise the reg- Fifth, a foreign company must notify online. ulations prescribed pursuant to section 264(c) the U.S company of any data security But this situation shows us the po- of the Health Insurance Portability and Ac- breach. The U.S. company must then tential for gross violations of consumer countability Act of 1996 (42 U.S.C. 1320d–2 notify the U.S. regulatory agency, note) to require a covered entity (as defined privacy. The U.S. hospital said that it which can then hold the U.S. company under such regulations and referred to in never even knew that the foreign tran- accountable for the actions of the for- this section as a ‘‘covered entity’’), that scriber had been hired through a sub- eign company. outsources protected health information (as contractor and it therefore had never Finally, an employee of a foreign call defined under such regulations and referred bound her contractually to follow any center must tell a U.S. customer where to in this section as ‘‘protected health infor- privacy or security standards. the employee is located, if the U.S. cus- mation’’), outside the United States to include in such entity’s notice of privacy pro- Another potential abuse of offshoring tomer asks for this information. sensitive customer data is identity tections the following: I strongly believe that we need to act (A) The following information in simple theft. The illegal theft of someone’s now, before the privacy issues raised by language: identity is a profoundly disturbing and offshoring begin to explode. (i) Notification that the covered entity costly problem in this information age. Let me emphasize that I see this bill outsources protected health information to Moreover, illegal misuse of sensitive as both pro-consumer and pro-business. foreign-based business associates. information also can have national se- Consumers will be informed about how (ii) Any risks and consequences to the pri- curity implications. For example, data their sensitive information is handled vacy and security of protected health infor- about some of our Nation’s power grids and they can learn when security mation that arise as a result of the proc- allegedly has been outsourced to com- breaches occur. Additionally, foreign essing of such information outside the panies overseas. Imagine the harm that companies that handle customer data United States. (iii) Additional measures the covered enti- terrorists might do if they got hold of will be held accountable to the U.S. ty is taking to protect the protected health that type of confidential information. company that gives them their work. information outsourced for processing out- As our global economy expands at And U.S. companies will be upfront in side the United States. such a rapid pace, we simply cannot informing their customers about (B) A certification that the covered entity tolerate the outsourcing of American’s offshoring sensitive data before cus- has taken reasonable steps to ensure that privacy rights overseas. We need to be tomer backlash occurs. the handling of protected health information proactive on this potentially explosive With this sort of system in place, we will be done in compliance with applicable issue. Make no mistake, the Pakistani hopefully can reduce the chances of laws in all instances where protected health customer data being misused, and information is processed outside the United transcriber incident is not the first or States, including the reasons for the certifi- the last time that sensitive customer allow U.S. companies to play on a level playing field where all interested par- cation. information becomes endangered in a (2) EFFECTIVE DATE.—A covered entity foreign country. The time to act is ties know the rules of the game. shall be required to include in such entity’s now, instead of reacting only after our I have a history of trying to solve notice of privacy protections the informa- privacy rights are further eroded. consumer issues in ways that are not tion and certification described in paragraph In light of these circumstances, needlessly burdensome to U.S. busi- (1) for notices issued on or after the date on today I am introducing a bill—along nesses. That is why my office, as well which the Secretary prescribes regulations as Senator FEINSTEIN’s office, has met pursuant to this section or the date that is with Senator FEINSTEIN—that begins to several times with industry representa- 365 days after the date of enactment of this address these privacy and security con- tives during the development of this Act, whichever date is earlier. Nothing in cerns. The bill is called the INFO Act, bill. this subsection shall be construed to require which is short for The Increasing No- I was interested to find ways for busi- a covered entity to reissue notices issued be- tice of Foreign Outsourcing Act. nesses to protect consumer privacy fore the date on which the Secretary prescribes regulations pursuant to this section The INFO Act is designed to help en- rights without having to sharply raise sure that sensitive consumer informa- or the date that is 365 days after the date of prices or limit products and services. I enactment of this Act, whichever date is ear- tion is protected and that U.S. compa- believe that the INFO Act has achieved nies can be held accountable for break- lier, to include in such notices the informa- those goals. tion and certification described in paragraph downs in the security of customer in- Consumer privacy has always been (1). formation. one of my top priorities. Now, as al- (c) RULEMAKING.— Specifically, the INFO Act that we ways, I look forward to working with (1) IN GENERAL.— are introducing today would require all interested parties to resolve this (A) REGULATORY AUTHORITY.—The Sec- the following things: First, U.S. com- consumer privacy issue in a timely and retary shall— panies in the health care industry and effective manner. (i) prescribe such regulations consistent the financial industry must tell their I ask unanimous consent that the with paragraph (2) as may be necessary to customers that their sensitive health carry out this section with respect to foreign text of the bill be printed in the outsourcing; and information and financial information RECORD. (ii) determine the appropriate penalties to is being processed by companies in for- There being no objection, the bill was impose upon a covered entity for a violation eign nations, where privacy safeguards ordered to be printed in the RECORD, as of a provision of this subsection or sub- may be less stringent. follows: section (b).

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00115 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6008 CONGRESSIONAL RECORD — SENATE May 20, 2004

(B) PROCEDURES AND DEADLINES.—The regu- (3) EFFECTIVE DATE.—This subsection shall ferred to in this subsection as the ‘regulations described in subparagraph (A) shall take effect on the expiration of the date that latory agencies’) shall— be prescribed in accordance with all applica- is 365 days after the date of enactment of ‘‘(i) prescribe such regulations consistent ble legal requirements and shall be issued in this subsection. with paragraph (2) as may be necessary to final form not later than 365 days after the SEC. 3. FINANCIAL PRIVACY. carry out this subtitle with respect to for- date of enactment of this Act. (a) FOREIGN-BASED BUSINESS.—Section 509 eign outsourcing, with respect to the finan- (2) NECESSARY REGULATIONS.—The Sec- of the Gramm-Leach-Bliley Act (15 U.S.C. cial institutions subject to their jurisdiction retary shall prescribe regulations— 6809) is amended by adding at the end the fol- under section 505; and (A) requiring that a contract between a lowing: ‘‘(ii) determine the appropriate penalties covered entity and such entity’s foreign- ‘‘(12) FOREIGN-BASED BUSINESS.—The term to impose upon financial institutions for a based business associate contain a provision ‘foreign-based business’ means a non- violation of a provision of this subsection. that provides such entity with the right to affiliated third party whose operation is ‘‘(B) COORDINATION, CONSISTENCY, AND COM- audit such associate, as needed, to monitor based outside the United States and that re- PARABILITY.—The regulatory agencies shall performance under the contract; and ceives nonpublic personal information and consult and coordinate with each other for (B) requiring that foreign-based business processes such information outside the the purposes of assuring, to the extent possible, that the regulations prescribed by each associates and subcontractors of covered en- United States.’’. such agency are consistent and comparable tities be contractually bound by Federal pri- (b) FINANCIAL NOTICES.— with the regulations prescribed by the other vacy standards and security safeguards. (1) IN GENERAL.—Section 503(b) of the such agencies. (d) BREACH OF SECURITY.— Gramm-Leach-Bliley Act (15 U.S.C. 6803(b)) ‘‘(C) PROCEDURES AND DEADLINES.—The reg- (1) BREACH OF SECURITY OF THE SYSTEM.—In is amended— ulations described in subparagraph (A) shall this subsection, the term ‘‘breach of security (A) in paragraph (3), by striking ‘‘and’’ be prescribed in accordance with all applica- of the system’’— after the semicolon; ble legal requirements and shall be issued in (A) means the compromise of the security, (B) in paragraph (4), by striking the period final form not later than 365 days after the confidentiality, or integrity of computerized at the end and inserting ‘‘; and’’; and date of enactment of this subsection. data that results in, or there is a reasonable (C) by adding at the end the following: ‘‘(2) NECESSARY REGULATIONS.—The regu- basis to conclude has resulted in, the unau- ‘‘(5) if the financial institution outsources latory agencies shall prescribe regulations— thorized acquisition of and access to pro- nonpublic personal information outside the ‘‘(A) requiring that a contract between a tected health information maintained by the United States— financial institution and such institution’s covered entity, foreign-based business asso- ‘‘(A) information informing the consumer foreign-based business contain a provision ciate, or subcontractor; and in simple language— that provides such institution with the right (B) does not include good faith acquisition ‘‘(i) that the financial institution to audit such business, as needed, to monitor of protected health information by an em- outsources nonpublic personal information performance under the contract; and ployee or agent of the covered entity, for- to foreign-based businesses; ‘‘(B) requiring that foreign-based busi- eign-based business associate, or subcon- ‘‘(ii) of any risks and consequences to the nesses and subcontractors of financial insti- tractor for the purposes of the entity, asso- privacy and security of an individual’s non- tutions be contractually bound by Federal ciate, or subcontractor, if the protected public personal information that arise as a privacy standards and security safeguards.’’. health information is not used or subject to result of the processing of such information (d) BREACH OF SECURITY.—Section 502 of further unauthorized disclosure. outside the United States; and the Gramm-Leach-Bliley Act (15 U.S.C. 6802) (2) DATABASE SECURITY.— ‘‘(iii) of the additional measures the finan- is amended by adding at the end the fol- (A) COVERED ENTITY.—A covered entity— cial institution is taking to protect the non- lowing: (i) that owns or licenses electronic data public personal information outsourced for ‘‘(f) BREACH OF SECURITY.— containing protected health information processing outside the United States; and ‘‘(1) BREACH OF SECURITY OF THE SYSTEM.— shall, following the discovery of a breach of ‘‘(B) a certification that the financial in- In this subsection, the term ‘breach of secu- security of the system containing such data, stitution has taken reasonable steps to en- rity of the system’— notify the Secretary of such breach; or sure that the handling of nonpublic personal ‘‘(A) means the compromise of the secu- (ii) that receives a notification under sub- information will be done in compliance with rity, confidentiality, or integrity of comput- paragraph (B) of a breach, shall notify the applicable laws in all instances where non- erized data that results in, or there is a rea- Secretary of such breach. public personal information is processed out- sonable basis to conclude has resulted in, the (B) OTHER PARTIES.— side the United States, including the reasons unauthorized acquisition of and access to (i) THIRD PARTY.—The Secretary shall refor the certification.’’. nonpublic personal information maintained quire that a contract between a covered enti- (2) EFFECTIVE DATE.—A financial institu- by the financial institution, foreign-based ty and such entity’s foreign-based business tion shall include in such institution’s dis- business, or subcontractor; and associate contain a provision that if the for- closure the information and certification de- ‘‘(B) does not include good faith acquisi- eign-based business associate (or any subcon- scribed in the amendment made by para- tion of nonpublic personal information by an tractor of such associate) owns or licenses graph (1)(C) for disclosures provided on or employee or agent of the financial institu- electronic data containing protected health after the date on which the regulatory agen- tion, foreign-based business, or subcon- information that was provided to the asso- cy that has jurisdiction over such institution tractor for the purposes of the institution, ciate through the covered entity, the asso- pursuant to section 505 of the Gramm-Leach- business, or subcontractor, if the nonpublic ciate (or subcontractor) shall, following the Bliley Act (15 U.S.C. 6805) prescribes regula- personal information is not used or subject discovery of a breach of security of the sys- tions pursuant to the amendments made by to further unauthorized disclosure. tem containing such data— this section or the date that is 365 days after ‘‘(2) DATABASE SECURITY.— (I) notify the entity from which it received the date of enactment of this Act, whichever ‘‘(A) FINANCIAL INSTITUTION.—A financial the protected health information of such date is earlier. Nothing in this subsection, or institution— breach; and the amendments made by this subsection, ‘‘(i) that owns or licenses electronic data (II) provide a description to the entity shall be construed to require a financial in- containing nonpublic personal information from which it received the protected health stitution to reissue disclosures provided be- shall, following the discovery of a breach of information of any corrective actions taken fore the date on which the regulatory agency security of the system containing such data, to guard against future security breaches. that has jurisdiction over such institution notify the entity under which the institution (ii) NOTIFICATION PROCESS.—Each entity pursuant to section 505 of the Gramm-Leach- is subject to jurisdiction under section 505 of that receives a notification under clause (i) Bliley Act (15 U.S.C. 6805) prescribes regula- such breach; or shall notify the entity from which it re- tions pursuant to the amendments made by ‘‘(ii) that receives a notification under sub- ceived the protected health information of this section or the date that is 365 days after paragraph (B) of a breach, shall notify the such breach until the notification reaches the date of enactment of this Act, whichever entity under which the institution is subject the foreign-based business associate who date is earlier, to include in such disclosures to jurisdiction under section 505 of such shall, in turn, notify the covered entity of the information and certification described breach. such breach. in the amendment made by paragraph (1)(C). ‘‘(B) OTHER PARTIES.— (C) TIMELINESS OF NOTIFICATION.—All noti- (c) RULEMAKING.—Section 504 of the ‘‘(i) IN GENERAL.—The Federal banking fications required under subparagraphs (A) Gramm-Leach-Bliley Act (15 U.S.C. 6804) is agencies, the National Credit Union Admin- and (B) shall be made as expediently as pos- amended by adding at the end the following: istration, the Secretary of the Treasury, the sible and without unreasonable delay fol- ‘‘(c) RULEMAKING ON FOREIGN OUTSOURC- Securities and Exchange Commission, and lowing— ING.— the Federal Trade Commission shall require, (i) the discovery of a breach of security of ‘‘(1) IN GENERAL.— with respect to the financial institutions the system; and ‘‘(A) REGULATORY AUTHORITY.—The Federal subject to their jurisdiction under section (ii) any measures necessary to determine banking agencies, the National Credit Union 505, that a contract between a financial in- the scope of the breach, prevent further dis- Administration, the Secretary of the Treas- stitution and such institution’s foreign- closures, and restore the reasonable integ- ury, the Securities and Exchange Commis- based business contain a provision that if the rity of the data system. sion, and the Federal Trade Commission (re- foreign-based business (or any subcontractor

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00116 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6009 of such business) owns or licenses electronic will help safeguard Americans’ most risk to national security. We are pain- data containing nonpublic personal informa- important and sensitive personal infor- fully aware that some people want to tion that was provided to the business mation when it is sent abroad for proc- steal the identity of individual Ameri- through the financial institution, the busi- essing to countries that may have lax cans in order to evade our homeland ness (or subcontractor) shall, following the discovery of a breach of security of the sys- security and privacy standards. defenses and harm us all. tem containing such data— The bill will ensure that American International information outsourc- ‘‘(I) notify the entity from which it re- companies notify consumers of a ing has skyrocketed in recent years. ceived the nonpublic personal information of business’s outsourcing practices. It will Consider the following: such breach; and require American companies to certify Tax returns for about 200,000 Ameri- ‘‘(II) provide a description to the entity the adequacy of their outsourcing pro- cans were prepared in India this year. from which it received the nonpublic per- tections. And it will require American To put this number in context, India sonal information of any corrective actions companies to hold their foreign busi- workers processed only about 1,000 U.S. taken to guard against future security tax returns 2 years ago. Tax returns breaches. ness partners accountable for pro- ‘‘(ii) NOTIFICATION PROCESS.—Each entity tecting Americans’ data. have Americans’ names, Social Secu- that receives a notification under clause (i) In order to protect the information of rity numbers, income, employers, ad- shall notify the entity from which it re- Americans that is now vulnerable dresses, and other details. ceived the nonpublic personal information of abroad, this bill calls for the following The American Association of Medical such breach until the notification reaches key safeguards: Transcription estimates that 10 per- the foreign-based business who shall, in turn, First, the bill requires American cent of all medical transcription of notify the financial institution of such health and financial companies to no- doctors’ notes is being done abroad. breach. tify consumers when sending their in- An executive from Trans Union, one ‘‘(C) TIMELINESS OF NOTIFICATION.—All notifications required under subparagraphs (A) formation abroad, and to certify the of the major credit agencies in the and (B) shall be made as expediently as pos- safety of the overseas processing. We United States, told The San Francisco sible and without unreasonable delay fol- drafted provisions carefully to mini- Chronicle that: lowing— mize the burden on businesses, so they A hundred percent of our mail regarding ‘‘(i) the discovery of a breach of security of will expand on privacy disclosures that customer disputes is going to go to India at the system; and companies already make under Federal some point. ‘‘(ii) any measures necessary to determine law. If anyone doubts the risk that inter- the scope of the breach, prevent further dis- Second, American companies proc- national outsourcing poses to Ameri- closures, and restore the reasonable integrity of the data system. essing health or financial data must in- cans, consider these incidents: ‘‘(3) EFFECTIVE DATE.—This subsection clude clauses in contracts with their Recently, a low-paid transcriber in shall take effect on the expiration of the foreign partners to allow audits of Pakistan was working as a subcon- date that is 365 days after the date of enact- their foreign information processors tractor to the University of California ment of this subsection.’’. and to enforce American privacy stand- Medical Center in San Francisco. That SEC. 4. FOREIGN CALL CENTERS. ards. foreign worker threatened to post con- (a) FOREIGN CALL CENTER DEFINED.—In this Third, the bill creates a system to in- fidential patient information on the section, the term ‘‘foreign call center’’ form American companies and Federal Internet unless the university coaxed means a foreign-based service provider or a regulators of any security breaches in- her boss into paying some of her bills. foreign-based subcontractor of such provider that— volving American health or financial Three weeks later, a strikingly simi- (1) is unaffiliated with the entity that uti- information at facilities operated out- lar incident occurred with a worker in lizes such provider or subcontractor; and side the United States. Bangalore, India. (2) provides customer-based service and And fourth, the bill gives Americans In another incident, in Noida, India, sales or technical assistance and expertise to the right to have workers at foreign an employee working at a call center individuals located in the United States via call centers disclose where they are used an American’s credit card infor- the telephone, the Internet, or other tele- calling from. mation to buy electronics equipment communications and information tech- The bill also gives Federal agencies from Sony. nology. Also in India, there is a burgeoning (b) REQUIREMENT.—A contract between a the power to enforce these provisions. foreign call center and an entity that uti- It is important to emphasize that this black market in personal identity in- lizes such foreign call center to initiate tele- bill is drafted to minimize the burdens formation. According to one report, phone calls to, or receive telephone calls on businesses, by expanding on existing stolen names, addresses, phone num- from, individuals shall include a requirement privacy data and security laws. bers, the bank a person has an account that each employee of the foreign call center While many are concerned about how with, and even bank account numbers disclose the physical location of such em- outsourcing abroad hurts American are sold on the streets for mere pen- ployee upon the request of such individual. (c) CERTIFICATION REQUIREMENT.—An enti- workers, outsourcing also poses risks nies. ty described in subsection (b) shall submit an to the security and privacy of Amer- These are just a few incidents. No annual certification to the Federal Trade ican consumers’ personal data. The re- one knows how many other times Commission on whether or not the entity cent wave of international outsourcing workers have done similar things. And and its subsidiaries, and the foreign call cen- means that we are flooding the entire that is a big part of the problem. It is ter employees and its subsidiaries, have com- world with our most sensitive informa- not merely that Americans’ identities plied with subsection (b). Such annual cer- tion. are vulnerable when sent abroad. The tifications shall be made available to the Once sent abroad, the information is problem is that American companies public. (d) NONCOMPLIANCE.—An entity described at risk because our Federal laws do not obscure how much outsourcing they do, in subsection (b) or its subsidiaries that vio- apply to foreign companies operating and when they are doing it. lates subsection (b) shall be subject to such overseas. Another reason is because For example, according to the San civil penalties as the Federal Trade Commis- many foreign countries have far weak- Jose Mercury News, a worker at a call sion prescribes under subsection (e). er security laws than our own. For in- center dealing with State benefits re- (e) REGULATIONS.—Not later than 365 days stance, India still has no laws to pro- fused to identify his location. The su- after the date of enactment of this Act, the Federal Trade Commission shall prescribe tect personal and private data. And pervisor, when she picked up the call, such regulations as are necessary for effec- still another reason is because it is ex- refused to say anything more than that tive monitoring and compliance with this tremely difficult for Americans to use she worked for Citicorp. section. Such regulations shall include ap- foreign courts to sue foreign companies In essence, the problem of obscurity propriate civil penalties for noncompliance that misuse American data. is so bad that we can list only a few in- with this section. These factors leave the most inti- cidents reported by the media. How Mrs. FEINSTEIN. Mr. President, I mate details of the lives of uncount- many security breaches have taken rise to introduce, along with my col- able Americans vulnerable to lax secu- place? Have consumers been informed league, Senator BILL NELSON, the In- rity and to malicious identity thieves. when their information is abroad and creasing Notice of Foreign Outsourcing And there is even more at stake. In- at risk? How much money has this cost Act, or the INFO Act. This legislation formation outsourcing poses a direct consumers? We don’t know.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00117 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6010 CONGRESSIONAL RECORD — SENATE May 20, 2004 And so far, American regulatory SUBMITTED RESOLUTIONS Whereas in seeking world peace by ensur- agencies have been unable to say de- ing equality for all, Millie spent a lifetime working on labor, civil rights, education, spite their oversight of these indus- SENATE RESOLUTION 366—SUP- health care, youth employment, and recre- tries. And American companies have PORTING MAY 2004 AS NATIONAL ation issues; stayed mum. We need to break the si- BETTER HEARING AND SPEECH Whereas Millie brought inspiration and lence. humor to the many people she touched and MONTH AND COMMENDING did so with optimism and undaunted spirit; The fact is, our Government is sim- THOSE STATES THAT HAVE IM- Whereas Millie, a woman of influence and ply not doing enough to protect con- PLEMENTED ROUTINE HEARING of great moral character, was always a voice sumers. Earlier this month I received a SCREENINGS FOR EVERY NEW- of conscience and reason; BORN BEFORE THE NEWBORN Whereas Millie provided a voice for those letter from John D. Hawke, Jr., who is LEAVES THE HOSPITAL that could not be heard and hope for those the U.S. Comptroller of the Currency. that no longer believed, and because of this He heads one of the agencies that regu- Mr. COLEMAN submitted the fol- her legacy will continue to live on for gen- lowing resolution; which was consid- lates U.S. financial institutions and erations to come; ered and agreed to: Whereas Millie’s list of accomplishments banks. S. RES. 366 and awards is long but what she is most re- Mr. Hawke wrote to me that the Of- Whereas the National Institute on Deaf- membered for is her zest for organizing, in- fice of the Comptroller of the Cur- ness and Other Communication Disorders re- cluding mentoring legions of women and men in the labor, civil rights, women’s rights, and rency, known as the OCC, does not di- ports that approximately 28,000,000 people in the United States experience hearing loss or peace movements; rectly regulate foreign contractors have a hearing impairment; Whereas President Clinton stated that that work for U.S. banks. Specifically, Whereas 1 out of every 3 people in the ‘‘her impact will be felt for generations, and he wrote: United States over the age of 65 have hearing her example never forgotten’’; loss; Whereas Millie was born in Alton, Iowa on [T]he OCC focuses its supervisory reviews Whereas the overwhelming majority of December 29, 1910, and was the oldest of 7 regarding foreign servicing relationships on people in the United States with hearing loss children; whether the serviced banks have adequate would benefit from the use of a hearing aid Whereas in 1932 Millie graduated from the procedures in place. . . . and fewer than 7,000,000 people in the United University of Minnesota with a bachelor’s States use a hearing aid; degree in psychology and in 1934 Millie re- That means the OCC is focusing on Whereas 30 percent of people in the United ceived a master’s degree in social economy the American companies, not the for- States suffering from hearing loss cite finan- and social research from Bryn Mawr College; Whereas Millie became an organizer for the eign ones. cial constraints as an impediment to hearing aid use; Amalgamated Clothing Workers of America I also learned from the OCC that it Whereas hearing loss is among the most in Philadelphia, Pennsylvania, and later be- already suggests certain safeguards for common congenital birth defects; came Educational Director of the Pennsyl- vania Joint Board of Shirt Workers; American banks to use when they hire Whereas a delay in diagnosing the hearing loss of a newborn can affect the social, emo- Whereas in 1936, Millie married fellow foreign information processors. The tional, and academic development of the Amalgamated Clothing Workers of America OCC asks U.S. banks to use contract child; organizer Homer Newman Jeffrey, and they provisions to make sure that foreign Whereas the average age at which traveled throughout the South and East organizing textile workers; companies use secure methods to proc- newborns with hearing loss are diagnosed is between the ages of 12 to 25 months; and Whereas during World War II, the Jeffreys ess data, and to let the U.S. companies Whereas May 2004 is National Better Hear- worked in Washington, D.C., as consultants audit the foreign companies. ing and Speech Month, providing Federal, to the War Labor Board, where they became close friends with Walter, Victor, and Roy But the OCC only suggests that com- State, and local governments, members of the private and nonprofit sectors, hearing Reuther; panies adopt these safeguards. The leg- and speech professionals, and all people in Whereas the Jeffreys moved to Detroit, islation we are introducing today the United States an opportunity to focus on Michigan in 1944 when Victor Reuther of- would take safeguards like the OCC’s a preventing, mitigating, and treating hearing fered Millie a job as director of the newly formed UAW Women’s Bureau; step further, and make them manda- impairments: Now, therefore, be it Resolved, That the Senate— Whereas Millie’s commitment to equal tory. (1) supports the goals and ideals of May rights fueled her career at the UAW; Now is the time to act. We know that 2004 as National Better Hearing and Speech Whereas Millie organized the first UAW women’s conference in response to the mas- there are criminal syndicates, such as Month; (2) commends those States that have im- sive postwar layoffs of women production in Nigeria, that have fraudulently ob- plemented routine hearing screenings for workers, who were replaced by returning vet- tained bank information to steal un- every newborn before the newborn leaves the erans; told fortunes. We can hardly imagine hospital; and Whereas from 1949 until 1954, Millie ran the UAW’s radio station; the damage such organizations can do (3) encourages all people in the United States to have their hearing checked regu- Whereas Millie moved on to direct the with a vast new source of sensitive fi- larly. Community Relations Department of the nancial data from international infor- UAW; mation outsourcing. SENATE RESOLUTION 367—HON- Whereas Millie served as Director of the ORING THE LIFE OF MILDRED Consumer Affairs Department of the UAW In short, this bill accomplishes four from 1968 until her retirement in 1976; goals crucial to protecting Americans’ MCWILLIAMS ‘‘MILLIE’’ JEFFREY Whereas Millie joined the NAACP in the sensitive data sent abroad. It requires (1910–2004) AND HER CONTRIBU- 1940s and marched in the South with Dr. TIONS TO HER COMMUNITY AND companies to give notice that they Martin Luther King, Jr. in the 1960s; TO THE UNITED STATES Whereas Former Executive Secretary of send consumers’ sensitive data abroad. Ms. STABENOW (for herself and Mr. the Detroit Branch of the NAACP, Arthur It ensures that U.S. companies can Johnson, said that ‘‘in the civil rights move- LEVIN) submitted the following resolu- audit their foreign partners, and im- tion; which was considered and agreed ment, she knew how to fight without being pose U.S. privacy standards on them. It disagreeable’’; to: Whereas Millie ran for public office in 1974 establishes a system to ensure that for- S. RES. 367 and was elected by the people of Michigan to eign and U.S. companies will report se- Whereas Mildred McWilliams ‘‘Millie’’ Jef- the Wayne State University Board of Gov- curity breaches to the U.S. Govern- frey, a social justice activist, a retired UAW ernors, an office she held for 16 years (1974– ment. And it allows American con- Director of the Consumer Affairs Depart- 1990); sumers to demand to know where for- ment, and a Governor Emerita of Wayne Whereas Millie served 3 terms as chair of State University, died peacefully surrounded the Wayne State University Board of Gov- eign call centers are located. by her family on March 24, 2004, in the Metro ernors; This bill helps to protect outsourced Detroit, Michigan area at the age of 93; Whereas Millie loved Wayne State Univer- information while minimizing burdens Whereas in 2000, President Clinton awarded sity and was a long-time resident on campus; Millie the Medal of Freedom, the highest ci- Whereas Millie never tired of showing vision American businesses. I urge my col- vilian award bestowed by the United States tors around her ‘‘neighborhood’’—the leagues to join us in this effort. Government; Adamany Undergraduate Library, the

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00118 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6011 Hilberry Theatre, and the Walter P. Reuther bill S. 2400, supra; which was ordered to lie (B) increasing heart rate; Library of Wayne State University; on the table. (C) constricting blood vessels; or Whereas Millie thrived in the academic en- SA 3235. Mr. BROWNBACK submitted an (D) causing the body to release adrenaline. vironment enriched by Wayne State Univer- amendment intended to be proposed by him sity students; to the bill S. 2400, supra; which was ordered SA 3226. Mr. CRAPO proposed an Whereas whether discussing mathematics to lie on the table. amendment to amendment SA 3170 pro- with teenagers in Wayne State University’s SA 3236. Mr. TALENT submitted an amend- posed by Mr. GRAHAM of South Caro- Math Corps or strategizing at the United Na- ment intended to be proposed by him to the lina to the bill S. 2400, to authorize ap- tions Conferences on Women about the bill S. 2400, supra; which was ordered to lie propriations for fiscal year 2005 for plight of sweatshop workers, Millie’s capac- on the table. military activities of the Department ity for connecting with people was un- SA 3237. Mr. CAMPBELL submitted an matched; amendment intended to be proposed by him of Defense, for military construction, Whereas Millie was inducted into the to the bill S. 2400, supra; which was ordered and for defense activities of the De- Michigan Women’s Hall of Fame and was an to lie on the table. partment of Energy, to prescribe per- original member of the board of the Michi- SA 3238. Mr. GRAHAM, of South Carolina sonnel strengths for such fiscal year gan Women’s Foundation; submitted an amendment intended to be pro- for the Armed Services, and for other Whereas Millie served in various leadership posed by him to the bill S. 2400, supra; which purposes; as follows: roles in a wide variety of national and State was ordered to lie on the table. Strike all after the first word of the mat- organizations; f ter proposed to be inserted and insert the fol- Whereas Millie served on the peer review lowing: board of Blue Cross; TEXT OF AMENDMENTS 3119. TREATMENT OF WASTE MATERIAL. Whereas Millie also was an active member Mr. DURBIN submitted an (a) AVAILABILITY OF FUNDS FOR TREAT- of the First Unitarian Universalist Church in SA 3225. amendment intended to be proposed by MENT.—Of the amount authorized to be ap- Detroit; and propriated by section 3102(a)(1) for environ- Whereas the United States mourns the him to the bill S. 2400, to authorize appropriations for fiscal year 2005 for mental management for defense site accel- death of Mildred McWilliams ‘‘Millie’’ Jef- eration completion, $350,000,000 shall be frey: Now, therefore be it military activities of the Department available for the following purposes at the Resolved, That the Senate— of Defense, for military construction, sites referred to in subsection (b): (1) honors the life of Mildred McWilliams and for defense activities of the De- (1) The safe management of tanks or tank ‘‘Millie’’ Jeffrey and her contributions to her partment of Energy, to prescribe per- farms used to store waste from reprocessing community and to the United States; and sonnel strengths for such fiscal year activities. (2) directs the Secretary of the Senate to for the Armed Services, and for other (2) The on-site treatment and storage of transmit an enrolled copy of this resolution wastes from reprocessing activities and re- to the family of Millie Jeffrey. purposes; which was ordered to lie on the table, as follows: lated waste. f (3) The consolidation of tank waste. On page 147, after line 21, insert the fol- AMENDMENTS SUBMITTED AND (4) The emptying and cleaning of storage lowing: tanks. PROPOSED SEC. 717. REPORTING OF SERIOUS ADVERSE (5) Actions under section 3116. SA 3225. Mr. DURBIN submitted an amend- HEALTH EXPERIENCES. (b) SITES.—The sites referred to in this ment intended to be proposed by him to the (a) IN GENERAL.—The Secretary of Defense subsection are as follows: bill S. 2400, to authorize appropriations for may not permit a dietary supplement con- (1) The Idaho National Engineering and fiscal year 2005 for military activities of the taining a stimulant to be sold on a military Environmental Laboratory, Idaho. Department of Defense, for military con- installation unless the manufacturer of such (2) The Savannah River Site, Aiken, South struction, and for defense activities of the dietary supplement submits any report of a Carolina. Department of Energy, to prescribe per- serious adverse health experience associated (3) The Hanford Site, Richland, Wash- sonnel strengths for such fiscal year for the with such dietary supplement to the Sec- ington. Armed Services, and for other purposes; retary of Health and Human Services, who (c) This section shall become effective 1 which was ordered to lie on the table. shall make such reports available to the Sur- day after enactment. SA 3226. Mr. CRAPO proposed an amend- geon Generals of the Armed Forces. ment to amendment SA 3170 proposed by Mr. (b) EFFECT OF SECTION.—Notwithstanding SA 3227. Mr. GRAHAM of South GRAHAM of South Carolina to the bill S. section 201(ff)(2) of the Federal Food, Drug, Carolina submitted an amendment in- 2400, supra. and Cosmetic Act (21 U.S.C. 321(ff)(2)) and tended to be proposed by him to the SA 3227. Mr. GRAHAM, of South Carolina paragraph (3) of subsection (c), this section bill S. 2400, to authorize appropriations submitted an amendment intended to be pro- does not apply to a dietary supplement con- for fiscal year 2005 for military activi- posed by him to the bill S. 2400, supra; which taining caffeine that is intended to be con- ties of the Department of Defense, for sumed in liquid form. was ordered to lie on the table. military construction, and for defense SA 3228. Mr. GRAHAM, of South Carolina (c) DEFINITIONS.—In this section— submitted an amendment intended to be pro- (1) The term ‘‘dietary supplement’’ has the activities of the Department of Energy, posed by him to the bill S. 2400, supra; which same meaning given the term in section to prescribe personnel strengths for was ordered to lie on the table. 201(ff) of the Federal Food, Drug, and Cos- such fiscal year for the Armed Serv- SA 3229. Mr. McCAIN submitted an amend- metic Act (21 U.S.C. 321(ff)). ices, and for other purposes; which was ment intended to be proposed by him to the (2) The term ‘‘serious adverse health expe- ordered to lie on the table, as follows: bill S. 2400, supra; which was ordered to lie rience’’ means an adverse event that is asso- On page 280, after line 22, insert the fol- on the table. ciated with the use of a dietary supplement lowing: SA 3230. Ms. COLLINS submitted an in a human, without regard to whether the SEC. 1068. RECEIPT OF PAY BY RESERVES FROM amendment intended to be proposed by her event is known to be causally related to the CIVILIAN EMPLOYERS WHILE ON AC- to the bill S. 2400, supra; which was ordered dietary supplement, that— TIVE DUTY IN CONNECTION WITH A to lie on the table. (A) results in— CONTINGENCY OPERATION. SA 3231. Mr. GRAHAM, of Florida (for him- (i) death; Section 209 of title 18, United States Code, self and Mr. NELSON, of Florida) submitted (ii) a life-threatening condition; is amended by adding at the end the fol- an amendment intended to be proposed by (iii) inpatient hospitalization or prolonga- lowing new subsection: him to the bill S. 2400, supra; which was or- tion of hospitalization; ‘‘(h) This section does not prohibit a mem- dered to lie on the table. (iv) a persistent or significant disability or ber of the reserve components of the armed SA 3232. Mr. BROWNBACK submitted an incapacity; or forces on active duty pursuant to a call or amendment intended to be proposed by him (v) a congenital anomaly, birth defect, or order to active duty under a provision of law to the bill S. 2400, supra; which was ordered other effect regarding pregnancy, including referred to in section 101(a)(13) of title 10 to lie on the table. premature labor or low birth weight; or from receiving from any person that em- SA 3233. Mr. LOTT (for himself and Mr. (B) requires medical or surgical interven- ployed such member before the call or order GRAHAM, of South Carolina) submitted an tion to prevent 1 of the outcomes described to active duty any payment of any part of amendment intended to be proposed by him in clauses (i) through (v) in subparagraph the salary or wages that such person would to the bill S. 2400, supra; which was ordered (A). have paid the member if the member’s em- to lie on the table. (3) The term ‘‘stimulant’’ means a dietary ployment had not been interrupted by such SA 3234. Mr. NELSON, of Florida (for him- ingredient that has a stimulant effect on the call or order to active duty.’’. self, Mrs. DOLE, Mr. CORZINE, Mr. NELSON, of cardiovascular system or the central nervous Nebraska, Mr. LEAHY, Mrs. MURRAY, and Mr. system of a human by any means, includ- SA 3228. Mr. GRAHAM of South GRAHAM, of Florida) submitted an amending— Carolina submitted an amendment in- ment intended to be proposed by him to the (A) speeding metabolism; tended to be proposed by him to the

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00119 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6012 CONGRESSIONAL RECORD — SENATE May 20, 2004 bill S. 2400, to authorize appropriations propriations for fiscal year 2005 for Federal Acquisition Regulatory Council, for fiscal year 2005 for military activi- military activities of the Department shall issue final rules to establish the proce- ties of the Department of Defense, for of Defense, for military construction, dures and methods for use by the Depart- military construction, and for defense and for defense activities of the De- ment of Defense to select, monitor, and terminate energy savings performance con- activities of the Department of Energy, partment of Energy, to prescribe per- tracts in accordance with laws governing to prescribe personnel strengths for sonnel strengths for such fiscal year Federal procurement that will achieve the such fiscal year for the Armed Serv- for the Armed Services, and for other intent of this section in a cost-effective man- ices, and for other purposes; which was purposes; which was ordered to lie on ner. In developing such procedures and meth- ordered to lie on the table, as follows: the table; as follows: ods, the Secretary, with the concurrence of At the end of subtitle B of title II, add the At the end of subtitle B of title III, add the the Federal Acquisition Regulatory Council, following: following: shall determine which existing regulations are inconsistent with the intent of this sec- SEC. 217. INFRASTRUCTURE SYSTEM SECURITY SEC. 313. ENERGY SAVINGS PERFORMANCE CON- ENGINEERING DEVELOPMENT FOR TRACTS. tion and shall formulate substitute regula- THE NAVY. (a) CONTRACTS AUTHORIZED.—The Sec- tions consistent with laws governing Federal (a) INCREASE IN AMOUNT FOR RESEARCH, DE- retary of Defense may enter into an energy procurement. VELOPMENT, TEST, AND EVALUATION, NAVY.— savings performance contract under this sec- (e) IMPLEMENTATION PROCEDURES AND The amount authorized to be appropriated tion for the sole purpose of achieving energy METHODS.—The procedures and methods es- by section 201(2) for research, development, savings and benefits ancillary to that pur- tablished by rule under subsection (d) shall— test, and evaluation, Navy, is hereby in- pose. The Secretary may incur obligations (1) provide for the calculation of energy creased by $3,000,000. under the contract to finance energy con- savings based on sound engineering and fi- (b) AVAILABILITY OF AMOUNT FOR INFRA- servation measures so long as guaranteed nancial practices; STRUCTURE SYSTEM SECURITY ENGINEERING savings exceed the debt service require- (2) allow the Secretary to request state- DEVELOPMENT.—Of the amount authorized to ments. ments of qualifications, which shall, at a be appropriated by section 201(2) for re- (b) TERMS AND CONDITIONS.— minimum, include prior experience and capa- search, development, test, and evaluation, (1) CONTRACT PERIOD.—Notwithstanding bilities of contractors to perform the pro- Navy, as increased by subsection (a), any other provision of law, an energy savings posed types of energy savings services and fi- $3,000,000 shall be available for infrastructure performance contract may be for a period of nancial and performance information from system security engineering development. up to 25 years beginning on the date on firms engaged in providing energy savings (c) OFFSET.—(1) The amount authorized to which the first payment is made by the Sec- services; be appropriated by section 101(5) for other retary pursuant to the contract. The con- (3) allow the Secretary to presume that a procurement, Army, is hereby reduced by tract need not include funding of cancella- contractor meets the requirements of para- $1,000,000, with the amount of the reduction tion charges (if any) before cancellation, if— graph (2) if the contractor either— to be allocated to Buffalo Landmine Vehi- (A) the contract was awarded in a competi- (A) has carried out contracts with a value cles. tive manner, using procedures and methods of at least $1,000,000,000 with the Federal (2) The amount authorized to be appro- established under this section; Government over the previous 10 years; or priated by section 102(b) for procurement for (B) the Secretary determines that funds (B) is listed by a Federal agency pursuant the Marine Corps is hereby reduced by are available and adequate for payment of to section 801(b)(2) of the National Energy $500,000, with the amount of the reduction to the costs of the contract for the first fiscal Policy Act (42 U.S.C. 8287(b)(2)); be allocated to Combat Casualty Care. year; (4) allow the Secretary to, from the state- (3) The amount authorized to be appro- (C) the contract is governed by part 17.1 of ments received, designate and prepare a list, priated by section 201(1) for research, devel- the Federal Acquisition Regulation; and with an update at least annually, of those opment, test, and evaluation, Army, is here- (D) if the contract contains a clause set- firms that are qualified to provide energy by reduced by $1,000,000, with the amount of ting forth a cancellation ceiling in excess savings services; the reduction to the allocated to Active $10,000,000, the Secretary provides notice to (5) allow the Secretary to select firms from Coating Technology. Congress of the proposed contract and the such list to conduct discussions concerning a (4) The amount authorized to be appro- proposed cancellation ceiling at least 30 days particular proposed energy savings project, priated by section 201(4) for research, devel- before the award of the contract. including requesting a technical and price opment, test, and evaluation, Defense-wide (2) COSTS AND SAVINGS.—An energy savings proposal from such selected firms for such activities, is hereby reduced by $500,000, with performance contract shall require the con- project; the amount of the reduction to be allocated tractor to incur the costs of implementing (6) allow the Secretary to select from such to Radiation Hard Complimentary Metal energy savings measures, including at least firms the most qualified firm to provide en- Oxide Semi-Conductors. the cost (if any) incurred in making energy ergy savings services based on technical and audits, acquiring and installing equipment, price proposals and any other relevant infor- SA 3229. Mr. MCCAIN submitted an and training personnel, in exchange for a mation; amendment intended to be proposed by share of any energy savings directly result- (7) allow the Secretary to permit receipt of him to the bill S. 2400, to authorize ap- ing from implementation of such measures unsolicited proposals for energy savings per- propriations for fiscal year 2005 for during the term of the contract. formance contracting services from a firm military activities of the Department (3) OTHER TERMS AND CONDITIONS.—An en- that the Department of Defense has deter- of Defense, for military construction, ergy savings performance contract shall re- mined is qualified to provide such services and for defense activities of the De- quire an annual energy audit and specify the under the procedures established pursuant to partment of Energy, to prescribe per- terms and conditions of any Government subsection (d) and require facility managers to place a notice in the Commerce Business sonnel strengths for such fiscal year payments and performance guarantees. Any such performance guarantee shall provide Daily announcing they have received such a for the Armed Services, and for other that either the Government or the con- proposal and invite other similarly qualified purposes; which was ordered to lie on tractor is responsible for maintenance and firms to submit competing proposals; the table; as follows: repair services for any energy related equip- (8) allow the Secretary to enter into an en- On page 60, after line 23, insert the fol- ment, including computer software systems. ergy savings performance contract with a lowing: (c) LIMITATION ON ANNUAL CONTRACT PAY- firm qualified under paragraph (7), con- SEC. 403. EXCLUSION OF SERVICE ACADEMY PER- MENTS.—Aggregate annual payments by the sistent with the procedures and methods es- MANENT AND CAREER PROFESSORS Secretary to a contractor for energy, oper- tablished pursuant to subsection (d); and FROM A LIMITATION ON CERTAIN ations, and maintenance under an energy (9) allow a firm not designated as qualified OFFICER GRADE STRENGTHS. savings performance contract may not ex- to provide energy savings services under Section 523(b) of title 10, United States ceed the amount that the Department of De- paragraph (4) to request a review of such de- Code, is amended by adding at the end the fense would have paid for energy, operations, cision to be conducted in accordance with following new paragraph: and maintenance in the absence of the con- procedures, substantially equivalent to pro- ‘‘(8) Up to 50 permanent professors of each tract (as estimated through the procedures cedures established under section 759(f) of of the United States Military Academy and developed pursuant to this section) during title 40, United States Code, to be developed the United States Air Force Academy, and term of the contract. The contract shall pro- by the board of contract appeals of the Gen- up to 50 professors of the United States vide for a guarantee of savings to the De- eral Services Administration. Naval Academy who are career military pro- partment, and shall establish payment (f) TRANSITION RULE FOR CERTAIN ENERGY fessors (as defined in regulations prescribed schedules reflecting such guarantee, taking SAVINGS PERFORMANCE CONTRACTS.—In the by the Secretary of the Navy).’’. into account any capital costs under the con- case of any energy savings performance contract. tract entered into by the Secretary, or the SA 3230. Ms. COLLINS submitted an (d) RULEMAKING.—Not later than 90 days Secretary of Energy, before October 1, 2003, amendment intended to be proposed by after the date of the enactment of this Act, for services to be provided at Department of her to the bill S. 2400, to authorize ap- the Secretary, with the concurrence of the Defense facilities, the Secretary may issue

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00120 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6013 additional task orders pursuant to such con- equipment, secondary savings may include soldiers enlisted in the Armed Forces during tract and may make whatever contract the benefits of increased efficiency in the the era of segregation, when these brave sol- modifications the parties to such contract production of electricity, including revenue diers fought valiantly to ensure freedom and agree are necessary to conform to the provi- received by the Federal Government from democracy for Americans that they were sions of this section. the sale of electricity so produced. not, in many instances, able to enjoy. (g) PILOT PROGRAM FOR NONBUILDING AP- (5) SECRETARY.—The term ‘‘Secretary’’ (4) In September 1945, Secretary of War PLICATIONS.— means the Secretary of Defense. Robert P. Patterson appointed a board of 3 (1) IN GENERAL.—The Secretary may carry general officers, which became known as the out a pilot program to enter into up to 10 en- SA 3231. Mr. GRAHAM of Florida (for Gillem Board, to investigate the policy of ergy savings performance contracts for the himself and Mr. NELSON of Florida) the United States Army with respect to Afri- purpose of achieving energy savings, sec- submitted an amendment intended to can Americans and to prepare a new policy ondary savings, and benefits incidental to be proposed by him to the bill S. 2400, that would provide for the efficient use of Af- those purposes, in nonbuilding applications. to authorize appropriations for fiscal rican Americans in the Army. (2) SELECTION.—The Secretary shall select (5) The April 1946 Gillem Board report, ti- the contract projects to demonstrate the ap- year 2005 for military activities of the tled ‘‘Utilization of Negro Manpower in the plicability and benefits of energy savings Department of Defense, for military Postwar Army Policy,’’ concluded that the performance contracting to a range of non- construction, and for defense activities future policy of the Army should be to building applications. of the Department of Energy, to pre- ‘‘eliminate, at the earliest practicable mo- (3) REPORT.—Not later than three years scribe personnel strengths for such fis- ment, any special consideration based on after the date of the enactment of this Act, cal year for the Armed Services, and race.’’ the Secretary shall submit to Congress a refor other purposes; which was ordered (6) On October 29, 1947, the President’s port on the progress and results of the pilot Committee on Civil Rights issued a land- program. The report shall include a descrip- to lie on the table, as follows: mark report titled ‘‘To Secure These tion of projects undertaken; the energy and At end of subtitle B of title III, add the fol- Rights’’, which condemned segregation, in cost savings, secondary savings and other lowing: particular segregation in the Armed Forces. benefits that resulted from such projects; SEC. 313. ROTARY WING NIGHT VISION GOGGLE The report recommended legislation and ad- and recommendations on whether the pilot TRAINING. ministrative action ‘‘to end immediately all program should be extended, expanded, or (a) INCREASE IN AMOUNTS FOR PROCURE- discrimination and segregation based on authorized. MENT, NAVY.—(1) The amount authorized to race, color, creed or national origin in... all (h) DEFINITIONS.—In this section: be appropriated by section 102(a)(1) for air- branches of the Armed Services.’’ (1) ENERGY SAVINGS.—The term ‘‘energy craft procurement, Navy, is hereby increased (7) On July 26, 1948, President Truman savings’’ means a reduction in the cost of en- by $3,850,000. signed Executive Order 9981, which stated ergy, from a base cost established through a (2) The amount authorized to be appro- that ‘‘there shall be equality of treatment methodology set forth in the energy savings priated by section 102(a)(4) for other procure- and opportunity for all persons in the armed performance contract, utilized in an existing ment, Navy, is hereby increased by $150,000. services without regard to race, color, reli- federally owned building or buildings or (b) AVAILABILITY OF AMOUNTS FOR ROTARY gion, or national origin.’’ The order also es- other federally owned facilities as a result WING NIGHT VISION GOGGLE TRAINING.—(1) Of tablished the President’s Committee on of— the amount authorized to be appropriated by Equality of Treatment and Opportunity in (A) the lease or purchase of operating section 102(a)(1) for aircraft procurement, the Armed Services, which included two Af- equipment, improvements, altered operation Navy, as increased by subsection (a)(1), rican American members among its initial and maintenance, increased capacity or pay- $3,850,000 shall be available for the develop- members. load, or technical services; or ment of rotary wing night vision goggle (8) On April 1, 1949, Secretary of Defense (B) the increased efficient use of existing (NVG) training. Louis Johnson issued a directive to the Sec- energy sources by cogeneration or heat re- (2) Of the amount authorized to be appro- retaries of the Army, Navy, and Air Force covery, excluding any cogeneration process priated by section 102(a)(4) for other procure- that stated that it was the policy of the De- for other than a federally owned building or ment, Navy, as increased by subsection partment of Defense that there should be buildings or other federally owned facilities. (a)(2), $150,000 shall be available for the de- equality of treatment and opportunity for all (2) ENERGY SAVINGS PERFORMANCE CON- velopment of rotary wing night vision goggle in the armed services, and that ‘‘qualified TRACT.—The term ‘‘energy savings perform- training. Negro personnel shall be assigned to fill any ance contract’’ means a contract that pro- (c) OFFSET.—Of the amount authorized to type of position... without regard to race.’’ vides for the performance of services for the be appropriated by section 201(4) for re- (9) On May 11, 1949, Secretary of Defense design, acquisition, installation, testing, op- search, development, test, and evaluation, Louis Johnson approved the integration eration, and, where appropriate, mainte- Defense-wide activities, the amount avail- plans of the Air Force, but rejected those of nance and repair of an identified energy con- able in Program Element PE 0305199D8Z for the Army and the Navy. servation measure or series of measures at horizontal fusion is hereby reduced by (10) On June 7, 1949, Secretary of Defense one or more locations. Such contracts— $4,000,000. Louis Johnson accepted a revised Navy inte- (A) may provide for appropriate software Mr. BROWNBACK submitted gration plan. licensing agreements; and SA 3232. (11) On March 13, 1950, the Army agreed to (B) shall, with respect to an agency facility an amendment intended to be proposed abolish its 10 percent recruitment quota for that is a public building, as defined in sec- by him to the bill S. 2400, to authorize African Americans. tion 13(l) of the Public Buildings Act of 1959 appropriations for fiscal year 2005 for (12) On March 18, 1951, The Department of (40 U.S.C. 612(l)), be in compliance with the military activities of the Department Defense announced that all basic training prospectus requirements and procedures of of Defense, for military construction, within the United States had been inte- section 7 of the Public Buildings Account- and for defense activities of the De- grated. ability Act of 1959 (40 U.S.C. 606). partment of Energy, to prescribe per- (13) In October 1953, the Army announced (3) NONBUILDING APPLICATION.—The term sonnel strengths for such fiscal year that 95 percent of African American soldiers ‘‘nonbuilding application’’ means— in the Army were serving in integrated (A) any class of vehicles, devices, or equip- for the Armed Services, and for other units. ment that is transportable under its own purposes; which was ordered to lie on (b) SENSE OF CONGRESS.—It is the sense of power by land, sea, or air that consumes en- the table, as follows: Congress— ergy from any fuel source for the purpose of On page 280, after line 22, insert the fol- (1) to apologize for the racial segregation such transportability, or to maintain a con- lowing: that was enforced by the United States Gov- trolled environment within such vehicle, de- SEC. 1068. SENSE OF CONGRESS ON CONTRIBU- ernment upon African American soldiers who vice, or equipment; or TIONS OF AFRICAN AMERICANS TO defended the United States prior to the de- (B) any Federally owned equipment used to THE ARMED FORCES. segregation of the Armed Forces; generate electricity or transport water. (a) FINDINGS.—Congress makes the fol- (2) that the United States has been richly (4) SECONDARY SAVINGS.—The term ‘‘sec- lowing findings: blessed by the contributions and sacrifices of ondary savings’’ means additional energy or (1) From the inception of our Nation, many African Americans; cost savings that are a direct consequence of African Americans have given their lives in (3) that the African Americans who served the energy savings that result from the en- service to this country in order that Ameri- in the Armed Forces of the United States ergy efficiency improvements that were fi- cans could enjoy freedom and prosperity. were heroes who were willing to see beyond nanced and implemented pursuant to the en- (2) Nowhere is this sacrifice more apparent their own oppression and envision a future ergy savings performance contract. Such sec- than in the history of the Armed Forces of society that would be fully inclusive of all ondary savings may include energy and cost the United States, and in the current fight citizens, regardless of their race; and savings that result from a reduction in the against the threat of terrorism within the (4) because of the sacrifices of these heroes, need for fuel delivery and logistical support, United States and abroad. our Nation has prospered and grown into a personnel cost savings and environmental (3) It is important to recognize the extraor- symbol of freedom emulated by countries benefits. In the case of electric generation dinary contributions of African American around the world.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00121 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6014 CONGRESSIONAL RECORD — SENATE May 20, 2004

(c) CLAIMS NOT AUTHORIZED.—This section SEC. 313. FAMILY READINESS PROGRAM OF THE SEC. 653. ACCEPTANCE OF FREQUENT TRAVELER shall not be construed to authorize any NATIONAL GUARD. MILES, CREDITS, AND TICKETS TO FACILITATE THE AIR OR SURFACE claim against the United States and shall (a) AMOUNT FOR PROGRAM.—The amount not be construed as a settlement of any TRAVEL OF CERTAIN MEMBERS OF authorized to be appropriated by section THE ARMED FORCES AND THEIR claim against the United States. 301(1) for operation and maintenance for the FAMILIES. SA 3233. Mr. LOTT (for himself and Army is hereby increased by $10,000,000 for Section 2608 of title 10, United States Code, the Family Readiness Program of the Na- is amended— Mr. GRAHAM of South Carolina) sub- tional Guard. (1) by redesignating subsections (g) mitted an amendment intended to be through (k) as subsections (h) through (l), re- (b) OFFSET.—The amount authorized to be proposed by him to the bill S. 2400, to spectively; and authorize appropriations for fiscal year appropriated by section 301(1) for operation and maintenance for the Army is hereby re- (2) by inserting after subsection (f) the fol- 2005 for military activities of the De- lowing new subsection: duced by $10,000,000 due to excessive unobli- ‘‘(g) OPERATION HERO MILES.—(1) The Sec- partment of Defense, for military con- gated balances. struction, and for defense activities of retary of Defense may use the authority of the Department of Energy, to prescribe subsection (a) to accept the donation of fre- personnel strengths for such fiscal year SA 3235. Mr. BROWNBACK submitted quent traveler miles, credits, and tickets for an amendment intended to be proposed air or surface transportation issued by any for the Armed Services, and for other air carrier or surface carrier that serves the purposes; which was ordered to lie on by him to the bill S. 2400, to authorize public and that consents to such donation, the table, as follows: appropriations for fiscal year 2005 for and under such terms and conditions as the On page 35, between lines 6 and 7, insert military activities of the Department air or surface carrier may specify. The Sec- the following: of Defense, for military construction, retary shall designate a single office in the SEC. 232. SENSE OF THE SENATE REGARDING and for defense activities of the De- Department of Defense to carry out this sub- FUNDING OF THE ADVANCED SHIP- partment of Energy, to prescribe per- section, including the establishment of such BUILDING ENTERPRISE UNDER THE sonnel strengths for such fiscal year rules and procedures as may be necessary to NATIONAL SHIPBUILDING RE- facilitate the acceptance of such frequent SEARCH PROGRAM OF THE NAVY. for the Armed Services, and for other traveler miles, credits, and tickets. (a) FINDINGS.—Congress makes the fol- purposes; which was ordered to lie on ‘‘(2) Frequent traveler miles, credits, and lowing findings: the table, as follows: tickets accepted under this subsection shall (1) The budget for fiscal year 2005, as sub- be used only in accordance with the rules es- mitted to Congress by the President, pro- On page 280, after line 22, insert the fol- tablished by the air carrier or surface carrier vides $10,300,000 for the Advanced Ship- lowing: that is the source of the miles, credits, or building Enterprise under the National Ship- tickets and shall be used only for the fol- building Research Program of the Navy. SEC. ll. BROADCAST DECENCY ENFORCEMENT ACT OF 2004. lowing purposes: (2) The Advanced Shipbuilding Enterprise ‘‘(A) To facilitate the travel of a member is an innovative program to encourage great- (a) SHORT TITLE.—This section may be of the armed forces who— er efficiency in the national technology and cited as the ‘‘Broadcast Decency Enforce- ‘‘(i) is deployed on active duty outside the industrial base. ment Act of 2004’’. United States away from the permanent (3) The leaders of the United States ship- (b) INCREASE IN PENALTIES FOR OBSCENE, duty station of the member in support of a building industry have embraced the Ad- INDECENT, AND PROFANE BROADCASTS.—Sec- contingency operation; and vanced Shipbuilding Enterprise as a method tion 503(b)(2) of the Communications Act of ‘‘(ii) is granted, during such deployment, for exploring and collaborating on innova- 1934 (47 U.S.C. 503(b)(2)) is amended— rest and recuperative leave, emergency tion in shipbuilding and ship repair that col- (1) by redesignating subparagraphs (C) and leave, convalescent leave, or another form of lectively benefits all components of the in- (D) as subparagraphs (D) and (E), respec- leave authorized for the member. dustry. tively; ‘‘(B) In the case of a member of the armed (b) SENSE OF THE SENATE.—It is the sense (2) by inserting after subparagraph (B) the of the Senate— forces recuperating from an injury or illness following new subparagraph: (1) that the Senate— incurred or aggravated in the line of duty ‘‘(C) Notwithstanding subparagraph (A), if (A) strongly supports the innovative Ad- during such deployment, to facilitate the the violator is— vanced Shipbuilding Enterprise under the travel of family members of the member to ‘‘(i)(I) a broadcast station licensee or per- National Shipbuilding Research Program as be reunited with the member. mittee; or an enterprise between the Navy and industry ‘‘(3) For the use of miles, credits, or tickets ‘‘(II) an applicant for any broadcast li- that has yielded new processes and tech- under paragraph (2)(B) by family members of cense, permit, certificate, or other instru- niques that reduce the cost of building and a member of the armed forces, the Secretary ment or authorization issued by the Commis- repairing ships in the United States; and may, as the Secretary determines appro- sion; and (B) is concerned that the future-years de- priate, limit— ‘‘(ii) determined by the Commission under fense program of the Department of Defense ‘‘(A) eligibility to family members who, by paragraph (1) to have broadcast obscene, in- that was submitted to Congress for fiscal reason of affinity, degree of consanguinity, decent, or profane language, the amount of year 2005 does not reflect any funding for the or otherwise, are sufficiently close in rela- any forfeiture penalty determined under this Advanced Shipbuilding Enterprise after fis- tionship to the member of the armed forces subsection shall not exceed $275,000 for each cal year 2005; and to justify the travel assistance; violation or each day of a continuing viola- (2) that the Secretary of Defense should ‘‘(B) the number of family members who tion, except that the amount assessed for continue to provide in the future-years de- may travel; and any continuing violation shall not exceed a fense program for funding the Advanced ‘‘(C) the number of trips that family mem- total of $3,000,000 for any single act or failure Shipbuilding Enterprise at a sustaining level bers may take. to act.’’; and in order to support additional research to ‘‘(4) Notwithstanding paragraph (2), the (3) in subparagraph (D), as redesignated by further reduce the cost of designing, build- Secretary of Defense may, in an exceptional paragraph (1), by striking ‘‘subparagraph (A) ing, and repairing ships. case, authorize a person not described in sub- or (B)’’ and inserting ‘‘subparagraph (A), (B), paragraph (B) of that paragraph to use fre- SA 3234. Mr. NELSON of Florida (for or (C)’’. quent traveler miles, credits, or a ticket ac- himself, Mrs. DOLE, Mr. CORZINE, Mr. cepted under this subsection to visit a member of the armed forces described in such NELSON of Nebraska, Mr. LEAHY, Mrs. SA 3236. Mr. TALENT submitted an subparagraph if that person has a notably MURRAY, and Mr. GRAHAM of Florida) amendment intended to be proposed by close relationship with the member. The fre- submitted an amendment intended to him to the bill S. 2400, to authorize ap- quent traveler miles, credits, or ticket may be proposed by him to the bill S. 2400, propriations for fiscal year 2005 for be used by such person only in accordance to authorize appropriations for fiscal military activities of the Department with such conditions and restrictions as the year 2005 for military activities of the of Defense, for military construction, Secretary determines appropriate and the Department of Defense, for military rules established by the air carrier or surface and for defense activities of the De- carrier that is the source of the miles, cred- construction, and for defense activities partment of Energy, to prescribe per- of the Department of Energy, to pre- its, or ticket. sonnel strengths for such fiscal year scribe personnel strengths for such fis- ‘‘(5) The Secretary of Defense shall encour- for the Armed Services, and for other age air carriers and surface carriers to par- cal year for the Armed Services, and purposes; which was ordered to lie on ticipate in, and to facilitate through mini- for other purposes; which was ordered the table, as follows: mization of restrictions and otherwise, the to lie on the table, as follows: donation, acceptance, and use of frequent At the end of subtitle B of title III, add the On page 131, between lines 17 and 18, insert traveler miles, credits, and tickets under following: the following: this section.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00122 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6015 ‘‘(6) The Secretary of Defense may enter shall establish procedures to provide for the advice and consent of the Senate, from offi- into an agreement with a nonprofit organiza- implementation of section 3757 of title 10, cers of the Army who have the qualifications tion to use the services of the organization— United States Code, as added by subsection prescribed in subsection (b) for the Judge Ad- ‘‘(A) to promote the donation of frequent (a), with respect to service in the Republic of vocate General. The term of office of the As- traveler miles, credits, and tickets under Korea during the period between July 28, sistant Judge Advocate General is four paragraph (1), except that amounts appro- 1953, and the date of the enactment of this years, but may be sooner terminated or ex- priated to the Department of Defense may Act. Such procedures shall include a require- tended by the President. An officer ap- not be expended for this purpose; and ment for submission of an application for pointed as Assistant Judge Advocate General ‘‘(B) to assist in administering the collec- award of a badge under that section with re- who holds a lower regular grade shall be ap- tion, distribution, and use of donated fre- spect to service before the date of the enact- pointed in the regular grade of major gen- quent traveler miles, credits, and tickets. ment of this Act and the furnishing of such eral. ‘‘(7) Members of the armed forces, family information as the Secretary may specify. ‘‘(2) When there is a vacancy in the office members, and other persons who receive air of the Judge Advocate General, or during the or surface transportation using frequent SA 3238. Mr. GRAHAM of South absence or disability of the Judge Advocate traveler miles, credits, or tickets donated Carolina submitted an amendment in- General, the Assistant Judge Advocate Gen- under this subsection are deemed to recog- eral shall perform the duties of the Judge tended to be proposed by him to the Advocate General until a successor is ap- nize no income from such use. Donors of fre- bill S. 2400, to authorize appropriations quent traveler miles, credits, or tickets pointed or the absence or disability ceases. under this subsection are deemed to obtain for fiscal year 2005 for military activi- ‘‘(3) When paragraph (2) cannot be com- no tax benefit from such donation. ties of the Department of Defense, for plied with because of the absence or dis- ‘‘(8) In this subsection, the term ‘family military construction, and for defense ability of the Assistant Judge Advocate Gen- member’ has the meaning given that term in activities of the Department of Energy, eral, the heads of the major divisions of the section 411h(b)(1) of title 37.’’. to prescribe personnel strengths for Office of the Judge Advocate General, in the order directed by the Secretary of the Army, such fiscal year for the Armed Serv- SA 3237. Mr. CAMPBELL submitted shall perform the duties of the Judge Advo- an amendment intended to be proposed ices, and for other purposes; which was cate General, unless otherwise directed by by him to the bill S. 2400, to authorize ordered to lie on the table; as follows: the President. ‘‘(e) APPOINTMENTS RECOMMENDED BY SE- appropriations for fiscal year 2005 for On page 221, between the matter following line 17 and line 18, insert the following: LECTION BOARDS.—Under regulations pre- military activities of the Department scribed by the Secretary of Defense, the Sec- SEC. 915. AUTHORITIES OF THE JUDGE ADVO- of Defense, for military construction, CATES GENERAL. retary of the Army, in selecting an officer for recommendation to the President under and for defense activities of the De- (a) DEPARTMENT OF THE ARMY.—(1) Section partment of Energy, to prescribe per- 3019(b) of title 10, United States Code, is subsection (a) for appointment as the Judge sonnel strengths for such fiscal year amended by striking ‘‘The General Counsel’’ Advocate General or under subsection (d) for for the Armed Services, and for other and inserting ‘‘Subject to sections 806 and appointment as the Assistant Judge Advo- 3037 of this title, the General Counsel’’. cate General, shall ensure that the officer se- purposes; which was ordered to lie on lected is recommended by a board of officers the table; as follows: (2)(A) Section 3037 of such title is amended to read as follows: that, insofar as practicable, is subject to the On page 86, between lines 9 and 10, insert procedures applicable to selection boards the following: ‘‘§ 3037. Judge Advocate General, Assistant convened under chapter 36 of this title.’’. SEC. 543. REQUIREMENTS FOR AWARD OF COM- Judge Advocate General: appointment; du- (B) The item relating to such section in BAT INFANTRYMAN BADGE AND ties the table of sections at the beginning of COMBAT MEDICAL BADGE WITH RE- ‘‘(a) POSITION OF JUDGE ADVOCATE GEN- chapter 305 of such title is amended to read SPECT TO SERVICE IN KOREA AFTER ERAL.—There is a Judge Advocate General in as follows: JULY 28, 1953. the Army, who is appointed by the Presi- (a) STANDARDIZATION OF REQUIREMENTS ‘‘3037. Judge Advocate General, Assistant dent, by and with the advice and consent of WITH OTHER GEOGRAPHIC AREAS.—(1) Chapter Judge Advocate General: ap- the Senate, from officers of the Judge Advo- 357 of title 10, United States Code, is amend- pointment; duties.’’. cate General’s Corps. The term of office is ed by adding at the end the following new (b) DEPARTMENT OF THE NAVY.—(1) Section four years, but may be sooner terminated or section: 5019(b) of title 10, United States Code, is extended by the President. The Judge Advo- amended by striking ‘‘The General Counsel’’ ‘‘§ 3757. Korea defense service: Combat Infan- cate General, while so serving, has the grade tryman Badge; Combat Medical Badge and inserting ‘‘Subject to sections 806 and of lieutenant general. 5148 of this title, the General Counsel’’. ‘‘The Secretary of the Army shall provide ‘‘(b) APPOINTMENT.—The Judge Advocate (2) Section 5148 of such title is amended— that, with respect to service in the Republic General of the Army shall be appointed from (A) in subsection (b), by striking the fourth of Korea after July 28, 1953, eligibility of a those officers who at the time of appoint- sentence and inserting the following: ‘‘The member of the Army for the Combat Infan- ment are members of the bar of a Federal Judge Advocate General, while so serving, tryman Badge or the Combat Medical Badge court or the highest court of a State or Ter- has the grade of vice admiral or lieutenant shall be met under criteria and eligibility re- ritory, and who have had at least eight years general, as appropriate.’’; and quirements that, as nearly as practicable, of experience in legal duties as commis- (B) in subsection (d)— are identical to those applicable, at the time sioned officers. (i) by redesignating paragraphs (2), (3), and of such service in the Republic of Korea, to ‘‘(c) DUTIES.—The Judge Advocate General, (4) as paragraphs (3), (4), and (5), respec- service elsewhere without regard to specific in addition to other duties prescribed by tively; and location or special circumstances. In par- law— (ii) by inserting after paragraph (1) the fol- ticular, such eligibility shall be estab- ‘‘(1) is the legal adviser of the Secretary of lowing new paragraph (2): lished— the Army, the Chief of Staff of the Army, ‘‘(2) direct and supervise the members of ‘‘(1) without any requirement for service and the Army Staff, and of all officers and the Judge Advocate General’s Corps in the by the member in an area designated as a agencies of the Department of the Army; performance of their duties;’’. ‘hostile fire area’ (or by any similar designa- ‘‘(2) shall direct and supervise the members (c) DEPARTMENT OF THE AIR FORCE.—(1) tion) or that the member have been author- of the Judge Advocate General’s Corps and Section 8019(b) of title 10, United States ized hostile fire pay; civilian attorneys employed by the Depart- Code, is amended by striking ‘‘The General ‘‘(2) without any requirement for a min- ment of the Army (other than those assigned Counsel’’ and inserting ‘‘Subject to sections imum number of instances (in excess of one) or detailed to the Office of the General Coun- 806 and 8037 of this title, the General Coun- in which the member was engaged with the sel of the Army) in the performance of their sel’’. enemy in active ground combat involving an duties; (2) Section 8037 of such title is amended— exchange of small arms fire; and ‘‘(3) shall direct and supervise the perform- (A) in subsection (a), by striking the third ‘‘(3) without any requirement for personal ance of duties under chapter 47 of this title sentence and inserting the following: ‘‘The recommendation or approval by commanders (the Uniform Code of Military Justice) by Judge Advocate General, while so serving, in the member’s chain of command other any member of the Army; has the grade of lieutenant general.’’; and than is generally applicable for service at lo- ‘‘(4) shall receive, revise, and have recorded (B) in subsection (c)— cations outside the Republic of Korea.’’. the proceedings of courts of inquiry and mili- (i) by striking ‘‘General shall,’’ in the mat- (2) The table of sections at the beginning of tary commissions; and ter preceding paragraph (1) and inserting such chapter is amended by adding at the ‘‘(5) shall perform such other legal duties ‘‘General,’’; end the following new item: as may be directed by the Secretary of the (ii) by redesignating paragraphs (1) and (2) ‘‘3757. Korea defense service: Combat Infan- Army. as paragraphs (4) and (5), respectively, and, tryman Badge; Combat Medical ‘‘(d) POSITION OF ASSISTANT JUDGE ADVO- in each such paragraph, by inserting ‘‘shall’’ Badge.’’. CATE GENERAL.—(1) There is an Assistant before the first word; and (b) APPLICABILITY TO SERVICE BEFORE DATE Judge Advocate General in the Army, who is (iii) by inserting after paragraph (1) the OF ENACTMENT.—The Secretary of the Army appointed by the President, by and with the following new paragraphs:

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00123 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6016 CONGRESSIONAL RECORD — SENATE May 20, 2004 ‘‘(1) is the legal adviser of the Secretary of The PRESIDING OFFICER. Without Iovino, to be Assistant Secretary of the Air Force, the Chief of Staff of the Air objection, it is so ordered. Veterans Affairs for Congressional Af- Force, and the Air Staff, and of all officers COMMITTEE ON THE JUDICIARY fairs. and agencies of the Department of the Air The meeting will take place in S–216 Force; Mr. ALLARD. Mr. President, I ask ‘‘(2) shall direct and supervise the members unanimous consent that the Com- in the Capitol, immediately following of the Air Force designated as judge advo- mittee on the Judiciary be authorized the first roll call vote of the Senate cates and civilian attorneys employed by the to meet to conduct a markup on Thurs- after 12 p.m. Department of the Air Force (other than day, May 20, 2004, at 10:30 a.m. in Dirk- The PRESIDING OFFICER. Without those assigned or detailed to the Office of the sen Senate Building, room 226. objection, it is so ordered. General Counsel of the Air Force) in the per- SELECT COMMITTEE ON INTELLIGENCE formance of their duties; I. Nominations Mr. ALLARD. Mr. President, I ask ‘‘(3) shall direct and supervise the perform- Henry W. Saad to be U.S. Circuit ance of duties under chapter 47 of this title unanimous consent that the Select (the Uniform Code of Military Justice) by Judge for the Sixth Circuit; Jonathan Committee on Intelligence be author- any member of the Air Force;’’. W. Dudas to be Under Secretary of ized to meet during the session of the Commerce for Intellectual Property f Senate on May 20, 2004 at 2:30 p.m. to and Director of the United states Pat- hold a closed Business Meeting. AUTHORITY FOR COMMITTEES TO ent and Trademark Office The PRESIDING OFFICER. Without MEET II. Legislation objection, it is so ordered. COMMITTEE ON BANKING HOUSING AND URBAN SUBCOMMITTEE ON CLEAN AIR, CLIMATE AFFAIRS S. 1735, Gang Prevention and Effec- CHANGE, AND NUCLEAR SAFETY tive Deterrence Act of 2003 [Hatch, Mr. ALLARD. Mr. President, I ask Mr. ALLARD. Mr. President. I ask unanimous consent that the Com- Feinstein, Grassley, Graham, Cham- bliss, Cornyn, Schumer, Biden]; unanimous consent that the sub- mittee on Banking, Housing, and committee on Clean Air, Climate Urban Affairs be authorized to meet S. 1933, Enhancing Federal Obscenity Reporting and Copyright Enforcement Change, and Nuclear Safety be author- during the session of the Senate on ized to meet on Thursday, May 20th at Thursday, May 20, 2004, at 10 a.m. to (ENFORCE) Act of 2003 [Hatch, Fein- stein, Cornyn]; 10:30 a.m. rather than 9:30 a.m. to con- conduct a hearing on ‘‘Oversight of the duct an oversight hearing on the Nu- Extended Custodial Inventory Pro- S. 1635, A bill to amend the Immigra- tion and Nationality Act to ensure the clear Regulatory Commission. gram.’’ The meeting will be held in SD–406. The PRESIDING OFFICER. Without integrity of the L–1 visa for The PRESIDING OFFICER. Without objection, it is so ordered. intracompany transferees [Chambliss]; objection, it is so ordered. COMMITTEE ON COMMERCE, SCIENCE, AND S. 1129, Unaccompanied Alien Child TRANSPORTATION Protection Act of 2003 [Feinstein, SUBCOMMITTEE ON NATIONAL PARKS Mr. ALLARD. Mr. President, I ask DeWine, Feingold, Kennedy, Leahy, Mr. ALLARD. Mr. President, I ask unanimous consent that the Com- Specter, Edwards, Durbin, Kohl, Schu- unanimous consent that the Sub- mittee on Commerce, Science, and mer]; committee on National Parks of the Transportation be authorized to meet S. 2013, Satellite Home Viewer Exten- Committee on Energy and Natural Re- on Thursday, May 20, 2004, at 10:15 a.m. sion Act of 2004 [Hatch, Leahy, DeWine, sources be authorized to meet during on spam. Kohl]; the session of the Senate on Thursday, The PRESIDING OFFICER. Without S. Res. 362, a resolution expressing May 20 at 2:30 p.m. objection, it is so ordered. the sense of the Senate on the dedica- The purpose of the hearing is to re- COMMITTEE ON FINANCE tion of the National World War II Me- ceive testimony on the following bills: Mr. ALLARD. Mr. President, I ask morial on May 29, 2004, in recognition S. 1672, to expand the Timucuan Eco- unanimous consent that the Com- of the duty, sacrifices, and valor of the logical and Historic Preserve, Florida; mittee on Finance be authorized to members of the Armed Forces of the S. 1789 and H.R. 1616, to authorize the meet in open Executive Session during United States who served in World War exchange of certain lands within the the session on May 20, 2004; to consider II. [Graham (FL), Biden, Chambliss, Martin Luther King, Junior, National favorably reporting the nominations of Durbin, Feingold, Grassley, Hatch, Cor- Historic Site for lands owned by the John O. Colvin, to be Judge, U.S. Tax nyn, DeWine, Edwards, Graham, (SC)] city of Atlanta, GA. and for other pur- Court, renomination for a second term; The PRESIDING OFFICER. Without poses; S. 1808, to provide for the preser- Stuart A. Levey, to be Under Secretary objection, it is so ordered. vation and restoration of historic of the Treasury for Enforcement and COMMITTEE ON THE JUDICIARY buildings at historically women’s pub- Juan C. Zarate, to be Assistant Sec- Mr. ALLARD. Mr. President, I ask lic colleges or universities; S. 2167, to retary of the Treasury, Terrorist Fi- unanimous consent that the Com- establish the Lewis and Clark National nancing and Financial Crimes. mittee on the Judiciary be authorized Historical Park in the states of Wash- The PRESIDING OFFICER. Without to meet to conduct a hearing on Thurs- ington and Oregon, and for other pur- objection, it is so ordered. day, May 20, 2004 on ‘‘FBI Oversight: poses; and S. 2173, to further the pur- COMMITTEE ON HEALTH, EDUCATION, LABOR, Terrorism and Other Topics’’ in the poses of the Sand Creek Massacre Na- AND PENSIONS Dirksen Senate Office Building, room tional Historic Site Establishment Act Mr. ALLARD. Mr. President, I ask 226 immediately following the full com- of 2000. unanimous consent that the Com- mittee markup scheduled for 10:30 a.m. The PRESIDING OFFICER. Without mittee on Health, Education, Labor, in Dirksen Senate Office Building, objection, it is so ordered. and Pensions be authorized to meet for room 226. f a hearing entitled ‘‘Prescription Drug Reimportation’’ during the session of Witness List ALBUQUERQUE BIOLOGICAL PARK the Senate on Thursday, May 20, 2004, Panel I: Robert S. Mueller III, Direc- TITLE CLARIFICATION ACT at 10:00 a.m. in SD–430. tor, Federal Bureau of Investigation, On Wednesday, May 19, 2004, the Sen- The PRESIDING OFFICER. Without Department of Justice, Washington, ate passed S. 213, as follows: DC. objection, it is so ordered. S. 213 COMMITTEE ON INDIAN AFFAIRS The PRESIDING OFFICER. Without objection, it is so ordered. Be it enacted by the Senate and House of Rep- Mr. ALLARD. Mr. President, I ask resentatives of the United States of America in unanimous consent that the Com- COMMITTEE ON VETERANS’ AFFAIRS Congress assembled, mittee on Indian Affairs be authorized Mr. ALLARD. Mr. President, I ask SECTION 1. SHORT TITLE. to meet on Thursday, May 20, 2004, at unanimous consent that the Com- This Act may be cited as the ‘‘Albuquerque 10:00 a.m. in Room 485 of the Russell mittee on Veterans’ Affairs be author- Biological Park Title Clarification Act’’. Senate Office Building to conduct a ized to meet during the session of the SEC. 2. PURPOSE. hearing on S. 2382, the Native Amer- Senate on Thursday, May 20, 2004, to The purpose of this Act is to direct the ican Connectivity Act. markup the nomination of Pamela M. Secretary of the Interior to issue a quitclaim

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00124 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6017 deed conveying any right, title, and interest S. 960 (4) the direct and indirect cost and benefit the United States may have in and to Be it enacted by the Senate and House of Rep- to the government; Tingley Beach or San Gabriel Park to the resentatives of the United States of America in (5) public policy or management objectives City, thereby removing the cloud on the Congress assembled, served; City’s title to these lands. SECTION 1. SHORT TITLE. (6) economic and administrative feasibility SEC. 3. DEFINITIONS. This Act may be cited as the ‘‘Hawaii of fee collection; and In this Act: Water Resources Act of 2004’’. (7) other factors or criteria determined by the Secretary. (1) CITY.—The term ‘‘City’’ means the City SEC. 2. HAWAII RECLAMATION PROJECTS. (b) NUMBER OF FEES.—The Secretary shall of Albuquerque, New Mexico. (a) IN GENERAL.—The Reclamation Waste- establish the minimum number of fees and (2) MIDDLE RIO GRANDE CONSERVANCY DIS- water and Groundwater Study and Facilities shall avoid the collection of multiple or lay- TRICT.—The terms ‘‘Middle Rio Grande Con- Act (43 U.S.C. 390h et seq.) is amended by ered fees for a wide variety of uses, activities servancy District’’ and ‘‘MRGCD’’ mean a adding at the end the following: political subdivision of the State of New or programs. ‘‘SEC. 1637. HAWAII RECLAMATION PROJECTS. Mexico, created in 1925 to provide and main- (c) ANALYSIS.—The results of the analysis ‘‘(a) AUTHORIZATION.—The Secretary may— tain flood protection and drainage, and together with the Secretary’s determination ‘‘(1) in cooperation with the Board of maintenance of ditches, canals, and distribu- of appropriate fee levels shall be transmitted Water Supply, City and County of Honolulu, tion systems for irrigation and water deliv- to the Congress at least three months prior Hawaii, participate in the design, planning, ery and operations in the Middle Rio Grande to publication of such fees in the Federal and construction of a project in Kalaeloa, Valley. Register. New fees and any increases or de- Hawaii, to desalinate and distribute sea- (3) MIDDLE RIO GRANDE PROJECT.—The term creases in established fees shall be published water for direct potable use within the serv- ‘‘Middle Rio Grande Project’’ means the in the Federal Register and no new fee or ice area of the Board; works associated with water deliveries and change in the amount of fees shall take place ‘‘(2) in cooperation with the County of Ha- operations in the Rio Grande basin as au- until at least 12 months after the date the waii Department of Environmental Manage- thorized by the Flood Control Act of 1948 notice is published in the Federal Register. ment, Hawaii, participate in the design, (Public Law 80–858; 62 Stat. 1175) and the (d) ADDITIONAL AUTHORITIES.—Beginning planning, and construction of facilities in Flood Control Act of 1950 (Public Law 81–516; on January 1, 2006, the Secretary may enter Kealakehe, Hawaii, for the treatment and 64 Stat. 170). into agreements, including contracts to pro- distribution of recycled water and for envi- (4) SAN GABRIEL PARK.—The term ‘‘San Ga- vide reasonable commissions or reimburse- ronmental purposes within the County; and briel Park’’ means the tract of land con- ments with any public or private entity for ‘‘(3) in cooperation with the County of taining 40.2236 acres, more or less, situated visitor reservation services, fee collection Maui Wastewater Reclamation Division, Ha- within Section 12 and Section 13, T10N, R2E, and/or processing services. waii, participate in the design, planning, and N.M.P.M., City of Albuquerque, Bernalillo (e) ADMINISTRATION.—The Secretary may construction of, and acquire land for, facili- County, New Mexico, and described by New provide discounted or free admission days or ties in Lahaina, Hawaii, for the distribution Mexico State Plane Grid Bearings (Central use, may modify the National Park Passport, of recycled water from the Lahaina Waste- Zone) and ground distances in a Special War- established pursuant to Public Law 105–391, water Reclamation Facility for non-potable ranty Deed conveying the property from and shall provide information to the public uses within the County. MRGCD to the City, dated November 25, 1997. about the various fee programs and the costs ‘‘(b) COST SHARE.—The Federal share of the (5) TINGLEY BEACH.—The term ‘‘Tingley and benefits of each program. cost of a project described in subsection (a) Beach’’ means the tract of land containing (f) STATE AGENCY ADMISSION AND SPECIAL shall not exceed 25 percent of the total cost 25.2005 acres, more or less, situated within USE PASSES.—Effective January 1, 2006, and of the project. Section 13 and Section 24, T10N, R2E, notwithstanding the Federal Grants Cooper- ‘‘(c) LIMITATION.—Funds provided by the ative Agreements Act, the Secretary may N.M.P.M., City of Albuquerque, Bernalillo Secretary shall not be used for the operation County, New Mexico, and described by New enter into revenue sharing agreements with and maintenance of a project described in State agencies to accept their annual passes Mexico State Plane Grid Bearings (Central subsection (a). Zone) and ground distances in a Special War- and convey the same privileges, terms and ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— conditions as offered under the auspices of ranty Deed conveying the property from There are authorized to be appropriated such MRGCD to the City, dated November 25, 1997. the National Park Passport, to State agency sums as are necessary to carry out this sec- annual passes and shall only be accepted for SEC. 4. CLARIFICATION OF PROPERTY INTEREST. tion.’’. all of the units of the National Park System (a) REQUIRED ACTION.—The Secretary of (b) CONFORMING AMENDMENT.—The table of within the boundaries of the State in which the Interior shall issue a quitclaim deed con- sections in section 2 of the Reclamation the specific revenue sharing agreement is en- veying any right, title, and interest the Projects Authorization and Adjustment Act tered into except where the Secretary has es- United States may have in and to Tingley of 1992 (43 U.S.C. prec. 371) is amended by in- tablished a fee that includes a unit or units Beach and San Gabriel Park to the City. serting after the item relating to section 1636 located in more than one State. (b) TIMING.—The Secretary shall carry out the following: SEC. 3. DISTRIBUTION OF RECEIPTS. the action in subsection (a) as soon as prac- ‘‘Sec. 1637. Hawaii reclamation projects.’’. ticable after the date of enactment of this Without further appropriation, all receipts title and in accordance with all applicable f collected pursuant to the Act or from sales law. RECREATIONAL FEE AUTHORITY of the National Park Passport shall be retained by the Secretary and may be ex- (c) NO ADDITIONAL PAYMENT.—The City ACT OF 2004 shall not be required to pay any additional pended as follows: costs to the United States for the value of On Wednesday, May 19, 2004, the Sen- (1) 80 percent of amounts collected at a San Gabriel Park and Tingley Beach. ate passed S. 1107, as follows: specific area, site, or project as determined by the Secretary, shall remain available for SEC. 5. OTHER RIGHTS, TITLE, AND INTERESTS S. 1107 UNAFFECTED. use at the specific area, site or project, ex- Be it enacted by the Senate and House of Rep- cept for those units of the National Park (a) IN GENERAL.—Except as expressly pro- resentatives of the United States of America in System that participate in an active revenue vided in section 4, nothing in this Act shall Congress assembled, be construed to affect any right, title, or in- sharing agreement with a State under Sec- SECTION 1. SHORT TITLE. tion 2(f) of this Act, not less than 90 percent terest in and to any land associated with the This Act may be cited as the ‘‘Recreational Middle Rio Grande Project. of amounts collected at a specific area, site, Fee Authority Act of 2004’’. or project shall remain available for use. (b) ONGOING LITIGATION.—Nothing contained in this Act shall be construed or uti- SEC. 2. RECREATION FEE AUTHORITY. (2) The balance of the amounts collected lized to affect or otherwise interfere with (a) IN GENERAL.—Beginning on January 1, shall remain available for use by the Service any position set forth by any party in the 2006, the Secretary of the Interior (‘‘Sec- on a Service-wide basis as determined by the lawsuit pending before the United States retary’’) may establish, modify, charge, and Secretary. District Court for the District of New Mex- collect fees for admission to a unit of the Na- (3) Monies generated as a result of revenue ico, No. CV 99–1320 JP/RLP–ACE, entitled tional Park System and the use of National sharing agreements established pursuant to Rio Grande Silvery Minnow v. John W. Keys, Park Service (‘‘Service’’) administered areas, Section 2(f) may provide for a fee-sharing ar- III, concerning the right, title, or interest in lands, sites, facilities, and services (includ- rangement. The Service shares of fees shall and to any property associated with the Mid- ing reservations) by individuals and/or be distributed equally to all units of the Na- dle Rio Grande Project. groups. Fees shall be based on an analysis by tional Park System in the specific States the Secretary of— that are parties to the revenue sharing f (1) the benefits and services provided to the agreement. HAWAII WATER RESOURCES ACT visitor; (4) Not less than 50 percent of the amounts OF 2004 (2) the cumulative effect of fees; collected from the sale of the National Park (3) the comparable fees charged elsewhere Passport shall remain available for use at On Wednesday, May 19, 2004, the Sen- and by other public agencies and by nearby the specific area, site, or project at which ate passed S. 960, as follows: private sector operators; the fees were collected and the balance of the

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00125 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6018 CONGRESSIONAL RECORD — SENATE May 20, 2004 receipts shall be distributed in accordance Recreation District shall be used only for Sec. 108. Extension of time limit for contesting with paragraph 2 of this Section. public recreation purposes and may be devel- IRS levy. SEC. 4. EXPENDITURES. oped for those purposes. If the Secretary de- Sec. 109. Individuals held harmless on improper (a) USE OF FEES AT SPECIFIC AREA, SITE, OR termines that the real property subject to levy on individual retirement PROJECT.—Amounts available for expendi- this condition is converted, in whole or in plan. ture at a specific area, site or project shall part, to a use other than public recreation, Sec. 110. Authorization for Financial Manage- be accounted for separately and may be used the Secretary shall require the Bend Metro ment Service retention of trans- for— Park and Recreation District to pay to the action fees from levied amounts. (1) repair, maintenance, facility enhance- United States an amount equal to the fair Sec. 111. Elimination of restriction on offsetting ment, media services and infrastructure in- market value of the property at the time of refunds from former residents. cluding projects and expenses relating to vis- conversion, less the consideration paid under Subtitle B—Processing and Personnel itor enjoyment, visitor access, environ- this paragraph. Sec. 121. Information regarding statute of limi- mental compliance, and health and safety; ‘‘(2) RECONVEYANCE OF PORTION TO SCHOOL tations. (2) interpretation, visitor information, vis- DISTRICT.—As soon as practicable after the Sec. 122. Annual report on IRS performance itor service, visitor needs assessments, moni- receipt by the Bend Metro Park and Recre- measures. toring, and signs; ation District of the real property described Sec. 123. Disclosure of tax information to facili- (3) habitat enhancement, resource assess- in paragraph (1), the Bend Metro Park and tate combined employment tax re- ment, preservation, protection, and restora- Recreation District shall convey to the Ad- porting. tion related to recreation use; and ministrative School District No. 1, Sec. 124. Extension of declaratory judgment (4) law enforcement relating to public use Deschutes County, Oregon, without consider- procedures to non-501(c)(3) tax- and recreation. ation, a parcel of real property located in the (b) The Secretary may use not more than northwest corner of the real property de- exempt organizations. fifteen percent of total revenues to admin- scribed in paragraph (1) and consisting of ap- Sec. 125. Amendment to Treasury auction re- ister the recreation fee program including proximately 15 acres. The deed of convey- forms. direct operating or capital costs, cost of fee ance shall contain a covenant requiring that Sec. 126. Revisions relating to termination of collection, notification of fee requirements, the real property conveyed to the School employment of IRS employees for direct infrastructure, fee program manage- District be used only for public education misconduct. ment costs, bonding of volunteers, start-up purposes.’’. Sec. 127. Expansion of IRS Oversight Board costs, and analysis and reporting on program (b) CONFORMING AMENDMENT.—Section 4(a) Authority. accomplishments and effects. of such Act is amended by striking ‘‘section Sec. 128. IRS Oversight Board approval of use of critical pay authority. SEC. 5. REPORTS. 3(a)’’ and inserting ‘‘section 3’’. Sec. 129. Low-income taxpayer clinics. On January 1, 2009, and every three years f thereafter the Secretary shall submit to the Sec. 130. Taxpayer access to financial institu- Congress a report detailing the status of the TAX ADMINISTRATION GOOD tions. Recreation Fee Program conducted in units GOVERNMENT ACT Sec. 131. Enrolled agents. of the National Park System including an Sec. 132. Establishment of disaster response On Wednesday, May 19, 2004, the Sen- team. evaluation of the Recreation Fee Program ate passed H.R. 1528, as follows: conducted at each unit of the National Park Sec. 133. Study of accelerated tax refunds. H.R. 1528 System; a description of projects that were Sec. 134. Study on clarifying recordkeeping refunded, work accomplished, and future Resolved, That the bill from the House of sponsibilities. projects and programs for funding with fees, Representatives (H.R. 1528) entitled ‘‘An Act Sec. 135. Streamline reporting process for Na- and any recommendations for changes in the to amend the Internal Revenue Code of 1986 tional Taxpayer Advocate. overall fee system. to protect taxpayers and ensure account- Sec. 136. IRS Free File program. ability of the Internal Revenue Service.’’, do Sec. 137. Modification of TIGTA reporting re- f pass with the following amendment: quirements. BEND PINE NURSERY LAND Strike out all after the enacting clause and Sec. 138. Study of IRS accounts receivable. CONVEYANCE ACT AMENDMENTS insert: Sec. 139. Electronic Commerce Advisory Group. Sec. 140. Study on modifications to schedules L On Wednesday, May 19, 2004, the Sen- SECTION 1. SHORT TITLE; ETC. (a) SHORT TITLE.—This Act may be cited as and M–1. ate passed S. 1848, as follows: the ‘‘Tax Administration Good Government Sec. 141. Regulation of Federal income tax re- S. 1848 Act’’. turn preparers and refund antici- Be it enacted by the Senate and House of Rep- (b) AMENDMENT OF 1986 CODE.—Except as oth- pation loan providers. resentatives of the United States of America in erwise expressly provided, whenever in this Act Sec. 142. Joint task force on offers-in-com- Congress assembled, an amendment or repeal is expressed in terms of promise. SECTION 1. MODIFICATION OF BEND PINE NURS- an amendment to, or repeal of, a section or Subtitle C—Other Provisions ERY LAND CONVEYANCE. other provision, the reference shall be consid- Sec. 151. Penalty for failure to report interests (a) DESIGNATION OF RECIPIENTS AND CONSID- ered to be made to a section or other provision in foreign financial accounts. ERATION.—Section 3 of the Bend Pine Nurs- of the Internal Revenue Code of 1986. Sec. 152. Repeal of application of below-market ery Land Conveyance Act (Public Law 106– (c) TABLE OF CONTENTS.—The table of con- loan rules to amounts paid to cer- 526; 114 Stat. 2512) is amended— tents for this Act is as follows: tain continuing care facilities. (1) in subsection (a), by striking paragraph Sec. 1. Short title; etc. Sec. 153. Public support by Indian tribal gov- (1) and redesignating paragraphs (2) through TITLE I—IMPROVEMENTS IN TAX ADMIN- ernments. (7) as paragraphs (1) through (6), respec- ISTRATION AND TAXPAYER SAFE- Sec. 154. Payroll agents subject to penalty for tively; GUARDS failure to collect and pay over (2) in subsection (e)— Subtitle A—Improvements in Efficiency and tax, or attempt to evade or defeat (A) by striking ‘‘this section’’ both places tax. it appears and inserting ‘‘subsection (a)’’; Safeguards in Internal Revenue Service Col- (B) in paragraph (1), by striking ‘‘Subject lection TITLE II—REFORM OF PENALTY AND to paragraph (3), the’’ and inserting ‘‘The’’; Sec. 101. Waiver of user fee for installment INTEREST and agreements using automated with- Sec. 201. Individual estimated tax. (C) by striking paragraph (3); and drawals. Sec. 202. Corporate estimated tax. (3) by adding at the end the following: Sec. 102. Authorization for IRS to enter into in- Sec. 203. Increase in large corporation thresh- ‘‘(g) BEND PINE NURSERY CONVEYANCE.— stallment agreements that provide old for estimated tax payments. ‘‘(1) CONVEYANCE TO PARK AND RECREATION for partial payment. Sec. 204. Abatement of interest. DISTRICT.—Upon receipt of consideration in Sec. 103. Termination of installment agree- Sec. 205. Deposits made to suspend running of the amount of $3,503,676 from the Bend Metro ments. interest on potential underpay- Park and Recreation District in Deschutes Sec. 104. Office of Chief Counsel review of of- ments. County, Oregon, the Secretary shall convey fers-in-compromise. Sec. 206. Freeze of provisions regarding suspen- to the Bend Metro Park and Recreation Dis- Sec. 105. Authorization for IRS to require in- sion of interest where Secretary trict all right, title, and interest of the creased electronic filing of returns fails to contact taxpayer. United States in and to a parcel of real prop- prepared by paid return pre- Sec. 207. Clarification of application of Federal erty consisting of approximately 185 acres parers. tax deposit penalty. and containing the Bend Pine Nursery, as de- Sec. 106. Threshold on tolling of statute of limi- Sec. 208. Frivolous tax returns and submissions. picted on the site plan map entitled ‘Bend tations during review by Tax- Sec. 209. Extension of notice requirements with Pine Nursery Administrative Site, May 13, payer Advocate Service. respect to interest and penalty 2004’. Subject to paragraph (2), the real prop- Sec. 107. Increase in penalty for bad checks and calculations. erty conveyed to the Bend Metro Park and money orders. Sec. 210. Expansion of interest netting.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00126 Fmt 4624 Sfmt 6343 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6019 TITLE III—UNITED STATES TAX COURT Sec. 504. Modifications of child tax credit. stallments) is amended by redesignating sub- MODERNIZATION Sec. 505. Modifications of earned income credit. section (e) as subsection (f) and by inserting Subtitle A—Tax Court Procedure Sec. 506. Modifications of deduction for per- after subsection (d) the following: sonal exemption for dependents. ‘‘(e) WAIVER OF USER FEES FOR INSTALLMENT Sec. 301. Jurisdiction of Tax Court over collec- Sec. 507. Technical and conforming amend- AGREEMENTS USING AUTOMATED WITH- tion due process cases. ments. DRAWALS.—In the case of a taxpayer who enters Sec. 302. Authority for special trial judges to Sec. 508. Effective date. into an installment agreement in which auto- hear and decide certain employ- mated installment payments are agreed to, the ment status cases. Subtitle B—Simplification Through Elimination Secretary shall waive the fee (if any) for enter- Sec. 303. Confirmation of authority of Tax of Inoperative Provisions ing into the installment agreement.’’. Court to apply doctrine of equi- Sec. 511. Simplification through elimination of (b) EFFECTIVE DATE.—The amendments made inoperative provisions. table recoupment. by this section shall apply to agreements entered Sec. 304. Tax Court filing fee in all cases com- TITLE VI—REVENUE PROVISIONS into on or after the date which is 180 days after menced by filing petition. Subtitle A—Provisions Designed to Curtail Tax the date of the enactment of this Act. Sec. 305. Amendments to appoint employees. Shelters SEC. 102. AUTHORIZATION FOR IRS TO ENTER Sec. 306. Expanded use of Tax Court practice INTO INSTALLMENT AGREEMENTS fee for pro se taxpayers. Sec. 601. Penalty for failing to disclose reportable transaction. THAT PROVIDE FOR PARTIAL PAY- MENT. Subtitle B—Tax Court Pension and Sec. 602. Accuracy-related penalty for listed (a) IN GENERAL.— Compensation transactions and other reportable (1) Section 6159(a) (relating to authorization Sec. 311. Annuities for survivors of Tax Court transactions having a significant of agreements) is amended— judges who are assassinated. tax avoidance purpose. (A) by striking ‘‘satisfy liability for payment Sec. 312. Cost-of-living adjustments for Tax Sec. 603. Modifications of substantial under- Court judicial survivor annuities. of’’ and inserting ‘‘make payment on’’, and statement penalty for nonreport- (B) by inserting ‘‘full or partial’’ after ‘‘facili- Sec. 313. Life insurance coverage for Tax Court able transactions. tate’’. judges. Sec. 604. Tax shelter exception to confiden- (2) Section 6159(c) (relating to Secretary re- Sec. 314. Cost of life insurance coverage for Tax tiality privileges relating to tax- quired to enter into installment agreements in Court judges age 65 or over. payer communications. certain cases) is amended in the matter pre- Sec. 315. Modification of timing of lump-sum Sec. 605. Disclosure of reportable transactions. ceding paragraph (1) by inserting ‘‘full’’ before payment of judges’ accrued an- Sec. 606. Modifications to penalty for failure to ‘‘payment’’. nual leave. register tax shelters. (b) REQUIREMENT TO REVIEW PARTIAL PAY- Sec. 316. Participation of Tax Court judges in Sec. 607. Modification of penalty for failure to MENT AGREEMENTS EVERY TWO YEARS.—Section the Thrift Savings Plan. maintain lists of investors. 6159, as amended by this Act, is amended by re- Sec. 317. Exemption of teaching compensation Sec. 608. Modification of actions to enjoin cer- designating subsections (d), (e), and (f) as sub- of retired judges from limitation tain conduct related to tax shel- sections (e), (f), and (g), respectively, and in- on outside earned income. ters and reportable transactions. serting after subsection (c) the following new Sec. 318. General provisions relating to mag- Sec. 609. Understatement of taxpayer’s liability subsection: istrate judges of the Tax Court. by income tax return preparer. ‘‘(d) SECRETARY REQUIRED TO REVIEW IN- Sec. 319. Annuities to surviving spouses and de- Sec. 610. Regulation of individuals practicing STALLMENT AGREEMENTS FOR PARTIAL COLLEC- pendent children of magistrate before the Department of Treas- TION EVERY TWO YEARS.—In the case of an judges of the Tax Court. ury. agreement entered into by the Secretary under Sec. 320. Retirement and annuity program. Sec. 611. Penalty on promoters of tax shelters. subsection (a) for partial collection of a tax li- Sec. 321. Incumbent magistrate judges of the Sec. 612. Statute of limitations for taxable years ability, the Secretary shall review the agreement Tax Court. for which required listed trans- at least once every 2 years with the primary Sec. 322. Provisions for recall. actions not reported. purpose of determining whether the financial Sec. 323. Effective date. Sec. 613. Denial of deduction for interest on un- condition of the taxpayer has significantly TITLE IV—CONFIDENTIALITY AND derpayments attributable to tax- changed so as to warrant an increase in the DISCLOSURE motivated transactions. value of the payments being made.’’. Sec. 401. Clarification of definition of church Sec. 614. Authorization of appropriations for (c) EFFECTIVE DATE.—The amendments made tax inquiry. tax law enforcement. by this section shall apply to agreements entered Sec. 402. Collection activities with respect to PART II—OTHER CORPORATE GOVERNANCE into on or after the date of the enactment of this joint return disclosable to either PROVISIONS Act. spouse based on oral request. Sec. 621. Affirmation of consolidated return reg- SEC. 103. TERMINATION OF INSTALLMENT Sec. 403. Taxpayer representatives not subject ulation authority. AGREEMENTS. to examination on sole basis of Sec. 622. Declaration by chief executive officer (a) IN GENERAL.—Section 6159(b)(4) (relating representation of taxpayers. relating to Federal annual income to failure to pay an installment or any other tax Sec. 404. Prohibition of disclosure of taxpayer tax return of a corporation. liability when due or to provide requested finan- identification information with Sec. 623. Denial of deduction for certain fines, cial information) is amended by striking ‘‘or’’ at respect to disclosure of accepted penalties, and other amounts. the end of subparagraph (B), by redesignating offers-in-compromise. Sec. 624. Disallowance of deduction for punitive subparagraph (C) as subparagraph (E), and by Sec. 405. Compliance by contractors with con- damages. inserting after subparagraph (B) the following: fidentiality safeguards. Sec. 625. Increase in criminal monetary penalty ‘‘(C) to make a Federal tax deposit under sec- Sec. 406. Higher standards for requests for and for individuals to the amount of tion 6302 at the time such deposit is required to consents to disclosure. the tax at issue. be made, Sec. 407. Civil damages for unauthorized disclo- Sec. 626. Doubling of certain penalties, fines, ‘‘(D) to file a return of tax imposed under this sure or inspection. and interest on underpayments title by its due date (including extensions), or’’. Sec. 408. Expansion of disclosure in emergency related to certain offshore finan- (b) CONFORMING AMENDMENT.—Section circumstances. cial arrangements. 6159(b)(4) is amended by striking ‘‘FAILURE TO PAY AN INSTALLMENT OR ANY OTHER TAX LIABIL- Sec. 409. Disclosure of taxpayer identity for tax PART III—EXTENSION OF IRS USER FEES refund purposes. ITY WHEN DUE OR TO PROVIDE REQUESTED FINAN- Sec. 410. Disclosure to State officials of pro- Sec. 631. Extension of IRS user fees. CIAL INFORMATION’’ and inserting ‘‘FAILURE TO posed actions related to section PART IV—OTHER REVENUE PROVISIONS MAKE PAYMENTS OR DEPOSITS OR FILE RETURNS 501(c) organizations. Sec. 641. Reporting of taxable mergers and ac- WHEN DUE OR TO PROVIDE REQUESTED FINANCIAL Sec. 411. Treatment of public records. quisitions. INFORMATION’’. Sec. 412. Employee identity disclosures. Sec. 642. Modification of definition of con- (c) EFFECTIVE DATE.—The amendments made Sec. 413. Taxpayer identification number trolled group of corporations. by this section shall apply to failures occurring on or after the date of the enactment of this Act. matching. TITLE I—IMPROVEMENTS IN TAX ADMIN- Sec. 414. Form 8300 disclosures. SEC. 104. OFFICE OF CHIEF COUNSEL REVIEW OF ISTRATION AND TAXPAYER SAFE- OFFERS-IN-COMPROMISE. Sec. 415. Disclosure to law enforcement agencies GUARDS regarding terrorist activities. (a) IN GENERAL.—Section 7122(b) (relating to Subtitle A—Improvements in Efficiency and record) is amended by striking ‘‘Whenever a TITLE V—SIMPLIFICATION Safeguards in Internal Revenue Service Col- compromise’’ and all that follows through ‘‘his Subtitle A—Uniform Definition of Child lection delegate’’ and inserting ‘‘If the Secretary deter- Sec. 501. Uniform definition of child, etc. SEC. 101. WAIVER OF USER FEE FOR INSTALL- mines that an opinion of the General Counsel Sec. 502. Modifications of definition of head of MENT AGREEMENTS USING AUTO- for the Department of the Treasury, or the household. MATED WITHDRAWALS. Counsel’s delegate, is required with respect to a Sec. 503. Modifications of dependent care cred- (a) IN GENERAL.—Section 6159 (relating to compromise, there shall be placed on file in the it. agreements for payment of tax liability in in- office of the Secretary such opinion’’.

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(b) CONFORMING AMENDMENTS.—Section ‘‘(2) TREATMENT AS ROLLOVER.—The distribu- (c) EFFECTIVE DATE.—The amendments made 7122(b) is amended by striking the second and tion on account of the levy and any deposit by this section shall take effect on the date of third sentences. under paragraph (1) with respect to such dis- the enactment of this Act. (c) EFFECTIVE DATE.—The amendments made tribution shall be treated for purposes of this Subtitle B—Processing and Personnel by this section shall apply to offers-in-com- title as if such distribution and deposit were promise submitted or pending on or after the part of a rollover described in section SEC. 121. INFORMATION REGARDING STATUTE OF date of the enactment of this Act. 408(d)(3)(A)(i); except that— LIMITATIONS. SEC. 105. AUTHORIZATION FOR IRS TO REQUIRE ‘‘(A) interest paid under subsection (c) shall The Secretary of the Treasury or the Sec- INCREASED ELECTRONIC FILING OF be treated as part of such distribution and as retary’s delegate shall— RETURNS PREPARED BY PAID RE- not includible in gross income, (1) as soon as practicable but not later than TURN PREPARERS. ‘‘(B) the 60-day requirement in such section 180 days after the date of the enactment of this (a) IN GENERAL.—Section 6011(e) (relating to shall be treated as met if the deposit is made not Act, revise the statement required by section regulations requiring returns on magnetic later than the 60th day after the day on which 6227 of the Omnibus Taxpayer Bill of Rights media, etc.) is amended— the individual receives an amount under para- (Internal Revenue Service Publication No. 1), (1) by striking the second sentence in para- and graph (1), and graph (1) from the Secretary, and (2) by striking ‘‘250’’ in paragraph (2)(A) and ‘‘(C) such deposit shall not be taken into ac- (2) for taxable years beginning after December inserting ‘‘5’’. count under section 408(d)(3)(B). 31, 2004, revise any instructions booklet accom- (b) EFFECTIVE DATE.—The amendments made ‘‘(3) REFUND, ETC., OF INCOME TAX ON LEVY.— panying a general income tax return form (in- by this section shall take effect on the date of If any amount is includible in gross income for cluding forms 1040, 1040A, 1040EZ, and any the enactment of this Act. a taxable year by reason of a levy referred to in similar or successor forms relating thereto), SEC. 106. THRESHOLD ON TOLLING OF STATUTE paragraph (1) and any portion of such amount to provide for an explanation of the limitations OF LIMITATIONS DURING REVIEW BY is treated as a rollover under paragraph (2), any imposed by section 6511 of the Internal Revenue TAXPAYER ADVOCATE SERVICE. tax imposed by chapter 1 on such portion shall Code of 1986 on credits and refunds, and the (a) IN GENERAL.—Section 7811(d)(1) (relating not be assessed, and if assessed shall be abated, consequences under such section 6511 of the fail- to suspension of running of period of limitation) and if collected shall be credited or refunded as ure to file a return of tax. is amended by inserting after ‘‘such applica- an overpayment made on the due date for filing SEC. 122. ANNUAL REPORT ON IRS PERFORM- tion,’’ the following: ‘‘but only if the date of the return of tax for such taxable year. ANCE MEASURES. such decision is at least 7 days after the date of ‘‘(4) INTEREST.—Notwithstanding subsection (a) IN GENERAL.—Section 7803(a) (relating to the taxpayer’s application’’. (d), interest shall be allowed under subsection Commissioner of Internal Revenue) is amended (b) EFFECTIVE DATE.—The amendment made (c) in a case in which the Secretary makes a de- by this section shall apply to applications filed by adding at the end the following new para- termination described in subsection (d)(2)(A) graph: after the date of the enactment of this Act. with respect to a levy upon an individual retire- ‘‘(4) ANNUAL REPORT ON IRS PERFORMANCE SEC. 107. INCREASE IN PENALTY FOR BAD ment plan.’’. MEASURES.—Not later than December 31 of each CHECKS AND MONEY ORDERS. (b) EFFECTIVE DATE.—The amendment made calendar year, the Commissioner shall report to (a) IN GENERAL.—Section 6657 (relating to bad by this section shall apply to amounts paid Congress and the Oversight Board on perform- checks) is amended— under subsections (b), (c), and (d)(2)(A) of sec- ance goals and projections for the 5-fiscal-year (1) by striking ‘‘$750’’ and inserting ‘‘$1,250’’, tion 6343 of the Internal Revenue Code of 1986 period beginning with the fiscal year ending in and after December 31, 2004. (2) by striking ‘‘$15’’ and inserting ‘‘$25’’. such calendar year against which to measure (b) EFFECTIVE DATE.—The amendments made SEC. 110. AUTHORIZATION FOR FINANCIAL MAN- the performance of the Internal Revenue Service by this section apply to checks or money orders AGEMENT SERVICE RETENTION OF in the areas of the public rating of the Internal TRANSACTION FEES FROM LEVIED received after the date of the enactment of this AMOUNTS. Revenue Service, customer service, compliance, Act. and management initiatives. The report shall in- (a) IN GENERAL.—Notwithstanding any other SEC. 108. EXTENSION OF TIME LIMIT FOR CON- provision of law, the Financial Management clude the long-term performance goal for each TESTING IRS LEVY. Service may charge the Internal Revenue Serv- measurement and a brief narrative explaining (a) EXTENSION OF TIME FOR RETURN OF PROP- ice, and the Internal Revenue Service may pay how the Commissioner plans to meet each goal. ERTY SUBJECT TO LEVY.—Subsection (b) of sec- For each performance goal, the report shall in- tion 6343 (relating to return of property) is the Financial Management Service, a fee sufficient to cover the full cost of implementing a clude comparisons between the projected per- amended by striking ‘‘9 months’’ and inserting formance level and actual performance level. ‘‘2 years’’. continuous levy program under subsection (h) of section 6331 of the Internal Revenue Code of For each performance measurement, the report (b) PERIOD OF LIMITATION ON SUITS.—Sub- shall include a volume projection for such pe- section (c) of section 6532 (relating to suits by 1986. Any such fee shall be based on actual levies made and shall be collected by the Financial riod. If the Internal Revenue Service fails to persons other than taxpayers) is amended— achieve one of its goals, the report shall explain (1) in paragraph (1) by striking ‘‘9 months’’ Management Service by the retention of a portion of amounts collected by levy pursuant to why. The report shall also include data and a and inserting ‘‘2 years’’, and narrative regarding the actual and projected (2) in paragraph (2) by striking ‘‘9-month’’ that subsection. Amounts received by the Finan- level of the workload and resources of the Inter- and inserting ‘‘2-year’’. cial Management Service as fees under that sub- nal Revenue Service for such 5-year period.’’. (c) EFFECTIVE DATE.—The amendments made section shall be deposited into the account of by this section shall apply to— the Department of the Treasury under section (b) EFFECTIVE DATE.—The amendment made (1) levies made after the date of the enactment 3711(g)(7) of title 31, United States Code, and by this section shall apply to reports for fiscal of this Act, and shall be collected and accounted for in accord- year 2004 and thereafter. (2) levies made on or before such date if the 9- ance with the provisions of that section. The SEC. 123. DISCLOSURE OF TAX INFORMATION TO month period has not expired under section amount credited against the taxpayer’s liability FACILITATE COMBINED EMPLOY- 6343(b) of the Internal Revenue Code of 1986 on account of the continuous levy shall be the MENT TAX REPORTING. (without regard to this section) as of such date. amount levied, without reduction for the (a) IN GENERAL.—Paragraph (5) of section SEC. 109. INDIVIDUALS HELD HARMLESS ON IM- amount paid to the Financial Management 6103(d) (relating to disclosure to State tax offi- PROPER LEVY ON INDIVIDUAL RE- Service as a fee. cials and State and local law enforcement agen- TIREMENT PLAN. (b) EFFECTIVE DATE.—The provisions of this cies) is amended to read as follows: (a) IN GENERAL.—Section 6343 (relating to au- section shall take effect on the date of the en- ‘‘(5) DISCLOSURE FOR COMBINED EMPLOYMENT thority to release levy and return property) is actment of this Act. TAX REPORTING.—The Secretary shall disclose amended by adding at the end the following taxpayer identity information and signatures to new subsection: SEC. 111. ELIMINATION OF RESTRICTION ON OFF- SETTING REFUNDS FROM FORMER any agency, body, or commission of any State ‘‘(f) INDIVIDUALS HELD HARMLESS ON WRONG- RESIDENTS. for the purpose of carrying out with such agen- FUL LEVY, ETC. ON INDIVIDUAL RETIREMENT (a) IN GENERAL.—Section 6402(e) (relating to cy, body, or commission a combined Federal and PLAN.— State employment tax reporting program ap- ‘‘(1) IN GENERAL.—If the Secretary determines collection of past-due, legally enforceable State proved by the Secretary. Subsections (a)(2) and that an individual retirement plan has been lev- income tax obligations) is amended by striking (p)(4) and sections 7213 and 7213A shall not ied upon in a case to which subsection (b) or paragraph (2) and by redesignating paragraphs apply with respect to disclosures or inspections (d)(2)(A) applies and an amount is returned to (3), (4), (5), (6), and (7) as paragraphs (2), (3), made pursuant to this paragraph.’’. the individual who is the beneficiary of such (4), (5), and (6), respectively. plan, the individual may deposit an amount (b) CLARIFICATION OF DISCLOSURE AUTHOR- (b) EFFECTIVE DATE.—The amendment made equal to the sum of— ITY.—Section 6103(l)(10) (relating to disclosure by this section shall take effect on the date of ‘‘(A) the amount of money returned by the of certain information to agencies requesting a the enactment of this Act. Secretary on account of such levy, and reduction under subsection (c), (d), or (e) or sec- SEC. 124. EXTENSION OF DECLARATORY JUDG- ‘‘(B) interest paid under subsection (c) on tion 6402) is amended— MENT PROCEDURES TO NON-501(c)(3) such amount of money, (1) by striking ‘‘, (d), or (e)’’ each place it ap- TAX-EXEMPT ORGANIZATIONS. into an individual retirement plan (other than pears and inserting ‘‘or (d)’’, and (a) IN GENERAL.—Paragraph (1) of section an endowment contract) to which a rollover (2) by striking ‘‘, (d), OR (e)’’ in the heading 7428(a) (relating to creation of remedy) is from the plan levied upon is permitted. and inserting ‘‘OR (d)’’. amended—

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(1) in subparagraph (B) by inserting after ‘‘(5) assault or battery on a taxpayer or tax- (c) CONTINUITY IN OFFICE.—Section 7802(b)(2) ‘‘509(a))’’ the following: ‘‘or as a private oper- payer representative, but only if there is a crimi- (relating to qualifications and terms) is amended ating foundation (as defined in section nal conviction, or a final judgment by a court in by adding at the end the following new sub- 4942(j)(3))’’; and a civil case, with respect to the assault or bat- paragraph: (2) by amending subparagraph (C) to read as tery, ‘‘(E) CONTINUATION IN OFFICE.—Any member follows: ‘‘(6) violations of this title, Department of the whose term expires shall serve until the earlier ‘‘(C) with respect to the initial qualification or Treasury regulations, or policies of the Internal of the date on which the member’s successor continuing qualification of an organization as Revenue Service (including the Internal Rev- takes office or the date which is 1 year after the an organization described in section 501(c) enue Manual) for the purpose of retaliating date of the expiration of the member’s term. (other than paragraph (3)) or 501(d) which is ex- against, or harassing, a taxpayer or taxpayer (d) ACCESS TO HEALTH BENEFITS.—Section empt from tax under section 501(a), or’’. representative, 7802(e) (relating to Board personnel matters) is (b) COURT JURISDICTION.—Subsection (a) of ‘‘(7) willful misuse of the provisions of section amended by adding at the end the following section 7428 is amended in the material fol- 6103 for the purpose of concealing information new paragraph: lowing paragraph (2) by striking ‘‘United States from a congressional inquiry, ‘‘(5) MEMBERS ACCESS TO FEHBP.—Each mem- Tax Court, the United States Claims Court, or ‘‘(8) willful failure to file any return of tax re- ber of the Oversight Board who— the district court of the United States for the quired under this title on or before the date pre- ‘‘(A) is described in subsection (b)(1)(A), or District of Columbia’’ and inserting the fol- scribed therefor (including any extensions) ‘‘(B) is described in subsection (b)(1)(D) and is lowing: ‘‘United States Tax Court (in the case of when a tax is due and owing, unless such fail- not otherwise a Federal officer or employee, ure is due to reasonable cause and not due to any such determination or failure) or the United shall be considered an employee solely for pur- States Claims Court or the district court of the willful neglect, ‘‘(9) willful understatement of Federal tax li- poses of chapter 89 of title 5, United States United States for the District of Columbia (in Code.’’. the case of a determination or failure with re- ability, unless such understatement is due to (e) DIRECTOR OF INTERNAL REVENUE SERVICE spect to an issue referred to in subparagraph (A) reasonable cause and not due to willful neglect, OVERSIGHT BOARD.—Subsection (e) of section or (B) of paragraph (1)),’’. and ‘‘(10) threatening to audit a taxpayer for the 7802, as amended by subsection (d), is amended (c) EFFECTIVE DATE.—The amendments made by redesignating paragraphs (3), (4), and (5) as by this section shall apply to pleadings filed purpose of extracting personal gain or benefit. ‘‘(c) DETERMINATIONS OF COMMISSIONER.— paragraphs (4), (5), and (6), respectively, and by with respect to determinations (or requests for ‘‘(1) IN GENERAL.—The Commissioner may inserting after paragraph (2) the following new determinations) made after December 31, 2004. take a personnel action other than termination paragraph: SEC. 125. AMENDMENT TO TREASURY AUCTION for an act or omission described under sub- ‘‘(3) DIRECTOR.—The Chairperson of the Over- REFORMS. section (b). sight Board shall, without regard to the provi- (a) IN GENERAL.—Clause (i) of section ‘‘(2) DISCRETION.—The exercise of authority sions of title 5, United Stated Code, governing 202(c)(4)(B) of the Government Securities Act under paragraph (1) shall be at the sole discre- appointments in the competitive service, appoint Amendments of 1993 (31 U.S.C. 3121 note) is tion of the Commissioner and may not be dele- a Director for the Oversight Board. The Director amended by inserting before the semicolon ‘‘(or, gated to any other officer. The Commissioner, in shall be paid at the same rate as the highest- if earlier, at the time the Secretary releases the the Commissioner’s sole discretion, may estab- rate of basic pay established for the Senior Ex- minutes of the meeting in accordance with para- lish a procedure which will be used to determine ecutive Service under section 5382 of title 5, graph (2))’’. whether an individual should be referred to the United States Code.’’. (b) EFFECTIVE DATE.—The amendment made Commissioner for a determination by the Com- (f) EFFECTIVE DATE.—The amendments made by this section shall apply to meetings held after missioner under paragraph (1). by this section shall take effect on the date of the date of the enactment of this Act. ‘‘(3) NO APPEAL.—Any determination of the the enactment of this Act. SEC. 126. REVISIONS RELATING TO TERMINATION Commissioner under this subsection may not be SEC. 128. IRS OVERSIGHT BOARD APPROVAL OF OF EMPLOYMENT OF IRS EMPLOY- appealed in any administrative or judicial pro- USE OF CRITICAL PAY AUTHORITY. EES FOR MISCONDUCT. ceeding. (a) IN GENERAL.—Section 7802(d)(3) (relating (a) IN GENERAL.—Subchapter A of chapter 80 ‘‘(d) DEFINITION.—For the purposes of the to management) is amended by striking ‘‘and’’ (relating to application of internal revenue provisions described in clauses (i), (ii), and (iv) at the end of subparagraph (B), by striking the laws) is amended by inserting after section 7804 of subsection (b)(3)(B), references to a program period at the end of subparagraph (C) and in- the following new section: or activity regarding Federal financial assist- serting ‘‘; and’’, and by adding at the end the ‘‘SEC. 7804A. TERMINATION OF EMPLOYMENT FOR ance or an education program or activity receiv- following new subparagraph: MISCONDUCT. ing Federal financial assistance shall include ‘‘(D) review and approve the Commissioner’s ‘‘(a) IN GENERAL.—Subject to subsection (c), any program or activity conducted by the Inter- use of critical pay authority under section 9502 the Commissioner shall terminate the employ- nal Revenue Service for a taxpayer.’’. of title 5, United States Code, and streamlined (b) CLERICAL AMENDMENT.—The table of sec- ment of any employee of the Internal Revenue critical pay authority under section 9503 of such tions for chapter 80 is amended by inserting Service if there is a final administrative or judi- title.’’. cial determination that such employee com- after the item relating to section 7804 the fol- (b) EFFECTIVE DATE.—The amendments made mitted any act or omission described under sub- lowing new item: by this section shall apply to personnel hired section (b) in the performance of the employee’s ‘‘Sec. 7804A. Termination of employment for after the date of the enactment of this Act. official duties. Such termination shall be a re- misconduct.’’. moval for cause on charges of misconduct. SEC. 129. LOW-INCOME TAXPAYER CLINICS. (c) REPEAL OF SUPERSEDED SECTION.—Section ‘‘(b) ACTS OR OMISSIONS.—The acts or omis- (a) GRANTS FOR RETURN PREPARATION CLIN- 1203 of the Internal Revenue Service Restruc- ICS.— sions described under this subsection are— turing and Reform Act of 1998 (Public Law 105– ‘‘(1) willful failure to obtain the required ap- (1) IN GENERAL.—Chapter 77 (relating to mis- 206; 112 Stat. 720) is repealed. cellaneous provisions) is amended by inserting proval signatures on documents authorizing the (d) EFFECTIVE DATE.—The amendments made after section 7526 the following new section: seizure of a taxpayer’s home, personal belong- by this section shall take effect on the date of ings, or business assets, the enactment of this Act. ‘‘SEC. 7526A. RETURN PREPARATION CLINICS FOR ‘‘(2) providing a false statement under oath LOW-INCOME TAXPAYERS. SEC. 127. EXPANSION OF IRS OVERSIGHT BOARD with respect to a material matter involving a AUTHORITY. ‘‘(a) IN GENERAL.—The Secretary may, subject to the availability of appropriated funds, make taxpayer or taxpayer representative, (a) APPROVAL WITH RESPECT TO SENIOR EX- grants to provide matching funds for the devel- ‘‘(3) with respect to a taxpayer or taxpayer ECUTIVES.—Section 7802(d)(3)(B) (relating to representative, the violation of— management) is amended by inserting ‘‘and ap- opment, expansion, or continuation of qualified ‘‘(A) any right under the Constitution of the prove’’ after ‘‘review’’. return preparation clinics. United States, or (b) REPORTS.— ‘‘(b) DEFINITIONS.—For purposes of this sec- ‘‘(B) any civil right established under— (1) BUDGET REQUEST.—Section 7802(d) (relat- tion— ‘‘(i) title VI or VII of the Civil Rights Act of ing to specific responsibilities) is amended— ‘‘(1) QUALIFIED RETURN PREPARATION CLIN- 1964, (A) by inserting ‘‘with detailed analysis’’ after IC.— ‘‘(ii) title IX of the Education Amendments of ‘‘budget request’’ in paragraph (4)(B), and ‘‘(A) IN GENERAL.—The term ‘qualified return 1972, (B) by inserting ‘‘without any additional re- preparation clinic’ means a clinic which— ‘‘(iii) the Age Discrimination in Employment view or comment from the Commissioner, the ‘‘(i) does not charge more than a nominal fee Act of 1967, Secretary, any other officer or employee of the for its services (except for reimbursement of ac- ‘‘(iv) the Age Discrimination Act of 1975, Department of the Treasury, or the Office of tual costs incurred), and ‘‘(v) section 501 or 504 of the Rehabilitation Management and Budget’’ before ‘‘to the Presi- ‘‘(ii) operates programs which assist low-in- Act of 1973, or dent’’ in the last sentence thereof. come taxpayers in preparing and filing their ‘‘(vi) title I of the Americans with Disabilities (2) DATE OF SUBMISSION OF ANNUAL REPORT.— Federal income tax returns, including schedules Act of 1990, Section 7802(f)(3)(A) (relating to annual reports) reporting sole proprietorship or farm income. ‘‘(4) falsifying or destroying documents to is amended by striking ‘‘The Oversight Board ‘‘(B) ASSISTANCE TO LOW-INCOME TAX- conceal mistakes made by any employee with re- shall each year report’’ and insert ‘‘Not later PAYERS.—A clinic is treated as assisting low-inspect to a matter involving a taxpayer or tax- than March 1 of each calendar year, the Over- come taxpayers under subparagraph (A)(ii) if at payer representative, sight Board shall report’’. least 90 percent of the taxpayers assisted by the

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00129 Fmt 4624 Sfmt 6333 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6022 CONGRESSIONAL RECORD — SENATE May 20, 2004 clinic have incomes which do not exceed 250 per- (G) a Native Hawaiian organization, made by this section may not be construed to cent of the poverty level, as determined in ac- (H) a labor organization, or have any effect on part 10 of title 31, Code of cordance with criteria established by the Direc- (I) a partnership comprised of 1 or more of the Federal Regulations, or any other related Fed- tor of the Office of Management and Budget. entities described in the preceding subpara- eral rule or regulation issued before the date of ‘‘(2) CLINIC.—The term ‘clinic’ includes— graphs. the enactment of this Act. ‘‘(A) a clinical program at an eligible edu- (2) DEFINITIONS.—For purposes of this sec- (d) EFFECTIVE DATE.—The amendments made cational institution (as defined in section tion— by this section shall take effect on the date of 529(e)(5)) which satisfies the requirements of (A) FEDERALLY INSURED DEPOSITORY INSTITU- the enactment of this Act. paragraph (1) through student assistance of TION.—The term ‘‘federally insured depository SEC. 132. ESTABLISHMENT OF DISASTER RE- taxpayers in return preparation and filing, and institution’’ means any insured depository insti- SPONSE TEAM. ‘‘(B) an organization described in section tution (as defined in section 3 of the Federal De- (a) IN GENERAL.—Section 7803 (relating to 501(c) and exempt from tax under section 501(a) posit Insurance Act (12 U.S.C. 1813)) and any Commissioner of Internal Revenue; other offi- which satisfies the requirements of paragraph insured credit union (as defined in section 101 of cials) is amended by adding at the end the fol- (1). the Federal Credit Union Act (12 U.S.C. 1752)). lowing new subsection: ‘‘(c) SPECIAL RULES AND LIMITATIONS.— (B) COMMUNITY DEVELOPMENT FINANCIAL IN- ‘‘(e) DISASTER RESPONSE TEAM.— ESPONSE TO DISASTERS ‘‘(1) AGGREGATE LIMITATION.—Unless other- STITUTION.—The term ‘‘community development ‘‘(1) R .—The Secretary wise provided by specific appropriation, the Sec- financial institution’’ means any organization shall— ‘‘(A) establish as a permanent office in the retary shall not allocate more than $10,000,000 that has been certified as such pursuant to sec- national office of the Internal Revenue Service per year (exclusive of costs of administering the tion 1805.201 of title 12, Code of Federal Regula- a disaster response team composed of members, program) to grants under this section. tions. who in addition to their regular responsibilities, ‘‘(2) OTHER APPLICABLE RULES.—Rules similar (C) ALASKA NATIVE CORPORATION.—The term shall assist taxpayers in clarifying and resolving to the rules under paragraphs (2) through (7) of ‘‘Alaska Native Corporation’’ has the same Federal tax matters associated with or resulting section 7526(c) shall apply with respect to the meaning as the term ‘‘Native Corporation’’ from any Presidentially declared disaster (as de- awarding of grants to qualified return prepara- under section 3(m) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)). fined in section 1033(h)(3)), and tion clinics.’’. ‘‘(B) respond to requests by such taxpayers for (D) NATIVE HAWAIIAN ORGANIZATION.—The (2) CLERICAL AMENDMENT.—The table of sec- filing extensions and technical guidance expedi- term ‘‘Native Hawaiian organization’’ means tions for chapter 77 is amended by inserting tiously. any organization that— after the item relating to section 7526 the fol- ‘‘(2) PERSONNEL OF DISASTER RESPONSE (i) serves and represents the interests of Na- lowing new item: TEAM.—The disaster response team shall be com- tive Hawaiians, and posed of— ‘‘Sec. 7526A. Return preparation clinics for low- (ii) has as a primary and stated purpose the income taxpayers.’’. ‘‘(A) personnel from the Office of the Tax- provision of services to Native Hawaiians. payer Advocate, and RANTS FOR TAXPAYER REPRESENTATION (b) G (E) LABOR ORGANIZATION.—The term ‘‘labor ‘‘(B) personnel from the national office of the AND ASSISTANCE CLINICS.— organization’’ means an organization— Internal Revenue Service with expertise in indi- (1) INCREASE IN AUTHORIZED GRANTS.—Section (i) in which employees participate, vidual, corporate, and small business tax mat- 7526(c)(1) (relating to aggregate limitation) is (ii) which exists for the purpose, in whole or ters. amended by striking ‘‘$6,000,000’’ and inserting in part, of dealing with employers concerning ‘‘(3) COORDINATION WITH FEMA.—The disaster ‘‘$10,000,000’’. grievances, labor disputes, wages, rates of pay, response team shall operate in coordination (2) USE OF GRANTS FOR OVERHEAD EXPENSES hours of employment, or conditions of work, and with the Director of the Federal Emergency PROHIBITED.— (iii) which is described in section 501(c)(5). Management Agency. (A) IN GENERAL.—Section 7526(c) (relating to (c) APPLICATION.—An eligible entity desiring a ‘‘(4) TOLL-FREE TELEPHONE NUMBER.—The special rules and limitations) is amended by grant under this section shall submit an appli- Commissioner of Internal Revenue shall estab- adding at the end the following new paragraph: cation to the Secretary in such form and con- lish and maintain a toll-free telephone number ‘‘(6) USE OF GRANTS FOR OVERHEAD EXPENSES taining such information as the Secretary may for taxpayers to use to receive assistance from PROHIBITED.—No grant made under this section require. the disaster response team. may be used for the overhead expenses of any (d) LIMITATION ON ADMINISTRATIVE COSTS.—A ‘‘(5) INTERNET WEBPAGE SITE.—The Commis- clinic or of any institution sponsoring such clin- recipient of a grant under this section may not sioner of Internal Revenue shall establish and ic.’’. use more than 6 percent of the total amount of maintain a site on the Internet webpage of the (B) CONFORMING AMENDMENTS.—Section such grant in any fiscal year for the administra- Internal Revenue Service for information for 7526(c)(5) is amended— tive costs of carrying out the programs funded taxpayers described in paragraph (1)(A).’’. (i) by inserting ‘‘qualified’’ before ‘‘low-in- by such grant in such fiscal year. (b) FEMA.—The Director of the Federal Emer- come’’, and (e) EVALUATION AND REPORT.—For each fiscal gency Management Agency shall work in co- (ii) by striking the last sentence. year in which a grant is awarded under this ordination with the disaster response team es- (3) PROMOTION OF CLINICS.—Section 7526(c), section, the Secretary shall submit a report to tablished under section 7803(e) of the Internal as amended by paragraph (2), is amended by Congress containing a description of the activi- Revenue Code of 1986 to provide timely assist- adding at the end the following new paragraph: ties funded, amounts distributed, and measur- ance to disaster victims described in such sec- ‘‘(7) PROMOTION OF CLINICS.—The Secretary is able results, as appropriate and available. tion, including— authorized to promote the benefits of and en- (f) AUTHORIZATION OF APPROPRIATIONS.— (1) informing the disaster response team re- courage the use of low-income taxpayer clinics There is authorized to be appropriated to the garding any tax-related problems or issues aris- through the use of mass communications, refer- Secretary, for the grant program described in ing in connection with the disaster, rals, and other means.’’. this section, $10,000,000, or such additional (2) providing the toll-free telephone number (c) EFFECTIVE DATE.—The amendments made amounts as deemed necessary, to remain avail- established and maintained by the Internal Rev- by this section shall apply to grants made after able until expended. enue Service for the disaster victims in all mate- the date of the enactment of this Act. (g) REGULATIONS.—The Secretary is author- rials provided to such victims, and ized to promulgate regulations to implement and (3) providing the information described in sec- SEC. 130. TAXPAYER ACCESS TO FINANCIAL IN- tion 7803(e)(5) of such Code on the Internet STITUTIONS. administer the grant program under this section. webpage of the Federal Emergency Management (a) ESTABLISHMENT OF PROGRAM.—The Sec- SEC. 131. ENROLLED AGENTS. Agency or through a link on such webpage to retary is authorized to award demonstration (a) IN GENERAL.—Chapter 77 (relating to mis- the Internet webpage site of the Internal Rev- project grants (including multi-year grants) to cellaneous provisions) is amended by adding at enue Service described in such section. eligible entities to provide tax preparation serv- the end the following new section: (c) EFFECTIVE DATE.—The amendment made ices and assistance in connection with estab- ‘‘SEC. 7529. ENROLLED AGENTS. by this section shall take effect on the date of lishing an account in a federally insured deposi- ‘‘(a) IN GENERAL.—The Secretary may pre- the enactment of this Act. tory institution for individuals that currently do scribe such regulations as may be necessary to SEC. 133. STUDY OF ACCELERATED TAX REFUNDS. not have such an account. regulate the conduct of enrolled agents in re- (a) STUDY.—The Secretary of the Treasury (b) ELIGIBLE ENTITIES.— gards to their practice before the Internal Rev- shall study the implementation of an acceler- (1) IN GENERAL.—An entity is eligible to re- enue Service. ated refund program for taxpayers who— ceive a grant under this section if such an entity ‘‘(b) USE OF CREDENTIALS.—Any enrolled (1) maintain the same filing characteristics is— agents properly licensed to practice as required from year to year, and (A) an organization described in section under rules promulgated under section (a) here- (2) elect the direct deposit option for any re- 501(c)(3) of the Internal Revenue Code of 1986 in shall be allowed to use the credentials or des- fund under the program. and exempt from tax under section 501(a) of ignation as ‘enrolled agent’, ‘EA’, or ‘E.A.’.’’. (b) REPORT.—Not later than the date which is such Code, (b) CLERICAL AMENDMENT.—The table of sec- 1 year after the date of the enactment of this (B) a federally insured depository institution, tions for chapter 77 is amended by adding at the Act, the Secretary of the Treasury shall trans- (C) an agency of a State or local government, end the following new item: mit a report of the study described in subsection (D) a community development financial insti- (a), including recommendations, to the Com- tution, ‘‘Sec. 7529. Enrolled agents.’’. mittee on Finance of the Senate and the Com- (E) an Indian tribal organization, (c) PRIOR REGULATIONS.—The authorization mittee on Ways and Means of the House of Rep- (F) an Alaska Native Corporation, to prescribe regulations under the amendments resentatives.

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SEC. 134. STUDY ON CLARIFYING RECORD- (1) by striking ‘‘ANNUAL’’ in the heading and (3) Worldwide net income from public finan- KEEPING RESPONSIBILITIES. inserting ‘‘BIENNIAL’’, cial disclosures. (a) STUDY.—The Secretary of the Treasury (2) by inserting ‘‘every 2 years (beginning in (4) The components of tax expense presently shall study— 2004)’’ after ‘‘one of the semiannual reports’’ in recorded in financial statement tax footnotes. (1) the scope of the records required to be the matter preceding subparagraph (A), (5) The reconciliation of the book income of maintained by taxpayers under section 6001 of (3) by striking clause (ii) of subparagraph (A), entities included in the consolidated financial the Internal Revenue Code of 1986, (4) by redesignating clauses (iii), (iv), and (v) statement with book income included in the con- (2) the utility of requiring taxpayers to main- of subparagraph (A) as clauses (ii), (iii), and solidated tax return. tain all records indefinitely, (iv) of subparagraph (A), respectively, (6) The adjustment for book income from do- (3) such requirement given the necessity to up- (5) by striking subparagraph (B), mestic and foreign entities excluded from finan- grade technological storage for outdated (6) by striking ‘‘and’’ at the end of subpara- cial reporting but included for tax reconcili- records, graph (F), ation. (4) the number of negotiated records retention (7) by redesignating subparagraphs (C), (D), (7) The book income of United States entities agreements requested by taxpayers and the (E), and (F) as subparagraphs (B), (C), (D), and included in the United States consolidated re- number entered into by the Internal Revenue (E), respectively, and turn. Service, and (8) by striking subparagraph (G) and inserting (8) Taxable income due to actual or deemed (5) proposals regarding taxpayer record-keep- the following new subparagraphs: dividends from foreign subsidiaries. ing. ‘‘(F) the number of employee misconduct and (9) A reconciliation which should reflect (b) REPORT.—Not later than the date which is taxpayer abuse allegations received by the In- pretax book income of United States consoli- 1 year after the date of the enactment of this ternal Revenue Service or the Inspector General dated tax group plus taxable deemed or actual Act, the Secretary of the Treasury shall trans- during the period from taxpayers, Internal Rev- foreign repatriations. mit a report of the study described in subsection enue Service employees, and other sources; and (10) The differences in the reporting of income (a), including recommendations, to the Com- ‘‘(G) with respect to allegations of serious em- and expense between book and tax reporting, in- mittee on Finance of the Senate and the Com- ployee misconduct— cluding specific reporting on pension expense, mittee on Ways and Means of the House of Rep- ‘‘(i) a summary of the status of such allega- stock options, and the amortization of goodwill. resentatives. tions; and (11) Other reconciliation items in a consistent SEC. 135. STREAMLINE REPORTING PROCESS FOR ‘‘(ii) a summary of the disposition of such al- manner among all entities. NATIONAL TAXPAYER ADVOCATE. legations, including the outcome of any Depart- (c) PUBLIC AVAILABILITY OF SPECIFIED INFOR- (a) ONE ANNUAL REPORT.—Subparagraph (B) ment of Justice action and any monies paid as MATION.—Not later than 1 year after the date of of section 7803(c)(2) (relating to functions of Of- a settlement of such allegations.’’. the enactment of this Act, the Securities and Ex- fice) is amended— (b) CONFORMING AMENDMENTS.—Section change Commission and the Commissioner of In- (1) by striking all matter preceding subclause 7803(d) is amended by striking paragraph (2) ternal Revenue shall each report to the Com- (I) of clause (ii) and inserting the following: and by redesignating paragraph (3) as para- mittee on Finance of the Senate and the Com- ‘‘(B) ANNUAL REPORT.— graph (2). mittee on Ways and Means of the House of Rep- ‘‘(i) IN GENERAL.—Not later than December 31 (c) EFFECTIVE DATE.—The amendments made resentatives on proposals to expand the public of each calendar year, the National Taxpayer by this section shall take effect on the date of availability and clarity of information relating Advocate shall report to the Committee of Ways the enactment of this Act. to book and tax differences and Federal tax li- and Means of the House of Representatives and ability with respect to corporations. the Committee on Finance of the Senate on the SEC. 138. STUDY OF IRS ACCOUNTS RECEIVABLE. (a) STUDY.—The Secretary of the Treasury SEC. 141. REGULATION OF FEDERAL INCOME TAX objectives of the Office of the Taxpayer of Advo- RETURN PREPARERS, REFUND AN- cate for the fiscal year beginning in such cal- shall conduct a study of the provisions of the Internal Revenue Code of 1986, and the applica- TICIPATION LOAN PROVIDERS, AND endar year and the activities of such Office dur- PAYROLL AGENTS. tion of such provisions, regarding collection pro- ing the fiscal year ending during such calendar (a) IN GENERAL.—Chapter 77 (relating to mis- cedures to determine if impediments exist to the year. Any such report shall contain full and cellaneous provisions), as amended by this Act, efficient and timely collection of tax debts. Such substantive analysis, in addition to statistical is amended by adding at the end the following study shall include an examination of the ac- information, and shall—’’, new section: (2) by striking ‘‘clause (ii)’’ in clause (iv) and counts receivable inventory of the Internal Rev- enue Service. ‘‘SEC. 7530. FEDERAL INCOME TAX RETURN PRE- inserting ‘‘clause (i)’’, and PARERS, REFUND ANTICIPATION (b) REPORT.—Not later than 1 year after the (3) by redesignating clauses (iii) and (iv) as LOAN PROVIDERS, AND PAYROLL clauses (ii) and (iii), respectively. date of the enactment of this Act, the Secretary AGENTS. (b) ADDITIONAL REPORTS.—Section of the Treasury shall submit a report to the ‘‘(a) REGISTRATION.— 7803(c)(2)(C) (relating to other responsibilities) is Committee on Ways and Means of the House of ‘‘(1) IN GENERAL.—The Secretary shall pre- amended by striking ‘‘and’’ at the end of clause Representatives and the Committee on Finance scribe such regulations as may be necessary— (iii), by striking the period at the end of clause of the Senate, including the findings of the ‘‘(A) to require the registration of Federal in- (iv) and inserting ‘‘; and’’, and by adding at the study described in subsection (a) and such legis- come tax return preparers, refund anticipation end the following new clause: lative or administrative recommendations as the loan providers, and payroll agents with the Sec- ‘‘(v) at the discretion of the National Tax- Secretary deems appropriate to increase the effi- retary or the designee of the Secretary, payer Advocate, report at any time to the Com- cient and timely collection of tax debts. ‘‘(B) to prohibit the payment of a refund of mittee of Ways and Means of the House of Rep- SEC. 139. ELECTRONIC COMMERCE ADVISORY tax to a Federal income tax return preparer or resentatives and the Committee on Finance of GROUP. refund anticipation loan provider that is the re- the Senate on significant issues affecting tax- (a) IN GENERAL.—Section 2001(b)(2) of the In- sult of a tax return which is prepared by such payer rights.’’. ternal Revenue Service Restructuring and Re- preparer or provider which does not include the (c) EFFECTIVE DATES.— form Act of 1998 is amended by inserting ‘‘, and preparer’s or provider’s registration number, (1) ANNUAL REPORTS.—The amendments made at least 2 representatives from the consumer ad- and by subsection (a) shall apply to reports in cal- vocate community’’ after ‘‘industry’’. ‘‘(C) to require the posting of a resonable bond endar year 2005 and thereafter. (b) APPLICATION OF AMENDMENT.—The initial by each registered payroll agent. (2) ADDITIONAL REPORTS.—The amendments appointments in accordance with the amend- ‘‘(2) NO DISCIPLINARY ACTION.—The regula- made by subsection (b) shall take effect on the ment made by this section shall be made not tions under paragraph (1) shall require that an date of the enactment of this Act. later than the date which is 180 days after the applicant for registration must not have dem- SEC. 136. IRS FREE FILE PROGRAM. date of the enactment of this Act. onstrated any conduct that would warrant dis- (a) IN GENERAL.—The Commissioner of Inter- SEC. 140. STUDY ON MODIFICATIONS TO SCHED- ciplinary action under part 10 of title 31, Code nal Revenue shall require that a taxpayer must ULES L AND M–1. of Federal Regulations. provide an affirmative consent before such tax- (a) IN GENERAL.—Not later than 6 months ‘‘(3) BURDEN OF REGISTRATION.—In promul- payer may be solicited with respect to any prod- after the date of the enactment of this Act, the gating the regulations under paragraph (1), the uct or service by an entity participating in the Secretary of the Treasury shall report to the Secretary shall minimize the burden and cost on Internal Revenue Service Free File program. Committee on Finance of the Senate and the the registrant. Any request for such consent must be promi- Committee on Ways and Means of the House of ‘‘(b) EXAMINATION.—In promulgating the reg- nently displayed and clearly written, in large Representatives on proposals to modify tax ulations under subsection (a)— print, on any material relating to such program. schedules L and M–1 of Form 1120 to require the ‘‘(1) IN GENERAL.—The Secretary shall develop (b) EFFECTIVE DATE.—This section shall take disclosure of additional information, such as the a series of examinations designed to test the effect with respect to returns filed after Decem- items described in subsection (b). technical knowledge and competency of each ber 31, 2004. (b) ITEMS OF DISCLOSURE.—The items de- applicant for registration to prepare Federal tax SEC. 137. MODIFICATION OF TIGTA REPORTING scribed in this subsection is as follows: returns, including an examination testing REQUIREMENTS. (1) The parent company names and identifica- knowledge of individual income tax return prep- (a) IN GENERAL.—Paragraph (1) of section tion numbers for both tax and book purposes. aration, including the earned income tax credit 7803(d) (relating to additional duties of the (2) An asset reconciliation of consolidated under section 32. Treasury Inspector General for Tax Administra- book assets on the public financial disclosures ‘‘(2) INITIAL EXAMINATION.—The Secretary tion) is amended— with the consolidated tax return. shall require that each applicant for registration

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00131 Fmt 4624 Sfmt 6333 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6024 CONGRESSIONAL RECORD — SENATE May 20, 2004 pass an initial examination testing the appli- Revenue Code of 1986 with the return require- nating subclause (XI) as subclause (XII), and cant’s technical knowledge and competency to ments of section 6060 of such Code. by inserting after subclause (X) the following prepare individual and business Federal income (d) PUBLIC AWARENESS CAMPAIGN.— new subclause: tax returns. (1) IN GENERAL.—The Secretary of the Treas- ‘‘(XI) include a list of the factors taxpayers ‘‘(c) RULES OF CONDUCT.—All registrants shall ury shall conduct a public information and con- have raised to support their claims for offers-in- be subject to rules of conduct that are consistent sumer education campaign, utilizing paid adver- compromise relief, the number of such offers with the rules that govern any federally author- tising, to inform the public of the requirements submitted, accepted, and rejected, the number of ized tax practitioner within the meaning of sec- that Federal income tax return preparers (as de- such offers appealed, the period during which tion 7525(a)(3)(A). fined in section 7530(g) of the Internal Revenue review of such offers have remained pending, ‘‘(d) DISCLOSURE OF INFORMATION.—The Sec- Code of 1986) must sign the return prepared for and the efforts the Internal Revenue Service has retary shall provide guidance on the manner a fee and display notice of their registration made to correctly identify such offers, including and timing of disclosure to taxpayers of infor- under the regulations promulgated under sec- the training of employees in identifying and mation relating to fees and interest rates im- tion 7530 of such Code. evaluating such offers.’’. posed in connection with loans made to tax- (2) PUBLIC LIST.—The Secretary of the Treas- (2) EFFECTIVE DATE.—The amendment made payers by refund anticipation loan providers. ury shall maintain a public list (in print and by paragraph (1) shall apply to reports in cal- ‘‘(e) ANNUAL RENEWAL OF REGISTRATION.— electronic media, including Internet-based) of endar year 2005 and thereafter. ‘‘(1) IN GENERAL.—The regulations under sub- Federal income tax return preparers (as so de- Subtitle C—Other Provisions section (a) shall require an annual renewal of fined) who are so registered and whose registra- registration and shall set forth the manner in tion has been revoked. SEC. 151. PENALTY FOR FAILURE TO REPORT IN- TERESTS IN FOREIGN FINANCIAL AC- (3) NOTIFICATION.—The Secretary of the which a registered Federal income tax return COUNTS. Treasury shall notify any taxpayer if such tax- preparer, refund anticipation loan provider, or (a) IN GENERAL.—Section 5321(a)(5) of title 31, payer’s return was prepared by such an unreg- payroll agent must renew such registration. United States Code, is amended to read as fol- istered Federal income tax return preparer . ‘‘(2) ANNUAL EXAMINATIONS.—As part of the lows: (e) ADDITIONAL FUNDS AVAILABLE FOR COM- annual registration, such regulations shall re- ‘‘(5) FOREIGN FINANCIAL AGENCY TRANSACTION PLIANCE ACTIVITIES.—The Secretary of the quire that each registrant pass an annual re- VIOLATION.— Treasury may use any specifically appropriated fresher examination (including tax law up- ‘‘(A) PENALTY AUTHORIZED.—The Secretary of funds for earned income tax credit compliance dates). the Treasury may impose a civil money penalty to improve and expand enforcement of Federal ‘‘(f) FEES.— on any person who violates, or causes any vio- income tax preparers under the regulations pro- ‘‘(1) IN GENERAL.—The Secretary may require lation of, any provision of section 5314. mulgated under section 7530 of the Internal Rev- the payment of reasonable fees for registration ‘‘(B) AMOUNT OF PENALTY.— enue Code of 1986. and for renewal of registration under the regu- ‘‘(i) IN GENERAL.—Except as provided in sub- lations promulgated under subsection (a). (f) CLERICAL AMENDMENT.—The table of sections for chapter 77, as amended by this Act, is paragraph (C), the amount of any civil penalty ‘‘(2) PURPOSE OF FEES.—Any fees described in imposed under subparagraph (A) shall not ex- paragraph (1) shall be available without fiscal amended by adding at the end the following new item: ceed $5,000. year limitation to the Secretary for the purpose ‘‘(ii) REASONABLE CAUSE EXCEPTION.—No pen- of reimbursement of the costs of administering ‘‘Sec. 7530. Federal income tax return preparers alty shall be imposed under subparagraph (A) the requirements of the regulations. and refund anticipation loan pro- with respect to any violation if— ‘‘(g) FEDERAL INCOME TAX RETURN PRE- viders.’’. ‘‘(I) such violation was due to reasonable PARER.—For purposes of this section— (g) EFFECTIVE DATE.—The amendments made cause, and ‘‘(1) IN GENERAL.—The term ‘Federal income by this section shall take effect on the date of ‘‘(II) the amount of the transaction or the bal- tax return preparer’ means any individual who ance in the account at the time of the trans- is an income tax return preparer (within the the enactment of this Act. SEC. 142. JOINT TASK FORCE ON OFFERS-IN-COM- action was properly reported. meaning of section 7701(a)(36)) who prepares not ‘‘(C) WILLFUL VIOLATIONS.—In the case of less than 5 returns of tax imposed by subtitle A PROMISE. (a) IN GENERAL.—The Secretary of the Treas- any person willfully violating, or willfully caus- or claims for refunds of tax imposed by subtitle ing any violation of, any provision of section A per taxable year. ury shall establish a joint task force— (1) to review the Internal Revenue Service’s 5314— ‘‘(2) EXCEPTION.—Such term shall not include determinations with respect to offers which raise ‘‘(i) the maximum penalty under subpara- a federally authorized tax practitioner (as de- graph (B)(i) shall be increased to the greater fined in section 7525(a)(3)(A). equitable, public policy, or economic hardship grounds for compromise of a tax liability under of— ‘‘(h) REFUND ANTICIPATION LOAN PROVIDER.— section 7122 of the Internal Revenue Code of ‘‘(I) $25,000, or For purposes of this section, the term ‘refund ‘‘(II) the amount (not exceeding $100,000) de- anticipation loan provider’ means a person who 1986, (2) to review the extent to which the Internal termined under subparagraph (D), and makes a loan of money or of any other thing of Revenue Service has used its authority to re- ‘‘(ii) subparagraph (B)(ii) shall not apply. value to a taxpayer in connection with the tax- solve longstanding cases by forgoing penalties ‘‘(D) AMOUNT.—The amount determined under payer’s anticipated receipt of a Federal tax re- and interest which have accumulated as a result this subparagraph is— fund.’’. of delay in determining the taxpayer’s liability, ‘‘(i) in the case of a violation involving a (b) PROHIBITION.— (3) to provide recommendations as to whether transaction, the amount of the transaction, or (1) IN GENERAL.—Section 6695 (relating to the Internal Revenue Service’s evaluation of of- ‘‘(ii) in the case of a violation involving a fail- other assessable penalties with respect to the fers-in-compromise should include— ure to report the existence of an account or any preparation of income tax returns for other per- (A) the taxpayer’s compliance history, identifying information required to be provided sons) is amended by adding at the end the fol- (B) errors by the Internal Revenue Service with respect to an account, the balance in the lowing new subsection: with respect to the underlying tax, account at the time of the violation.’’. ‘‘(h) ACTIONS ON A TAXPAYER’S BEHALF BY A (C) wrongful acts by a third party which gave (b) EFFECTIVE DATE.—The amendment made NON-REGISTERED PERSON.—Any person not reg- rise to the liability, and by this section shall apply to violations occur- istered pursuant to the regulations promulgated (D) whether the taxpayer has made payments ring after the date of the enactment of this Act. by the Secretary under section 7530 who— on the liability, and ‘‘(1) prepares a tax return for another tax- SEC. 152. REPEAL OF APPLICATION OF BELOW- (4) to annually report to the Committee on Fi- MARKET LOAN RULES TO AMOUNTS payer, or nance of the Senate and the Committee on Ways PAID TO CERTAIN CONTINUING ‘‘(2) provides a loan of money or of any other and Means of the House of Representatives (be- CARE FACILITIES. thing of value to a taxpayer in connection with ginning in 2005) regarding such review and rec- (a) IN GENERAL.—Section 7872(c)(1) (relating the taxpayer’s anticipated receipt of a Federal ommendations. to below-market loans to which section applies) tax refund, (b) MEMBERS OF JOINT TASK FORCE.—The is amended— shall be subject to a $500 penalty for each inci- membership of the joint task force under sub- (1) by striking subparagraph (F), and dent of noncompliance.’’. section (a) shall consist of 1 representative each (2) by striking ‘‘(C), or (F)’’ in subparagraph (2) USE OF PENALTIES.—There is authorized to from the Department of the Treasury, the Inter- (E) and inserting ‘‘or (C)’’. be appropriated and is appropriated to the Sec- nal Revenue Service Oversight Board, the Office (b) FULL EXCEPTION.—Section 7872(g) (relat- retary of the Treasury for each fiscal year for of the Chief Counsel for the Internal Revenue ing to exception for certain loans to qualified the administration of the requirements of the Service, the Office of the Taxpayer Advocate, continuing care facilities) is amended— regulations promulgated under section 7530 of the Office of Appeals, and the division of the (1) by striking ‘‘made by a lender to a quali- the Internal Revenue Code of 1986 an amount Internal Revenue Service charged with oper- fied continuing care facility pursuant to a con- equal to the penalties imposed under section ating the offer-in-compromise program. tinuing care contract’’ in paragraph (1) and in- 6695(h) of such Code for the preceding fiscal (c) REPORT OF NATIONAL TAXPAYER ADVO- serting ‘‘owed by a facility which on the last year. CATE.— day of such year is a qualified continuing care (c) COORDINATION WITH SECTION 6060(a).— (1) IN GENERAL.—Clause (i) of section facility, if such loan was made pursuant to a The Secretary of the Treasury shall coordinate 7803(c)(2)(B) (relating to annual reports), as continuing care contract and’’, the registration required under the regulations amended by this Act, is amended by striking (2) by striking ‘‘increased personal care serv- promulgated under section 7530 of the Internal ‘‘and’’ at the end of subclause (X), by redesig- ices or’’ in paragraph (3)(C),

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(3) by adding at the end of paragraph (3) the ‘‘(b) AMOUNT OF UNDERPAYMENT; UNDER- ANCE ON WRITTEN STATEMENTS OF THE IRS.— following new flush sentence: PAYMENT RATE.—For purposes of subsection Subsection (f) of section 6404 is amended— ‘‘The Secretary shall issue guidance which lim- (a)— (1) in the subsection heading, by striking its such term to contracts which provide to an ‘‘(1) AMOUNT.—The amount of the under- ‘‘PENALTY OR ADDITION’’ and inserting ‘‘INTER- individual or individual’s spouse only facilities, payment on any day shall be the excess of— EST, PENALTY, OR ADDITION’’; and care, and services described in this paragraph ‘‘(A) the sum of the required installments for (2) in paragraph (1) and in subparagraph (B) which are customarily offered by continuing the taxable year the due dates for which are on of paragraph (2), by striking ‘‘penalty or addi- care facilities.’’, or before such day, over tion’’ and inserting ‘‘interest, penalty, or addi- (4) by inserting ‘‘independent living unit’’ ‘‘(B) the sum of the amounts (if any) of esti- tion’’. after ‘‘all of the’’ in paragraph (4)(A)(ii), mated tax payments made on or before such day (c) EFFECTIVE DATE.—The amendments made (5) by striking paragraphs (2) and (5), on such required installments. by this section shall apply with respect to inter- (6) by redesignating paragraphs (3) and (4) as ‘‘(2) DETERMINATION OF UNDERPAYMENT est accruing on or after the date of the enact- paragraphs (2) and (3), respectively, and RATE.— ment of this Act. (7) by striking ‘‘CERTAIN’’ in the heading ‘‘(A) IN GENERAL.—The underpayment rate SEC. 205. DEPOSITS MADE TO SUSPEND RUNNING thereof. with respect to any day in an installment un- OF INTEREST ON POTENTIAL UN- (c) EFFECTIVE DATE.—The amendments made derpayment period shall be the underpayment DERPAYMENTS. by this section shall apply to calendar years berate established under section 6621 for the first (a) IN GENERAL.—Subchapter A of chapter 67 ginning after 2004. day of the calendar quarter in which such in- (relating to interest on underpayments) is SEC. 153. PUBLIC SUPPORT BY INDIAN TRIBAL stallment underpayment period begins. amended by adding at the end the following GOVERNMENTS. ‘‘(B) INSTALLMENT UNDERPAYMENT PERIOD.— new section: (a) IN GENERAL.—Section 7871(a) (relating to For purposes of subparagraph (A), the term ‘in- ‘‘SEC. 6603. DEPOSITS MADE TO SUSPEND RUN- Indian tribal governments treated as States for stallment underpayment period’ means the pe- NING OF INTEREST ON POTENTIAL certain purposes) is amended by striking ‘‘and’’ riod beginning on the day after the due date for UNDERPAYMENTS, ETC. at the end of subparagraph (C) of paragraph a required installment and ending on the due ‘‘(a) AUTHORITY TO MAKE DEPOSITS OTHER (6), by striking the period at the end of subpara- date for the subsequent required installment (or THAN AS PAYMENT OF TAX.—A taxpayer may graph (B) of paragraph (7) and inserting ‘‘; in the case of the 4th required installment, the make a cash deposit with the Secretary which and’’, and by adding at the end the following 15th day of the 4th month following the close of may be used by the Secretary to pay any tax im- new paragraph: a taxable year). posed under subtitle A or B or chapter 41, 42, 43, ‘‘(8) for purposes of— ‘‘(C) DAILY RATE.—The rate determined under or 44 which has not been assessed at the time of ‘‘(A) determining support of an organization subparagraph (A) shall be applied on a daily the deposit. Such a deposit shall be made in described in section 170(b)(1)(A)(vi), and basis and shall be based on the assumption of such manner as the Secretary shall prescribe. ‘‘(B) determining whether an organization is 365 days in a calendar year. ‘‘(b) NO INTEREST IMPOSED.—To the extent described in paragraph (1) or (2) of section ‘‘(3) TERMINATION OF ESTIMATED TAX UNDER- that such deposit is used by the Secretary to pay 509(a) for purposes of section 509(a)(3).’’. PAYMENT.—No day after the end of the install- tax, for purposes of section 6601 (relating to in- (b) EFFECTIVE DATE.—The amendments made ment underpayment period for the 4th required terest on underpayments), the tax shall be treat- by this section shall apply with respect to— installment specified in paragraph (2)(B) for a ed as paid when the deposit is made. (1) support received before, on, or after the taxable year shall be treated as a day of under- ‘‘(c) RETURN OF DEPOSIT.—Except in a case date of the enactment of this Act, and payment with respect to such taxable year.’’. where the Secretary determines that collection (2) the determination of the status of any or- (c) EFFECTIVE DATE.—The amendments made of tax is in jeopardy, the Secretary shall return ganization with respect to any taxable year be- by this section shall apply to estimated tax pay- to the taxpayer any amount of the deposit (to ginning after such date of enactment. ments made for taxable years beginning after the extent not used for a payment of tax) which SEC. 154. PAYROLL AGENTS SUBJECT TO PEN- December 31, 2004. the taxpayer requests in writing. ALTY FOR FAILURE TO COLLECT SEC. 202. CORPORATE ESTIMATED TAX. ‘‘(d) PAYMENT OF INTEREST.— AND PAY OVER TAX, OR ATTEMPT TO (a) INCREASE IN SMALL TAX AMOUNT EXCEP- ‘‘(1) IN GENERAL.—For purposes of section 6611 EVADE OR DEFEAT TAX. TION.—Section 6655(f) (relating to exception (relating to interest on overpayments), a deposit (a) IN GENERAL.—Section 6672(a) is amended where tax is small amount) is amended by strik- which is returned to a taxpayer shall be treated by inserting ‘‘, including any payroll agent,’’ ing ‘‘$500’’ and inserting ‘‘$1,000’’. as a payment of tax for any period to the extent after ‘‘Any person’’. (b) EFFECTIVE DATE.—The amendment made (and only to the extent) attributable to a disput- (b) PENALTY NOT SUBJECT TO DISCHARGE IN by this section shall apply to taxable years be- able tax for such period. Under regulations pre- BANKRUPTCY.—Section 6672(a) is amended by ginning after December 31, 2004. scribed by the Secretary, rules similar to the adding at the end the following new sentence: rules of section 6611(b)(2) shall apply. ‘‘Notwithstanding any other provision of law, SEC. 203. INCREASE IN LARGE CORPORATION THRESHOLD FOR ESTIMATED TAX ‘‘(2) DISPUTABLE TAX.— no penalty imposed under this section may be PAYMENTS. ‘‘(A) IN GENERAL.—For purposes of this sec- discharged in bankruptcy.’’. (a) IN GENERAL.—Section 6655(g)(2) (defining tion, the term ‘disputable tax’ means the (c) CONSTRUCTION.—The amendment made by large corporation) is amended— amount of tax specified at the time of the de- subsection (a) shall not be construed to create (1) by striking ‘‘$1,000,000’’ in subparagraph posit as the taxpayer’s reasonable estimate of any inference with respect to the interpretation (A) and inserting ‘‘the applicable amount’’, the maximum amount of any tax attributable to of section 6672 of the Internal Revenue Code of (2) by striking ‘‘the $1,000,000 amount speci- disputable items. 1986 as such section was in effect on the day be- fied in subparagraph (A)’’ in subparagraph ‘‘(B) SAFE HARBOR BASED ON 30-DAY LETTER.— fore the date of the enactment of this Act. (B)(ii) and inserting ‘‘the applicable amount’’, In the case of a taxpayer who has been issued (d) EFFECTIVE DATE.—The amendments made (3) by redesignating subparagraph (B) as sub- a 30-day letter, the maximum amount of tax by this section shall apply to failures occurring paragraph (C), and under subparagraph (A) shall not be less than after the date of the enactment of this Act. (4) by inserting after subparagraph (A) the the amount of the proposed deficiency specified TITLE II—REFORM OF PENALTY AND following new subparagraph: in such letter. INTEREST ‘‘(B) APPLICABLE AMOUNT.—For purposes of ‘‘(3) OTHER DEFINITIONS.—For purposes of SEC. 201. INDIVIDUAL ESTIMATED TAX. this paragraph, the applicable amount is paragraph (2)— (a) INCREASE IN EXCEPTION FOR INDIVIDUALS $1,000,000 increased (but not above $1,500,000) by ‘‘(A) DISPUTABLE ITEM.—The term ‘disputable OWING SMALL AMOUNT OF TAX.—Section $50,000 for each taxable year beginning after item’ means any item of income, gain, loss, de- 6654(e)(1) (relating to exception where tax is 2004.’’. duction, or credit if the taxpayer— small amount) is amended by striking ‘‘$1,000’’ (b) EFFECTIVE DATE.—The amendments made ‘‘(i) has a reasonable basis for its treatment of and inserting ‘‘$2,000’’. by this section shall apply to taxable years be- such item, and (b) COMPUTATION OF ADDITION TO TAX.—Sub- ginning after December 31, 2004. ‘‘(ii) reasonably believes that the Secretary sections (a) and (b) of section 6654 (relating to SEC. 204. ABATEMENT OF INTEREST. also has a reasonable basis for disallowing the failure by individual to pay estimated taxes) are (a) ABATEMENT OF INTEREST FOR PERIODS AT- taxpayer’s treatment of such item. amended to read as follows: TRIBUTABLE TO ANY UNREASONABLE IRS ERROR ‘‘(B) 30-DAY LETTER.—The term ‘30-day letter’ ‘‘(a) ADDITION TO THE TAX.— OR DELAY.—Section 6404(e)(1) is amended— means the first letter of proposed deficiency ‘‘(1) IN GENERAL.—Except as otherwise pro- (1) by striking ‘‘in performing a ministerial or which allows the taxpayer an opportunity for vided in this section, in the case of any under- managerial act’’ in subparagraphs (A) and (B), administrative review in the Internal Revenue payment of estimated tax by an individual for a (2) by striking ‘‘deficiency’’ in subparagraph Service Office of Appeals. taxable year, there shall be added to the tax (A) and inserting ‘‘underpayment of any tax, ‘‘(4) RATE OF INTEREST.—The rate of interest under chapters 1 and 2 for the taxable year the addition to tax, or penalty imposed by this allowable under this subsection shall be the amount determined under paragraph (2) for title’’, and Federal short-term rate determined under sec- each day of underpayment. (3) by striking ‘‘tax described in section tion 6621(b), compounded daily. ‘‘(2) AMOUNT.—The amount of the addition to 6212(a)’’ in subparagraph (B) and inserting ‘‘(e) USE OF DEPOSITS.— tax for any day shall be the product of the un- ‘‘tax, addition to tax, or penalty imposed by this ‘‘(1) PAYMENT OF TAX.—Except as otherwise derpayment rate established under subsection title’’. provided by the taxpayer, deposits shall be (b)(2) multiplied by the amount of the under- (b) ABATEMENT OF INTEREST TO EXTENT IN- treated as used for the payment of tax in the payment. TEREST IS ATTRIBUTABLE TO TAXPAYER RELI- order deposited.

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‘‘(2) RETURNS OF DEPOSITS.—Deposits shall be ‘‘(B) contains information that on its face in- (D) by inserting after subparagraph (A)(ii) (as treated as returned to the taxpayer on a last-in, dicates that the self-assessment is substantially so redesignated) the following: first-out basis.’’. incorrect; and ‘‘(B) the issue meets the requirement of clause (b) CLERICAL AMENDMENT.—The table of sec- ‘‘(2) the conduct referred to in paragraph (i) or (ii) of section 6702(b)(2)(A).’’. tions for subchapter A of chapter 67 is amended (1)— (3) STATEMENT OF GROUNDS.—Section by adding at the end the following new item: ‘‘(A) is based on a position which the Sec- 6330(b)(1) is amended by striking ‘‘under sub- retary has identified as frivolous under subsection (a)(3)(B)’’ and inserting ‘‘in writing ‘‘Sec. 6603. Deposits made to suspend running of section (c), or under subsection (a)(3)(B) and states the interest on potential underpay- ‘‘(B) reflects a desire to delay or impede the grounds for the requested hearing’’. ments, etc.’’. administration of Federal tax laws. (c) TREATMENT OF FRIVOLOUS REQUESTS FOR (c) EFFECTIVE DATE.— ‘‘(b) CIVIL PENALTY FOR SPECIFIED FRIVOLOUS HEARINGS UPON FILING OF NOTICE OF LIEN.— (1) IN GENERAL.—The amendments made by SUBMISSIONS.— Section 6320 is amended— this section shall apply to deposits made after ‘‘(1) IMPOSITION OF PENALTY.—Except as pro- (1) in subsection (b)(1), by striking ‘‘under the date which is 1 year after the date of the en- vided in paragraph (3), any person who submits subsection (a)(3)(B)’’ and inserting ‘‘in writing actment of this Act. a specified frivolous submission shall pay a pen- under subsection (a)(3)(B) and states the (2) COORDINATION WITH DEPOSITS MADE UNDER alty of $5,000. grounds for the requested hearing’’, and REVENUE PROCEDURE 84–58.—In the case of an ‘‘(2) SPECIFIED FRIVOLOUS SUBMISSION.—For (2) in subsection (c), by striking ‘‘and (e)’’ amount held by the Secretary of the Treasury or purposes of this section— and inserting ‘‘(e), and (g)’’. the Secretary’s delegate on the date which is 1 ‘‘(A) SPECIFIED FRIVOLOUS SUBMISSION.—The (d) TREATMENT OF FRIVOLOUS APPLICATIONS year after the date of the enactment of this Act term ‘specified frivolous submission’ means a FOR OFFERS-IN-COMPROMISE AND INSTALLMENT as a deposit in the nature of a cash bond deposit specified submission if any portion of such sub- AGREEMENTS.—Section 7122 is amended by add- pursuant to Revenue Procedure 84–58, the date mission— ing at the end the following new subsection: that the taxpayer identifies such amount as a ‘‘(i) is based on a position which the Secretary ‘‘(e) FRIVOLOUS SUBMISSIONS, ETC.—Notwith- deposit made pursuant to section 6603 of the In- has identified as frivolous under subsection (c), standing any other provision of this section, if ternal Revenue Code (as added by this Act) or the Secretary determines that any portion of an ‘‘(ii) reflects a desire to delay or impede the shall be treated as the date such amount is de- application for an offer-in-compromise or in- administration of Federal tax laws. posited for purposes of such section 6603. stallment agreement submitted under this sec- ‘‘(B) SPECIFIED SUBMISSION.—The term ‘speci- SEC. 206. FREEZE OF PROVISIONS REGARDING tion or section 6159 meets the requirement of fied submission’ means— clause (i) or (ii) of section 6702(b)(2)(A), then the SUSPENSION OF INTEREST WHERE ‘‘(i) a request for a hearing under— SECRETARY FAILS TO CONTACT TAX- Secretary may treat such portion as if it were ‘‘(I) section 6320 (relating to notice and oppor- PAYER. never submitted and such portion shall not be tunity for hearing upon filing of notice of lien), (a) IN GENERAL.—Section 6404(g) (relating to subject to any further administrative or judicial or suspension of interest and certain penalties ‘‘(II) section 6330 (relating to notice and op- review.’’. where Secretary fails to contact taxpayer) is LERICAL AMENDMENT.—The table of sec- portunity for hearing before levy), and (e) C amended by striking ‘‘1-year period (18-month ‘‘(ii) an application under— tions for part I of subchapter B of chapter 68 is period in the case of taxable years beginning be- ‘‘(I) section 6159 (relating to agreements for amended by striking the item relating to section fore January 1, 2004)’’ both places it appears payment of tax liability in installments), 6702 and inserting the following new item: and inserting ‘‘18-month period’’. ‘‘(II) section 7122 (relating to compromises), or ‘‘Sec. 6702. Frivolous tax submissions.’’. (b) EXCEPTION FOR GROSS MISSTATEMENT.— ‘‘(III) section 7811 (relating to taxpayer assist- Section 6404(g)(2) (relating to exceptions) is ance orders). (f) EFFECTIVE DATE.—The amendments made amended by striking ‘‘or’’ at the end of subpara- ‘‘(3) OPPORTUNITY TO WITHDRAW SUBMIS- by this section shall apply to submissions made graph (C), by redesignating subparagraph (D) SION.—If the Secretary provides a person with and issues raised after the date on which the as subparagraph (E), and by inserting after sub- notice that a submission is a specified frivolous Secretary first prescribes a list under section paragraph (C) the following new subparagraph: submission and such person withdraws such 6702(c) of the Internal Revenue Code of 1986, as ‘‘(D) any interest, penalty, addition to tax, or submission within 30 days after such notice, the amended by subsection (a). additional amount with respect to any gross penalty imposed under paragraph (1) shall not SEC. 209. EXTENSION OF NOTICE REQUIREMENTS misstatement; or’’. apply with respect to such submission. WITH RESPECT TO INTEREST AND (c) EXCEPTION FOR REPORTABLE AND LISTED ‘‘(c) LISTING OF FRIVOLOUS POSITIONS.—The PENALTY CALCULATIONS. TRANSACTIONS.—Section 6404(g)(2) (relating to Secretary shall prescribe (and periodically re- Sections 3306(c) and 3308(c) of the Internal exceptions), as amended by subsection (b), is vise) a list of positions which the Secretary has Revenue Service Restructuring and Reform Act amended by striking ‘‘or’’ at the end of subpara- identified as being frivolous for purposes of this of 1998 are each amended by inserting ‘‘and dur- graph (D), by redesignating subparagraph (E) subsection. The Secretary shall not include in ing the period beginning on the date of the en- as subparagraph (F), and by inserting after sub- such list any position that the Secretary deter- actment of the Tax Administration Good Gov- paragraph (D) the following new subparagraph: mines meets the requirement of section ernment Act, and ending before July 1, 2006,’’ ‘‘(E) any interest, penalty, addition to tax, or 6662(d)(2)(B)(ii)(II). after ‘‘July 1, 2003,’’. additional amount with respect to any report- ‘‘(d) REDUCTION OF PENALTY.—The Secretary SEC. 210. EXPANSION OF INTEREST NETTING. able transaction or listed transaction (as defined may reduce the amount of any penalty imposed (a) IN GENERAL.—Subsection (d) of section in 6707A(c)); or’’. under this section if the Secretary determines 6621 (relating to elimination of interest on over- (d) EFFECTIVE DATES.— that such reduction would promote compliance lapping periods of tax overpayments and under- (1) IN GENERAL.—Except as provided in para- with and administration of the Federal tax payments) is amended by adding at the end the graph (2), the amendments made by this section laws. following: ‘‘Solely for purposes of the preceding shall apply to taxable years beginning after De- ‘‘(e) PENALTIES IN ADDITION TO OTHER PEN- sentence, section 6611(e) shall not apply.’’. cember 31, 2003. ALTIES.—The penalties imposed by this section (b) EFFECTIVE DATE.—The amendment made (2) EXCEPTION FOR REPORTABLE OR LISTED shall be in addition to any other penalty pro- by this section shall apply to interest accrued TRANSACTIONS.—The amendments made by sub- vided by law.’’. after December 31, 2010. section (c) shall apply with respect to interest (b) TREATMENT OF FRIVOLOUS REQUESTS FOR TITLE III—UNITED STATES TAX COURT accruing after May 5, 2004. HEARINGS BEFORE LEVY.— MODERNIZATION (1) FRIVOLOUS REQUESTS DISREGARDED.—Sec- SEC. 207. CLARIFICATION OF APPLICATION OF Subtitle A—Tax Court Procedure FEDERAL TAX DEPOSIT PENALTY. tion 6330 (relating to notice and opportunity for Nothing in section 6656 of the Internal Rev- hearing before levy) is amended by adding at SEC. 301. JURISDICTION OF TAX COURT OVER COLLECTION DUE PROCESS CASES. enue Code of 1986 shall be construed to permit the end the following new subsection: (a) IN GENERAL.—Paragraph (1) of section the percentage specified in subsection ‘‘(g) FRIVOLOUS REQUESTS FOR HEARING, 6330(d) (relating to proceeding after hearing) is (b)(1)(A)(iii) thereof to apply other than in a ETC.—Notwithstanding any other provision of amended to read as follows: case where the failure is for more than 15 days. this section, if the Secretary determines that any portion of a request for a hearing under ‘‘(1) JUDICIAL REVIEW OF DETERMINATION.— SEC. 208. FRIVOLOUS TAX RETURNS AND SUBMIS- this section or section 6320 meets the require- The person may, within 30 days of a determina- SIONS. ment of clause (i) or (ii) of section 6702(b)(2)(A), tion under this section, appeal such determina- (a) CIVIL PENALTIES.—Section 6702 is amended then the Secretary may treat such portion as if tion to the Tax Court (and the Tax Court shall to read as follows: it were never submitted and such portion shall have jurisdiction with respect to such matter).’’. ‘‘SEC. 6702. FRIVOLOUS TAX SUBMISSIONS. not be subject to any further administrative or (b) EFFECTIVE DATE.—The amendment made ‘‘(a) CIVIL PENALTY FOR FRIVOLOUS TAX RE- judicial review.’’. by this section shall apply to determinations TURNS.—A person shall pay a penalty of $5,000 (2) PRECLUSION FROM RAISING FRIVOLOUS made after the date which is 60 days after the if— ISSUES AT HEARING.—Section 6330(c)(4) is amend- date of the enactment of this Act. ‘‘(1) such person files what purports to be a ed— SEC. 302. AUTHORITY FOR SPECIAL TRIAL return of a tax imposed by this title but which— (A) by striking ‘‘(A)’’ and inserting ‘‘(A)(i)’’; JUDGES TO HEAR AND DECIDE CER- ‘‘(A) does not contain information on which (B) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’; TAIN EMPLOYMENT STATUS CASES. the substantial correctness of the self-assessment (C) by striking the period at the end of the (a) IN GENERAL.—Section 7443A(b) (relating to may be judged, or first sentence and inserting ‘‘; or’’; and proceedings which may be assigned to special

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00134 Fmt 4624 Sfmt 6333 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6027 trial judges) is amended by striking ‘‘and’’ at Code. To the maximum extent feasible, the Tax Subtitle B—Tax Court Pension and the end of paragraph (4), by redesignating para- Court shall compensate employees at rates con- Compensation graph (5) as paragraph (6), and by inserting sistent with those for employees holding com- SEC. 311. ANNUITIES FOR SURVIVORS OF TAX after paragraph (4) the following new para- parable positions in the judicial branch. COURT JUDGES WHO ARE ASSAS- graph: ‘‘(5) PROGRAMS.—The Tax Court may estab- SINATED. ‘‘(5) any proceeding under section 7436(c), lish programs for employee evaluations, incen- (a) ELIGIBILITY IN CASE OF DEATH BY ASSAS- and’’. tive awards, flexible work schedules, premium SINATION.—Subsection (h) of section 7448 (relat- (b) CONFORMING AMENDMENT.—Section pay, and resolution of employee grievances. ing to annuities to surviving spouses and de- 7443A(c) is amended by striking ‘‘or (4)’’ and in- ‘‘(6) DISCRIMINATION PROHIBITED.—The Tax pendent children of judges) is amended to read serting ‘‘(4), or (5)’’. Court shall— as follows: ‘‘(h) ENTITLEMENT TO ANNUITY.— (c) EFFECTIVE DATE.—The amendments made ‘‘(A) prohibit discrimination on the basis of ‘‘(1) IN GENERAL.— by this section shall apply to any proceeding race, color, religion, age, sex, national origin, under section 7436(c) of the Internal Revenue ‘‘(A) ANNUITY TO SURVIVING SPOUSE.—If a political affiliation, marital status, or handi- judge described in paragraph (2) is survived by Code of 1986 with respect to which a decision capping condition; and has not become final (as determined under sec- a surviving spouse but not by a dependent child, ‘‘(B) promulgate procedures for resolving com- there shall be paid to such surviving spouse an tion 7481 of such Code) before the date of the plaints of discrimination by employees and ap- enactment of this Act. annuity beginning with the day of the death of plicants for employment. the judge or following the surviving spouse’s at- SEC. 303. CONFIRMATION OF AUTHORITY OF TAX ‘‘(7) EXPERTS AND CONSULTANTS.—The Tax COURT TO APPLY DOCTRINE OF EQ- tainment of the age of 50 years, whichever is the UITABLE RECOUPMENT. Court may procure the services of experts and later, in an amount computed as provided in consultants under section 3109 of title 5, United (a) CONFIRMATION OF AUTHORITY OF TAX subsection (m). States Code. ‘‘(B) ANNUITY TO CHILD.—If such a judge is COURT TO APPLY DOCTRINE OF EQUITABLE IGHTS TO CERTAIN APPEALS RESERVED survived by a surviving spouse and a dependent RECOUPMENT.—Section 6214(b) (relating to juris- ‘‘(8) R .— diction over other years and quarters) is amend- Notwithstanding any other provision of law, an child or children, there shall be paid to such ed by adding at the end the following new sen- individual who is an employee of the Tax Court surviving spouse an immediate annuity in an tence: ‘‘Notwithstanding the preceding sentence, on the day before the effective date of this sub- amount computed as provided in subsection (m), the Tax Court may apply the doctrine of equi- section and who, as of that day, was entitled and there shall also be paid to or on behalf of table recoupment to the same extent that it is to— each such child an immediate annuity equal to available in civil tax cases before the district ‘‘(A) appeal a reduction in grade or removal the lesser of— ‘‘(i) 10 percent of the average annual salary of courts of the United States and the United to the Merit Systems Protection Board under such judge (determined in accordance with sub- States Court of Federal Claims.’’. chapter 43 of title 5, United States Code, ‘‘(B) appeal an adverse action to the Merit section (m)), or (b) EFFECTIVE DATE.—The amendment made ‘‘(ii) 20 percent of such average annual sal- by this section shall apply to any action or pro- Systems Protection Board under chapter 75 of title 5, United States Code, ary, divided by the number of such children. ceeding in the United States Tax Court with re- ‘‘(C) ANNUITY TO SURVIVING DEPENDENT CHIL- ‘‘(C) appeal a prohibited personnel practice spect to which a decision has not become final DREN.—If such a judge leaves no surviving (as determined under section 7481 of the Inter- described under section 2302(b) of title 5, United spouse but leaves a surviving dependent child or nal Revenue Code of 1986) as of the date of the States Code, to the Merit Systems Protection children, there shall be paid to or on behalf of enactment of this Act. Board under chapter 77 of that title, each such child an immediate annuity equal to SEC. 304. TAX COURT FILING FEE IN ALL CASES ‘‘(D) make an allegation of a prohibited per- the lesser of— COMMENCED BY FILING PETITION. sonnel practice described under section 2302(b) ‘‘(i) 20 percent of the average annual salary of (a) IN GENERAL.—Section 7451 (relating to fee of title 5, United States Code, with the Office of such judge (determined in accordance with sub- for filing a Tax Court petition) is amended by Special Counsel under chapter 12 of that title section (m)), or striking all that follows ‘‘petition’’ and inserting for action in accordance with that chapter, or ‘‘(ii) 40 percent of such average annual sal- a period. ‘‘(E) file an appeal with the Equal Employ- ary, divided by the number of such children. (b) EFFECTIVE DATE.—The amendment made ment Opportunity Commission under part 1614 ‘‘(2) COVERED JUDGES.—Paragraph (1) applies by this section shall take effect on the date of of title 29 of the Code of Federal Regulations, to any judge electing under subsection (b)— ‘‘(A) who dies while a judge after having ren- the enactment of this Act. shall be entitled to file such appeal or make dered at least 5 years of civilian service com- SEC. 305. AMENDMENTS TO APPOINT EMPLOYEES. such an allegation so long as the individual re- puted as prescribed in subsection (n), for the (a) IN GENERAL.—Subsection (a) of section mains an employee of the Tax Court. last 5 years of which the salary deductions pro- 7471 (relating to Tax Court employees) is amend- ‘‘(9) COMPETITIVE STATUS.—Notwithstanding ed to read as follows: vided for by subsection (c)(1) or the deposits re- any other provision of law, any employee of the quired by subsection (d) have actually been ‘‘(a) APPOINTMENT AND COMPENSATION.— Tax Court who has completed at least 1 year of made or the salary deductions required by the ‘‘(1) CLERK.—The Tax Court may appoint a continuous service under a non-temporary ap- civil service retirement laws have actually been clerk without regard to the provisions of title 5, pointment with the Tax Court acquires a com- United States Code, governing appointments in made, or petitive status for appointment to any position ‘‘(B) who dies by assassination after having the competitive service. The clerk shall serve at in the competitive service for which the em- rendered less than 5 years of civilian service the pleasure of the Tax Court. ployee possesses the required qualifications. computed as prescribed in subsection (n) if, for ‘‘(2) LAW CLERKS AND SECRETARIES.— ‘‘(10) MERIT SYSTEM PRINCIPLES; PROHIBITED the period of such service, the salary deductions ‘‘(A) IN GENERAL.—The judges and special PERSONNEL PRACTICES; AND PREFERENCE ELIGI- provided for by subsection (c)(1) or the deposits trial judges of the Tax Court may appoint law BLES.—Any personnel management system of required by subsection (d) have actually been clerks and secretaries, in such numbers as the the Tax Court shall— made. Tax Court may approve, without regard to the ‘‘(A) include the principles set forth in section ‘‘(3) TERMINATION OF ANNUITY.— provisions of title 5, United States Code, gov- 2301(b) of title 5, United States Code; ‘‘(A) IN THE CASE OF A SURVIVING SPOUSE.— erning appointments in the competitive service. ‘‘(B) prohibit personnel practices prohibited The annuity payable to a surviving spouse Any such law clerk or secretary shall serve at under section 2302(b) of title 5, United States under this subsection shall be terminable upon the pleasure of the appointing judge. Code; and such surviving spouse’s death or such surviving ‘‘(B) EXEMPTION FROM FEDERAL LEAVE PROVI- ‘‘(C) in the case of any individual who would spouse’s remarriage before attaining age 55. SIONS.—A law clerk appointed under this sub- be a preference eligible in the executive branch, ‘‘(B) IN THE CASE OF A CHILD.—The annuity section shall be exempt from the provisions of the Tax Court will provide preference for that payable to a child under this subsection shall be subchapter I of chapter 63 of title 5, United individual in a manner and to an extent con- terminable upon (i) the child attaining the age States Code. Any unused sick leave or annual sistent with preference accorded to preference of 18 years, (ii) the child’s marriage, or (iii) the leave standing to the employee’s credit as of the eligibles in the executive branch.’’. child’s death, whichever first occurs, except that effective date of this subsection shall remain if such child is incapable of self-support by rea- credited to the employee and shall be available (b) EFFECTIVE DATE.—The amendments made by this section shall take effect on the date the son of mental or physical disability the child’s to the employee upon separation from the Fed- annuity shall be terminable only upon death, eral Government. United States Tax Court adopts a personnel management system after the date of the enact- marriage, or recovery from such disability. ‘‘(3) OTHER EMPLOYEES.—The Tax Court may ‘‘(C) IN THE CASE OF A DEPENDENT CHILD ment of this Act. appoint necessary employees without regard to AFTER DEATH OF SURVIVING SPOUSE.—In case of the provisions of title 5, United States Code, SEC. 306. EXPANDED USE OF TAX COURT PRAC- the death of a surviving spouse of a judge leav- governing appointments in the competitive serv- TICE FEE FOR PRO SE TAXPAYERS. ing a dependent child or children of the judge ice. Such employees shall be subject to removal (a) IN GENERAL.—Section 7475(b) (relating to surviving such spouse, the annuity of such child by the Tax Court. use of fees) is amended by inserting before the or children shall be recomputed and paid as pro- ‘‘(4) PAY.—The Tax Court may fix and adjust period at the end ‘‘and to provide services to pro vided in paragraph (1)(C). the compensation for the clerk and other em- se taxpayers’’. ‘‘(D) RECOMPUTATION.—In any case in which ployees of the Tax Court without regard to the (b) EFFECTIVE DATE.—The amendment made the annuity of a dependent child is terminated provisions of chapter 51, subchapter III of chap- by this section shall take effect on the date of under this subsection, the annuities of any re- ter 53, or section 5373 of title 5, United States the enactment of this Act. maining dependent child or children, based

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upon the service of the same judge, shall be re- creases made under section 8340(b) of title 5, ‘‘(3) SPECIAL RULES.— computed and paid as though the child whose United States Code, in annuities payable under ‘‘(A) AMOUNT CONTRIBUTED.—The amount annuity was so terminated had not survived subchapter III of chapter 83 of that title, taking contributed by a judge to the Thrift Savings such judge. effect after the date of the enactment of this Fund in any pay period shall not exceed the ‘‘(4) SPECIAL RULE FOR ASSASSINATED Act. maximum percentage of such judge’s basic pay JUDGES.—In the case of a survivor or survivors SEC. 313. LIFE INSURANCE COVERAGE FOR TAX for such period as allowable under section 8440f of a judge described in paragraph (2)(B), there COURT JUDGES. of title 5, United States Code. Basic pay does shall be deducted from the annuities otherwise (a) IN GENERAL.—Section 7447 (relating to re- not include any retired pay paid pursuant to payable under this section an amount equal to— tirement of judges) is amended by adding at the this section. ‘‘(A) the amount of salary deductions pro- end the following new subsection: ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF JUDGE.— vided for by subsection (c)(1) that would have ‘‘(j) LIFE INSURANCE COVERAGE.—For pur- No contributions may be made for the benefit of been made if such deductions had been made for poses of chapter 87 of title 5, United States Code a judge under section 8432(c) of title 5, United 5 years of civilian service computed as pre- (relating to life insurance), any individual who States Code. scribed in subsection (n) before the judge’s is serving as a judge of the Tax Court or who is ‘‘(C) APPLICABILITY OF SECTION 8433(b)OF death, reduced by retired under this section is deemed to be an em- TITLE 5 WHETHER OR NOT JUDGE RETIRES.—Sec- ‘‘(B) the amount of such salary deductions ployee who is continuing in active employ- tion 8433(b) of title 5, United States Code, ap- that were actually made before the date of the ment.’’. plies with respect to a judge who makes an elec- judge’s death.’’. (b) EFFECTIVE DATE.—The amendment made tion under paragraph (1) and who either— (b) DEFINITION OF ASSASSINATION.—Section by this section shall apply to any individual ‘‘(i) retires under subsection (b), or 7448(a) (relating to definitions) is amended by serving as a judge of the United States Tax ‘‘(ii) ceases to serve as a judge of the Tax adding at the end the following new paragraph: Court or to any retired judge of the United Court but does not retire under subsection (b). ‘‘(8) The terms ‘assassinated’ and ‘assassina- States Tax Court on the date of the enactment Retirement under subsection (b) is a separation tion’ mean the killing of a judge that is moti- of this Act. from service for purposes of subchapters III and vated by the performance by that judge of his or SEC. 314. COST OF LIFE INSURANCE COVERAGE VII of chapter 84 of that title. her official duties.’’. FOR TAX COURT JUDGES AGE 65 OR ‘‘(D) APPLICABILITY OF SECTION 8351(b)(5) OF (c) DETERMINATION OF ASSASSINATION.—Sub- OVER. TITLE 5.—The provisions of section 8351(b)(5) of section (i) of section 7448 is amended— Section 7472 (relating to expenditures) is title 5, United States Code, shall apply with re- (1) by striking the subsection heading and in- amended by inserting after the first sentence the spect to a judge who makes an election under serting the following: following new sentence: ‘‘Notwithstanding any paragraph (1). ‘‘(i) DETERMINATIONS BY CHIEF JUDGE.— other provision of law, the Tax Court is author- ‘‘(E) EXCEPTION.—Notwithstanding subpara- ‘‘(1) DEPENDENCY AND DISABILITY.—’’, ized to pay on behalf of its judges, age 65 or graph (C), if any judge retires under this sec- (2) by moving the text 2 ems to the right, and over, any increase in the cost of Federal Em- tion, or resigns without having met the age and (3) by adding at the end the following new ployees’ Group Life Insurance imposed after service requirements set forth under subsection paragraph: April 24, 1999, including any expenses generated (b)(2), and such judge’s nonforfeitable account ‘‘(2) ASSASSINATION.—The chief judge shall by such payments, as authorized by the chief balance is less than an amount that the Execu- determine whether the killing of a judge was an judge in a manner consistent with such pay- tive Director of the Office of Personnel Manage- assassination, subject to review only by the Tax ments authorized by the Judicial Conference of ment prescribes by regulation, the Executive Di- Court. The head of any Federal agency that in- the United States pursuant to section 604(a)(5) rector shall pay the nonforfeitable account bal- vestigates the killing of a judge shall provide in- of title 28, United States Code.’’. ance to the participant in a single payment.’’. formation to the chief judge that would assist SEC. 315. MODIFICATION OF TIMING OF LUMP- (b) EFFECTIVE DATE.—The amendment made the chief judge in making such a determina- SUM PAYMENT OF JUDGES’ AC- tion.’’. CRUED ANNUAL LEAVE. by this section shall take effect on the date of (d) COMPUTATION OF ANNUITIES.—Subsection (a) IN GENERAL.—Section 7443 (relating to the enactment of this Act, except that United (m) of section 7448 is amended— membership of the Tax Court) is amended by States Tax Court judges may only begin to par- (1) by striking the subsection heading and in- adding at the end the following new subsection: ticipate in the Thrift Savings Plan at the next serting the following: ‘‘(h) LUMP-SUM PAYMENT OF JUDGES’ AC- open season beginning after such date. ‘‘(m) COMPUTATION OF ANNUITIES.— CRUED ANNUAL LEAVE.—Notwithstanding the SEC. 317. EXEMPTION OF TEACHING COMPENSA- ‘‘(1) IN GENERAL.—’’, provisions of sections 5551 and 6301 of title 5, TION OF RETIRED JUDGES FROM (2) by moving the text 2 ems to the right, and United States Code, when an individual subject LIMITATION ON OUTSIDE EARNED INCOME. (3) by adding at the end the following new to the leave system provided in chapter 63 of (a) IN GENERAL.—Section 7447 (relating to re- paragraph: that title is appointed by the President to be a tirement of judges), as amended by this Act, is ‘‘(2) ASSASSINATED JUDGES.—In the case of a judge of the Tax Court, the individual shall be amended by adding at the end the following judge who is assassinated and who has served entitled to receive, upon appointment to the Tax new subsection: less than 3 years, the annuity of the surviving Court, a lump-sum payment from the Tax Court ‘‘(l) TEACHING COMPENSATION OF RETIRED spouse of such judge shall be based upon the av- of the accumulated and accrued current annual JUDGES.—For purposes of the limitation under erage annual salary received by such judge for leave standing to the individual’s credit as cer- section 501(a) of the Ethics in Government Act judicial service.’’. tified by the agency from which the individual of 1978 (5 U.S.C. App.), any compensation for (e) OTHER BENEFITS.—Section 7448 is amended resigned.’’. by adding at the end the following: (b) EFFECTIVE DATE.—The amendment made teaching approved under section 502(a)(5) of ‘‘(u) OTHER BENEFITS.—In the case of a judge by this section shall apply to any judge of the such Act shall not be treated as outside earned who is assassinated, an annuity shall be paid United States Tax Court who has an out- income when received by a judge of the Tax under this section notwithstanding a survivor’s standing leave balance on the date of the enact- Court who has retired under subsection (b) for eligibility for or receipt of benefits under chap- ment of this Act and to any individual ap- teaching performed during any calendar year ter 81 of title 5, United States Code, except that pointed by the President to serve as a judge of for which such a judge has met the requirements the annuity for which a surviving spouse is eli- the United States Tax Court after such date. of subsection (c), as certified by the chief judge of the Tax Court.’’. gible under this section shall be reduced to the SEC. 316. PARTICIPATION OF TAX COURT JUDGES extent that the total benefits paid under this IN THE THRIFT SAVINGS PLAN. (b) EFFECTIVE DATE.—The amendment made section and chapter 81 of that title for any year (a) IN GENERAL.—Section 7447 (relating to re- by this section shall apply to any individual would exceed the current salary for that year of tirement of judges), as amended by this Act, is serving as a retired judge of the United States the office of the judge.’’. amended by adding at the end the following Tax Court on or after the date of the enactment SEC. 312. COST-OF-LIVING ADJUSTMENTS FOR new subsection: of this Act. TAX COURT JUDICIAL SURVIVOR AN- ‘‘(k) THRIFT SAVINGS PLAN.— SEC. 318. GENERAL PROVISIONS RELATING TO NUITIES. ‘‘(1) ELECTION TO CONTRIBUTE.— MAGISTRATE JUDGES OF THE TAX (a) IN GENERAL.—Subsection (s) of section ‘‘(A) IN GENERAL.—A judge of the Tax Court COURT. 7448 (relating to annuities to surviving spouses may elect to contribute to the Thrift Savings (a) TITLE OF SPECIAL TRIAL JUDGE CHANGED and dependent children of judges) is amended to Fund established by section 8437 of title 5, TO MAGISTRATE JUDGE OF THE TAX COURT.—The read as follows: United States Code. heading of section 7443A is amended to read as ‘‘(s) INCREASES IN SURVIVOR ANNUITIES.—Each ‘‘(B) PERIOD OF ELECTION.—An election may follows: time that an increase is made under section be made under this paragraph only during a pe- ‘‘SEC. 7443A. MAGISTRATE JUDGES OF THE TAX 8340(b) of title 5, United States Code, in annu- riod provided under section 8432(b) of title 5, COURT.’’. ities payable under subchapter III of chapter 83 United States Code, for individuals subject to (b) APPOINTMENT, TENURE, AND REMOVAL.— of that title, each annuity payable from the sur- chapter 84 of such title. Subsection (a) of section 7443A is amended to vivors annuity fund under this section shall be ‘‘(2) APPLICABILITY OF TITLE 5 PROVISIONS.— read as follows: increased at the same time by the same percent- Except as otherwise provided in this subsection, ‘‘(a) APPOINTMENT, TENURE, AND REMOVAL.— age by which annuities are increased under the provisions of subchapters III and VII of ‘‘(1) APPOINTMENT.—The chief judge may, such section 8340(b).’’. chapter 84 of title 5, United States Code, shall from time to time, appoint and reappoint mag- (b) EFFECTIVE DATE.—The amendments made apply with respect to a judge who makes an istrate judges of the Tax Court for a term of 8 by this section shall apply with respect to in- election under paragraph (1). years. The magistrate judges of the Tax Court

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00136 Fmt 4624 Sfmt 6333 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6029 shall proceed under such rules as may be pro- (B) by striking ‘‘special trial judges’’ and in- (B) by inserting ‘‘or 7443B(m)(1)(B) after mulgated by the Tax Court. serting ‘‘magistrate judges’’. ‘‘7447(f)(4)’’. ‘‘(2) REMOVAL.—Removal of a magistrate SEC. 319. ANNUITIES TO SURVIVING SPOUSES (8) Section 7448(n) is amended by inserting judge of the Tax Court during the term for AND DEPENDENT CHILDREN OF ‘‘his years of service pursuant to any appoint- which he or she is appointed shall be only for MAGISTRATE JUDGES OF THE TAX ment under section 7443A,’’ after ‘‘of the Tax incompetency, misconduct, neglect of duty, or COURT. Court,’’. physical or mental disability, but the office of a (a) DEFINITIONS.—Section 7448(a) (relating to (9) Section 3121(b)(5)(E) is amended by insert- magistrate judge of the Tax Court shall be ter- definitions), as amended by this Act, is amended ing ‘‘or magistrate judge’’ before ‘‘of the United minated if the judges of the Tax Court deter- by redesignating paragraphs (5), (6), (7), and (8) States Tax Court’’. mine that the services performed by the mag- as paragraphs (7), (8), (9), and (10), respectively, (10) Section 210(a)(5)(E) of the Social Security istrate judge of the Tax Court are no longer and by inserting after paragraph (4) the fol- Act is amended by inserting ‘‘or magistrate needed. Removal shall not occur unless a major- lowing new paragraphs: judge’’ before ‘‘of the United States Tax Court’’. ity of all the judges of the Tax Court concur in ‘‘(5) The term ‘magistrate judge’ means a judi- SEC. 320. RETIREMENT AND ANNUITY PROGRAM. the order of removal. Before any order of re- cial officer appointed pursuant to section 7443A, (a) RETIREMENT AND ANNUITY PROGRAM.— moval shall be entered, a full specification of including any individual receiving an annuity Part I of subchapter C of chapter 76 is amended the charges shall be furnished to the magistrate under section 7443B, or chapters 83 or 84, as the by inserting after section 7443A the following judge of the Tax Court, and he or she shall be case may be, of title 5, United States Code, new section: accorded by the judges of the Tax Court an op- whether or not performing judicial duties under ‘‘SEC. 7443B. RETIREMENT FOR MAGISTRATE portunity to be heard on the charges.’’. section 7443C. JUDGES OF THE TAX COURT. (c) SALARY.—Section 7443A(d) (relating to sal- ‘‘(6) The term ‘magistrate judge’s salary’ ‘‘(a) RETIREMENT BASED ON YEARS OF SERV- ary) is amended by striking ‘‘90’’ and inserting means the salary of a magistrate judge received ICE.—A magistrate judge of the Tax Court to ‘‘92’’. under section 7443A(d), any amount received as whom this section applies and who retires from (d) EXEMPTION FROM FEDERAL LEAVE PROVI- an annuity under section 7443B, or chapters 83 office after attaining the age of 65 years and SIONS.—Section 7443A is amended by adding at or 84, as the case may be, of title 5, United serving at least 14 years, whether continuously the end the following new subsection: States Code, and compensation received under or otherwise, as such magistrate judge shall, ‘‘(f) EXEMPTION FROM FEDERAL LEAVE PROVI- section 7443C.’’. subject to subsection (f), be entitled to receive, SIONS.— (b) ELECTION.—Subsection (b) of section 7448 during the remainder of the magistrate judge’s ‘‘(1) IN GENERAL.—A magistrate judge of the (relating to annuities to surviving spouses and lifetime, an annuity equal to the salary being Tax Court appointed under this section shall be dependent children of judges) is amended— received at the time the magistrate judge leaves exempt from the provisions of subchapter I of (1) by striking the subsection heading and in- office. chapter 63 of title 5, United States Code. serting the following: ‘‘(b) RETIREMENT UPON FAILURE OF RE- ‘‘(2) TREATMENT OF UNUSED LEAVE.— ‘‘(b) ELECTION.— APPOINTMENT.—A magistrate judge of the Tax ‘‘(A) AFTER SERVICE AS MAGISTRATE JUDGE.— ‘‘(1) JUDGES.—’’, Court to whom this section applies who is not If an individual who is exempted under para- (2) by moving the text 2 ems to the right, and reappointed following the expiration of the term graph (1) from the subchapter referred to in (3) by adding at the end the following new of office of such magistrate judge, and who re- such paragraph was previously subject to such paragraph: tires upon the completion of the term shall, sub- subchapter and, without a break in service, ‘‘(2) MAGISTRATE JUDGES.—Any magistrate ject to subsection (f), be entitled to receive, upon again becomes subject to such subchapter on judge may by written election filed with the attaining the age of 65 years and during the re- completion of the individual’s service as a mag- chief judge bring himself or herself within the mainder of such magistrate judge’s lifetime, an istrate judge, the unused annual leave and sick purview of this section. Such election shall be annuity equal to that portion of the salary leave standing to the individual’s credit when filed not later than the later of 6 months after— being received at the time the magistrate judge such individual was exempted from this sub- ‘‘(A) 6 months after the date of the enactment leaves office which the aggregate number of chapter is deemed to have remained to the indi- of this paragraph, years of service, not to exceed 14, bears to 14, ‘‘(B) the date the judge takes office, or vidual’s credit. if— ‘‘(B) COMPUTATION OF ANNUITY.—In com- ‘‘(C) the date the judge marries.’’. ‘‘(1) such magistrate judge has served at least (c) CONFORMING AMENDMENTS.— puting an annuity under section 8339 of title 5, 1 full term as a magistrate judge, and United States Code, the total service of an indi- (1) The heading of section 7448 is amended by ‘‘(2) not earlier than 9 months before the date vidual specified in subparagraph (A) who retires inserting ‘‘AND MAGISTRATE JUDGES’’ after on which the term of office of such magistrate on an immediate annuity or dies leaving a sur- ‘‘JUDGES’’. judge expires, and not later than 6 months be- (2) The item relating to section 7448 in the vivor or survivors entitled to an annuity in- fore such date, such magistrate judge notified table of sections for part I of subchapter C of cludes, without regard to the limitations im- the chief judge of the Tax Court in writing that chapter 76 is amended by inserting ‘‘and mag- posed by subsection (f) of such section 8339, the such magistrate judge was willing to accept re- istrate judges’’ after ‘‘judges’’. days of unused sick leave standing to the indi- appointment to the position in which such mag- (3) Subsections (c)(1), (d), (f), (g), (h), (j), (m), vidual’s credit when such individual was ex- istrate judge was serving. (n), and (u) of section 7448, as amended by this empted from subchapter I of chapter 63 of title ‘‘(c) SERVICE OF AT LEAST 8 YEARS.—A mag- 5, United States Code, except that these days Act, are each amended— istrate judge of the Tax Court to whom this sec- (A) by inserting ‘‘or magistrate judge’’ after will not be counted in determining average pay tion applies and who retires after serving at ‘‘judge’’ each place it appears other than in the or annuity eligibility. least 8 years, whether continuously or other- phrase ‘‘chief judge’’, and ‘‘(C) LUMP SUM PAYMENT.—Any accumulated wise, as such a magistrate judge shall, subject to (B) by inserting ‘‘or magistrate judge’s’’ after and current accrued annual leave or vacation subsection (f), be entitled to receive, upon at- ‘‘judge’s’’ each place it appears. balances credited to a magistrate judge as of the taining the age of 65 years and during the re- date of the enactment of this subsection shall be (4) Section 7448(c) is amended— (A) in paragraph (1), by striking ‘‘Tax Court mainder of the magistrate judge’s lifetime, an paid in a lump sum at the time of separation annuity equal to that portion of the salary from service pursuant to the provisions and re- judges’’ and inserting ‘‘Tax Court judicial officers’’, being received at the time the magistrate judge strictions set forth in section 5551 of title 5, leaves office which the aggregate number of United States Code, and related provisions re- (B) in paragraph (2)— (i) in subparagraph (A), by inserting ‘‘and years of service, not to exceed 14, bears to 14. ferred to in such section.’’. 1 section 7443A(d)’’ after ‘‘(a)(4)’’, and Such annuity shall be reduced by ⁄6 of 1 percent (e) CONFORMING AMENDMENTS.— for each full month such magistrate judge was (1) The heading of subsection (b) of section (ii) in subparagraph (B), by striking ‘‘sub- under the age of 65 at the time the magistrate 7443A is amended by striking ‘‘SPECIAL TRIAL section (a)(4)’’ and inserting ‘‘subsections (a)(4) judge left office, except that such reduction JUDGES’’ and inserting ‘‘MAGISTRATE JUDGES OF and (a)(6)’’. shall not exceed 20 percent. THE TAX COURT’’. (5) Section 7448(g) is amended by inserting ‘‘or ‘‘(d) RETIREMENT FOR DISABILITY.—A mag- (2) Section 7443A(b) is amended by striking section 7443B’’ after ‘‘section 7447’’ each place it istrate judge of the Tax Court to whom this sec- ‘‘special trial judges of the court’’ and inserting appears, and by inserting ‘‘or an annuity’’ after tion applies, who has served at least 5 years, ‘‘magistrate judges of the Tax Court’’. ‘‘retired pay’’. (3) Subsections (c) and (d) of section 7443A are (6) Section 7448(j)(1) is amended— whether continuously or otherwise, as such a amended by striking ‘‘special trial judge’’ and (A) in subparagraph (A), by striking ‘‘service magistrate judge, and who retires or is removed inserting ‘‘magistrate judge of the Tax Court’’ or retired’’ and inserting ‘‘service, retired’’, and from office upon the sole ground of mental or each place it appears. by inserting ‘‘, or receiving any annuity under physical disability shall, subject to subsection (4) Section 7443A(e) is amended by striking section 7443B or chapters 83 or 84 of title 5, (f), be entitled to receive, during the remainder ‘‘special trial judges’’ and inserting ‘‘magistrate United States Code,’’ after ‘‘section 7447’’, and of the magistrate judge’s lifetime, an annuity judges of the Tax Court’’. (B) in the last sentence, by striking ‘‘sub- equal to 40 percent of the salary being received (5) Section 7456(a) is amended by striking sections (a)(6) and (7)’’ and inserting ‘‘para- at the time of retirement or removal or, in the ‘‘special trial judge’’ each place it appears and graphs (8) and (9) of subsection (a)’’. case of a magistrate judge who has served for at inserting ‘‘magistrate judge’’. (7) Section 7448(m)(1), as amended by this Act, least 10 years, an amount equal to that propor- (6) Subsection (c) of section 7471 is amended— is amended— tion of the salary being received at the time of (A) by striking the subsection heading and in- (A) by inserting ‘‘or any annuity under sec- retirement or removal which the aggregate num- serting ‘‘MAGISTRATE JUDGES OF THE TAX tion 7443B or chapters 83 or 84 of title 5, United ber of years of service, not to exceed 14, bears to COURT.—’’, and States Code’’ after ‘‘7447(d)’’, and 14.

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‘‘(e) COST-OF-LIVING ADJUSTMENTS.—A mag- such decree, order, or agreement, and such addi- services. The preceding sentence shall not apply istrate judge of the Tax Court who is entitled to tional information as the chief judge may pre- to any civil office or employment under the Gov- an annuity under this section is also entitled to scribe. ernment of the United States. a cost-of-living adjustment in such annuity, cal- ‘‘(3) COURT DEFINED.—For purposes of this ‘‘(3) FORFEITURES NOT TO APPLY WHERE INDI- culated and payable in the same manner as ad- subsection, the term ‘court’ means any court of VIDUAL ELECTS TO FREEZE AMOUNT OF ANNU- justments under section 8340(b) of title 5, United any State, the District of Columbia, the Com- ITY.— States Code, except that any such annuity, as monwealth of Puerto Rico, Guam, the Northern ‘‘(A) IN GENERAL.—If a magistrate judge of the increased under this subsection, may not exceed Mariana Islands, or the Virgin Islands, and any Tax Court makes an election under this para- the salary then payable for the position from Indian tribal court or courts of Indian offense. graph— which the magistrate judge retired or was re- ‘‘(j) DEDUCTIONS, CONTRIBUTIONS, AND DEPOS- ‘‘(i) paragraphs (1) and (2) (and section moved. ITS.— 7443C) shall not apply to such magistrate judge ‘‘(f) ELECTION; ANNUITY IN LIEU OF OTHER ‘‘(1) DEDUCTIONS.—Beginning with the next beginning on the date such election takes effect, ANNUITIES.— pay period after the chief judge of the Tax and ‘‘(1) IN GENERAL.—A magistrate judge of the Court receives a notice under subsection (f) that ‘‘(ii) the annuity payable under this section to Tax Court shall be entitled to an annuity under a magistrate judge of the Tax Court has elected such magistrate judge, for periods beginning on this section if the magistrate judge elects an an- an annuity under this section, the chief judge or after the date such election takes effect, shall nuity under this section by notifying the chief shall deduct and withhold 1 percent of the sal- be equal to the annuity to which such mag- judge of the Tax Court not later than the later ary of such magistrate judge. Amounts shall be istrate judge is entitled on the day before such of— so deducted and withheld in a manner deter- effective date. ‘‘(A) 5 years after the magistrate judge of the mined by the chief judge. Amounts deducted ‘‘(B) ELECTION REQUIREMENTS.—An election Tax Court begins judicial service, or and withheld under this subsection shall be de- under subparagraph (A)— ‘‘(B) 5 years after the date of the enactment of posited in the Treasury of the United States to ‘‘(i) may be made by a magistrate judge of the this subsection. the credit of the Tax Court Judicial Officers’ Re- Tax Court eligible for retirement under this sec- tirement Fund. Deductions under this sub- Such notice shall be given in accordance with tion, and section from the salary of a magistrate judge procedures prescribed by the Tax Court. ‘‘(ii) shall be filed with the chief judge of the shall terminate upon the retirement of the mag- ‘‘(2) ANNUITY IN LIEU OF OTHER ANNUITY.—A Tax Court. istrate judge or upon completion of 14 years of magistrate judge who elects to receive an annu- Such an election, once it takes effect, shall be ir- service for which contributions under this sec- ity under this section shall not be entitled to re- revocable. tion have been made, whether continuously or ceive— ‘‘(C) EFFECTIVE DATE OF ELECTION.—Any elec- otherwise, as calculated under subsection (g), ‘‘(A) any annuity to which such magistrate tion under subparagraph (A) shall take effect whichever occurs first. judge would otherwise have been entitled under on the first day of the first month following the ‘‘(2) CONSENT TO DEDUCTIONS; DISCHARGE OF subchapter III of chapter 83, or under chapter month in which the election is made. CLAIMS.—Each magistrate judge of the Tax ‘‘(4) ACCEPTING OTHER EMPLOYMENT.—Any 84 (except for subchapters III and VII), of title Court who makes an election under subsection magistrate judge of the Tax Court who retires 5, United States Code, for service performed as (f) shall be deemed to consent and agree to the under this section and thereafter accepts com- a magistrate or otherwise, deductions from salary which are made under pensation for civil office or employment under ‘‘(B) an annuity or salary in senior status or paragraph (1). Payment of such salary less such the United States Government (other than for retirement under section 371 or 372 of title 28, deductions (and any deductions made under the performance of functions as a magistrate United States Code, section 7448) is a full and complete discharge judge of the Tax Court under section 7443C) ‘‘(C) retired pay under section 7447, or and acquittance of all claims and demands for shall forfeit all rights to an annuity under this ‘‘(D) retired pay under section 7296 of title 38, all services rendered by such magistrate judge section for the period for which such compensa- United States Code. during the period covered by such payment, ex- tion is received. For purposes of this paragraph, ‘‘(3) COORDINATION WITH TITLE 5.—A mag- cept the right to those benefits to which the the term ‘compensation’ includes retired pay or istrate judge of the Tax Court who elects to re- magistrate judge is entitled under this section salary received in retired status. ceive an annuity under this section— (and section 7448). ‘‘(n) LUMP-SUM PAYMENTS.— ‘‘(A) shall not be subject to deductions and ‘‘(k) DEPOSITS FOR PRIOR SERVICE.—Each ‘‘(1) ELIGIBILITY.— contributions otherwise required by section magistrate judge of the Tax Court who makes ‘‘(A) IN GENERAL.—Subject to paragraph (2), 8334(a) of title 5, United States Code, an election under subsection (f) may deposit, for an individual who serves as a magistrate judge ‘‘(B) shall be excluded from the operation of service performed before such election for which of the Tax Court and— chapter 84 (other than subchapters III and VII) contributions may be made under this section, ‘‘(i) who leaves office and is not reappointed of such title 5, and an amount equal to 1 percent of the salary re- as a magistrate judge of the Tax Court for at ‘‘(C) is entitled to a lump-sum credit under ceived for that service. Credit for any period least 31 consecutive days, section 8342(a) or 8424 of such title 5, as the case covered by that service may not be allowed for ‘‘(ii) who files an application with the chief may be. purposes of an annuity under this section until judge of the Tax Court for payment of a lump- ‘‘(g) CALCULATION OF SERVICE.—For purposes a deposit under this subsection has been made sum credit, of calculating an annuity under this section— for that period. ‘‘(iii) is not serving as a magistrate judge of ‘‘(1) service as a magistrate judge of the Tax ‘‘(l) INDIVIDUAL RETIREMENT RECORDS.—The Court to whom this section applies may be cred- amounts deducted and withheld under sub- the Tax Court at the time of filing of the appli- ited, and section (j), and the amounts deposited under cation, and ‘‘(2) each month of service shall be credited as subsection (k), shall be credited to individual ‘‘(iv) will not become eligible to receive an an- 1 nuity under this section within 31 days after fil- ⁄12 of a year, and the fractional part of any accounts in the name of each magistrate judge month shall not be credited. of the Tax Court from whom such amounts are ing the application, ‘‘(h) COVERED POSITIONS AND SERVICE.—This received, for credit to the Tax Court Judicial Of- is entitled to be paid the lump-sum credit. Pay- section applies to any magistrate judge of the ficers’ Retirement Fund. ment of the lump-sum credit voids all rights to Tax Court or special trial judge of the Tax ‘‘(m) ANNUITIES AFFECTED IN CERTAIN an annuity under this section based on the serv- Court appointed under this subchapter, but only CASES.— ice on which the lump-sum credit is based, until with respect to service as such a magistrate ‘‘(1) 1-YEAR FORFEITURE FOR FAILURE TO PER- that individual resumes office as a magistrate judge or special trial judge after a date not ear- FORM JUDICIAL DUTIES.—Subject to paragraph judge of the Tax Court. lier than 91⁄2 years before the date of the enact- (3), any magistrate judge of the Tax Court who ‘‘(B) PAYMENT TO SURVIVORS.—Lump-sum ment of this subsection. retires under this section and who fails to per- benefits authorized by subparagraphs (C), (D), ‘‘(i) PAYMENTS PURSUANT TO COURT ORDER.— form judicial duties required of such individual and (E) of this paragraph shall be paid to the ‘‘(1) IN GENERAL.—Payments under this sec- by section 7443C shall forfeit all rights to an an- person or persons surviving the magistrate judge tion which would otherwise be made to a mag- nuity under this section for a 1-year period of the Tax Court and alive on the date title to istrate judge of the Tax Court based upon his or which begins on the 1st day on which such indi- the payment arises, in the order of precedence her service shall be paid (in whole or in part) by vidual fails to perform such duties. set forth in subsection (o) of section 376 of title the chief judge of the Tax Court to another per- ‘‘(2) PERMANENT FORFEITURE OF RETIRED PAY 28, United States Code, and in accordance with son if and to the extent expressly provided for in WHERE CERTAIN NON-GOVERNMENT SERVICES PER- the last 2 sentences of paragraph (1) of that sub- the terms of any court decree of divorce, annul- FORMED.—Subject to paragraph (3), any mag- section. For purposes of the preceding sentence, ment, or legal separation, or the terms of any istrate judge of the Tax Court who retires under the term ‘judicial official’ as used in subsection court order or court-approved property settle- this section and who thereafter performs (or su- (o) of such section 376 shall be deemed to mean ment agreement incident to any court decree of pervises or directs the performance of) legal or ‘magistrate judge of the Tax Court’ and the divorce, annulment, or legal separation. Any accounting services in the field of Federal tax- terms ‘Administrative Office of the United States payment under this paragraph to a person bars ation for the individual’s client, the individual’s Courts’ and ‘Director of the Administrative Of- recovery by any other person. employer, or any of such employer’s clients, fice of the United States Courts’ shall be deemed ‘‘(2) REQUIREMENTS FOR PAYMENT.—Para- shall forfeit all rights to an annuity under this to mean ‘chief judge of the Tax Court’. graph (1) shall apply only to payments made by section for all periods beginning on or after the ‘‘(C) PAYMENT UPON DEATH OF JUDGE BEFORE the chief judge of the Tax Court after the date first day on which the individual performs (or RECEIPT OF ANNUITY.—If a magistrate judge of of receipt by the chief judge of written notice of supervises or directs the performance of) such the Tax Court dies before receiving an annuity

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00138 Fmt 4624 Sfmt 6333 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6031 under this section, the lump-sum credit shall be the ‘Tax Court Judicial Officers’ Retirement ernment Act is a separation from service for pur- paid. Fund’. Amounts in the Fund are authorized to poses of subchapters III and VII of chapter 84 of ‘‘(D) PAYMENT OF ANNUITY REMAINDER.—If all be appropriated for the payment of annuities, title 5, United States Code. annuity rights under this section based on the refunds, and other payments under this section. ‘‘(4) DEFINITIONS.—For purposes of this sub- service of a deceased magistrate judge of the ‘‘(2) INVESTMENT OF FUND.—The Secretary section, the terms ‘retirement’ and ‘retire’ in- Tax Court terminate before the total annuity shall invest, in interest bearing securities of the clude removal from office under section paid equals the lump-sum credit, the difference United States, such currently available portions 7443A(a)(2) on the sole ground of mental or shall be paid. of the Tax Court Judicial Officers’ Retirement physical disability. ‘‘(E) PAYMENT UPON DEATH OF JUDGE DURING Fund as are not immediately required for pay- ‘‘(5) OFFSET.—In the case of a magistrate RECEIPT OF ANNUITY.—If a magistrate judge of ments from the Fund. The income derived from judge who receives a distribution from the Thrift the Tax Court who is receiving an annuity these investments constitutes a part of the Savings Fund and who later receives an annu- under this section dies, any accrued annuity Fund. ity under this section, that annuity shall be off- benefits remaining unpaid shall be paid. ‘‘(3) UNFUNDED LIABILITY.— set by an amount equal to the amount which ‘‘(F) PAYMENT UPON TERMINATION.—Any ac- ‘‘(A) IN GENERAL.—There are authorized to be represents the Government’s contribution to that crued annuity benefits remaining unpaid on the appropriated to the Tax Court Judicial Officers’ person’s Thrift Savings Account, without regard termination, except by death, of the annuity of Retirement Fund amounts required to reduce to to earnings attributable to that amount. Where a magistrate judge of the Tax Court shall be zero the unfunded liability of the Fund. such an offset would exceed 50 percent of the paid to that individual. ‘‘(B) UNFUNDED LIABILITY.—For purposes of annuity to be received in the first year, the off- ‘‘(G) PAYMENT UPON ACCEPTING OTHER EM- subparagraph (A), the term ‘unfunded liability’ set may be divided equally over the first 2 years PLOYMENT.—Subject to paragraph (2), a mag- means the estimated excess, determined on an in which that person receives the annuity. istrate judge of the Tax Court who forfeits annual basis in accordance with the provisions ‘‘(6) EXCEPTION.—Notwithstanding clauses (i) rights to an annuity under subsection (m)(4) be- of section 9503 of title 31, United States Code, of and (ii) of paragraph (3)(C), if any magistrate fore the total annuity paid equals the lump-sum the present value of all benefits payable from judge retires under circumstances making such credit shall be entitled to be paid the difference the Tax Court Judicial Officers’ Retirement magistrate judge eligible to make an election if the magistrate judge of the Tax Court files an Fund over the sum of— under subsection (b) of section 8433 of title 5, application with the chief judge of the Tax ‘‘(i) the present value of deductions to be United States Code, and such magistrate judge’s Court for payment of that difference. A payment withheld under this section from the future nonforfeitable account balance is less than an under this subparagraph voids all rights to an basic pay of magistrate judges of the Tax Court, amount that the Executive Director of the Office annuity on which the payment is based. plus of Personnel Management prescribes by regula- ‘‘(2) SPOUSES AND FORMER SPOUSES.— ‘‘(ii) the balance in the Fund as of the date tion, the Executive Director shall pay the non- ‘‘(A) IN GENERAL.—Payment of the lump-sum the unfunded liability is determined. forfeitable account balance to the participant in credit under paragraph (1)(A) or a payment ‘‘(p) PARTICIPATION IN THRIFT SAVINGS a single payment.’’. under paragraph (1)(G)— PLAN.— (b) CONFORMING AMENDMENT.—The table of ‘‘(i) may be made only if any current spouse ‘‘(1) ELECTION TO CONTRIBUTE.— section for part I of subchapter C of chapter 76 and any former spouse of the magistrate judge ‘‘(A) IN GENERAL.—A magistrate judge of the is amended by inserting after the item relating of the Tax Court are notified of the magistrate Tax Court who elects to receive an annuity to section 7443A the following new item: judge’s application, and under this section or under section 321 of the ‘‘Sec. 7443B. Retirement for magistrate judges of ‘‘(ii) shall be subject to the terms of a court Tax Administration Good Government Act may the Tax Court.’’. decree of divorce, annulment, or legal separa- elect to contribute an amount of such individ- tion, or any court or court approved property ual’s basic pay to the Thrift Savings Fund es- SEC. 321. INCUMBENT MAGISTRATE JUDGES OF settlement agreement incident to such decree, tablished by section 8437 of title 5, United States THE TAX COURT. if— Code. (a) RETIREMENT ANNUITY UNDER TITLE 5 AND ‘‘(I) the decree, order, or agreement expressly ‘‘(B) PERIOD OF ELECTION.—An election may SECTION 7443B OF THE INTERNAL REVENUE CODE relates to any portion of the lump-sum credit or be made under this paragraph only during a pe- OF 1986.—A magistrate judge of the United other payment involved, and riod provided under section 8432(b) of title 5, States Tax Court in active service on the date of ‘‘(II) payment of the lump-sum credit or other United States Code, for individuals subject to the enactment of this Act shall, subject to sub- payment would extinguish entitlement of the chapter 84 of such title. section (b), be entitled, in lieu of the annuity magistrate judge’s spouse or former spouse to ‘‘(2) APPLICABILITY OF TITLE 5 PROVISIONS.— otherwise provided under the amendments made any portion of an annuity under subsection (i). Except as otherwise provided in this subsection, by this title, to— ‘‘(B) NOTIFICATION.—Notification of a spouse the provisions of subchapters III and VII of (1) an annuity under subchapter III of chap- or former spouse under this paragraph shall be chapter 84 of title 5, United States Code, shall ter 83, or under chapter 84 (except for sub- made in accordance with such procedures as the apply with respect to a magistrate judge who chapters III and VII), of title 5, United States chief judge of the Tax Court shall prescribe. The makes an election under paragraph (1). Code, as the case may be, for creditable service chief judge may provide under such procedures ‘‘(3) SPECIAL RULES.— before the date on which service would begin to that subparagraph (A)(i) may be waived with ‘‘(A) AMOUNT CONTRIBUTED.—The amount be credited for purposes of paragraph (2), and respect to a spouse or former spouse if the mag- contributed by a magistrate judge to the Thrift (2) an annuity calculated under subsection (b) istrate judge establishes to the satisfaction of Savings Fund in any pay period shall not ex- or (c) and subsection (g) of section 7443B of the the chief judge that the whereabouts of such ceed the maximum percentage of such judge’s Internal Revenue Code of 1986, as added by this spouse or former spouse cannot be determined. basic pay for such pay period as allowable Act, for any service as a magistrate judge of the ‘‘(C) RESOLUTION OF 2 OR MORE ORDERS.—The under section 8440f of title 5, United States United States Tax Court or special trial judge of chief judge shall prescribe procedures under Code. the United States Tax Court but only with re- which this paragraph shall be applied in any ‘‘(B) CONTRIBUTIONS FOR BENEFIT OF JUDGE.— spect to service as such a magistrate judge or case in which the chief judge receives 2 or more No contributions may be made for the benefit of special trial judge after a date not earlier than orders or decrees described in subparagraph (A). a magistrate judge under section 8432(c) of title 91⁄2 years prior to the date of the enactment of ‘‘(3) DEFINITION.—For purposes of this sub- 5, United States Code. this Act (as specified in the election pursuant to section, the term ‘lump-sum credit’ means the ‘‘(C) APPLICABILITY OF SECTION 8433(b)OF subsection (b)) for which deductions and depos- unrefunded amount consisting of— TITLE 5.—Section 8433(b) of title 5, United States its are made under subsections (j) and (k) of ‘‘(A) retirement deductions made under this Code, applies with respect to a magistrate judge such section 7443B, as applicable, without re- section from the salary of a magistrate judge of who makes an election under paragraph (1) gard to the minimum number of years of service the Tax Court, and— as such a magistrate judge of the United States ‘‘(B) amounts deposited under subsection (k) ‘‘(i) who retires entitled to an immediate an- Tax Court, except that— by a magistrate judge of the Tax Court covering nuity under this section (including a disability (A) in the case of a magistrate judge who re- earlier service, and annuity under subsection (d) of this section) or tired with less than 8 years of service, the annu- ‘‘(C) interest on the deductions and deposits section 321 of the Tax Administration Good Gov- ity under subsection (c) of such section 7443B which, for any calendar year, shall be equal to ernment Act, shall be equal to that proportion of the salary the overall average yield to the Tax Court Judi- ‘‘(ii) who retires before attaining age 65 but is being received at the time the magistrate judge cial Officers’ Retirement Fund during the pre- entitled, upon attaining age 65, to an annuity leaves office which the years of service bears to ceding fiscal year from all obligations purchased under this section or section 321 of the Tax Ad- 14, subject to a reduction in accordance with by the Secretary during such fiscal year under ministration Good Government Act, or subsection (c) of such section 7443B if the mag- subsection (o); but does not include interest— ‘‘(iii) who retires before becoming entitled to istrate judge is under age 65 at the time he or ‘‘(i) if the service covered thereby aggregates 1 an immediate annuity, or an annuity upon at- she leaves office, and year or less, or taining age 65, under this section or section 321 (B) the aggregate amount of the annuity ini- ‘‘(ii) for the fractional part of a month in the of the Tax Administration Good Government tially payable on retirement under this sub- total service. Act. section may not exceed the rate of pay for the ‘‘(o) TAX COURT JUDICIAL OFFICERS’ RETIRE- ‘‘(D) SEPARATION FROM SERVICE.—With re- magistrate judge which is in effect on the day MENT FUND.— spect to a magistrate judge to whom this sub- before the retirement becomes effective. ‘‘(1) ESTABLISHMENT.—There is established in section applies, retirement under this section or (b) FILING OF NOTICE OF ELECTION.—A mag- the Treasury a fund which shall be known as section 321 of the Tax Administration Good Gov- istrate judge of the United States Tax Court

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00139 Fmt 4624 Sfmt 6333 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6032 CONGRESSIONAL RECORD — SENATE May 20, 2004 shall be entitled to an annuity under this sec- such rules as may be promulgated by the Tax SEC. 404. PROHIBITION OF DISCLOSURE OF TAX- tion only if the magistrate judge files a notice of Court.’’. PAYER IDENTIFICATION INFORMA- TION WITH RESPECT TO DISCLO- that election with the chief judge of the United (b) CONFORMING AMENDMENT.—The table of States Tax Court specifying the date on which SURE OF ACCEPTED OFFERS-IN-COM- sections for part I of subchapter C of chapter 76, PROMISE. service would begin to be credited under section as amended by this Act, is amended by inserting (a) IN GENERAL.—Paragraph (1) of section 7443B of the Internal Revenue Code of 1986, as after the item relating to section 7443B the fol- 6103(k) (relating to disclosure of certain returns added by this Act, in lieu of chapter 83 or chap- lowing new item: and return information for tax administrative ter 84 of title 5, United States Code. Such notice purposes) is amended by inserting ‘‘(other than shall be filed in accordance with such proce- ‘‘Sec. 7443C. Recall of magistrate judges of the the taxpayer’s TIN)’’ after ‘‘Return informa- dures as the chief judge of the United States Tax Court.’’. tion’’. Tax Court shall prescribe. SEC. 323. EFFECTIVE DATE. (b) EFFECTIVE DATE.—The amendment made (c) LUMP-SUM CREDIT UNDER TITLE 5.—A Except as otherwise provided, the amendments by this section shall apply to disclosures made magistrate judge of the United States Tax Court made by this subtitle shall take effect on the after the date of the enactment of this Act. who makes an election under subsection (b) date of the enactment of this Act. shall be entitled to a lump-sum credit under sec- SEC. 405. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY SAFEGUARDS. tion 8342 or 8424 of title 5, United States Code, TITLE IV—CONFIDENTIALITY AND (a) IN GENERAL.—Section 6103(p) (relating to as the case may be, for any service which is cov- DISCLOSURE State law requirements) is amended by adding ered under section 7443B of the Internal Rev- SEC. 401. CLARIFICATION OF DEFINITION OF at the end the following new paragraph: enue Code of 1986, as added by this Act, pursu- CHURCH TAX INQUIRY. ‘‘(9) DISCLOSURE TO CONTRACTORS AND OTHER ant to that election, and with respect to which (a) IN GENERAL.—Subsection (i) of section 7611 AGENTS.—Notwithstanding any other provision any contributions were made by the magistrate (relating to section not to apply to criminal in- of this section, no return or return information judge under the applicable provisions of title 5, vestigations, etc.) is amended by striking ‘‘or’’ shall be disclosed to any contractor or other United States Code. at the end of paragraph (4), by striking the pe- agent of a Federal, State, or local agency unless (d) RECALL.—With respect to any magistrate riod at the end of paragraph (5) and inserting ‘‘, such agency, to the satisfaction of the Sec- judge of the United States Tax Court receiving or’’, and by inserting after paragraph (5) the retary— an annuity under this section who is recalled to following: ‘‘(A) has requirements in effect which require serve under section 7443C of the Internal Rev- ‘‘(6) information provided by the Secretary re- each such contractor or other agent which enue Code of 1986, as added by this Act— lated to the standards for exemption from tax would have access to returns or return informa- (1) the amount of compensation which such under this title and the requirements under this tion to provide safeguards (within the meaning recalled magistrate judge receives under such title relating to unrelated business taxable in- of paragraph (4)) to protect the confidentiality section 7443C shall be calculated on the basis of come.’’. of such returns or return information, the annuity received under this section, and (b) EFFECTIVE DATE.—The amendments made (2) such recalled magistrate judge of the ‘‘(B) agrees to conduct an on-site review every by this section shall take effect on the date of 3 years (mid-point review in the case of con- United States Tax Court may serve as a reem- the enactment of this Act. ployed annuitant to the extent otherwise per- tracts or agreements of less than 1 year in dura- mitted under title 5, United States Code. SEC. 402. COLLECTION ACTIVITIES WITH RE- tion) of each contractor or other agent to deter- SPECT TO JOINT RETURN mine compliance with such requirements, Section 7443B(m)(4) of the Internal Revenue DISCLOSABLE TO EITHER SPOUSE ‘‘(C) submits the findings of the most recent Code of 1986, as added by this Act, shall not BASED ON ORAL REQUEST. review conducted under subparagraph (B) to apply with respect to service as a reemployed (a) IN GENERAL.—Paragraph (8) of section the Secretary as part of the report required by annuitant described in paragraph (2). 6103(e) (relating to disclosure of collection ac- paragraph (4)(E), and SEC. 322. PROVISIONS FOR RECALL. tivities with respect to joint return) is amended ‘‘(D) certifies to the Secretary for the most re- (a) IN GENERAL.—Part I of subchapter C of by striking ‘‘in writing’’ the first place it ap- cent annual period that such contractor or chapter 76, as amended by this Act, is amended pears. other agent is in compliance with all such re- by inserting after section 7443B the following (b) ELIMINATION OF REPORTING REQUIRE- quirements. new section: MENT.—Section 7803(d)(1) (relating to annual re- The certification required by subparagraph (D) ‘‘SEC. 7443C. RECALL OF MAGISTRATE JUDGES OF porting), as amended by this Act, is amended by shall include the name and address of each con- THE TAX COURT. striking subparagraph (B) and by redesignating tractor and other agent, a description of the ‘‘(a) RECALLING OF RETIRED MAGISTRATE subparagraphs (C), (D), (E), (F), (G), and (H) as contract or agreement with such contractor or JUDGES.—Any individual who has retired pursu- subparagraphs (B), (C), (D), (E), (F), and (G), other agent, and the duration of such contract ant to section 7443B or the applicable provisions respectively. or agreement. The requirements of this para- of title 5, United States Code, upon reaching the (c) EFFECTIVE DATES.— graph shall not apply to disclosures pursuant to age and service requirements established there- (1) SUBSECTION (a).—The amendment made by subsection (n) for purposes of Federal tax ad- in, may at or after retirement be called upon by subsection (a) shall apply to requests made after ministration.’’. the chief judge of the Tax Court to perform such the date of the enactment of this Act. (b) CONFORMING AMENDMENT.—Subparagraph judicial duties with the Tax Court as may be re- (2) SUBSECTION (b).—The amendments made (B) of section 6103(p)(8) is amended by inserting quested of such individual for any period or pe- by subsection (b) shall apply to reports made ‘‘or paragraph (9)’’ after ‘‘subparagraph (A)’’. riods specified by the chief judge; except that in after the date of the enactment of this Act. (c) EFFECTIVE DATE.— the case of any such individual— (1) IN GENERAL.—The amendments made by ‘‘(1) the aggregate of such periods in any 1 SEC. 403. TAXPAYER REPRESENTATIVES NOT SUB- JECT TO EXAMINATION ON SOLE this section shall apply to disclosures made after calendar year shall not (without such individ- the date of the enactment of this Act. ual’s consent) exceed 90 calendar days, and BASIS OF REPRESENTATION OF TAX- PAYERS. (2) CERTIFICATIONS.—The first certification ‘‘(2) such individual shall be relieved of per- under section 6103(p)(9)(D) of the Internal Rev- forming such duties during any period in which (a) IN GENERAL.—Paragraph (1) of section 6103(h) (relating to disclosure to certain Federal enue Code of 1986, as added by subsection (a), illness or disability precludes the performance of shall be made with respect to the portion of cal- such duties. officers and employees for purposes of tax administration, etc.) is amended— endar year 2004 following the date of the enact- Any act, or failure to act, by an individual per- ment of this Act. (1) by striking ‘‘TREASURY.—Returns and re- forming judicial duties pursuant to this sub- turn information’’ and inserting ‘‘TREASURY.— SEC. 406. HIGHER STANDARDS FOR REQUESTS section shall have the same force and effect as FOR AND CONSENTS TO DISCLO- if it were the act (or failure to act) of a mag- ‘‘(A) IN GENERAL.—Returns and return infor- SURE. mation’’, and istrate judge of the Tax Court. (a) IN GENERAL.—Subsection (c) of section ‘‘(b) COMPENSATION.—For the year in which a (2) by adding at the end the following new 6103 (relating to disclosure of returns and return period of recall occurs, the magistrate judge subparagraph: information to designee of taxpayer) is amend- shall receive, in addition to the annuity pro- ‘‘(B) TAXPAYER REPRESENTATIVES.—Notwith- ed— vided under the provisions of section 7443B or standing subparagraph (A), the return or return (1) by striking ‘‘TAXPAYER.—The Secretary’’ under the applicable provisions of title 5, United information of the representative of a taxpayer and inserting ‘‘TAXPAYER.— States Code, an amount equal to the difference whose return is being examined by an officer or ‘‘(1) IN GENERAL.—The Secretary’’, and between that annuity and the current salary of employee of the Department of the Treasury (2) by adding at the end the following new the office to which the magistrate judge is re- shall not be open to inspection by such officer or paragraphs: called. The annuity of the magistrate judge who employee on the sole basis of the representa- ‘‘(2) RESTRICTIONS ON PERSONS OBTAINING IN- completes that period of service, who is not re- tive’s relationship to the taxpayer unless a su- FORMATION.—The return of any taxpayer, or recalled in a subsequent year, and who retired pervisor of such officer or employee has ap- turn information with respect to such taxpayer, under section 7443B, shall be equal to the salary proved the inspection of the return or return in- disclosed to a person or persons under para- in effect at the end of the year in which the pe- formation of such representative on a basis graph (1) for a purpose specified in writing, riod of recall occurred for the office from which other than by reason of such relationship.’’. electronically, or orally may be disclosed or used such individual retired. (b) EFFECTIVE DATE.—The amendments made by such person or persons only for the purpose ‘‘(c) RULEMAKING AUTHORITY.—The provi- by this section shall take effect after the date of of, and to the extent necessary in, accom- sions of this section may be implemented under the enactment of this Act. plishing the purpose for disclosure specified and

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shall not be disclosed or used for any other pur- (b) EXHAUSTION OF ADMINISTRATIVE REMEDIES payer identity information to the press and pose. REQUIRED.—Section 7431, as amended by this other media’’ and by inserting ‘‘a person’s name ‘‘(3) REQUIREMENTS FOR FORM PRESCRIBED BY Act, is amended by adding at the end the fol- and the city, State, and zip code of the person’s SECRETARY.—For purposes of this subsection, lowing new subsection: mailing address to the press, other media, and the Secretary shall prescribe a form for written ‘‘(j) EXHAUSTION OF ADMINISTRATIVE REM- through any other means of mass communica- requests and consents which shall— EDIES REQUIRED.—A judgment for damages shall tion,’’. ‘‘(A) contain a warning, prominently dis- not be awarded under subsection (c) unless the (b) EFFECTIVE DATE.—The amendment made played, informing the taxpayer that the form court determines that the plaintiff has ex- by this section shall take effect on the date of should not be signed unless it is completed, hausted the administrative remedies available to the enactment of this Act. ‘‘(B) state that if the taxpayer believes there such plaintiff.’’. SEC. 410. DISCLOSURE TO STATE OFFICIALS OF is an attempt to coerce him to sign an incom- (c) PAYMENT AUTHORITY CLARIFIED.— PROPOSED ACTIONS RELATED TO plete or blank form, the taxpayer should report (1) IN GENERAL.—Section 7431, as amended by SECTION 501(c) ORGANIZATIONS. the matter to the Treasury Inspector General for subsection (b), is amended by adding at the end (a) IN GENERAL.—Subsection (c) of section Tax Administration, and the following new subsection: 6104 is amended by striking paragraph (2) and ‘‘(C) contain the address and telephone num- ‘‘(k) PAYMENT AUTHORITY.—Claims pursuant inserting the following new paragraphs: ber of the Treasury Inspector General for Tax to this section shall be payable out of funds ap- ‘‘(2) DISCLOSURE OF PROPOSED ACTIONS RE- Administration. propriated under section 1304 of title 31, United LATED TO CHARITABLE ORGANIZATIONS.— ‘‘(4) CROSS REFERENCE.— States Code.’’. ‘‘(A) SPECIFIC NOTIFICATIONS.—In the case of ‘‘For provision providing for civil damages (2) ANNUAL REPORTS OF PAYMENTS.—The Sec- an organization to which paragraph (1) applies, for violation of paragraph (2), see section retary of the Treasury shall annually report to the Secretary may disclose to the appropriate 7431(i).’’. the Committee of Finance of the Senate and the State officer— Committee on Ways and Means of the House of (b) CIVIL DAMAGES.—Section 7431 (relating to ‘‘(i) a notice of proposed refusal to recognize Representatives regarding payments made from civil damages for unauthorized inspection or such organization as an organization described the United States Judgment Fund under section disclosure of returns and return information) is in section 501(c)(3) or a notice of proposed rev- 7431(k) of the Internal Revenue Code of 1986. amended by adding at the end the following ocation of such organization’s recognition as an (d) BURDEN OF PROOF FOR GOOD FAITH EX- new subsection: organization exempt from taxation, CEPTION RESTS WITH INDIVIDUAL MAKING IN- ‘‘(i) DISCLOSURE OR USE OF RETURNS AND RE- ‘‘(ii) the issuance of a letter of proposed defi- SPECTION OR DISCLOSURE.—Section 7431(b) (re- TURN INFORMATION OBTAINED UNDER SUB- ciency of tax imposed under section 507 or chap- lating to exceptions) is amended by adding at SECTION 6103(c).—Disclosure or use of returns or ter 41 or 42, and the end the following new flush sentence: return information obtained under section ‘‘(iii) the names, addresses, and taxpayer 6103(c) other than for the purpose of, and to the ‘‘In any proceeding involving the issue of the identification numbers of organizations which extent necessary in, accomplishing the purpose existence of good faith, the burden of proof with have applied for recognition as organizations for disclosure specified in writing, electroni- respect to such issue shall be on the individual described in section 501(c)(3). ‘‘(B) ADDITIONAL DISCLOSURES.—Returns and cally, or orally, shall be treated as a violation of who made the inspection or disclosure.’’. return information of organizations with respect section 6103(a).’’. (e) REPORTS.—Subsection (p) of section 6103 (c) REPORT.—Not later than 18 months after (relating to procedure and recordkeeping), as to which information is disclosed under sub- the date of the enactment of this Act, the Sec- amended by this Act, is amended by adding at paragraph (A) may be made available for in- retary of the Treasury shall submit a report to the end the following new paragraph: spection by or disclosed to an appropriate State the Congress on compliance with the designa- ‘‘(10) REPORT ON WILLFUL UNAUTHORIZED DIS- officer. tion and certification requirements applicable to CLOSURE AND INSPECTION.—As part of the report ‘‘(C) PROCEDURES FOR DISCLOSURE.—Informa- requests for or consent to disclosure of returns required by paragraph (3)(C) for each calendar tion may be inspected or disclosed under sub- and return information under section 6103(c) of year, the Secretary shall furnish information re- paragraph (A) or (B) only— ‘‘(i) upon written request by an appropriate the Internal Revenue Code of 1986, as amended garding the willful unauthorized disclosure and State officer, and by subsection (a). Such report shall— inspection of returns and return information, ‘‘(ii) for the purpose of, and only to the extent (1) evaluate (on the basis of random sampling) including the number, status, and results of— necessary in, the administration of State laws whether— ‘‘(A) administrative investigations, (A) the amendment made by subsection (a) is ‘‘(B) civil lawsuits brought under section 7431 regulating such organizations. achieving the purposes of this section; (including the amounts for which such lawsuits Such information may only be inspected by or (B) requesters and submitters for such disclo- were settled and the amounts of damages disclosed to representatives of the appropriate sure are continuing to evade the purposes of awarded), and State officer designated as the individuals who this section and, if so, how; and ‘‘(C) criminal prosecutions.’’. are to inspect or to receive the returns or return (f) EFFECTIVE DATES.— (C) the sanctions for violations of such re- information under this paragraph on behalf of (1) NOTICE.—The amendment made by sub- quirements are adequate; and such officer. Such representatives shall not in- section (a) shall apply to determinations made (2) include such recommendations that the clude any contractor or agent. after the date which is 180 days after the date Secretary of the Treasury considers necessary or ‘‘(D) DISCLOSURES OTHER THAN BY REQUEST.— of the enactment of this Act. appropriate to better achieve the purposes of The Secretary may make available for inspec- (2) EXHAUSTION OF REMEDIES AND BURDEN OF this section. tion or disclose returns and return information PROOF.—The amendments made by subsections (d) SUNSET OF EXISTING CONSENTS.—Notwith- of an organization to which paragraph (1) ap- (b) and (d) shall apply to inspections and disclo- standing any other provision of law, any re- plies to an appropriate State officer of any State sures occurring on and after the date which is quest for or consent to disclose any return or re- if the Secretary determines that such inspection 180 days after the date of the enactment of this turn information under section 6103(c) of the In- or disclosure may facilitate the resolution of Act. ternal Revenue Code of 1986 made before the Federal or State issues relating to the tax-ex- (3) PAYMENT AUTHORITY.—The amendment date of the enactment of this Act shall remain in made by subsection (c)(1) shall take effect on empt status of such organization. ‘‘(3) DISCLOSURE WITH RESPECT TO CERTAIN effect until the earlier of the date such request the date which is 180 days after the date of the OTHER EXEMPT ORGANIZATIONS.—Upon written or consent is otherwise terminated or the date enactment of this Act. request by an appropriate State officer, the Sec- which is 3 years after such date of enactment. (4) REPORTS.—The amendment made by sub- (e) EFFECTIVE DATE.—The amendments made section (e) shall apply to calendar years ending retary may make available for inspection or dis- by this section shall apply to requests and con- after the date which is 180 days after the date closure returns and return information of an or- sents made after the date which is 3 months of the enactment of this Act. ganization described in paragraph (2), (4), (6), after the date of the enactment of this Act. (7), (8), (10), or (13) of section 501(c) for the pur- SEC. 408. EXPANSION OF DISCLOSURE IN EMER- SEC. 407. CIVIL DAMAGES FOR UNAUTHORIZED GENCY CIRCUMSTANCES. pose of, and to the extent necessary in, the ad- DISCLOSURE OR INSPECTION. (a) IN GENERAL.—Section 6103(i)(3)(B)(i) (re- ministration of State laws regulating the solici- (a) NOTICE TO TAXPAYER.—Subsection (e) of lating to danger of death or physical injury) is tation or administration of the charitable funds section 7431 (relating to notification of unlawful amended by striking ‘‘or State law enforcement or charitable assets of such organizations. Such inspection and disclosure) is amended by adding agency’’ and inserting ‘‘, State, or local law en- information may be inspected only by or dis- at the end the following: ‘‘The Secretary shall forcement agency’’. closed only to representatives of the appropriate also notify such taxpayer if the Internal Rev- (b) CONFORMING AMENDMENTS.—Section State officer designated as the individuals who enue Service or, upon notice to the Secretary by 6103(p)(4) is amended— are to inspect or to receive the returns or return a Federal or State agency, if such Federal or (1) by striking ‘‘(i)(3)(B)(i) or (7)(A)(ii)’’ and information under this paragraph on behalf of State agency, proposes an administrative deter- inserting ‘‘(i)(7)(A)(ii)’’, and such officer. Such representatives shall not in- mination as to disciplinary or adverse action (2) by striking ‘‘, (i)(3)(B)(i),’’. clude any contractor or agent. against an employee arising from the employee’s (c) EFFECTIVE DATE.—The amendment made ‘‘(4) USE IN CIVIL JUDICIAL AND ADMINISTRA- unauthorized inspection or disclosure of the tax- by this section shall take effect on the date of TIVE PROCEEDINGS.—Returns and return infor- payer’s return or return information. The notice the enactment of this Act. mation disclosed pursuant to this subsection described in this subsection shall include the SEC. 409. DISCLOSURE OF TAXPAYER IDENTITY may be disclosed in civil administrative and civil date of the inspection or disclosure and the FOR TAX REFUND PURPOSES. judicial proceedings pertaining to the enforce- rights of the taxpayer under such administrative (a) IN GENERAL.—Section 6103(m)(1) (relating ment of State laws regulating such organiza- determination.’’. to tax refunds) is amended by striking ‘‘tax- tions in a manner prescribed by the Secretary

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00141 Fmt 4624 Sfmt 6333 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6034 CONGRESSIONAL RECORD — SENATE May 20, 2004 similar to that for tax administration pro- tigation when contacting third parties in writ- ‘‘(ii) the taxpayer is a citizen or national of ceedings under section 6103(h)(4). ing or in person.’’. the United States. ‘‘(5) NO DISCLOSURE IF IMPAIRMENT.—Returns (b) CONSTRUCTION.—The amendments made by ‘‘(c) QUALIFYING CHILD.—For purposes of this and return information shall not be disclosed this section shall not be construed to create any section— under this subsection, or in any proceeding de- inference with respect to the interpretation of ‘‘(1) IN GENERAL.—The term ‘qualifying child’ scribed in paragraph (4), to the extent that the any provision of law as such provision was in means, with respect to any taxpayer for any Secretary determines that such disclosure would effect on the day before the date of enactment of taxable year, an individual— seriously impair Federal tax administration. this Act. ‘‘(A) who bears a relationship to the taxpayer ‘‘(6) DEFINITIONS.—For purposes of this sub- (c) EFFECTIVE DATE.—The amendments made described in paragraph (2), section— by this section shall take effect on the date of ‘‘(B) who has the same principal place of ‘‘(A) RETURN AND RETURN INFORMATION.—The the enactment of this Act. abode as the taxpayer for more than one-half of terms ‘return’ and ‘return information’ have the SEC. 413. TAXPAYER IDENTIFICATION NUMBER such taxable year, respective meanings given to such terms by sec- MATCHING. ‘‘(C) who meets the age requirements of para- tion 6103(b). (a) IN GENERAL.—Section 6103(k) (relating to graph (3), and ‘‘(B) APPROPRIATE STATE OFFICER.—The term disclosure of certain returns and return infor- ‘‘(D) who has not provided over one-half of ‘appropriate State officer’ means— mation for tax administration purposes) is such individual’s own support for the calendar ‘‘(i) the State attorney general, amended by adding at the end the following year in which the taxable year of the taxpayer ‘‘(ii) in the case of an organization to which new paragraph: begins. paragraph (1) applies, any other State official ‘‘(10) TIN MATCHING.—The Secretary may dis- ‘‘(2) RELATIONSHIP.—For purposes of para- charged with overseeing organizations of the close to any person required to provide a TIN graph (1)(A), an individual bears a relationship type described in section 501(c)(3), and (as defined in section 7701(a)(41)) to the Sec- to the taxpayer described in this paragraph if ‘‘(iii) in the case of an organization to which retary whether such information matches such individual is— paragraph (3) applies, the head of an agency records maintained by the Secretary.’’. ‘‘(A) a child of the taxpayer or a descendant designated by the State attorney general as hav- (b) EFFECTIVE DATE.—The amendment made of such a child, or ing primary responsibility for overseeing the so- by this section shall take effect on the date of ‘‘(B) a brother, sister, stepbrother, or step- licitation of funds for charitable purposes.’’. the enactment of this Act. sister of the taxpayer or a descendant of any such relative. (b) CONFORMING AMENDMENTS.— SEC. 414. FORM 8300 DISCLOSURES. (1) Subsection (a) of section 6103 is amended— ‘‘(3) AGE REQUIREMENTS.— (a) IN GENERAL.—Section 6103(p)(4) (relating (A) by inserting ‘‘or any appropriate State of- ‘‘(A) IN GENERAL.—For purposes of paragraph to safeguards) is amended by striking ‘‘(15),’’ (1)(C), an individual meets the requirements of ficer who has or had access to returns or return both places it appears. information under section 6104(c)’’ after ‘‘this this paragraph if such individual— (b) EFFECTIVE DATE.—The amendment made section’’ in paragraph (2), and ‘‘(i) has not attained the age of 19 as of the by this section shall take effect on the date of close of the calendar year in which the taxable (B) by striking ‘‘or subsection (n)’’ in para- the enactment of this Act. graph (3) and inserting ‘‘subsection (n), or sec- year of the taxpayer begins, or tion 6104(c)’’. SEC. 415. DISCLOSURE TO LAW ENFORCEMENT ‘‘(ii) is a student who has not attained the age AGENCIES REGARDING TERRORIST of 24 as of the close of such calendar year. (2) Subparagraph (A) of section 6103(p)(3) is ACTIVITIES. amended by inserting ‘‘and section 6104(c)’’ ‘‘(B) SPECIAL RULE FOR DISABLED.—In the (a) IN GENERAL.—Section 6103(i)(7)(A) (relat- case of an individual who is permanently and after ‘‘section’’ in the first sentence. ing to disclosure to law enforcement agencies) is (3) Paragraph (4) of section 6103(p), as amend- totally disabled (as defined in section 22(e)(3)) amended by adding at the end the following at any time during such calendar year, the reed by section 202(b)(2)(B) of the Trade Act of new clause: 2002 (Public Law 107–210; 116 Stat. 961), is quirements of subparagraph (A) shall be treated ‘‘(v) TAXPAYER IDENTITY.—For purposes of as met with respect to such individual. amended by striking ‘‘or (17)’’ after ‘‘any other this subparagraph, a taxpayer’s identity shall person described in subsection (l)(16)’’ each ‘‘(4) SPECIAL RULE RELATING TO 2 OR MORE not be treated as taxpayer return information.’’. CLAIMING QUALIFYING CHILD.— place it appears and inserting ‘‘or (18) or any (b) EFFECTIVE DATE.—The amendment made appropriate State officer (as defined in section ‘‘(A) IN GENERAL.—Except as provided in sub- by this section shall take effect on the date of paragraph (B) and subsection (e), if (but for this 6104(c))’’. the enactment of this Act. (4) The heading for paragraph (1) of section paragraph) an individual may be and is claimed 6104(c) is amended by inserting ‘‘FOR CHARI- TITLE V—SIMPLIFICATION as a qualifying child by 2 or more taxpayers for TABLE ORGANIZATIONS’’. Subtitle A—Uniform Definition of Child a taxable year beginning in the same calendar year, such individual shall be treated as the (5) Paragraph (2) of section 7213(a) is amend- SEC. 501. UNIFORM DEFINITION OF CHILD, ETC. qualifying child of the taxpayer who is— ed by inserting ‘‘or under section 6104(c)’’ after Section 152 is amended to read as follows: ‘‘(i) a parent of the individual, or ‘‘6103’’. ‘‘SEC. 152. DEPENDENT DEFINED. (6) Paragraph (2) of section 7213A(a) is ‘‘(ii) if clause (i) does not apply, the taxpayer ‘‘(a) IN GENERAL.—For purposes of this sub- amended by inserting ‘‘or 6104(c)’’ after ‘‘6103’’. with the highest adjusted gross income for such title, the term ‘dependent’ means— (7) Paragraph (2) of section 7431(a) is amend- taxable year. ‘‘(1) a qualifying child, or ed by inserting ‘‘(including any disclosure in ‘‘(B) MORE THAN 1 PARENT CLAIMING QUALI- ‘‘(2) a qualifying relative. violation of section 6104(c))’’ after ‘‘6103’’. FYING CHILD.—If the parents claiming any ‘‘(b) EXCEPTIONS.—For purposes of this sec- (c) EFFECTIVE DATE.—The amendments made qualifying child do not file a joint return to- tion— by this section shall take effect on the date of gether, such child shall be treated as the quali- ‘‘(1) DEPENDENTS INELIGIBLE.—If an indi- the enactment of this Act but shall not apply to fying child of— vidual is a dependent of a taxpayer for any tax- requests made before such date. ‘‘(i) the parent with whom the child resided able year of such taxpayer beginning in a cal- for the longest period of time during the taxable SEC. 411. TREATMENT OF PUBLIC RECORDS. endar year, such individual shall be treated as year, or (a) IN GENERAL.—Section 6103(b) (relating to having no dependents for any taxable year of ‘‘(ii) if the child resides with both parents for definitions) is amended by adding at the end the such individual beginning in such calendar the same amount of time during such taxable following new paragraph: year. year, the parent with the highest adjusted gross ‘‘(12) TREATMENT OF PUBLIC RECORDS.—Re- ‘‘(2) MARRIED DEPENDENTS.—An individual income. turns and return information shall not be sub- shall not be treated as a dependent of a tax- ‘‘(d) QUALIFYING RELATIVE.—For purposes of ject to subsection (a) if disclosed— payer under subsection (a) if such individual this section— ‘‘(A) in the course of any judicial or adminis- has made a joint return with the individual’s ‘‘(1) IN GENERAL.—The term ‘qualifying rel- trative proceeding or pursuant to tax adminis- spouse under section 6013 for the taxable year ative’ means, with respect to any taxpayer for tration activities, and beginning in the calendar year in which the any taxable year, an individual— ‘‘(B) properly made part of the public taxable year of the taxpayer begins. ‘‘(A) who bears a relationship to the taxpayer record.’’. ‘‘(3) CITIZENS OR NATIONALS OF OTHER COUN- described in paragraph (2), (b) EFFECTIVE DATE.—The amendment made TRIES.— ‘‘(B) whose gross income for the calendar year by this section shall take effect before, on, and ‘‘(A) IN GENERAL.—The term ‘dependent’ does in which such taxable year begins is less than after the date of the enactment of this Act. not include an individual who is not a citizen or the exemption amount (as defined in section SEC. 412. EMPLOYEE IDENTITY DISCLOSURES. national of the United States unless such indi- 151(d)), (a) IN GENERAL.—Section 6103 (confidentiality vidual is a resident of the United States or a ‘‘(C) with respect to whom the taxpayer pro- and disclosure of returns and return informa- country contiguous to the United States. vides over one-half of the individual’s support tion) is amended by redesignating subsection (q) ‘‘(B) EXCEPTION FOR ADOPTED CHILD.—Sub- for the calendar year in which such taxable as subsection (r) and by inserting after subparagraph (A) shall not exclude any child of a year begins, and section (p) the following new subsection: taxpayer (within the meaning of subsection ‘‘(D) who is not a qualifying child of such ‘‘(q) EMPLOYEE IDENTITY DISCLOSURES.— (f)(1)(B)) from the definition of ‘dependent’ if— taxpayer or of any other taxpayer for any tax- Nothing in this section may be construed to pro- ‘‘(i) for the taxable year of the taxpayer, the able year beginning in the calendar year in hibit agents of the Department of the Treasury child has the same principal place of abode as which such taxable year begins. from identifying themselves, their organiza- the taxpayer and is a member of the taxpayer’s ‘‘(2) RELATIONSHIP.—For purposes of para- tional affiliation, and the nature of an inves- household, and graph (1)(A), an individual bears a relationship

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00142 Fmt 4624 Sfmt 6333 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6035 to the taxpayer described in this paragraph if ‘‘(A) a child receives over one-half of the tion described in section 170(b)(1)(A)(ii) or of a the individual is any of the following with re- child’s support during the calendar year from State or political subdivision of a State. spect to the taxpayer: the child’s parents— ‘‘(3) DETERMINATION OF HOUSEHOLD STATUS.— ‘‘(A) A child or a descendant of a child. ‘‘(i) who are divorced or legally separated An individual shall not be treated as a member ‘‘(B) A brother, sister, stepbrother, or step- under a decree of divorce or separate mainte- of the taxpayer’s household if at any time dur- sister. nance, ing the taxable year of the taxpayer the rela- ‘‘(C) The father or mother, or an ancestor of ‘‘(ii) who are separated under a written sepa- tionship between such individual and the tax- either. ration agreement, or payer is in violation of local law. ‘‘(D) A stepfather or stepmother. ‘‘(iii) who live apart at all times during the ‘‘(4) BROTHER AND SISTER.—The terms ‘broth- ‘‘(E) A son or daughter of a brother or sister last 6 months of the calendar year, and er’ and ‘sister’ include a brother or sister by the of the taxpayer. ‘‘(B) such child is in the custody of 1 or both half blood. ‘‘(F) A brother or sister of the father or moth- of the child’s parents for more than one-half of ‘‘(5) SPECIAL SUPPORT TEST IN CASE OF STU- er of the taxpayer. the calendar year, DENTS.—For purposes of subsections (c)(1)(D) ‘‘(G) A son-in-law, daughter-in-law, father- such child shall be treated as being the quali- and (d)(1)(C), in the case of an individual who in-law, mother-in-law, brother-in-law, or sister- fying child or qualifying relative of the non- is— in-law. custodial parent for a calendar year if the re- ‘‘(A) a child of the taxpayer, and ‘‘(B) a student, ‘‘(H) An individual (other than an individual quirements described in paragraph (2) are met. who at any time during the taxable year was ‘‘(2) REQUIREMENTS.—For purposes of para- amounts received as scholarships for study at the spouse, determined without regard to section graph (1), the requirements described in this an educational organization described in section 7703, of the taxpayer) who, for the taxable year paragraph are met if— 170(b)(1)(A)(ii) shall not be taken into account. ‘‘(6) TREATMENT OF MISSING CHILDREN.— of the taxpayer, has the same principal place of ‘‘(A) a decree of divorce or separate mainte- ‘‘(A) IN GENERAL.—Solely for the purposes re- abode as the taxpayer and is a member of the nance or written separation agreement between ferred to in subparagraph (B), a child of the taxpayer’s household. the parents applicable to the taxable year begin- taxpayer— ‘‘(3) SPECIAL RULE RELATING TO MULTIPLE ning in such calendar year provides that— SUPPORT AGREEMENTS.—For purposes of para- ‘‘(i) who is presumed by law enforcement au- ‘‘(i) the noncustodial parent shall be entitled thorities to have been kidnapped by someone graph (1)(C), over one-half of the support of an to any deduction allowable under section 151 for individual for a calendar year shall be treated who is not a member of the family of such child such child, or or the taxpayer, and as received from the taxpayer if— ‘‘(ii) the custodial parent will sign a written ‘‘(A) no one person contributed over one-half ‘‘(ii) who had, for the taxable year in which declaration (in such manner and form as the the kidnapping occurred, the same principal of such support, Secretary may prescribe) that such parent will ‘‘(B) over one-half of such support was replace of abode as the taxpayer for more than not claim such child as a dependent for such one-half of the portion of such year before the ceived from 2 or more persons each of whom, but taxable year, or for the fact that any such person alone did not date of the kidnapping, ‘‘(B) in the case of such an agreement exe- shall be treated as meeting the requirement of contribute over one-half of such support, would cuted before January 1, 1985, the noncustodial have been entitled to claim such individual as a subsection (c)(1)(B) with respect to a taxpayer parent provides at least $600 for the support of for all taxable years ending during the period dependent for a taxable year beginning in such such child during such calendar year. calendar year, that the child is kidnapped. ‘‘(C) the taxpayer contributed over 10 percent For purposes of subparagraph (B), amounts ex- ‘‘(B) PURPOSES.—Subparagraph (A) shall of such support, and pended for the support of a child or children apply solely for purposes of determining— ‘‘(D) each person described in subparagraph shall be treated as received from the noncusto- ‘‘(i) the deduction under section 151(c), ‘‘(ii) the credit under section 24 (relating to (B) (other than the taxpayer) who contributed dial parent to the extent that such parent pro- child tax credit), over 10 percent of such support files a written vided amounts for such support. ‘‘(iii) whether an individual is a surviving declaration (in such manner and form as the ‘‘(3) CUSTODIAL PARENT AND NONCUSTODIAL spouse or a head of a household (as such terms Secretary may by regulations prescribe) that PARENT.—For purposes of this subsection— ‘‘(A) CUSTODIAL PARENT.—The term ‘custodial are defined in section 2), and such person will not claim such individual as a ‘‘(iv) the earned income credit under section dependent for any taxable year beginning in parent’ means the parent with whom a child shared the same principal place of abode for the 32. such calendar year. ‘‘(C) COMPARABLE TREATMENT OF CERTAIN greater portion of the calendar year. ‘‘(4) SPECIAL RULE RELATING TO INCOME OF QUALIFYING RELATIVES.—For purposes of this ‘‘(B) NONCUSTODIAL PARENT.—The term ‘non- HANDICAPPED DEPENDENTS.— section, a child of the taxpayer— custodial parent’ means the parent who is not ‘‘(A) IN GENERAL.—For purposes of paragraph ‘‘(i) who is presumed by law enforcement au- the custodial parent. (1)(B), the gross income of an individual who is thorities to have been kidnapped by someone ‘‘(4) EXCEPTION FOR MULTIPLE-SUPPORT permanently and totally disabled (as defined in who is not a member of the family of such child AGREEMENTS.—This subsection shall not apply section 22(e)(3)) at any time during the taxable or the taxpayer, and year shall not include income attributable to in any case where over one-half of the support ‘‘(ii) who was (without regard to this para- services performed by the individual at a shel- of the child is treated as having been received graph) a qualifying relative of the taxpayer for tered workshop if— from a taxpayer under the provision of sub- the portion of the taxable year before the date ‘‘(i) the availability of medical care at such section (d)(3). of the kidnapping, ‘‘(f) OTHER DEFINITIONS AND RULES.—For workshop is the principal reason for the individ- shall be treated as a qualifying relative of the purposes of this section— ual’s presence there, and taxpayer for all taxable years ending during the ‘‘(1) CHILD DEFINED.— ‘‘(ii) the income arises solely from activities at period that the child is kidnapped. ‘‘(A) IN GENERAL.—The term ‘child’ means an such workshop which are incident to such med- ‘‘(D) TERMINATION OF TREATMENT.—Subpara- ical care. individual who is— graphs (A) and (C) shall cease to apply as of the ‘‘(B) SHELTERED WORKSHOP DEFINED.—For ‘‘(i) a son, daughter, stepson, or stepdaughter first taxable year of the taxpayer beginning purposes of subparagraph (A), the term ‘shel- of the taxpayer, or after the calendar year in which there is a de- tered workshop’ means a school— ‘‘(ii) an eligible foster child of the taxpayer. termination that the child is dead (or, if earlier, ‘‘(i) which provides special instruction or ‘‘(B) ADOPTED CHILD.—In determining wheth- in which the child would have attained age 18). training designed to alleviate the disability of er any of the relationships specified in subpara- ‘‘(7) CROSS REFERENCES.— graph (A)(i) or paragraph (4) exists, a legally the individual, and ‘‘For provision treating child as dependent of adopted individual of the taxpayer, or an indi- ‘‘(ii) which is operated by an organization de- both parents for purposes of certain provi- vidual who is lawfully placed with the taxpayer scribed in section 501(c)(3) and exempt from tax sions, see sections 105(b), 132(h)(2)(B), and for legal adoption by the taxpayer, shall be under section 501(a), or by a State, a possession 213(d)(5).’’. of the United States, any political subdivision of treated as a child of such individual by blood. SEC. 502. MODIFICATIONS OF DEFINITION OF ‘‘(C) ELIGIBLE FOSTER CHILD.—For purposes of any of the foregoing, the United States, or the HEAD OF HOUSEHOLD. subparagraph (A)(ii), the term ‘eligible foster District of Columbia. (a) HEAD OF HOUSEHOLD.—Clause (i) of sec- ‘‘(5) SPECIAL RULES FOR SUPPORT.—For pur- child’ means an individual who is placed with tion 2(b)(1)(A) is amended to read as follows: poses of this subsection— the taxpayer by an authorized placement agen- ‘‘(i) a qualifying child of the individual (as ‘‘(A) payments to a spouse which are includ- cy or by judgment, decree, or other order of any defined in section 152(c), determined without re- ible in the gross income of such spouse under court of competent jurisdiction. gard to section 152(e)), but not if such child— section 71 or 682 shall not be treated as a pay- ‘‘(2) STUDENT DEFINED.—The term ‘student’ ‘‘(I) is married at the close of the taxpayer’s ment by the payor spouse for the support of any means an individual who during each of 5 cal- taxable year, and dependent, and endar months during the calendar year in ‘‘(II) is not a dependent of such individual by ‘‘(B) in the case of the remarriage of a parent, which the taxable year of the taxpayer begins— reason of section 152(b)(2) or 152(b)(3), or both, support of a child received from the parent’s ‘‘(A) is a full-time student at an educational or’’. spouse shall be treated as received from the par- organization described in section (b) CONFORMING AMENDMENTS.— ent. 170(b)(1)(A)(ii), or (1) Section 2(b)(2) is amended by striking sub- ‘‘(e) SPECIAL RULE FOR DIVORCED PARENTS.— ‘‘(B) is pursuing a full-time course of institu- paragraph (A) and by redesignating subpara- ‘‘(1) IN GENERAL.—Notwithstanding subsection tional on-farm training under the supervision of graphs (B), (C), and (D) as subparagraphs (A), (c)(4) or (d)(1)(C), if— an accredited agent of an educational organiza- (B), and (C), respectively.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00143 Fmt 4624 Sfmt 6333 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6036 CONGRESSIONAL RECORD — SENATE May 20, 2004 (2) Clauses (i) and (ii) of section 2(b)(3)(B) are (3) Section 32(m) is amended by striking ‘‘sub- (20) Section 221(d)(4) is amended by inserting amended to read as follows: sections (c)(1)(F)’’ and inserting ‘‘subsections ‘‘(determined without regard to subsections ‘‘(i) subparagraph (H) of section 152(d)(2), or (c)(1)(E)’’. (b)(1), (b)(2), and (d)(1)(B) thereof)’’ after ‘‘sec- ‘‘(ii) paragraph (3) of section 152(d).’’. SEC. 506. MODIFICATIONS OF DEDUCTION FOR tion 152’’. SEC. 503. MODIFICATIONS OF DEPENDENT CARE PERSONAL EXEMPTION FOR DE- (21) Section 529(e)(2)(B) is amended by strik- CREDIT. PENDENTS. ing ‘‘paragraphs (1) through (8) of section (a) IN GENERAL.—Section 21(a)(1) is amended Subsection (c) of section 151 is amended to 152(a)’’ and inserting ‘‘subparagraphs (A) by striking ‘‘In the case of an individual who read as follows: through (G) of section 152(d)(2)’’. maintains a household which includes as a ‘‘(c) ADDITIONAL EXEMPTION FOR DEPEND- (22) Section 2032A(c)(7)(D) is amended by member one or more qualifying individuals (as ENTS.—An exemption of the exemption amount striking ‘‘section 151(c)(4)’’ and inserting ‘‘sec- defined in subsection (b)(1))’’ and inserting ‘‘In for each individual who is a dependent (as de- tion 152(f)(2)’’. the case of an individual for which there are 1 fined in section 152) of the taxpayer for the tax- (23) Section 2057(d)(2)(B) is amended by in- or more qualifying individuals (as defined in able year.’’. serting ‘‘, determined without regard to sub- subsection (b)(1)) with respect to such indi- SEC. 507. TECHNICAL AND CONFORMING AMEND- sections (b)(1), (b)(2), and (d)(1)(B) thereof’’ vidual’’. MENTS. after ‘‘section 152’’. (b) QUALIFYING INDIVIDUAL.—Paragraph (1) (1) Section 2(a)(1)(B)(i) is amended by insert- (24) Section 7701(a)(17) is amended by striking of section 21(b) is amended to read as follows: ing ‘‘, determined without regard to subsections ‘‘152(b)(4), 682,’’ and inserting ‘‘682’’. ‘‘(1) QUALIFYING INDIVIDUAL.—The term (b)(1), (b)(2), and (d)(1)(B) thereof’’ after ‘‘sec- (25) Section 7702B(f)(2)(C)(iii) is amended by ‘qualifying individual’ means— tion 152’’. striking ‘‘paragraphs (1) through (8) of section ‘‘(A) a dependent of the taxpayer (as defined (2) Section 21(e)(5) is amended— 152(a)’’ and inserting ‘‘subparagraphs (A) in section 152(a)(1)) who has not attained age (A) by striking ‘‘paragraph (2) or (4) of’’ in through (G) of section 152(d)(2)’’. 13, subparagraph (A), and (26) Section 7703(b)(1) is amended— ‘‘(B) a dependent of the taxpayer who is (B) by striking ‘‘within the meaning of section (A) by striking ‘‘151(c)(3)’’ and inserting physically or mentally incapable of caring for 152(e)(1)’’ and inserting ‘‘as defined in section ‘‘152(f)(1)’’, and himself or herself and who has the same prin- 152(e)(3)(A)’’. (B) by striking ‘‘paragraph (2) or (4) of’’. cipal place of abode as the taxpayer for more (3) Section 21(e)(6)(B) is amended by striking SEC. 508. EFFECTIVE DATE. than one-half of such taxable year, or ‘‘section 151(c)(3)’’ and inserting ‘‘section The amendments made by this subtitle shall ‘‘(C) the spouse of the taxpayer, if the spouse 152(f)(1)’’. apply to taxable years beginning after December is physically or mentally incapable of caring for (4) Section 25B(c)(2)(B) is amended by striking 31, 2004. himself or herself and who has the same prin- ‘‘151(c)(4)’’ and inserting ‘‘152(f)(2)’’. cipal place of abode as the taxpayer for more (5)(A) Subparagraphs (A) and (B) of section Subtitle B—Simplification Through than one-half of such taxable year.’’. 51(i)(1) are each amended by striking ‘‘para- Elimination of Inoperative Provisions (c) CONFORMING AMENDMENT.—Paragraph (1) graphs (1) through (8) of section 152(a)’’ both SEC. 511. SIMPLIFICATION THROUGH ELIMI- of section 21(e) is amended to read as follows: places it appears and inserting ‘‘subparagraphs NATION OF INOPERATIVE PROVI- ‘‘(1) PLACE OF ABODE.—An individual shall (A) through (G) of section 152(d)(2)’’. SIONS. not be treated as having the same principal (B) Section 51(i)(1)(C) is amended by striking (a) IN GENERAL.— place of abode of the taxpayer if at any time ‘‘152(a)(9)’’ and inserting ‘‘152(d)(2)(H)’’. (1) ADJUSTMENTS IN TAX TABLES SO THAT IN- during the taxable year of the taxpayer the rela- (6) Section 72(t)(2)(D)(i)(III) is amended by in- FLATION WILL NOT RESULT IN TAX INCREASES.— tionship between the individual and the tax- serting ‘‘, determined without regard to sub- Paragraph (7) of section 1(f) is amended to read payer is in violation of local law.’’. sections (b)(1), (b)(2), and (d)(1)(B) thereof’’ as follows: SEC. 504. MODIFICATIONS OF CHILD TAX CREDIT. after ‘‘section 152’’. ‘‘(7) SPECIAL RULE FOR CERTAIN BRACKETS.— (a) IN GENERAL.—Paragraph (1) of section (7) Section 72(t)(7)(A)(iii) is amended by strik- In prescribing tables under paragraph (1) which 24(c) is amended to read as follows: ing ‘‘151(c)(3)’’ and inserting ‘‘152(f)(1)’’. apply to taxable years beginning in a calendar ‘‘(1) IN GENERAL.—The term ‘qualifying child’ (8) Section 42(i)(3)(D)(ii)(I) is amended by in- year after 1994, the cost-of-living adjustment means a qualifying child of the taxpayer (as de- serting ‘‘, determined without regard to sub- used in making adjustments to the dollar fined in section 152(c)) who has not attained age sections (b)(1), (b)(2), and (d)(1)(B) thereof’’ amounts at which the 36 percent rate bracket 17.’’. after ‘‘section 152’’. begins or at which the 39.6 percent rate bracket (b) CONFORMING AMENDMENT.—Section (9) Subsections (b) and (c)(1) of section 105 are begins shall be determined under paragraph (3) 24(c)(2) is amended by striking ‘‘the first sen- amended by inserting ‘‘, determined without re- by substituting ‘1993’ for ‘1992’.’’. tence of section 152(b)(3)’’ and inserting ‘‘sub- gard to subsections (b)(1), (b)(2), and (d)(1)(B) (2) CREDIT FOR PRODUCING FUEL FROM NON- paragraph (A) of section 152(b)(3)’’. thereof’’ after ‘‘section 152’’. CONVENTIONAL SOURCE.—Section 29 is amended SEC. 505. MODIFICATIONS OF EARNED INCOME (10) Section 120(d)(4) is amended by inserting by striking subsection (e) and by redesignating CREDIT. ‘‘(determined without regard to subsections subsections (f) and (g) as subsections (e) and (f), (a) QUALIFYING CHILD.—Paragraph (3) of sec- (b)(1), (b)(2), and (d)(1)(B) thereof)’’ after ‘‘sec- respectively. tion 32(c) is amended to read as follows: tion 152’’. (3) EARNED INCOME CREDIT.—Paragraph (1) of ‘‘(3) QUALIFYING CHILD.— (11) Section 125(e)(1)(D) is amended by insert- section 32(b) is amended— ‘‘(A) IN GENERAL.—The term ‘qualifying child’ ing ‘‘, determined without regard to subsections (A) by striking subparagraphs (B) and (C), means a qualifying child of the taxpayer (as de- (b)(1), (b)(2), and (d)(1)(B) thereof’’ after ‘‘sec- and fined in section 152(c), determined without re- tion 152’’. (B) in subparagraph (A) by striking ‘‘(A) IN gard to paragraph (1)(D) thereof and section (12) Section 129(c)(2) is amended by striking GENERAL.—In the case of taxable years begin- 152(e)). ‘‘151(c)(3)’’ and inserting ‘‘152(f)(1)’’. ning after 1995’’ and moving the table 2 ems to ‘‘(B) MARRIED INDIVIDUAL.—The term ‘quali- (13) The first sentence of section 132(h)(2)(B) the left. fying child’ shall not include an individual who is amended by striking ‘‘151(c)(3)’’ and inserting (4) GENERAL BUSINESS CREDITS.—Subsection is married as of the close of the taxpayer’s tax- ‘‘152(f)(1)’’. (d) of section 38 is amended by striking para- able year unless the taxpayer is entitled to a de- (14) Section 153 is amended by striking paragraph (3). duction under section 151 for such taxable year graph (1) and by redesignating paragraphs (2), (5) CARRYBACK AND CARRYFORWARD OF UN- with respect to such individual (or would be so (3), and (4) as paragraphs (1), (2), and (3), re- USED CREDITS.—Subsection (d) of section 39 is entitled but for section 152(e)). spectively. amended by striking paragraphs (1) through (8) ‘‘(C) PLACE OF ABODE.—For purposes of sub- (15) Section 170(g)(1) is amended by inserting and by redesignating paragraphs (9) and (10) as paragraph (A), the requirements of section ‘‘(determined without regard to subsections paragraphs (1) and (2), respectively. 152(c)(1)(B) shall be met only if the principal (b)(1), (b)(2), and (d)(1)(B) thereof)’’ after ‘‘sec- (6) ADJUSTMENTS BASED ON ADJUSTED CURRENT place of abode is in the United States. tion 152’’. EARNINGS.—Clause (ii) of section 56(g)(4)(F) is ‘‘(D) IDENTIFICATION REQUIREMENTS.— (16) Section 170(g)(3) is amended by striking amended by striking ‘‘In the case of any taxable ‘‘(i) IN GENERAL.—A qualifying child shall not ‘‘paragraphs (1) through (8) of section 152(a)’’ year beginning after December 31, 1992, clause’’ be taken into account under subsection (b) un- and inserting ‘‘subparagraphs (A) through (G) and inserting ‘‘Clause’’. less the taxpayer includes the name, age, and of section 152(d)(2)’’. (7) ITEMS OF TAX PREFERENCE; DEPLETION.— TIN of the qualifying child on the return of tax (17) Section 213(a) is amended by inserting ‘‘, Paragraph (1) of section 57(a) is amended by for the taxable year. determined without regard to subsections (b)(1), striking ‘‘Effective with respect to taxable years ‘‘(ii) OTHER METHODS.—The Secretary may (b)(2), and (d)(1)(B) thereof’’ after ‘‘section beginning after December 31, 1992, this’’ and in- prescribe other methods for providing the infor- 152’’. serting ‘‘This’’. mation described in clause (i).’’. (18) The second sentence of section 213(d)(11) (8) INTANGIBLE DRILLING COSTS.— (b) CONFORMING AMENDMENTS.— is amended by striking ‘‘paragraphs (1) through (A) Clause (i) of section 57(a)(2)(E) is amended (1) Section 32(c)(1) is amended by striking sub- (8) of section 152(a)’’ and inserting ‘‘subpara- by striking ‘‘In the case of any taxable year be- paragraph (C) and by redesignating subparagraphs (A) through (G) of section 152(d)(2)’’. ginning after December 31, 1992, this’’ and in- graphs (D), (E), (F), and (G) as subparagraphs (19) Section 220(d)(2)(A) is amended by insert- serting ‘‘This’’. (C), (D), (E), and (F), respectively. ing ‘‘, determined without regard to subsections (B) Clause (ii) of section 57(a)(2)(E) is amend- (2) Section 32(c)(4) is amended by striking (b)(1), (b)(2), and (d)(1)(B) thereof’’ after ‘‘sec- ed by striking ‘‘(30 percent in the case of taxable ‘‘(3)(E)’’ and inserting ‘‘(3)(C)’’. tion 152’’. years beginning in 1993)’’.

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(9) ANNUITIES; CERTAIN PROCEEDS OF ENDOW- (ii) by striking ‘‘ending after August 2, 1989’’ (G) Sections 263(g)(2)(B)(iii), 277(a), 301(e)(2), MENT AND LIFE INSURANCE CONTRACTS.—Section in subsection (b)(1)(D)(i)(II) (as redesignated by 469(e)(4), 512(a)(3)(A), subparagraphs (A), (C), 72 is amended— clause (i)), and (D) of section 805(a)(4), 805(b)(5), (A) in subsection (c)(4) by striking ‘‘; except (iii) by striking ‘‘subparagraph (F)’’ in sub- 812(e)(2)(A), 815(c)(2)(A)(iii), 832(b)(5), that if such date was before January 1, 1954, section (b)(1)(G) (as redesignated by clause (i)) 833(b)(3)(E), 1059(b)(2)(B), and 1244(c)(2)(C) are then the annuity starting date is January 1, and inserting ‘‘subparagraph (E)’’, each amended by striking ‘‘, 244,’’ each place it 1954’’, and (iv) by striking subsection (g), and appears. (B) in subsection (g)(3) by striking ‘‘January (v) by striking subparagraph (F) of subsection (H) Section 805(a)(4)(B) is amended by strik- 1, 1954, or’’ and ‘‘, whichever is later’’. (h)(2). ing ‘‘, 244(a),’’ each place it appears. (10) ACCIDENT AND HEALTH PLANS.—Section (B) Section 172(h)(4) is amended by striking (I) Section 810(c)(2)(B) is amended by striking 105(f) is amended by striking ‘‘or (d)’’. ‘‘subsection (b)(1)(E)’’ each place it appears and ‘‘244 (relating to dividends on certain preferred (11) FLEXIBLE SPENDING ARRANGEMENTS.—Sec- inserting ‘‘subsection (b)(1)(D)’’. stock of public utilities),’’. tion 106(c)(1) is amended by striking ‘‘Effective (C) Section 172(i)(3) is amended by striking (29) ORGANIZATION EXPENSES.—Section 248(c) on and after January 1, 1997, gross’’ and insert- ‘‘subsection (b)(1)(G)’’ each place it appears and is amended by striking ‘‘beginning after Decem- ing ‘‘Gross’’. inserting ‘‘subsection (b)(1)(F)’’. ber 31, 1953,’’ and by striking the last sentence. (12) CERTAIN COMBAT ZONE COMPENSATION OF (D) Section 172(j) is amended by striking ‘‘sub- (30) BOND REPURCHASE PREMIUM.—Section MEMBERS OF THE ARMED FORCES.—Subsection (c) section (b)(1)(H)’’ each place it appears and in- 249(b)(1) is amended by striking ‘‘, in the case of of section 112 is amended— serting ‘‘subsection (b)(1)(G)’’. bonds or other evidences of indebtedness issued (A) by striking ‘‘(after June 24, 1950)’’ in (E) Section 172, as amended by subparagraphs after February 28, 1913,’’. paragraph (2), and (A) through (D) of this paragraph, is amended— (31) AMOUNT OF GAIN WHERE LOSS PREVIOUSLY (B) striking ‘‘such zone;’’ and all that follows (i) by redesignating subsections (h), (i), and DISALLOWED.—Section 267(d) is amended by in paragraph (3) and inserting ‘‘such zone.’’. (j) as subsections (g), (h), and (i), respectively, striking ‘‘(or by reason of section 24(b) of the In- (13) PRINCIPAL RESIDENCE.—Section 121(b)(3) (ii) by striking ‘‘subsection (h)’’ each place it ternal Revenue Code of 1939)’’ in paragraph (1), is amended— appears and inserting ‘‘subsection (g)’’, and by striking ‘‘after December 31, 1953,’’ in para- (A) by striking subparagraph (B); and (iii) by striking ‘‘subsection (i)’’ each place it graph (2), by striking the second sentence, and (B) in subparagraph (A) by striking ‘‘(A) IN appears and inserting ‘‘subsection (h)’’. by striking ‘‘or by reason of section 118 of the GENERAL.—’’ and moving the text 2 ems to the (24) RESEARCH AND EXPERIMENTAL EXPENDI- Internal Revenue Code of 1939’’ in the last sen- left. TURES.—Subparagraph (A) of section 174(a)(2) is tence. (14) CERTAIN REDUCED UNIFORMED SERVICES amended to read as follows: (32) ACQUISITIONS MADE TO EVADE OR AVOID RETIREMENT PAY.—Section 122(b)(1) is amended ‘‘(A) WITHOUT CONSENT.—A taxpayer may, INCOME TAX.—Paragraphs (1) and (2) of section by striking ‘‘after December 31, 1965,’’. without the consent of the Secretary, adopt the 269(a) are each amended by striking ‘‘or ac- (15) GREAT PLAINS CONSERVATION PROGRAM.— method provided in this subsection for his first quired on or after October 8, 1940,’’. Section 126(a) is amended by striking paragraph taxable year for which expenditures described in (33) INTEREST ON INDEBTEDNESS INCURRED BY (6) and by redesignating paragraphs (7), (8), (9), paragraph (1) are paid or incurred.’’. CORPORATIONS TO ACQUIRE STOCK OR ASSETS OF and (10) as paragraphs (6), (7), (8), and (9), re- (25) AMORTIZATION OF CERTAIN RESEARCH AND ANOTHER CORPORATION.—Section 279 is amend- spectively. EXPERIMENTAL EXPENDITURES.—Paragraph (2) ed— (16) MORTGAGE REVENUE BONDS FOR RESI- of section 174(b)(2) is amended by striking ‘‘be- (A) by striking ‘‘after December 31, 1967,’’ in DENCES IN FEDERAL DISASTER AREAS.—Section ginning after December 31, 1953’’. subsection (a)(2), 143(k) is amended by striking paragraph (11). (26) SOIL AND WATER CONSERVATION EXPENDI- (B) by striking ‘‘after October 9, 1969,’’ in sub- (17) TREBLE DAMAGE PAYMENTS UNDER THE TURES.—Paragraph (1) of section 175(d) is section (b), ANTITRUST LAW.—Section 162(g) is amended by amended to read as follows: (C) by striking ‘‘after October 9, 1969, and’’ in striking the last sentence. ‘‘(1) WITHOUT CONSENT.—A taxpayer may, subsection (d)(5), and (18) STATE LEGISLATORS’ TRAVEL EXPENSES without the consent of the Secretary, adopt the (D) by striking subsection (i) and by redesig- AWAY FROM HOME.—Paragraph (4) of section method provided in this section for his first tax- nating subsection (j) as subsection (i). 162(h) is amended by striking ‘‘For taxable years able year for which expenditures described in (34) SPECIAL RULES RELATING TO CORPORATE beginning after December 31, 1980, this’’ and in- subsection (a) are paid or incurred.’’. PREFERENCE ITEMS.—Paragraph (4) of section serting ‘‘This’’. (27) ACTIVITIES NOT ENGAGED IN FOR PROFIT.— 291(a) is amended by striking ‘‘In the case of (19) HEALTH INSURANCE COSTS OF SELF-EM- Section 183(e)(1) is amended by striking the last taxable years beginning after December 31, 1984, PLOYED INDIVIDUALS.—Paragraph (1) of section sentence. section’’ and inserting ‘‘Section’’. 162(l) is amended to read as follows: (28) DIVIDENDS RECEIVED ON CERTAIN PRE- (35) QUALIFICATIONS FOR TAX CREDIT EM- ‘‘(1) ALLOWANCE OF DEDUCTION.—In the case FERRED STOCK; AND DIVIDENDS PAID ON CERTAIN PLOYEE STOCK OWNERSHIP PLAN.—Section 409 is of an individual who is an employee within the PREFERRED STOCK OF PUBLIC UTILITIES.— amended by striking subsections (a), (g), and meaning of section 401(c)(1), there shall be al- (A) Sections 244 and 247 are hereby repealed (q). lowed as a deduction under this section an and the table of sections for part VIII of sub- (36) FUNDING STANDARDS.—Section 412(m)(4) is amount equal to 100 percent of the amount paid chapter B of chapter 1 is amended by striking amended— during the taxable year for insurance which the items relating to sections 244 and 247. (A) by striking ‘‘the applicable percentage’’ in constitutes medical care for the taxpayer and (B) Paragraph (5) of section 172(d) is amended subparagraph (A) and inserting ‘‘25 percent’’, the taxpayer’s spouse and dependents.’’. to read as follows: and (20) INTEREST.— ‘‘(5) COMPUTATION OF DEDUCTION FOR DIVI- (B) by striking subparagraph (C) and by re- (A) Section 163 is amended by striking para- DENDS RECEIVED.—The deductions allowed by designating subparagraph (D) as subparagraph graph (6) of subsection (d) and paragraph (5) section 243 (relating to dividends received by (C). (relating to phase-in of limitation) of subsection corporations) and 245 (relating to dividends re- (37) RETIREE HEALTH ACCOUNTS.—Section 420 (h). ceived from certain foreign corporations) shall is amended— (B) Section 56(b)(1)(C) is amended by striking be computed without regard to section 246(b) (A) by striking paragraph (4) in subsection (b) clause (ii) and by redesignating clauses (iii), (relating to limitation on aggregate amount of and by redesignating paragraph (5) as para- (iv), and (v) as clauses (ii), (iii), and (iv), re- deductions).’’. graph (4), and spectively. (C) Paragraph (1) of section 243(c) is amended (B) by amending paragraph (2) of subsection (21) CHARITABLE, ETC., CONTRIBUTIONS AND to read as follows: (c) to read as follows: GIFTS.—Section 170 is amended by striking sub- ‘‘(1) IN GENERAL.—In the case of any dividend ‘‘(2) REQUIREMENTS RELATING TO PENSION BEN- section (k). received from a 20-percent owned corporation, EFITS ACCRUING BEFORE TRANSFER.—The re- (22) AMORTIZABLE BOND PREMIUM.—Subpara- subsection (a)(1) shall be applied by substituting quirements of this paragraph are met if the plan graph (B) of section 171(b)(1) is amended to read ‘80 percent’ for ‘70 percent’.’’. provides that the accrued pension benefits of as follows: (D) Section 243(d) is amended by striking any participant or beneficiary under the plan ‘‘(B)(i) in the case of a bond described in subparagraph (4). become nonforfeitable in the same manner section (a)(2), with reference to the amount pay- (E) Section 246 is amended— which would be required if the plan had termi- able on maturity or earlier call date, and (i) by striking ‘‘, 244,’’ in subsection (a)(1), nated immediately before the qualified transfer ‘‘(ii) in the case of a bond described in sub- (ii) in subsection (b)(1)— (or in the case of a participant who separated section (a)(1), with reference to the amount pay- (I) by striking ‘‘sections 243(a)(1), and during the 1-year period ending on the date of able on maturity (or if it results in a smaller am- 244(a),’’ the first place it appears and inserting the transfer, immediately before such separa- ortizable bond premium attributable to the pe- ‘‘section 243(a)(1),’’, tion).’’. riod of earlier call date, with reference to the (II) by striking ‘‘244(a),’’ the second place it (38) EMPLOYEE STOCK PURCHASE PLANS.—Sec- amount payable on earlier call date), and’’. appears therein, and tion 423(a) is amended by striking ‘‘after Decem- (23) NET OPERATING LOSS CARRYBACKS AND (III) by striking ‘‘subsection (a) or (b) of sec- ber 31, 1963,’’. CARRYOVERS.— tion 245, and 247,’’ and inserting ‘‘and sub- (39) LIMITATION ON DEDUCTIONS FOR CERTAIN (A) Section 172 is amended— section (a) or (b) of section 245,’’, and FARMING.—Section 464 is amended— (i) by striking subparagraph (D) of subsection (iii) by striking ‘‘, 244,’’ in subsection (c)(1). (A) by striking ‘‘any farming syndicate (as de- (b)(1) and by redesignating subparagraphs (E), (F) Section 246A is amended by striking ‘‘, fined in subsection (c))’’ both places it appears (F), (G), and (H) as subparagraphs (D), (E), (F), 244,’’ both places it appears in subsections (a) in subsections (a) and (b) and inserting ‘‘any and (G), respectively, and (e). taxpayer to whom subsection (f) applies’’, and

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(B) by striking subsection (g). (54) PROPERTY USED IN THE TRADE OR BUSI- striking ‘‘for a taxable year which includes any (40) DEDUCTIONS LIMITED TO AMOUNT AT NESS AND INVOLUNTARY CONVERSIONS.—Subpara- period after December 31, 1984’’ in clause (i) and RISK.— graph (A) of section 1231(c)(2) is amended by by striking ‘‘in a taxable year beginning after (A) Paragraph (3) of section 465(c) is amended striking ‘‘beginning after December 31, 1981’’. December 31, 1984’’ in clause (ii). by striking ‘‘In the case of taxable years begin- (55) SALE OR EXCHANGE OF PATENTS.—Section (67) DISALLOWANCE OF THE BENEFITS OF THE ning after December 31, 1978, this’’ and inserting 1235 is amended— GRADUATED CORPORATE RATES AND ACCUMU- ‘‘This’’. (A) by striking subsection (c) and by redesig- LATED EARNINGS CREDIT.— (B) Paragraph (2) of section 465(e)(2)(A) is nating subsections (d) and (e) as (c) and (d), re- (A) Subsection (a) of section 1551 is amended amended by striking ‘‘beginning after December spectively, and by striking paragraph (1) and by redesignating 31, 1978’’. (B) by striking ‘‘(d)’’ in subsection (b) and in- paragraphs (2) and (3) as paragraphs (1) and (41) NUCLEAR DECOMMISSIONING COSTS.—Sec- serting ‘‘(c)’’. (2), respectively. tion 468A(e)(2) is amended— (56) DEALERS IN SECURITIES.—Subsection (b) of (B) Section 1551(b) is amended— (A) by striking ‘‘at the rate set forth in subsection 1236 is amended by striking ‘‘after No- (i) by striking ‘‘or (2)’’ in paragraph (1), and paragraph (B)’’ in subparagraph (A) and insert- vember 19, 1951,’’. (ii) by striking ‘‘(a)(3)’’ in paragraph (2) and ing ‘‘at a rate of 20 percent’’, and (57) SALE OF PATENTS.—Subsection (a) of sec- inserting ‘‘(a)(2)’’. (B) by striking subparagraph (B) and by re- tion 1249 is amended by striking ‘‘after Decem- (68) DEFINITION OF WAGES.—Section 3121(b) is designating subparagraphs (C) and (D) as sub- ber 31, 1962,’’. amended by striking paragraph (17). paragraphs (B) and (C), respectively. (58) GAIN FROM DISPOSITION OF FARM LAND.— (69) CREDITS AGAINST TAX.— (42) PASSIVE ACTIVITY LOSSES AND CREDITS Paragraph (1) of section 1252(a) is amended by (A) Paragraph (4) of section 3302(f) is amend- LIMITED.— striking ‘‘after December 31, 1969,’’ both places ed by striking ‘‘subsection—’’ and all that fol- (A) Section 469 is amended by striking sub- it appears. lows through ‘‘(A) IN GENERAL.—’’, by striking section (m). (59) TREATMENT OF AMOUNTS RECEIVED ON RE- subparagraph (B), by redesignating clauses (i) (B) Subsection (b) of section 58 is amended by TIREMENT OR SALE OR EXCHANGE OF DEBT IN- and (ii) as subparagraphs (A) and (B), respec- adding ‘‘and’’ at the end of paragraph (1), by STRUMENTS.—Subsection (c) of section 1271 is tively, and by moving the text of such subpara- striking paragraph (2), and by redesignating amended to read as follows: graphs (as so redesignated) 2 ems to the left. paragraph (3) as paragraph (2). ‘‘(c) SPECIAL RULE FOR CERTAIN OBLIGATIONS (B) Paragraph (5) of section 3302(f) is amend- (43) ADJUSTMENTS REQUIRED BY CHANGES IN WITH RESPECT TO WHICH ORIGINAL ISSUE DIS- ed by striking subparagraphs (D) and by redes- METHOD OF ACCOUNTING.—Section 481(b)(3) is COUNT NOT CURRENTLY INCLUDIBLE.— ignating subparagraph (E) as subparagraph ‘‘(1) IN GENERAL.—On the sale or exchange of amended by striking subparagraph (C). (D). debt instruments issued by a government or po- (44) EXEMPTION FROM TAX ON CORPORATIONS, (70) DOMESTIC SERVICE EMPLOYMENT TAXES.— litical subdivision thereof after December 31, CERTAIN TRUSTS, ETC.—Section 501 is amended Section 3510(b) is amended by striking para- by striking subsection (q). 1954, and before July 2, 1982, or by a corporation graph (4). after December 31, 1954, and on or before May (45) REQUIREMENTS FOR EXEMPTION.— (71) TAX ON FUEL USED IN COMMERCIAL TRANS- 27, 1969, any gain realized which does not ex- (A) Section 503(a)(1) is amended to read as fol- PORTATION ON INLAND WATERWAYS.—Section lows: ceed— 4042(b)(2)(A) is amended to read as follows: ‘‘(A) an amount equal to the original issue ‘‘(1) GENERAL RULE.—An organization de- ‘‘(A) The Inland Waterways Trust Fund fi- discount, or scribed in paragraph (17) or (18) of section 501(c) nancing rate is 20 cents per gallon.’’. ‘‘(B) if at the time of original issue there was or described in section 401(a) and referred to in (72) TRANSPORTATION BY AIR.—Section 4261(e) no intention to call the debt instrument before section 4975(g)(2) or (3) shall not be exempt from is amended— maturity, an amount which bears the same ratio taxation under section 501(a) if it has engaged (A) in paragraph (1) by striking subparagraph to the original issue discount as the number of in a prohibited transaction.’’. (C), and (B) Paragraph (2) of section 503(a) is amended complete months that the debt instrument was (B) by striking paragraph (5). held by the taxpayer bears to the number of by striking ‘‘described in section 501(c)(17) or (73) TAXES ON FAILURE TO DISTRIBUTE IN- complete months from the date of original issue (18) or paragraph (a)(1)(B)’’ and inserting ‘‘de- COME.—Section 4942 is amended— scribed in paragraph (1)’’. to the date of maturity, (A) by striking subsection (f)(2)(D), (C) Subsection (c) of section 503 is amended by shall be considered as ordinary income. (B) in subsection (g)(2)(A) by striking ‘‘For all striking ‘‘described in section 501(c)(17) or (18) ‘‘(2) SUBSECTION (a)(2)(A) NOT TO APPLY.—Sub- taxable years beginning on or after January 1, or subsection (a)(1)(B)’’ and inserting ‘‘de- section (a)(2)(A) shall not apply to any debt in- 1975, subject’’ and inserting ‘‘Subject’’, scribed in subsection (a)(1)’’. strument referred to in subparagraph (A) of this (C) in subsection (g) by striking paragraph (46) AMOUNTS RECEIVED BY SURVIVING ANNU- paragraph. (4), and ITANT UNDER JOINT AND SURVIVOR ANNUITY CON- ‘‘(3) CROSS REFERENCE.— (D) in subsection (i)(2) by striking ‘‘beginning TRACT.—Subparagraph (A) of section 691(d)(1) is ‘‘For current inclusion of original issue dis- after December 31, 1969, and’’. amended by striking ‘‘after December 31, 1953, count, see section 1272.’’. (74) TAXES ON TAXABLE EXPENDITURES.—Sec- and’’. (60) AMOUNT AND METHOD OF ADJUSTMENT.— tion 4945(f) is amended by striking ‘‘(excluding (47) INCOME TAXES OF MEMBERS OF ARMED Section 1314 is amended by striking subsection therefrom any preceding taxable year which be- FORCES ON DEATH.—Section 692(a)(1) is amended (d) and by redesignating subsection (e) as sub- gins before January 1, 1970)’’. by striking ‘‘after June 24, 1950’’. section (d). (75) RETURNS.—Subsection (a) of section 6039D (48) INSURANCE COMPANY TAXABLE INCOME.— (61) ELECTION; REVOCATION; TERMINATION.— is amended by striking ‘‘beginning after Decem- (A) Section 832(e) is amended by striking ‘‘of Clause (iii) of section 1362(d)(3) is amended by ber 31, 1984,’’. taxable years beginning after December 31, striking ‘‘unless’’ and all that follows and in- (76) INFORMATION RETURNS.—Subsection (c) of 1966,’’. serting ‘‘unless the corporation was an S cor- section 6060 is amended by striking ‘‘year’’ and (B) Section 832(e)(6) is amended by striking poration for such taxable year.’’. all that follows and inserting ‘‘year.’’. ‘‘In the case of any taxable year beginning after (62) OLD-AGE, SURVIVORS, AND DISABILITY IN- (77) ABATEMENTS.—Section 6404(f) is amended December 31, 1970, the’’ and by inserting ‘‘The’’. SURANCE.—Subsection (a) of section 1401 is by striking paragraph (3). (49) TAX ON NONRESIDENT ALIEN INDIVID- amended by striking ‘‘the following percent’’ (78) FAILURE BY CORPORATION TO PAY ESTI- UALS.—Subparagraph (B) of section 871(a)(1) is and all that follows and inserting ‘‘12.4 percent MATED INCOME TAX.—Clause (i) of section amended to read as follows: of the amount of the self-employment income for 6655(g)(4)(A) is amended by striking ‘‘(or the ‘‘(B) gains described in subsection (b) or (c) of such taxable year.’’. corresponding provisions of prior law)’’. section 631,’’. (63) HOSPITAL INSURANCE.—Subsection (b) of (79) RETIREMENT.—Section 7447(i)(3)(B)(ii) is (50) PROPERTY ON WHICH LESSEE HAS MADE IM- section 1401 is amended by striking ‘‘the fol- amended by striking ‘‘at 4 percent per annum to PROVEMENTS.—Section 1019 is amended by strik- lowing percent’’ and all that follows and insert- December 31, 1947, and at 3 percent per annum ing the last sentence. ing ‘‘2.9 percent of the amount of the self-em- thereafter’’, and inserting ‘‘at 3 percent per (51) INVOLUNTARY CONVERSION.—Section 1033 ployment income for such taxable year.’’. annum’’. is amended by striking subsection (j) and by re- (64) MINISTERS, MEMBERS OF RELIGIOUS OR- (80) ANNUITIES TO SURVIVING SPOUSES AND DE- designating subsection (k) as subsection (j). DERS, AND CHRISTIAN SCIENCE PRACTITIONERS.— PENDENT CHILDREN OF JUDGES.— (52) PROPERTY ACQUIRED DURING AFFILI- Paragraph (3) of section 1402(e) is amended by (A) Paragraph (2) of section 7448(a) is amend- ATION.—Section 1051 is repealed and the table of striking ‘‘whichever of the following dates is ed by striking ‘‘or under section 1106 of the In- sections for part IV of subchapter O of chapter later: (A)’’ and by striking ‘‘; or (B)’’ and all ternal Revenue Code of 1939’’ and by striking 1 is amended by striking the item relating to sec- that follows and by inserting a period. ‘‘or pursuant to section 1106(d) of the Internal tion 1051. (65) WITHHOLDING OF TAX ON NONRESIDENT Revenue Code of 1939’’. (53) HOLDING PERIOD OF PROPERTY.— ALIENS.—The first sentence of subsection (b) of (B) Subsection (g) of section 7448 is amended (A) Paragraph (5) of section 1223 is amended section 1441 and the first sentence of paragraph by striking ‘‘or other than pursuant to section by striking ‘‘(or under so much of section 1052(c) (5) of section 1441(c) are each amended by strik- 1106 of the Internal Revenue Code of 1939’’. as refers to section 113(a)(23) of the Internal ing ‘‘gains subject to tax’’ and all that follows (C) Subsections (g), (j)(1), and (j)(2) of section Revenue Code of 1939)’’. through ‘‘October 4, 1966’’ and inserting ‘‘and 7448 are each amended by striking ‘‘at 4 percent (B) Paragraph (7) of section 1223 is amended gains subject to tax under section 871(a)(1)(D)’’. per annum to December 31, 1947, and at 3 per- by striking the last sentence. (66) AFFILIATED GROUP DEFINED.—Subpara- cent per annum thereafter’’ and inserting ‘‘at 3 (C) Paragraph (9) of section 1223 is repealed. graph (A) of section 1504(a)(3) is amended by percent per annum’’.

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(81) MERCHANT MARINE CAPITAL CONSTRUC- the rules of paragraph (2) and subparagraphs action at a rate prescribed under section TION FUNDS.—Paragraph (4) of section 7518(g) is (B), (C), and (D) of paragraph (3) of section 6662A(c), amended by striking ‘‘any nonqualified with- 448(c) shall apply for purposes of this subpara- the requirement to pay such penalty shall be drawal’’ and all that follows through ‘‘shall be graph. disclosed in such reports filed by such person for determined’’ and inserting ‘‘any nonqualified ‘‘(C) HIGH NET WORTH INDIVIDUAL.—For pur- such periods as the Secretary shall specify. Fail- withdrawal shall be determined’’. poses of subparagraph (A), the term ‘high net ure to make a disclosure in accordance with the (82) VALUATION TABLES.—Paragraph (3) of worth individual’ means, with respect to a re- preceding sentence shall be treated as a failure section 7520(c) is amended— portable transaction, a natural person whose to which the penalty under subsection (b)(2) ap- (A) by striking ‘‘Not later than December 31, net worth exceeds $2,000,000 immediately before plies. 1989, the’’ and inserting ‘‘The’’, and the transaction. ‘‘(f) COORDINATION WITH OTHER PENALTIES.— (B) by striking ‘‘thereafter’’ in the last sen- ‘‘(c) DEFINITIONS.—For purposes of this sec- The penalty imposed by this section is in addi- tence thereof. tion— tion to any penalty imposed under this title.’’. (83) ADMINISTRATION AND COLLECTION OF ‘‘(1) REPORTABLE TRANSACTION.—The term ‘re- (b) CONFORMING AMENDMENT.—The table of TAXES IN POSSESSIONS.—Section 7651 is amended portable transaction’ means any transaction sections for part I of subchapter B of chapter 68 by striking paragraph (4) and by redesignating with respect to which information is required to is amended by inserting after the item relating paragraph (5) as paragraph (4). be included with a return or statement because, to section 6707 the following: (84) DEFINITION OF EMPLOYEE.—(A) Section as determined under regulations prescribed ‘‘Sec. 6707A. Penalty for failure to include re- 7701(a)(20) is amended by striking ‘‘chapter 21’’ under section 6011, such transaction is of a type portable transaction information and all that follows and inserting ‘‘chapter 21.’’. which the Secretary determines as having a po- with return or statement.’’. (b) EFFECTIVE DATE.— tential for tax avoidance or evasion. (1) GENERAL RULE.—Except as otherwise pro- ‘‘(2) LISTED TRANSACTION.—Except as pro- (c) EFFECTIVE DATE.—The amendments made vided in paragraph (2), the amendments made vided in regulations, the term ‘listed trans- by this section shall apply to returns and state- by subsection (a) shall take effect on the date of action’ means a reportable transaction which is ments the due date for which is after the date of enactment of this Act. the same as, or substantially similar to, a trans- the enactment of this Act. (2) SAVINGS PROVISION.—If— action specifically identified by the Secretary as SEC. 602. ACCURACY-RELATED PENALTY FOR (A) any provision amended or repealed by a tax avoidance transaction for purposes of sec- LISTED TRANSACTIONS AND OTHER subsection (a) applied to— tion 6011. REPORTABLE TRANSACTIONS HAV- (i) any transaction occurring before the date ING A SIGNIFICANT TAX AVOIDANCE ‘‘(d) AUTHORITY TO RESCIND PENALTY.— PURPOSE. of the enactment of this Act, ‘‘(1) IN GENERAL.—The Commissioner of Inter- (a) IN GENERAL.—Subchapter A of chapter 68 (ii) any property acquired before such date of nal Revenue may rescind all or any portion of is amended by inserting after section 6662 the enactment, or any penalty imposed by this section with respect following new section: (iii) any item of income, loss, deduction, or to any violation if— credit taken into account before such date of en- ‘‘(A) the violation is with respect to a report- ‘‘SEC. 6662A. IMPOSITION OF ACCURACY-RELATED PENALTY ON UNDERSTATEMENTS actment, and able transaction other than a listed transaction, WITH RESPECT TO REPORTABLE (B) the treatment of such transaction, prop- ‘‘(B) the person on whom the penalty is im- TRANSACTIONS. erty, or item under such provision would (with- posed has a history of complying with the re- ‘‘(a) IMPOSITION OF PENALTY.—If a taxpayer out regard to the amendments made by sub- quirements of this title, has a reportable transaction understatement for section (a)) affect the liability for tax for periods ‘‘(C) it is shown that the violation is due to an any taxable year, there shall be added to the tax ending after such date of enactment, unintentional mistake of fact; an amount equal to 20 percent of the amount of nothing in the amendments made by subsection ‘‘(D) imposing the penalty would be against such understatement. (a) shall be construed to affect the treatment of equity and good conscience, and ‘‘(b) REPORTABLE TRANSACTION UNDERSTATE- such transaction, property, or item for purposes ‘‘(E) rescinding the penalty would promote MENT.—For purposes of this section— of determining liability for tax for periods end- compliance with the requirements of this title ‘‘(1) IN GENERAL.—The term ‘reportable trans- ing after such date of enactment. and effective tax administration. action understatement’ means the sum of— ‘‘(2) DISCRETION.—The exercise of authority TITLE VI—REVENUE PROVISIONS ‘‘(A) the product of— under paragraph (1) shall be at the sole discre- ‘‘(i) the amount of the increase (if any) in tax- Subtitle A—Provisions Designed To Curtail tion of the Commissioner and may be delegated able income which results from a difference be- Tax Shelters only to the head of the Office of Tax Shelter tween the proper tax treatment of an item to SEC. 601. PENALTY FOR FAILING TO DISCLOSE Analysis. The Commissioner, in the Commis- which this section applies and the taxpayer’s REPORTABLE TRANSACTION. sioner’s sole discretion, may establish a proce- treatment of such item (as shown on the tax- (a) IN GENERAL.—Part I of subchapter B of dure to determine if a penalty should be referred payer’s return of tax), and chapter 68 (relating to assessable penalties) is to the Commissioner or the head of such Office ‘‘(ii) the highest rate of tax imposed by section amended by inserting after section 6707 the fol- for a determination under paragraph (1). 1 (section 11 in the case of a taxpayer which is lowing new section: ‘‘(3) NO APPEAL.—Notwithstanding any other a corporation), and ‘‘SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE provision of law, any determination under this ‘‘(B) the amount of the decrease (if any) in REPORTABLE TRANSACTION INFOR- subsection may not be reviewed in any adminis- the aggregate amount of credits determined MATION WITH RETURN OR STATE- trative or judicial proceeding. under subtitle A which results from a difference MENT. ‘‘(4) RECORDS.—If a penalty is rescinded between the taxpayer’s treatment of an item to ‘‘(a) IMPOSITION OF PENALTY.—Any person under paragraph (1), the Commissioner shall which this section applies (as shown on the tax- who fails to include on any return or statement place in the file in the Office of the Commis- payer’s return of tax) and the proper tax treat- any information with respect to a reportable sioner the opinion of the Commissioner or the ment of such item. transaction which is required under section 6011 head of the Office of Tax Shelter Analysis with For purposes of subparagraph (A), any reduc- to be included with such return or statement respect to the determination, including— tion of the excess of deductions allowed for the shall pay a penalty in the amount determined ‘‘(A) the facts and circumstances of the trans- taxable year over gross income for such year, under subsection (b). action, and any reduction in the amount of capital ‘‘(b) AMOUNT OF PENALTY.— ‘‘(B) the reasons for the rescission, and losses which would (without regard to section ‘‘(1) IN GENERAL.—Except as provided in para- ‘‘(C) the amount of the penalty rescinded. 1211) be allowed for such year, shall be treated graphs (2) and (3), the amount of the penalty ‘‘(5) REPORT.—The Commissioner shall each as an increase in taxable income. under subsection (a) shall be $50,000. year report to the Committee on Ways and ‘‘(2) ITEMS TO WHICH SECTION APPLIES.—This ‘‘(2) LISTED TRANSACTION.—The amount of the Means of the House of Representatives and the section shall apply to any item which is attrib- penalty under subsection (a) with respect to a Committee on Finance of the Senate— utable to— listed transaction shall be $100,000. ‘‘(A) a summary of the total number and ag- ‘‘(A) any listed transaction, and ‘‘(3) INCREASE IN PENALTY FOR LARGE ENTITIES gregate amount of penalties imposed, and re- ‘‘(B) any reportable transaction (other than a AND HIGH NET WORTH INDIVIDUALS.— scinded, under this section, and listed transaction) if a significant purpose of ‘‘(A) IN GENERAL.—In the case of a failure ‘‘(B) a description of each penalty rescinded such transaction is the avoidance or evasion of under subsection (a) by— under this subsection and the reasons therefor. Federal income tax. ‘‘(i) a large entity, or ‘‘(e) PENALTY REPORTED TO SEC.—In the case ‘‘(c) HIGHER PENALTY FOR NONDISCLOSED ‘‘(ii) a high net worth individual, of a person— LISTED AND OTHER AVOIDANCE TRANSACTIONS.— the penalty under paragraph (1) or (2) shall be ‘‘(1) which is required to file periodic reports ‘‘(1) IN GENERAL.—Subsection (a) shall be ap- twice the amount determined without regard to under section 13 or 15(d) of the Securities Ex- plied by substituting ‘30 percent’ for ‘20 percent’ this paragraph. change Act of 1934 or is required to be consoli- with respect to the portion of any reportable ‘‘(B) LARGE ENTITY.—For purposes of sub- dated with another person for purposes of such transaction understatement with respect to paragraph (A), the term ‘large entity’ means, reports, and which the requirement of section 6664(d)(2)(A) is with respect to any taxable year, a person ‘‘(2) which— not met. (other than a natural person) with gross re- ‘‘(A) is required to pay a penalty under this ‘‘(2) RULES APPLICABLE TO ASSERTION AND ceipts in excess of $10,000,000 for the taxable section with respect to a listed transaction, or COMPROMISE OF PENALTY.— year in which the reportable transaction occurs ‘‘(B) is required to pay a penalty under sec- ‘‘(A) IN GENERAL.—Only upon the approval by or the preceding taxable year. Rules similar to tion 6662A with respect to any reportable trans- the Chief Counsel for the Internal Revenue

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IMPOSITION OF ACCURACY-RELATED Service Office of Appeals. If such a letter is pro- the penalty for such failure was rescinded under PENALTY ON UNDERPAYMENTS.’’. vided to the taxpayer, only the Commissioner of section 6707A(d). (B) The table of sections for part II of sub- Internal Revenue may compromise all or any ‘‘(3) RULES RELATING TO REASONABLE BE- chapter A of chapter 68 is amended by striking portion of such penalty. LIEF.—For purposes of paragraph (2)(C)— the item relating to section 6662 and inserting ‘‘(B) APPLICABLE RULES.—The rules of para- ‘‘(A) IN GENERAL.—A taxpayer shall be treated the following new items: graphs (2), (3), (4), and (5) of section 6707A(d) as having a reasonable belief with respect to the ‘‘Sec. 6662. Imposition of accuracy-related pen- shall apply for purposes of subparagraph (A). tax treatment of an item only if such belief— alty on underpayments. ‘‘(d) DEFINITIONS OF REPORTABLE AND LISTED ‘‘(i) is based on the facts and law that exist at TRANSACTIONS.—For purposes of this section, the time the return of tax which includes such ‘‘Sec. 6662A. Imposition of accuracy-related pen- the terms ‘reportable transaction’ and ‘listed tax treatment is filed, and alty on understatements with re- transaction’ have the respective meanings given ‘‘(ii) relates solely to the taxpayer’s chances of spect to reportable transactions.’’. to such terms by section 6707A(c). success on the merits of such treatment and does (e) EFFECTIVE DATE.—The amendments made ‘‘(e) SPECIAL RULES.— not take into account the possibility that a re- by this section shall apply to taxable years end- ‘‘(1) COORDINATION WITH PENALTIES, ETC., ON turn will not be audited, such treatment will not ing after the date of the enactment of this Act. OTHER UNDERSTATEMENTS.—In the case of an be raised on audit, or such treatment will be re- SEC. 603. MODIFICATIONS OF SUBSTANTIAL UN- understatement (as defined in section solved through settlement if it is raised. DERSTATEMENT PENALTY FOR NON- 6662(d)(2))— ‘‘(B) CERTAIN OPINIONS MAY NOT BE RELIED REPORTABLE TRANSACTIONS. ‘‘(A) the amount of such understatement (de- UPON.— (a) SUBSTANTIAL UNDERSTATEMENT OF COR- termined without regard to this paragraph) ‘‘(i) IN GENERAL.—An opinion of a tax advisor PORATIONS.—Section 6662(d)(1)(B) (relating to shall be increased by the aggregate amount of may not be relied upon to establish the reason- special rule for corporations) is amended to read reportable transaction understatements for pur- able belief of a taxpayer if— as follows: poses of determining whether such understate- ‘‘(I) the tax advisor is described in clause (ii), ‘‘(B) SPECIAL RULE FOR CORPORATIONS.—In ment is a substantial understatement under sec- or the case of a corporation other than an S cor- tion 6662(d)(1), and ‘‘(II) the opinion is described in clause (iii). poration or a personal holding company (as de- ‘‘(B) the addition to tax under section 6662(a) ‘‘(ii) DISQUALIFIED TAX ADVISORS.—A tax ad- fined in section 542), there is a substantial un- shall apply only to the excess of the amount of visor is described in this clause if the tax advi- derstatement of income tax for any taxable year the substantial understatement (if any) after the sor— if the amount of the understatement for the tax- application of subparagraph (A) over the aggre- ‘‘(I) is a material advisor (within the meaning able year exceeds the lesser of— gate amount of reportable transaction under- of section 6111(b)(1)) who participates in the or- ‘‘(i) 10 percent of the tax required to be shown statements. ganization, management, promotion, or sale of on the return for the taxable year (or, if greater, ‘‘(2) COORDINATION WITH OTHER PENALTIES.— the transaction or who is related (within the $10,000), or ‘‘(A) APPLICATION OF FRAUD PENALTY.—Ref- meaning of section 267(b) or 707(b)(1)) to any ‘‘(ii) $10,000,000.’’. erences to an underpayment in section 6663 person who so participates, (b) REDUCTION FOR UNDERSTATEMENT OF TAX- shall be treated as including references to a re- ‘‘(II) is compensated directly or indirectly by PAYER DUE TO POSITION OF TAXPAYER OR DIS- portable transaction understatement. a material advisor with respect to the trans- CLOSED ITEM.— ‘‘(B) NO DOUBLE PENALTY.—This section shall action, (1) IN GENERAL.—Section 6662(d)(2)(B)(i) (re- not apply to any portion of an understatement ‘‘(III) has a fee arrangement with respect to lating to substantial authority) is amended to on which a penalty is imposed under section the transaction which is contingent on all or read as follows: 6663. part of the intended tax benefits from the trans- ‘‘(i) the tax treatment of any item by the tax- ‘‘(3) SPECIAL RULE FOR AMENDED RETURNS.— action being sustained, or payer if the taxpayer had reasonable belief that Except as provided in regulations, in no event ‘‘(IV) as determined under regulations pre- the tax treatment was more likely than not the shall any tax treatment included with an scribed by the Secretary, has a disqualifying fi- proper treatment, or’’. amendment or supplement to a return of tax be nancial interest with respect to the transaction. (2) CONFORMING AMENDMENT.—Section 6662(d) taken into account in determining the amount ‘‘(iii) DISQUALIFIED OPINIONS.—For purposes is amended by adding at the end the following of any reportable transaction understatement if of clause (i), an opinion is disqualified if the new paragraph: the amendment or supplement is filed after the opinion— ‘‘(3) SECRETARIAL LIST.—For purposes of this earlier of the date the taxpayer is first contacted ‘‘(I) is based on unreasonable factual or legal subsection, section 6664(d)(2), and section by the Secretary regarding the examination of assumptions (including assumptions as to future 6694(a)(1), the Secretary may prescribe a list of the return or such other date as is specified by events), positions for which the Secretary believes there the Secretary. ‘‘(II) unreasonably relies on representations, is not substantial authority or there is no rea- ‘‘(4) CROSS REFERENCE.— statements, findings, or agreements of the tax- sonable belief that the tax treatment is more payer or any other person, likely than not the proper tax treatment. Such ‘‘For reporting of section 6662A(c) penalty to ‘‘(III) does not identify and consider all rel- list (and any revisions thereof) shall be pub- the Securities and Exchange Commission, see evant facts, or lished in the Federal Register or the Internal section 6707A(e).’’. ‘‘(IV) fails to meet any other requirement as Revenue Bulletin.’’. (b) DETERMINATION OF OTHER UNDERSTATE- the Secretary may prescribe.’’. (c) EFFECTIVE DATE.—The amendments made MENTS.—Subparagraph (A) of section 6662(d)(2) (2) CONFORMING AMENDMENT.—The heading by this section shall apply to taxable years be- is amended by adding at the end the following for subsection (c) of section 6664 is amended by ginning after the date of the enactment of this flush sentence: inserting ‘‘FOR UNDERPAYMENTS’’ after ‘‘EXCEP- Act. ‘‘The excess under the preceding sentence shall TION’’. SEC. 604. TAX SHELTER EXCEPTION TO CON- be determined without regard to items to which (d) CONFORMING AMENDMENTS.— FIDENTIALITY PRIVILEGES RELAT- section 6662A applies.’’. (1) Subparagraph (C) of section 461(i)(3) is ING TO TAXPAYER COMMUNICA- (c) REASONABLE CAUSE EXCEPTION.— amended by striking ‘‘section 6662(d)(2)(C)(iii)’’ TIONS. (1) IN GENERAL.—Section 6664 is amended by and inserting ‘‘section 1274(b)(3)(C)’’. (a) IN GENERAL.—Section 7525(b) (relating to adding at the end the following new subsection: (2) Paragraph (3) of section 1274(b) is amend- section not to apply to communications regard- ‘‘(d) REASONABLE CAUSE EXCEPTION FOR RE- ed— ing corporate tax shelters) is amended to read as PORTABLE TRANSACTION UNDERSTATEMENTS.— (A) by striking ‘‘(as defined in section follows: ‘‘(1) IN GENERAL.—No penalty shall be im- 6662(d)(2)(C)(iii))’’ in subparagraph (B)(i), and ‘‘(b) SECTION NOT TO APPLY TO COMMUNICA- posed under section 6662A with respect to any (B) by adding at the end the following new TIONS REGARDING TAX SHELTERS.—The privilege portion of a reportable transaction understate- subparagraph: under subsection (a) shall not apply to any ment if it is shown that there was a reasonable ‘‘(C) TAX SHELTER.—For purposes of subpara- written communication which is— cause for such portion and that the taxpayer graph (B), the term ‘tax shelter’ means— ‘‘(1) between a federally authorized tax prac- acted in good faith with respect to such portion. ‘‘(i) a partnership or other entity, titioner and— ‘‘(2) SPECIAL RULES.—Paragraph (1) shall not ‘‘(ii) any investment plan or arrangement, or ‘‘(A) any person, apply to any reportable transaction understate- ‘‘(iii) any other plan or arrangement, ‘‘(B) any director, officer, employee, agent, or ment unless— if a significant purpose of such partnership, en- representative of the person, or ‘‘(A) the relevant facts affecting the tax treat- tity, plan, or arrangement is the avoidance or ‘‘(C) any other person holding a capital or ment of the item are adequately disclosed in ac- evasion of Federal income tax.’’. profits interest in the person, and cordance with the regulations prescribed under (3) Section 6662(d)(2) is amended by striking ‘‘(2) in connection with the promotion of the section 6011, subparagraphs (C) and (D). direct or indirect participation of the person in ‘‘(B) there is or was substantial authority for (4) Section 6664(c)(1) is amended by striking any tax shelter (as defined in section such treatment, and ‘‘this part’’ and inserting ‘‘section 6662 or 6663’’. 1274(b)(3)(C)).’’.

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(b) EFFECTIVE DATE.—The amendment made (ii) by striking ‘‘shall prescribe’’ in paragraph I of subchapter B of chapter 68 is amended by by this section shall apply to communications (2) and inserting ‘‘may prescribe’’. striking ‘‘tax shelters’’ and inserting ‘‘reportable made on or after the date of the enactment of (D) The item relating to section 6112 in the transactions’’. this Act. table of sections for subchapter B of chapter 61 (c) EFFECTIVE DATE.—The amendments made SEC. 605. DISCLOSURE OF REPORTABLE TRANS- is amended to read as follows: by this section shall apply to returns the due ACTIONS. date for which is after the date of the enactment ‘‘Sec. 6112. Material advisors of reportable of this Act. (a) IN GENERAL.—Section 6111 (relating to reg- transactions must keep lists of istration of tax shelters) is amended to read as advisees.’’. SEC. 607. MODIFICATION OF PENALTY FOR FAIL- follows: URE TO MAINTAIN LISTS OF INVES- ‘‘SEC. 6111. DISCLOSURE OF REPORTABLE TRANS- (3)(A) The heading for section 6708 is amended TORS. ACTIONS. to read as follows: (a) IN GENERAL.—Subsection (a) of section ‘‘(a) IN GENERAL.—Each material advisor with ‘‘SEC. 6708. FAILURE TO MAINTAIN LISTS OF 6708 is amended to read as follows: respect to any reportable transaction shall make ADVISEES WITH RESPECT TO RE- ‘‘(a) IMPOSITION OF PENALTY.— a return (in such form as the Secretary may pre- PORTABLE TRANSACTIONS.’’. ‘‘(1) IN GENERAL.—If any person who is re- scribe) setting forth— (B) The item relating to section 6708 in the quired to maintain a list under section 6112(a) ‘‘(1) information identifying and describing table of sections for part I of subchapter B of fails to make such list available upon written re- the transaction, chapter 68 is amended to read as follows: quest to the Secretary in accordance with sec- ‘‘(2) information describing any potential tax ‘‘Sec. 6708. Failure to maintain lists of advisees tion 6112(b)(1)(A) within 20 business days after benefits expected to result from the transaction, with respect to reportable trans- the date of the Secretary’s request, such person and actions.’’. shall pay a penalty of $10,000 for each day of ‘‘(3) such other information as the Secretary such failure after such 20th day. (c) REQUIRED DISCLOSURE NOT SUBJECT TO may prescribe. ‘‘(2) REASONABLE CAUSE EXCEPTION.—No pen- Such return shall be filed not later than the CLAIM OF CONFIDENTIALITY.—Subparagraph (A) alty shall be imposed by paragraph (1) with re- date specified by the Secretary. of section 6112(b)(1), as redesignated by sub- spect to the failure on any day if such failure is section (b)(2)(B), is amended by adding at the ‘‘(b) DEFINITIONS.—For purposes of this sec- due to reasonable cause.’’. tion— end the following new flush sentence: (b) EFFECTIVE DATE.—The amendment made ‘‘For purposes of this section, the identity of ‘‘(1) MATERIAL ADVISOR.— by this section shall apply to requests made ‘‘(A) IN GENERAL.—The term ‘material advisor’ any person on such list shall not be privileged.’’. after the date of the enactment of this Act. (d) EFFECTIVE DATE.— means any person— SEC. 608. MODIFICATION OF ACTIONS TO ENJOIN (1) IN GENERAL.—Except as provided in para- ‘‘(i) who provides any material aid, assist- CERTAIN CONDUCT RELATED TO TAX ance, or advice with respect to organizing, man- graph (2), the amendments made by this section SHELTERS AND REPORTABLE aging, promoting, selling, implementing, or car- shall apply to transactions with respect to TRANSACTIONS. rying out any reportable transaction, and which material aid, assistance, or advice re- (a) IN GENERAL.—Section 7408 (relating to ac- ‘‘(ii) who directly or indirectly derives gross ferred to in section 6111(b)(1)(A)(i) of the Inter- tion to enjoin promoters of abusive tax shelters, income in excess of the threshold amount for nal Revenue Code of 1986 (as added by this sec- etc.) is amended by redesignating subsection (c) such aid, assistance, or advice. tion) is provided after the date of the enactment as subsection (d) and by striking subsections (a) ‘‘(B) THRESHOLD AMOUNT.—For purposes of of this Act. and (b) and inserting the following new sub- subparagraph (A), the threshold amount is— (2) NO CLAIM OF CONFIDENTIALITY AGAINST sections: ‘‘(i) $50,000 in the case of a reportable trans- DISCLOSURE.—The amendment made by sub- ‘‘(a) AUTHORITY TO SEEK INJUNCTION.—A civil action substantially all of the tax benefits from section (c) shall take effect as if included in the action in the name of the United States to en- which are provided to natural persons, and amendments made by section 142 of the Deficit join any person from further engaging in speci- ‘‘(ii) $250,000 in any other case. Reduction Act of 1984. fied conduct may be commenced at the request ‘‘(2) REPORTABLE TRANSACTION.—The term ‘re- SEC. 606. MODIFICATIONS TO PENALTY FOR FAIL- of the Secretary. Any action under this section portable transaction’ has the meaning given to URE TO REGISTER TAX SHELTERS. shall be brought in the district court of the such term by section 6707A(c). (a) IN GENERAL.—Section 6707 (relating to United States for the district in which such per- ‘‘(c) REGULATIONS.—The Secretary may pre- failure to furnish information regarding tax son resides, has his principal place of business, scribe regulations which provide— shelters) is amended to read as follows: or has engaged in specified conduct. The court ‘‘(1) that only 1 person shall be required to ‘‘SEC. 6707. FAILURE TO FURNISH INFORMATION may exercise its jurisdiction over such action (as meet the requirements of subsection (a) in cases REGARDING REPORTABLE TRANS- provided in section 7402(a)) separate and apart in which 2 or more persons would otherwise be ACTIONS. from any other action brought by the United required to meet such requirements, ‘‘(a) IN GENERAL.—If a person who is required States against such person. ‘‘(2) exemptions from the requirements of this to file a return under section 6111(a) with re- ‘‘(b) ADJUDICATION AND DECREE.—In any ac- section, and spect to any reportable transaction— tion under subsection (a), if the court finds— ‘‘(3) such rules as may be necessary or appro- ‘‘(1) fails to file such return on or before the ‘‘(1) that the person has engaged in any speci- priate to carry out the purposes of this sec- date prescribed therefor, or fied conduct, and tion.’’. ‘‘(2) files false or incomplete information with ‘‘(2) that injunctive relief is appropriate to (b) CONFORMING AMENDMENTS.— the Secretary with respect to such transaction, prevent recurrence of such conduct, (1) The item relating to section 6111 in the such person shall pay a penalty with respect to the court may enjoin such person from engaging table of sections for subchapter B of chapter 61 such return in the amount determined under in such conduct or in any other activity subject is amended to read as follows: subsection (b). to penalty under this title. ‘‘(b) AMOUNT OF PENALTY.— ‘‘(c) SPECIFIED CONDUCT.—For purposes of ‘‘Sec. 6111. Disclosure of reportable trans- ‘‘(1) IN GENERAL.—Except as provided in para- actions.’’. this section, the term ‘specified conduct’ means graph (2), the penalty imposed under subsection any action, or failure to take action, subject to (2)(A) So much of section 6112 as precedes sub- (a) with respect to any failure shall be $50,000. penalty under section 6700, 6701, 6707, or 6708.’’. ‘‘(2) LISTED TRANSACTIONS.—The penalty im- section (c) thereof is amended to read as follows: (b) CONFORMING AMENDMENTS.— ‘‘SEC. 6112. MATERIAL ADVISORS OF REPORTABLE posed under subsection (a) with respect to any (1) The heading for section 7408 is amended to TRANSACTIONS MUST KEEP LISTS listed transaction shall be an amount equal to read as follows: OF ADVISEES. the greater of— ‘‘SEC. 7408. ACTIONS TO ENJOIN SPECIFIED CON- N ENERAL ‘‘(A) $200,000, or ‘‘(a) I G .—Each material advisor (as DUCT RELATED TO TAX SHELTERS defined in section 6111) with respect to any re- ‘‘(B) 50 percent of the gross income derived by AND REPORTABLE TRANSACTIONS.’’. such person with respect to aid, assistance, or portable transaction (as defined in section (2) The table of sections for subchapter A of advice which is provided with respect to the list- 6707A(c)) shall maintain, in such manner as the chapter 67 is amended by striking the item related transaction before the date the return includ- Secretary may by regulations prescribe, a list— ing to section 7408 and inserting the following ing the transaction is filed under section 6111. ‘‘(1) identifying each person with respect to new item: whom such advisor acted as such a material ad- Subparagraph (B) shall be applied by sub- visor with respect to such transaction, and stituting ‘75 percent’ for ‘50 percent’ in the case ‘‘Sec. 7408. Actions to enjoin specified con- ‘‘(2) containing such other information as the of an intentional failure or act described in sub- duct related to tax shelters and Secretary may by regulations require. section (a). reportable transactions.’’. This section shall apply without regard to ‘‘(c) CERTAIN RULES TO APPLY.—The provi- (c) EFFECTIVE DATE.—The amendments made whether a material advisor is required to file a sions of section 6707A(d) shall apply to any pen- by this section shall take effect on the day after return under section 6111 with respect to such alty imposed under this section. the date of the enactment of this Act. transaction.’’. ‘‘(d) REPORTABLE AND LISTED TRANS- SEC. 609. UNDERSTATEMENT OF TAXPAYER’S LI- (B) Section 6112 is amended by redesignating ACTIONS.—The terms ‘reportable transaction’ ABILITY BY INCOME TAX RETURN subsection (c) as subsection (b). and ‘listed transaction’ have the respective PREPARER. (C) Section 6112(b), as redesignated by sub- meanings given to such terms by section (a) STANDARDS CONFORMED TO TAXPAYER paragraph (B), is amended— 6707A(c).’’. STANDARDS.—Section 6694(a) (relating to under- (i) by inserting ‘‘written’’ before ‘‘request’’ in (b) CLERICAL AMENDMENT.—The item relating statements due to unrealistic positions) is paragraph (1)(A), and to section 6707 in the table of sections for part amended—

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The preceding sentence shall not apply sustained on its merits’’ in paragraph (1) and not expire before the date which is 1 year after to any return of a regulated investment com- inserting ‘‘reasonable belief that the tax treat- the earlier of— pany (within the meaning of section 851 of such ment in such position was more likely than not ‘‘(A) the date on which the Secretary is fur- Code). the proper treatment’’, nished the information so required; or (b) EFFECTIVE DATE.—This section shall apply (2) by striking ‘‘or was frivolous’’ in para- ‘‘(B) the date that a material advisor (as de- to the Federal annual tax return of a corpora- graph (3) and inserting ‘‘or there was no rea- fined in section 6111) meets the requirements of tion with respect to income for taxable years sonable basis for the tax treatment of such posi- section 6112 with respect to a request by the Sec- ending after the date of the enactment of this tion’’, and retary under section 6112(b) relating to such Act. (3) by striking ‘‘UNREALISTIC’’ in the heading transaction with respect to such taxpayer.’’. SEC. 623. DENIAL OF DEDUCTION FOR CERTAIN and inserting ‘‘IMPROPER’’. (b) EFFECTIVE DATE.—The amendment made FINES, PENALTIES, AND OTHER (b) AMOUNT OF PENALTY.—Section 6694 is by this section shall apply to taxable years with AMOUNTS. amended— respect to which the period for assessing a defi- (a) IN GENERAL.—Subsection (f) of section 162 (1) by striking ‘‘$250’’ in subsection (a) and ciency did not expire before the date of the en- (relating to trade or business expenses) is inserting ‘‘$1,000’’, and actment of this Act. amended to read as follows: (2) by striking ‘‘$1,000’’ in subsection (b) and ‘‘(f) FINES, PENALTIES, AND OTHER SEC. 613. DENIAL OF DEDUCTION FOR INTEREST AMOUNTS.— inserting ‘‘$5,000’’. ON UNDERPAYMENTS ATTRIB- ‘‘(1) IN GENERAL.—Except as provided in para- (c) EFFECTIVE DATE.—The amendments made UTABLE TO TAX-MOTIVATED TRANS- graph (2), no deduction otherwise allowable by this section shall apply to documents pre- ACTIONS. shall be allowed under this chapter for any pared after the date of the enactment of this (a) IN GENERAL.—Section 163 (relating to de- amount paid or incurred (whether by suit, Act. duction for interest) is amended by redesig- agreement, or otherwise) to, or at the direction nating subsection (m) as subsection (n) and by SEC. 610. REGULATION OF INDIVIDUALS PRAC- of, a government or entity described in para- TICING BEFORE THE DEPARTMENT inserting after subsection (l) the following new graph (4) in relation to the violation of any law OF TREASURY. subsection: or the investigation or inquiry by such govern- (a) CENSURE; IMPOSITION OF PENALTY.— ‘‘(m) INTEREST ON UNPAID TAXES ATTRIB- ment or entity into the potential violation of (1) IN GENERAL.—Section 330(b) of title 31, UTABLE TO NONDISCLOSED REPORTABLE TRANS- United States Code, is amended— any law. ACTIONS.—No deduction shall be allowed under ‘‘(2) EXCEPTION FOR AMOUNTS CONSTITUTING (A) by inserting ‘‘, or censure,’’ after ‘‘Depart- this chapter for any interest paid or accrued RESTITUTION.—Paragraph (1) shall not apply to ment’’, and under section 6601 on any underpayment of tax any amount which the taxpayer establishes con- (B) by adding at the end the following new which is attributable to the portion of any re- stitutes restitution (including remediation of flush sentence: portable transaction understatement (as defined property) for damage or harm caused by or ‘‘The Secretary may impose a monetary penalty in section 6662A(b)) with respect to which the which may be caused by the violation of any on any representative described in the preceding requirement of section 6664(d)(2)(A) is not met.’’. law or the potential violation of any law. This sentence. If the representative was acting on be- (b) EFFECTIVE DATE.—The amendments made paragraph shall not apply to any amount paid half of an employer or any firm or other entity by this section shall apply to transactions in or incurred as reimbursement to the government in connection with the conduct giving rise to taxable years beginning after the date of the en- or entity for the costs of any investigation or such penalty, the Secretary may impose a mone- actment of this Act. litigation. tary penalty on such employer, firm, or entity if SEC. 614. AUTHORIZATION OF APPROPRIATIONS ‘‘(3) EXCEPTION FOR AMOUNTS PAID OR IN- it knew, or reasonably should have known, of FOR TAX LAW ENFORCEMENT. CURRED AS THE RESULT OF CERTAIN COURT OR- such conduct. Such penalty shall not exceed the There is authorized to be appropriated DERS.—Paragraph (1) shall not apply to any gross income derived (or to be derived) from the $300,000,000 for each fiscal year beginning after amount paid or incurred by order of a court in conduct giving rise to the penalty and may be in September 30, 2003, for the purpose of carrying a suit in which no government or entity de- addition to, or in lieu of, any suspension, dis- out tax law enforcement to combat tax avoid- scribed in paragraph (4) is a party. barment, or censure of the representative.’’. ance transactions and other tax shelters, includ- ‘‘(4) CERTAIN NONGOVERNMENTAL REGULATORY (2) EFFECTIVE DATE.—The amendments made ing the use of offshore financial accounts to ENTITIES.—An entity is described in this para- by this subsection shall apply to actions taken conceal taxable income. graph if it is— after the date of the enactment of this Act. ‘‘(A) a nongovernmental entity which exer- PART II—OTHER CORPORATE (b) TAX SHELTER OPINIONS, ETC.—Section 330 cises self-regulatory powers (including imposing of such title 31 is amended by adding at the end GOVERNANCE PROVISIONS sanctions) in connection with a qualified board the following new subsection: SEC. 621. AFFIRMATION OF CONSOLIDATED RE- or exchange (as defined in section 1256(g)(7)), or ‘‘(d) Nothing in this section or in any other TURN REGULATION AUTHORITY. ‘‘(B) to the extent provided in regulations, a provision of law shall be construed to limit the (a) IN GENERAL.—Section 1502 (relating to nongovernmental entity which exercises self-reg- authority of the Secretary of the Treasury to im- consolidated return regulations) is amended by ulatory powers (including imposing sanctions) pose standards applicable to the rendering of adding at the end the following new sentence: as part of performing an essential governmental written advice with respect to any entity, trans- ‘‘In prescribing such regulations, the Secretary function. action plan or arrangement, or other plan or ar- may prescribe rules applicable to corporations ‘‘(5) EXCEPTION FOR TAXES DUE.—Paragraph rangement, which is of a type which the Sec- filing consolidated returns under section 1501 (1) shall not apply to any amount paid or in- retary determines as having a potential for tax that are different from other provisions of this curred as taxes due.’’. avoidance or evasion.’’. title that would apply if such corporations filed (b) EFFECTIVE DATE.—The amendment made SEC. 611. PENALTY ON PROMOTERS OF TAX SHEL- separate returns.’’. by this section shall apply to amounts paid or TERS. (b) RESULT NOT OVERTURNED.—Notwith- incurred after April 27, 2003, except that such (a) PENALTY ON PROMOTING ABUSIVE TAX standing subsection (a), the Internal Revenue amendment shall not apply to amounts paid or SHELTERS.—Section 6700(a) is amended by add- Code of 1986 shall be construed by treating incurred under any binding order or agreement ing at the end the following new sentence: ‘‘Not- Treasury regulation § 1.1502–20(c)(1)(iii) (as in entered into on or before April 27, 2003. Such ex- withstanding the first sentence, if an activity effect on January 1, 2001) as being inapplicable ception shall not apply to an order or agreement with respect to which a penalty imposed under to the type of factual situation in 255 F.3d 1357 requiring court approval unless the approval this subsection involves a statement described in (Fed. Cir. 2001). was obtained on or before April 27, 2003. paragraph (2)(A), the amount of the penalty (c) EFFECTIVE DATE.—The provisions of this SEC. 624. DISALLOWANCE OF DEDUCTION FOR shall be equal to 50 percent of the gross income section shall apply to taxable years beginning PUNITIVE DAMAGES. (a) DISALLOWANCE OF DEDUCTION.— derived (or to be derived) from such activity by before, on, or after the date of the enactment of (1) IN GENERAL.—Section 162(g) (relating to the person on which the penalty is imposed.’’. this Act. treble damage payments under the antitrust (b) EFFECTIVE DATE.—The amendment made SEC. 622. DECLARATION BY CHIEF EXECUTIVE OF- laws) is amended by adding at the end the fol- by this section shall apply to activities after the FICER RELATING TO FEDERAL AN- lowing new paragraph: date of the enactment of this Act. NUAL INCOME TAX RETURN OF A CORPORATION. ‘‘(2) PUNITIVE DAMAGES.—No deduction shall SEC. 612. STATUTE OF LIMITATIONS FOR TAX- be allowed under this chapter for any amount (a) IN GENERAL.—The Federal annual tax re- ABLE YEARS FOR WHICH REQUIRED paid or incurred for punitive damages in con- LISTED TRANSACTIONS NOT RE- turn of a corporation with respect to income PORTED. shall also include a declaration signed by the nection with any judgment in, or settlement of, any action. This paragraph shall not apply to (a) IN GENERAL.—Section 6501(c) (relating to chief executive officer of such corporation (or exceptions) is amended by adding at the end the other such officer of the corporation as the Sec- punitive damages described in section 104(c).’’. (2) CONFORMING AMENDMENTS.— following new paragraph: retary of the Treasury may designate if the cor- (A) Section 162(g) is amended— ‘‘(10) LISTED TRANSACTIONS.—If a taxpayer poration does not have a chief executive officer), (i) by striking ‘‘If’’ and inserting: fails to include on any return or statement for under penalties of perjury, that the corporation ‘‘(1) TREBLE DAMAGES.—If’’, and any taxable year any information with respect has in place processes and procedures to ensure (ii) by redesignating paragraphs (1) and (2) as to a listed transaction (as defined in section that such return complies with the Internal subparagraphs (A) and (B), respectively. 6707A(c)(2)) which is required under section 6011 Revenue Code of 1986 and that the chief execu- (B) The heading for section 162(g) is amended to be included with such return or statement, tive officer was provided reasonable assurance by inserting ‘‘OR PUNITIVE DAMAGES’’ after the time for assessment of any tax imposed by of the accuracy of all material aspects of such ‘‘LAWS’’.

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(b) INCLUSION IN INCOME OF PUNITIVE DAM- SEC. 626. DOUBLING OF CERTAIN PENALTIES, To the extent provided by the Secretary, the re- AGES PAID BY INSURER OR OTHERWISE.— FINES, AND INTEREST ON UNDER- quirements of this section applicable to the ac- PAYMENTS RELATED TO CERTAIN (1) IN GENERAL.—Part II of subchapter B of quiring corporation shall be applicable to the OFFSHORE FINANCIAL ARRANGE- acquired corporation and not to the acquiring chapter 1 (relating to items specifically included MENTS. in gross income) is amended by adding at the corporation. (a) GENERAL RULE.—If— ‘‘(b) NOMINEE REPORTING.—Any person who end the following new section: (1) a taxpayer eligible to participate in— holds stock as a nominee for another person ‘‘SEC. 91. PUNITIVE DAMAGES COMPENSATED BY (A) the Department of the Treasury’s Offshore shall furnish in the manner prescribed by the INSURANCE OR OTHERWISE. Voluntary Compliance Initiative, or Secretary to such other person the information ‘‘Gross income shall include any amount paid (B) the Department of the Treasury’s vol- provided by the corporation under subsection to or on behalf of a taxpayer as insurance or untary disclosure initiative which applies to the (d). otherwise by reason of the taxpayer’s liability taxpayer by reason of the taxpayer’s under- ‘‘(c) TAXABLE ACQUISITION.—For purposes of (or agreement) to pay punitive damages.’’. reporting of United States income tax liability this section, the term ‘taxable acquisition’ (2) REPORTING REQUIREMENTS.—Section 6041 through financial arrangements which rely on means any acquisition by a corporation of stock (relating to information at source) is amended the use of offshore arrangements which were the in or property of another corporation if any by adding at the end the following new sub- subject of the initiative described in subpara- shareholder of the acquired corporation is re- section: graph (A), and quired to recognize gain (if any) as a result of ‘‘(f) SECTION TO APPLY TO PUNITIVE DAMAGES (2) any interest or applicable penalty is im- such acquisition. COMPENSATION.—This section shall apply to posed with respect to any arrangement to which ‘‘(d) STATEMENTS TO BE FURNISHED TO payments by a person to or on behalf of another any initiative described in paragraph (1) applied SHAREHOLDERS.—Every person required to make person as insurance or otherwise by reason of or to any underpayment of Federal income tax a return under subsection (a) shall furnish to the other person’s liability (or agreement) to pay attributable to items arising in connection with each shareholder whose name is required to be punitive damages.’’. any arrangement described in paragraph (1), set forth in such return a written statement then, notwithstanding any other provision of (3) CONFORMING AMENDMENT.—The table of showing— law, the amount of such interest or penalty sections for part II of subchapter B of chapter ‘‘(1) the name, address, and phone number of shall be equal to twice that determined without 1 is amended by adding at the end the following the information contact of the person required regard to this section. new item: to make such return, (b) DEFINITIONS AND RULES.—For purposes of ‘‘Sec. 91. Punitive damages compensated by in- ‘‘(2) the information required to be shown on this section— surance or otherwise.’’. such return with respect to such shareholder, (1) APPLICABLE PENALTY.—The term ‘‘applica- and (c) EFFECTIVE DATE.—The amendments made ble penalty’’ means any penalty, addition to ‘‘(3) such other information as the Secretary by this section shall apply to damages paid or tax, or fine imposed under chapter 68 of the In- may prescribe. incurred on or after the date of the enactment ternal Revenue Code of 1986. The written statement required under the pre- of this Act. (2) VOLUNTARY OFFSHORE COMPLIANCE INITIA- ceding sentence shall be furnished to the share- TIVE.—The term ‘‘Voluntary Offshore Compli- SEC. 625. INCREASE IN CRIMINAL MONETARY holder on or before January 31 of the year fol- PENALTY FOR INDIVIDUALS TO THE ance Initiative’’ means the program established lowing the calendar year during which the tax- AMOUNT OF THE TAX AT ISSUE. by the Department of the Treasury in January able acquisition occurred.’’. (a) IN GENERAL.—Section 7206 (relating to of 2003 under which any taxpayer was eligible (b) ASSESSABLE PENALTIES.— fraud and false statements) is amended— to voluntarily disclose previously undisclosed (1) Subparagraph (B) of section 6724(d)(1) (de- (1) by striking ‘‘Any person who—’’ and in- income on assets placed in offshore accounts fining information return) is amended by redes- serting ‘‘(a) IN GENERAL.—Any person who—’’, and accessed through credit card and other fi- ignating clauses (ii) through (xviii) as clauses and nancial arrangements. (iii) through (xix), respectively, and by inserting (2) by adding at the end the following new (3) PARTICIPATION.—A taxpayer shall be treat- after clause (i) the following new clause: subsection: ed as having participated in the Voluntary Off- ‘‘(ii) section 6043A(a) (relating to returns re- ‘‘(b) INCREASE IN MONETARY LIMITATION FOR shore Compliance Initiative if the taxpayer sub- lating to taxable mergers and acquisitions),’’. UNDERPAYMENT OR OVERPAYMENT OF TAX DUE mitted the request in a timely manner and all (2) Paragraph (2) of section 6724(d) (relating TO FRAUD.—If any portion of any under- information requested by the Secretary of the to definitions) is amended by redesignating sub- payment (as defined in section 6664(a)) or over- Treasury or his delegate within a reasonable pe- paragraphs (F) through (BB) as subparagraphs payment (as defined in section 6203(a)) of tax riod of time following the request. (G) through (CC), respectively, and by inserting required to be shown on a return is attributable (c) EFFECTIVE DATE.—The provisions of this after subparagraph (E) the following new sub- to fraudulent action described in subsection (a), section shall apply to interest, penalties, addi- paragraph: the applicable dollar amount under subsection tions to tax, and fines with respect to any tax- ‘‘(F) subsections (b) and (d) of section 6043A (a) shall in no event be less than an amount able year if as of the date of the enactment of (relating to returns relating to taxable mergers equal to such portion. A rule similar to the rule this Act, the assessment of any tax, penalty, or and acquisitions).’’. under section 6663(b) shall apply for purposes of interest with respect to such taxable year is not (c) CLERICAL AMENDMENT.—The table of sec- determining the portion so attributable.’’. prevented by the operation of any law or rule of tions for subpart B of part III of subchapter A (b) INCREASE IN PENALTIES.— law. of chapter 61 is amended by inserting after the (1) ATTEMPT TO EVADE OR DEFEAT TAX.—Sec- PART III—EXTENSION OF IRS USER FEES item relating to section 6043 the following new tion 7201 is amended— SEC. 631. EXTENSION OF IRS USER FEES. item: (A) by striking ‘‘$100,000’’ and inserting (a) IN GENERAL.—Section 7528(c) (relating to ‘‘Sec. 6043A. Returns relating to taxable mergers ‘‘$250,000’’, termination) is amended by striking ‘‘December and acquisitions.’’. (B) by striking ‘‘$500,000’’ and inserting 31, 2004’’ and inserting ‘‘September 30, 2013’’. ‘‘$1,000,000’’, and (b) EFFECTIVE DATE.—The amendment made (d) EFFECTIVE DATE.—The amendments made (C) by striking ‘‘5 years’’ and inserting ‘‘10 by this section shall apply to requests after the by this section shall apply to acquisitions after years’’. date of the enactment of this Act. the date of the enactment of this Act. (2) WILLFUL FAILURE TO FILE RETURN, SUPPLY SEC. 642. MODIFICATION OF DEFINITION OF CON- PART IV—OTHER REVENUE PROVISIONS TROLLED GROUP OF CORPORA- INFORMATION, OR PAY TAX.—Section 7203 is SEC. 641. REPORTING OF TAXABLE MERGERS AND TIONS. amended— ACQUISITIONS. (a) IN GENERAL.—Section 1563(a)(2) (relating (A) in the first sentence— (a) IN GENERAL.—Subpart B of part III of sub- to brother-sister controlled group) is amended by (i) by striking ‘‘misdemeanor’’ and inserting chapter A of chapter 61 is amended by inserting striking ‘‘possessing—’’ and all that follows ‘‘felony’’, and after section 6043 the following new section: through ‘‘(B)’’ and inserting ‘‘possessing’’. (ii) by striking ‘‘1 year’’ and inserting ‘‘10 ‘‘SEC. 6043A. TAXABLE MERGERS AND ACQUISI- (b) APPLICATION OF EXISTING RULES TO OTHER years’’, and TIONS. CODE PROVISIONS.—Section 1563(f) (relating to (B) by striking the third sentence. ‘‘(a) IN GENERAL.—The acquiring corporation other definitions and rules) is amended by add- (3) FRAUD AND FALSE STATEMENTS.—Section in any taxable acquisition shall make a return ing at the end the following new paragraph: 7206(a) (as redesignated by subsection (a)) is (according to the forms or regulations prescribed ‘‘(5) BROTHER-SISTER CONTROLLED GROUP DEF- amended— by the Secretary) setting forth— INITION FOR PROVISIONS OTHER THAN THIS (A) by striking ‘‘$100,000’’ and inserting ‘‘(1) a description of the acquisition, PART.— ‘‘$250,000’’, ‘‘(2) the name and address of each share- ‘‘(A) IN GENERAL.—Except as specifically pro- (B) by striking ‘‘$500,000’’ and inserting holder of the acquired corporation who is re- vided in an applicable provision, subsection ‘‘$1,000,000’’, and quired to recognize gain (if any) as a result of (a)(2) shall be applied to an applicable provision (C) by striking ‘‘3 years’’ and inserting ‘‘5 the acquisition, as if it read as follows: years’’. ‘‘(3) the amount of money and the fair market ‘‘‘(2) BROTHER-SISTER CONTROLLED GROUP.— (c) EFFECTIVE DATE.—The amendments made value of other property transferred to each such Two or more corporations if 5 or fewer persons by this section shall apply to underpayments shareholder as part of such acquisition, and who are individuals, estates, or trusts own and overpayments attributable to actions occur- ‘‘(4) such other information as the Secretary (within the meaning of subsection (d)(2) stock ring after the date of the enactment of this Act. may prescribe. possessing—

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00151 Fmt 4624 Sfmt 6333 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6044 CONGRESSIONAL RECORD — SENATE May 20, 2004 ‘‘‘(A) at least 80 percent of the total combined ignate whenever, in their opinion, the public the hospital without having their hear- voting power of all classes of stock entitled to interest shall warrant it. ing tested. As a result, thirty-three ba- vote, or at least 80 percent of the total value of f bies are born each day with hearing shares of all classes of stock, of each corpora- loss, making deafness the most com- tion, and NATIONAL TRANSPORTATION ‘‘‘(B) more than 50 percent of the total com- WEEK mon birth defect in America. Mr. President, it doesn’t have to be bined voting power of all classes of stock enti- Mr. FRIST. Mr. President, I ask tled to vote or more than 50 percent of the total like this. Study after study has shown unanimous consent that the Commerce value of shares of all classes of stock of each that through regular testing and early Committee be discharged from further corporation, taking into account the stock own- treatment, hearing loss can be pre- consideration of H. Con. Res. 420 and ership of each such person only to the extent vented not only in infants, but in the Senate now proceed to its consider- such stock ownership is identical with respect to adults as well. each such corporation.’ ation. This resolution can take the first ‘‘(B) APPLICABLE PROVISION.—For purposes of The PRESIDING OFFICER. Without this paragraph, an applicable provision is any objection, it is so ordered. The clerk step in preventing hearing loss. Early provision of law (other than this part) which in- will report the concurrent resolution prevention and treatment is the key to corporates the definition of controlled group of preventing future hearing loss, but we corporations under subsection (a).’’. by title. The legislative clerk read as follows: must also care for the 28 million Amer- (c) EFFECTIVE DATE.—The amendments made icans currently suffering from deaf- A concurrent resolution (H. Con. Res. 420) by this section shall apply to taxable years be- ness. ginning after the date of the enactment of this applauding the men and women who keep Act. America moving and recognizing National Today, 95 percent of individuals with hearing loss can be successfully treated The PRESIDING OFFICER. The ma- Transportation Week. with hearing aids. However, only 22 jority leader. There being no objection, the Senate proceeded to consider the concurrent percent of deaf Americans can afford to f resolution. use this remarkable technology. In ADJOURNMENT OF THE TWO Mr. FRIST. Mr. President, I ask other words, over 21 million Americans HOUSES OVER THE MEMORIAL unanimous consent that the concur- will be denied the sensation of sound DAY HOLIDAY rent resolution be agreed to, the pre- because they cannot afford a remedy. Mr. FRIST. Mr. President, I ask amble be agreed to, the motions to re- For this reason, I introduced the Hear- unanimous consent that the Senate consider be laid upon the table en bloc, ing Aid Assistance Tax Credit Act or S. now proceed to the consideration of H. and any statements relating to the res- 2055. Con. Res. 432, the adjournment resolu- olution be printed in the RECORD. S. 2055 provides financial assistance tion, which is at the desk. The PRESIDING OFFICER. Without for those who need it most, our elderly The PRESIDING OFFICER. The objection, it is so ordered. and young. Under this legislation, mi- clerk will report the concurrent resolu- The concurrent resolution (H. Con. nors and seniors can take a tax credit tion by title. Res. 420) was agreed to. of up to $500, once every 5 years, to- The legislative clerk read as follows: The preamble was agreed to. ward the purchase of any hearing de- A concurrent resolution (H. Con. Res. 432) f vice that is considered a ‘‘qualified hearing aid’’ under the Federal Food, providing for the conditional adjournment of SUPPORTING MAY 2004 AS NA- Drug, and Cosmetic Act. the House of Representatives and the condi- TIONAL BETTER HEARING AND tional recess or adjournment of the Senate. SPEECH MONTH Hearing aids are not just portals to There being no objection, the Senate sound, but portals to success—success proceeded to consider the concurrent Mr. FRIST. Mr. President, I ask in school, business, and life. With your resolution. unanimous consent that the Senate support 1.2 million children will hear Mr. FRIST. Mr. President, I ask proceed to the immediate consider- their teacher’s voice for the first time unanimous consent that the concur- ation of S. Res. 366, submitted earlier as they learn to read and write. With rent resolution be agreed to and the today by Senator COLEMAN. your support, ten million older Ameri- motion to reconsider be laid upon the The PRESIDING OFFICER. The cans will be able to hear their grand- table. clerk will state the resolution by title. children’s voices and continue working The PRESIDING OFFICER. Without The legislative clerk read as follows: despite age-related hearing loss. With objection, it is so ordered. A resolution (S. Res. 366) supporting May your support, we can give millions the The concurrent resolution (H. Con. 2004 as National Better Hearing and Speech gift of sound. Month, and commending those States that Res. 432) was agreed to, as follows: have implemented routine hearing Mr. FRIST. Mr. President, I ask H. CON. RES. 432 screenings for every newborn before the new- unanimous consent that the resolution Resolved by the House of Representatives (the born leaves the hospital. be agreed to, the preamble be agreed Senate concurring), That when the House ad- There being no objection, the Senate to, the motion to reconsider be laid journs on the legislative day of Thursday, proceeded to consider the resolution. upon the table, and that statements re- May 20, 2004, or Friday, May 21, 2004, it stand Mr. COLEMAN. Mr. President, every lating to the measure be printed in the adjourned until 2 p.m. on Tuesday, June 1, day, more than 1.2 million children will RECORD. 2004, or until the time of any reassembly pur- The PRESIDING OFFICER. Without suant to section 2 of this concurrent resolu- struggle to hear their teacher’s voice. tion, whichever occurs first; and that when Every day, more than 26 million adults objection, it is so ordered. the Senate recesses or adjourns on Thursday, will miss important pieces of conversa- The resolution (S. Res. 366) was May 20, 2004, Friday, May 21, 2004, or Satur- tions. Every day, more than 10 million agreed to. day, May 22, 2004, on a motion offered pursu- older Americans will consider early re- The preamble was agreed to. ant to this concurrent resolution by its Ma- tirement in the face of hearing loss. The resolution, with its preamble, jority Leader or his designee, it stand re- Mr. President, hearing is not an ac- reads as follows: cessed or adjourned until noon on Tuesday, June 1, 2004, or at such other time on that cessory, but a necessity—a necessity to S. RES. 366 day as may be specified by its Majority success in school, business, and life. Whereas the National Institute on Deaf- Leader or his designee in the motion to re- In recognition of the importance of ness and Other Communication Disorders recess or adjourn, or until the time of any re- hearing, I have introduced this resolu- ports that approximately 28,000,000 people in assembly pursuant to section 2 of this con- tion. the United States experience hearing loss or current resolution, whichever occurs first. This resolution recognizes May as have a hearing impairment; SEC. 2. The Speaker of the House and the ‘‘National Better Hearing and Speech Whereas 1 out of every 3 people in the Majority Leader of the Senate, or their re- Month,’’ and transforms its ideals into United States over the age of 65 have hearing spective designees, acting jointly after con- action by encouraging all Americans to loss; sultation with the Minority Leader of the Whereas the overwhelming majority of House and the Minority Leader of the Sen- have their hearing checked regularly people in the United States with hearing loss ate, shall notify the Members of the House and to seek treatment for hearing loss. would benefit from the use of a hearing aid and the Senate, respectively, to reassemble Despite the necessity of hearing to and fewer than 7,000,000 people in the United at such place and time as they may des- success, one third of all newborns leave States use a hearing aid;

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00152 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6045 Whereas 30 percent of people in the United Whereas it is appropriate for our Nation to dren. She graduated from the Univer- States suffering from hearing loss cite finan- continue the tradition of designating the sity of Minnesota in 1932 with a bach- cial constraints as an impediment to hearing month of May as a time to celebrate the con- elor’s degree in psychology and re- aid use; tributions of older Americans and to rededi- ceived a master’s degree in social econ- Whereas hearing loss is among the most cate its effort to respect and better serve common congenital birth defects; older Americans: Now, therefore, be it omy and social research in 1934 from Whereas a delay in diagnosing the hearing Resolved, That the Senate— Bryn Mawr College. In graduate school, loss of a newborn can affect the social, emo- (1) designates May 2004 as ‘‘Older Ameri- she realized that to improve the lives tional, and academic development of the cans Month’’; and of working women and men she would child; (2) commends the President on the have to change the system. In the Whereas the average age at which issuance of his proclamation calling upon 1930s, that meant joining the labor newborns with hearing loss are diagnosed is the people of the United States to observe movement. between the ages of 12 to 25 months; such month with appropriate ceremonies and Millie became an organizer for the activities that publicly reaffirm our grati- Whereas May 2004 is National Better Hear- Amalgamated Clothing Workers of ing and Speech Month, providing Federal, tude and respect for older Americans. America in Philadelphia and then Edu- State, and local governments, members of f the private and nonprofit sectors, hearing cational Director of the Pennsylvania and speech professionals, and all people in HONORING THE LIFE OF MILDRED Joint Board of Shirt Workers. In 1936, the United States an opportunity to focus on MCWILLIAMS JEFFREY she married fellow Amalgamated orga- preventing, mitigating, and treating hearing Mr. FRIST. Mr. President, I ask nizer Homer Newman Jeffrey, and they impairments: Now, therefore, be it unanimous consent that the Senate traveled throughout the South and Resolved, That the Senate— East organizing textile workers. Dur- (1) supports the goals and ideals of May proceed to the immediate consider- 2004 as National Better Hearing and Speech ation of S. Res. 367, submitted earlier ing World War II, the Jeffreys worked Month; today by Senators STABENOW and in Washington, DC, as consultants to (2) commends those States that have im- LEVIN. the War Labor Board, where they be- plemented routine hearing screenings for The PRESIDING OFFICER. The came close friends with Walter, Victor, every newborn before the newborn leaves the clerk will state the resolution by title. and Roy Reuther. hospital; and The legislative clerk read as follows: Mildred and Newman Jeffrey moved (3) encourages all people in the United A resolution (S. Res. 367) honoring the life to Detroit in 1944 when victor Reuther States to have their hearing checked regu- of Mildred McWilliams ‘‘Millie’’ Jeffrey offered Millie a job as director of the larly. (1910–2004) and her contributions to her com- newly formed UAW Women’s Bureau. f munity and to the United States. Millie’s commitment to equal rights DESIGNATING MAY 2004 AS OLDER There being no objection, the Senate fueled here career at the UAW. She or- AMERICANS MONTH proceeded to consider the resolution. ganized the first UAW women’s con- Ms. STABENOW. Mr. President, Mr. FRIST. Mr. President, I ask ference in response to the massive today I rise to honor the life of a very unanimous consent that the Judiciary postwar layoffs of women production dear friend who passed away on March Committee be discharged from further workers replaced by returning vet- 24 of this year. Millie Jeffrey is an icon action on S. Res. 353 and the Senate erans. From 1949 until 1954, Millie ran in the State of Michigan and in our proceed to its immediate consider- the union’s radio station. She moved country for civil rights, women’s ation. on to direct the Community Relations The PRESIDING OFFICER. The rights, and worker’s rights. Her life has Departments. She was director of the clerk will state the resolution by title. epitomized the principles by which we Consumer Affairs Department from The legislative clerk read as follows: all strive to live our lives—justice, 1968 until her retirement in 1976. equality, and compassion. Millie joined the NAACP in the 1940s A resolution (S. Res. 353) designating May Although small in stature, Millie has and marched in the South with Dr. 2004 as ‘‘Older Americans Month.’’ been a giant among all of us who have Martin Luther King Jr. in the 1960s. There being no objection, the Senate known her. Words cannot express the Former executive secretary of the De- proceeded to consider the resolution. depth of affection and respect in which troit Branch of the NAACP, Arthur Mr. FRIST. Mr. President, I ask Millie is held, nor can words quantify Johnson, said that ‘‘in the civil rights unanimous consent that the resolution the lives that she has touched. movement, she knew how to fight with- be agreed to, the preamble be agreed Mildred McWilliams Jeffrey, social out being disagreeable.’’ to, the motion to reconsider be laid justice activist, retired UAW Director Mildred Jeffrey also was very active upon the table, and that any state- of the Consumer Affairs Department in the Democratic Party, preferring to ments relating to the resolution be and a Governor Emerita of Wayne work behind the scenes organizing, printed in the RECORD. State University, died peacefully sur- canvassing, consulting, and fund- The PRESIDING OFFICER. Without rounded by her family early this morn- raising. She was the consummate objection, it is so ordered. ing in the Metro Detroit area. She was strategist. Millie provided savvy advice The resolution (S. Res. 353) was 93. In 2000, President William Clinton to Democratic officeholders and presi- agreed to. awarded here the Medal of Freedom, dents from JFK to Bill Clinton. Sen- The preamble was agreed to. the highest civilian award bestowed by ator EDWARD KENNEDY observed, The resolution, with its preamble, the United States government. ‘‘whether it was a worker in a plant, or reads as follows: In seeking world peace by ensuring whether it was a Congressman or Sen- S. RES. 353 equality for all, Millie spent a lifetime ator or President, Millie inspired peo- Whereas today’s older Americans are living working on labor, civil rights, edu- ple.’’ longer, healthier, and more productive lives cation, health care, youth employ- As a founding member and chair of than any other time in our history; ment, and recreation issues. She the National Women’s Political Cau- Whereas older Americans exemplify the brought inspiration and humor to the cus, Millie supported female candidates theme of ‘‘Aging Well, Living Well’’ by con- for public office. Twenty years ago she tinuing to give their time to our commu- many people she touched—and did so nities, their knowledge to our children, their with optimism and undaunted spirit. led the effort to nominate Geraldine experience to our workplace, and their wis- Millie’s list of accomplishments and Ferraro as Walter Mondale’s running dom to all of us; awards is long but what she is most re- mate. Most recently, Millie delighted Whereas there are now more than 50,000 membered for is her zest for orga- in being represented by Michigan people in the United States 100 years old or nizing. She mentored legions of women women she supported, Governor Jen- older; and men in the labor, civil rights, nifer Granholm, and myself. Millie is Whereas more than 47 million Americans women’s rights, and peace movements. the ‘‘political godmother’’ for many of are now 60 years old or older; us, and we are extremely grateful for Whereas the opportunities and challenges As President Clinton noted: ‘‘Her im- that await our Nation require our Nation to pact will be felt for generations, and her love and support. Millie was one of continue to commit to the goal of improving her example never forgotten.’’ the most important mentors in my life the quality of life for all older Americans; Born in Alton, IA, on December 29, and I will always be very, very grateful and 1910, Millie was the oldest of seven chil- to her.

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00153 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S6046 CONGRESSIONAL RECORD — SENATE May 20, 2004 Millie ran for public office in 1974 and life was celebrated and honored by her The resolution (S. Res. 367) was was elected by the people of the State family and friends through photos, agreed to. of Michigan to the Wayne State Uni- speech and song. Many of her friends The preamble was agreed to. versity Board of Governors, an office gave heartwarming accounts on how The resolution, with its preamble, she held for 16 years—1974–1990. She she helped them as well as our country. reads as follows: was so proud of her role in supporting As the memorial service concluded, one S. RES. 367 this wonderful university. She served thing became very clear. Millie is no Whereas Mildred McWilliams ‘‘Millie’’ Jef- three terms as board chair. Millie loved longer with us, but she will be with us frey, a social justice activist, a retired UAW Wayne State University and was a forever because her spirit will continue Director of the Consumer Affairs Depart- long-time resident on campus. She in all of us. ment, and a Governor Emerita of Wayne State University, died peacefully surrounded never tired of showing visitors around I thank my colleagues for the sup- by her family on March 24, 2004, in the Metro her ‘‘neighborhood’’—the Adamany Un- port of this resolution. Detroit, Michigan area at the age of 93; dergraduate Library, the Hilberry The- I yield the floor. Whereas in 2000, President Clinton awarded atre, and the Walter P. Reuther Li- Mr. LEVIN. Today, Mr. President, I Millie the Medal of Freedom, the highest ci- brary. Millie thrived in the academic join Senator STABENOW in introducing vilian award bestowed by the United States environment enriched by Wayne State a resolution to celebrate and to honor Government; University students. the life of an extraordinary American Whereas in seeking world peace by ensur- woman, Mildred Jeffrey. Millie Jeffrey ing equality for all, Millie spent a lifetime Her friendships extended worldwide working on labor, civil rights, education, across all ages and nationalities. was a shining star in the firmament of health care, youth employment, and recre- Whether discussing math with teen- our State and Nation. Her legendary ation issues; agers in Wayne State’s Math Corps, or courage and her incredible tenacity Whereas Millie brought inspiration and strategizing at the UN Conference on were an inspiration to all who came humor to the many people she touched and Women about the plight of sweatshop within her orbit. did so with optimism and undaunted spirit; workers, Millie’s capacity for con- Throughout her life, Millie fought te- Whereas Millie, a woman of influence and naciously to advance civil rights and of great moral character, was always a voice necting with people was unmatched. of conscience and reason; Millie’s capacity for connecting with break down the racial barriers that di- Whereas Millie provided a voice for those people was unmatched. As one who vide us. She fought for workers’ rights, that could not be heard and hope for those traveled with her to the Fourth World making sure that the people who make that no longer believed, and because of this Conference on Women in Beijing, it was up the backbone of our business and in- her legacy will continue to live on for gen- amazing to see people from all over the dustry are given a voice and afforded erations to come; world, hearing we were from Michigan, fair treatment. She was a pioneer for Whereas Millie’s list of accomplishments asking if we knew Millie Jeffrey and if women’s rights, opening doors and pro- and awards is long but what she is most re- viding opportunities for women that membered for is her zest for organizing, in- we could tell them where she was; or cluding mentoring legions of women and men that their grandmother, their aunt, were merely a dream for women before in the labor, civil rights, women’s rights, and suggested they meet Millie Jeffrey. her. We can all say that our world is peace movements; I often said the way to world peace more just and more humane because of Whereas President Clinton stated that was to let Millie loose; sooner or later, Millie. ‘‘her impact will be felt for generations, and we would all know Millie Jeffrey and We couldn’t begin to count all of the her example never forgotten’’; come to understand each other. people she assisted, all of the careers Whereas Millie was born in Alton, Iowa on Millie was inducted into the Michi- she helped launch, and all of the walls December 29, 1910, and was the oldest of 7 children; gan Women’s Hall of Fame and was an she broke down. She was a major force Whereas in 1932 Millie graduated from the original board member of the Michigan in the election of Michigan’s first fe- University of Minnesota with a bachelor’s Women’s Foundation. She served in male Senator and first female gov- degree in psychology and in 1934 Millie re- various leadership roles in a wide vari- ernor; how wonderful it is that she ceived a master’s degree in social economy ety of national and State organizations lived to see both Senator DEBBIE STA- and social research from Bryn Mawr College; such as the Michigan Women’s Polit- BENOW and Governor Jennifer Whereas Millie became an organizer for the ical Caucus, the Coalition for Labor Granholm take office. Amalgamated Clothing Workers of America Union Women, Americans for Demo- It is a mystery how her larger-than- in Philadelphia, Pennsylvania, and later became Educational Director of the Pennsyl- cratic Action, National Abortion life passion, energy, enthusiasm, and vania Joint Board of Shirt Workers; Rights Action League, Voters for kindness fit into such a tiny frame. Whereas in 1936, Millie married fellow Choice, EMILY’s List, and the Amer- Every person who ever met with her or Amalgamated Clothing Workers of America ican Civil Liberties Union. She served talked with her or felt her spirit was organizer Homer Newman Jeffrey, and they on the peer review board of Blue Cross left with a deep sense of awe and re- traveled throughout the South and East or- and was an active member of the First spect for her extraordinarily good na- ganizing textile workers; Unitarian Universalist Church in De- ture and her commitment to good Whereas during World War II, the Jeffreys troit. deeds. It is a badge of honor to be able worked in Washington, D.C., as consultants She was also an adoring mother of a to the War Labor Board, where they became to say ‘‘I knew Millie Jeffrey.’’ close friends with Walter, Victor, and Roy son and a daughter and adoring grand- Millie famously said that she would Reuther; mother who developed and nourished retire only when she died, and she cer- Whereas the Jeffreys moved to Detroit, creativity and curiosity in her two tainly lived up to that promise, work- Michigan in 1944 when Victor Reuther of- grandchildren who she loved dearly, ing and fighting until the very end. We fered Millie a job as director of the newly Erica Jeffrey and Thomas Jeffrey. She all wish her retirement could have been formed UAW Women’s Bureau; encouraged Erica’s love of ballet. She later, but her legacy and her inspira- Whereas Millie’s commitment to equal urged Thomas to travel to learn about tion will be a major presence in Michi- rights fueled her career at the UAW; the world and was so proud of his gan and the Nation forever. Whereas Millie organized the first UAW women’s conference in response to the mas- AmeriCorps Service. I know all of my colleagues will join sive postwar layoffs of women production All of these lists of awards, duties, me in celebrating her life and honoring workers, who were replaced by returning vet- responsibilities, and committees do not her memory. erans; say what Millie is all about: Millie Jef- Mr. FRIST. Mr. President, I ask Whereas from 1949 until 1954, Millie ran the frey was a one-of-a-kind woman of unanimous consent that the resolution UAW’s radio station; great passion, of great commitment, of be agreed to, the preamble be agreed Whereas Millie moved on to direct the great interest in knowing about each to, the motion to reconsider be laid Community Relations Department of the one of us and what we were doing and upon the table, and that any state- UAW; Whereas Millie served as Director of the what we cared and how she could help. ments relating to the measure be print- Consumer Affairs Department of the UAW Yesterday, 250 people came to Wash- ed in the RECORD, without intervening from 1968 until her retirement in 1976; ington, DC, from all over the country action or debate. Whereas Millie joined the NAACP in the to remember Millie and to share how The PRESIDING OFFICER. Without 1940s and marched in the South with Dr. Millie had touched their lives. Millie’s objection, it is so ordered. Martin Luther King, Jr. in the 1960s;

VerDate Mar 15 2010 22:17 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00154 Fmt 4624 Sfmt 0634 E:\2004SENATE\S20MY4.REC S20MY4 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 20, 2004 CONGRESSIONAL RECORD — SENATE S6047 Whereas Former Executive Secretary of The concurrent resolution (H. Con. APPOINTMENT OF CONFEREES— the Detroit Branch of the NAACP, Arthur Res. 424) was agreed to. H.R. 3550 Johnson, said that ‘‘in the civil rights move- The preamble was agreed to. ment, she knew how to fight without being The PRESIDING OFFICER. The disagreeable’’; f Chair appoints the following conferees Whereas Millie ran for public office in 1974 MEASURES READ THE FIRST on behalf of the Senate: and was elected by the people of Michigan to TIME—S. 2451 and H.R. 4279 The Presiding Officer (Mr. Coleman) ap- the Wayne State University Board of Gov- Mr. FRIST. Mr. President, I under- pointed Mr. Inhofe, Mr. Warner, Mr. Bond, ernors, an office she held for 16 years (1974– Mr. Voinovich, Mr. Grassley, Mr. Hatch, Mr. 1990); stand there are two bills at the desk, Nickles, Mr. Lott, Mr. Shelby, Mr. McCain, Whereas Millie served 3 terms as chair of and I ask that they be read for the first Mr. McConnell, Mr. Jeffords, Mr. Reid, Mr. the Wayne State University Board of Gov- time, en bloc. Graham of Florida, Mr. Lieberman, Mrs. ernors; The PRESIDING OFFICER. Without Boxer, Mr. Daschle, Mr. Hollings, Mr. Sar- Whereas Millie loved Wayne State Univer- objection, the clerk will read the titles banes, Mr. Baucus, and Mr. Conrad. sity and was a long-time resident on campus; of the bills for the first time, en bloc. f Whereas Millie never tired of showing visi- The legislative clerk read as follows: tors around her ‘‘neighborhood’’—the ORDERS FOR FRIDAY, MAY 21, 2004 Adamany Undergraduate Library, the A bill (S. 2451) to amend the Agricultural Hilberry Theatre, and the Walter P. Reuther Marketing Act of 1946 to restore the applica- Mr. FRIST. I ask unanimous consent Library of Wayne State University; tion date of country of origin labeling. that when the Senate completes its Whereas Millie thrived in the academic en- A bill (H.R. 4279) to amend the Internal business today, it adjourn until 9:30 vironment enriched by Wayne State Univer- Revenue Code of 1986 to provide for the dis- a.m. on Friday, May 21. I further ask sity students; position of unused health benefits in cafe- that following the prayer and the teria plans and flexible spending arrange- Whereas whether discussing mathematics pledge, the morning hour be deemed with teenagers in Wayne State University’s ments, to improve patient access to health care services and provide improved medical expired, the Journal of proceedings be Math Corps or strategizing at the United Na- approved to date and the time for the tions Conferences on Women about the care by reducing the excessive burden the li- plight of sweatshop workers, Millie’s capac- ability system places on the health care de- two leaders be reserved for their use ity for connecting with people was un- livery system, and to amend title I of the later in the day, and the Senate then matched; Employee Retirement Income Security Act resume consideration of Calendar No. Whereas Millie was inducted into the of 1974 to improve access and choice for en- 503, S. 2400, the Department of Defense Michigan Women’s Hall of Fame and was an trepreneurs with small businesses with re- authorization bill. spect to medical care for their employees. original member of the board of the Michi- The PRESIDING OFFICER. Without gan Women’s Foundation; Mr. FRIST. I now ask for their sec- objection, it is so ordered. Whereas Millie served in various leadership ond reading and, in order to place the roles in a wide variety of national and State bills on the calendar under rule XIV, I f organizations; object to further proceedings of these PROGRAM Whereas Millie served on the peer review matters, en bloc. Mr. FRIST. Mr. President, tomorrow board of Blue Cross; The PRESIDING OFFICER. Objec- Whereas Millie also was an active member the Senate will resume consideration of the First Unitarian Universalist Church in tion is heard. The bills will receive of the Department of Defense author- Detroit; and their second reading on the next legis- ization bill. There will be no votes to- Whereas the United States mourns the lative day. morrow, but Senators WARNER and death of Mildred McWilliams ‘‘Millie’’ Jef- f LEVIN will have a series of cleared frey: Now, therefore be it Resolved, That the Senate— MEASURES PLACED ON THE amendments. Following that action, (1) honors the life of Mildred McWilliams CALENDAR—H.R. 2728 and S. 2448 we will proceed to a period for morning business to accommodate Senators who ‘‘Millie’’ Jeffrey and her contributions to her Mr. FRIST. Mr. President, I under- do wish to make statements. community and to the United States; and stand there are two bills at the desk (2) directs the Secretary of the Senate to As I stated earlier, there will be no due for their second reading. I ask transmit an enrolled copy of this resolution votes during tomorrow’s session. The unanimous consent that the bills be to the family of Millie Jeffrey. next vote will occur on Tuesday, June given their second reading, en bloc. f The PRESIDING OFFICER. Without 1, the day we return from recess. I will HONORING PAST AND CURRENT objection, the clerk will read the titles have more to say tomorrow on the MEMBERS OF THE ARMED of the bills for the second time, en bloc. post-recess schedule. FORCES OF THE UNITED STATES The legislative clerk read as follows: f Mr. FRIST. Mr. President, I ask A bill (H.R. 2728) to amend the Occupa- ADJOURNMENT UNTIL 9:30 A.M. unanimous consent that the Senate tional Safety and Health Act of 1970 to pro- TOMORROW vide for adjudicative flexibility with regard proceed to the immediate consider- Mr. FRIST. If there is no further ation of H. Con. Res. 424, which is at to an employer filing of a notice of contest following the issuance of a citation by the business to come before the Senate, I the desk. Occupational Safety and Health Administra- ask unanimous consent that the Sen- The PRESIDING OFFICER. The tion; to provide for greater efficiency at the ate stand in adjournment under the clerk will report the concurrent resolu- Occupational Safety and Health Review previous order. tion by title. Commission; to provide for an independent There being no objection, the Senate, The legislative clerk read as follows: review of citations issued by the Occupa- at 7:39 p.m., adjourned until Friday, tional Safety and Health Administration; to A concurrent resolution (H. Con. Res. 424) May 21, 2004, at 9:30 a.m. honoring past and current members of the provide for the award of attorney’s fees and Armed Forces of the United States and en- costs to very small employers when they pre- f couraging Americans to wear red poppies on vail in litigation prompted by the issuance of NOMINATIONS Memorial Day. citations by the Occupational Safety and There being no objection, the Senate Health Administration; and to amend the Executive nominations received by Paperwork Reduction Act and titles 5 and 31, proceeded to consider the concurrent the Senate May 20, 2004: United States Code, to reform Federal paper- OFFICE OF PERSONNEL MANAGEMENT resolution. work and regulatory processes. Mr. FRIST. Mr. President, I ask A bill (S. 2448) to coordinate rights under EDWIN D. WILLIAMSON, OF SOUTH CAROLINA, TO BE DI- RECTOR OF THE OFFICE OF GOVERNMENT ETHICS FOR A unanimous consent that the concur- the Uniformed Services Employment and Re- TERM OF FIVE YEARS, VICE AMY L. COMSTOCK, RE- rent resolution be agreed to, the pre- employment Rights Act of 1994 with other SIGNED. amble be agreed to, the motion to re- Federal laws. CORPORATION FOR NATIONAL AND COMMUNITY consider be laid upon the table, and Mr. FRIST. I object to further pro- SERVICE that any statement relating to the con- ceedings on the measures, en bloc, at MARK D. GEARAN, OF NEW YORK, TO BE A MEMBER OF THE BOARD OF DIRECTORS OF THE CORPORATION FOR current resolution be printed in the this time. NATIONAL AND COMMUNITY SERVICES FOR A TERM OF RECORD. The PRESIDING OFFICER. Under ONE YEAR. (NEW POSITION) The PRESIDING OFFICER. Without the rule, the bills are placed on the cal- LEONA WHITE HAT, OF SOUTH DAKOTA, TO BE A MEM- BER OF THE BOARD OF DIRECTORS OF THE CORPORA- objection, it is so ordered. endar. TION FOR NATIONAL AND COMMUNITY SERVICE FOR A

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TERM EXPIRING OCTOBER 6, 2008, VICE AMY C. ACHOR, ERIC J TIBBETS, 0000 MARK R HAGEROTT, 0000 TERM EXPIRED. JOHN B WESTERBEKE, 0000 ANDREW M HALE, 0000 STEVEN R WRIGHT, 0000 WILLIAM C HAMILTON, 0000 NATIONAL COUNCIL ON DISABILITY MAUDE E YOUNG, 0000 JEFFREY A HARLEY, 0000 CHARLES K HARRIS, 0000 MILTON APONTE, OF FLORIDA, TO BE A MEMBER OF THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT THE NATIONAL COUNCIL ON DISABILITY FOR A TERM EX- FRANCIS L HARRISON JR., 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY WILLIAM J HART, 0000 PIRING SEPTEMBER 17, 2006. (REAPPOINTMENT) UNDER TITLE 10, U.S.C., SECTION 624: ROBERT DAVILA, OF NEW YORK, TO BE A MEMBER OF MARK J HELLSTERN, 0000 THE NATIONAL COUNCIL ON DISABILITY FOR A TERM EX- To be captain DAVID M HENDRICKS, 0000 PIRING SEPTEMBER 17, 2006. (REAPPOINTMENT) RANDALL M HENDRICKSON, 0000 THOMAS J BROVARONE, 0000 PAUL E HENNES, 0000 YOUNG WOO KANG, OF INDIANA, TO BE A MEMBER OF DARREL S DEHAVEN, 0000 MICHAEL W HEWITT, 0000 THE NATIONAL COUNCIL ON DISABILITY FOR A TERM EX- MARY E DEXTER, 0000 CHARLES R HILL, 0000 PIRING SEPTEMBER 17, 2006. (REAPPOINTMENT) ALFRED O GAISER, 0000 BRIAN E HINKLEY, 0000 KATHLEEN MARTINEZ, OF CALIFORNIA, TO BE A MEM- ALLAN G GALSGAARD, 0000 JOSEPH M HINSON JR., 0000 BER OF THE NATIONAL COUNCIL ON DISABILITY FOR A MICHAEL R GOOD, 0000 GEORGE F HOFFER, 0000 TERM EXPIRING SEPTEMBER 17, 2006. (REAPPOINTMENT) STEPHEN E IWANOWICZ, 0000 OWEN P HONORS JR., 0000 LINDA WETTERS, OF OHIO, TO BE A MEMBER OF THE MARY J LOGSDON, 0000 JAMES B HOPKINS II, 0000 NATIONAL COUNCIL ON DISABILITY FOR A TERM EXPIR- ROBERT W MAZZONE, 0000 ROBERT S HOSPODAR, 0000 ING SEPTEMBER 17, 2006. (REAPPOINTMENT) PETER A NARDI, 0000 JOHN R HOUFEK, 0000 IN THE ARMY GERALDINE L OLSON, 0000 MARK R HOYLE, 0000 CHRISTOPHER R PIETRAS, 0000 THOMAS W HUFF, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT MARK E POWELL, 0000 PETER P HUNT, 0000 TO THE GRADE INDICATED IN THE UNITED STATES ARMY NEIL C STUBITS, 0000 JAMES F HUNTER, 0000 UNDER TITLE 10, U.S.C., SECTIONS 624: ROBERT T SUSBILLA, 0000 KELLY M JOHNSON, 0000 ROBERT J VINCE, 0000 CJ KALB, 0000 To be colonel MARK R WHITNEY, 0000 JONATHAN H KAN, 0000 PAUL R. DISNEY JR., 0000 ERIC G KANIUT, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT CHRISTOPHER J KELLY, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT TO THE GRADE INDICATED IN THE UNITED STATES NAVY PHILLIP R KESSLER, 0000 TO THE GRADE INDICATED IN THE UNITED STATES ARMY UNDER TITLE 10, U.S.C., SECTION 624: ANDREW A KING, 0000 UNDER TITLE 10, U.S.C., SECTIONS 624: To be captain MARK S KINNANE, 0000 STEVEN G KOCHMAN, 0000 To be lieutenant colonel KENT R AITCHESON, 0000 KEVIN J KOVACICH, 0000 ERIC R. RHODES, 0000 JOHN S ANDREWS, 0000 JAMES H KRUSE, 0000 JOHN S ARBTER, 0000 DIETRICH H KUHLMANN III, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT CLAYTON L ARMSTRONG, 0000 JAMES M KUZMA, 0000 TO THE GRADE INDICATED IN THE UNITED STATES ARMY ROBERT A ARONSON, 0000 LEIF E LAGERGREN, 0000 AS CHAPLAINS AND FOR REGULAR APPOINTMENT (IDEN- MICHAEL L ARTURE, 0000 CHARLES W LAINGEN, 0000 TIFIED BY AN ASTERISK(*)) UNDER TITLE 10, U.S.C., SEC- DUANE R ASHTON, 0000 BERNARD O LESSARD, 0000 TIONS 624, 531, AND 3064: KENNETH W AUTEN, 0000 EDWARD J LESTER, 0000 To be lieutenant colonel THOMAS W BAILEY, 0000 KENNETH C LEVINS, 0000 DAVID J BARTHOLOMEW JR., 0000 JAY S LEWIS, 0000 EDWIN E. AHL, 0000 JEFFREY S BARTKOSKI, 0000 JOHN J LITHERLAND, 0000 DANIEL T. AMES, 0000 RUSSELL J BARTLETT, 0000 BRIAN L LOSEY, 0000 WILLIAM O. BAREFIELD, 0000 TIMOTHY A BATZLER, 0000 SHERMAN R LUPTON, 0000 MICHAEL E. BRAINERD, 0000 STEVEN BAXTER, 0000 ANDREW T MACYKO, 0000 DAVID M. BROWN, 0000 THOMAS R BEALL, 0000 STEPHEN G MARR, 0000 JAMES R. CARTER, 0000 STEPHEN W BECKVONPECCOZ JR., 0000 MICHAEL L MARTIN, 0000 MICHAEL D. CHARLES, 0000 FREDERICK T BLANCHARD, 0000 DAVID F MATAWITZ, 0000 TIMOTHY B. EGGLESTON, 0000 GEORGE BONSALL, 0000 DAVID N MAYNARD, 0000 GREGORY J. ESTES, 0000 JAMES R BOORUJY, 0000 STUART A MCCORMICK, 0000 JOSEPH M. FLEURY, 0000 STEVEN A BORDEN, 0000 JEFFREY L MCKENZIE, 0000 JONATHAN C. GIBBS III, 0000 TODD W BOSTOCK, 0000 WILLIAM C MCQUILKIN, 0000 MARTHA J. HAYES, 0000 IRVIN G BOUGH, 0000 RONALD W MELAMPY, 0000 JACK B. HERRON, 0000 DANIEL E BRASWELL, 0000 STEPHEN T MILLER, 0000 JAMES P. KING, 0000 STEVEN G BROCKETT, 0000 MARK C MONTGOMERY, 0000 WARREN E. KIRBY JR., 0000 BRIAN J BROENE, 0000 SCOTT P MOORE, 0000 MARVIN W. LUCKIE, 0000 MICHAEL W BROWN, 0000 FRANK A MORNEAU, 0000 JOEL A. LYTLE, 0000 THOMAS L BROWN II, 0000 ERIC B MOSS, 0000 JONATHAN A. MCGRAW, 0000 SEAN S BUCK, 0000 MICHAEL J MURPHY, 0000 CAROL A. * MITCHELL, 0000 KENDALL A BURDICK, 0000 DAVID A MURRAY, 0000 JERRY L. OWENS, 0000 RICHARD W BUTLER, 0000 STEVEN J MYERS, 0000 WRAY B. PHYSIOC III, 0000 MICHAEL W BYMAN, 0000 JOHN P NEAGLEY, 0000 CARL R. RAU, 0000 KEVIN P CAMPBELL, 0000 RANDALL A NEAL, 0000 HARRY A. RAUCH III, 0000 SHARON B L CAMPBELL, 0000 DUANE E NESTOR, 0000 BARBARA K. SHERER, 0000 RONALD R CARLSON, 0000 JOSEPH F NOLAN, 0000 THOMAS L. SOLHJEM, 0000 EVON B CARTER, 0000 CHARLES E NORBERG JR., 0000 VALERIE B. * STJOHN, 0000 THOMAS J CHASSEE, 0000 JOHN C NYGAARD, 0000 GARY R. * STUDNIEWSKI, 0000 JAY M CHESNUT, 0000 JOHN C OBERST, 0000 HARLON J. TRIPLETT JR., 0000 TIMOTHY M CONROY, 0000 PAUL G OCONNOR, 0000 BRYAN J. WALKER, 0000 WILLIAM T COONEY, 0000 JEFFREY A OGUREK, 0000 STEPHEN M. WALSH, 0000 BRIAN T COSTELLO, 0000 CLIFFORD I OLSEN, 0000 DAVID L. WATERS SR., 0000 JOHN J COSTELLO, 0000 LEE A OLSON, 0000 JAMES C. WATSON, 0000 CALVIN H CRAIG, 0000 MARK J OLSON, 0000 THOMAS C. WAYNICK, 0000 RICHARD T CREANGE, 0000 JAMES E OTIS, 0000 JERRY M. WOODBERY, 0000 JOSEPH D CREED, 0000 JONATHAN M PADFIELD, 0000 MARK A. ZERGER, 0000 THOMAS R CRIGER, 0000 PHILLIP C PARDUE, 0000 TERRENCE E CULTON, 0000 NEIL R PARROTT, 0000 IN THE MARINE CORPS JEFFREY S CURRER, 0000 JAMES PAULSEN, 0000 THE FOLLOWING NAMED OFFICER FOR TEMPORARY JEFFREY S DALE, 0000 THOMAS J PAYNE, 0000 APPOINTMENT TO THE GRADE INDICATED IN THE STEPHEN F DAVIS JR., 0000 TYRONE PAYTON, 0000 UNITED STATES MARINE CORPS UNDER TITLE 10, U.S.C., TODD C DAVIS, 0000 JAMES A PELKOFSKI, 0000 SECTION 6222: WILLIAM G DAVIS, 0000 GARY C PETERSON, 0000 MARK J DEARDURFF, 0000 FREDERICK W PFIRRMANN, 0000 To be lieutenant colonel CARLOS DELTORO, 0000 ANN C PHILLIPS, 0000 JOSEPH F DEMARCO, 0000 SCOTT J PHILLPOTT, 0000 MICHAEL J. COLBURN, 0000 PAUL S DILLMAN, 0000 JONATHAN D PICKER, 0000 IN THE NAVY DAVID R DIORIO, 0000 MICHEL T POIRIER, 0000 DAVID M DOBER, 0000 SCOTT D POLLPETER, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT MATTHEW H DOLAN, 0000 FERNANDEZ L PONDS, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY BRIAN T DONEGAN, 0000 CLYDE C PORTER JR., 0000 UNDER TITLE 10, U.S.C., SECTION 624: CHARLES J DOTY, 0000 MATTHEW J PRINGLE, 0000 To be captain ANTHONY H DROPP, 0000 WILLIAM R RADOMSKI, 0000 CHARLES F DRUMMOND, 0000 MARK E REDDEN, 0000 WILLIAM J. ALDERSON, 0000 DAVID M DURYEA, 0000 MARKHAM K RICH, 0000 JAMES W. GRAYBEAL, 0000 ANDREW W EDDOWES, 0000 STEVEN C RITCHIE, 0000 CHARLES D. MCWHORTER, 0000 MATTHEW J FALETTI, 0000 JOSEPH W RIXEY, 0000 DENNIS J. MOYNIHAN, 0000 ROBERT D FINK, 0000 WILLIAM J ROBERTSON, 0000 ROBERT D. NEWELL, 0000 WILLIAM J FLANAGAN JR., 0000 RONALD B ROBINSON, 0000 HAROLD E. PITTMAN, 0000 JAMES H FLATLEY IV, 0000 ANTHONY C RODGERS, 0000 THOMAS A FLISK JR., 0000 ENRIQUE L SADSAD, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT DANIEL P FORNEY, 0000 MICHAEL J SALVATO, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY DAVID M FOX, 0000 KENNETH R SAULT, 0000 UNDER TITLE 10, U.S.C., SECTION 624: PAUL J FROST, 0000 PHILLIP G SAWYER, 0000 To be captain DAVID J FUHRMANN, 0000 PATRICK J SCANLON, 0000 ANTHONY E GAIANI, 0000 ROBERT J SCHMIDT, 0000 AARON L BOWMAN, 0000 SCOTT M GALBREAITH, 0000 DAVID A SCHNELL, 0000 JAMES R BROWN, 0000 DAVID J GALE, 0000 LEE W SCHONENBERG, 0000 ROBERT L CURBEAM JR., 0000 CHRISTOPHER P GALLAGHER, 0000 STEVEN R SCHREIBER, 0000 CHRISTOPHER J FERGUSON, 0000 MATTHEW J GARSIDE, 0000 JOHN E SCHWERING JR., 0000 CHRISTOPHER H FLOOD, 0000 MARK D GENUNG, 0000 JOHN C SCORBY JR., 0000 JOHN B HERRINGTON, 0000 JOHN M GERAGOTELIS, 0000 JAMES G SCOTT, 0000 WADE E KNUDSON, 0000 MICHAEL M GILDAY, 0000 EDWARD B SEAL, 0000 RICHARD C MULDOON, 0000 ROBERT P GIRRIER, 0000 JOHN C SHEEHAN, 0000 GREGORY A SILVERNAGEL, 0000 MICHAEL H GLASER, 0000 MICHAEL SHERLOCK, 0000 CLAY J SNAZA, 0000 MICHAEL G GRAHAM, 0000 GARY SHOMAN, 0000

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PAUL W SIEGRIST, 0000 MATTHEW J KOHLER, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT CHARLES J SITARSKI, 0000 JAMES F MCDOUGALL, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY CHAD M SKIDMORE, 0000 JOHN W MENGEL JR., 0000 UNDER TITLE 10, U.S.C., SECTION 624: JOHN M SLAUGHTER, 0000 ROBIN K MYERS, 0000 STEVEN E SLOAN, 0000 ERIC W OLSON, 0000 To be captain DIXON R SMITH, 0000 TIMOTHY B PENCE, 0000 ANDREW BROWN III, 0000 GREGG K SMITH, 0000 ROY N PETERSON, 0000 JESSIE C. CARMAN, 0000 HENRY C SMITH, 0000 JOHN M SANFORD, 0000 JOHN D. COUSINS, 0000 MICHAEL E SMITH, 0000 JOHN T SEGURA, 0000 PAUL K. HEIM II, 0000 TIMOTHY T SMITH, 0000 FRED C SMITH, 0000 STEVEN W. WARREN, 0000 RICHARD P SNYDER, 0000 JONATHAN W. WHITE, 0000 THOMAS P SNYDER, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT WAYNE P STAMPER, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT LEE A STEELE, 0000 UNDER TITLE 10, U.S.C., SECTION 624: TO THE GRADE INDICATED IN THE UNITED STATES NAVY JOHN J STEVENS III, 0000 To be captain UNDER TITLE 10, U.S.C., SECTION 624: PAUL T STEVENS, 0000 WARD E STEVENS, 0000 THOMAS H. BOND JR., 0000 To be captain ROBERT B STEWART, 0000 PATRICIA COLE, 0000 JERRY R. ANDERSON, 0000 JAY T STOCKS, 0000 ALICE L. RAND, 0000 JANE A. BARCLIFT, 0000 SCOTT M SUNDT, 0000 LAWRENCE R. SLADE, 0000 KAY L. DINOVA, 0000 CHARLES D SYKORA, 0000 CARL R. WALLSTEDT, 0000 ROBERT L. FIREHAMMER JR., 0000 NORBERT E SZARLETA JR., 0000 DIANE E. H. WEBBER, 0000 ROBERT J. GAINES, 0000 EDWARD L TAKESUYE, 0000 CARLENE D. WILSON, 0000 ANNEMARIE HARTLAUB, 0000 SCOTT J TAPPAN, 0000 PAMELA J. WYNFIELD, 0000 JAMES E. KNAPP JR., 0000 STEPHEN N THOMPSON, 0000 WALTER L TOWNS, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT THE JUDICIARY WILLIAM F TRAUB, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY JOHN G WALKER, 0000 UNDER TITLE 10, U.S.C., SECTION 624: LAURA A. CORDERO, OF THE DISTRICT OF COLUMBIA, GEORGE J WALTER JR., 0000 To be captain TO BE AN ASSOCIATE JUDGE OF THE SUPERIOR COURT GARY K WARING, 0000 OF THE DISTRICT OF COLUMBIA FOR THE TERM OF FIF- THOMAS G WEARS, 0000 KENNETH R. CAMPITELLI, 0000 TEEN YEARS, VICE SHELLIE FOUNTAIN BOWERS, RETIR- MALCOLM L WEATHERBIE, 0000 JON C. HARDING, 0000 ING. THOMAS E WEDDING, 0000 TIMOTHY A. HOLLAND, 0000 JULIET JOANN MCKENNA, OF THE DISTRICT OF COLUM- MICHAEL S WHITE, 0000 CINDY L. JAYNES, 0000 BIA, TO BE AN ASSOCIATE JUDGE OF THE SUPERIOR ANDREW S WHITSON, 0000 TIMOTHY S. MATTHEWS, 0000 COURT OF THE DISTRICT OF COLUMBIA FOR THE TERM KEVIN J WILSON, 0000 OF FIFTEEN YEARS, VICE NAN R. SHUKER, RETIRING. EDWARD R WOLFE, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT DEPARTMENT OF JUSTICE JOHN R WOOD, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY UNDER TITLE 10, U.S.C., SECTION 624: RANDOLPH L WOOD, 0000 ROBERT CLARK CORRENTE, OF RHODE ISLAND, TO BE JANICE M WYNN, 0000 To be captain UNITED STATES ATTORNEY FOR THE DISTRICT OF ULYSSES O ZALAMEA, 0000 RHODE ISLAND FOR THE TERM OF FOUR YEARS, VICE JOHN A ZANGARDI, 0000 JEFFREY J. BURTCH, 0000 MARGARET ELLEN CURRAN. STEVEN C ZARICOR, 0000 STEVEN O. CARDER, 0000 KEVIN S ZUMBAR, 0000 KEVIN R. HOOLEY, 0000 MARK C. JOHNSON, 0000 f THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT CHARLES B. JOHNSTON, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY FORBES O. MACVANE, 0000 UNDER TITLE 10, U.S.C., SECTION 624: JEFFREY D. PROPER, 0000 CONFIRMATIONS To be captain JAN E. TIGHE, 0000 Executive nominations confirmed by RICHARD L ARCHEY, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT VERNON D BASHAW, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY the Senate May 20, 2004: UNDER TITLE 10, U.S.C., SECTION 624: JEFFREY L CANFIELD, 0000 THE JUDICIARY EUSTAQUIO CASTROMENDOZA, 0000 To be captain EDWIN J DAUM JR., 0000 RAYMOND W. GRUENDER, OF MISSOURI, TO BE UNITED KRIS O DAVIS, 0000 EDWIN J. BURDICK, 0000 STATES CIRCUIT JUDGE FOR THE EIGHTH CIRCUIT. ERIC D EXNER, 0000 LEE R. JOHNSON JR., 0000 FRANKLIN S. VAN ANTWERPEN, OF PENNSYLVANIA, TO ROBERT V HOPPA, 0000 ROBERT J. PETRY, 0000 BE UNITED STATES CIRCUIT JUDGE FOR THE THIRD CIR- STEPHEN A KAPPES, 0000 STEPHEN K. TIBBITTS, 0000 CUIT.

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