E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 106 CONGRESS, SECOND SESSION

Vol. 146 WASHINGTON, MONDAY, FEBRUARY 7, 2000 No. 9 Senate The Senate met at 12:01 p.m. and was Mr. SPECTER. I thank the distin- about two very important issues, one called to order by the President pro guished President pro tempore. of which will come before the Senate tempore [Mr. THURMOND]. f later on this year, and that is the trade agreement with China which has just SCHEDULE PRAYER been negotiated. We call that perma- The Chaplain, Dr. Lloyd John Mr. SPECTER. On behalf of our dis- nent normal trading relations. The Ogilvie, offered the following prayer: tinguished majority leader, Mr. Presi- other subject is the WTO, which is an Gracious God, we begin this new dent, I have been asked to make the ongoing situation on which we prob- week with a renewed commitment to following announcement. ably will not take any action—at least You. The words of Mother Teresa of Today, the Senate will be in a period negative action—this year, but it is Calcutta stimulate greater depth in of morning business until 2 p.m. Fol- something we always have to consider our prayer: ‘‘Here I am Lord, body, lowing morning business, the Senate because every day and every hour there heart, and soul. Grant that with Your will begin consideration of S. 1052, the are certain decisions and discussions love I may be big enough to reach the Mariana Islands legislation. As pre- going on at the World Trade Organiza- world and small enough to be at one viously announced, there will be no tion that affect the U.S. economy. with You.’’ votes during today’s session of the Sen- On China and the permanent trade We echo this sentiment, Father. As ate. Therefore, any votes ordered on relations vote we are going to have, it we begin this new week, astound us the Mariana Islands bill will be sched- is very important that we do this right again with the limitless resources You uled to occur on Tuesday. Also on and do it soon but not do it before we offer us to do Your work. Remind us Tuesday, the Senate is expected to have all the information we need. It is that Your power is released for leader- begin consideration of the nuclear also important to get China into the ship that follows Your priorities of waste bill. It is hoped that action on World Trade Organization. righteousness, justice, and mercy. May that legislation can be completed by We do not vote on China going into our constant question be: ‘‘Lord, what the end of the week. I thank my col- the World Trade Organization as a Sen- do You want us to do?’’ Keep us humble leagues for their attention. ate, but it seems to me it is very nec- with the conviction that we could not f essary that we establish China with breathe a breath, think a thought, ORDER OF PROCEDURE permanent normal trading relations write with clarity, nor speak with per- with the United States in order to set Mr. SPECTER. Mr. President, I now suasion without Your grace and gifts. the stage for China to be in the WTO. ask unanimous consent that I may be So we move into this new week with This is the first time China has permitted to speak in morning business deeper dependence on You and greater agreed to submit itself to international next and following that, my distin- dedication to give You the glory for all trade disciplines. That, in and of itself, guished colleague from Iowa, the senior that we are and have and are able to is a very historic and important devel- Senator, Mr. GRASSLEY, may be per- do. You are our Lord and our Saviour. opment. Clearly, China acts in its own mitted to speak in morning business Jehovah, our God. Amen. national interest and, of course, the for up to 8 minutes. f United States should act in its own na- The PRESIDING OFFICER (Mr. ROB- tional interest. That is why I say it is PLEDGE OF ALLEGIANCE ERTS). Without objection, it is so or- most important to our national inter- The Honorable ARLEN SPECTER, a dered. est to agree to rules by which we can Senator from the State of Pennsyl- (The remarks of Mr. SPECTER per- conduct more open commerce with vania, led the Pledge of Allegiance, as taining to the introduction of S. Res. China. Common sense dictates that it follows: 253 are located in today’s RECORD under ‘‘Statements on Introduced Bills and is a win-win situation for the United I pledge allegiance to the Flag of the States since we have few restrictions United States of America, and to the Repub- Joint Resolutions.’’) lic for which it stands, one nation under God, The PRESIDING OFFICER. The dis- on imports of China’s products into the indivisible, with liberty and justice for all. tinguished Senator from Iowa is recog- United States. Basically, it is a no- f nized. brainer, as far as I am concerned, to ac- f cept their lowering barriers to our ex- RECOGNITION OF THE ACTING ports to that 1-billion-people Nation. MAJORITY LEADER PERMANENT NORMAL TRADING As far as the issue of human rights The PRESIDENT pro tempore. The RELATIONS WITH CHINA and national security—and they always Senator from Pennsylvania is recog- Mr. GRASSLEY. Mr. President, I come up when we discuss this issue nized. want to spend a few minutes talking with China—I believe the United States

∑ 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 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S346 CONGRESSIONAL RECORD — SENATE February 7, 2000 is big enough, the United States is vote after all these steps in the process that were left on the table in Seattle or strong enough, we are sophisticated are completed. Senators, including this even on the question of whether to re- enough, and we are smart enough to Senator, of course, will want to care- start the negotiations on drafting a serve more than one vital national in- fully review—in fact we have the re- ministerial declaration. terest at the same time. sponsibility to make sure we carefully Instead, I think we will see, in Gene- In other words, we can be concerned review—the results of the protocol va, a period of quiet consultation and about human rights, we obviously have working party, which may be held in consensus building. Considering the to be concerned about our national se- March, and carefully look at all the de- disaster that took place in Seattle, curity because no other nation will be, tails before we schedule the permanent maybe it is easy to conclude that we do but we can also be concerned about our normal trading relations vote. need a period of quiet consultation, and commerce with other countries, par- As far as the Senate action on nor- particularly consensus building, be- ticularly the biggest country in the mal trading relations is concerned, I cause nothing happens in the WTO ex- world, a country that has reduced, expect that every aspect of the agree- cept by consensus. So if everybody wor- through this agreement, barriers for ment be transparent. That means ev- ries about America’s interests being our goods to go to their country; in erything besides the protocols—mean- compromised at the WTO, just remem- other words, setting the stage for a ing the written protocols, including ber, it is done by consensus. If the more level playing field because we al- side letters, oral or even wink-of-the- United States does not agree to it, it ready let a lot of Chinese goods into eye understandings—must be put on will not get done. this country. There are very few re- the table before the Senate so that Seattle, of course, was a huge shock strictions. each of the 100 Senators are aware of to the World Trade Organization and We can take our commerce into them. That is what I mean when I say the process. We must try to restore mind, we can take human rights and transparency. mutual confidence among all the par- national security into mind, and we do As Senators, we cannot make the ties. The negotiators will need some not have to compromise. We can and same mistake we made with the Cana- time, perhaps even a few months, to re- must have a national security policy dian Free Trade Agreement, of being fine their positions after the start of that protects our vital security inter- oblivious to the side letter, the agree- consultations. ests. When there is a breakdown that ment contents of which have been un- In summary, I see the next few weeks threatens our security, we must and fair to our wheat farmers ever since. and months in Geneva as a period will fix it. We can and must speak out Senators never knew about that until where we try to restore faith in the for the oppressed who cannot speak for about 5 or 6 years after the Canadian World Trade Organization and in each themselves, and we can and must ad- Free Trade Agreement was voted on by other and try to rebuild the ground- vance our interests in open markets the Senate. That is why, when it comes work for the process of establishing a and trade liberalization. to normal trading relations with consensus on trade. Progress may be We can and must do all these things China—and it is very important we ap- incremental, but I believe we can at the same time. We can do this be- prove that agreement—everything has achieve it. cause trade, in and of itself, has so to be on the table. When it comes right down to it, re- many different dimensions. Through On the issue of the World Trade Orga- building this confidence is not just a trade, we export more than goods. We nization, the most shocking thing that job for the WTO or just for our nego- export more than manufactured prod- happened in Seattle—apart from the tiators; it is a challenge we will have ucts and services. When we have peo- riots and the mindless destruction— to address in the Senate, particularly ple-to-people relations that come about was that there was no consensus to in the Finance Committee and in my through commerce, we export part of move forward. No agenda was agreed trade subcommittee. our values, part of what makes Amer- to. This lack of consensus is especially How can we get there? I believe there ica great: our American values. We also shocking when you consider how much is one way. We must make a moral case export, it seems, part of our society. trade has helped bring unprecedented for free trade. We must do a better job That is why we must engage China prosperity not only to the United of making the case that free trade has commercially. States but around the world. helped us keep the peace, that free While I would like to see the Senate In 1947, when this all started with the trade has brought freedom and pros- vote to approve permanent trading re- first round of multilateral trade nego- perity to millions, that it has helped lations for China as soon as possible, tiations—that was called the Geneva families and nations attain new levels the timing of this vote is not entirely Round—the total world value of trade of economic progress. I believe it is up in the Senate’s hands. was only $50 billion. Today, it is $7 tril- to Congress to help make the moral First, China has to complete its re- lion. It is hard to think of a moment in case for free trade. The future of our maining bilateral negotiations, espe- history when such prosperity has been international trading system may de- cially with the European Union. The generated in such a short period of pend upon how well we do it. I intend European Union may conclude a bilat- time. to address this topic of the moral case eral deal with China later this month. But despite this huge increase in our for free trade many times this year. It But some tough issues still remain be- collective wealth, the world’s trade may be one of the most important tween those two giants. So it is not ministers in Seattle could not reach things we do this year in the Senate. clear when these bilateral talks will agreement over how to keep this great Mr. President, I notice there are no end. economic engine going and create even other Members who have come to If China finishes its negotiations more prosperity that will naturally re- speak, so I ask unanimous consent to with the European Union, China still sult not just to the United States but continue on my time in morning busi- has to conclude negotiations with 10 to everybody in the world through ness to address another issue. I ask other trading partners, as well as the freer trade. It does not take a rocket unanimous consent for 15 minutes at Association of Southeast Asian Na- scientist to understand how much the most. tions. greater our national wealth is because The PRESIDING OFFICER. Without Second, we have to complete work on of freer trade. Common sense dictates objection, it is so ordered. the protocols that provide the that we should continue down this f underpinnings for the United States- path. China agreement that was signed last The mandated negotiations on agri- THE ADMINISTRATION’S FARM November and which is the basis for culture and services, the so-called ASSISTANCE PROPOSAL permanent normal trading relations building agenda, are now underway in Mr. GRASSLEY. Mr. President, I between the United States and China. Geneva. We may even have a special come to the floor this afternoon to dis- Several challenging protocol issues re- agricultural negotiation process to cuss the recent farmer assistance pack- main to be resolved. continue the agricultural portions of age outlined in the President’s budget In my view, we can only have the the talks. But I do not think we will proposal. It is often the case that these permanent normal trading relations see any quick agreement on the items proposals are complicated and difficult

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S347 to explain. But this proposal can actu- points. Democratic Senators, speaking ment of approximately $19,800 this ally be explained with one word. That on the floor of this body last week, year. But if the market crashed and he word is ‘‘awful.’’ The administration’s condemned this same proposal. I say qualified for the maximum amount of proposal is simply an awful idea. this so people won’t consider this a assistance under the administration’s I am not one to usually criticize any- partisan shot. I associate myself with proposal, he would only receive an ad- body who brings ideas to the table that the remarks of some of those Senators ditional $10,200. Regardless of how in any way will assist American farm- who considered this to be a paltry and much money a farmer has lost, the ers, but in this instance I believe I complicated approach to helping farm- most he could hope to receive is $10,200. must call it what it really is—an awful ers and the Congress keep its promise In comparison, the same farmer proposal. In fact, I am embarrassed by to the American farmers made under would have received $19,000 in economic the administration’s proposals. I can the 1996 bill, that we would maintain a assistance last year due to the Market think of all the Democratic Senators safety net for our farmers. Loss Assistance payment Congress who have been on this floor over the On the administration’s approach, voted late last year. The administra- last year—the last 12 months—who first, it attempts to establish a coun- tion’s approach is $9,600 less for that have chastised Republicans for not tercyclical program. The proposal farmer than he could have received doing enough to help farmers, and seemingly is based on a system that under Congress’ approach last year. If doing it in the right way, being embar- pays out when the per acre national we were to revisit historic lows this rassed by the paltry sum of money the gross revenue for a crop falls below a summer, which could trigger the SIAP- President has included and, more im- set percentage of the 5-year average of type payment that the President is portantly, the complicated formula by the crop’s per acre national gross rev- proposing, the small- and medium-sized which they arrive at this assistance. enue. The significant shortcoming of producers could not receive more than Just recently, we had the Vice Presi- the administration proposal is that a that $30,000 cap. Due to this cap, the dent in Iowa stumping for political program based on national revenue will administration’s approach ultimately support in the famous Iowa caucuses. not capture all regional disasters. limits potential assistance to small- He told my fellow farmers he supports As an example from my own State of and medium-sized producers. a ‘‘sound, sensible farm policy.’’ Those Iowa, everybody remembers the 500- Some people might think I am com- are his words. If this is what the ad- year flood of 1993. It was a disastrous paring apples and oranges when I talk ministration means by ‘‘sensible,’’ they year for the vast majority of my State. about the two packages, but in the end, should have saved the effort put into Experts described this 500-year flood as the important factor is how much aid this meaningless gesture and left it to something that is never going to occur are we willing to provide to the farmer. individuals who actually know what is again. But production throughout the The administration has said that as- going on in rural Iowa and rural Amer- rest of the Nation during the time that sistance wouldn’t be paid to the largest ica. it was ruined in Iowa was strong producers. But at the end of the day, it While our Nation has enjoyed one of enough that, under the President’s pro- is not just the larger growers who will the longest periods of economic growth posal, no payment would have been be left out in the cold, it is going to be in our history, the agricultural indus- made to Iowans in need of assistance. pretty darn cold for everyone in the try has not fared as well in recent Iowans would have been left with abso- middle and chilly for the smaller pro- years. Just last year, prices of all kinds lutely no assistance in the midst of one ducers as well. of livestock and grain commodities of the worst natural disasters in dec- This proposal reminds me of what a were at their lowest levels since the ades. number of Iowa pork producers called 1970s, and the outlook for next year is I also draw awareness to the adminis- the ‘‘4–H’’ payments. Remember SHOP mixed at best. According to the Food tration’s belief that this grand plan as- 1 and SHOP 2 payments to the pork and Agricultural Policy Research Insti- sists small- and medium-sized pro- producers last year? Those payments tute located at Iowa State University, ducers. It does harm to these classes of didn’t amount to much either. The ad- prices for corn are expected to hover farmers who, particularly, the other ministration billed that as a signifi- around $2 a bushel this year and soy- side of the aisle thinks we ought to cant measure to help pork producers bean prices will average near $4.50 a have so much concern for—and we facing abysmal prices, a 60-year low in bushel. Prices have improved some- ought to have. The fact that their ad- hog prices last year. Yet today the what from last year but not signifi- ministration doesn’t give concern to number of pork producers has dropped cantly, and obviously it is still, at the small- or medium-sized farmer in by 3,000, since we experienced these his- these prices, a losing proposition; in their plan ought to be an embarrass- toric lows. other words, a nonprofitable situation ment to my Democrat colleagues. Ultimately, the largest producers for farmers. Well, if the payment was actually will still have $40,000 due to the AMTA Last year, we in the Congress pro- triggered and the farmer wasn’t draw- cap, and the smaller guys will have a vided $8.7 billion in economic relief and ing more than a $30,000 Agricultural $30,000 cap, a $10,000 bonus to the larger disaster payments, simply keeping our Market Transition payment, the indi- farmer the President says he does not promise we made to the farmers of vidual would be subject to the $30,000 want to help, compared to what the America under the 1996 farm program combined payment cap. This means small- and medium-sized farmer gets. of having an adequate safety net for that the sum of regular AMTA pay- Does it really matter what the assist- farmers. We were just keeping our ments plus the payments under the ance is called? Was that the adminis- promise with that $8.7 billion. That supplemental income assistance pro- tration’s goal, of hurting the smaller was divided into three or four different gram could not exceed $30,000. In my and medium-sized farmers? parts. The largest part was the Market opinion, this program actually hurts My final point is this: Who is the ad- Loss Assistance Program payments, the small farmer and mortally wounds ministration really then trying to and these alone were $5.5 billion. the medium-sized farmer. If we want to help? It is true that farmers with 450 The administration’s proposal is for guarantee the failure of the medium- acres or less in corn base could possibly $600 million compared to that $5.5 bil- sized farmer in the Nation, the farmer double their AMTA payment. That is lion. It obviously believes that pay- who is big enough that he doesn’t have the same approach Congress used last ments to farmers under the supple- time to have nonfarm income but not year under the administration’s pro- mental income assistance program will big enough to weather all the natural posal. In fact, this is probably a great satisfy rural America’s needs in this disasters that one can have or 3 years deal for all those producers with 100 year of continuing low prices. The pro- of low prices, the President’s program acres or less. But the fact is that a per- posal definitely shows me and should is the best way to accomplish the fail- son who is farming 450 acres or less is show every farmer that the administra- ure of the medium-sized farmer in our probably, to make ends meet, also en- tion does not really care what happens Nation. gaged in some occupation other than to the family farmer. I could speak for It is simple math that brings me to farming. hours about its shortcomings, but let this point. A farmer with a corn base of I am not saying that most farmers me try to boil it down to three major 600 acres would receive an AMTA pay- don’t have jobs off the farm. In today’s

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S348 CONGRESSIONAL RECORD — SENATE February 7, 2000 economy, more and more farmers are went to the service for officers Chest- times when people are more interested taking jobs off the farm just to help nut and Gibson. It was an unbelievably in creating the issue than they are in pay the bills. But as I see it, the me- horrible and painful time—first of all, resolving the issue. I think we will see dium-sized producer, the producers for their families. I do believe, at that a considerable amount of that, of with 500 to 1,000 acres, are almost en- time and since then, we made a com- course, going out towards the Presi- tirely dependent upon the profitability mitment for our police officers, and for dential election and trying to find the of their crops. If they don’t receive that matter for the public, that we issues the party will be for—which is much-needed assistance, they are prob- would do everything we possibly all part of the system. But I am hope- ably going to have a hard time staying could—albeit nothing is 100-percent ef- ful we can concentrate and focus on the on the farm, and the administration’s fective—to make sure such a tragedy issues that we think are most impor- proposal does almost nothing to help would never happen again. tant. these individuals. I have come to the floor several We have had some experience, unfor- Now, as I indicated earlier, this is by times to point out that at too many tunately in the last several weeks, and no means a complete list of all the posts, or at least at some times at certainly even last year, that quite problems with the administration’s ap- some of our posts, we only have one of- often the minority chose to bring up proach, but these are a few of the ficer. When you have lots of people issues they knew would not be resolved issues that I expect Congress will have coming in and you have one officer, if, but brought them up continuously to to consider. The fact is that if the ad- God forbid, you have somebody who is diffuse the issues on which we have ministration really wants to help farm- deranged, that officer is in real peril been working. In this body, that is ers, it will immediately announce it and so is the public. easy. One person very readily can hold will block any efforts to waive the I know we have made the commit- up things, unless we can get 60 votes to Clean Air Act’s oxygenated require- ment over and over again to have two do something different. ments by the Environmental Protec- officers at every post. I am not pre- In any event, I am hopeful that will tion Agency. If the President would do tending to be the expert as to all the not be the case. We are going to focus just this, ethanol can replace MTBE, budgets, where the money has been on some things that we have decided which is poisoning the ground water spent, but I know this: We can do bet- upon. This will be more refined as time now, and it would increase farm in- ter by the Capitol Hill police officers, goes on, but certainly education will be come by $1 billion per year—it would and we should. We can do better by the one. The issue of education, of course, do it from the marketplace, not from public. Whatever it takes, we need to is not whether we try to improve it, the Federal Treasury—and create 13,000 honor our commitment and we need to but how we fund those improvements. I new jobs in America in the process. make sure we have the necessary re- do not believe that we should have one- The Senate may not be able to uni- sources so we have two officers at these size-fits-all regulations that come from laterally agree upon exactly what posts. some bureaucracy in Washington. We should be done to assist family farmers There are many other issues. I am should distribute our education fund- this year, but I think we can probably not going to get involved in these other ing in a manner that allows the States agree that the administration’s pro- issues because I am not the expert. I and local school boards to make those posal is off base and, most frankly, out know what I have observed. I know the decisions. of touch with real America. It does not police officers with whom I have Certainly the needs in Pinedale, WY, accomplish the goals that they want to talked. I know the commitment we are going to be different than in Phila- accomplish of saving the small and me- made to these police officers. So I am delphia. That is as it should be. We dium-sized farmers and not helping the going to continue to speak about this a need to allow for this type of flexi- well-off farmer. couple of minutes every day. I am hop- bility. So I look forward to working with ing the appropriators and others will Another area that we will be focusing my constituents, various agricultural come through. on is health care. We did some work groups, commodity groups, and my col- I thank my colleague from Wyoming. last year on strengthening Medicare, leagues in Congress to give family I think all of us are in agreement on doing something particularly in rural farmers the economic security that this; I believe this is not a Democrat or areas so outpatient care can be better they deserve. Republican debate at all. financed. We intend to continue to do I yield the floor. So I thank my colleague from Wyo- that, at the same time doing whatever Mr. President, I suggest the absence ming and yield the floor. is necessary to ensure Medicare con- of a quorum. The PRESIDING OFFICER (Mr. tinues to provide the benefits it is de- The PRESIDING OFFICER. The KYL). The Senator from Wyoming. signed to provide. clerk will call the roll. Mr. THOMAS. Mr. President, I be- Certainly one of the issues that will The assistant legislative clerk pro- lieve this next hour is allocated to the be difficult and controversial, yet I ceeded to call the roll. majority party, is that correct? think most people want to do some- Mr. WELLSTONE. Mr. President, I The PRESIDING OFFICER. The Sen- thing about, is providing the oppor- ask unanimous consent that the order ator is correct. tunity for everyone to have pharma- for the quorum call be rescinded. Mr. THOMAS. Mr. President, we are ceuticals available if they cannot af- The PRESIDING OFFICER. Without pleased to have a little time to talk ford them; hopefully to protect the pro- objection, it is so ordered. about some of the issues that will come grams we have now, to encourage and Mr. WELLSTONE. Mr. President, I up, some of the issues that are on the in fact assist people who now get their thank my colleague from Wyoming for agenda and some that are not. I appre- own supplementals, but be able to help his graciousness. I will take 3 minutes ciate the comments of my friend from those people who are not able to do at the most. I appreciate him giving Minnesota. Certainly that is an issue that. me some Republican time for this. we are all interested in, and I appre- Social Security will continue to be The PRESIDING OFFICER. Without ciate the effort he is making on that. an area of great concern. We have made objection, the Senator is recognized for Mr. WELLSTONE. I thank my col- some progress in not spending Social 3 minutes. league. Security money in the operational f f budget. However, that is not all that is necessary. If the young people who will THE CAPITOL HILL POLICE THIS YEAR’S AGENDA start making Social Security payments Mr. WELLSTONE. Mr. President, I Mr. THOMAS. Mr. President, in this at their first job can expect some bene- have made a commitment that I would coming session—which is going to be fits 30, 40, 50 years from now, then come to the floor every day to speak relatively short, as it always is on elec- things will have to be done differently. about the Capitol Hill police but also tion years, but particularly this year— Obviously, we have alternatives. We about the public. Again, I want to re- we have to focus if we intend to accom- can increase taxes—but not many peo- peat what I have said the last couple of plish things. I hope we do. As is often ple are for that. Social Security pay- days. As did many of my colleagues, I the case in election years, there are ments are one of the highest taxes

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S349 many people pay in the United States. laws—everything from threatening gun have continued to support law enforce- We could reduce benefits—again, there manufacturers with Federal lawsuits ment efforts. is not much support for that. Or we to mandatory licensing of new handgun Project Exile, for example, which has could, indeed, increase the return on purchases. Currently, there are 26 mu- been put into place around the coun- the money that is in a trust. We think nicipalities that have filed lawsuits try, has dropped the murder rate in that is an excellent idea, to provide in- against the gun industry, and they are Richmond, Virginia by 30 percent each dividual accounts so at least a portion shown on this chart. These lawsuits year that it has been in place. of the money that is in the fund would seek to make gun manufacturers liable Unfortunately, President Clinton belong to you and belong to me. I sus- for the criminal misuse of firearms. In- cannot say the same for his gun con- pect people over 50 or so would not see terestingly enough, three cases have trol efforts. This is a graph of ATF gun any difference, but younger people been thrown out by judges in Cin- referrals, prosecutions, and convictions would have an account that would be cinnati, OH, Bridgeport, CT, and in 1992 and 1998. Between 1992 and 1998 theirs and, indeed, could be invested in Miami-Dade County, FL. ATF referrals for prosecution went equities for a much better return. These cases are interesting. For in- down by 5,500 or 44 percent; prosecu- So, along with reducing the debt, stance these judges noted: tions have dropped 40 percent; and, fi- those are some of the things, with . . . the City’s complaint is an improper nally, convictions have dropped 31 per- which we will be involved. attempt to have this Court substitute its cent. judgment for that of the legislature[.] Only f This graph shows just how tough the the legislature has the power to engage in administration has been since 1992 re- GUN CONTROL the type of regulation.... garding the enforcement of existing Mr. THOMAS. Mr. President, unfor- The city of Cincinnati. federal gun laws. tunately, one of the issues that con- The plaintiffs have no statutory of com- Last year, I asked the General Ac- tinues to show up and seems to have mon law basis to recoup their expendi- counting Office (GAO) to conduct an tures.... nine lives—or more than nine, is the audit of the National Instant Check matter of gun control. We have seen it The city of Bridgeport. System (NICS). The system was put in every session a number of times. I am . . . the Plaintiffs have not directed this place in November 1998 as phase 2 of sure we will see it again. I think it is Court to any statute or case that would the Brady Act. I asked the GAO for an something about which we ought to allow a city or county to proceed against a group of manufacturers.... audit to see if, indeed, it is operating talk. I believe most people have come as Congress intended it to. I am con- Miami-Dade County, FL. to the conclusion that the passage of fident when the report is released—and The courts have pointed out munic- additional laws is not going to make a it has not yet been released but will be ipal lawsuits are not the answer. Inter- great deal of difference in the behavior very soon—we will have results that estingly enough, the President has an- of criminals. Sadly, law abiding citi- show the NICS has not been as effec- nounced the Justice Department will zens who are exercising their constitu- tive as we hoped it would be. pursue a similar lawsuit against the tional rights are the ones who will be Lastly, since last November, there gun manufacturers on behalf of HUD. impacted by additional gun control have been numerous news articles from Basically, the Federal Government is laws. But it would not affect those who around the country that highlight the trying to pressure gun manufacturers do not intend to abide by the law. publics disfavor with attempts by the into settling their current cases. Therefore, the idea of additional laws President to add more gun control certainly is questionable. Once again, the action highlights the President’s failure to pass gun control laws. I want to take a minute to high- In my mind, it is not the direction we light a couple of these. One is titled, it ought to take. Fortunately, I think the legislation. Instead of bringing forth legislation, he is seeking to go through is the ‘‘Wrong Approach,’’ by the Chey- majority of people in this country also enne Tribune Eagle, which suggests: believed the passage of new laws is not the judiciary to do what he has been unable to accomplish in Congress. Since the President has been unable to ban the solution. We need to enforce the individuals from owning guns, Mr. Clinton numerous gun laws that are on the This next graph shows the results of a poll taken recently by CNN and USA has decided to do an end run around the Con- books. stitution. Thankfully for our country, the Today. It was conducted between De- cember 9 and 12 of last year. Let me That is the point of view of that par- President has not been able to carry ticular paper. out his continuing agenda of wanting read it: As you may know, the U.S. Justice Depart- Another is titled, ‘‘Gun Deaths, Inju- more and more gun laws. But, regret- ries on Decline.’’ This article speaks tably, he has not been able to make en- ment is considering filing a lawsuit against the gun manufacture industry seeking to re- about a government study which shows forcement more effective. More laws cover the costs associated with gun-related that gun deaths have declined since the are not going to keep those who are crimes. The companies that manufacture late 1960’s. willing to break the law from doing guns in the U.S. have stated the charges Mr. President, I ask unanimous con- things illegally. Stronger enforcement have no merit. Which side do you agree with sent to print these articles in the more in this dispute: the Justice Department of existing laws is the answer. The ad- RECORD. (or) the gun manufacturers? ministration, however, has not pre- There being no objection, the mate- sented such a program. Certainly, we The result was, those who agreed rial was ordered to be printed in the with the lawsuit by Justice were 28 need to move in that direction. RECORD, as follows: When tragedies occur, as they did in percent, and those who agreed the law- [From the Cheyenne Tribune Eagle, Dec. 16, Colorado and a number of other places, suit had little merit were 67 percent. I 1999] of course all of us wonder what we can really believe this poll reflects how WRONG APPROACH—FEDERAL LAWSUIT do to ensure that these tragedies do American’s feel about a government IGNORES RIGHTS OF GUN MAKERS not happen again. The first impulse in lawsuit against the gun industry. In the President’s State of the Union Once again, President Bill Clinton, our na- a legislative body is to pass more laws. tional embarrassment, is showing utter con- Unfortunately, that is often the most address he spoke about the idea of hav- tempt for our Constitution as well as for the political thing to do. But the fact of ing individual states regulate the sale basic rights of the individual and the concept the matter is, in almost every instance of handguns by requiring a photo ID of freedom. numerous gun laws were broken when and documentation of the successful Since he has been unable to ban individ- these terrible acts were committed. completion of a safety course—just to uals from owning guns, Mr. Clinton has de- One might say, what advantage is purchase a handgun. This is clearly an- cided to do an end-run around the Constitu- there in passing more? Indeed, what we other attempt by the President to tion by threatening to sue gun manufactur- tighten gun laws on law-abiding citi- ers. Mr. Clinton is exactly the type of des- ought to be doing is talking about en- potic leader the Framers had in mind when forcement. zens. Of course, criminals do not reg- they wrote the Second Amendment. As many of you know, the adminis- ister their guns. Enforcement, how- As Thomas Jefferson said, ‘‘The strongest tration has been busy developing new ever, is how we get guns out of the reason for the people to retain the right to gun control initiatives and additional hands of the criminals. Republicans keep and bear arms is, as a last resort, to

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S350 CONGRESSIONAL RECORD — SENATE February 7, 2000 protect themselves against tyranny in gov- of public health officials, legislators and law against using RICO in favor of offering ernment.’’ enforcement should continue.’’ ‘‘legal advice’’ to public housing authorities But Mr. Clinton and his elk, meaning the The drop was not unexpected: Homicide organized under the Department of Housing liberals in Congress and all who would idly rates in the 1990s have fallen to levels not and Urban Development, who are suing the sit back and allow government to infringe seen since the 1960s, and about two-thirds of gun makers on behalf of their three million upon a right our framers declared ‘‘shall not all homicides are committed with guns. But tenants. The basis of this case is strict liabil- be infringed,’’ are guilty of abridging our the latest figures also include suicides and ity and negligence. The gun makers alleg- freedoms, endangering our lives and threat- accidental deaths. edly sold defective products, or products ening the future of the very government Moreover, nonfatal shootings fell from they knew or should have known would harm they were elected to preserve. 104,390 to 64,207 in the same period, or from people. Mr. Clinton has failed to get Congress to 40.5 per 100,000 to 24.0. Both of these legal grounds—the mobster- completely ignore the Constitution and ban Jim Manown, a spokesman for the Na- like conspiracy of cigarette manufacturers guns so now he has decided to turn to the tional Rifle Association, said the numbers to mislead the public, and the defective as- courts to get his way. prove that more gun laws are not needed, pects of guns or the negligence of their man- He said his administration would sue the only that the laws on the books need to be ufacturers—are stretches, to say the least. If gun manufacturers, much in the same fash- enforced. any agreement to mislead any segment of ion as the administration sued the tobacco ‘‘It is a fact that this substantial drop in the public is a ‘‘conspiracy’’ under RICO, industry, in order to force the private com- gun violence directly correlated to a big in- then America’s entire advertising industry is panies to bend to Mr. Clinton’s will and his crease in gun enforcement by police,’’ said in deep trouble, not to mention health-main- socialistic and erroneous world view. Lawrence W. Sherman, a University of Penn- tenance organizations, the legal profession, The president’s dubious claim is that the sylvania professor who has studied gun pol- automobile dealers and the Pentagon. And if industry’s marketing and manufacturing icy. ‘‘Police were not treating guns in a pre- every product that might result in death or methods are responsible for violent crime at ventive sense prior to 1993 and now they serious injury is ‘‘defective,’’ you might as the nation’s 3,000 public-housing authorities. are.’’ well say good-bye to liquor and beer, fatty What Clinton fails to comprehend is that Some experts also credit a strong economy foods and sharp cooking utensils. government is mostly responsible for the that has helped reduce overall crime rates These two novel legal theories give the ad- conditions that breed violent crime in public and suicide attempts. Margaret A. Zahn, a ministration extraordinary discretion to de- housing. North Carolina State University criminology cide who’s misleading the public and whose If Mr. Clinton wishes to end violence in professor, said prosperity has also allowed products are defective. You might approve public-housing complexes, he should end governments to spend more on services that the outcomes in these two cases, but they es- public housing. It is a drain on society and prevent gun violence, such as domestic vio- tablish precedents for other cases you might ultimately harms the individuals govern- lence shelters and youth recreation pro- find wildly unjust. ment purports to help. Besides, government grams. Worse, no judge will ever scrutinize these has no Constitutional authority to offer pub- The CDC also listed such possible factors theories. The administration has no inten- lic housing. as an aging population, increased gun safety tion of seeing these lawsuits through to final Another government action that leads to measures and the waning of the crack trade. verdicts. The goal of both efforts is to unnecessary violence is its war on drugs. Gun control advocates said they are en- threaten the industries with such large pen- Prohibiting individuals the freedom to pur- couraged, but pointed out that even so, an alties that they’ll agree to a deal—for the sue drug use is also not authorized by the average of 265 people a day were shot in 1997. cigarette makers, to pay a large amount of Constitution. The decriminalization of drugs ‘‘People shouldn’t be satisfied,’’ said Nancy money to the Federal Government, coupled would have the end result of lessening the Hwa, spokeswoman for Handgun Control and perhaps with a steep increase in the price of burden on our prison system and dramati- the Center to Prevent Handgun Violence. a pack of cigarettes: and for the gun makers, cally reducing violence, much like the repeal ‘‘Everybody is still at risk, and the presence to limit bulk purchases and put more safety of the prohibition against alcohol. of guns should still be a major concern.’’ devices on guns. In announcing the lawsuit Ultimately, however, the criminal is the against the gun makers HUD Secretary An- one to blame for his actions. Just because a [From the Wall Street Journal, Jan. 12, 2000] drew Cuomo assured the press that the whole person uses a gun while committing a crime DON’T DEMOCRATS BELIEVE IN DEMOCRACY? effort was just a bargaining ploy: ‘‘If all par- ties act in good faith we’ll stay at the nego- is no reason to blame gun manufacturers. (By Robert B. Reich) That is tantamount to blaming automakers tiating table.’’ If I had my way there would be laws re- for every car accident or burger joints for But the biggest problem is that these law- stricting cigarettes and handguns. But Con- every heart attack. suits are end runs around the democratic gress won’t even pass halfway measures. Cig- Mr. Clinton knows he can cripple the gun process. We used to be a nation of laws, but arette companies have admitted they makers by suing them. Just the cost of de- this new strategy presents novel means of produce death sticks, yet Congress won’t lift fending against a government lawsuit can be legislating—within settlement negotiations a finger to stub them out. Teenage boys con- cost prohibitive. In effect, it is government of large civil lawsuits initiated by the execu- tinue to shoot up high schools, yet Congress banning guns by economically destroying tive branch. This is faux legislation, which won’t pass stricter gun controls. The politi- the makers in what can only be termed thug- sacrifices democracy to the discretion of ad- cally potent cigarette and gun industries gery. Already 24 cities, including Cincinnati ministration officials operating in secrecy. have got what they wanted: no action. Al- and Cleveland, and two states have filed law- It’s one thing for cities and states to go to most makes you lose faith in democracy, suits against gun makers. court (big tobacco has already agreed to pay doesn’t it? Hearings are expected to begin in January. the states $246 billion to settle state Med- Apparently that’s exactly what’s happened We will be watching this one closely. icaid suits, and 28 cities along with New to the Clinton administration. Fed up with York state and Connecticut are now suing trying to move legislation, the White House [From the Washington Post, Nov. 19, 1999] the gun manufacturers); it’s quite another is launching lawsuits to succeed where legis- for the feds to bring to bear the entire GUN DEATHS, INJURIES ON DECLINE—1997 FA- lation failed. The strategy may work, but at weight of the nation. New York state isn’t TALITIES WERE LOWEST SINCE ’60S; MANY the cost of making our frail democracy even exactly a pushover, but its attorney general, REASONS CITED weaker. Eliot Spitzer, says the federal lawsuit will fi- ATLANTA, Nov. 18.—Gun deaths in the The Justice Department is going after the nally pressure gun makers to settle. New United States dropped 21 percent between tobacco companies with a law designed to York’s lawsuit is a small dagger, he says. 1993 and 1997 to the lowest level in more than fight mobsters—the 1970 Racketeer Influ- ‘‘the feds’ is a meat ax.’’ 30 years, and firearm-related injuries fell 41 enced and Corrupt Organizations chapter of The feds’ meat ax may be a good way to percent, the government reported yesterday. the Organized Crime Control Act. Justice al- get an industry to shape up, but it’s a bad Experts cited such reasons as tougher gun leges that the tobacco companies violated way to get democracy to shape up. Yes, control laws, a booming economy, better po- RICO by conspiring to create an illegal en- American politics is rotting. Special-interest lice work and gun safety courses. terprise. They did this by agreeing to a ‘‘con- money is oozing over Capitol Hill. The mak- The study by the Centers for Disease Con- certed public-relations campaign’’ to deny ers of cigarettes and guns have enormous trol and Prevention looked at all gunshot any link between smoking and disease, sup- clout in Washington, and they are bribing wounds reported at emergency rooms, press internal research and engage in 116 our elected representatives to turn their whether they were intentional, accidental or ‘‘racketeering acts’’ of mail and wire fraud, backs on these problems. self-inflicted. which included advertisements and press re- But the way to fix everything isn’t to turn The number of fatalities dropped from leases the companies knew to be false. our backs on the democratic process and pur- 39,595—15.4 gun deaths per 100,000 people—in A few weeks ago, the administration an- sue litigation; as the administration is 1993, to 32,436—12.1 per 100,000—in 1997. nounced another large lawsuit, this one doing. It’s to campaign for people who prom- The rate ‘‘is the lowest it’s been since the against America’s gun manufacturers, Jus- ise to take action against cigarettes and mid-’60s,’’ said J. Lee Annest, a CDC statisti- tice couldn’t argue that the gun makers had guns, and against the re-election of House cian. ‘‘This progress is really encouraging conspired to mislead the public about the and Senate members who won’t. And to fight and really says that joint prevention efforts danger of their products, so it decided like hell for campaign finance reform. In

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S351 short, the answer is to make democracy times armed.’’ These cross-Atlantic discus- [From the Washington Post, Aug. 29, 1999] work better, not to give up on it. sions are important, since the Framers were ATF FIREARMS PROSECUTION REFERRALS distinguishing the right of Americans to DROP—STUDY SAYS CRIMINAL CASES HAVE [From the Wall Street Journal, Nov. 22, 1999] bear arms from English law’s treatment of FALLEN SINCE 1992, BUT PICKED UP LAST LIBERALS HAVE SECOND THOUGHTS ON THE the question. Joyce Lee Malcolm, a professor YEAR SECOND AMENDMENT at Bentley College, has examined the Second (By Edward Walsh) (By Collin Levey) Amendment in light of English law. She con- cludes that the Colonists had intended to There has been a steady decline during the It’s the year of Littleton, ‘‘smart guns’’ adopt basic ideas of English governance but Clinton administration in the number of and city lawsuits against gun makers. So to strengthen the people’s rights. A right to weapons-related criminal cases that the Bu- where are the law professors speaking up for ‘‘keep and bear’’ was seen as a bulwark reau of Alcohol, Tobacco and Firearms gun control? In the past few years, many of against oppressive government. (ATF) has turned over to federal prosecutors the premier constitutional experts of the left for legal action according to a new study have come to a shocking conclusion: The Other scholars have found supporting evi- made public yesterday. Second Amendment must be taken seriously. dence in the 14th Amendment, which bars The study by the Transactional Records Back in 1989, the University of Tennessee’s states, in addition to the federal govern- Access Clearinghouse (TRAC) at Syracuse Sanford Levinson became something of a ment, from restricting certain rights of citi- University, which analyzes law enforcement maverick by writing an article in the Yale zens. According to Robert Cottrell of George data, said the number of ATF referrals to Law Journal called ‘‘The Embarrassing Sec- Washington University, in the aftermath of federal prosecutors has dropped by 44 percent ond Amendment,’’ in which he maintained slavery, with no real police presence, this since 1992, when there were 9,885 referrals. that the amendment guaranteed an indi- protection was critical to preventing the mo- Last year, the agency charged with enforcing vidual right to own guns. Mr. Levinson’s ar- nopoly of guns from resting in the hands of federal firearms laws referred 5,510 cases to gument flew in the face of the interpretation white officials, many of whom moonlighted federal prosecutors, according to TRAC. that had prevailed since a 1939 Supreme in white hoods. The 14th Amendment has Most ATF referrals to federal prosecutors in- Court ruling, which held that the amend- been a powerful force in constitutional law, volve alleged weapons offenses. ment’s reference to a ‘‘well-regulated mili- playing a key role in the development of It also said that until last year there has tia’’ meant it only guaranteed a ‘‘collective’’ free-speech jurisprudence. been a matching decline in the number of right to bear arms. ‘‘The emaciated condition of the Second federal prosecutions of ATF weapons cases, Until recently, few legal scholars had done Amendment now is very similar to the condi- which fell from 4,108 in 1992 to 2,165 in 1997. much research on the Second Amendment. tion of the First Amendment in 1908,’’ says But in 1998, that trend was reversed with the ‘‘One came up knowing it was a collective Duke University Law professor William Van prosecution of 2,710 ATF weapons cases, a 25 right—not because we learned about it in law Alstyne. In the aftermath of World War I, percent increase over the previous year, the school, but because we read the occasional Supreme Court Justices Oliver Wendell report said. op-ed,’’ says Dan Polsby of Virginia’s George Holmes and Louis Brandeis began writing The TRAC researchers, who analyzed data Mason Law School. ‘‘Sandy Levinson made it dissents in favor of a broader reading of the from the Justice Department, the Office of respectable to think that heterodoxy might First Amendment. But not until the 1930s did Personnel Management and ATF, said one be possible.’’ courts begin adopting their arguments. reason there may be fewer criminal referrals The most prominent of the converts is Har- is that ATF’s work force is smaller now than The new reading of the Second Amendment vard’s Laurence Tribe, once touted as a po- it was earlier in the decade. The agency’s may get a hearing if a gun control case, tential Supreme Court appointee in a Demo- total force has declined by 8 percent since Emerson v. Texas, makes it to the Supreme cratic administration. Mr. Tribe surprised 1992 and there has been an even sharper drop Court. In a divorce proceeding, Timothy Joe many of his fellow liberals when the latest of 14 percent in the number of its criminal Emerson was issued what’s been called a edition of his widely used textbook, ‘‘Amer- investigators. ATF had 2,072 criminal inves- ‘‘y’all be civil’’ restraining order—routine in ican Constitutional Law,’’ appeared this tigators in 1992 and 1,779 last year, according Texas divorce cases. Unknown to him, one year. Previous versions had virtually ignored to the report. provision barred him from possessing a gun. the Second Amendment. The new one gives The findings are likely to fuel the gun con- When he took his 9mm Beretta out of a desk it a full work-up—and comes down on the trol debate in Congress, where opponents, drawer during an argument with his wife, he side of Mr. Levinson. such as the National Rifle Association, argue was charged with violation of a federal gun Mr. Tribe believes the right to bear arms is that there is no need for new gun control control law. limited, subject to ‘‘reasonable regulation in laws and that the administration should con- the interest of public safety,’’ as he and Yale U.S. District Judge Sam Cummings ruled centrate on enforcing existing laws. Law Professor Akhil Reed Amar wrote in the that the order violated Mr. Emerson’s Sec- Administration officials did not dispute New York Times last month. But Mr. Tribe ond Amendment rights. As Mr. Polsby puts the trend toward fewer federal prosecutions, has written that people on both sides of the it, ‘‘If you’re simply attaching a firearms but said part of this was due to a decision by policy divide face an ‘‘inescapable tension forfeiture to a person who has no such des- ATF to concentrate more of its resources on . . . between the reading of the Second ignation as a dangerous person, that’s not complex investigations of major gun traf- Amendment that would advance the policies acceptable if the Second Amendment means fickers and less on individual firearms law they favor and the reading of the Second anything.’’ violations. Amendment to which intellectual honesty, The state of Texas has appealed to the A Justice Department spokeswoman, who and their own theories of Constitutional in- Fifth U.S. Circuit Court of Appeals. If that declined to be identified, also disputed the terpretation, would drive them.’’ court’s ruling makes it to the Supreme accuracy of some of the numbers in the Journalist Daniel Lazare, a liberal gun- Court, it would be the first gun-control case TRAC report. The report said that in 1998 control advocate, acknowledges the tension, heard by the justices since 1939’s U.S. v. Mil- there were 2,528 federal prosecutions under writing in Harper’s: ‘‘The truth about the ler, which set the precedent for the collec- two frequently used federal firearms laws, Second Amendment is something that lib- tive-right interpretation. In that case, the but Justice Department records show that erals cannot bear to admit: The right wing is Supreme Court held that a bootlegger was 5,876 defendants were prosecuted under those right.’’ Mr. Lazare argues for amending the rightly convicted of transporting a sawed-off laws that year, she said. Constitution to repeal the Second Amend- shotgun across state lines, on the grounds She said the number of federal firearms ment. that the weapon had no legitimate use in a violators who have received sentences of What accounts for the change in Second militia. more than five years in prison has increased Amendment interpretation? One of the cata- by more than 25 percent since 1992, reflecting lysts has been a recently unearthed series of Today, two Supreme Court justices have ATF’s decision to focus more on gun traf- clues to the Framers’ intentions. These in- suggested interest in a reading of the Second fickers. clude early drafts of the amendment penned Amendment as guaranteeing an individual ‘‘There is a decline in those [firearms] by James Madison in 1789. In his original right. Clarence Thomas has noted the law-re- charges, but it is not as dramatic as por- version he made ‘‘The right of the people’’ view articles piling up on the side of an ex- trayed here, the spokeswoman said. the first clause, indicating his belief that it panded interpretation, suggesting it may be ‘‘The number of low-end federal offenders is the right of the people to keep and bear time to reconsider Miller. And Antonin is down because the ATF is strapped for re- arms that makes a well-regulated militia Scalia, in a decision on an unrelated matter, sources and made a conscious decision to possible. State constitutions of the era con- referred to ‘‘ ‘the people’ protected by the focus on traffickers and because the states firm this interpretation: Pennsylvania ac- Fourth Amendment, and by the First and are doing a better job so we don’t have to do corded its citizens the ‘‘right to bear arms Second Amendments.’’ those cases.’’ for the defense of themselves and the state.’’ ‘‘As a liberal and a humanist,’’ Prof. Tribe An ATF spokeswoman, who also did not In a letter to English Whig John Cart- says today, ‘‘people thought I was betraying want her name used, said the agency experi- wright, Thomas Jefferson wrote that ‘‘the them by saying that the Second Amendment enced a 20 percent reduction in field agents constitutions of most of our states assert, is part of the Constitution.’’ But, he adds, between 1993 and 1997, losing some of its that all power is inherent in the people; . . . ‘‘what is being knocked away now is a phony most experienced agents to retirement. ATF that it is their right and duty to be at all pillar and a mirage.’’ is now aggressively hiring agents, she said,

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S352 CONGRESSIONAL RECORD — SENATE February 7, 2000 but it will take time to train them and get Last week, I took issue with the criminals and cut the murder rate by them in the field. President’s State of the Union Address 30 percent every year since it was en- The ATF spokeswoman also said that sta- in a broad sense as it related to the acted in 1997. That is in Richmond, VA. tistics on prosecutions do not reflect all of the agency’s activities, which in the 1990s budget and some of the initiatives he In fact, it is said in Richmond that a have included major investigations of the propounded within the State of the man walked into a 7–Eleven with a bombings of the World Trade Center in New Union. Today, I will focus, as my col- baseball bat to rob it. They caught York and the federal building in Oklahoma league from Wyoming has focused, on him. They said: Why didn’t you use a City. the element in the President’s speech gun? He said: You get locked up if you Mr. THOMAS. Mr. President, I be- dealing with guns and gun violence. use a gun. lieve all of us want to find a better so- Last November, the Centers for Dis- Isn’t it amazing that the criminal lution to illegal gun use. We intend to ease Control reported 34,000 Americans element of our society will read and re- do that. People in my State believe die every year from firearm injuries. If spond to the effective and targeted en- more laws are not the answer, that, in- there is good news to be found in that forcement of a law? As a result of that, deed, the enforcement of gun laws is terrible statistic, it is that the number in a city that was plagued by what any the answer. We are pleased to see that has declined every year for the last 4 person would judge as a high rate of the administration has finally added years. It is fewer than the 43,000 Ameri- crime and murder, it has dropped that increased funding for the enforcement cans who die every year from motor ve- precipitously, since the targeted direc- of existing gun laws—something we hicle accidents. And yet when we have tion of law enforcement not only to ar- have been talking about over the last 7 some of our colleagues on the floor rest but to prosecute and lock up those years. The dollars alone, however, will pounding their podiums and saying who misuse their gun rights. not do it. There has to be some over- how terrible it is—and it is terrible— How does the administration address sight. We have to make sure there is an they forget to put it in relation to the duty to the American people? Over effective use of law enforcement. other kinds of accidents and/or inten- the past 7 years, the Clinton-Gore ad- Mr. President, I yield time to my tional acts that produce deaths among ministration has cut the ATF’s pursuit friend from Idaho. the American citizenry. of criminals who use guns by nearly Mr. GREGG. Will the Senator from That figure of 34,000 is far less than half. The number of prosecutions fell Wyoming yield? the 44,000 to 98,000 patients who die by nearly as much, and the number of Mr. THOMAS. Absolutely. every year by medical error. That is gun-toting criminals convicted fell by Mr. GREGG. I understand the Sen- right. I am talking about errors made one-third. This isn’t an NRA statistic; ator from Wyoming controls the time. in the delivery of medicine. It is esti- this is an independent Syracuse Uni- I wonder if, after the Senator from mated that 44,000 to 98,000 patients die versity statistic. It is objective by Idaho speaks for 5 or 10 minutes, the every year by medical error—that is a every politician’s measurement. Senator will be willing to give me 5 or statistic which comes from the Insti- This is how it profiles on a chart. 10 minutes on a separate subject. tute of Medicine—and yet somehow Last year, in this Chamber, Vice Presi- Mr. THOMAS. Will it be possible to when such a tragedy happens, it does dent AL GORE cast the tiebreaking vote let Senator SMITH speak for a couple of not make the headline in the paper; it in favor of interfering with peaceful, minutes and then Senator GREGG can simply makes the obituary page. law-abiding, responsible gun owner- wind up our hour? Mr. President, will When we consider there are over 200 ship—not criminals, but responsible that be all right? million privately owned guns in the citizens exercising their right to go out Mr. GREGG. That will be fine. United States, we cannot escape the and buy a firearm for their personal Mr. THOMAS. That way, we will hear conclusion that the overwhelming ma- ownership and possibly for their per- from the Senator from Idaho, the Sen- jority of America’s 80 million gun own- sonal protection. ator from New Hampshire, Mr. SMITH, ers are peaceful and extremely respon- It was quite a moment for the Vice and the Senator from New Hampshire, sible and using their constitutional President. There he sat in that chair, Mr. GREGG. rights in a responsible-citizen way. the image of leadership. He was able to The PRESIDING OFFICER. Before There are 80 million gun owners and 200 tell Americans how concerned he was the Senator from Idaho begins, has the million privately owned guns in Amer- about gun violence because he had cast Senator from Wyoming propounded a ica. the tiebreaking vote to impose greater unanimous consent request? We in the Government are charged restrictions on law-abiding Americans. Mr. THOMAS. I ask unanimous con- with the responsibility of seeing that But I wonder, when this administra- sent that the Senator from Idaho be al- guns are used appropriately within the tion was gutting the enforcement of lowed to speak and then the Senator Constitution. That is, in part, our job. laws against gun violence, was the Vice from New Hampshire, Mr. SMITH, and It is an American right and responsi- President casting his vote then? No. then the Senator from New Hampshire, bility of all Americans, should they Here is the Vice President’s record, Mr. GREGG, in that order. wish to exercise it. We are here to deal right here on this chart. This is where The PRESIDING OFFICER. Senator with those who use guns to intimidate, he and the President took over the law GREGG from New Hampshire being the to steal, to rape, to murder. That is enforcement responsibilities of the third speaker. what the Government is for. That is Justice Department of this country. Mr. GREGG. Reserving the right to our job, not to restrict or control the Look what happened during the object, I simply ask the Senator from right of the free citizen in the exercise Reagan and the Bush years—aggressive Wyoming if I may be reserved 10 min- of his or her constitutional right, but efforts to go at the criminals; arrests utes within that timeframe. to go at those who do the opposite, who went up; crime began to go down. Mr. THOMAS. Absolutely. use the right in the wrong way—to Here the Clinton-Gore administra- The PRESIDING OFFICER. Without steal, to rape, or to murder. This duty tion backed off. They cut budgets. You objection, it is so ordered. comes before any other matter that we know the rest of the story. When this The Senator from Idaho is recog- would want or should want to consider administration was letting violent nized. on the issue of guns. criminals off, I have a simple question Mr. CRAIG. Mr. President, I thank We know when the Government takes to ask: Where was AL? the Senator from Wyoming, Mr. CRAIG this responsibility seriously, we save How many gun-toting criminals THOMAS, for coming to the floor today lives. You can come to the floor and would be locked up today if the Clin- once again to shape and clarify some of pass all of the politically driven bills ton-Gore administration had merely these issues that are going to be front that you want to, but if they are not kept pace with the Reagan-Bush ad- and center before this Congress and enforced or not enforceable, then it is a ministration’s record portrayed on this this Senate over the coming months as political statement, not a responsible chart? I would like to hear the Vice we deal with Presidential initiatives, act of our Government. President answer this question to Presidential budgets, and some of the In Richmond, VA, a Republican ini- American mothers. It is the right ques- issues that are going to be, by fall and tiative called Project Exile has stepped tion to ask. It is a response that all de- November, election-time issues. up and prosecuted the gun-toting serve.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S353 But there is more disturbing evidence to 12 terrorists convicted of 36 counts statement of violation of the second that this administration does not take of violating Federal firearms laws. I amendment of our Constitution. seriously its duty in law enforcement. am amazed at you, Bill Clinton, that I can understand why Americans are The national instant check system is you can stand on the floor of the U.S. frustrated, but I doubt the President designed to immediately notify the House of Representatives and, with a has had a driver’s license, maybe a FBI if a criminal is trying to purchase straight face, talk about firearms con- valid one, in a long while. He has not a gun. I support that. Every Senator trol, when you turned loose convicted needed one. I doubt he has ever waited supports the ability of someone going felons, convicted of firearms viola- in line at the Department of Motor Ve- into a licensed firearm dealer to buy a tions. hicles to get a license or to take the firearm immediately being checked, As recently as last year, the Presi- test in a long while. So if the President just like swiping your credit card dent said he would spend not more wants to license handguns like cars, through a machine at any retail outlet than $5 million on the programs such then he is talking about issuing li- in America and instantly finding as Project Exile, the kind I just out- censes to take a firearm out in public whether you have credit on your card lined used in Richmond, VA. We asked because it would be against the Con- so you can make that purchase. for $50 million. The President largely stitution to require a license to buy We want the same kind of response got his way. The final figure was about one, so he must be talking about tak- when it comes to the purchase of a gun. $7 million. Sorry, Mr. President. Last ing a license out to take a gun out in We are nearly there. We have nudged, year at this time you didn’t deserve public. Well, we already do that. It is we have pushed, we have cajoled this credit for any of it. Now you have called concealed carry permits. Thirty administration and their Justice De- stepped up. Now you are saying you States already say you can get a li- partment until they have finally done want $280 million to hire new inves- cense to carry a gun in public, and it is it—although they dragged their feet tigators and prosecutors, both at the called a concealed carry. The State of progressively over the last 8 years. Federal and the State level. I ask you Vermont doesn’t require a license at According to a staff report of the why, Mr. President? I think I know the all. Senate Judiciary Committee, since No- answer. It is polling well. You went out I regret to inform you, President Bill vember of 1998, this Republican initia- and asked the question of the Amer- Clinton, that what you are talking tive, started here on this floor—the in- ican people about law enforcement, about is something I don’t think you stant check system background something every Senator knows about, understand. No State requires a person check—has stopped over 100,000 crimi- and it polled well. It got in the State of to have a driver’s license to purchase a nals from purchasing guns. That rep- the Union. car, nor should this Federal Govern- resents an enormous number of bad ac- It is far from clear that inadequate ment ever require a free citizen in our tors who need to be put back in jail. funding is the problem. The drop in country the need to have a license to How many have the administration put prosecutions we have seen under this purchase a gun. back in jail? To my knowledge, none. administration cannot be explained en- Mr. President, are you then talking You heard the President in the well tirely by staff levels. The ATF observ- about a national concealed carry law? of the House in the State of the Union ers at Syracuse University attest, That is probably a pretty good idea. Address talk about all of these crimi- ‘‘other unknown forces or policies For those who want to carry in public, nals detected and stopped from buying changes are apparently at work.’’ you could say you have to have a cer- a gun. If a criminal walks into a hard- Many observers believe the administra- tain safety record and safety standard ware store or a gun shop and attempts tion already has the resources it needs and experience and all of those kinds of to buy a gun over the counter from a to increase as dramatically as they things if you want—not to own, now, licensed firearm dealer, and his back- want the prosecutions necessary. but to carry openly in public. I think ground is checked, and he is a felon I ask unanimous consent to continue that is what the President is not talk- with a record, he has violated a law. He for 3 more minutes. ing about at all. is in violation of the law. Yet the ATF The PRESIDING OFFICER. Without My time is up and there are a good has referred only one-fifth of 1 percent objection, it is so ordered. many other facts to be dealt with. In of these criminals acting illegally to Mr. CRAIG. One other issue I think is States that have concealed carry, the Justice Department for prosecu- important: The President did some- crime drops; when the criminal ele- tion. thing the other night that is the most ment knows that the citizen out there Mr. President, I am sorry. You can radical expression on gun control by is armed for his or her self-protection, talk all you want about guns, but your any President in the history of this for the protection of their private prop- actions show you don’t care. You only country—I think that is worth repeat- erty and their personal rights and their want the politics of it. ing—the most radical proposal on gun person itself. Last year, this Congress said: No. We control by any President in the history Extensive study has also shown that do not want the politics of it. We will of this country. Here is what he said: when states begin issuing concealed not take that effort. We want sub- Every state in this country already re- carry permits, murders drop by about 8 stance. The administration claims it quires . . . automobile drivers to have a li- percent, rapes fall by 5 percent and ag- has increased the referral of firearms cense. I think they ought to do the same gravated assaults drop by 7 percent. cases back to the States for prosecu- thing for handgun purchases. Moreover, as economist John Lott tion. But that is the same as letting a Mr. President, it is obvious you don’t notes, states that began issuing nondis- criminal off the hook. understand. cretionary permits between 1977 and That is not an accusation of the What the President failed to grasp is 1992 ‘‘virtually eliminated mass public States. These are Federal firearms vio- that no State requires a license to pur- shootings after four or five years.’’ lations. They deserve Federal prosecu- chase a car. If you want to have it Why does crime fall when citizens’ tion. State prosecutors have fewer re- hauled home to your ranch out in Wyo- right to bear arms is protected? Be- sources than Federal prosecutors, and ming and you stay on your ranch and cause there is nothing a criminal fears State firearm convictions result in you never get off on the public road, more than a citizen who can defend shorter sentences. Moreover, with a you, Senator CRAIG THOMAS, do not himself. budget that grew 65 percent from 1992 need a license to own a car. You need The President’s comments were, of to 1998, I am sorry, Janet Reno, we a license to drive a car on a public course, a plug for the Vice President, gave you the money; you didn’t do the right of way, on a public road. States who has been talking for some time job. That growth in budget was the do not require a license to drive a car about regulating guns like cars. Justice Department. except on public roads. That is the I wonder if that’s really what either The Clinton-Gore administration whole point the President made. The of them wants. In the words of second even lets convicted felons off the hook. average American scratches his head amendment scholar David Kopel, ‘‘if Last September, we came to the floor and says, yes, license cars, license Gore follows through on his promise to to speak about it. This President, with guns. But the President said you had to treat guns like cars, he will oversee the his Executive power, granted clemency have a license to buy a gun, a direct most massive decontrol of firearms in

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S354 CONGRESSIONAL RECORD — SENATE February 7, 2000 America since 1868, when the 14th of the country, the overthrow of tyranny or manufacturers. Here is an article from Amendment abolished Southern states’ private self-defense. the Washington Post—it is interesting Black Codes, which prohibited freed- These are the founders. Patrick coming from the Washington Post—re- men from owning guns.’’ Henry: porting how two State courts dismissed Preserving and strengthening the Guard with jealous attention the public lawsuits against gun manufacturers. I second amendment would suit most liberty . . . The great object is that every ask unanimous consent that the article Americans just fine. I hope that’s real- man be armed. Everyone who is able may be printed in the RECORD. ly what the President and Vice Presi- have a gun. There being no objection, the mate- dent want. But I suspect it isn’t. And I Thomas Jefferson: rial was ordered to be printed in the worry that if word gets out, some poor The strongest reason for the people to re- RECORD, as follows: tain the right to keep and bear arms is, as a White House speechwriter is going to [From the Washington Post, December 1999] lose his job. last resort, to protect themselves against tyranny in government. FIREARMS MAKERS WIN DISMISSAL OF These are issues we will debate at LAWSUITS IN 2 STATES length on the floor of the Senate over This is important business we are talking about. This was a basic right. In back-to-back victories for the firearms the coming months. I thought it was industry, judges in two states have dismissed important to come to the floor to begin Noah Webster: lawsuits against gun manufacturers and to understand, to begin to explain so Before a standing army can rule, the peo- dealers. the American people can more clearly ple must be disarmed, as they are in almost A state judge in Florida tossed out a suit understand the kind of irrational ap- every kingdom of Europe. The Supreme by Miami-Dade County yesterday, three days proach this administration is currently power in America cannot enforce unjust by after a Connecticut state judge dismissed a the sword because the whole of the people similar lawsuit brought by the mayor and proposing and certainly the less than are armed, and constitute a force superior to legitimate record they have in the area city of Bridgeport. any band of regular troops. The two lawsuits mirror other suits filed of law enforcement when it comes to Richard Henry Lee: by municipalities that allege that guns have the use of a firearm. created a public nuisance, threatening resi- I thank my colleague from Wyoming To preserve liberty it is essential that the whole body of the people always possess dents’ health and safety, and that gun manu- for taking out this time. arms. facturers, like polluters, should have to pay The PRESIDING OFFICER. The Sen- With all due respect to my colleagues for the cleanup. ator from New Hampshire. But in their separate decisions, the judges Mr. SMITH of New Hampshire. Mr. who speak on this issue in opposition in Connecticut and Florida reached the same President, I thank my colleague from to the second amendment, I don’t conclusion: The governments lack legal Wyoming for yielding me the time, and think they are as eloquent or as knowl- standing to sue. I thank him for his leadership in de- edgeable, and I know they weren’t ‘‘The plaintiffs have no statutory or com- fense of the second amendment, as well there. These guys knew what they were mon-law basis to recoup their expenditures,’’ talking about because they wrote it. So ruled the judge in Bridgeport. ‘‘Public nui- as my colleague from the State of sance does not apply to the design, manufac- Idaho, who has been a long-time advo- let’s not talk about revisiting the Con- stitution and being politically correct ture, and distribution of a lawful product,’’ cate of the second amendment. said the Florida judge. I regret I have to stand up here again and changing things we can’t change. The mayors of Bridgeport and of Miami- with my colleagues and defend the sec- These are the giants in history, the Dade County sued the firearms industry, ond amendment because we should not people who were there on the scene. claiming negligence, product liability and have to do that. I am honored to do it, Yet, in the past year or so on this floor, public nuisance. Those mayors said that the but it is one of our amendments. It is I and many of my colleagues hear over industry was responsible for the illegal flow No. 2 in the Constitution. and over again: gun control, gun con- of handguns into their areas. The mayors want to recover gun violence I find myself wondering why so many trol, gun control. Some of it is enacted, which infringes on the second amend- costs for police, fire and emergency services. of our colleagues come here over and Bridgeport further sued to recover money over again to try to take second ment of millions of law-abiding Ameri- lost from depressed property values and busi- amendment rights away. The right to cans. You cannot trample on the Con- nesses that moved out of the city. keep and bear arms is one of the most stitution of the United States and Bridgeport and Miami-Dade are among 29 fundamental rights we possess. You stand up there and take that oath and cities and counties—including Chicago, San can’t pick and choose which amend- say you are going to defend it. It is Francisco and Los Angeles—suing more than ment you support in the Constitution, simply inconsistent. two dozen gun makers. In October, an Ohio Despite what history and the second judge threw out a similar lawsuit filed by nor should you pick and choose what the city of Cincinnati. paragraph you support in the Constitu- amendment tell us, some keep trying to come up with new and inventive In one setback for the firearms industry, a tion. If it is in the Constitution, we state court judge in Georgia earlier had ought to abide by it and honor it. ways to subvert that Constitution. I ruled that Atlanta could pursue its neg- The framers knew it, and that is why don’t hear any of these people coming ligence claims against gun makers. they placed the second amendment down and saying we are going to elimi- Last week, President Clinton said his ad- right up there at No. 2 in the Bill of nate the first amendment, but I do ministration is thinking about filing a fed- Rights. They did not want the Federal hear them saying we ought to elimi- eral lawsuit on behalf of the 3 million people Government to interfere with this nate the second amendment. living in public housing. Clinton’s move was The gun control provisions in the ju- an attempt to force the industry into nego- basic right. It was part of the Bill of tiations to settle the municipalities’ law- Rights for the people, and it was No. 2. venile justice bill that were spurred on by the tragedy at Columbine used that suits. I get a kick out of listening to so Anne Kimball, a Chicago lawyer rep- many of our colleagues on the other tragedy, frankly. There were already resenting Smith & Wesson Corp. and other side of the issue who, in their elo- 20,000 existing gun laws when that hap- gun makers, said the judges saw that the ac- quence, can knock the second amend- pened, but the killings were not tions of criminals cannot be controlled by ment down. It is interesting, though, stopped. Do we think more gun laws the firearms industry. ‘‘There is no quarrel when we hear from the folks who were are going to stop something such as that everyone is concerned about violence actually on the scene when the second that from happening? . . . The question is what to do about it. But these lawsuits are wrong,’’ she said. amendment was written, folks such as There was a recent amendment to Samuel Adams, who said: stop gun manufacturers from declaring Mr. SMITH of New Hampshire. They Among the natural rights of the colonists bankruptcy. Down the line they come, are basically saying they are going to are these—first, the right to life; secondly to time after time again, singling out one throw these suits out. That is the gist liberty; thirdly to property; together with legal product for discrimination: guns. of it. They are not constitutional. The the right to defend them in the best manner No other lawful industry is treated so courts recognize that. The judges said they can. unfairly. Fortunately, my colleagues they were completely lacking any legal Basically talking about the right to voted overwhelmingly to reject that basis. bear arms. John Adams: amendment. Now the President wants to license Arms in the hands of the citizens may be The Clinton administration said it and register all guns, like automobiles, used at individual discretion for the defense will file a Federal lawsuit against gun as my colleague from Idaho referred to.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S355 The last time I checked, there wasn’t a Mr. MURKOWSKI. Mr. President, I Mariana Islands to make fundamental policy constitutional right to drive. Does any- ask unanimous consent that the order decisions regarding the direction and pace of body know about that? I don’t think for the quorum call be rescinded. the economic development and growth of the The PRESIDING OFFICER (Mr. Commonwealth of the Northern Mariana Is- they knew what a car was when the lands, consistent with the fundamental national Constitution was written. There is no HAGEL). Without objection, it is so or- values underlying Federal immigration policy. comparison between the two issues. I dered. SEC. 2. IMMIGRATION REFORM FOR THE COM- never heard anything from the Found- f MONWEALTH OF THE NORTHERN ing Fathers about the right to wagons MARIANA ISLANDS. CONCLUSION OF MORNING or horses during that time. I never (a) AMENDMENTS TO ACT APPROVING THE COV- BUSINESS ENANT TO ESTABLISH A COMMONWEALTH OF THE heard Patrick Henry say: Give me mo- The PRESIDING OFFICER. Morning NORTHERN MARIANA ISLANDS IN POLITICAL bility or give me death. He said: Give UNION WITH THE UNITED STATES OF AMERICA.— me liberty or give me death. That is business is closed. Public Law 94–241 (90 Stat. 263), as amended, is because driving a car is a privilege, not f further amended by adding at the end thereof a right. It is a privilege. Gun owners NORTHERN MARIANA ISLANDS the following: would love to have guns treated as COVENANT IMPLEMENTATION ACT ‘‘SEC. 6. IMMIGRATION AND TRANSITION. cars, with no background checks, no ‘‘(a) APPLICATION OF THE IMMIGRATION AND waiting periods, no age limit; it might The PRESIDING OFFICER. Under NATIONALITY ACT AND ESTABLISHMENT OF A TRANSITION PROGRAM.—Effective on the first be a good thing. the previous order, the Senate will now proceed to the consideration of S. 1052, day of the first full month commencing one year Tyranny isn’t always obvious. It isn’t after the date of enactment of the Northern always about killing and communism which the clerk will report. The assistant legislative clerk read Mariana Islands Covenant Implementation Act and all that. Tyranny can be much (hereafter the ‘‘transition program effective more subtle, piecemeal, gradual—like as follows: date’’), the provisions of the Immigration and violating our oath of office and voting A bill (S. 1052) to implement further the Nationality Act, as amended (8 U.S.C. 1101 et against our constitutional rights. It Act (Public Law 94–241) approving the Cov- seq.) shall apply to the Commonwealth of the enant to Establish a Commonwealth of the Northern Mariana Islands: Provided, That there happens all the time in this place. His- Northern Mariana Islands in Political Union tory will judge us for it; it will judge us shall be a transition period ending December 31, with the United States of America, and for 2009 (except for subsection (d)(2)(I)), following on the basis of how many times we other purposes. the transition program effective date, during stood here after having taken the oath The Senate proceeded to consider the which the Attorney General of the United States of office and then having ignored that bill, which had been reported from the (hereafter ‘‘Attorney General’’), in consultation oath. Committee on Energy and Natural Re- with the United States Secretaries of State, The second amendment guarantees sources, with an amendment to strike Labor, and the Interior, shall establish, admin- that the right to keep and bear arms ister, and enforce a transition program for immi- all after the enacting clause and insert- gration to the Commonwealth of the Northern shall not be infringed. If you are for ing in lieu thereof the following: gun control—and you have a right to Mariana Islands provided in subsections (b), (c), SECTION 1. SHORT TITLE AND PURPOSE. (d), (e), (f), (g), and (j) of this section (hereafter be—then you are against the Constitu- (a) This Act may be cited as the ‘‘Northern the ‘‘transition program’’). The transition pro- tion of the United States. Change the Mariana Islands Covenant Implementation gram shall be implemented pursuant to regula- amendment if you think you can do it. Act’’. tions to be promulgated as appropriate by each But don’t keep passing gun control leg- (b) STATEMENT OF PURPOSE.—In recognition agency having responsibilities under the transi- islation time after time after time. of the need to ensure uniform adherence to tion program. That is what we are doing in these pro- long-standing fundamental immigration policies ‘‘(b) EXEMPTION FROM NUMERICAL LIMITA- posals and laws. We are doing it quiet- of the United States, it is the intention of Con- TIONS FOR H–2B TEMPORARY WORKERS.—An gress in enacting this legislation— alien, if otherwise qualified, may seek admission ly, without violence, and with an air of (1) to ensure effective immigration control by to the Commonwealth of the Northern Mariana respectability, which is what troubles extending the Immigration and Nationality Act, Islands as a temporary worker under section me—as if it is right to do it here be- as amended (8 U.S.C. 1101 et seq.), in full to the 101(a)(15)(H)(ii)(B) of the Immigration and Na- cause it is on the floor of the Senate. Commonwealth of the Northern Mariana Is- tionality Act (8 U.S.C. 1101(a)(15)(H)(ii)(B)) We are violating the constitutional lands, with special provisions to allow for the without regard to the numerical limitations set rights of millions of law-abiding Amer- orderly phasing-out of the nonresident contract forth in section 214(g) of such Act (8 U.S.C. ican citizens across the country, and worker program of the Commonwealth of the 1184(g)). any way you slice it that is still tyr- Northern Mariana Islands, and the orderly ‘‘(c) TEMPORARY ALIEN WORKERS.—The tran- phasing-in of Federal responsibilities over immi- sition program shall conform to the following re- anny. That is why I am proud to stand gration in the Commonwealth of the Northern quirements with respect to temporary alien here, as I have done many times—and I Mariana Islands; workers who would otherwise not be eligible for will do it every day, if I have to, until (2) to minimize, to the greatest extent possible, nonimmigrant classification under the Immigra- the last day I am in the Senate—in de- potential adverse effects this orderly phase-out tion and Nationality Act: fense of the second amendment. I am might have on the economy of the Common- ‘‘(1) Aliens admitted under this subsection pleased and proud to support the sec- wealth of the Northern Mariana Islands by: shall be treated as nonimmigrants under section ond amendment. (A) encouraging diversification and growth of 101(a)(15) of the Immigration and Nationality At this point, I yield the floor. the economy of the Commonwealth of the North- Act (8 U.S.C. 1101(a)(15)), including the ability ern Mariana Islands consistent with funda- to apply, if otherwise eligible, for a change of The PRESIDING OFFICER. The Sen- mental values underlying Federal immigration nonimmigrant classification under section 248 of ator from Wyoming is recognized. policy; such Act (8 U.S.C. 1258), or adjustment of sta- Mr. THOMAS. Mr. President, the (B) recognizing local self-government, as pro- tus, if eligible therefor, under this section and other Senator from New Hampshire vided for in the Covenant to Establish a Com- section 245 of such Act (8 U.S.C. 1255). will be here shortly. I thank my friends monwealth of the Northern Mariana Islands in ‘‘(2)(A) The United States Secretary of Labor for talking about the issue. I think it is Political Union with the United States of Amer- shall establish, administer, and enforce a system one that is clearly important to many ica through consultation with the Governor and for allocating and determining the number, of us. It is constitutional. It is right. It other elected officials of the Government of the terms, and conditions of permits to be issued to prospective employers for each temporary alien is something we all support. It is some- Commonwealth of the Northern Mariana Is- lands by Federal agencies and by considering worker who would not otherwise be eligible for thing, however, we don’t want to con- the views and recommendations of such officials admission under the Immigration and Nation- stantly have before us as each new in the implementation and enforcement of Fed- ality Act. This system shall provide for a reduc- issue comes up. This can be brought up eral law by Federal agencies; tion in the allocation of permits for such work- as an amendment or as a way of stall- (C) assisting the Commonwealth of the North- ers on an annual basis, to zero, over a period ing going on to other things. I appre- ern Mariana Islands to achieve a progressively not to extend beyond December 31, 2009, and ciate very much the opportunity to do higher standard of living for its citizens through shall take into account the number of petitions this. the provision of technical and other assistance; granted under subsection (j). In no event shall (D) providing opportunities for persons au- a permit be valid beyond the expiration of the I suggest the absence of a quorum. thorized to work in the United States, including transition period. This system may be based on The PRESIDING OFFICER. The lawfully admissible freely associated state cit- any reasonable method and criteria determined clerk will call the roll. izen labor; and by the United States Secretary of Labor to pro- The legislative clerk proceeded to (E) ensuring the ability of the locally elected mote the maximum use of, and to prevent ad- call the roll. officials by the Commonwealth of the Northern verse effects on wages and working conditions

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00011 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S356 CONGRESSIONAL RECORD — SENATE February 7, 2000 of, persons authorized to work in the United following fiscal year under section 203(b) of the ‘‘(ii) the alien has been a person of good moral States, including lawfully admissible freely as- Immigration and Nationality Act (8 U.S.C. character for the preceding five years; sociated state citizen labor, taking into consider- 1153(b)). The labor certification requirements of ‘‘(iii) the alien has not violated the terms and ation the objective of providing as smooth a section 212(a)(5) of the Immigration and Nation- conditions of the alien’s permanent resident sta- transition as possible to the full application of ality Act, as amended (8 U.S.C. 1182(a)(5)) shall tus; and federal law. not apply to an alien seeking immigration bene- ‘‘(iv) the alien would suffer exceptional and ‘‘(B) The United States Secretary of Labor is fits under this subsection. extremely unusual hardship were such limiting authorized to establish and collect appropriate ‘‘(B) Upon notification by the Attorney Gen- terms and conditions not waived. user fees for the purposes of this section. eral that a number has been established pursu- ‘‘(H) The limiting terms and conditions of an Amounts collected pursuant to this section shall ant to subparagraph (A), the United States Sec- alien’s permanent residence set forth in this be deposited in a special fund of the Treasury. retary of State may allocate up to that number paragraph shall expire at the end of five years Such amounts shall be available, to the extent of visas without regard to the numerical limita- after the alien’s admission to the Common- and in the amounts as provided in advance in tions set forth in sections 202 and 203(b)(3)(B) of wealth of the Northern Mariana Islands as a appropriations acts, for the purposes of admin- the Immigration and Nationality Act (8 U.S.C. permanent resident. Following the expiration of istering this section. Such amounts are author- 1152 and 1153(b)(3)(B)). Visa numbers allocated such limiting terms and conditions, the perma- ized to be appropriated to remain available until under this paragraph shall be allocated first nent resident alien may engage in any lawful expended. from the number of visas available under section activity, including employment, anywhere in the ‘‘(3) The Attorney General shall set the condi- 203(b)(3) of such Act (8 U.S.C. 1153(b)(3)), or, if United States. Such an alien, if otherwise eligi- tions for admission of nonimmigrant temporary such visa numbers are not available, from the ble for naturalization, may count the five-year alien workers under the transition program, and number of visas available under section 203(b)(5) period in the Commonwealth of the Northern the United States Secretary of State shall au- of such Act (8 U.S.C. 1153(b)(5)). Mariana Islands towards time in the United thorize the issuance of nonimmigrant visas for ‘‘(C) Persons granted employment-based immi- States for purposes of meeting the residence re- aliens to engage in employment only as author- grant visas under the transition program may be quirements of title III of the Immigration and ized in this subsection: Provided, That such admitted initially at a port-of-entry in the Com- Nationality Act. visas shall not be valid for admission to the monwealth of the Northern Mariana Islands, or ‘‘(I) SPECIAL PROVISION TO ENSURE ADEQUATE United States, as defined in section 101(a)(38) of at a port-of-entry in Guam for the purpose of EMPLOYMENT IN THE TOURISM INDUSTRY AFTER the Immigration and Nationality Act (8 U.S.C. immigrating to the Commonwealth of the North- THE TRANSITION PERIOD ENDS.— 1101(a)(38)), except the Commonwealth of the ern Mariana Islands, as lawful permanent resi- ‘‘(i) During 2008, and in 2014 if a five year ex- Northern Mariana Islands. An alien admitted to dents of the United States. Persons who would tension was granted, the Attorney General and the Commonwealth of the Northern Mariana Is- otherwise be eligible for lawful permanent resi- the United States Secretary of Labor shall con- lands on the basis of such a nonimmigrant visa dence under the transition program, and who sult with the Governor of the Commonwealth of shall be permitted to engage in employment only would otherwise be eligible for an adjustment of the Northern Mariana Islands and tourism busi- as authorized pursuant to the transition pro- status, may have their status adjusted within nesses in the Commonwealth of the Northern gram. No alien shall be granted nonimmigrant the Commonwealth of the Northern Mariana Is- Mariana Islands to ascertain the current and classification or a visa under this subsection un- lands to that of an alien lawfully admitted for future labor needs of the tourism industry in the less the permit requirements established under permanent residence. Commonwealth of the Northern Mariana Is- paragraph (2) have been met. ‘‘(D) Any immigrant visa issued pursuant to lands, and to determine whether a five-year ex- ‘‘(4) An alien admitted as a nonimmigrant this paragraph shall be valid only for applica- tension of the provisions of this paragraph pursuant to this subsection shall be permitted to tion for initial admission to the Commonwealth (d)(2) would be necessary to ensure an adequate transfer between employers in the Common- of the Northern Mariana Islands. The admission number of workers for legitimate businesses in wealth of the Northern Mariana Islands during of any alien pursuant to such an immigrant visa the tourism industry. For the purpose of this the period of such alien’s authorized stay there- shall be an admission for lawful permanent resi- section, a business shall not be considered legiti- in, without advance permission of the employ- dence and employment only in the Common- mate if it engages directly or indirectly in pros- ee’s current or prior employer, to the extent that wealth of the Northern Mariana Islands during titution or any activity that is illegal under such transfer is authorized by the Attorney the first five years after such admission. Such Federal or local law. The determination of General in accordance with criteria established admission shall not authorize residence or em- whether a business is legitimate and whether it by the Attorney General and the United States ployment in any other part of the United States is sufficiently related to the tourism industry Secretary of Labor. during such five-year period. An alien admitted shall be made by the Attorney General in his ‘‘(d) IMMIGRANTS.—With the exception of im- for permanent residence pursuant to this para- sole discretion and shall not be reviewable. If mediate relatives (as defined in section 201(b)(2) graph shall be issued appropriate documenta- the Attorney General after consultation with of the Immigration and Nationality Act (8 tion identifying the person as having been ad- the United States Secretary of Labor determines, U.S.C. 1151(b)(2)) and persons granted an immi- mitted pursuant to the terms and conditions of in the Attorney General’s sole and unreviewable grant visa as provided in paragraphs (1) and (2) this transition program, and shall be required to discretion, that such an extension is necessary of this subsection, no alien shall be granted ini- comply with a system for the registration and to ensure an adequate number of workers for le- tial admission as a lawful permanent resident of reporting of aliens admitted for permanent resi- gitimate businesses in the tourism industry, the the United States at a port-of-entry in the Com- dence under the transition program, to be estab- Attorney General shall provide notice by publi- monwealth of the Northern Mariana Islands, or lished by the Attorney General, by regulation, cation in the Federal Register that the provi- a port-of-entry in Guam for the purpose of im- consistent with the Attorney General’s author- sions of this paragraph will be extended for a migrating to the Commonwealth of the Northern ity under chapter 7 of title II of the Immigration five-year period with respect to the tourism in- Mariana Islands. and Nationality Act (8 U.S.C. 1301–1306). dustry only. The Attorney General may author- ‘‘(1) FAMILY-SPONSORED IMMIGRANT VISAS.— ‘‘(E) Nothing in this paragraph shall preclude ize one further extension of this paragraph with For any fiscal year during which the transition an alien who has obtained lawful permanent respect to the tourism industry in the Common- program will be in effect, the Attorney General, resident status pursuant to this paragraph from wealth of the Northern Mariana Islands if, after after consultation with the Governor and the applying, if otherwise eligible, under this sec- the Attorney General consults with the United leadership of the Legislature of the Common- tion and under the Immigration and Nationality States Secretary of Labor and the Governor of wealth of the Northern Mariana Islands, and in Act for an immigrant visa or admission as a the Commonwealth of the Northern Mariana Is- consultation with appropriate federal agencies, lawful permanent resident under the Immigra- lands, and local tourism businesses, the Attor- may establish a specific number of additional tion and Nationality Act. ney General determines, in the Attorney Gen- initial admissions as a family-sponsored immi- ‘‘(F) Any alien admitted under this sub- eral’s sole discretion, that a further extension is grant at a port-of-entry in the Commonwealth section, who violates the provisions of this para- required to ensure an adequate number of work- of the Northern Mariana Islands, or at a port- graph, or who is found removable or inadmis- ers for legitimate businesses in the tourism in- of-entry in Guam for the purpose of immigrating sible under section 237(a) (8 U.S.C. 1227(a)), or dustry in the Commonwealth of the Northern to the Commonwealth of the Northern Mariana paragraphs (1), (2), (3), (4)(A), (4)(B), (6), (7), Mariana Islands. The determination as to Islands, pursuant to sections 202 and 203(a) of (8), (9), or (10) of section 212(a) (8 U.S.C. whether a further extension is required shall not the Immigration and Nationality Act (8 U.S.C. 1182(a)), shall be removed from the United be reviewable. 1152 and 1153(a)). States pursuant to sections 235, 238, 239, 240, or ‘‘(ii) The Attorney General, after consultation ‘‘(2) EMPLOYMENT-BASED IMMIGRANT VISAS.— 241 of the Immigration and Nationality Act, as with the Governor of the Commonwealth of the ‘‘(A) If the Attorney General, after consulta- appropriate (8 U.S.C. 1225, 1228, 1229, 1230, and Northern Mariana Islands and the United tion with the United States Secretary of Labor 1231). States Secretary of Labor and the United States and the Governor and the leadership of the Leg- ‘‘(G) The Attorney General may establish by Secretary of Commerce, may extend the provi- islature of the Commonwealth of the Northern regulation a procedure by which an alien who sions of this paragraph (d)(2) to legitimate busi- Mariana Islands, finds that exceptional cir- has obtained lawful permanent resident status nesses in industries outside the tourism industry cumstances exist with respect to the inability of pursuant to this paragraph may apply for a for a single five year period if the Attorney Gen- employers in the Commonwealth of the Northern waiver of the limiting terms and conditions of eral, in the Attorney General’s sole discretion, Mariana Islands to obtain sufficient work-au- such status. The Attorney General may grant concludes that such extension is necessary to thorized labor, the Attorney General may estab- the application for waiver, in the discretion of ensure an adequate number of workers in that lish a specific number of employment-based im- the Attorney General, if— industry and that the industry is important to migrant visas to be made available during the ‘‘(i) the alien is not in removal proceedings; growth or diversification of the local economy.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00012 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S357 The decision by the Attorney General shall not the Northern Mariana Islands on the transition time the immigrant visa is granted or the alien’s be reviewable. program effective date shall be considered au- status is adjusted to permanent resident; ‘‘(iii) In making his determination for the thorized by the Attorney General to be employed ‘‘(F) the petitioner’s business has a reasonable tourism industry or for industries outside the in the Commonwealth of the Northern Mariana expectation of generating sufficient revenue to tourism industry, the Attorney General shall Islands until the expiration of the alien’s em- continue to employ the alien in that business for take into consideration the extent to which a ployment authorization under the immigration the succeeding five years; and training and recruitment program has been im- laws of the Commonwealth of the Northern ‘‘(G) the alien is otherwise eligible for admis- plemented to hire persons authorized to work in Mariana Islands, or the second anniversary of sion to the United States under the provisions of the United States, including lawfully admissible the transition program effective date, whichever the Immigration and Nationality Act, as amend- freely associated state citizen labor to work in comes first. ed (8 U.S.C. 1101, et seq.). such industry. The determination by the Attor- ‘‘(g) TRAVEL RESTRICTIONS FOR CERTAIN AP- ‘‘(2) Visa numbers allocated under this sub- ney General shall not be reviewable. No addi- PLICANTS FOR ASYLUM.—Any alien admitted to section shall be allocated first from the number tional extension beyond the initial five year pe- the Commonwealth of the Northern Mariana Is- of visas available under paragraph 203(b)(3) of riod may be granted for any industry outside lands pursuant to the immigration laws of the the Immigration and Nationality Act, as amend- the tourism industry or for the tourism industry Commonwealth of the Northern Mariana Is- ed (8 U.S.C. 1153(b)(3)), or, if such visa numbers beyond a second extension. If an extension is lands or pursuant to subsections (c) or (d) of are not available, from the number of visas granted, the Attorney General shall submit a re- this section who files an application seeking available under paragraph 203(b)(5) of such Act port to the Committee on Energy and Natural asylum or withholding of removal in the United (8 U.S.C. 1153(b)(5)). Resources of the Senate and the Committee on States shall be required to remain in the Com- ‘‘(3) The labor certification requirements of Resources of the House of Representatives set- monwealth of the Northern Mariana Islands section 212(a)(5) of the Immigration and Nation- ting forth the reasons for the extension and during the period of time the application is ality Act, as amended (8 U.S.C. 1182(a)(5)) shall whether he believes authority for additional ex- being adjudicated or during any appeals filed not apply to an alien seeking immigration bene- tensions should be enacted. subsequent to such adjudication. An applicant fits under this subsection. ‘‘(e) NONIMMIGRANT INVESTOR VISAS.— for asylum or withholding of removal who, dur- ‘‘(4) The fact that an alien is the beneficiary ‘‘(1) Notwithstanding the treaty requirements ing the time his application is being adjudicated of an application for a preference status that in section 101(a)(15)(E) of the Immigration and or during any appeals filed subsequent to such was filed with the Attorney General under sec- Nationality Act (8 U.S.C. 1101(a)(15)(E)), the At- adjudication, leaves the Commonwealth of the tion 204 of the Immigration and Nationality Act, torney General may, upon the application of the Northern Mariana Islands of his own will with- as amended (8 U.S.C. 1154) for the purpose of alien, classify an alien as a nonimmigrant under out prior authorization by the Attorney General obtaining benefits under this subsection, or has section 101(a)(15)(E)(ii) of the Immigration and thereby abandons the application, unless the otherwise sought permanent residence pursuant Nationality Act (8 U.S.C. 1101(a)(15)(E)(ii)) if Attorney General, in the exercise of the Attor- to this subsection, shall not render the alien in- the alien— ney General’s sole discretion determines that the eligible to obtain or maintain the status of a ‘‘(A) has been admitted to the Commonwealth unauthorized departure was for emergency rea- nonimmigrant under this Act or the Immigration of the Northern Mariana Islands in long-term sons and prior authorization was not prac- and Nationality Act, as amended, if the alien is investor status under the immigration laws of ticable. otherwise eligible for such nonimmigrant sta- the Commonwealth of the Northern Mariana Is- ‘‘(h) EFFECT ON OTHER LAWS.—The provisions tus.’’. lands before the transition program effective of this section and the Immigration and Nation- (b) CONFORMING AMENDMENTS.—(1) Section date; ality Act, as amended by the Northern Mariana 101(a) of the Immigration and Nationality Act (8 ‘‘(B) has continuously maintained residence Islands Covenant Implementation Act, shall, on U.S.C. 1101(a)) is amended: in the Commonwealth of the Northern Mariana the transition program effective date, supersede (A) in paragraph (36), by deleting ‘‘and the Islands under long-term investor status; and replace all laws, provisions, or programs of Virgin Islands of the United States.’’ and sub- ‘‘(C) is otherwise admissible; and the Commonwealth of the Northern Mariana Is- stituting ‘‘the Virgin Islands of the United ‘‘(D) maintains the investment or investments lands relating to the admission of aliens and the States, and the Commonwealth of the Northern that formed the basis for such long-term investor removal of aliens from the Commonwealth of the Mariana Islands.’’, and; status. Northern Mariana Islands. (B) in paragraph (38), by deleting ‘‘and the ‘‘(i) ACCRUAL OF TIME FOR PURPOSES OF SEC- ‘‘(2) Within 180 days after the transition pro- Virgin Islands of the United States’’ and sub- TION 212(a)(9)(B) OF THE IMMIGRATION AND NA- gram effective date, the Attorney General and stituting ‘‘the Virgin Islands of the United TIONALITY ACT, AS AMENDED.—No time that an the United States Secretary of State shall jointly States, and the Commonwealth of the Northern alien is present in violation of the immigration publish regulations in the Federal Register to Mariana Islands.’’. laws of the Commonwealth of the Northern implement this subsection. (2) Section 212(l) of the Immigration and Na- Mariana Islands shall by reason of such viola- ‘‘(3) The Attorney General shall treat an alien tionality Act (8 U.S.C. 1182(l)) is amended— tion be counted for purposes of the ground of in- who meets the requirements of paragraph (1) as (A) in paragraph (1)— a nonimmigrant under section 101(a)(15)(E)(ii) admissibility in section 212(a)(9)(B) of the Immi- (i) by striking ‘‘stay on Guam’’, and inserting gration and Nationality Act (8 U.S.C. of the Immigration and Nationality Act (8 ‘‘stay on Guam or the Commonwealth of the 1182(a)(9)(B)). U.S.C. 1101(a)(15)(E)(ii) until the regulations Northern Mariana Islands’’, ‘‘(j) ONE-TIME GRANDFATHER PROVISION FOR implementing this subsection are published. (ii) by inserting ‘‘a total of ’’ after ‘‘exceed’’, CERTAIN LONG-TERM EMPLOYEES.— ‘‘(f) PERSONS LAWFULLY ADMITTED UNDER ‘‘(1) An alien may be granted an immigrant and THE COMMONWEALTH OF THE NORTHERN MAR- visa, or have his or her status adjusted in the (iii) by striking the words ‘‘after consultation IANA ISLANDS IMMIGRATION LAW.— Commonwealth of the Northern Mariana Is- with the Governor of Guam,’’ and inserting ‘‘(1) No alien who is lawfully present in the lands to that of an alien lawfully admitted for ‘‘after respective consultation with the Governor Commonwealth of the Northern Mariana Is- permanent residence, without regard to the nu- of Guam or the Governor of the Commonwealth lands pursuant to the immigration laws of the merical limitations set forth in sections 202 and of the Northern Mariana Islands,’’; Commonwealth of the Northern Mariana Is- 203(b) of the Immigration and Nationality Act, (B) in paragraph (1)(A), by striking ‘‘on lands on the transition program effective date as amended (8 U.S.C. 1152, 1153(b)), and subject Guam’’, and inserting ‘‘on Guam or the Com- shall be removed from the United States on the to the limiting terms and conditions of an monwealth of the Northern Mariana Islands, re- ground that such alien’s presence in the Com- alien’s permanent residence set forth in para- spectively,’’; monwealth of the Northern Mariana Islands is graphs (C) through (H) of subsection (d)(2), if: (C) in paragraph (2)(A), by striking ‘‘into in violation of subparagraph 212(a)(6)(A) of the ‘‘(A) the alien is employed directly by an em- Guam’’, and inserting ‘‘into Guam or the Com- Immigration and Nationality Act, as amended, ployer in a business that the Attorney General monwealth of the Northern Mariana Islands, re- until completion of the period of the alien’s ad- has determined is legitimate; spectively,’’; and mission under the immigration laws of the Com- ‘‘(B) the employer has filed a petition for clas- (D) in paragraph (3), by striking ‘‘Government monwealth of the Northern Mariana Islands, or sification of the alien as an employment-based of Guam’’ and inserting ‘‘Government of Guam the second anniversary of the transition pro- immigrant with the Attorney General pursuant or the Government of the Commonwealth of the gram effective date, whichever comes first. Noth- to section 204 of the Immigration and Nation- Northern Mariana Islands’’. ing in this subsection shall be construed to pre- ality Act, as amended, not later than 180 days (3) The amendments to the Immigration and vent or limit the removal under subparagraph following the transition program effective date; Nationality Act made by this subsection shall 212(a)(6)(A) of such an alien at any time, if the ‘‘(C) the alien has been lawfully present in take effect on the first day of the first full alien entered the Commonwealth of the North- the Commonwealth of the Northern Mariana Is- month commencing one year after the date of ern Mariana Islands after the date of enactment lands and authorized to be employed in the enactment of the Northern Mariana Islands of the Northern Mariana Islands Covenant Im- Commonwealth of the Northern Mariana Is- Covenant Implementation Act. plementation Act, and the Attorney General has lands for the five-year period immediately pre- (c) TECHNICAL ASSISTANCE PROGRAM.—The determined that the Government of the Com- ceding the filing of the petition; United States Secretaries of Interior and Labor, monwealth of the Northern Mariana Islands ‘‘(D) the alien has been employed continu- in consultation with the Governor of the Com- violated subsection (f) of such Act. ously in that business by the petitioning em- monwealth of the Northern Mariana Islands, ‘‘(2) Any alien who is lawfully present and ployer for the 5-year period immediately pre- shall develop a program of technical assistance, authorized to be employed in the Commonwealth ceding the filing of the petition; including recruitment and training, to aid em- of the Northern Mariana Islands pursuant to ‘‘(E) the alien continues to be employed in ployers in the Commonwealth of the Northern the immigration laws of the Commonwealth of that business by the petitioning employer at the Mariana Islands in securing employees from

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S358 CONGRESSIONAL RECORD — SENATE February 7, 2000 among United States authorized labor, includ- pursuant to existing authorities of the Depart- I think it is reasonable to question ing lawfully admissible freely associated state ment, as he decides will assist in such a training how this situation arose. The Marianas citizen labor. In addition, for the first five fiscal program in the Commonwealth of the Northern was one district of the old United years following the fiscal year when this section Mariana Islands. States Nation’s Trust Territory of the is enacted, $500,000 shall be made available from (d) DEPARTMENT OF JUSTICE AND DEPARTMENT funds appropriated to the Secretary of the Inte- OF LABOR OPERATIONS.—The Attorney General Pacific islands, and the United States rior pursuant to Public Law 104–134 for the Fed- and the United States Secretary of Labor are was the administrating authority. The eral-CNMI Immigration, Labor and Law En- authorized to establish and maintain Immigra- residents of the Marianas wanted them forcement Initiative for the following activities: tion and Naturalization Service, Executive Of- to become a U.S. territory and obtain (1) $200,000 shall be available to reimburse the fice for Immigration Review, and United States local government and U.S. citizenship United States Secretary of Commerce for pro- Department of Labor operations in the Common- similar to the neighboring island of viding additional technical assistance and other wealth of the Northern Mariana Islands for the Guam. Guam is the southern most of support to the Commonwealth of the Northern purpose of performing their responsibilities Mariana Islands to identify opportunities for under the Immigration and Nationality Act, as the Mariana Islands and was acquired and encourage diversification and growth of the amended, and under the transition program. To from Spain back in 1898. The United Commonwealth economy. The United States Sec- the extent practicable and consistent with the States and local officials in the Mari- retary of Commerce shall consult with the Gov- satisfactory performance of their assigned re- anas negotiated a covenant to establish ernment of the Commonwealth of the Northern sponsibilities under applicable law, the United a Commonwealth of the Northern Mar- Mariana Islands, local businesses, the United States Departments of Justice and Labor shall iana Islands in political union with the States Secretary of the Interior, regional banks, recruit and hire from among qualified appli- and other experts in the local economy and shall United States. That included all the is- cants resident in the Commonwealth of the lands, with the exception of Guam; spe- assist in the development and implementation of Northern Mariana Islands for staffing such op- a process to identify opportunities for and en- erations. cifically, Saipan, Tinian, and Rota. courage diversification and growth of the Com- (e) REPORT TO THE CONGRESS.—The President That covenant was approved over- monwealth economy. All expenditures, other shall report to the Senate Committee on Energy whelmingly in a local United Nations- than for the costs of Federal personnel, shall re- and Natural Resources, and the House Com- observed plebiscite and then by this quire a non-Federal matching contribution of 50 mittee on Resources, within six months after the Congress in 1976. The early negotia- percent and the United States Secretary of Com- fifth anniversary of the enactment of this Act, tions assumed the trusteeship would merce shall provide a report on activities to the evaluating the overall effect of the transition terminate for the Marianas. The agree- Committee on Energy and Natural Resources program and the Immigration and Nationality and the Committee on Appropriations of the ment was approved and assumed the Act on the Commonwealth of the Northern Mar- full extension of Federal immigration Senate and the Committee on Resources and the iana Islands, and at other times as the Presi- Committee on Appropriations of the House of dent deems appropriate. The report shall de- laws at the same time the United Representatives by March 1 of each year. The scribe what efforts have been undertaken to di- States sovereignty was extended to the United States Secretary of Commerce may sup- versify and strengthen the local economy, in- area. When negotiations on other por- plement the funds provided under this section cluding, but not limited to, efforts to promote tions of the trust territory stalled and with other funds and resources available to him the Commonwealth of the Northern Mariana Is- and shall undertake such other activities, pur- the United States decided not to seek lands as a tourist destination. suant to existing authorities of the Department, piecemeal termination of the trustee- (f) LIMITATION ON NUMBER OF ALIEN WORK- as he decides will encourage diversification and ship, the Marianas justifiably wanted ERS PRIOR TO APPLICATION OF THE IMMIGRATION growth of the Commonwealth economy. If the as much of the covenant implemented AND NATIONALITY ACT, AS AMENDED, AND ES- United States Secretary of Commerce concludes TABLISHMENT OF THE TRANSITION PROGRAM.— under the trusteeship as possible. The that additional workers may be needed to During the period between enactment of this Act agreement was to implement these pro- achieve diversification and growth of the Com- and the effective date of the transition program visions of the covenant that were con- monwealth economy, the Secretary shall established under section 6 of Public Law 94– promptly notify the Attorney General and the sistent with the continued status of 241, as amended by this Act, the Government of United States Secretary of Labor and shall also the area under the trusteeship and the Commonwealth of the Northern Mariana Is- notify the Committee on Energy and Natural defer those provisions that were tied to lands shall not permit an increase in the total Resources of the Senate and the Committee on U.S. sovereignty. One of these provi- number of alien workers who are present in the Resources of the House of Representatives of his Commonwealth of the Northern Mariana Is- sions was Federal immigration law. conclusion with an explanation of how many lands on the date of enactment of this Act. That is what we are dealing with workers may be needed, over what period of (g) APPROPRIATIONS.—There are authorized to today. time such workers will be needed, and what ef- be appropriated such sums as may be necessary It was abundantly clear the United forts are being undertaken to train and actively to carry out the purposes of this section and of States could extend those laws as soon recruit and hire persons authorized to work in the Immigration and Nationality Act with re- the United States, including lawfully admissible as the trusteeship was terminated. The spect to the Commonwealth of the Northern freely associated state citizen labor to work in report accompanying the joint resolu- Mariana Islands. such businesses. tion of approval noted only that we (2) $300,000 shall be available to reimburse the Mr. MURKOWSKI. Mr. President, I hoped we could include an ‘‘adequate United States Secretary of Labor for providing ask unanimous consent the Senate pro- protective provision’’ to deal with the additional technical and other support to the ceed to S. 1052 for opening statements concern in the Marianas that their is- Commonwealth of the Northern Mariana Is- only. lands could be overrun with immigra- lands to train and actively recruit and hire per- The PRESIDING OFFICER. Without sons authorized to work in the United States, tion. objection, it is so ordered. Had we acted in 1986 to extend Fed- including lawfully admissible freely associated Mr. MURKOWSKI. Mr. President, the state citizen labor, to fill employment vacancies eral immigration laws, we wouldn’t be in the Commonwealth of the Northern Mariana legislation before the Senate will ex- here today. The Marianas economy Islands. The United States Secretary of Labor tend the provisions of the Immigration would not be so captive to the use of shall consult with the Governor of the Common- and Nationality Act to the Common- temporary contract workers and many wealth of the Northern Mariana Islands, local wealth of the Northern Mariana Islands of the abuses of workers would not businesses, the College of the Northern Mari- for 1 year after the date of enactment have occurred. On the other hand, the anas, the United States Secretary of the Interior of the legislation. level of prosperity on the islands might and the United States Secretary of Commerce To minimize adverse effects on the not be the same. and shall assist in the development and imple- local economy, a number of transition mentation of such a training program. All ex- What has happened in the Marianas? penditures, other than for the costs of Federal provisions have been incorporated in When the covenant was negotiated, all personnel, shall require a non-Federal matching the legislation, including funding for parties assumed economic development contribution of 50 percent and the United States technical assistance to diversify and would occur around tourism and antici- Secretary of Labor shall provide a report on ac- strengthen the local economy of those pated Department of Defense basing in tivities to the Committee on Energy and Natural islands. The transition period will end Tinian and Saipan. That followed the Resources and the Committee on Appropriations December 31, 2009, but the special pro- pattern in Guam. Tourism did develop; of the Senate and the Committee on Resources visions for employment—employment- the military activities did not. and the Committee on Appropriations of the based visas—may be extended for le- Others, however, noticed the unique House of Representatives by March 1 of each year. The United States Secretary of Labor may gitimate businesses in the tourism in- combination of authorities and moved supplement the funds provided under this sec- dustry for not to exceed two 5-year pe- in to try and take advantage. Because tion with other funds and resources available to riods and for a single 5-year period for the Marianas had control of immigra- him and shall undertake such other activities, other legitimate business. tion, it could set its own minimum

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S359 wage and had the ability to import long overdue. The current immigration porated in the legislation. The transi- goods into the U.S. Customs territory system, administered by the local gov- tion period will end on December 31, without duty and labeled that it had ernment, is inconsistent with long- 2009, but the special provisions for em- been made in the United States, for- standing U.S. immigration policy in ployment based visas may be extended eign garment operations—especially several respects. Let me just detail for legitimate businesses in the tour- those from China—sought to locate in some of that. ism industry for not to exceed two five- the Marianas. U.S. policy, first of all, does not year periods and for a single five-year The difficulty of a small island popu- allow the importation of temporary period for other legitimate businesses. lation trying to effectively administer workers for permanent jobs. Second, it This legislation is the result of sev- a comprehensive immigration system allows people coming into the United eral years work by the Committee, in- also led to other abuses in those taking States for permanent jobs to have the cluding a visit that I made to the advantage of the situation. Exploiters opportunity to become participating Northern Marianas in February 1996. I induced people in Bangladesh to pay members of society, including the right was accompanied by Senator AKAKA, enormous amounts of money to go to to vote and to be eligible for citizen- who has cosponsored this legislation the Marianas where there were jobs. ship. Local CNMI immigration law not and was also a cosponsor of legislation Other aliens arrived; some of them only allows large-scale use of tem- that I introduced in the last Congress. were not paid. Many alien workers porary alien workers for permanent This is bipartisan legislation that is were abused. The Committee on Energy jobs, it also prohibits temporary alien long overdue. The administration and Natural Resources heard testi- workers from settling permanently in would prefer a far more draconian ap- mony from a young lady who had been the CNMI and becoming U.S. citizens. proach with a minimum of transition brought to Saipan as a minor, forced to The most disturbing result of the and little economic or training assist- perform in a club, and was used for CNMI’s current immigration system is ance to the Northern Marianas. The prostitution. The Federal Government the documented, consistent and even Marianas, on the other hand, would has brought a prosecution in that in- increasing human rights abuses which prefer that we did nothing. I don’t stance on several counts, including these alien workers suffer. Moreover, think that either approach is respon- trafficking in human beings. This was despite promises of the American sible. occurring under the U.S. flag, and sup- dream, alien laborers coming to CNMI There are legitimate concerns by posedly with the protections all U.S. often sign contracts waiving rights and some in the Northern Marianas over citizens enjoy under our Constitution. freedoms guaranteed to U.S. workers. what the effect of this legislation may I have a series of charts I will discuss These include the right to change em- be. We have tried to address those con- in detail but in deference to my good ployers, the right to participate in reli- cerns, as I will describe later. For ex- friend, Senator BINGAMAN from New gious and political activities, and in ample, one of the ways that the North- Mexico, the ranking member of the some cases even the right to marriage. ern Marianas has tried to deal with the committee, I defer to him, and then This bill before us is not a controver- concern over alien workers remaining perhaps he can defer back to me. I sial bill. It should not be a controver- for indefinite periods without any po- yield to my good friend and ranking sial bill. It was reported from the En- litical rights is to limit the time that member from New Mexico, Senator ergy and Natural Resources Committee any worker can remain in the Mari- BINGAMAN. by a voice vote with no dissenting anas. One effect of that approach, how- Mr. BINGAMAN. Mr. President, I ap- opinions expressed. Last Congress, the ever, is to frustrate the ability of em- preciate the chairman, Senator MUR- committee reported a similar bill. In ployers to recruit, train, and hire per- KOWSKI, yielding. order to address concerns by the local sonnel. From experience, I can testify First, I compliment him and, of CNMI government that the bill will ad- that the last thing any employer wants course, Senator AKAKA, who is the versely affect their economy, the bill to do is commit resources to training moving force behind this legislation on also contains many special provisions. individuals only to have them leave for the Democratic side. I think this legis- Among these special provisions is one other employment. It is far worse when lation, S. 1052, is a very important and that requires the Secretary of Com- the government says that your most overdue piece of legislation. merce and the Secretary of Labor to valuable employees must not only I know both Senator AKAKA and Sen- provide financial and technical assist- leave your employ, but must also leave ator MURKOWSKI have worked tirelessly ance to help them diversify their econ- the country. Lynn Knight, the new and persistently to bring these issues omy and train local workers. president of the Saipan Chamber of to our attention. I compliment them I hope the Senate will act quickly Commerce, noted that she had one em- on that. I will give a short statement, and pass this bill. I again compliment ployee who had been with her firm for and then Senator AKAKA will be man- Senator AKAKA and Senator MUR- several years and would have to leave. aging the bill on the Democratic side. I KOWSKI for their leadership on this im- Another skilled professional could re- am sure he has much more information portant matter. main since he was a U.S. citizen. Simi- to provide on the legislation. I yield the floor. I know at some lar situations are likely in other busi- Both Senator MURKOWSKI and Sen- point Senator AKAKA wishes to speak nesses, and I would expect especially in ator AKAKA traveled to the Common- to the matter as well. the tourism industry. To deal with that wealth of the Northern Mariana Islands The PRESIDING OFFICER. The Sen- problem, the committee has included a and witnessed the problems there first- ator from Alaska. special provision (the new section 6(j) hand. I am very glad to join them as a Mr. MURKOWSKI. Mr. President, I to the Covenant Act) that provides a cosponsor on this important piece of thank my good friend and colleague, one-time grandfather provision for legislation. Our committee held several the ranking member of the Senate En- long-term employees in legitimate hearings over the years and established ergy and Natural Resources Com- businesses. The provision would allow a record concerning the very serious mittee, the Senator from New Mexico, employers to sponsor current employ- problems that exist in the CNMI. More- for his comments and for his support. ees who had been employed for five over, three successive administrations This legislation was reported unani- years. If the alien is otherwise eligible from both parties, beginning with the mously by the Committee on Energy for admission to the United States, Reagan administration, have expressed and Natural Resources. S. 1052, as re- that employee may be granted an im- concerns about the situation in the ported by the Committee on Energy migrant visa or have his status ad- CNMI. Many problems have been iden- and Natural Resources, will extend the justed to a person lawfully admitted tified, and they have been discussed provisions of the Immigration and Na- for permanent residence without re- over many years. tionality Act to the Commonwealth of gard to any numerical limitations in However, clearly the central problem the Northern Mariana Islands one year the Immigration Act. relates to this immigration issue. S. after the date of enactment of the leg- I mention this one provision to illus- 1052 only addresses immigration. This islation. To minimize adverse effects trate that the committee has tried its bill represents a modest step toward on the local economy, a number of best to deal with any legitimate con- implementing the reforms that are transition provisions have been incor- cerns with the legislation and, as in

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S360 CONGRESSIONAL RECORD — SENATE February 7, 2000 the case of Ms. Knight, problems with unrestricted immigration may impose upon any of the rights of persons who legally the current local laws. Unfortunately, small island communities. Congress is aware enter the United States to work or re- obtaining specific comments and rec- of those problems. . . . It may well be that side. these problems will have been solved by the Repeated allegations of violations of ommendations has not been the easiest time of the termination of the Trusteeship task before the committee. While the Agreement and that the Immigration and applicable federal laws relating to Governor has been forthright, the tac- Nationality Act containing adequate protec- worker health and safety, concerns tics taken by others has been more to tive provisions can then be introduced to the with respect to immigration problems, obstruct the legislation than to provide Northern Mariana Islands. . . . including the admission of undesirable useful comments and suggestions. The Until termination of the trusteeship, aliens, and reports of worker abuse, es- Governor has lowered the tone of the the United States possessed and exer- pecially in the domestic and garment debate on this issue, although his ex- cised plenary power, including control worker sectors, led to the inclusion of ample has not been followed by others. over entry into the area. The com- a $7 million set aside in appropriations I would refer my colleagues to the re- mittee anticipated that by the termi- in 1994 to support federal agency pres- port of the committee on this legisla- nation of the Trusteeship, the federal ence in the Commonwealth of the tion for a detailed history on how we government would have found some Northern Mariana Islands and in- arrived at this situation where the way of preventing a large influx of per- creased enforcement of federal laws. United States does not control the sons into the Marianas, recognizing the During the 104th Congress, the Sen- terms of entry to its shores, what that constitutional limitations on restric- ate passed S. 638, legislation reported exemption turned into, and how we tions on travel, and that we would ex- by the Committee on Energy and Nat- have dealt with legitimate concerns tend federal immigration laws when we ural Resources and supported by the about the long overdue extension of extended United States sovereignty administration. Concern over the effec- federal legislation. over the area. We neglected to do so. tiveness of the Commonwealth of the In brief, however, in 1976, Congress Upon termination of the trusteeship, Northern Mariana Islands immigration approved a Covenant to Establish a the Commonwealth of the Northern laws and reports of the entry of orga- Commonwealth of the Northern Mar- Mariana Islands became a territory of nized criminal elements from Japan iana Islands in Political Union with the United States and its residents be- and China led the committee to include the United States (PL 94–241). The Cov- came United States citizens. What a provision to require the Common- enant formed the basis for the termi- transpired thereafter, however, was wealth ‘‘to cooperate in the identifica- nation of the United Nations Trustee- precisely what we sought to prevent. tion and, if necessary, exclusion or de- ship with respect to the Northern Mar- Because we had not enacted legislation portation from the Commonwealth of iana Islands. Termination occurred in extending federal immigration laws, the Northern Mariana Islands of per- 1986 for the Commonwealth of the however, persons were free to enter the sons who represent security or law en- Northern Mariana Islands and for the Northern Marianas under local law. Al- forcement risks to the Commonwealth Republic of the Marshall Islands and though the population of the Common- of the Northern Mariana Islands or the the Federated States of Micronesia. wealth of the Northern Mariana Islands United States.’’ (Sec. 4 of S. 638) No ac- Prior to termination, those provisions was only 15,000 people in 1976 when the tion was taken by the House. of the Covenant that were consistent Covenant was approved, the population In February, 1996, I visited the Com- with continued status of the area as (July, 1999) is now estimated at 79,429. monwealth of the Northern Mariana Is- part of the Trust Territory were made The rapid increase in population coin- lands with Senator AKAKA and met applicable by the U.S. as Admin- cides with the assumption of immigra- with local and federal officials. In addi- istering Authority. Other provisions tion control by the Commonwealth of tion, we inspected a garment factory (such as the extension of U.S. sov- the Northern Mariana Islands. Accord- and met with Bangladeshi security ereignty) were not made applicable. ing to the most recent statistical sur- guards who had not been paid and who Among those laws was the Immigra- vey by the Commonwealth of the were living in substandard conditions. tion Act. Had the United States sought Northern Mariana Islands, in 1980, 78 As a result of the meetings and contin- piece-meal termination of the trustee- percent of the Commonwealth of the ued expressions of concern over condi- ship, as some advocated at the time, or Northern Mariana Islands population tions, the committee held an oversight if agreement with the other districts were U.S. citizens. That figure had de- hearing on June 26, 1996. We were as- had not proved so elusive, the immigra- clined to less than 47 percent by 1990 sured that conditions would improve. tion laws of the United States would and by 1991, the percentage on Saipan, The U.S. Commission on Immigra- have been extended to the Northern where most of the population resides, tion Reform conducted a site visit to Marianas as they applied to Guam. We the figure was 42 percent. the Northern Marianas in July 1997 and would not be here today. The majority of the population re- issued a report which in general sup- The Covenant permitted a unique sides on Saipan, which is the economic ported extension of immigration laws. system in the Commonwealth of the and government center of the Common- The report found problems in the Com- Northern Mariana Islands under which wealth of the Northern Mariana Is- monwealth of the Northern Mariana Is- the local government controlled immi- lands. The most recent statistics lands ‘‘ranging from bureaucratic inef- gration and minimum wage levels and (March 1999) from the Commonwealth ficiencies to labor abuses to an also had the benefit of duty and quota of the Northern Mariana Islands esti- unsustainable economic, social and po- free entry of manufactured goods under mate the population of Saipan at litical system that is antithetical to the provisions of General Note 3(a) of 71,790. U.S. citizens are estimated at most American values’’ but ‘‘a willing- the Harmonized Tariff Schedules. My 30,154 of whom 24,710 are Common- ness on the part of some Common- colleagues should be aware that these wealth of the Northern Mariana Islands wealth of the Northern Mariana Islands provisions are not subject to mutual born. There are 41,636 aliens of whom officials and business leaders to address consent and can be modified or re- about 4,000 are from the freely associ- the various problems’’. pealed by the Congress. The section-by- ated states. By contrast, in 1980, non- The report found that: section analysis of the committee re- U.S. citizen residents for the entire The Department of Labor and Immi- port on the Covenant provides in part: Northern Marianas totaled only 3,753 of gration ‘‘does not have the capacity, SECTION 503.—This section deals with cer- whom 1,593 were citizens of the freely nor is it likely to develop one, to tain laws of the United States which are not associated states and only 2,160 came prescreen applicants for entry prior to now applicable to the Northern Mariana Is- from outside Micronesia. There is also their arrival on Commonwealth of the lands and provides that they will remain in- a significant population of illegal Northern Mariana Islands territory.’’ applicable except in the manner and to the aliens with estimates ranging from This leads to the situation of the extent that they are made applicable by spe- 3,000 to as high as 7,000 illegal aliens. Bangladeshi workers who arrive and cific legislation enacted after the termi- Whatever the number, with the ex- find there is no work as well as to the nation of the Trusteeship. These laws are: The Immigration and Naturalization Laws ception of those from Micronesia, none entry of those with criminal or other (subsection (a)). The reason this provision is of these almost 40,000 persons entered disqualifying records. Federal law en- included is to cope with the problems which under United States law and none has forcement officials are mentioned as

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S361 not providing information to the Com- ally will be able to bring their imme- Mr. President, this is a situation that monwealth of the Northern Mariana Is- diate families into the United States. should never have been allowed to lands due to concerns over security and There is an increasing number of births occur. This is not a matter of local corruption. to non-citizen mothers. In 1985, of 675 self-government. The control of borders The levels of immigration led to de- births, 260 were to non-citizen mothers. and the conditions for entry, work, res- pendence on government employment While the number of U.S. citizen moth- idence, and citizenship in the United or benefits for U.S. residents (since ers remained relatively constant, the States are federal matters. No one cheap foreign labor was available even number of non-citizen mothers in- should ever have expected the Northern creased to 581 by 1990, 701 in 1991, 859 in for specialized trades such as account- Marianas to replicate the resources and 1992, and continued around 900–1000 ants, doctors, and managers) and capability of the federal government, younger residents having to leave to with the exception of 1,409 in 1996. For that year, total births were 1,890 with and in fact we did not. As our com- find work. The report also noted that mittee noted in its report on the Cov- those on welfare could still hire domes- the percentage of U.S. citizen mothers enant, by the time the Trusteeship tics. at 25 percent. While some of the pre- The economy is unsustainable be- sumed non-citizen mothers are likely ended, we anticipated that federal im- cause there will be no advantage for to be married to Commonwealth of the migration laws would be extended. We the garment industry when the multi- Northern Mariana Islands residents, didn’t do that and permitted this situa- fibre agreement comes into force in others are not, and all entered outside tion to occur. With the exception of 2005. My colleagues should note that of federal immigration laws. The result American Samoa, the federal govern- the perception that the garment indus- is that there is an increasing number of ment conducts those activities try presence in the Commonwealth of persons obtaining U.S. citizenship out- throughout the United States. We have the Northern Mariana Islands is tem- side the boundaries of U.S. immigra- allowed the creation of a country with- porary is also shared by others. In Sep- tion and naturalization laws. There are in a country where the majority of the tember 1997, the Bank of Hawaii con- also incidental effects on various fed- workforce are denied political and civil cluded that the presence of the gar- eral programs, such as education, that rights. the children and their immediate rel- ment industry was a result of ‘‘a Neither do I accept the argument unique and temporary comparative atives will be eligible for. To the extent that the current Com- that economic development is incon- economic advantage’’ and that the monwealth of the Northern Mariana Is- sistent with the application of federal Commonwealth of the Northern Mar- lands immigration system results in immigration laws. With the exception iana Islands should begin to plan for a structural unemployment among resi- of American Samoa, all other areas of ‘‘transition to an exclusively tourism- dent U.S. citizens, there are also ef- the United States are under federal im- driven economy’’. The Bank of Hawaii fects on federal programs providing as- migration law. I can assure my col- repeated that conclusion in its Octo- sistance to the poor. In addition, in re- leagues that the constraints on eco- ber, 1999 report. cent years, the Commonwealth of the nomic development in Alaska are not Foreign workers are exploited with Northern Mariana Islands has doubled found in federal immigration law. Nei- retaliation against protestors, failure its public sector employment to absorb ther has federal immigration law been of the Commonwealth of the Northern local workers. Public sector wages now Mariana Islands government to pros- an impediment to the development of represent the largest component of the economies in the Virgin Islands, Puer- ecute, unreliable bonding companies, local budget. Unless the Common- exorbitant recruitment fees, suppres- to Rico, or Guam. If those areas are wealth of the Northern Mariana Islands not fully to the levels of Stateside sion of basic freedoms, and flagrant takes action to develop or open private abuses of household workers, agricul- economies, they are nonetheless all sector employment for U.S. residents, self-supporting without the need for tural workers, and bar girls. it will have a difficult time reducing annual appropriations for government The Commonwealth of the Northern its workforce. The recent downturn in support. The Northern Marianas has a Mariana Islands has entered into agree- the Asian economy has hit the Com- tourism industry and the opportunity ments with the Philippines and China monwealth of the Northern Mariana Is- over State objections dealing with lands hard and the Commonwealth of for it to expand. There are other oppor- trade and immigration. the Northern Mariana Islands is facing tunities that should be explored, and The Commonwealth of the Northern a significant deficit without the ability this legislation contains provisions to Mariana Islands has no asylum policy to trim its workforce. If layoffs are in- assist the Commonwealth government or procedure placing the U.S. in viola- evitable, it is likely that local and fed- in exploring those options. tion of international obligations. eral assistance costs will escalate. Comments have been made that this The temporary guest worker for per- Concerns have also arisen over the legislation will destroy the garment in- manent jobs creates major policy prob- use of the Northern Marianas for im- dustry. That is simply not true unless lems as well as creating a two class portation and transhipment of drugs. the industry is adverse to having work- system where the majority of workers The June 17 Marianas Variety reported ers who either are or could become are denied political and social rights. the Finance Department’s Division of United States citizens. In addition, In the U.S. proper, such workers would Customs to have confiscated over $2.5 even the Governor in his testimony be admitted for residence and could be- million of crystal methamphetamine in said that the garment industry in come citizens. Worse, the children of 1998 with an increasing number of drug Saipan was temporary and that they these workers are U.S. citizens. The arrests. A related concern raised by the needed to begin to transit to a new children of foreign mothers now ac- administration has been the ability of economy. The Bank of Hawaii has count for 16 percent of U.S. citizens. the Commonwealth of the Northern twice cautioned that the peculiar cir- The presence of a large alien popu- Mariana Islands to exclude individuals, lation in the Commonwealth of the especially members of organized crime cumstances that provide an economic Northern Mariana Islands is not simply from Japan and China. The Common- advantage in the Marianas will dis- a matter of local concern. Although wealth of the Northern Mariana Islands appear shortly. As the Governor stated, temporary workers admitted into the does not have a data base to screen im- we need to begin the transition now. Commonwealth of the Northern Mar- migrants, and accomplishes most of its This legislation will have only a minor iana Islands may not enter the United screening on arrival. The federal gov- effect on the garment industry. The States and their presence in the Com- ernment, however, for those countries legislation does not go into effect for a monwealth of the Northern Mariana Is- that require visas, does its screening in year. All contract workers on island lands does not constitute residence for the foreign country. Federal law en- can remain for two years or the length the purpose of obtaining U.S. citizen- forcement agencies have cited security of their contract, whichever is less. ship, that is not true for their children. concerns as a major impediment to There is a program to provide permits Persons born in the Commonwealth of sharing information with the Common- for temporary alien workers that will the Northern Mariana Islands obtain wealth of the Northern Mariana Islands gradually be reduced and eliminated by U.S. citizenship by birth and eventu- government. December 31, 2009. All of this extends

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S362 CONGRESSIONAL RECORD — SENATE February 7, 2000 well past the time that every legiti- to work with the College of the North- United States citizens and they can not mate analysis of the Marianas econ- ern Marianas and the Secretary of enter any other part of the United omy indicates that the garment indus- Commerce. States. They are trapped. If the Mari- try will have relocated or severely con- A specific requirement has been in- anas responds, as it did, to limit the tracted. cluded for the federal government to length of stay for those workers, then Mr. President, I will list some of the promote the Northern Marianas as a businesses suffer because they can not changes that we made in this legisla- tourist destination. retain trained workers and the workers tion to address concerns over the effect Numerous technical and other themselves suffer. of the imposition of federal immigra- changes have been made in response to This is a situation that should never tion laws. I have already mentioned the comments that we received, mainly have been allowed to occur. We allowed the special grandfather provision in- to ensure full and complete consulta- it to happen, partially through a mis- cluded as a result of Lynn Knight’s tion with local officials as this legisla- placed idea that we were enhancing concern over the status of current em- tion is implemented. local self-government. We now need to ployees. These concerns were raised by I want the record to reflect that I be- act to formally bring the Northern the Chamber of Commerce or the rep- lieve that this Governor has attempted Marianas under the federal system as a resentatives of the Commonwealth gov- to deal with the allegations of worker part of the United States. We need to ernment—the Governor, the President abuse that have occurred in the North- let them devote their resources to local of the Senate, the Speaker of the ern Marianas. I think the garment in- concerns rather than having then at- House, and the Resident Representa- dustry has also acted to improve condi- tempt to replicate federal responsibil- tive. tions and practices, at least to min- ities. We need to make the transition The legislation limited post-transi- imum federal requirement. After all, as smooth as possible and we need to tion relief to only the hotel industry. that is an industry that shipped over $1 act to strengthen and diversify the That has been expanded to include not billion worth of garments into the local economy. This legislation as re- only legitimate businesses throughout United States customs territory last ported unanimously from the Com- the tourism industry, but all other le- year. By virtue of the exemption from mittee on Energy and Natural Re- gitimate businesses in the Common- tariffs, they avoided over $200 million sources will do that. It should be en- wealth; in tariffs. Cleaning up conditions is a acted promptly. A new statement of policy to guide minor price to pay for that subsidy. Mr. President, the effort we are implementation has been inserted that Not all problems, however, are capable about to proceed with today is a result makes clear that the transition from a of resolution. The system where work- of a recognition that, indeed, there non-resident contract worker program ers are on temporary contract and sub- simply has to be a change in the immi- is to be orderly and that potential ad- ject to deportation creates a climate gration situation with regard to Saipan verse effects are to be minimized; where abuse can occur. Since the work- and the other islands of the Mariana Is- An explicit recognition of local self- ers have no right to remain in the Mar- lands as a consequence of an effort that government has been added together ianas, their ability to complain is lim- began many years ago to encourage de- with more detailed requirements for ited. If they have significant recruit- velopment. But clearly the situation consultation with local officials and ment or other fees to repay, they are ran away with itself over a period of consideration of their views as well as effectively indentured. time when the immigration system a straightforward statement that fun- The ability of the Northern Marianas just got beyond the management capa- damental policy decisions regarding government to respond is also limited. bility of the islands. the direction and pace of economic de- In response to the exploitation of I have had an opportunity to work velopment and growth will be made by workers from Bangladesh who paid with Senator AKAKA on this legisla- local officials and not dictated by the large recruitment fees for non-existent tion. I know how sensitive he is be- federal government; jobs, the Marianas could only ban the cause a good deal of his constituency Although the legislation limits the importation of workers from that area extends a little further out than the ability of the Attorney General to pro- for those jobs. The exploiters simply Hawaiian Islands into the CNMI. My vide additional extension of the tem- moved to Nepal. When the Governor constituency in Alaska does not quite porary worker program to two five- tried to limit workers from China to extend that far. Nevertheless, as chair- year periods for legitimate businesses deal with repatriation problems, how- man of the committee, I have the re- in the tourism industry and for a single ever, those industries relying on easy sponsibility to try to bring about cor- five-year period for other legitimate access to those workers quickly rective action. Through the efforts of businesses, it also requires the Attor- brought enough pressure to reverse the Senator AKAKA and his staff and with ney General to notify the Congress of decision. Efforts to limit the number of the help of Senator BINGAMAN and the the reasons for the extension and alien workers become more and more professional staff of the committee, I whether we should consider providing difficult as the Marianas government think we have been able to achieve additional authority for further exten- becomes increasingly dependent on that in this legislation. sions; those businesses importing those work- With the concurrence of Senator A detailed technical assistance pro- ers for the revenues to provide jobs in AKAKA, I will proceed with the charts. gram is included to assist in the transi- the public sector. Senator AKAKA is very prominent in tion and to broaden and strengthen the Asking the Northern Marianas gov- some of the charts we are going to be local economy. In addition to existing ernment to assume and adequately im- presenting. In some cases I assume he authorities and programs, the Sec- plement and enforce an immigration has not seen these pictures yet. I am retary of Commerce is provided $200,000 program within the framework of fed- not suggesting either one of us is par- in matching grants to assist in the de- eral policy is simply setting them up. ticularly photogenic, but we have liv- velopment and implementation of a A central element of federal policy is ing proof we were there on the ground process to diversify and strengthen the that permanent jobs are to be filled by and saw the situation as it really does local economy. The Secretary is to permanent workers—persons who may exist. consult not only with local officials, live and reside in the United States, The first chart I am going to show is but also with local businesses and re- and in the case of aliens, who have the a little bit of what has happened over a gional banks and other experts. The ability to eventually become citizens period of time in the CNMI. It is a Secretary of Labor is provided an addi- and full members of the political, so- chart of population by citizenship. tional $300,000 in matching grants to cial, and economic community. The On the chart, the lower area is the provide technical and other support for Marianas does not have that ability. If growth in the number of U.S. citizens. the training, recruitment, and hiring of they allow foreign workers to remain That is in blue. You will see back in persons authorized to work in the indefinitely, local businesses—such as 1980 it was somewhere in the area of United States to fill jobs in the Com- Lynn Knight’s—will prosper. However 14,000 or thereabouts. In the upper area monwealth. In addition to local offi- the workers will not obtain civil and is the growth in the number of aliens. cials and businesses, the Secretary is political rights. They may not become Those aliens are primarily Chinese

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S363 women coming in and working in the idea of the work. This is a pile of red, that is pretty difficult to do. There are garment business. They come in under what we call gaucho sports shirts. those in China who recruit, if you will, a contract for 2 or 3 years. Their living There is quite a pile of them. On the and what they get paid to buy a Chi- conditions leave a little bit to be de- next table, there is another pile. It nese woman who wants to come over sired, but I will go into that a little goes right on down the line. and work is anybody’s guess. There later. These women, virtually without ex- seems to be an unlimited supply as I do want my colleagues to under- ception, are young women who have these women go back and, in many stand, though, that as we look at the come over from China on a contract cases, of course, they have saved a good difference in the number of U.S. citi- working at these sewing machines and deal of the money they have made; oth- zens over a period of time from 1980 to putting these garments together. These ers perhaps are not so lucky. In any 1999, the growth of that group is rel- are the general types of working condi- event, we saw other exceptions that atively modest. But if we look, from tions and the building. were not quite as pleasant. 1980 to 1999, at the growth in the num- Behind this working area is their liv- This is a picture of Senator AKAKA ber of non-U.S. citizens, we see phe- ing quarters. The living quarters are and me in front of what really was a nomenal growth. That is a result of pretty rough. We went into some of hovel. This is behind one of the major these workers coming in and working them. There are four to six women in hotels, the Hyatt hotel. There were a in sweatshops in a way we would cer- one room. The beds look like little series of shacks. This is a gentleman tainly not allow anywhere in the more than an enlarged children’s crib. from Bangladesh. He was hired to be a United States. On the other hand, one has to wonder security guard. We found an area where The population of the Mariana Is- what kind of conditions they would or- there was no water, no sewer, no elec- lands, as I indicated, was about 15,000 dinarily be living in in China. One has tricity. They were heating inside on a in 1976 when the covenant was ap- to bear that in mind. kerosene stove. The concern he had is proved. As of July 1999, that figure has This gentleman in red—a different he had not been paid. He had been now risen to close to 80,000, as the color T-shirt than the pile of shirts—is given checks by his employer, and chart shows. Senator AKAKA. I am wearing a blue T- those checks had been returned for In 1978, 78 percent of the population shirt. We were going through this fac- nonsufficient funds. He had three tory. were U.S. citizens. By 1990, that figure checks. Notice that many of the women do went down to 47 percent. By 1999, in He said: What am I to do? I work, I not look up from their machines or Saipan where most of the population am paid, but the checks are no good. I even look at strangers, which surprised resides, that figure was down to 42 per- go to the Federal Government rep- us. I assume they were told to work, cent. resentatives on the island, and they are keep their heads down, and mind their With the exception of about 4,000 so burdened down with requests such as own business. Nevertheless, this gives residents from the freely associated this that they can’t do anything for some idea of what is inside one of the states in Micronesia, there were over me; I don’t have enough money to go garment factories. 41,000 aliens who entered this portion There is a barbed wire fence around back to my country. What am I to do? of the United States outside of our con- the barracks where the women live. It These are people who, obviously, ventional Federal immigration laws is certainly fair to say we would not thought they were given an oppor- because the immigration laws were want to live in those conditions. It was tunity for a better lifestyle. Clearly, controlled by the island. hot. There was air circulating. once they arrived there, they found In February of 1996, Senator AKAKA I have another picture. Obviously, I themselves helpless. and I, accompanied by a very out- had a big dinner that day, so I will not This is the exception, not the rule. standing group of our professional staff reflect at any great length on that. But there are enough of the exceptions who are with me today, went to visit These are the shirts that are going into to suggest there is little means for the islands. Let me give you a little re- various markets in the United States. these people to seek relief, to go to port on what we found. We were not The extraordinary thing I found is that their employer, and get paid: Run the looking for a situation that suggested right at the factory where the gar- check through again next week and the immigration was out of control. ments are put together, not only are maybe there will be money to cover. But in our visit there, and in followup the price tags put on but the encoded That is a pretty tough set of cir- on reports, we did find worker abuse tag one finds on the garment at sale is cumstances under the American flag. and other problems associated with im- put on. When we looked at these labels, I refer to another chart on the make- migration and labor. we saw the May Company, we saw up of the CNMI population by citizen- We had an extensive and productive Hecht’s, and a number of noted com- ship. If one looks closely at the chart series of meetings during our brief mercial department stores in the and the growth of populations in the visit. We had an opportunity to meet United States. Mariana Islands, one will note the with the Governor. We were briefed by We found they had a red dot on the growth rate for U.S. citizens began to his various departments on how they other sale items on the garments made rise in roughly 1990. The blue bar is were attempting to deal with this situ- in Saipan. Not only are they tagged U.S. citizens, and the red bar is the ation. We met with law enforcement of- with the price and the store to which growth of non-U.S. citizens. ficials and representatives from the they are going, but this label says There is a ready explanation. If my Department of Labor and other agen- ‘‘Made in America,’’ and these are colleagues will recall, many of the cies. We met with Federal District made in America because, clearly, alien contract workers are young Court Judge Munson, a very capable Saipan is a territory of the United women. I have another chart, and this Federal judge, and the U.S. attorneys States. They go in duty free. is a chart on infant births. Again, if for the area. We met with the leader- Also, these are young women, and one looks at the blue from 1985 to 1998, ship of the legislature. We met with this has certain consequences for both one sees the births by mothers’ nation- various groups, including the Chamber the Mariana Islands and the U.S. Fed- ality. The blue represents U.S. citizens of Commerce and others. eral Government which I am going to and the red is non-U.S. citizens. In 1985, We also visited around the island. We mention shortly. of 675 live births, 260 were to noncitizen visited garment factories. We met with What has attracted this industry, of mothers. While the number of citizen the workers who heard we were on the course, is the availability of workers mothers remains fairly consistent, the island and wanted to convey their con- who come from China on a 3-year con- number of noncitizen mothers rose to cern. Without notice, we met with tract, and they work very hard. It is a 581 in 1990, 701 in 1991, 859 in 1992, and some of the Bangladeshi security piecemeal-type work. As a con- then continues around 900 to 1,000 guards. Let me show you what we saw. sequence, when their turn is to leave, thereafter. The exception was 1996 Here we are, actually visiting one of why, there are others who are waiting when there were 1,409 recorded live the garment factories. to come in under contract as well. births to noncitizen mothers. Fully 75 A picture cannot capture the atmos- We tried to find out terms and condi- percent of all births were to noncitizen phere, but my colleagues can get some tions under which they were hired, but mothers.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S364 CONGRESSIONAL RECORD — SENATE February 7, 2000 One might ask: Why are you spending The Governor, when we were over One effect of that approach, however, so much time on this statistic? For there, noted, and in his testimony later is to frustrate the ability of the em- those who thought these alien contract expressed, he was trying to trim the ployers to recruit, train, and hire per- workers were only temporary and only level of government but that it was dif- sonnel. From my experience, I can per- presented a challenge for the Northern ficult. sonally testify that the last thing any Mariana Islands, reconsider for a mo- Salaries and related expenses con- employer wants to do is commit re- ment because every one of these chil- sume over half the budget of the Mari- sources to training individuals only to dren is a U.S. citizen because that child anas. They have a carryover deficit of have them leave for other employment. was born in the United States. As a about $70 million, I might add. Even It is far worse when the Government consequence, at some point in time, with the growth of the private sector says your most valuable employees not undoubtedly, they will come to the to absorb local residents seeking em- only must leave your employ but must United States—either stay in the Mar- ployment, it is simply not enough. also leave the country as well. Let’s look at Saipan’s unemployment iana Islands or go back to China with The president of the Saipan Chamber rate by citizenship. This chart shows the mother and then reenter the of Commerce, Lynn Knight, noted that the unemployment rate by citizenship United States at a later time because she had one employee who had been from 1980. Again, the blue represents that child is a U.S. citizen. with her firm for several years and That is a significant obligation that U.S. citizens. The red represents non- would have to leave while another the United States picks up when it al- U.S. citizens. As you can see, in 1980, skilled professional could remain since lows this type of immigration—young after approval of the covenant but be- he was a U.S. citizen. Similar situa- women coming into these sweatshops, fore the trusteeship ended and the Mar- tions are likely in other businesses, working for a couple of years, and ianas fully took over immigration, the and I would expect especially in the many of them becoming pregnant and unemployment rate for U.S. citizens tourism industry. those children becoming U.S. citizens. was 3 percent. Some of the women are likely married By 1990, as immigration began to ac- To deal with that problem, the com- to U.S. citizens. celerate and businesses found you mittee has included a special provi- We do not know the circumstances of could hire foreign labor on short-term sion—this is the new section 6(j) to the all, except for one fact, and that fact is contracts, the rate climbed to 5.5 per- Covenant Act—that provides a one- that each of them entered on to U.S. cent. By 1995, even with the significant time grandfather provision for long- soil outside of our immigration system. expansion of the public sector, the rate term employees in legitimate busi- They did not come through our immi- soared to 13.3 percent. nesses. The provision would allow em- gration system, but they became U.S. As you may recall, the use of alien ployers to sponsor current employees citizens anyway. workers was also rising. Now we have who have been employed for 5 years or I have another chart, and this is a 12.6 percent unemployment. more. chart of employment by private and I do not know how the Governor If the alien is otherwise eligible for public sectors. I think it is important plans to trim the public-sector work- admission to the United States, that that we recognize what we are looking force with that level of unemployment employee may be granted an immi- for U.S. citizens, but we wish him well. at. grant visa or have his status adjusted I know he is very serious about trying What has this economic boom that to a person lawfully admitted for per- to deal with unemployment and the has occurred on the islands and access manent residence without regard to size of the government. This is one of to alien workers at low wages really any numerical limitations in the Im- the results, however, of the current im- meant? One thing it has meant is a migration Act. steady growth in employment. migration system. I think this chart is illuminating. As What Senator AKAKA and I are pro- This provision would ensure that for you can see, in the public sector, vir- posing is legislation that is bipartisan. those businesses that have long-term tually all the jobs have gone to U.S. It has the support of the administra- employees and want to retain them, citizens. This is the public sector in tion. As Senator BINGAMAN noted, it this legislation would mean nothing blue. What is the public sector? The was reported out of the committee more than their employees would ob- public sector is government. That is unanimously. We attempted to address tain green cards and be authorized to where the U.S. citizens have found every legitimate concern that the Gov- work in the United States. I thank the their jobs. ernor, the Resident Representative, the chamber and Ms. Knight for high- Many of the aliens are in the medical Speaker of the House, and the Presi- lighting this situation because I think and health field. But most of the pri- dent of the Senate from the Marianas this provision will go a long way to vate-sector jobs go to the aliens. The raised. ease the transition for legitimate busi- aliens, of course, are shown on the We also met with the business com- nesses. chart in red as non-U.S. citizens. That munity and other leaders. Throughout, Briefly, I will list some of the other is where the growth has been in the the general approach was to simply op- changes Senator AKAKA and I made private sector. pose the legislation. As a consequence, through the hearing process to try to You probably would not be surprised what we have done is try to make address and accommodate the local to know there is a significant dif- changes to deal with concerns that concerns of the people there. One is ference in wages. were raised by those I have mentioned. that the legislation limited The July 1999 data I have from the Let me briefly go through some of posttransition relief to only the hotel Marianas Department of Commerce the changes that are in the committee industry. That has been expanded to provides mean-wage data for various amendment. include not only legitimate businesses sectors of the local economy. First is the grandfathering for exist- throughout the tourism industry but For nondurable goods manufacturing, ing long-term workers. all other legitimate businesses in the One criticism of the current situa- mean wages were about $2.51 per hour Commonwealth as well. in 1980, $2.94 in 1990, and $2.33 in 1995. tion in the Marianas is that workers For the same period, in restaurants, can remain for extended periods—in ef- Further, a new statement of policy to mean wages were $2.17 in 1980, $3.84 in fect, workers in permanent jobs—and guide implementation has been in- 1990, and $3.80 in 1995. therefore they have no political or civil serted that makes clear that the tran- For the public sector, however, mean rights. sition from a nonresident contract wages were $4.03 in 1980, $9.20 in 1990, Unlike the United States, the Mari- worker program is to be orderly and and $11.81 in 1995. anas cannot provide for workers to that potential adverse effects are to be You can see the variance, where the eventually become citizens and enter minimized. higher wages are in the public sector. the community. To respond to that An explicit recognition of local self- What has happened is that the public complaint, the Marianas have enacted government has been added together sector has been forced to expand to laws to require all aliens to leave the with more detailed requirements for provide jobs for local residents and in- Commonwealth after a certain time- consultation with local officials and crease the level of wages. frame. consideration of their views.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S365 We have included a straightforward The General Counsel for the INS tes- Mr. FEINGOLD. Mr. President, I rise statement, at the request of the Gov- tified in strong support of this legisla- today because I share the concern of ernor, that fundamental policy deci- tion. I appreciate the technical assist- many of my colleagues about the situa- sions regarding the direction and pace ance of their personnel and the provi- tion in the Commonwealth of the of economic development and growth sions and material they have provided Northern Mariana Islands. I especially will be made by local officials and not us. thank my colleagues from Alaska and dictated by the Federal Government. It is probably appropriate to con- Hawaii for their leadership, and I am Although the legislation limits the clude with a few comments on the posi- very glad this legislation is before us. ability of the Attorney General to pro- tion of some in the opposition, includ- Allegations of human trafficking, vide additional extension of the tem- ing control over borders and the condi- grossly sub-standard working condi- porary worker program to two 5-year tions to enter the United States, work tions, deceitful recruitment practices, periods for legitimate businesses in the and reside, and become a citizen. Some even indentured servitude, must be tourism industry and for a single 5- suggest these are matters of Federal, taken seriously—particularly when year period for other legitimate busi- not local, law. Well, this is not a mat- these practices are alleged to occur on nesses, it also requires the Attorney ter of local self-government. In fact, by American soil. General to notify the Congress of the requiring the Marianas to develop and I also rise to highlight some very rel- reasons for the extension and whether implement an immigration system, we evant issues about which I am deeply we should consider providing addi- diverted important resources they concerned. As we consider the case of tional authority for further extensions. could have dedicated to important the CNMI, we must recognize that A detailed technical assistance pro- matters of local concern, and seriously there are other examples of this kind of gram is included to assist in the trans- harmed local self-government. international exploitation, and that action and to broaden and strengthen Neither do I nor others believe the such practices often find their roots in the local economy. Marianas cannot have a healthy and di- organized crime syndicates that span In addition to existing authorities versified economy under Federal immi- boundaries, and patterns of corruption and programs, the Secretary of Com- gration laws. They certainly can. The that cross borders. merce is provided $200,000 in matching islands of the Marianas have the phys- In fact, according to a report issued grants to assist in the development and ical and human resources for tourism, by the nongovernmental organization, implementation of a process to diver- as well as the geographic location for the Global Survival Network, on the sify and strengthen the local economy. other activities and businesses. We situation in the CNMI, The Secretary is to consult not only have provided in this bill the training . . . organized crime groups from the Peo- with local officials but also with local and other assistance we think the Mar- ple’s Republic of China, South Asia, and businesses, regional banks, and other ianas will need. Japan reap large profits from human traf- experts. Now the Secretary of Labor is Yes, there will be some changes, but ficking. Chinese provincial government involved. He is to provide an additional in the long run, they will be for the agencies reportedly collude with Chinese $300,000 in matching grants to provide better for all the residents of the Mari- traffickers by pocketing a percentage of technical and other support for the passport fees paid by Chinese immigrants. anas, and we will not have under the Chinese criminal groups have moved part of training, recruitment, and hiring of U.S. flag the sweatshop conditions that their operations to the CNMI, where they op- persons authorized to work in the exist there today. The only losers will erate significant gambling and money-lend- United States to fill jobs in the Com- be those who made their fortunes by ing operations. Japanese organized crime monwealth. In addition to local offi- exploiting the situation and exploiting groups also operate in Saipan, where they cials and businesses, the Secretary is the workers from China who live in control a large part of the sex tourism sec- to work with the College of the North- conditions that are absolutely unsuit- tor. ern Marianas and the Secretary of able and unacceptable under the Amer- Let this be a wake-up call for all of Commerce. ican flag. It is not a healthy economy us—international crime is an increas- A specific requirement has been in- when employment is 13 percent for ingly disturbing problem, and it is not cluded for the Federal Government to local residents, and the only job oppor- something that happens only in other promote the Northern Marianas as a tunities seem to be in the area of local parts of the world. This is an issue that tourist destination. The resident rep- government. The current system is de- I intend to work on in the months resentative, Juan Babauta, was very nying opportunities to the youth of the ahead. forceful in advocating the need for as- Marianas and will force them to leave According to NGO estimates, be- sistance to diversify and strengthen home for Guam or other areas to ob- tween 1 million and 2 million women the local economy and provide training tain work. are trafficked each year for the pur- for the workers even absent the legisla- In conclusion, I particularly and per- poses of forced prostitution, many of tion. Although he and other officials sonally thank Senator AKAKA, who has them from Russia and other parts of oppose the legislation, I thank him and been such a strong advocate of reform Eastern Europe and Central Asia. In the others for their concerns. I think and has patiently worked with us to 1998, the FBI indicated that, of the they are well founded, and we have make this a better bill. I urge my col- Russian crime cases they had inves- sought to try and deal with them. leagues to adopt the committee amend- tigated abroad, 55 percent involved I am not going to go into all the rea- ment and the legislation. Again, I rec- fraud, 22 percent money laundering, sons why this legislation is needed. I ognize my good friend Senator AKAKA, and the rest murder, extortion, and the think they were fully laid out in the who is prepared to make an opening smuggling of people, arms, and drugs. committee hearings and in our com- statement at this time. These kinds of activities are global mittee report. I do not ever want to see I yield the floor to Senator AKAKA. phenomenon, and the United States is a situation where I have to convene a The PRESIDING OFFICER. The Sen- not immune to these forces. closed hearing and hear from a young ator from Hawaii. Members of this body are all too fa- lady who is forced to endure what this Mr. AKAKA. Mr. President, I extend miliar with the role of Colombian and particular young lady, coming over my appreciation to our chairman, Sen- Nigerian criminal organizations in the from China, was forced to endure. The ator MURKOWSKI, for all he has done. drug trade that casts a shadow over price of local control over Federal He has given an extraordinary and ac- virtually every American community functions should not be measured in curate and descriptive report of our today—including my own hometown. lost childhood and innocence. visit to CNMI. I will follow with some We have all been alarmed by last I am not fully happy with how deter- remarks. year’s revelations about the laundering mined Federal law enforcement per- At this time, I yield to my friend of Russian money through U.S. banks. sonnel are, but I am encouraged by the from Wisconsin, Senator FEINGOLD, for Recent reports indicate that Poland is inclusion of funding in their budgets his remarks, to be recognized after he overwhelmed in its efforts to combat for the first time because they have has concluded. money laundering schemes—many of been working under extraordinary cir- The PRESIDING OFFICER. The Sen- which have an international compo- cumstances of inadequate funds. ator from Wisconsin. nent.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S366 CONGRESSIONAL RECORD — SENATE February 7, 2000 In fact, some 170 Polish gangs have ule to debate legislation that affects a Foreign workers pay up to $7,000 to ties with criminal groups abroad. Too distant island community with a popu- employers or middlemen for the right often, money-laundering schemes en- lation of only 70,000 people?’’ You to a job in the CNMI. When they finally tail the buying-off of corrupt officials, might ask, ‘‘Why don’t we work on reach the Commonwealth, they are as- creating a cycle of complicity that un- other important legislation, such as signed to tedious, low paying work for dermines the rule of law, stability, and nuclear waste policy, judicial nomina- long hours with little or no time off. At the very legitimacy of government tions, or health care for our armed night they are locked in prison-like itself. forces?’’ barracks. Few would dispute the fact that cor- The answer to these questions is that If they complain, they are subject to ruption played a role in the Asian fi- conditions in the Commonwealth of the immediate deportation at the whim of nancial crisis of 1997 and 1998, or that it Northern Mariana are an affront to their employer. hampers political, social, and economic democratic values. The answer is that Some arrive in the islands only to development throughout a region that the CNMI immigration system has find that they were victims of an em- I care deeply about—sub-Saharan Afri- sparked international protests from ployment scam. There are no jobs wait- ca, a region where international crime our Pacific allies. ing for them, and no way to work off and corruption often go hand-in-hand. Immigration in the Commonwealth their bondage debt. The GAO has reported that Americans violates fundamental standards of mo- Concern about the CNMI’s long- lose up to $2 billion per year to Afri- rality and human decency. That’s why standing immigration problems has can-based white collar crime syn- we must pass the reform measure pend- historically been bipartisan. In fact, of- dicates. In Angola and Sierra Leone, ing in the Senate. ficials in the Reagan administration corruption fuels the trade in illicit dia- Chairman MURKOWSKI is a long- first sounded the alarm about the run- monds, which in turn finances brutally standing champion of CNMI immigra- away immigration policies that the violent conflicts. There can be no tion reform. Commonwealth adopted. He is the only Senator in recent doubt that international crime and The administration of every Presi- memory to visit the Commonwealth, corruption are critical security issues dent in the past 16 years—the Reagan, where he witnessed the profound prob- and economic issues—but there can Bush, and Clinton administrations— lems caused by their local immigration has consistently criticized the Com- also be no doubt that they are human law. rights issues, and social development I doubt that many of my colleagues monwealth’s immigration policy. Bipartisan studies have also con- issues as well. know very much about the CNMI, a demned CNMI Immigration. These patterns will increasingly have U.S. Island territory located 1,500 miles The Commission on Immigration Re- an impact on the lives of Americans in south of Tokyo. this new century, and the manner in Those Senators who are familiar with form called the CNMI system of immi- which we respond will determine, in the territory have probably read the gration and indentured labor ‘‘anti- part, the degree to which all people of growing number of articles on the im- thetical to American values.’’ Accord- all nations can achieve a better life in migration and labor abuse in the Com- ing to the Commission, no democratic the years ahead. monwealth. Yet only Chairman MUR- society has an immigration policy like Mr. President, I intend to look more KOWSKI has visited the islands to get a the CNMI. closely at these trends in international first-hand understanding of their prob- The closest equivalent is Kuwait, crime and corruption in the months lems. I joined him on his tour of the where foreign workers constitute a ma- ahead. CNMI in February of 1996. jority of the workforce and suffer harsh I yield the floor. The statement that was made by the and discriminatory treatment by the The PRESIDING OFFICER (Ms. COL- chairman on what we saw there, as I citizen population. LINS). The Senator from Hawaii is rec- said, is accurate and very descriptive. For this reason, the CNMI has also ognized. It was a shame to see that a part of the become an international embarrass- Mr. AKAKA. Madam President, I United States is living under those ment for the United States. thank my friend from the State of Wis- conditions. We have received complaints from consin for his statement. I also thank The legislation before us won’t cor- the Philippines, Nepal, Sri Lanka, and him for saying what he felt about the rect all of the Commonwealth’s prob- Bangladesh about immigration abuse CNMI. lems, but it will address the most sig- and the treatment of workers. They I express my gratitude to the major- nificant concern, immigration abuse. failure of the Commonwealth to reform ity leader for scheduling this bill today Chairman MURKOWSKI is a man of the its immigration system has seriously and also the Democratic leader for sup- Pacific who understands the need to tarnished our image in the region. porting it. I look forward to working have an immigration policy that re- Concerns about the CNMI are not out this bill with my friend, the chair- flects America values. new. Perhaps we should be criticized man, Senator MURKOWSKI. The states we represent, Alaska and for not acting sooner. Yet, despite a 14- As we begin today’s debate, I want to Hawaii, are closest to our Pacific year effort by the Reagan, Bush, and express my sincere thanks to the lead- neighbors, and we recognize the need to Clinton administrations to persuade ership of the Committee on Energy and respond to problems that generate the CNMI to correct immigration prob- Natural Resources for their commit- strong protests from other Pacific na- lems, the problems persist. ment to CNMI immigration reform. tions. I am honored to join him as a co- After 14 years of waiting for the Com- The Senator from Alaska, Chairman sponsor of S. 1052, legislation to reform monwealth to implement reform, it is MURKOWSKI, and the Senator from New immigration abuses in the CNMI. time for Congress to act. Statistics on Mexico, Senator BINGAMAN, understand When the CNMI became a U.S. com- Commonwealth immigration provide that a great injustice is taking place monwealth in 1976, Congress granted it compelling evidence of the need for re- far from the Nation’s Capitol. That is local control over immigration at the form. why they have brought this legislation request of island leaders. This means Twenty years ago, the CNMI had a to the Senate floor. Their efforts prove that the Immigration and Nationality population of 15,000 citizens and 2,000 that they live by the words of one of Act does not apply in the CNMI. We alien workers. our Senate titans, Daniel Webster, who now know this decision was a great Today, the citizen population stands proclaimed justice the ‘‘great interest mistake. at 28,000, but the alien worker popu- of man on earth.’’ Using its immigration authority, the lation has mushroomed to 42,000. Perhaps some Senators, and many Commonwealth has created a planta- That’s a 2,000 percent increase. viewers who are watching these pro- tion economy that relies upon whole- The Immigration and Naturalization ceedings in the gallery or on television, sale importation of low-paid, short- Service reports that the CNMI has no are wondering, ‘‘Why is the United term indentured workers. Indentured reliable records of aliens entering the States Senate—that great deliberative servitude, a practice outlawed in the Commonwealth, how long they remain, body in the world’s strongest democ- United States over 100 years ago, had and when, if ever, they depart. One racy—taking time from its busy sched- resurfaced in the CNMI. CNMI official testified that they have

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S367 ‘‘no effective control’’ over immigra- With that in mind, I have asked Sec- internal structure. In short, the Super Hor- tion in their islands. retary Cohen to delay his production net and the original Hornet are two com- The CNMI shares the American flag, decision until he reviews a GAO audit pletely different aircraft despite their simi- lar appearance. but it does not share our immigration of the Super Hornet program’s Oper- Though the deception worked, the new air- system. When the Commonwealth be- ational Evaluation. craft—the Super Hornet—does not. Because came a territory of the United States, I will read an opinion-editorial by it was never prototyped—at the Navy’s in- we allowed them to write their own im- Lieutenant Colonel Jay Stout, a high- sistence—its faults were not evident until migration laws. ly-regarded, active duty Marine fighter production aircraft rolled out of the factory. After twenty years of experience, the pilot of the F/A–18C, and combat vet- Among the problems the aircraft experienced CNMI immigration experiment has eran. The Virginian-Pilot published his was the publicized phenomenon of ‘‘wing failed. opinions this past December. drop’’—a spurious, uncommanded roll, which occurred in the heart of the aircraft’s per- Conditions in the CNMI prompt the Rear Admiral J.B. Nathman, the formance envelope. After a great deal of neg- question whether the U.S. should oper- Navy’s director of air warfare, wrote ative press, the Super Hornet team devised a ate a unified immigration system, or the requisite, tired response, with a lit- ‘‘band-aid’’ fix that mitigated the problem at whether a U.S. territory should be al- tle personal invective thrown in. the expense of performance tradeoffs in lowed to establish laws in conflict with A subsequent piece by James Steven- other regimes of flight. Regardless, the rede- national immigration policy. son, a well-known aviation writer, re- signed wing is a mish-mash of aerodynamic Common sense tells us that a unified buts each of Admiral Nathman’s argu- compromises which does nothing well. And system is the only answer. If Puerto ments. I will read Stevenson’s letter, the Super Hornet’s wing drop problem is minor compared to other shortfalls. First, Rico, or Hawaii, or Arizona, or Okla- as well. the aircraft is slow—slower than most fight- homa could write their own immigra- I will read the article by Mr. Stout, ers fielded since the early 1960s. In that one tion laws—and give work visas to for- and I ask unanimous consent that two of the most oft-uttered maxims of the fighter eigners—our national immigration sys- other articles, plus a December 13, 1999, pilot fraternity is that ‘‘Speed is Life,’’ this tem would be in chaos. article from Business Week be printed deficiency is alarming. America is one country. We need a in the RECORD at the conclusion of my But the Super Hornet’s wheezing perform- uniform immigration system, not one remarks. ance against the speed clock isn’t its only system for the 50 states and another The PRESIDING OFFICER. Without flaw. If speed is indeed life, then maneuver- ability is the reason that life is worth living system for one of our territories. objection, it is so ordered. for the fighter pilot. In a dog fight, superior I don’t represent the CNMI, but the (See Exhibit 1.) maneuverability allows a pilot to bring his Commonwealth is Hawaii’s backyard. I Mr. FEINGOLD. The first article is weapons to bear against the enemy. With its speak as a friend and neighbor when I Mr. Stout’s piece from the Virginian- heavy, aerodynamically compromised air- say that this policy cannot continue. Pilot entitled, ‘‘The Navy’s Super frame, and inadequate engines, the Super The CNMI system of indentured immi- Fighter Is A Super Failure.’’ Hornet won’t win many dogfights. Indeed, it grant labor is morally wrong, and vio- The article reads as follows: can be outmaneuvered by nearly every front- line fighter fielded today. lates basic democratic principles. I am a fighter pilot. I love fighter aircraft. ‘‘But the Super Hornet isn’t just a fight- We hope that our colleagues will hear But even though my service—I am a Ma- er,’’ its proponents will counter. ‘‘It is a our voices and will join us in passing S. rine—doesn’t have a dog in the fight, it is bomber as well.’’ True, the new aircraft car- 1052. difficult to watch the grotesquerie that is ries more bombs than the current F/A–18— I yield the floor. I suggest the ab- the procurement of the Navy’s new strike- but not dramatically more, or dramatically sence of a quorum. fighter, the F/A–18 E/F Super Hornet. further. The engineering can be studied, but Billed as the Navy’s strike-fighter of the The PRESIDING OFFICER. The the laws of physics don’t change for any- future, the F/A–18 E/F is instead an expen- one—certainly not the Navy. From the be- clerk will call the roll. sive failure—a travesty of subterfuge and The legislative clerk proceeded to ginning, the aircraft was incapable of doing poor leadership. Intended to overcome any what the Navy wanted. And they knew it. call the roll. potential adversaries during the next 20 The Navy doesn’t appear to be worried Mr. FEINGOLD. Madam President, I years, the aircraft is instead outperformed about the performance shortfalls of the ask unanimous consent that the order by a number of already operational air- Super Hornet. The aircraft is supposed to be for the quorum call be rescinded. craft—including the fighter it is scheduled to so full of technological wizardry that the The PRESIDING OFFICER. Without replace, the original F/A–18 Hornet. enemy will be overwhelmed by its superior The Super Hornet concept was spawned in objection, it is so ordered. weapons. That is the same argument that 1992, in part, as a replacement for the 30 was used prior to the Vietnam War. This Mr. FEINGOLD. I ask unanimous year-old A–6 Intruder medium bomber. consent to speak as in morning busi- logic fell flat when our large, expensive Though it had provided yeoman service since fighters—the most sophisticated in the ness. the early 1960s, the A–6 was aging and on its world—started falling to peasants flying sim- The PRESIDING OFFICER. Without way to retirement by the end of the Gulf War ple aircraft designed during the Korean con- objection, it is so ordered. in 1991. The Navy earlier tried to develop a flict. replacement during the 1980s—the A–12—but f Further drawing into question the Navy’s bungled the project so badly that the whole position that flight performance is secondary THE NAVY SUPER HORNET mess was scrapped in 1991. The A–12 fiasco to the technological sophistication of the PROGRAM cost the taxpayers $5 billion and cost the aircraft, are the Air Forces’ specifications Navy what little reputation it had as a serv- Mr. FEINGOLD. Mr. President, I for its new—albeit expensive—fighter, the F– ice that could wisely spend taxpayer dollars. 22. The Air Force has ensured that the F–22 have been a long-time critic of the Nevertheless, the requirement for an A–6 has top-notch flight performance, as well as Navy’s F/A–18 E/F Super Hornet pro- replacement remains. Without an aircraft a weapons suite second to none. It truly has gram. For years, I have come to the with a longer range and greater payload than no rivals in the foreseeable future. floor to highlight this program’s short- the current F/A–18, the Navy lost much of its The Super Hornet’s shortcomings have comings, and I have offered bills to kill offensive punch. Consequently it turned to been borne out anecdotally. There are nu- the program and amendments to try to the original F/A–18—a combat-proven per- merous stories, but one episode sums it up achieve greater scrutiny over the pro- former, but a short-ranged light bomber nicely. Said one crew member who flew a when compared to the A–6. Still stinging gram. Sometimes my colleagues have standard Hornet alongside new Super Hor- from the A–12 debacle, the Navy tried to nets: ‘‘We outran them, we out-flew them, agreed with me, and more often than ‘‘put one over’’ on Congress by passing off a and we ran them out of gas. I was embar- not, they have not on this particular completely redesigned aircraft—the Super rassed for those pilots.’’ These shortcomings issue. I understand that, in all prob- Hornet—as simply a modification of the are tacitly acknowledged around the fleet ability, the Super Hornet program will original Hornet. where the aircraft is referred to as the get its final green light this spring, and The obfuscation worked. Many in Congress ‘‘Super-Slow Hornet.’’ it will go into full-rate production. were fooled into believing that the new air- What about the rank-and-file Navy fliers? However, I will continue to fight for craft was just what the Navy told them it What are they told when they question the was—a modified Hornet. In fact, the new air- Super Hornet’s shortcomings? The standard responsible defense spending and con- plane is much larger—built that way to reply is, ‘‘Climb aboard, sit down, and shut tinue to try to enlighten my colleagues carry more fuel and bombs—is much dif- up. This is our fighter, and you’re going to about this inferior, unnecessary, and ferent aerodynamically, has new engines and make it work.’’ Can there be any wondering expensive program. engine intakes and a completely reworked at the widespread disgust with the Navy’s

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S368 CONGRESSIONAL RECORD — SENATE February 7, 2000 leadership and the hemorrhaging exodus of readily available factual information.’’ From five times more combat effective than any its fliers? what we have seen, even those charged with other naval aircraft in the inventory. Unfortunately, much of the damage has oversight—our congressmen—cannot obtain The author’s unfounded assertions with re- been done. Billions of dollars have been spent ‘‘readily available factual information.’’ gard to performance are simply not borne on the Super Hornet that could have been Stout got his information from sources that out by the facts and do not reflect the per- spent on maintaining or upgrading the are more reliable than the CNO’s commu- formance of the combat-ready Super Hornet. Navy’s current fleet of aircraft. Instead, un- nication with Congress. acceptable numbers of aircraft are sidelined If Stout had continued his investigation, Naval Aviation has made tough but sound for want of money to buy spare parts. Para- he would have learned that far from pushing choices with the Super Hornet program. doxically, much of what the Navy wanted in ‘‘current technology to its limit,’’ the Navy Some trade-offs are inevitable and appro- the Super Hornet could have been obtained, will give future naval aviation—for twice the priate, particularly in an austere defense at a fraction of the cost, by upgrading the program unit cost—an airplane that, below budget climate, but this aircraft answers the current aircraft—what the Navy said it was 20,000 feet with pylons on, cannot fly super- Navy’s needs. going to do at the beginning of this mess. sonic. There is some question as to whether The F/A–18E/F is an outstanding invest- Our military’s aircraft acquisition pro- this fact is included within the ‘‘readily ment for the American taxpayer and will gram cannot afford all the proposed acquisi- available’’ information of which Nathman serve as a model for future Navy programs tions. Some hard decisions will have to be spoke. and procurement. The Super Hornet is being made. The Super Hornet decision, at a sav- Madam President, that is the re- delivered on time, on budget and is at the ings of billions of dollars, should be an easy heart of naval aviation’s ability to fight and one. sponse of James Stevenson to the win in the 21st Century. Navy’s letter questioning Lt. Col. Jay Again, what I have just been reading In the final analysis, hard fact—not innu- Stout’s comments. I offer these as evi- for several minutes is an op-ed from Lt. endo, anecdote or rumor—will establish the dence that we are about to embark on Col. Jay Stout, somebody who actually operational supremacy of this aircraft. By an F/A–18E and F airplane that, frank- knows this airplane well. every measure, Boeing and the Navy’s new Now I would like to read a brief let- ly, after having been looked at for sev- Hornet are indeed super. The aircraft is in ter that rebuts Admiral Nathman’s let- eral years, at best is not better than great shape as it completes final evaluation. ter, which was in response to Lt. Col. the current plane, and probably is Because the Virginian-Pilot is read by Jay Stout’s piece. worse, and is enormously more expen- thousands of men and women in the naval In his response to Lt. Col. Jay sive than continuing with the FA–18C aviation community, both active-duty and and D plane. retired, I felt it was my responsibility to re- Stout’s Dec. 15 op-ed criticism of the spond to a column riddled with inaccuracies. F–18E Super Hornet, Rear Adm. John EXHIBIT 1 Nathman accused Stout (letter, Dec. [From the Virginian-Pilot, Dec. 23, 1999] [From Business Week, Dec. 13, 1999] LOOK AT THE FACTS: THE NAVY’S NEW HORNET 23) of ‘‘unfounded assertions.’’ THE (NOT SO) SUPER HORNET—WHY THE NAVY IS SUPER INDEED What this letter then says is: IS SPENDING BILLIONS ON A FIGHTER JET Nathman claimed that the F–18E has com- (By Rear Admiral J.B. Nathman) WITH FLAWS THAT COSTS TWICE AS MUCH AS pleted ‘‘the most rigorous and scrutinized It is healthy to bring opposing views for- ITS PREDECESSOR process of procurement, acquisition and ward in open and honest discussion. Unfortu- evaluation in recent Department of Defense nately, this was not the case in a Dec. 15 op- (By Stan Crock) and naval history.’’ On the contrary, the F– ed column on the F–18E/F Super Hornet. Pentagon analyst Frnaklin C. Spinney re- 18E was initially rejected by the Navy and (‘‘The Navy’s super fighter is a super fail- members the conversation with crystal clar- only rushed into the budget at the last ure’’). This article was apparently written ity. Over dinner with a Marine flier in late minute when the A–12 was canceled. without checking some readily available fac- 1991, talk turned to Navy plans for a new In the fall of 1990, the Navy re-examined its tual information. version of the F–18 Hornet. Earlier in the requirements for a deep strike aircraft. It As the one responsible for establishing year, the Pentagon had killed the new A–12 dismissed the F–18E as unacceptable in both naval aviation requirements, I can set the bomber. Other Navy planes were decades old. range and stealth. As to stealth, it concluded record straight with regard to the perform- And the service thought existing F/A–18s that ordnance hanging under the F–18E ance and warfighting capabilities of the couldn’t fly long-range missions. To fill car- would provide too good a target on radar. Super Hornet. I would also like to speak for rier decks, the Navy decided to rely on an When then Defense Secretary Richard Che- the thousands of individuals, both military upgrade of the F–18 used by the fabled Blue ney canceled the A–12, the Navy pushed the and civilian, whose efforts were involved in Angels. ‘‘We’ve got to have this even if it F–18E onto center stage, ignoring regula- bringing the Super Hornet’s warfighting ca- doesn’t work,’’ the pilot confided. tions that required a new design number for pability to our Naval Air Force. ‘‘major design changes within the same mis- The F–18E/F Super Hornet has just com- How prophetic. On Nov. 16, the F/A–18E/F sion category.’’ Instead, the Navy gave the pleted the most rigorous and scrutinized Super Hornet finished operational-evalua- new aircraft a new series letter, to make this process of procurement, acquisition and tion flights, the last step before full produc- new aircraft appear as a mere modification. evaluation in recent Department of Defense tion, set for this spring. And Congress in The Navy did this to avoid approximately 25 and naval history. Going into the final eval- September approved a five-year, $9 billion specific oversight steps. uation process, the Super Hornet met or ex- authorization for the fighter-attack aircraft, In so doing, the Navy insured that the F– ceeded every established performance mile- which will cost $47 billion through 2010. But 18E would avoid, from its inception, the stone. The Super Hornet was designed from by many accounts, the $53 million-a-copy ‘‘scrutinized process of procurement, acquisi- Day One to be a decisive strike-fighter, plane is only slightly better than its prede- tion and evaluation,’’ about which Nathman equipped to handle the threats and win in to- cessor, the F/A–18C/D (table, page 136), which wrote. day’s environment and for the foreseeable fu- costs half as much. And the E/F’s flying per- The Navy’s attempt to minimize oversight ture. formance ‘‘is almost unambiguously a step extended to the Congress. The Navy flight Achieving this goal required years of plan- backward,’’ says Spinney. test director, in October 1996 and March 1997, ning and pushed current technology to its As a debate rages on Capitol Hill over thee issued two F–18E deficiency reports. In spite limits to obtain the most combat ‘‘bang for Pentagon’s ambitious plans to buy three new of these reports, the Chief of Naval Oper- the buck’’ for the US Navy and American aircraft for an astounding $340 billion over ations wrote four months later to the chair- taxpayer. As compared to the current model the next three decades, Boeing Co.’s Super man of the Senate National Security Com- F–18, proven enhancements include: Hornet has managed to fly under the radar mittee as follows: 40 percent increase in mission combat ra- with political, if not technological, stealth. The F/A–18 E/F has flawlessly progressed dius. The saga of how it has done so shows just through every required milestone to include 50 percent increase in combat on-station how hard it will be to kill off any of the operational requirements, mission needs, time. three: the Super Hornet, the Air Force’s F–22 cost and threat analysis, and engine develop- Three times the carrier recovery payload— Raptor, and the Joint Strike Fighter. The ment . . . Testing results have clearly ex- safer carrier operations for our pilots. ingredients of the F/A–18E/F’s tale include a ceeded all specific performance parameters. Improved survivability, lethality and Navy anxious not to cede missions to the Air Rear Adm. Nathman states that the F–18E greater penetration into the enemy’s battle Force, an ailing defense contractor, and law- has 40 percent more range. Such a statement space. makers looking to preserve defense jobs. is misleading. In 1993, the Navy admitted Growth potential for future combat en- The Pentagon and Boeing staunchly defend that under the same conditions and weapons hancements and mission requirements. the program. The E/F won a Pentagon award loads, the promised range of the F–18E was In today’s environment, the calculus of in 1996 for excellence in engineering and de- between 15 and 19 percent less than the origi- combat effectiveness is much more than just velopment. And supporters note it’s on nal F–18A specification. speed. With its superb combat maneuver- It remains for Nathman to provide evi- ability, radar and weapons systems, impres- schedule and under budget. Says Patrick J. dence that the F–18E’s performance is now sive suite of electronic countermeasures, Finneran, Boeing’s F–18 czar: ‘‘This thing greater than its 1993 promise. ability to withstand greater combat damage gets gold stars.’’ Finally, Nathman complained that Stout and increased fuel capacity, the Super Hor- The General Accounting Office, Congress’ wrote his article ‘‘without checking some net is not only more survivable but three to watchdog agency, begs to differ. It noted in

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S369 a June, 1999, report that as full production The Navy also says the E/F will have 17 that following the debate time, the bill neared, the plane had 84 deficiencies, includ- cubic feet more room for high-tech gear than be read for a third time and passed, and ing radar that couldn’t tell the direction of the C/D. But the GAO found only 5.46 cubic the motion to reconsider be laid upon oncoming threats. It recommended—in feet were usable—and that nearly every up- the table. vain—that Congress reject a multiyear com- grade could be installed on the C/D. And the mitment to the program. Critics say one rea- Navy claims that the Super Hornet performs The PRESIDING OFFICER. Without son for the Super Hornet’s woes is that the a crucial function better than the C/D: Re- objection, it is so ordered. Navy dubbed the E/F a modification of its C/ turning to a carrier with unusual munitions. AMENDMENT NO. 2807 D predecessor. That was true even though But critics say it would be cheaper to dump the E/F has a different wing, fuselage, and the bombs in the ocean than to pay $30 mil- (Purpose: To clarify that visas and admis- engine, and is 25% heavier. About 85% of the lion extra for the E/F. sions under the legislation are not to be counted against numerical limitations in wing and airframe components are different Boeing’s Finneran disputes the GAO’s find- the Immigration and Nationality Act, and from those of the F/A–18C/D, according to an ings. He says recent tests show the planes for other purposes) analysis by the Cato Institute, a conserv- have exceeded range goals, and he rejects the ative think tank. All of this led some experts notion that the C/D has the space to be up- Mr. MURKOWSKI. Madam President, to say it’s a new aircraft. graded. Still, looking at the broad picture, on behalf of Senator AKAKA and myself, Reeling. But a new plane would have been former National Security Adviser Brent I send a series of amendments to the harder to sell to Congress and wouldn’t have Scowcraft would kill the program because been exempt from some lengthy procurement committee substitute to the desk and the E/F ‘‘has the least modernization’’ of the ask that they be considered. requirements. Most important, St. Louis- three new planes under development. based McDonnell Douglas Corp., the F–18’s The Super Hornet has plenty of support on The PRESIDING OFFICER. The builder, would not have been guaranteed the Capitol Hill, though. When a House National clerk will report the amendment. work. At the time, McDonnell Douglas, Security subcommittee threatened funding The legislative clerk read as follows: which Boeing acquired in 1997, was reeling for the program in 1996, House Minority from cost overruns on other programs and The Senator from Alaska [Mr. MURKOWSKI] Leader Richard A. Gephardt of Missouri the A–12’s termination. for himself and Mr. AKAKA, proposes an called every Democrat on the full com- The shorter procurement process for a amendment numbered 2807. mittee. Representative Jim Talent (R-Mo.) modification meant McDonnell Douglas collard his GOP brethren. The funding cuts Mr. MURKOWSKI. Madam President, didn’t have to build a prototype to help iron were restored. Even GOP Presidential hope- our kinks. The risks from this approach be- I ask unanimous consent that reading ful Senator John McCain, who often attacks came apparent in March, 1996, during the of the amendment be dispensed with. Super Hornet’s seventh test flight. The plane Pentagon waste, backs the program. The PRESIDING OFFICER. Without suddenly started to roll as it approached su- The upshot? The Navy will get its plane, objection, it is so ordered. regardless of how it works. But Marine pilots personic speed. A blue-ribbon panel said in a The amendment is as follows: Jan. 14, 1998, report that the wing-drop phe- won’t fly it. They’re waiting for the stealthy nomenon ‘‘could put flight safety at risk.’’ Joint Strike Fighter, slated for production On page 29, line 20–21, strike ‘‘regard to’’ And the flaw would make it tough for pilots around 2008. ‘‘If we were going to spend dol- and insert ‘‘counting against’’. to track enemy aircraft. lars, we wanted to spend them on something On page 34, lines 7–8, strike ‘‘to be made The Navy downplays the issue, saying wing that was a leap in technology,’’ says recently available during the following fiscal year’’ drops had cropped up—and been solved—in retired General Charles C. Krulak, a former and insert ‘‘that will not count against the previous programs. But fixing the problem Marine commandant who opted not to buy numerical limitations’’. proved difficult. One solution—a new wing the Super Hornet. Indeed, Marine pilots’ On page 34, strike line 15 and all that fol- covering—caused yet another problem: vi- fears now are quite different from those lows through page 35, line 4. Spinney heard in 1991. ‘‘If the Joint Strike brations so severe that pilots had trouble On page 34, strike ‘‘(C)’’ and insert ‘‘(B)’’. reading the display. Fighter dies,’’ frets one airman, ‘‘we’re stuck with the Super Hornet.’’ On page 35, strike line 20 and all that fol- Another shrewd Navy ploy was to lower lows through page 36, line 18. the bar for performance standards. When the WORDS OF WARNING On page 36, strike ‘‘(E)’’ and insert ‘‘(C)’’. Navy brass debated whether the E/F should Official Evaluation—The Operational Test be required to turn, climb, accelerate, and On page 37, strike line 3 and all that fol- and Evaluation Force ‘‘may find the F/A–18E/ maneuver better than the C/D version, Vice lows through page 38, line 9. Admiral Dennis V. McGinn, then the head of F not operationally effective/suitable even On page 38, strike line 10 and all that fol- naval air warfare, rejected all but accelera- though all specification requirements are lows through line 24. tion. A good thing, too, because the E/F satisfied’’ Translation—This plane may have On page 39, line 1, strike ‘‘(I)’’ and insert doesn’t perform so well in the other areas. In plenty of problems even if it meets our specs. ‘‘(D)’’. a Jan. 19, 1999, memo, Phillip E. Coyle, a top Official Evaluation—How to mitigate the On page 40, line 6, strike ‘‘and reviewable’’. problem: ‘‘aggressive indoctrination of oper- Defense Dept. weapon systems evaluator, On page 41, lines 3–6, strike ‘‘The deter- ational community to help them match ex- says such Russian fighters as the Su-27 and mination as to whether a further extension pectation to reality of F/A–18E/F.’’ Trans- Mig-9 ‘‘can accelerate faster and out-turn all is required shall not be reviewable.’’. variants of the F/A–18 in most operating re- lation—We oversold this plane and now need to lower pilots expectations. On page 41, lines 20–21, strike ‘‘The deci- gimes.’’ The memo says while that’s the sion by the Attorney General shall not be re- price for more payload and range, the Navy Mr. FEINGOLD. I yield the floor and viewable.’’. plans to use air-combat tactics that won’t suggest the absence of a quorum. require the capabilities of the earlier F/A–18 On page 42, lines 6–7, strike ‘‘The deter- models. The PRESIDING OFFICER. The mination by the Attorney General shall not Despite efforts to compensate for short- clerk will call the roll. be reviewable.’’. comings, a July, 1997, report by an advisory The legislative clerk proceeded to On page 45, line 16, strike line 16 and all board of Pentagon and contractor represent- call the roll. that follows through page 46, line 10. atives warned that evaluators may find the Mr. MURKOWSKI. Madam President, On page 46, line 11, strike ‘‘(h)’’ and insert (g)’’. plane ‘‘not operationally effective’’ even if it I ask unanimous consent that the order meets all requirements. One solution pro- On page 46, line 20, strike ‘‘(i)’’ and insert posed: ‘‘aggressive indoctrination of oper- for the quorum call be rescinded. ‘‘(h)’’. ational community to help them match ex- The PRESIDING OFFICER. Without On page 47, line 3, strike ‘‘(j)’’ and insert pectation to reality of F/A–18E/F.’’ Trans- objection, it is so ordered. ‘‘(i)’’. lation: Lower pilots’ expectations. f On page 47, line 9, strike ‘‘regard to’’ and Early on, one of the Super Hornet’s key insert ‘‘counting against’’. selling points was a project that the plane NORTHERN MARIANA ISLANDS On page 47, line 14, strike ‘‘(C) through would fly 40% farther than its predecessor. COVENANT IMPLEMENTATION (H)’’ and insert ‘‘(B) and (C)’’. But the longer-range figure assumed that ACT—Continued On page 48, line 5, strike ‘‘five-year’’ and 80% of the fleet would be one-seater planes. insert ‘‘five-year’’ and insert ‘‘four-year’’. One-seaters carry more fuel than two-seaters Mr. MURKOWSKI. Madam President, On page 48, line 9, strike ‘‘5-year’’ and in- and thus can fly farther. But now the Navy I ask unanimous consent that there be wants just 55% of the fleet to be one-seaters. sert ‘‘four-year’’. 1 hour for debate, equally divided, with On page 48, line 18, strike ‘‘five years’’ and While this lets it replace the ancient F–15 respect to S. 1052; and, further, no Tomcat—a two-seater—it undercuts the insert ‘‘four years’’. longer-range promises. In actual perform- amendments or motions be in order On page 48, strike line 23 and all that fol- ance, the one-seater shows a range of 444 other than the committee substitute lows through page 49, line 4. nautical miles, only 20% above the older F/ and one technical amendment offered On page 49, line 5, strike ‘‘(3)’’ and insert A–18C’s 369-mile range, the GAO says. by the chairman. I finally ask consent ‘‘(2)’’.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S370 CONGRESSIONAL RECORD — SENATE February 7, 2000 On page 49, line 10, strike ‘‘(4)’’ and insert I thank the Chair and yield back the and growth of the Commonwealth of the ‘‘(3)’’. remainder of my time. Northern Mariana Islands, consistent with On page 49, between lines 21 and 22, insert The PRESIDING OFFICER. The Sen- the fundamental national values underlying the following new subsection: ator from Alaska. Federal immigration policy. ‘‘(K) STATUTORY CONSTRUCTION.—Nothing Mr. MURKOWSKI. Madam President, SEC. 2. IMMIGRATION REFORM FOR THE COM- in this section may be construed to count MONWEALTH OF THE NORTHERN the issuance of any visa to an alien, or the before we go into morning business, I MARIANA ISLANDS. grant of any admission of an alien, under alert my colleagues that tomorrow, at (a) AMENDMENTS TO ACT APPROVING THE this section toward any numerical limitation approximately 11 o’clock, we will be COVENANT TO ESTABLISH A COMMONWEALTH contained in the Immigration and Nation- taking up the nuclear waste bill. Sen- OF THE NORTHERN MARIANA ISLANDS IN POLIT- ality Act.’’. ator BINGAMAN and I have worked hard, ICAL UNION WITH THE UNITED STATES OF Mr. MURKOWSKI. I ask unanimous as well as our staffs, to try to bring AMERICA.—Public Law 94–241 (90 Stat. 263), as consent the amendment be agreed to. this to some conclusion. I put all of my amended, is further amended by adding at the end thereof the following: The PRESIDING OFFICER. Without colleagues on notice that, unfortu- objection, it is so ordered. The amend- nately, tomorrow’s debate will not be ‘‘SEC. 6. IMMIGRATION AND TRANSITION. ‘‘(a) APPLICATION OF THE IMMIGRATION AND ment is agreed to. as expeditious as the debate today. NATIONALITY ACT AND ESTABLISHMENT OF A The amendment (No. 2807) was agreed Hopefully, we will have resolve that. TRANSITION PROGRAM.—Effective on the first to. The PRESIDING OFFICER. If the day of the first full month commencing one Mr. MURKOWSKI. I yield back any Senator will withhold, the committee year after the date of enactment of the time to my good friend, Senator amendment, as amended, is agreed to. Northern Mariana Islands Covenant Imple- AKAKA. The bill (S. 1052) was ordered to be mentation Act (hereafter the ‘‘transition Mr. AKAKA. Madam President, I rise engrossed for a third reading, was read program effective date’’), the provisions of to add a bit to my statement. In my the third time, and passed, as follows: the Immigration and Nationality Act, as statement, I mentioned that Senator amended (8 U.S.C. 1101 et seq.) shall apply to S. 1052 the Commonwealth of the Northern Mariana MURKOWSKI was the only Senator who Be it enacted by the Senate and House of Rep- Islands: Provided, That there shall be a tran- went to CNMI. But Senator HARKIN resentatives of the United States of America in sition period ending December 31, 2009 (ex- also went to CNMI in August. Congress assembled, cept for subsection (d)(2)(D)), following the The PRESIDING OFFICER. Is all SECTION 1. SHORT TITLE AND PURPOSE. transition program effective date, during time yielded back? (a) SHORT TITLE.—This Act may be cited as which the Attorney General of the United Mr. AKAKA. I yield back my time. the ‘‘Northern Mariana Islands Covenant Im- States (hereafter ‘‘Attorney General’’), in Mr. MURKOWSKI. Madam President, plementation Act’’. consultation with the United States Secre- how much time is remaining? (b) STATEMENT OF PURPOSE.—In recogni- taries of State, Labor, and the Interior, shall The PRESIDING OFFICER. Fifty- tion of the need to ensure uniform adherence establish, administer, and enforce a transi- nine minutes is remaining. to long-standing fundamental immigration tion program for immigration to the Com- policies of the United States, it is the inten- monwealth of the Northern Mariana Islands Mr. MURKOWSKI. Madam President, tion of Congress in enacting this legisla- provided in subsections (b), (c), (d), (e), (f), we yield back all time. tion— and (i) of this section (hereafter the ‘‘transi- I thank Senator BINGAMAN and his (1) to ensure effective immigration control tion program’’). The transition program staff, minority staff of the Energy and by extending the Immigration and Nation- shall be implemented pursuant to regula- Natural Resources Committee, for ality Act, as amended (8 U.S.C. 1101 et seq.), tions to be promulgated as appropriate by their work in this regard and, of in full to the Commonwealth of the Northern each agency having responsibilities under course, my good friend, Senator Mariana Islands, with special provisions to the transition program. allow for the orderly phasing-out of the non- ‘‘(b) EXEMPTION FROM NUMERICAL LIMITA- AKAKA, and his staff. resident contract worker program of the TIONS FOR H–2B TEMPORARY WORKERS.—An I thank specifically David Garman, Commonwealth of the Northern Mariana Is- alien, if otherwise qualified, may seek ad- my legislative director; Kira Finkler, lands, and the orderly phasing-in of Federal mission to the Commonwealth of the North- who has been working with the minor- responsibilities over immigration in the ern Mariana Islands as a temporary worker ity on this; Chuck Kleeschulte, David Commonwealth of the Northern Mariana Is- under section 101(a)(15)(H)(ii)(B) of the Immi- Dye, Sam Fowler, and Andrew lands; gration and Nationality Act (8 U.S.C. Lundquist; a former staffer of mine, (2) to minimize, to the greatest extent pos- 1101(a)(15)(H)(ii)(B)) without counting Deanna Okun, who has taken a position sible, potential adverse effects this orderly against the numerical limitations set forth with the Federal International Trade phase-out might have on the economy of the in section 214(g) of such Act (8 U.S.C. Commonwealth of the Northern Mariana Is- 1184(g)). Commission. There are others who lands by: ‘‘(c) TEMPORARY ALIEN WORKERS.—The have worked long and hard to bring (A) encouraging diversification and growth transition program shall conform to the fol- about this much-needed change with of the economy of the Commonwealth of the lowing requirements with respect to tem- regard to immigration in the Marianas, Northern Mariana Islands consistent with porary alien workers who would otherwise but particularly Senator AKAKA’s ef- fundamental values underlying Federal im- not be eligible for nonimmigrant classifica- forts over an extended period of time to migration policy; tion under the Immigration and Nationality clearly right a wrong. I think this leg- (B) recognizing local self-government, as Act: islation has achieved that today. I provided for in the Covenant to Establish a ‘‘(1) Aliens admitted under this subsection Commonwealth of the Northern Mariana Is- shall be treated as nonimmigrants under sec- commend my good friend. lands in Political Union with the United tion 101(a)(15) of the Immigration and Na- The PRESIDING OFFICER. The Sen- States of America through consultation with tionality Act (8 U.S.C. 1101(a)(15)), including ator from Hawaii. the Governor and other elected officials of the ability to apply, if otherwise eligible, for Mr. AKAKA. Madam President, I the Government of the Commonwealth of the a change of nonimmigrant classification thank Chairman MURKOWSKI, who has Northern Mariana Islands by Federal agen- under section 248 of such Act (8 U.S.C. 1258), done a great job in shepherding and cies and by considering the views and rec- or adjustment of status, if eligible therefor, crafting this bill and bringing it to the ommendations of such officials in the imple- under this section and section 245 of such Act floor of the Senate. This has been a mentation and enforcement of Federal law (8 U.S.C. 1255). tough few years because there have by Federal agencies; ‘‘(2)(A) The United States Secretary of (C) assisting the Commonwealth of the Labor shall establish, administer, and en- been some objections along the way. I Northern Mariana Islands to achieve a pro- force a system for allocating and deter- think we are doing it correctly. We are gressively higher standard of living for its mining the number, terms, and conditions of taking care of the concern of embar- citizens through the provision of technical permits to be issued to prospective employ- rassment for the United States that and other assistance; ers for each temporary alien worker who would be faced when we pass this bill. (D) providing opportunities for persons au- would not otherwise be eligible for admission This is a bipartisan bill. The chairman thorized to work in the United States, in- under the Immigration and Nationality Act. has diligently worked, as have staff on cluding lawfully admissible freely associated This system shall provide for a reduction in both sides of the aisle, well to bring us state citizen labor; and the allocation of permits for such workers on (E) ensuring the ability of the locally an annual basis, to zero, over a period not to to this point. I am glad I had a chance elected officials by the Commonwealth of the extend beyond December 31, 2009, and shall to be a part of it and know this is the Northern Mariana Islands to make funda- take into account the number of petitions right thing for our country; that is, for mental policy decisions regarding the direc- granted under subsection (i). In no event us to pass S. 1052 with its amendments. tion and pace of the economic development shall a permit be valid beyond the expiration

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of the transition period. This system may be ‘‘(2) EMPLOYMENT-BASED IMMIGRANT iana Islands if, after the Attorney General based on any reasonable method and criteria VISAS.— consults with the United States Secretary of determined by the United States Secretary ‘‘(A) If the Attorney General, after con- Labor and the Governor of the Common- of Labor to promote the maximum use of, sultation with the United States Secretary wealth of the Northern Mariana Islands, and and to prevent adverse effects on wages and of Labor and the Governor and the leader- local tourism businesses, the Attorney Gen- working conditions of, persons authorized to ship of the Legislature of the Commonwealth eral determines, in the Attorney General’s work in the United States, including law- of the Northern Mariana Islands, finds that sole discretion, that a further extension is fully admissible freely associated state cit- exceptional circumstances exist with respect required to ensure an adequate number of izen labor, taking into consideration the ob- to the inability of employers in the Com- workers for legitimate businesses in the jective of providing as smooth a transition monwealth of the Northern Mariana Islands tourism industry in the Commonwealth of as possible to the full application of federal to obtain sufficient work-authorized labor, the Northern Mariana Islands. law. the Attorney General may establish a spe- ‘‘(ii) The Attorney General, after consulta- ‘‘(B) The United States Secretary of Labor cific number of employment-based immi- tion with the Governor of the Common- is authorized to establish and collect appro- grant visas that will not count against the wealth of the Northern Mariana Islands and priate user fees for the purposes of this sec- numerical limitations under section 203(b) of the United States Secretary of Labor and the tion. Amounts collected pursuant to this sec- the Immigration and Nationality Act (8 United States Secretary of Commerce, may tion shall be deposited in a special fund of U.S.C. 1153(b)). The labor certification re- extend the provisions of this paragraph (d)(2) the Treasury. Such amounts shall be avail- quirements of section 212(a)(5) of the Immi- to legitimate businesses in industries outside able, to the extent and in the amounts as gration and Nationality Act, as amended (8 the tourism industry for a single five year provided in advance in appropriations acts, U.S.C. 1182(a)(5)) shall not apply to an alien period if the Attorney General, in the Attor- for the purposes of administering this sec- seeking immigration benefits under this sub- ney General’s sole discretion, concludes that tion. Such amounts are authorized to be ap- section. such extension is necessary to ensure an ade- propriated to remain available until ex- ‘‘(B) Persons granted employment-based quate number of workers in that industry pended. immigrant visas under the transition pro- and that the industry is important to growth ‘‘(3) The Attorney General shall set the gram may be admitted initially at a port-of- or diversification of the local economy. conditions for admission of nonimmigrant entry in the Commonwealth of the Northern ‘‘(iii) In making his determination for the temporary alien workers under the transi- Mariana Islands, or at a port-of-entry in tourism industry or for industries outside tion program, and the United States Sec- Guam for the purpose of immigrating to the the tourism industry, the Attorney General retary of State shall authorize the issuance Commonwealth of the Northern Mariana Is- shall take into consideration the extent to of nonimmigrant visas for aliens to engage lands, as lawful permanent residents of the which a training and recruitment program in employment only as authorized in this United States. Persons who would otherwise has been implemented to hire persons au- subsection: Provided, That such visas shall be eligible for lawful permanent residence thorized to work in the United States, in- not be valid for admission to the United under the transition program, and who cluding lawfully admissible freely associated States, as defined in section 101(a)(38) of the would otherwise be eligible for an adjust- state citizen labor to work in such industry. Immigration and Nationality Act (8 U.S.C. ment of status, may have their status ad- No additional extension beyond the initial 1101(a)(38)), except the Commonwealth of the justed within the Commonwealth of the five year period may be granted for any in- Northern Mariana Islands. An alien admitted Northern Mariana Islands to that of an alien dustry outside the tourism industry or for to the Commonwealth of the Northern Mar- lawfully admitted for permanent residence. the tourism industry beyond a second exten- iana Islands on the basis of such a non- ‘‘(C) Nothing in this paragraph shall pre- sion. If an extension is granted, the Attorney immigrant visa shall be permitted to engage clude an alien who has obtained lawful per- General shall submit a report to the Com- in employment only as authorized pursuant manent resident status pursuant to this mittee on Energy and Natural Resources of to the transition program. No alien shall be paragraph from applying, if otherwise eligi- the Senate and the Committee on Resources granted nonimmigrant classification or a ble, under this section and under the Immi- of the House of Representatives setting forth visa under this subsection unless the permit gration and Nationality Act for an immi- the reasons for the extension and whether he requirements established under paragraph (2) grant visa or admission as a lawful perma- believes authority for additional extensions have been met. nent resident under the Immigration and Na- should be enacted. ‘‘(4) An alien admitted as a nonimmigrant tionality Act. ‘‘(e) NONIMMIGRANT INVESTOR VISAS.— pursuant to this subsection shall be per- ‘‘(D) SPECIAL PROVISION TO ENSURE ADE- ‘‘(1) Notwithstanding the treaty require- mitted to transfer between employers in the QUATE EMPLOYMENT IN THE TOURISM INDUSTRY ments in section 101(a)(15)(E) of the Immi- Commonwealth of the Northern Mariana Is- AFTER THE TRANSITION PERIOD ENDS.— gration and Nationality Act (8 U.S.C. lands during the period of such alien’s au- ‘‘(i) During 2008, and in 2014 if a five year 1101(a)(15)(E)), the Attorney General may, thorized stay therein, without advance per- extension was granted, the Attorney General upon the application of the alien, classify an mission of the employee’s current or prior and the United States Secretary of Labor alien as a nonimmigrant under section employer, to the extent that such transfer is shall consult with the Governor of the Com- 101(a)(15)(E)(ii) of the Immigration and Na- authorized by the Attorney General in ac- monwealth of the Northern Mariana Islands tionality Act (8 U.S.C. 1101(a)(15)(E)(ii)) if cordance with criteria established by the At- and tourism businesses in the Common- the alien— torney General and the United States Sec- wealth of the Northern Mariana Islands to ‘‘(A) has been admitted to the Common- retary of Labor. ascertain the current and future labor needs wealth of the Northern Mariana Islands in ‘‘(d) IMMIGRANTS.—With the exception of of the tourism industry in the Common- long-term investor status under the immi- immediate relatives (as defined in section wealth of the Northern Mariana Islands, and gration laws of the Commonwealth of the 201(b)(2) of the Immigration and Nationality to determine whether a five-year extension Northern Mariana Islands before the transi- Act (8 U.S.C. 1151(b)(2)) and persons granted of the provisions of this paragraph (d)(2) tion program effective date; an immigrant visa as provided in paragraphs would be necessary to ensure an adequate ‘‘(B) has continuously maintained resi- (1) and (2) of this subsection, no alien shall number of workers for legitimate businesses dence in the Commonwealth of the Northern be granted initial admission as a lawful per- in the tourism industry. For the purpose of Mariana Islands under long-term investor manent resident of the United States at a this section, a business shall not be consid- status; port-of-entry in the Commonwealth of the ered legitimate if it engages directly or indi- ‘‘(C) is otherwise admissible; and Northern Mariana Islands, or a port-of-entry rectly in prostitution or any activity that is ‘‘(D) maintains the investment or invest- in Guam for the purpose of immigrating to illegal under Federal or local law. The deter- ments that formed the basis for such long- the Commonwealth of the Northern Mariana mination of whether a business is legitimate term investor status. Islands. and whether it is sufficiently related to the ‘‘(2) Within 180 days after the transition ‘‘(1) FAMILY-SPONSORED IMMIGRANT VISAS.— tourism industry shall be made by the Attor- program effective date, the Attorney General For any fiscal year during which the transi- ney General in his sole discretion and shall and the United States Secretary of State tion program will be in effect, the Attorney not be reviewable. If the Attorney General shall jointly publish regulations in the Fed- General, after consultation with the Gov- after consultation with the United States eral Register to implement this subsection. ernor and the leadership of the Legislature Secretary of Labor determines, in the Attor- ‘‘(3) The Attorney General shall treat an of the Commonwealth of the Northern Mar- ney General’s sole discretion, that such an alien who meets the requirements of para- iana Islands, and in consultation with appro- extension is necessary to ensure an adequate graph (1) as a nonimmigrant under section priate federal agencies, may establish a spe- number of workers for legitimate businesses 101(a)(15)(E)(ii) of the Immigration and Na- cific number of additional initial admissions in the tourism industry, the Attorney Gen- tionality Act (8 U.S.C. 1101(a)(15)(E)(ii) until as a family-sponsored immigrant at a port- eral shall provide notice by publication in the regulations implementing this sub- of-entry in the Commonwealth of the North- the Federal Register that the provisions of section are published. ern Mariana Islands, or at a port-of-entry in this paragraph will be extended for a five- ‘‘(f) PERSONS LAWFULLY ADMITTED UNDER Guam for the purpose of immigrating to the year period with respect to the tourism in- THE COMMONWEALTH OF THE NORTHERN MAR- Commonwealth of the Northern Mariana Is- dustry only. The Attorney General may au- IANA ISLANDS IMMIGRATION LAW.— lands, pursuant to sections 202 and 203(a) of thorize one further extension of this para- ‘‘(1) No alien who is lawfully present in the the Immigration and Nationality Act (8 graph with respect to the tourism industry Commonwealth of the Northern Mariana Is- U.S.C. 1152 and 1153(a)). in the Commonwealth of the Northern Mar- lands pursuant to the immigration laws of

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S372 CONGRESSIONAL RECORD — SENATE February 7, 2000 the Commonwealth of the Northern Mariana lands for the four-year period immediately full month commencing one year after the Islands on the transition program effective preceding the filing of the petition; date of enactment of the Northern Mariana date shall be removed from the United ‘‘(D) the alien has been employed continu- Islands Covenant Implementation Act. States on the ground that such alien’s pres- ously in that business by the petitioning em- (c) TECHNICAL ASSISTANCE PROGRAM.—The ence in the Commonwealth of the Northern ployer for the four-year period immediately United States Secretaries of Interior and Mariana Islands is in violation of subpara- preceding the filing of the petition; Labor, in consultation with the Governor of graph 212(a)(6)(A) of the Immigration and ‘‘(E) the alien continues to be employed in the Commonwealth of the Northern Mariana Nationality Act, as amended, until comple- that business by the petitioning employer at Islands, shall develop a program of technical tion of the period of the alien’s admission the time the immigrant visa is granted or assistance, including recruitment and train- under the immigration laws of the Common- the alien’s status is adjusted to permanent ing, to aid employers in the Commonwealth wealth of the Northern Mariana Islands, or resident; of the Northern Mariana Islands in securing the second anniversary of the transition pro- ‘‘(F) the petitioner’s business has a reason- employees from among United States au- gram effective date, whichever comes first. able expectation of generating sufficient rev- thorized labor, including lawfully admissible Nothing in this subsection shall be construed enue to continue to employ the alien in that freely associated state citizen labor. In addi- to prevent or limit the removal under sub- business for the succeeding four years; and tion, for the first five fiscal years following the fiscal year when this section is enacted, paragraph 212(a)(6)(A) of such an alien at any ‘‘(G) the alien is otherwise eligible for ad- $500,000 shall be made available from funds time, if the alien entered the Commonwealth mission to the United States under the pro- appropriated to the Secretary of the Interior of the Northern Mariana Islands after the visions of the Immigration and Nationality pursuant to Public Law 104–134 for the Fed- date of enactment of the Northern Mariana Act, as amended (8 U.S.C. 1101, et seq.). eral-CNMI Immigration, Labor and Law En- ‘‘(2) The labor certification requirements Islands Covenant Implementation Act, and forcement Initiative for the following activi- of section 212(a)(5) of the Immigration and the Attorney General has determined that ties: the Government of the Commonwealth of the Nationality Act, as amended (8 U.S.C. (1) $200,000 shall be available to reimburse Northern Mariana Islands violated sub- 1182(a)(5)) shall not apply to an alien seeking the United States Secretary of Commerce for section (f) of such Act. immigration benefits under this subsection. providing additional technical assistance ‘‘(2) Any alien who is lawfully present and ‘‘(3) The fact that an alien is the bene- and other support to the Commonwealth of authorized to be employed in the Common- ficiary of an application for a preference sta- the Northern Mariana Islands to identify op- wealth of the Northern Mariana Islands pur- tus that was filed with the Attorney General portunities for and encourage diversification suant to the immigration laws of the Com- under section 204 of the Immigration and Na- and growth of the Commonwealth economy. monwealth of the Northern Mariana Islands tionality Act, as amended (8 U.S.C. 1154) for The United States Secretary of Commerce on the transition program effective date the purpose of obtaining benefits under this shall consult with the Government of the shall be considered authorized by the Attor- subsection, or has otherwise sought perma- Commonwealth of the Northern Mariana Is- ney General to be employed in the Common- nent residence pursuant to this subsection, lands, local businesses, the United States wealth of the Northern Mariana Islands until shall not render the alien ineligible to obtain Secretary of the Interior, regional banks, the expiration of the alien’s employment au- or maintain the status of a nonimmigrant and other experts in the local economy and thorization under the immigration laws of under this Act or the Immigration and Na- shall assist in the development and imple- the Commonwealth of the Northern Mariana tionality Act, as amended, if the alien is oth- mentation of a process to identify opportuni- Islands, or the second anniversary of the erwise eligible for such nonimmigrant sta- ties for and encourage diversification and transition program effective date, whichever tus.’’. growth of the Commonwealth economy. All comes first. ‘‘(j) STATUTORY CONSTRUCTION.—Nothing in expenditures, other than for the costs of Fed- ‘‘(g) EFFECT ON OTHER LAWS.—The provi- this section may be construed to count the eral personnel, shall require a non-Federal issuance of any visa to an alien, or the grant sions of this section and the Immigration matching contribution of 50 percent and the of any admission of an alien, under this sec- and Nationality Act, as amended by the United States Secretary of Commerce shall tion toward any numerical limitation con- Northern Mariana Islands Covenant Imple- provide a report on activities to the Com- mentation Act, shall, on the transition pro- tained in the Immigration and Nationality mittee on Energy and Natural Resources and gram effective date, supersede and replace Act.’’. the Committee on Appropriations of the Sen- all laws, provisions, or programs of the Com- (b) CONFORMING AMENDMENTS.—(1) Section ate and the Committee on Resources and the monwealth of the Northern Mariana Islands 101(a) of the Immigration and Nationality Committee on Appropriations of the House relating to the admission of aliens and the Act (8 U.S.C. 1101(a)) is amended: removal of aliens from the Commonwealth of (A) in paragraph (36), by deleting ‘‘and the of Representatives by March 1 of each year. the Northern Mariana Islands. Virgin Islands of the United States.’’ and The United States Secretary of Commerce ‘‘(h) ACCRUAL OF TIME FOR PURPOSES OF substituting ‘‘the Virgin Islands of the may supplement the funds provided under SECTION 212(a)(9)(B) OF THE IMMIGRATION AND United States, and the Commonwealth of the this section with other funds and resources NATIONALITY ACT, AS AMENDED.—No time Northern Mariana Islands.’’, and; available to him and shall undertake such that an alien is present in violation of the (B) in paragraph (38), by deleting ‘‘and the other activities, pursuant to existing au- immigration laws of the Commonwealth of Virgin Islands of the United States’’ and sub- thorities of the Department, as he decides the Northern Mariana Islands shall by rea- stituting ‘‘the Virgin Islands of the United will encourage diversification and growth of son of such violation be counted for purposes States, and the Commonwealth of the North- the Commonwealth economy. If the United of the ground of inadmissibility in section ern Mariana Islands.’’. States Secretary of Commerce concludes 212(a)(9)(B) of the Immigration and Nation- (2) Section 212(l) of the Immigration and that additional workers may be needed to ality Act (8 U.S.C. 1182(a)(9)(B)). Nationality Act (8 U.S.C. 1182(l)) is amend- achieve diversification and growth of the ‘‘(i) ONE-TIME GRANDFATHER PROVISION FOR ed— Commonwealth economy, the Secretary CERTAIN LONG-TERM EMPLOYEES.— (A) in paragraph (1)— shall promptly notify the Attorney General ‘‘(1) An alien may be granted an immigrant (i) by striking ‘‘stay on Guam’’, and insert- and the United States Secretary of Labor visa, or have his or her status adjusted in the ing ‘‘stay on Guam or the Commonwealth of and shall also notify the Committee on En- Commonwealth of the Northern Mariana Is- the Northern Mariana Islands’’, ergy and Natural Resources of the Senate lands to that of an alien lawfully admitted (ii) by inserting ‘‘a total of ’’ after ‘‘ex- and the Committee on Resources of the for permanent residence, without counting ceed’’, and House of Representatives of his conclusion against the numerical limitations set forth (iii) by striking the words ‘‘after consulta- with an explanation of how many workers in sections 202 and 203(b) of the Immigration tion with the Governor of Guam,’’ and in- may be needed, over what period of time and Nationality Act, as amended (8 U.S.C. serting ‘‘after respective consultation with such workers will be needed, and what ef- 1152, 1153(b)), and subject to the limiting the Governor of Guam or the Governor of the forts are being undertaken to train and ac- terms and conditions of an alien’s permanent Commonwealth of the Northern Mariana Is- tively recruit and hire persons authorized to residence set forth in paragraphs (B) and (C) lands,’’; work in the United States, including law- of subsection (d)(2), if: (B) in paragraph (1)(A), by striking ‘‘on fully admissible freely associated state cit- ‘‘(A) the alien is employed directly by an Guam’’, and inserting ‘‘on Guam or the Com- izen labor to work in such businesses. employer in a business that the Attorney monwealth of the Northern Mariana Islands, (2) $300,000 shall be available to reimburse General has determined is legitimate; respectively,’’; the United States Secretary of Labor for pro- ‘‘(B) the employer has filed a petition for (C) in paragraph (2)(A), by striking ‘‘into viding additional technical and other sup- classification of the alien as an employment- Guam’’, and inserting ‘‘into Guam or the port to the Commonwealth of the Northern based immigrant with the Attorney General Commonwealth of the Northern Mariana Is- Mariana Islands to train and actively recruit pursuant to section 204 of the Immigration lands, respectively,’’; and and hire persons authorized to work in the and Nationality Act, as amended, not later (D) in paragraph (3), by striking ‘‘Govern- United States, including lawfully admissible than 180 days following the transition pro- ment of Guam’’ and inserting ‘‘Government freely associated state citizen labor, to fill gram effective date; of Guam or the Government of the Common- employment vacancies in the Common- ‘‘(C) the alien has been lawfully present in wealth of the Northern Mariana Islands’’. wealth of the Northern Mariana Islands. The the Commonwealth of the Northern Mariana (3) The amendments to the Immigration United States Secretary of Labor shall con- Islands and authorized to be employed in the and Nationality Act made by this subsection sult with the Governor of the Common- Commonwealth of the Northern Mariana Is- shall take effect on the first day of the first wealth of the Northern Mariana Islands,

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S373 local businesses, the College of the Northern MORNING BUSINESS to our economy and our society, and Marianas, the United States Secretary of the that we act to ensure that the pur- Interior and the United States Secretary of Mr. MURKOWSKI. Madam President, I ask unanimous consent that there be chasing power of their income does not Commerce and shall assist in the develop- erode over time. Today’s minimum ment and implementation of such a training a period for the transaction of routine program. All expenditures, other than for morning business with Senators per- wage is more than 20 percent lower in the costs of Federal personnel, shall require mitted to speak for up to 10 minutes real terms than it was in 1979. The pro- a non-Federal matching contribution of 50 each. posed increase to $6.15 simply restores percent and the United States Secretary of The PRESIDING OFFICER. Without the minimum wage back to its pur- Labor shall provide a report on activities to objection, it is so ordered. chasing power in 1982. Would any of us the Committee on Energy and Natural Re- deny that it’s just as tough, or tougher, sources and the Committee on Appropria- f for a low-income family to make ends tions of the Senate and the Committee on MAKING WORK PAY FOR WORKING meet today as it was in 1982? Resources and the Committee on Appropria- Raising the minimum wage by $1 an tions of the House of Representatives by FAMILIES March 1 of each year. The United States Sec- hour will directly help more than 11 Mr. BAYH. Madam President, I rise million workers and their families, as retary of Labor may supplement the funds today to speak in support of increasing provided under this section with other funds well as the millions more earning be- and resources available to him and shall un- the minimum wage. I am aware that tween the current minimum of $5.15 dertake such other activities, pursuant to the bankruptcy reform bill that we re- and the new minimum of $6.15 who will existing authorities of the Department, as he cently passed in this chamber contains also see their wages rise. It will reward decides will assist in such a training pro- an amendment that will increase the the responsibility of these workers gram in the Commonwealth of the Northern minimum wage by $1 over a three-year with a more living wage. It will send Mariana Islands. period. While I voted for passage of the (d) DEPARTMENT OF JUSTICE AND DEPART- the message that we understand that final bill, the minimum wage amend- being a member of the ‘‘working poor’’ MENT OF LABOR OPERATIONS.—The Attorney ment it contained was constructed in a General and the United States Secretary of is one of the toughest places to be in Labor are authorized to establish and main- way that is sure to draw a Presidential America, with obstacles to reaching tain Immigration and Naturalization Serv- veto, thereby endangering not only a the middle class turning up at every ice, Executive Office for Immigration Re- wage increase for working families but turn. Raising the minimum wage would view, and United States Department of also the months of work that all of us reduce one such obstacle. Nearly 200,000 Labor operations in the Commonwealth of have put into reforming our bank- workers in Indiana would benefit di- the Northern Mariana Islands for the pur- ruptcy laws. pose of performing their responsibilities rectly from a minimum wage increase. The amendment that the bill con- Some argue that raising the min- under the Immigration and Nationality Act, tained was deeply flawed. I hope that as amended, and under the transition pro- imum wage will lead to higher unem- gram. To the extent practicable and con- the amendment will be stripped in con- ployment. I am happy to say that has sistent with the satisfactory performance of ference so that we can send a bank- not been the case in Indiana. Since their assigned responsibilities under applica- ruptcy reform bill to the President September 1996, the last time the Sen- ble law, the United States Departments of that he will sign. Then, perhaps we can ate passed a minimum wage increase, Justice and Labor shall recruit and hire from move forward on a real increase in the 133,000 new jobs have been created in among qualified applicants resident in the minimum wage, perhaps in a package my home state. Unemployment has Commonwealth of the Northern Mariana Is- that contains some meaningful tax lands for staffing such operations. dropped by 26 percent and now stands cuts for small business. at 2.9 percent, significantly lower than (e) REPORT TO THE CONGRESS.—The Presi- Madam President, we are living in a dent shall report to the Senate Committee the national average. on Energy and Natural Resources, and the time of unprecedented economic pros- The good news in this debate is that House Committee on Resources, within six perity. A few days ago, we reached an it appears we all agree the minimum months after the fifth anniversary of the en- important milestone: We are now en- wage should be increased. We have our actment of this Act, evaluating the overall joying the longest economic expansion differences over the timing but by and effect of the transition program and the Im- in our nation’s history. Economic large both Republicans and Democrats migration and Nationality Act on the Com- growth has been so strong that in 17 of realize it is time to make work pay. monwealth of the Northern Mariana Islands, the last 24 quarters, real GDP grew at The bad news is that there is a poison and at other times as the President deems a rate of three percent or more. Inno- appropriate. The report shall describe what pill buried in this legislation. At the efforts have been undertaken to diversify vation, productivity, and fiscal dis- same time that they seek to raise the and strengthen the local economy, including, cipline have all contributed to this ex- take home pay of working families, the but not limited to, efforts to promote the pansion. Unemployment is at historic Republican minimum wage proposal Commonwealth of the Northern Mariana Is- lows, real wages are increasing for contains a provision that could reduce lands as a tourist destination. many, and we have replaced welfare the wages of approximately 73 million (f) LIMITATION ON NUMBER OF ALIEN WORK- with work in record numbers. American workers who are eligible to ERS PRIOR TO APPLICATION OF THE IMMIGRA- But not everyone is realizing the receive overtime pay. TION AND NATIONALITY ACT, AS AMENDED, AND prosperity many have enjoyed. While This overtime pay repeal provision ESTABLISHMENT OF THE TRANSITION PRO- many workers in the economy have en- GRAM.—During the period between enact- would allow employers to eliminate ment of this Act and the effective date of the joyed sizeable raises, those workers at the requirement that bonuses, commis- transition program established under section the bottom are still working hard just sions, and other forms of compensation 6 of Public Law 94–241, as amended by this to make ends meet. Consider a min- based on productivity, quality and effi- Act, the Government of the Commonwealth imum wage worker, working 40 hours a ciency be part of a worker’s ‘‘regular of the Northern Mariana Islands shall not week. We want this worker to stay off rate’’ of pay for purposes of calculating permit an increase in the total number of of welfare, to be a responsible citizen overtime pay. Eliminating this provi- alien workers who are present in the Com- and contribute to society, yet the min- monwealth of the Northern Mariana Islands sion, and allowing bonuses to be ex- on the date of enactment of this Act. imum wage of $5.15 an hour allows this cluded from overtime pay, would nul- (g) APPROPRIATIONS.—There are authorized worker to earn just $10,700—nearly lify the purposes for which the Fair to be appropriated such sums as may be nec- $3,000 below the poverty level for a Labor Standards Act was created. Em- essary to carry out the purposes of this sec- family of three. Add to this the fact ployers would be provided an incentive tion and of the Immigration and Nationality that most of these workers receive no to slash hourly pay rates or reduce the Act with respect to the Commonwealth of pension or paid vacation, few receive number of new jobs they create. Such the Northern Mariana Islands. child care, and many lack employer- cynical actions explain why so many Mr. MURKOWSKI. I thank the Chair. provided health insurance. There is no Americans are frustrated with politics. I compliment the Chair for her dili- question that it is very difficult in our Raising the minimum wage is some- gence and expedience in resolving this society to be a worker at the very bot- thing that most Americans regard as CNMI effort that has languished so tom of the income scale. fair, given our economic prosperity, long in this body. It is nice to see It is important that we recognize the and 75 to 80 percent support an increase something concluded. contributions that these workers make in every opinion poll. Yet some refuse

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S374 CONGRESSIONAL RECORD — SENATE February 7, 2000 to act in a way that genuinely responds cent of African-American households, allowing states to include IDAs in their to this concern. What’s more, the bill have zero or negative net financial as- Temporary Assistance to Needy Fami- in its current form will almost cer- sets and 40 percent of all white chil- lies (TANF)—welfare-to-work—plans. tainly provoke a presidential veto. dren, and a staggering 73 percent of all Since then, 28 states have included Madam President, we have been down Black children, grow up in households IDAs in their state TANF plans, 27 this road before. Both sides agree on an with zero or negative net financial as- states have passed some form of IDA issue that needs to be addressed and sets. legislation, and five more states have then allow a partisan squabble to pre- The lack of financial assets creates IDA legislation pending. In addition, vent us from getting it done. The almost insurmountable obstacles Congress established the Assets for American people did not send us here against purchasing a home, starting a Independence Act in 1998, which pro- to spend all of our time arguing over small business or investing in a post- vided $125 million over 5 years for IDA our differences. They sent us here—and secondary education—all investments demonstration programs. This Act is I came here—to find the common which would enable these families to expected to reach an additional 30,000 ground on which we agree. better their economic status and fully to 40,000 working-poor Americans by Now that the bankruptcy reform bill participate in the American dream, a 2003. has passed the Senate, I urge my col- dream which should be available to all Last summer, the Senate tax bill in- leagues to work these issues out in American’s willing to put forth the ef- cluded a provision, similar to this bill, conference. Let’s begin the year fo- fort and initiative. which would also have established tax cused not on what divides us but what And, Madam President, providing incentives to encourage financial insti- unites us in the interests of America’s economic opportunity to all Americans tutions to match the savings of lower- working families. is not only the right thing to do mor- income account holders. I feel privi- Madam President, I want to also take ally, but it is the right thing to do eco- leged to have voted for the tax bill, a moment to discuss the Hatch Amend- nomically. Not only will this legisla- which included many pro-family and ment that is now part of this legisla- tion empower our lower-income work- pro-community provisions such as the tion. While I believe that the meth- ing Americans but it will benefit the establishment of the Individual Devel- amphetamine provisions of this amend- entire society in the form of new busi- opment Accounts. ment are good and something I could nesses, new jobs, increased earnings, Lastly, I am proud to be the lead support, I voted against this amend- greater tax revenue, reduced welfare sponsor of comprehensive bi-partisan ment last year for I do not support the expenditures and a higher national sav- and bi-cameral community develop- voucher language contained in this ings rate. Case-in-point, Mr. President, ment and renewal legislation, the amendment. I do not support diverting IDAs yield over $5 for every $1 in- American Community Renewal Act, needed resources from our public vested. which includes IDAs as a means by schools for voucher proposals. Desert- Simply put, Madam President, with- which communities can help them- ing our public schools is not the answer out productive assets such as a home, a selves. Please allow me to take this op- to the problem. I believe we need great- college education or a business upon portunity and thank Senators LIEBER- er flexibility and greater account- which to build a successful financial MAN and SANTORUM for their continued ability in our nation’s schools. This future, the working poor may continue support and effort of IDAs and the voucher language is of great concern to to work but they will also continue to American Community Renewal Act. me. I sincerely hope that my col- remain poor. In closing, Madam President, the leagues will do the right thing and re- The legislation we are introducing Savings for Working Families Act of move the voucher language from this today, the Savings for Working Fami- 2000 provides a common sense long- bill during conference. lies Act of 2000, recognizes the need to term solution by providing working f invest in the working poor: empower lower-income Americans the education them with the ability to build assets, and the tools by which they gain the fi- SAVINGS FOR WORKING FAMILIES own a piece of their neighborhood and nancial know-how necessary to succeed ACT OF 2000 achieve wealth. in today’s economy. Mr. ABRAHAM. Madam President, Specifically, this legislation would It is important to recognize that this week, I joined with my good establish Individual Development Ac- achieving family development, neigh- friends, Senator LIEBERMAN and Sen- counts for poorer Americans, through borhood revitalization and community ator SANTORUM, to introduce the Sav- which account holders can deposit any resurgence begins by empowering peo- ings for Working Families Act of 2000. discretionary earned income and their ple to help themselves—this legislation This important legislation would en- Earned Income Tax Credit refund and provides this opportunity. I am looking able low-income working Americans to have up to $500 of their savings forward to working with my colleagues increase their savings and build assets, matched, each year, by a financial in- this session to ensure the passage of thus allowing them to enter and be- stitution. A tax credit would be made the Savings for Working Families Act come a contributing part of America’s available to financial institutions and into law. economic mainstream and benefit from for investment in qualified non-profits f its unprecedented period of economic administering qualified IDA programs, growth. in order to provide incentives to THE VERY BAD DEBT BOXSCORE Right now, despite the fact that the match, dollar-for-dollar, IDA account Mr. HELMS. Madam President, at net worth of American families has in- savings, up to $500 per person per year. the close of business Friday, February creased dramatically over recent years, In order to promote asset building, 4, 2000, the Federal debt stood at the net worth of families with incomes the matched savings accounts would be $5,691,096,297,325.05 (Five trillion, six below $25,000 per year has actually de- restricted to buying a first home, re- hundred ninety-one billion, ninety-six creased. As many as 20 percent of ceiving post-secondary education or million, two hundred ninety-seven American families are ‘‘unbanked’’— training, or starting a small business. thousand, three hundred twenty-five meaning that they do not have either a In addition, account holders would par- dollars and five cents). checking or a savings account. ticipate in classes designed to increase One year ago, February 4, 1999, the This disparity has had a severe and their financial literacy and better pre- Federal debt stood at $5,584,640,000,000 damaging affect not only on the ability pare them for full and successful par- (Five trillion, five hundred eighty-four of lower-income Americans to obtain ticipation in the mainstream economy. billion, six hundred forty million). financial assets but it has drastically Madam President, I am also pleased Fifteen years ago, February 4, 1985, reduced the chances of the working to note that Congress has already rec- the Federal debt stood at poor to achieve upper, or even middle ognized the important contributions $1,672,705,000,000 (One trillion, six hun- class status. Even more distressing is that IDAs make to our communities dred seventy-two billion, seven hun- the impact this disparity has had on and our economy in several important dred five million). children and minorities: one-third of ways. In 1996, Congress included in the Twenty-five years ago, February 4, all American households, and 60 per- 1996 welfare overhaul law, a provision 1975, the Federal debt stood at

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S375 $487,665,000,000 (Four hundred eighty- of fiscal discipline and promises new unforeseen results have materialized, seven billion, six hundred sixty-five opportunity for our Nation. an inevitable development in fore- million) which reflects a debt increase We have made great progress in the casting, they have always brought good of more than $5 trillion— last seven years, rejecting the fiscal news. In turn, reversing recent trends, $5,203,431,297,325.05 (Five trillion, two disarray of an earlier era and in its my 2001 Budget builds on the tradition hundred three billion, four hundred place, asserting a steadfast commit- of straightforward budgets to meet the thirty-one million, two hundred nine- ment to live within our means, balance pressing needs of today in a balanced ty-seven thousand, three hundred the budget, and uphold fiscal dis- plan that adheres to the principles of twenty-five dollars and five cents) dur- cipline. As a result, we have created fiscal discipline and debt reduction. ing the past 25 years. the conditions for unprecedented pros- This budget also maintains a strict set f perity. The longest peacetime eco- of budget rules upholding our long nomic expansion in American history commitment to fiscal discipline, which MESSAGES FROM THE PRESIDENT has produced more than 20 million new has sustained the conditions for our Messages from the President of the jobs. Unemployment has hit its lowest economy to flourish. United States were communicated to level in a generation. Today, more The 2001 Budget continues to project the Senate by Mr. Williams, one of his Americans own their own homes than that the Federal budget will remain in secretaries. ever before in our Nation’s history. surplus for many decades to come, pro- Our success in reversing what once EXECUTIVE MESSAGES REFERRED vided that a responsible fiscal policy seemed to be uncontrollable growth in As in executive session, the Presiding holds course, to foster sustained eco- the Federal budget deficit has created Officer laid before the Senate messages nomic growth. Our challenge now, in more than prosperity. We have restored from the President of the United this era of surplus, is to make balanced to America a spirit of purpose and con- States submitting sundry nominations choices to use our resources to meet fidence. This is a rare moment in his- which were referred to the appropriate the pressing needs of today, and the tory. Few nations are blessed with a committees. needs of generations to come. combination of economic prosperity (The nominations received today are BUILDING ON THE SUCCESS OF OUR FISCAL and social stability at home and with printed at the end of the Senate pro- DISCIPLINE the security of a relatively peaceful ceedings.) When I took office in 1993, the cur- world. It is time to make the most of rent strength of our economy seemed f this moment of promise to extend pros- beyond possibility. At that point, both REPORT TO THE CONGRESS ON perity to all corners of our Nation. My first budget of the new century is the Federal budget deficit and the na- THE NATIONAL EMERGENCY tional debt had exploded, threatening WITH RESPECT TO TERRORISTS built upon a commitment to expanding opportunity, promoting responsibility, our economic future. The costs of mas- WHO THREATEN TO DISRUPT sive Federal borrowing drove interest THE MIDDLE EAST PEACE PROC- and building community. It includes my New Markets Initiative, which re- rates up, incomes were stagnant for all ESS—MESSAGE FROM THE but the most well off, and the economy PRESIDENT—PM 83 lies on public and private sector co- operation to spur economic develop- had barely grown during the prior four The PRESIDING OFFICER laid be- ment in areas of our Nation that have years. The Nation needed a new course, fore the Senate the following message not yet fully benefited from this wave and we worked hard to secure the pas- from the President of the United of prosperity. It includes an expansion sage of legislation, with the support of States, together with an accompanying of the Earned Income Tax Credit to lift Democrats in Congress, to get the report; which was referred to the Com- more hard-pressed working families economy moving again. mittee on Banking, Housing, and out of poverty. It expands health insur- My three-part economic strategy, Urban Affairs. ance coverage to more uninsured low- built upon reducing the deficit, invest- ing in the American people, and engag- To the Congress of the United States: income children and extends this cov- ing the international economy yielded As required by section 401(c) of the erage to their hard-working parents. results. The budget deficit quickly National Emergencies Act, 50 U.S.C. Because education is fundamental to began to drop from its peak of $290 bil- 1641(c), and section 204(c) of the Inter- creating opportunity, my budget con- lion, and in 1997, we pressed ahead with national Emergency Economic Powers tains resources to prepare the next our deficit reduction efforts as Con- Act (IEEPA), 50 U.S.C. 1703(c), I trans- generation for the future with new and gress passed the Balanced Budget Act mit herewith a 6-month periodic report expanded efforts to improve the quality on a bipartisan basis to finish the job. on the national emergency with re- of our schools, prepare our students for Four years ahead of schedule, the budg- spect to terrorists who threaten to dis- college, and make college more acces- et reached balance and is projected this rupt the Middle East peace process sible. It includes efforts to narrow the year to produce its third surplus in a that was declared in Executive Order digital divide, the gap that separates row. We have started to pay down the 12947 of January 23, 1995. those who have access to information national debt and are on a path to WILLIAM J. CLINTON. technology and those who do not, so make the Nation debt free by 2013 for THE WHITE HOUSE, February 7, 2000. that all will be equipped with the tech- nological tools they need to succeed. It the first time since 1835. f also includes a science and technology Throughout the past seven years, my REPORT TO THE CONGRESS ON initiative to lay the foundation for new Administration has been committed to THE FISCAL YEAR 2001 BUDGET— scientific breakthroughs. creating opportunity for all Americans, MESSAGE FROM THE PRESI- This budget responds to the pressing demanding responsibility from all DENT—PM 84 needs of today and builds an America Americans, and strengthening the of the future by making our Nation American community. The crime rate, The PRESIDING OFFICER laid be- debt free by 2013. To be prepared for the which had tripled during the previous fore the Senate the following message retirement of the baby boom genera- three decades, continues to fall and from the President of the United tion, my budget also provides a frame- crime is down in every region of the States, together with an accompanying work to extend the life of the Social Nation. We have reformed the welfare report; which was referred jointly, pur- Security and Medicare trust funds, system, and more than seven million suant to the order of January 30, 1975, while modernizing Medicare with a Americans in the past seven years have to the Committees on Appropriations needed prescription drug benefit. made the transition from welfare to and the Budget. This budget uses the same straight- work. To the Congress of the United States: forward approach of relying on con- Most of all, the prosperity and oppor- The 2001 Budget, which I am submit- servative assumptions, as have all the tunity of our time offers us a great re- ting to you with this message, is the budgets of my Administration. This sponsibility—to take action to ensure fourth balanced budget of my Adminis- conservative approach has built con- that Social Security is there for the el- tration. This budget upholds my policy fidence in our budgets, because when derly and the disabled, while ensuring

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S376 CONGRESSIONAL RECORD — SENATE February 7, 2000 that it not place a burden on our chil- between those who are able to move working, low-income families, espe- dren, that the life of Medicare is ex- ahead and those who lag behind. For cially larger families who are more tended for future generations, and that this reason, I am committed to ensur- likely to be poor than families with we modernize Medicare with a needed ing that we have a first-rate system of only one or two children. My budget prescription drug benefit. If we con- education and training in place for also significantly increases 21st Cen- tinue to follow sound fiscal policy, we Americans of all ages. Over the last tury Learning Community Centers and can provide for the future, produce a seven years, we have worked hard to expands after-school learning time. It balanced tax cut and meet the needs of ensure that every boy and girl is pre- makes child care more affordable by today, while sustaining the conditions pared to learn, that our schools focus expanding tax credits or middle-income that have brought us this current wave on high standards and achievement, families and for businesses that provide of prosperity. All this can be done, but that anyone who wants to go to college child care services to their employees, balanced and sound fiscal policy is the can get the financial help to attend, by assisting parents who want to at- key. and that those who need another tend college meet their child care IMPROVING PERFORMANCE THROUGH BETTER chance at education and training, or a needs, as well as making a child care MANAGEMENT chance to improve or learn new skills, tax credit available to parents who At the start of this Administration, can do so. My budget builds on the choose to stay at home to raise a the Vice President and I set out to cre- commitment to make college more af- young child. My budget proposes to ate a Government that works better, fordable by expanding the tax credits create an Early Learning Fund and costs less, and gets results Americans for higher education and increasing builds on our expansion of the success- care about. We believe that with better Pell Grants and other college aid be- ful Head Start program to help meet stewardship, the Government can bet- yond the record levels already reached. the goal of serving one million children ter achieve its mission and improve the It promotes smaller learning environ- by 2002. An it promotes responsible fa- quality of life for all Americans. The ments in high schools and invests in re- therhood by proposing tough new success of these efforts is reflected in ducing class size by recruiting and pre- measures to ensure that all parents the significant changes of the past paring thousands more teachers and who can afford to pay child support do seven years in the way Government building thousands more classrooms, as so, while providing support to increase does business. well as providing for urgent and essen- We have streamlined Government, the employment earnings and child tial school repairs. support payments of low-income fa- cutting the civilian Federal work force My budget includes significant in- by 377,000, giving us the smallest work thers. My budget includes efforts to in- creases to expand access to after-school force in 39 years. We have done more crease access to food stamps for the and other extended learning time op- than just reduce or eliminate hundreds working poor, in part by proposing portunities, a central element of my of Federal programs and projects. We that low-income working families, who accountability agenda to help children, have also empowered government em- need efficient transportation to get to ployees to cut red tape, and used part- especially in the poorest communities, work, be permitted to own a modest ve- nerships to get results. reach challenging academic standards hicle and retain food stamp eligibility. While we have made real progress, while supporting efforts to demand And, it proposes resources to provide there is still much work to do. We are more from schools and support them in health care to legal immigrant chil- forging ahead with new efforts to im- return. It promotes efforts to recruit dren, to restore Supplemental Security prove the quality of the service that teachers in high-poverty areas and in- Income benefits to legal immigrants the Government offers its customers. cludes a peer review initiative to help with disabilities, and to restore food My Administration has identified its school districts raise teacher standards stamp benefits to legal immigrants in highest priorities—24 Priority Manage- and teacher pay. The budget proposes families with eligible children. ment Objectives listed in this budget, improving school accountability by We have continued to improve health that will receive heightened attention holding States, districts and schools care for millions of Americans. Since to ensure positive changes in the way accountable for results by providing re- the establishment of the State Chil- Government works. It is a mark of our sources to identify and turn around the dren’s Health Insurance Program in success that in early 2000, we were able worst-performing schools, and incen- 1997, two million children have enrolled to remove last year’s number one ob- tives to reward States that do the most in programs across all 50 States. I am jective from the list: Manage the Year to improve student performance and proposing a significant expansion of 2000 (Y2K) Computer Problem. Due close the achievement gap. It invests in this successful program to extend largely to the efforts of Federal em- programs to help raise the educational health coverage to more children in ployees and the leadership provided by achievement of Latino students. And hard working, low-income families. My my Council on Year 2000 Conversion, my budget supports efforts to narrow budget also extends this coverage to the Federal Government’s Y2K efforts the digital divide by expanding re- their parents, low-income working were, beyond all expectation, remark- sources for technology centers to make adults who lack health insurance, ably trouble free. We will continue to computers accessible in low-income which will help increase the enroll- move ahead to address other priorities, community areas. ment of their children by enabling en- including modernizing student aid de- During the past seven years, we have tire families to receive coverage livery, implementing IRS reforms, and taken many steps to help working fam- through the same program. My budget strengthening the management of ilies, and we continue that effort with contains other significant incentives to Health Care Financing Administration, this budget. We cut taxes for 15 million increase access to affordable health which oversees Medicare. working families, provided a tax credit care, including tax credits for small I believe the steps we have taken to to help families raise their children, businesses and a provision to allow change and improve the way Govern- ensured that 25 million Americans a hundreds of thousands of Americans ment works have also changed the way year can change jobs without losing aged 55 to 65 to purchase Medicare cov- Americans view their Government, in- their health insurance, made it easier erage. creasing the confidence and trust of for the self-employed and those with My budget puts forth a plan that ex- the American public. It is our job to pre-existing conditions to get health tends Medicare solvency to at least keep at this task, so that the Federal insurance, provided access to health 2025, respects fiscal discipline, and Government continues to improve its care coverage for up to five million un- eliminates the national debt. My plan performance and the American public insured children, raised the minimum will modernize Medicare with a needed is better served. I am determined that wage, and provided guaranteed time off drug benefit, expand access to prevent- we will do more to solve the very real for workers who need to care for a new- ative benefits, and improve Medicare management challenges before us. born or to address the health needs of management. I intend to keep pressing STRENGTHENING OUR NATION IN THE 21ST a family member. ahead and working with Congress to CENTURY I am proposing a significant expan- enact essential patient protections in- Education, in our competitive global sion of the Earned Income Tax Credit cluding emergency room access and the economy, has become the dividing line to provide support to America’s hard right to see a specialist. By Executive

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S377 Order, I have extended these rights to During the past seven years, I have the doorstep of our allies. The United 85 million Americans covered by Fed- sought to strengthen science and tech- States has played a critical role in the eral health plans, including Medicare nology investments in order to serve strides made toward lasting peace in and Medicaid beneficiaries and Federal many of our broader goals for the Na- Northern Ireland, the Middle East, and employees. tion in the economy, education, health Sierra Leone. The United States has Most Americans are enjoying the care, the environment, and national de- worked to detect and counter terrorist fruits of our strong economy, yet we fense. Building on the balanced port- threats and continue efforts with Rus- must do more to bring this prosperity folio of basic and applied research in sia and other former Soviet nations to to all corners of our great Nation. We the 21st Century Research Fund, my halt the spread of dangerous weapons must use this moment of promise to budget includes a Science and Tech- materials. My budget seeks to build on spread the values of community, oppor- nology Initiative which places special these efforts, proposing funding to tunity, and responsibility, and to help emphasis on high-priority, long-term build a democratic society and strong- create the conditions for all to share in basic research, including nanotech- er economy in Kosovo, initiatives to our prosperity. My New Markets Initia- nology, the manipulation of matter at further protect our men and women tive, an expanded approach built upon the atomic and molecular level, which overseas, and a 2000 emergency supple- the same public-private cooperation at offers the promise that medical science mental to provide critical assistance to the center of last year’s plan, will pro- may one day be able to detect can- the Government of Colombia in its vide tax credit and loan guarantee in- cerous tumors when they are com- fight against narcotics traffickers. My centives to stimulate tens of billions of prised of only a few cells. My budget budget also proposes funding to pro- dollars in new private investment in also increases resources for the Infor- mote international family planning, distressed rural and urban areas. It will mation Technology research and devel- contain the global spread of AIDS, pro- build a network of private investment opment program to invest in long-term mote debt forgiveness to help people in institutions to funnel credit, equity, research in computing and communica- the world’s poorest countries join the and technical assistance into busi- tions. It will accelerate development of global economy, and promote trade by nesses in America’s untapped markets, extremely fast supercomputers to sup- opening global markets. and provide the expertise to targeted port civilian research, enabling experts The Armed Forces of the United small businesses that will allow them to develop life-saving drugs, provide States serve as the backbone of our na- to use investment to grow. I am also earlier tornado warnings, and design tional security strategy. As it did suc- proposing to expand the number of Em- more fuel-efficient safer automobiles. cessfully last year in Kosovo, the mili- powerment Zones, which provide tax The budget provides strong support for tary must be in a position to protect incentives and direct spending to en- the Nation’s two largest sources of ci- our national security interests and courage the kind of private investment vilian basic research funding for uni- guard against the major threats to U.S. that creates jobs, and to provide more versities: the National Science Founda- security. These include regional dan- capital for lending through my Com- tion and the National Institutes of gers, such as cross-border aggression; munity Development Financial Insti- the proliferation of the technology of tutions program. My budget also in- Health. The Nation does not have to choose weapons of mass destruction; cludes significant funding increases for between a strong economy and a clean transnational dangers, such as the Native American communities to help environment. The past seven years are spread of illegal drugs and terrorism; this generation and future generations and, direct attacks on the U.S. home- receive greater opportunities. It pro- proof that we can have both. We have land from intercontinental ballistic vides additional funds to enforce the set tough new clean air standards for missiles or other weapons of mass de- Nation’s civil rights laws, and soot and smog that will prevent up to struction. To ensure that the military strengthens the partnership we have 15,000 premature deaths a year. We can fulfill this mission, I made a major begun with the District of Columbia. In have set new food and drinking water addition, my budget proposes an $11 safety standards and have accelerated commitment last year to maintain our billion package for farmers in need and the pace of cleanups of toxic Superfund military readiness, which this budget to help mend the farm safety net by sites. We expanded our efforts to pro- builds upon with additional resources providing assistance when crop prices tect tens of millions of acres of public to ensure that the services can meet are low. and private lands, including Yellow- required training standards, maintain Our anti-crime strategy is working. stone National Park, Florida’s Ever- equipment in top condition, recruit and Serious crime has fallen without inter- glades, and California’s redwoods. Led retain quality personnel, and procure ruption, and the murder rate is at its by the Vice President, the Administra- sufficient spare parts and other equip- lowest point in three decades. Building tion reached an international agree- ment. To help improve the quality of on our successful community policing ment in Kyoto that calls for cuts in life and strengthen the Department’s (COPS) program that is helping com- greenhouse gas emissions. My budget ability to attract and retain quality in- munity fund 100,000 cops on the beat, significantly expands support for the dividuals, this budget includes a major the 21st Century Policing initiative environment, by establishing dedicated initiative to reduce servicemembers’ was enacted last year to put us on funding and increasing resources for out-of-pocket costs for off-base hous- track to fund new anti-crime tech- the historic interagency Lands Legacy ing. In addition, this budget provides nology and 50,000 more police. This initiative to preserve the Nation’s nat- resources for the Department of De- year, I am launching the largest gun ural and historic treasures. My budget fense and other agencies to combat enforcement initiative ever, adding also supports the Clean Energy initia- emerging threats, including terrorism funds to hire 500 new ATF agents, 1,000 tive to reduce the threat of global and weapons of mass destruction, and State and local gun prosecutors and warming, and the Greening the Globe to provide for critical infrastructure funds for smart gun technology. The initiative to save tropical and other protection. It provides funds to support budget also provides funds to prevent forests around the globe. It provides re- counter-narcotics efforts, including a violence against women, and to address sources to support farm conservation 2000 supplemental to increase assist- the growing law enforcement crisis on to upgrade water quality, the Clean ance to the Government of Colombia in Indian lands. To boost our efforts to Water Action plan to clean up polluted their fight against narcotics traf- control illegal immigration, the budget waterways, and climate change tech- fickers. It also provides additional provides resources to strengthen en- nology efforts to increase energy-effi- funding for contingency operations in forcement, particularly on the South- cient technologies and renewable en- Southwest Asia, Bosnia, and Kosovo. west and Northern borders, and to re- ergy to strengthen our economy while BUILDING PROSPERITY FOR THE FUTURE move illegal aliens. To combat drug reducing greenhouse gases. This is a rare moment in American use, particularly among young people, In the past year, America’s leader- history. Never before has our Nation my budget expands programs that ship was essential to the success of the enjoyed so much prosperity, at a time stress treatment and prevention, law NATO alliance in halting the ethnic when special progress continues to ad- enforcement, international assistance, cleansing of Kosovo’s ethnic Albanians vance and our position as the global and interdiction. and containing the risk of wider war at leader is secure. Today, we are well

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S378 CONGRESSIONAL RECORD — SENATE February 7, 2000 prepared to make the choices that will Plan/Qualified Retirement Plan Hybrid Ar- Evaluation, Environmental Protection Agen- shape our Nation’s future for decades rangement’’ (UIL–125.05–00), received Feb- cy, transmitting, pursuant to law, the report to come. ruary 1, 2000; to the Committee on Finance. of a rule entitled ‘‘Wetlands Grants 2000— By reversing the earlier trend of fis- EC–7358. A communication from the Under Grants Guidance’’, received January 24, 2000; Secretary of Defense (Personnel and Readi- to the Committee on Environment and Pub- cal irresponsibility, balancing the ness), transmitting, pursuant to law, a re- lic Works. budget, and producing a historic sur- port relative to the DoD annual audit of the EC–7369. A communication from the Direc- plus, we have restored our national American Red Cross; to the Committee on tor, Office of Regulatory Management and spirit and produced the resources to Health, Education, Labor, and Pensions. Information, Office of Policy, Planning and help opportunity and prosperity reach EC–7359. A communication from the Direc- Evaluation, Environmental Protection Agen- all corners of this Nation. We have it tor, Regulations Policy and Management cy, transmitting, pursuant to law, the report within our reach today, by making the Staff, Food and Drug Administration, De- of a rule entitled ‘‘National Priorities List partment of Health and Human Services, for Uncontrolled Hazardous Waste Sites’’ right choices, to offer the promise of transmitting, pursuant to law, the report of (FRL # 6532–7), received February 2, 2000; to prosperity to generations of Americans a rule entitled ‘‘Aluminum in Large and the Committee on Environment and Public to come. If we keep to the path of fiscal Small Volume Parentaerals Used in Total Works. discipline, we can build a foundation of Parenteral Nutrition’’ (RIN0910–AA74), re- EC–7370. A communication from the Direc- prosperity for the Nation’s future. ceived February 3, 2000; to the Committee on tor, Office of Regulatory Management and My plan to extend the solvency of So- Health, Education, Labor, and Pensions. Information, Office of Policy, Planning and cial Security and Medicare allows the EC–7360. A communication from the Comp- Evaluation, Environmental Protection Agen- United States to become debt-free in troller General of the United States, trans- cy, transmitting, pursuant to law, a report mitting, pursuant to law, the report of the entitled ‘‘Guidance on Monitoring and Re- the next 13 years, for the first time list of General Accounting Office reports for porting Requirements for Class II–D and II– since 1835, Eliminating the debt will December 1999; to the Committee on Govern- R Injection Wells Underground Injection strengthen our economy, devote re- mental Affairs. Control Program’’; to the Committee on En- sources to Social Security, and prepare EC–7361. A communication from the Direc- vironment and Public Works. us to meet the challenges of the aging tor, National Counterintelligence Center EC–7371. A communication from the Con- of America. Through fiscal discipline transmitting, pursuant to law, the annual re- gressional Review Coordinator, Regulatory and wise choices we can extend the life port for fiscal year 1999; to the Committee on Analysis and Development, Policy and Pro- the Judiciary. gram Development, Animal and Health In- of Social Security to the middle of the EC–7362. A communication from the Direc- spection Service, Department of Agriculture, century, extend the solvency of Medi- tor, Office of Regulatory Management and transmitting, pursuant to law, the report of care until 2025, and modernize Medicare Information, Office of Policy, Planning and a rule entitled ‘‘Tuberculosis in Cattle and with a needed prescription drug ben- Evaluation, Environmental Protection Agen- Bison; State Designations; California, Penn- efit. cy, transmitting, pursuant to law, the report sylvania, and Puerto Rico’’ (Docket # 99–063– By continuing to maintain discipline, of a rule entitled ‘‘FY 2000 UST Grant Guid- 2), received February 3, 2000; to the Com- we can provide for the aging of Amer- ance (AL)’’, received January 24, 2000; to the mittee on Agriculture, Nutrition, and For- ica and for the investments of the fu- Committee on Environment and Public estry. Works. EC–7372. A communication from the Direc- ture—including education, the environ- EC–7363. A communication from the Direc- tor, Office of Sustainable Fisheries, National ment, research and development, and tor, Office of Regulatory Management and Marine Fisheries Service, Department of defense—which are central to our eco- Information, Office of Policy, Planning and Commerce, transmitting, pursuant to law, nomic growth, health, and national se- Evaluation, Environmental Protection Agen- the report of a rule entitled ‘‘Fisheries of the curity. By making choices that respect cy, transmitting, pursuant to law, the report Exclusive Economic Zone off Alaska; Atka fiscal discipline, we can make room to of a rule entitled ‘‘FY 2000 UST/LUST Pro- Mackerel in the Eastern Aleutian District provide both for a balanced tax cut and gram Grant Guidance’’, received January 24, and Bering Sea Subarea of the Bering Sea 2000; to the Committee on Environment and for investments that will help this Na- and Aleutian Islands’’, received February 3, Public Works. 2000; to the Committee on Commerce, tion stay strong in the future. EC–7364. A communication from the Direc- Science, and Transportation. This new century is filled with prom- tor, Office of Regulatory Management and EC–7373. A communication from the Direc- ise, for we live at a remarkable time. Information, Office of Policy, Planning and tor, Office of Sustainable Fisheries, National By making wise choices, we have it Evaluation, Environmental Protection Agen- Marine Fisheries Service, Department of within our power to extend the same cy, transmitting, pursuant to law, the report Commerce, transmitting, pursuant to law, promise and prosperity to generations of a rule entitled ‘‘FY 99 N/A UST/LUST Pro- the report of a rule entitled ‘‘Fisheries of the to come. gram Grant Guidance’’, received January 24, Exclusive Economic Zone off Alaska; Pol- 2000; to the Committee on Environment and lock in the Gulf of Alaska’’, received Feb- WILLIAM J. CLINTON. Public Works. ruary 3, 2000; to the Committee on Com- THE WHITE HOUSE, February 7, 2000. EC–7365. A communication from the Direc- merce, Science, and Transportation. f tor, Office of Regulatory Management and EC–7374. A communication from the Direc- Information, Office of Policy, Planning and tor, Office of Sustainable Fisheries, National EXECUTIVE AND OTHER Evaluation, Environmental Protection Agen- Marine Fisheries Service, Department of COMMUNICATIONS cy, transmitting, pursuant to law, the report Commerce, transmitting, pursuant to law, The following communications were of a rule entitled ‘‘Grant Guidance for Fiscal the report of a rule entitled ‘‘Fisheries of the laid before the Senate, together with Year 2000’’, received January 24, 2000; to the Exclusive Economic Zone off Alaska-Modi- accompanying papers, reports, and doc- Committee on Environment and Public fication of a Closure (opens directed fishing Works. for pollock by catcher vessels that are non- uments, which were referred as indi- EC–7366. A communication from the Direc- exempt under the American Fisheries Act in cated: tor, Office of Regulatory Management and Statistical Area 610 and the Shelikof EC–7355. A communication from the Ad- Information, Office of Policy, Planning and Strait)’’, received February 3, 2000; to the ministrator of the Panama Canal Commis- Evaluation, Environmental Protection Agen- Committee on Commerce, Science, and sion, transmitting, pursuant to law, the cy, transmitting, pursuant to law, the report Transportation. management response to the Inspector Gen- of a rule entitled ‘‘Public Water System Su- EC–7375. A communication from the Direc- eral’s report for the six months ended Sep- pervision Program Generic Grant Workplan tor, Office of Sustainable Fisheries, National tember 30, 1999, and the report required by Guidance’’, received January 24, 2000; to the Marine Fisheries Service, Department of the Federal Managers’ Financial Integrity Committee on Environment and Public Commerce, transmitting, pursuant to law, Act; to the Committee on Governmental Af- Works. the report of a rule entitled ‘‘Fisheries of the fairs. EC–7367. A communication from the Direc- Exclusive Economic Zone off Alaska-Closure EC–7356. A communication from the Sec- tor, Office of Regulatory Management and (closes directed fishing for pollock in Statis- retary of the Navy, transmitting, pursuant Information, Office of Policy, Planning and tical Area 630 outside the Shelikof Strait to law, a report relative to the transfer of Evaluation, Environmental Protection Agen- conservation area in the Gulf of Alaska’’, re- the battleship ex-New Jersey to the Home cy, transmitting, pursuant to law, the report ceived February 3, 2000; to the Committee on Port Alliance of Camden, NJ; to the Com- of a rule entitled ‘‘Wetlands Grants 2000— Commerce, Science, and Transportation. mittee on Armed Services. Call for Proposals’’, received January 24, EC–7376. A communication from the Pro- EC–7357. A communication from the Chief, 2000; to the Committee on Environment and gram Analyst, Office of the Chief Counsel, Regulations Unit, Internal Revenue Service, Public Works. Federal Aviation Administration, Depart- Department of the Treasury, transmitting, EC–7368. A communication from the Direc- ment of Transportation, transmitting, pur- pursuant to law, the report of a rule entitled tor, Office of Regulatory Management and suant to law, the report of a rule entitled ‘‘Coordinated Issue: All Industries-Cafeteria Information, Office of Policy, Planning and ‘‘Airworthiness Directives; Raytheon Model

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S379 Hawker 1000 Airplanes; Docket No. 99–NM– 328–100 Series Airplanes; Docket No. 99–NM– suant to law, the report of a rule entitled 156 [11–12/11–18]’’ (RIN2120–AA64) (1999–0440), 150 (11–22/11–22)’’ (RIN2120–AA64) (1999–0467), ‘‘Airworthiness Directives; Cessna Aircraft received November 19, 1999; to the Com- received November 22, 1999; to the Com- Company 170, 172, 175, and 177 Series Air- mittee on Commerce, Science, and Transpor- mittee on Commerce, Science, and Transpor- planes; Request for Comments; Docket No. tation. tation. 99–CE–24 [12–29/1–3]’’ (RIN2120–AA64) (1999– EC–7377. A communication from the Pro- EC–7385. A communication from the Pro- 0546), received January 3, 2000; to the Com- gram Analyst, Office of the Chief Counsel, gram Analyst, Office of the Chief Counsel, mittee on Commerce, Science, and Transpor- Federal Aviation Administration, Depart- Federal Aviation Administration, Depart- tation. ment of Transportation, transmitting, pur- ment of Transportation, transmitting, pur- EC–7393. A communication from the Pro- suant to law, the report of a rule entitled suant to law, the report of a rule entitled gram Analyst, Office of the Chief Counsel, ‘‘Airworthiness Directives; Pratt and Whit- ‘‘Airworthiness Directives; Dornier Model Federal Aviation Administration, Depart- ney JT8D–200 Series Turbofan Engines; 328–100 Series Airplanes; Docket No. 99–NM– ment of Transportation, transmitting, pur- Docket No. 99–NE–32 [12–21/12–23]’’ (RIN2120– 219 [1–27/1–27]’’ (RIN2120–AA64) (2000–0045), re- suant to law, the report of a rule entitled AA64) (1999–0535), received December 23, 1999; ceived January 27, 2000; to the Committee on ‘‘Airworthiness Directives; CFE Company to the Committee on Commerce, Science, Commerce, Science, and Transportation. Model CFE738–1–1B Turbofan Engines; Dock- and Transportation. EC–7386. A communication from the Pro- et No. 99–NE–39 [1–6/1–10]’’ (RIN2120–AA64) EC–7378. A communication from the Pro- gram Analyst, Office of the Chief Counsel, (2000–0014), received January 10, 2000; to the gram Analyst, Office of the Chief Counsel, Federal Aviation Administration, Depart- Committee on Commerce, Science, and Federal Aviation Administration, Depart- ment of Transportation, transmitting, pur- Transportation. ment of Transportation, transmitting, pur- suant to law, the report of a rule entitled EC–7394. A communication from the Pro- suant to law, the report of a rule entitled ‘‘Airworthiness Directives; Rolls Royce Lim- gram Analyst, Office of the Chief Counsel, ‘‘Airworthiness Directives; Pratt and Whit- ited Dart Series; Docket No. 99–NE–30 [12–29/ Federal Aviation Administration, Depart- ney JT8D–209, –217, –217A, –217C, and –219 Se- 1–3]’’ (RIN2120–AA64) (1999–0542), received ment of Transportation, transmitting, pur- ries Turbofan Engines; Docket No. 98–ANE– January 3, 2000; to the Committee on Com- suant to law, the report of a rule entitled 80 [12–29/1–3]’’ (RIN2120–AA64) (1999–0544), re- merce, Science, and Transportation. ‘‘Airworthiness Directives; Mitsubishi Model ceived January 3, 2000; to the Committee on EC–7387. A communication from the Pro- YS–11 and YS011A Series Airplanes; Docket Commerce, Science, and Transportation. gram Analyst, Office of the Chief Counsel, No. 99–NM–140 [11–22/11–29]’’ (RIN2120–AA64) EC–7379. A communication from the Pro- Federal Aviation Administration, Depart- (1999–0479), received November 29, 1999; to the gram Analyst, Office of the Chief Counsel, ment of Transportation, transmitting, pur- Committee on Commerce, Science, and Federal Aviation Administration, Depart- suant to law, the report of a rule entitled Transportation. ment of Transportation, transmitting, pur- ‘‘Airworthiness Directives; BMW Rolls- EC–7395. A communication from the Pro- suant to law, the report of a rule entitled Royce GmbH Models BR700–710A1–10 and gram Analyst, Office of the Chief Counsel, ‘‘Airworthiness Directives; Pratt and Whit- BR700–710–20 Turbofan Engines; Request for Federal Aviation Administration, Depart- ney JT9D–TR4 Series Turbofan Engines; Cor- Comments; Docket No. 98–ANE–74 [11–19/11– ment of Transportation, transmitting, pur- rection; Docket No. 99–NE–06 [11–18/11–22]’’ 22]’’ (RIN2120–AA64) (1999–0459), received No- suant to law, the report of a rule entitled (RIN2120–AA64) (1999–0463), received Novem- vember 22, 1999; to the Committee on Com- ‘‘Airworthiness Directives; Jetstream Model ber 22, 1999; to the Committee on Commerce, merce, Science, and Transportation. BAe ATP Series Airplanes; Docket No. 99– Science, and Transportation. EC–7388. A communication from the Pro- NM–145 [11–22/11–29]’’ (RIN2120–AA64) (1999– EC–7380. A communication from the Pro- gram Analyst, Office of the Chief Counsel, 0478), received November 29, 1999; to the Com- gram Analyst, Office of the Chief Counsel, Federal Aviation Administration, Depart- mittee on Commerce, Science, and Transpor- Federal Aviation Administration, Depart- ment of Transportation, transmitting, pur- tation. ment of Transportation, transmitting, pur- suant to law, the report of a rule entitled EC–7396. A communication from the Pro- suant to law, the report of a rule entitled ‘‘Airworthiness Directives; Eurocopter gram Analyst, Office of the Chief Counsel, ‘‘Airworthiness Directives; Pratt and Whit- France Model AS–350B, B1, B2, B3, BA, and Federal Aviation Administration, Depart- ney JT9D Series Turbofan Engines; Docket D, and AS–355E, F, F1, and N Helicopters; Re- ment of Transportation, transmitting, pur- No. 95–ANE–69 [11–19/11–22]’’ (RIN2120–AA64) quest for Comments; Docket No. 99–SW–41 suant to law, the report of a rule entitled (1999–0474), received November 22, 1999; to the [11–30/12–2]’’ (RIN2120–AA64) (1999–0493), re- ‘‘Airworthiness Directives; CASA C212 and Committee on Commerce, Science, and ceived December 3, 1999; to the Committee on CN–235 Series Airplanes; Docket No. 99–NM– Transportation. Commerce, Science, and Transportation. 149 [11–22/11–22]’’ (RIN2120–AA64) (1999–0471), EC–7381. A communication from the Pro- EC–7389. A communication from the Pro- received November 22, 1999; to the Com- gram Analyst, Office of the Chief Counsel, gram Analyst, Office of the Chief Counsel, mittee on Commerce, Science, and Transpor- Federal Aviation Administration, Depart- Federal Aviation Administration, Depart- tation. ment of Transportation, transmitting, pur- ment of Transportation, transmitting, pur- EC–7397. A communication from the Pro- suant to law, the report of a rule entitled suant to law, the report of a rule entitled gram Analyst, Office of the Chief Counsel, ‘‘Airworthiness Directives; Pratt and Whit- ‘‘Airworthiness Directives; Eurocopter Federal Aviation Administration, Depart- ney JT9D Series Turbofan Engines; Docket Deutschland GmbH Model EC 135 P1 and EC ment of Transportation, transmitting, pur- No. 98–ANE–47 [1–19/1–20]’’ (RIN2120–AA64) 135 T1 Helicopters; Request for Comments; suant to law, the report of a rule entitled (2000–0029), received January 24, 2000; to the Docket No. 99–SW–74 [1–25/1–27]’’ (RIN2120– ‘‘Airworthiness Directives; Saberliner Model Committee on Commerce, Science, and AA64) (2000–0040), received January 27, 2000; NA–265–40, NA–265–60, NA–70, and NA–265–80 Transportation. to the Committee on Commerce, Science, Series Airplanes; Docket No. 99–NM–127 [11– EC–7382. A communication from the Pro- and Transportation. 22/11–22]’’ (RIN2120–AA64) (1999–0470), received gram Analyst, Office of the Chief Counsel, EC–7390. A communication from the Pro- November 22, 1999; to the Committee on Federal Aviation Administration, Depart- gram Analyst, Office of the Chief Counsel, Commerce, Science, and Transportation. ment of Transportation, transmitting, pur- Federal Aviation Administration, Depart- EC–7398. A communication from the Pro- suant to law, the report of a rule entitled ment of Transportation, transmitting, pur- gram Analyst, Office of the Chief Counsel, ‘‘Airworthiness Directives; Saab Model suant to law, the report of a rule entitled Federal Aviation Administration, Depart- SAAB SF340A, 340B, and 2000 Series Air- ‘‘Airworthiness Directives; Eurocopter ment of Transportation, transmitting, pur- planes; Docket No. 99–NM–148 [11–22/11–22]’’ Deutschland GmbH Model BO–105CB–5 and suant to law, the report of a rule entitled (RIN2120–AA64) (1999–0466), received Novem- BO–105CBS–5 Helicopters; Request for Com- ‘‘Airworthiness Directives; AlliedSignal In- ber 22, 1999; to the Committee on Commerce, ments; Docket No. 99–SW–58 [11–18/11–22]’’ strument Landing System Navigation Re- Science, and Transportation. (RIN2120–AA64) (1999–0462), received Novem- ceivers-Airbus A300 Series Airplanes and EC–7383. A communication from the Pro- ber 22, 1999; to the Committee on Commerce, Boeing Model 747 Airplanes; Request for gram Analyst, Office of the Chief Counsel, Science, and Transportation. Comments; Docket No. 99–NM–257 [11–19/11– Federal Aviation Administration, Depart- EC–7391. A communication from the Pro- 22]’’ (RIN2120–AA64) (1999–0458), received No- ment of Transportation, transmitting, pur- gram Analyst, Office of the Chief Counsel, vember 22, 1999; to the Committee on Com- suant to law, the report of a rule entitled Federal Aviation Administration, Depart- merce, Science, and Transportation. ‘‘Airworthiness Directives; Saab Model ment of Transportation, transmitting, pur- EC–7399. A communication from the Pro- SAAB SF340A, 340B Series Airplanes; Docket suant to law, the report of a rule entitled gram Analyst, Office of the Chief Counsel, No. 99–NM–200 [1–4/1–6]’’ (RIN2120–AA64) ‘‘Airworthiness Directives; de Havilland Federal Aviation Administration, Depart- (2000–0001), received January 6, 2000; to the Model DHC–8–100, –200, and –300 Series Air- ment of Transportation, transmitting, pur- Committee on Commerce, Science, and planes; Docket No. 98–NM–179 [1–26/1–27]’’ suant to law, the report of a rule entitled Transportation. (RIN2120–AA64) (2000–0048), received January ‘‘Airworthiness Directives; Aircraft Belts, in EC–7384. A communication from the Pro- 27, 2000; to the Committee on Commerce, Model CS, FM, FN, GK, GL, JD, JE, 4JT, JU, gram Analyst, Office of the Chief Counsel, Science, and Transportation. MD, ME, MM, MN,NB, PM, PN, RG, and RH Federal Aviation Administration, Depart- EC–7392. A communication from the Pro- Seat Restraint Systems; Docket No. 98–SW– ment of Transportation, transmitting, pur- gram Analyst, Office of the Chief Counsel, 33 [12–10/12–13]’’ (RIN2120–AA64) (1999–05132), suant to law, the report of a rule entitled Federal Aviation Administration, Depart- received December 13, 1999; to the Committee ‘‘Airworthiness Directives; Dornier Model ment of Transportation, transmitting, pur- on Commerce, Science, and Transportation.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S380 CONGRESSIONAL RECORD — SENATE February 7, 2000 EC–7400. A communication from the Pro- BAe 125 Series 1000A and 1000B, and Model EC–7415. A communication from the Pro- gram Analyst, Office of the Chief Counsel, Hawker 1000 Series Airplanes; Docket No. 99– gram Analyst, Office of the Chief Counsel, Federal Aviation Administration, Depart- NM–176 [11–20/12–2]’’ (RIN2120–AA64) (1999– Federal Aviation Administration, Depart- ment of Transportation, transmitting, pur- 0491), received December 3, 1999; to the Com- ment of Transportation, transmitting, pur- suant to law, the report of a rule entitled mittee on Commerce, Science, and Transpor- suant to law, the report of a rule entitled ‘‘Airworthiness Directives; Various Trans- tation. ‘‘Airworthiness Directives; Precise Flight, port Category Airplanes Equipped with Mode EC–7408. A communication from the Pro- Inc. Model SVS III Standby Vacuum Sys- ‘c’ Transponder(s) with Single Gillham Code gram Analyst, Office of the Chief Counsel, tems; Docket No. 98–CE–87 [11–30/12–2]’’ Altitude Input; Request for Comments; Federal Aviation Administration, Depart- (RIN2120–AA64) (1999–0499), received Decem- Docket No. 99–NM–328 [12–16/12–16]’’ (RIN2120– ment of Transportation, transmitting, pur- ber 3, 1999; to the Committee on Commerce, AA64) (1999–0515), received December 16, 1999; suant to law, the report of a rule entitled Science, and Transportation. to the Committee on Commerce, Science, ‘‘Airworthiness Directives; Pilatus Aircraft EC–7416. A communication from the Pro- and Transportation. Ltd. Models PC–12 and PC 12/45 Airplanes; gram Analyst, Office of the Chief Counsel, EC–7401. A communication from the Pro- Docket No. 99–CE–54 [11–26/12–2]’’ (RIN2120– Federal Aviation Administration, Depart- gram Analyst, Office of the Chief Counsel, AA64) (1999–0502), received December 3, 1999; ment of Transportation, transmitting, pur- Federal Aviation Administration, Depart- to the Committee on Commerce, Science, suant to law, the report of a rule entitled ment of Transportation, transmitting, pur- and Transportation. ‘‘Airworthiness Directives; Kaman Aerospace suant to law, the report of a rule entitled EC–7409. A communication from the Pro- Corporation Model K1200 Helicopters; Re- ‘‘Airworthiness Directives; Short Brothers gram Analyst, Office of the Chief Counsel, quest for Comments; Docket No. 99–SW–72 [1– SD3–30, SD3–60, SDS–SHERPA, and SD#–60 Federal Aviation Administration, Depart- 24/1–24]’’ (RIN2120–AA64) (2000–0037), received SHERPA Series Airplanes; Docket No. 99– ment of Transportation, transmitting, pur- January 24, 2000; to the Committee on Com- NM–154 [11–22/11–22]’’ (RIN2120–AA64) (1999– suant to law, the report of a rule entitled merce, Science, and Transportation. 0468), received November 22, 1999; to the Com- ‘‘Airworthiness Directives; CL–604 Variant of EC–7417. A communication from the Pro- mittee on Commerce, Science, and Transpor- Bombardier Model Canadair CL–600–2B16 Se- gram Analyst, Office of the Chief Counsel, tation. ries Airplanes Mod. in Accordance with Sup. Federal Aviation Administration, Depart- EC–7402. A communication from the Pro- Type Cert. SA806NM–D, SA8072NM–D, or ment of Transportation, transmitting, pur- gram Analyst, Office of the Chief Counsel, SA8086NM–D; Request for Comments; Docket suant to law, the report of a rule entitled Federal Aviation Administration, Depart- No. 2000–NM–05 [1–21/1–24]’’ (RIN2120–AA64) ‘‘Airworthiness Directives; Bell Helicopter ment of Transportation, transmitting, pur- (2000–0036), received January 24, 2000; to the Textron-Manufactured Model HH–1K, TH–1F, suant to law, the report of a rule entitled Committee on Commerce, Science, and Th–1L, UH–1A, Uh–1B, Uh–1E, UH–1F, UH–1H, ‘‘Airworthiness Directives; Short Brothers Transportation. and UH–1P Helicopters; and Southwest Flora Model SD3–3) SHERPA, AD3–SHERPA, and EC–7410. A communication from the Pro- Aviation Helicopters; Docket No. 99–SW–02 SD3–30 Series Airplanes; Docket No. 99–NM– gram Analyst, Office of the Chief Counsel, [12–8/12–13]’’ (RIN2120–AA64) (1999–0512), re- 223 [1–25/1–27]’’ (RIN2120–AA64) (2000–0038), re- Federal Aviation Administration, Depart- ceived December 13, 1999; to the Committee ceived January 27, 2000; to the Committee on ment of Transportation, transmitting, pur- on Commerce, Science, and Transportation. Commerce, Science, and Transportation. suant to law, the report of a rule entitled EC–7418. A communication from the Assist- EC–7403. A communication from the Pro- ‘‘Airworthiness Directives; The New Piper ant Secretary, Legislative Affairs, Depart- gram Analyst, Office of the Chief Counsel, Aircraft, Inc. Models PA–25, PA–25, 235, 260, ment of State, transmitting, pursuant to the Federal Aviation Administration, Depart- PA–28S–160, –180, PA–32S–300, PA–28–151, and Convention on Cultural Property Implemen- ment of Transportation, transmitting, pur- PA–28–161 Airplanes; Request for Comments; tation Act, the report of two actions taken suant to law, the report of a rule entitled Docket No. 99–CE–69 [12–14/12–16]’’ (RIN2120– in response to requests from the Republic of ‘‘Airworthiness Directives; Empressa AA64) (1999–0514) , received December 16, 1999; Cyprus and the Kingdom of Cambodia; to the Brasileira de Aeronautica SA Model EMB–135 to the Committee on Commerce, Science, Committee on Finance. and EMb–145 Series Airplanes; Docket No. and Transportation. EC–7419. A communication from the Ad- 99–NM–340 [11–20/12–2]’’ (RIN2120–AA64) (1999– EC–7411. A communication from the Pro- ministrator, Food Safety and Inspection 0494), received December 3, 1999; to the Com- gram Analyst, Office of the Chief Counsel, Service, Department of Agriculture, trans- mittee on Commerce, Science, and Transpor- Federal Aviation Administration, Depart- mitting, pursuant to law, the report of a rule tation. ment of Transportation, transmitting, pur- entitled ‘‘Food Additives for Use in Meat and EC–7404. A communication from the Pro- suant to law, the report of a rule entitled Poultry Products: Sodium Diacetate, So- gram Analyst, Office of the Chief Counsel, ‘‘Airworthiness Directives; Fairchild Model dium Acetate, Sodium Lactate and Potas- Federal Aviation Administration, Depart- F–27 and FH–227 Series Airplanes; Docket sium Lactate’’, received January 31, 2000; to ment of Transportation, transmitting, pur- No. 99–NM–143 [11–22/11–22]’’ (RIN2120–AA64) the Committee on Agriculture, Nutrition, suant to law, the report of a rule entitled (1999–0465), received November 22, 1999; to the and Forestry. ‘‘Airworthiness Directives; Gulfstream Committee on Commerce, Science, and EC–7420. A communication from the Under America Model G–73 and G–73T Series Air- Transportation. Secretary, Food, Nutrition, and Consumer planes; Docket No. 99–NM–141 [11–22/11–29]’’ EC–7412. A communication from the Pro- Services, Department of Agriculture, trans- (RIN2120–AA64) (1999–0482), received Novem- gram Analyst, Office of the Chief Counsel, mitting a report relative to the WIC Pro- ber 29, 1999; to the Committee on Commerce, Federal Aviation Administration, Depart- gram’s rating in the American Customer Science, and Transportation. ment of Transportation, transmitting, pur- Satisfaction Index; to the Committee on Ag- EC–7405. A communication from the Pro- suant to law, the report of a rule entitled riculture, Nutrition, and Forestry. gram Analyst, Office of the Chief Counsel, ‘‘Airworthiness Directives; British Aerospace EC–7421. A communication from the Ad- Federal Aviation Administration, Depart- BAe Model ATP Series Airplanes; Docket No. ministrator of the Food and Consumer Serv- ment of Transportation, transmitting, pur- 99–NM–201 [12–28/12–30]’’ (RIN2120–AA64) ice, Department of Agriculture, transmit- suant to law, the report of a rule entitled (1999–0540), received January 4, 2000; to the ting, pursuant to law, the report of a rule en- ‘‘Airworthiness Directives; Dassault Model Committee on Commerce, Science, and titled ‘‘Special Supplemental Nutrition Pro- Mystere-Falcon 50 and 900 Series Airplanes, Transportation. gram for Women, Infants and Children (WIC) Falcon 900EX Series Airplanes, and Falcon EC–7413. A communication from the Pro- Certification Integrity’’ (RIN0584–AC76), re- 2000 Series Airplanes; Docket No. 98–NM–266 gram Analyst, Office of the Chief Counsel, ceived February 3, 2000; to the Committee on [12–8/12–13]’’ (RIN2120–AA64) (1999–0511), re- Federal Aviation Administration, Depart- Agriculture, Nutrition, and Forestry. ceived December 13, 1999; to the Committee ment of Transportation, transmitting, pur- EC–7422. A communication from the Comp- on Commerce, Science, and Transportation. suant to law, the report of a rule entitled troller General of the United States, trans- EC–7406. A communication from the Pro- ‘‘Airworthiness Directives; Hartzell Pro- mitting, pursuant to law, a report relative to gram Analyst, Office of the Chief Counsel, peller, Inc. Model HD–E6C–3 Propellers; Re- General Accounting Office employees de- Federal Aviation Administration, Depart- quest for Comments; Docket No. 99–NE–18 tailed to congressional Committees; to the ment of Transportation, transmitting, pur- [12–3/12–6]’’ (RIN2120–AA64) (1999–0505), re- Committee on Governmental Affairs. suant to law, the report of a rule entitled ceived December 6, 1999; to the Committee on EC–7423. A communication from the Direc- ‘‘Airworthiness Directives; Aerospatiale Commerce, Science, and Transportation. tor, Office of Personnel Management, trans- Model ATR–42 and ATR–72 Series Airplanes; EC–7414. A communication from the Pro- mitting, pursuant to law, the report of a rule Docket No. 99–NM–144 [11–22/11–22]’’ (RIN2120– gram Analyst, Office of the Chief Counsel, entitled ‘‘Processing Garnishment Orders for AA64) (1999–0470), received November 22, 1999; Federal Aviation Administration, Depart- Child Support and/or Alimony and Commer- to the Committee on Commerce, Science, ment of Transportation, transmitting, pur- cial Garnishment of Federal Employees’ and Transportation. suant to law, the report of a rule entitled Pay’’ (RIN3206–AI91), received February 3, EC–7407. A communication from the Pro- ‘‘Airworthiness Directives; International Ero 2000; to the Committee on Governmental Af- gram Analyst, Office of the Chief Counsel, Engines AF V2500–A1 Turbofan Engines; fairs. Federal Aviation Administration, Depart- Docket No. 98–ANE–76 [12–3/12–6]’’ (RIN2120– EC–7424. A communication from the Assist- ment of Transportation, transmitting, pur- AA64) (1999–0506), received December 6, 1999; ant Legal Adviser for Treaty Affairs, Depart- suant to law, the report of a rule entitled to the Committee on Commerce, Science, ment of State, transmitting, pursuant to ‘‘Airworthiness Directives; Raytheon Model and Transportation. law, the report of the texts and background

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S381 statements of international agreements, riment of the agriculture, manufacturing, S. 2035. A bill to amend title 49, United other than treaties; to the Committee on forest products and aquaculture industries of States Code, to clarify the application of the Foreign Relations. Maine on the basis of limited scientific evi- Act popularly known as the ‘‘Death on the EC–7425. A communication from the Direc- dence; High Seas Act’’ to aviation incidents; to the tor, Office of Regulatory Management and Whereas, Maine is strongly committed to Committee on Commerce, Science, and Information, Office of Policy, Planning and the restoration of the Atlantic salmon to its Transportation. Evaluation, transmitting, pursuant to law, waters, as demonstrated through the devel- By Mr. SMITH of New Hampshire: the report of a rule entitled ‘‘Drinking Water opment of a comprehensive and cooperative S. 2036. A bill to make permanent the mor- Tribal Set-Aside Grants Guidance to Appli- Salmon Conservation Plan, which was pro- atorium on the imposition of taxes on the cants’’, received February 4, 2000; to the duced over the course of 3 years with input Internet; read the first time. Committee on Environment and Public from federal officials, relevant state depart- By Ms. SNOWE (for herself and Mr. Works. ments, local conservation groups, affected HELMS): EC–7426. A communication from the Direc- businesses, farmers and riverside residents; S. 2037. A bill to amend title XVIII of the tor, Office of Regulatory Management and and Social Security Act to extend the option to Information, Office of Policy, Planning and Whereas, since the area covered by these 8 use rebased target amounts to all sole com- Evaluation, transmitting, pursuant to law, rivers and other rivers that may be included munity hospitals; to the Committee on Fi- the report of a rule entitled ‘‘Guidance or in the listing in the future contains 1⁄3 of the nance. Project Eligibility and Design under the Re- human population of Maine and virtually all f gion IX Tribal Border Infrastructure Pro- of the aquaculture industry, all of Maine will gram’’, received February 4, 2000; to the feel the impact of the naming of the Atlantic SUBMISSION OF CONCURRENT AND Committee on Agriculture, Nutrition, and salmon to the Endangered Species List; and SENATE RESOLUTIONS Forestry. Whereas, adding the Atlantic salmon to The following concurrent resolutions the Endangered Species List in order to help EC–7427. A communication from the Acting and Senate resolutions were read, and Director, Fish and Wildlife Service, Depart- the return of the Atlantic salmon in signifi- ment of the Interior transmitting, pursuant cant numbers to Maine’s waters com- referred (or acted upon), as indicated: to law, the report of a rule entitled ‘‘Endan- promises partnership between Maine and the By Mr. SPECTER (for himself, Mr. gered and Threatened Wildlife and Plants: Federal Government, which has had a his- HARKIN, Mr. MACK, Ms. MIKULSKI, Mr. Final Rule to List Kneeland Prairie Penny- tory of good faith; and FRIST, Mr. SCHUMER, Mr. SARBANES, Cress (Thaspi californicum) as Endangered’’ Whereas, there exist many significant Ms. COLLINS, Mr. DEWINE, Mr. HUTCH- (RIN1018–AE55), received February 4, 2000; to threats to the Atlantic salmon that lie be- INSON, Ms. SNOWE, Mr. COCHRAN, and the Committee on Environment and Public yond the influence of Maine that also affect Mr. SANTORUM): Works. the prospects of long-term Atlantic salmon S. Res. 253. A resolution to express the EC–7428. A communication from the Assist- restoration to the rivers of Maine; and Sense of the Senate that the Federal invest- ant Secretary of the Army, Civil Works, Whereas, Maine is strongly committed to ment in biochemical research should be in- transmitting, pursuant to law, a report rel- the restoration of the Atlantic salmon to its creased by $2,700,000,000 in fiscal year 2001; to ative to a proposed deep draft navigation and waters, has committed millions of dollars to the Committee on Appropriations. ecosystem restoration project for Oakland its plan to produce this result and feels that f Harbor, CA; to the Committee on Environ- the naming of the Atlantic salmon to the ment and Public Works. Endangered Species List is premature; now, STATEMENTS ON INTRODUCED EC–7429. A communication from the Assist- therefore, be it BILLS AND JOINT RESOLUTIONS Resolved, That We, your Memorialists, re- ant Secretary of the Army, Civil Works, By Ms. SNOWE (for herself and transmitting, pursuant to law, a report rel- spectfully urge and request that the Presi- Mr. HELMS): ative to the construction of a flood damage dent of the United States, the Secretary of reduction project along the Rio Grande de the Interior Bruce Babbitt, the Secretary of S. 2037. A bill to amend title XVIII of Manati at Barcelona, PR; to the Committee Commerce William Daly and the Congress of the Social Security Act to extend the on Environment and Public Works. the United States reconsider the intent to option to use rebased target amounts EC–7430. A communication from the Acting include the Atlantic salmon on the Endan- to all sole community hospitals; to the Director, Office of Sustainable Fisheries, Na- gered Species List as it would benefit neither Committee on Finance. the Atlantic salmon nor the people of Maine tional Marine Fisheries Service, Department SOLE COMMUNITY HOSPITAL FAIR PAYMENT ACT and allow Maine to continue to execute its of Commerce, transmitting, pursuant to law, OF 2000 own comprehensive plan to restore the At- the report of a rule entitled ‘‘Closure for Pol- ∑ Ms. SNOWE. Mr. President, I rise lock in Statistical Area 610 of the Gulf of lantic salmon to its waters; and be it further Alaska’’, received February 7, 2000; to the Resolved, That suitable copies of this reso- today to introduce the Sole Commu- Committee on Commerce, Science, and lution, duly authenticated by the Secretary nity Hospital Fair Payment Act. This Transportation. of State, be transmitted to the President of legislation will correct an unintended EC–7431. A communication from the Acting the United States, to the President of the drafting error involving Medicare reim- Director, Office of Sustainable Fisheries, Na- United States Senate, to the Speaker of the bursements for the Sole Community tional Marine Fisheries Service, Department House of Representatives of the United Hospital program, enacted last year as of Commerce, transmitting, pursuant to law, States, to the Secretary of the Interior Bruce Babbitt, to the Secretary of Commerce part of the Medicare, Medicaid, and the report of a rule entitled ‘‘Fisheries of the SCHIP Balanced Budget Refinement Exclusive Economic Zone Off Alaska-Closure William Daley and to each Member of the for Pollock in Statistical Area 620 Outside Maine Congressional Delegation. Act (P.L. 106–113). the Shelikof Strait Conservation Area in the f Medicare designates Sole Community Gulf of Alaska’’, received February 7, 2000; to Hospitals based on factors such as iso- the Committee on Commerce, Science, and REPORTS OF COMMITTEES lated location, weather or travel condi- Transportation. The following reports of committees tions, or the absence of other hospitals f were submitted: within a 35 road-mile radius. These PETITIONS AND MEMORIALS By Mr. GRASSLEY, from the Special Com- hospitals are considered the only mittee on Aging: Special Report entitled source of inpatient services that are The following petitions and memo- ‘‘Developments in Aging: 1997 and 1998’’ reasonably available in a geographic rials were laid before the Senate and (Rept. 106–229). area. Sole Community Hospitals are re- were referred or ordered to lie on the f imbursed for services on either a fed- table as indicated: INTRODUCTION OF BILLS AND eral national standardized amount or POM–400. A joint resolution adopted by the JOINT RESOLUTIONS on a hospital-specific target amount Legislature of the State of Maine relative to that is based on either updated FY 1982 The following bills and joint resolu- the protection and restoration of the Atlan- or updated FY 1987 costs. tions were introduced, read the first tic Salmon; to the Committee on Environ- Last year, Congress passed legisla- ment and Public Works. time and second time by unanimous tion updating the federal rate reim- JOINT RESOLUTION consent, and referred as indicated: bursement level to costs based on Fis- Whereas, the Federal Government, through By Mr. SPECTER (for himself, Mr. cal Year 1996. A drafting error in the the United States Fish and Wildlife Service SANTORUM, Mr. LAUTENBERG, Mr. bill, however, unintentionally updated and the National Marine Fisheries Service, MOYNIHAN, Mr. SCHUMER, Mrs. MUR- has proposed to list the Atlantic salmon in 8 RAY, Mr. DODD, Mr. WELLSTONE, Mr. the reimbursements for hospitals that Maine rivers under the federal Endangered TORRICELLI, Mr. SARBANES, Mr. are paid on a specific rate—leaving out Species Act and has indicated a potential to INHOFE, Mr. ROBB, Ms. MIKULSKI, and 327 hospitals across the country that include additional Maine rivers to the det- Mr. GRAMM): Congress intended to help.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S382 CONGRESSIONAL RECORD — SENATE February 7, 2000 If this error had not been made S. 1086 (Mr. LEVIN) was added as a cosponsor of America’s rural hospitals would be ex- At the request of Mrs. HUTCHISON, the S. 2032, a bill to amend the Foreign As- pecting an additional $600 million over name of the Senator from Illinois (Mr. sistance Act of 1961 to address the issue five years. Without correction, the FITZGERALD) was added as a cosponsor of mother-to-child transmission of error could cost four hospitals just in of S. 1086, a bill to amend the Internal human immunodeficiency virus (HIV) my state approximately $2.84 million Revenue Code of 1986 to waive the in- in Africa, Asia, and Latin America. annually that had been anticipated come inclusion on a distribution from from this legislation. These hospitals— an individual retirement account to S. CON. RES. 76 Mayo Regional Hospital in Dover- the extent that the distribution is con- At the request of Mr. LEAHY, the Foxcroft, Down East Community Hos- tributed for charitable purposes. name of the Senator from New Jersey pital in Machias, Northern Maine Med- S. 1109 (Mr. LAUTENBERG) was added as a co- ical Center in fort Kent, and Rumford At the request of Mr. MCCONNELL, sponsor of S. Con. Res. 76, a concurrent Community Hospital in Rumford—are the name of the Senator from Indiana resolution expressing the sense of Con- a vital part of their communities and (Mr. BAYH) was added as a cosponsor of gress regarding a peaceful resolution of had expected these additional funds. S. 1109, a bill to conserve global bear the conflict in the state of Chiapas, Small hospitals across the country populations by prohibiting the impor- Mexico and for other purposes. are facing an increasingly uncertain fu- tation, exportation, and interstate ture, and we cannot afford to lose any trade of bear viscera and items, prod- S. RES. 87 more of our rural health care pro- ucts, or substances containing, or la- At the request of Mr. DURBIN, the viders. This funding is critical to these beled or advertised as containing, bear names of the Senator from New Jersey viscera, and for other purposes. small hospitals and the communities (Mr. LAUTENBERG) and the Senator S. 1446 they serve. These facilities and the pa- from Minnesota (Mr. GRAMS) were tients they serve should not be penal- At the request of Mr. LOTT, the added as cosponsors of S. Res. 87, a res- names of the Senator from Pennsyl- ized for a mistake made by Congress I olution commemorating the 60th Anni- vania (Mr. SANTORUM) and the Senator urge my colleagues to join me in sup- versary of the International Visitors from Rhode Island (Mr. L. CHAFEE) porting this legislation and I urge the Program. Senate to pass this technical correc- were added as cosponsors of S. 1446, a tion bill immediately.∑ bill to amend the Internal Revenue S. RES. 247 Code of 1986 to allow an additional ad- f At the request of Mr. CAMPBELL, the vance refunding of bonds originally names of the Senator from Mississippi ADDITIONAL COSPONSORS issued to finance governmental facili- (Mr. COCHRAN) and the Senator from S. 285 ties used for essential governmental functions. Louisiana (Ms. LANDRIEU) were added At the request of Mrs. MURRAY, her as cosponsors of S. Res. 247, a resolu- S. 1680 name was added as a cosponsor of S. tion commemorating and acknowl- 285, a bill to amend title II of the So- At the request of Mr. ASHCROFT, the name of the Senator from West Vir- edging the dedication and sacrifice cial Security Act to restore the link made by the men and women who have between the maximum amount of earn- ginia (Mr. BYRD) was added as a co- sponsor of S. 1680, a bill to provide for lost their lives while serving as law en- ings by blind individuals permitted forcement officers. without demonstrating ability to en- the improvement of the processing of gage in substantial gainful activity and claims for veterans compensation and S. RES. 248 the exempt amount permitted in deter- pensions, and for other purposes. At the request of Mr. ROBB, the S. 1756 mining excess earnings under the earn- names of the Senator from Delaware ings test. At the request of Mr. BINGAMAN, the name of the Senator from New Mexico (Mr. BIDEN), the Senator from New S. 290 Mexico (Mr. BINGAMAN), the Senator (Mr. DOMENICI) was added as a cospon- At the request of Mr. ABRAHAM, the from Georgia (Mr. CLELAND), the Sen- name of the Senator from Arizona (Mr. sor of S. 1756, a bill to enhance the abil- ity of the National Laboratories to ator from South Dakota (Mr. MCCAIN) was added as a cosponsor of S. DASCHLE), the Senator from Con- 290, a bill to establish an adoption meet Department of Energy missions and for other purposes. necticut (Mr. DODD), the Senator from awareness program, and for other pur- Florida (Mr. GRAHAM), the Senator poses. S. 1941 At the request of Mr. DODD, the from Massachusetts (Mr. KENNEDY), the S. 345 names of the Senator from West Vir- Senator from Massachusetts (Mr. At the request of Mr. ALLARD, the ginia (Mr. BYRD) and the Senator from KERRY), the Senator from Wisconsin name of the Senator from West Vir- Vermont (Mr. LEAHY) were added as co- (Mr. KOHL), the Senator from Nevada ginia (Mr. ROCKEFELLER) was added as sponsors of S. 1941, a bill to amend the (Mr. REID), the Senator from New York a cosponsor of S. 345, a bill to amend Federal Fire Prevention and Control (Mr. SCHUMER), the Senator from Penn- the Animal Welfare Act to remove the Act of 1974 to authorize the Director of sylvania (Mr. SPECTER), and the Sen- limitation that permits interstate the Federal Emergency Management ator from New Jersey (Mr. TORRICELLI) movement of live birds, for the purpose Agency to provide assistance to fire de- were added as cosponsors of S. Res. 248, of fighting, to States in which animal partments and fire prevention organi- a resolution to designate the week of fighting is lawful. zations for the purpose of protecting May 7, 2000, as ‘‘National Correctional S. 861 the public and firefighting personnel Officers and Employees Week.’’ At the request of Mr. DURBIN, the against fire and fire-related hazards. S. RES. 251 name of the Senator from Indiana (Mr. S. 1946 BAYH) was added as a cosponsor of S. At the request of Mr. INHOFE, the At the request of Mr. SPECTER, the 861, a bill to designate certain Federal name of the Senator from Nevada (Mr. names of the Senator from Connecticut land in the State of Utah as wilderness, REID) was added as a cosponsor of S. (Mr. LIEBERMAN), the Senator from Or- and for other purposes. 1946, a bill to amend the National Envi- egon (Mr. WYDEN), the Senator from S. 1020 ronmental Education Act to redesig- New Mexico (Mr. DOMENICI), the Sen- At the request of Mr. GRASSLEY, the nate that Act as the ‘‘John H. Chafee ator from Texas (Mrs. HUTCHISON), the names of the Senator from Connecticut Environmental Education Act,’’ to es- Senator from Alabama (Mr. SHELBY), (Mr. LIEBERMAN) and the Senator from tablish the John H. Chafee Memorial the Senator from Hawaii (Mr. INOUYE), Idaho (Mr. CRAIG) were added as co- Fellowship Program, to extend the pro- and the Senator from Maine (Ms. sponsors of S. 1020, a bill to amend grams under that Act, and for other SNOWE) were added as cosponsors of S. chapter 1 of title 9, United States Code, purposes. Res. 251, a resolution designating to provide for greater fairness in the S. 2032 March 25, 2000, as ‘‘Greek Independence arbitration process relating to motor At the request of Mr. MOYNIHAN, the Day: A National Day of Celebration of vehicle franchise contracts. name of the Senator from Michigan Greek and American Democracy.’’

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S383 SENATE RESOLUTION 253—TO EX- Whereas approximately one out of every oratory equipment, for computers, for PRESS THE SENSE OF THE SEN- six American men will develop prostate can- teacher training depending upon what ATE THAT THE FEDERAL IN- cer and over 40,000 men will die from pros- the needs are in the local school dis- tate cancer each year; VESTMENT IN BIOCHEMICAL RE- Whereas diabetes, both insulin and non-in- trict. SEARCH SHOULD BE INCREASED sulin forms, afflict 16 million Americans and Last year, we had a considerable BY $2,700,000,000 IN FISCAL YEAR places them at risk for acute and chronic amount of controversy on the Presi- 2001 complications, including blindness, kidney dent’s program for new teachers, a failure, atherosclerosis and nerve degenera- Mr. SPECTER (for himself, Mr. HAR- commendable objective, but it may tion; KIN, Mr. MACK, Ms. MIKULSKI, Mr. Whereas the emerging understanding of well be that there are many school dis- FRIST, Mr. SCHUMER, Mr. SARBANES, the principles of biomimetrics have been ap- tricts where the needs for some alter- Ms. COLLINS, Mr. DEWINE, Mr. HUTCH- plied to the development of hard tissue such native programs are more pressing INSON, Ms. SNOWE, Mr. COCHRAN, and as bone and teeth as well as soft tissue, and there. So I express a concern about the Mr. SANTORUM) submitted the following this field of study holds great promise for budget with its increased spending up resolution; which was referred to the the design of new classes of biomaterials, to $1.835 trillion, and the mandate of a Committee on Appropriations: pharmaceuticals, diagnostic and analytical great many new programs which have reagents; S. RES. 253 Whereas research sponsored by the Na- not been authorized by the appropriate Whereas past investments in biomedical tional Institute of Health will map and se- authorizing committees in the Con- research have resulted in better health, an quence the entire human genome by 2003, gress. improved quality of life for all Americans leading to a new era of molecular medicine When it comes to the question of and a reduction in national health care ex- that will provide unprecedented opportuni- paying for these programs, the Presi- penditures; ties for the prevention, diagnoses, treat- Whereas the Nation’s commitment to bio- ment, and cure of diseases that currently dent has proposed raising the caps by medical research has expanded the base of plague society; some $62 billion, but it is highly ques- scientific knowledge about health and dis- Whereas the fundamental way science is tionable whether that raise in the caps ease and revolutionized the practice of medi- conducted is changing at a revolutionary will accommodate all the programs cine; pace, demanding a far greater investment in which he has proposed. I think there is Whereas the Federal Government rep- emerging new technologies, research train- agreement between the Congress and resents the single largest contribution to ing programs, and in developing new skills the administration that Social Secu- biomedical research conducted in the United among scientific investigators; and States; Whereas most Americans show over- rity and Medicare have to be kept in- Whereas biomedical research continues to whelming support for an increased Federal violate and that there not be expendi- play a vital role in the growth of this Na- investment in biomedical research: Now, tures which would threaten Social Se- tion’s biotechnology, medical device, and therefore, be it curity. pharmaceutical industries; Resolved, On the face and on the figures, the Whereas the origin of many of the new SECTION 1. SHORT TITLE. drugs and medical devices currently in use is This resolution may be cited as the ‘‘Bio- President’s budget does not invade So- based in biomedical research supported by medical Revitalization Resolution of 2000’’. cial Security, but there is the lurking the National Institutes of Health; SEC. 2. SENSE OF THE SENATE. possibility that Social Security could Whereas women have traditionally been It is the sense of the Senate that funding be invaded with the tremendous num- under represented in medical research proto- for the National Institutes of Health should ber of new programs which the Presi- cols, yet are severely affected by diseases in- be increased by $2,700,000,000 in fiscal year dent has proposed. cluding breast cancer, which will kill over 2001 and that the budget resolution appro- 43,300 women this year, ovarian cancer which priately reflect sufficient funds to achieve Last year, when the President came will claim another 14,500 lives; and this objective. forward with his budget, he had pro- osteoporosis and cardiovascular disorders; Mr. SPECTER. Mr. President, this posals for some $18 billion in offsets: Whereas research sponsored by the Na- Federal tobacco revenues of $6 billion, tional Institutes of Health is responsible for morning President Clinton announced the budget for the administration for FAA user fees of $1 billion, and so on, the identification of genetic mutations relat- down to some $18 billion, none of which ing to nearly 100 diseases, including Alz- fiscal year 2001. It has a large number heimer’s disease, cystic fibrosis, Hunting- of new programs and has a very sub- materialized. So when we take a look ton’s disease, osteoporosis, many forms of stantial increase in spending, up to at the President’s proposed offsets, we cancer, and immune deficiency disorders; $1.835 trillion. In examining the budget have to take them with more than a Whereas many Americans still face serious as to its applicability to the Depart- grain of salt as to whether they ever and life-threatening health problems, both will materialize. acute and chronic; ments of Labor, Health, Human Serv- Whereas neurodegenerative diseases of the ices and Education on items which I The President has proposed this year elderly, such as Alzheimer’s and Parkinson’s chair, the appropriations sub- to have offsets for penalties for tobacco disease threaten to destroy the lives of mil- committee, I am concerned about the companies where they fail to live up to lions of Americans, overwhelm the Nation’s number of new programs. the reduction on teenage smoking. The health care system, and bankrupt the Medi- On Education, there are 19 new pro- administration’s budget will cut youth care and Medicaid programs; grams. In the Department of Labor, smoking in half by charging the to- Whereas 2.7 million Americans are cur- there are nine new programs. It is a bacco industry an assessment for every rently infected with the hepatitis C virus, an insidious liver condition that can lead to in- matter of concern when the President underage smoker, with an estimated flammation, cirrhosis, and cancer as well as proposes programs which have man- penalty of $3,000 for each underage liver failure; dates directing the local school dis- smoker. It does not pick up until some Whereas 297,000 Americans are now suf- tricts as to what they should be doing of the out years. fering from AIDS and hundreds of thousands without giving discretion to local This is an illustration of where the more with HIV infection; school districts as to specific needs Whereas cancer remains a comprehensive President is proposing alleged cuts which they might have which might be which may well never materialize. threat to any tissue or organ of the body at in a somewhat different category. For any age, and remains a top cause of mor- There is one item where the Clinton bidity and mortality; example, this year the 19 new programs will increase expenditures by $2 billion administration budget is not ade- Whereas the extent of psychiatric and neu- quately funded, and that is for the Na- rological diseases poses considerable chal- 951 million—almost $3 billion. Let’s put lenges in understanding the workings of the it that way, round it up a little bit. tional Institutes of Health. In 1997, the brain and nervous system; Within these programs, there is a sense-of-the-Senate resolution called Whereas recent advances in the treatment new program for school renovation of for a doubling of the NIH budget over a of HIV illustrate the promise research holds $1.3 billion. While there may be some 5-year period. for even more effective, accessible, and af- merit to that specific kind of program, During the course of the last 3 years, fordable treatments for persons with HIV; Whereas infants and children are the hope it may well be that the local school very substantial advances have been of our future, yet they continue to be the district could better use that money, made on funding for the National Insti- most vulnerable and under served members depending upon local needs, for mat- tutes of Health, although we are not of our society; ters such as a science program, for lab- quite yet on target. That has been a

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S384 CONGRESSIONAL RECORD — SENATE February 7, 2000 real battle because although the Sen- for the National Institutes of Health, Committee. Despite this amendment’s ate passed a sense-of-the-Senate reso- to keep us on track to double NIH defeat by a vote of 47–52, we were able lution in 1997 calling for doubling with- funding by 2002. Specifically, the reso- to provide, through the maximization in 5 years, when the issue has come be- lution which we are offering today of our limited resources, a $2.3 billion fore the budget resolution on amend- calls for the fiscal year 2001 Budget increase for fiscal year 2000—truly an ments sponsored by Senator HARKIN, Resolution to include an additional $2.7 historic accomplishment. who is the ranking Democrat, and my- billion in the health account, to be al- In 1981, when I was first elected to self as chairman of the relevant appro- located for biomedical research at the the Senate, NIH funding was less than priations subcommittee, those in- National Institutes of Health. $3.6 billion; for fiscal year 2000, it is creases in funding have been rejected. As chairman of the Appropriations $17.9 billion, a 95% inflation-adjusted But with a sharp pencil and with very Subcommittee for Labor, Health and increase. Through several years and substantial help from staff on alloca- Human Services, Education and Re- several Subcommittee Chairs—Senator tion of funding, we have succeeded in lated Agencies, I have said many times Weicker, Senator CHILES, Senator HAR- increasing the funding for the National that the National Institutes of Health KIN, and myself—the budgets were al- Institutes of Health by more than $5 is the crown jewel of the Federal Gov- ways tight and frequently faced Ad- billion over the last 3 years. ernment—perhaps the only jewel of the ministration-proposed cuts. Still, we Three years ago, the Senate passed Federal government. We all remain en- managed to increase NIH funding tre- an increase of $950 million. It was pared thralled by the advances realized by mendously. This resolution seeks to re- down somewhat in conference to $907 the National Institutes of Health, iterate the intent of the Senate to dou- million. Two years ago, we increased which has spawned innumerable break- ble our investment in the National In- NIH funding by some $2 billion, and throughs in our knowledge and treat- stitutes of Health: we must provide $2.7 last year we increased National Insti- ment for diseases such as cancer, Alz- billion to stay on track to reach that tutes of Health funding by $2.3 billion. heimer’s disease, Parkinson’s disease, goal. I believe that this goal can be It is true the National Institutes of severe mental illnesses, diabetes, achieved if we make the proper alloca- Health is the crown jewel of the Fed- osteoporosis, heart disease, and many tion of our resources. eral Government. In fact, it may be the others. It is clear that a substantial in- Our investment has resulted in tre- only jewel of the Federal Government. vestment in the NIH is crucial to allow mendous advances in medical research. This year, with a long list of cospon- the continuation of these advances into A new generation of AIDS drugs are re- sors who are being added incrementally the next decade. ducing the presence of the AIDS virus each day—and I expect quite a few On May 21, 1997, the Senate passed a in HIV infected persons to nearly more by the end of the day, and more Sense of the Senate resolution sub- undetectable levels. Death rates from even before Senator HARKIN, the prin- mitted by our distinguished colleague, cancer have begun a steady decline. cipal cosponsor, and I offer this for a Senator MACK, which stated that fund- The human genome is on track to be 90 budget resolution—we are proposing an ing for the National Institutes of percent mapped by this spring, and increase in funding of $2.7 billion, Health should be doubled over five fully sequenced by 2003. We are seeing which is the minimal amount nec- years. Regrettably, even though that the advent of a relatively new field of essary to keep funding for the National resolution was passed by an over- pharmacogenomics, which seeks to Institutes of Health on a track to ap- whelming vote of 98 to nothing, when solve whether there is something about proximate the goal of doubling NIH the budget resolution was considered an individual’s genetic instructions funding over the 5-year period. on the Senate floor, the appropriate which prevent them from metabolizing In addition to Senator HARKIN and health account had a reduction of $100 a particular drugs as intended. In es- myself, we have cosponsorship by Sen- million. That led to the introduction of sence, drugs may soon be designed to ator MACK, Senator MIKULSKI, Senator an amendment to the resolution by fit the patient’s genetic makeup. I anx- FRIST, Senator SCHUMER, Senator COL- myself and Senator HARKIN. We sought iously await the results of all of these LINS, Senator DEWINE, Senator SAR- to add in $1.1 billion to carry out the avenues of remarkable research. BANES, and Senator HUTCHINSON. The expressed sense of the Senate. Our I, like millions of Americans, have advances which have been made by NIH amendment, however, was defeated 63– benefitted tremendously from the in- over the course of the past several 37. We were extremely disappointed vestment we have made in the National years have truly been astounding with that while the Senate had expressed its Institutes of Health. But to continue the projection that Parkinson’s may be druthers on a resolution, they were that commitment takes actual dollars, on the verge of being solved within a 5- simply unwilling to put up the actual not just the discussion of dollars. That year period, enormous advances on Alz- dollars to accomplish this vital goal. is why we offer this resolution today— heimer’s, enormous advances on a vari- The following year, during debate on to call upon the Budget Committee to ety of cancer problems—breast cancer, the fiscal year 1999 Budget Resolution, add $2.7 billion to the health accounts prostate cancer, cervical cancer—enor- Senator HARKIN and I again introduced so we can carry forward the important mous advances on heart disease. As a an amendment which called for a $2 bil- work of the National Institutes of capital investment in the health of lion increase for the National Insti- Health. America, there is no better investment. tutes of Health, and which provided f As a capital investment for cutting sufficient resources in the budget to AMENDMENTS SUBMITTED costs for Medicare and Medicaid, there accomplish this. While we gained more is no better investment. support on this vote than in the pre- Last year, the Clinton administra- vious year, our amendment was again NORTHERN MARIANA ISLANDS tion proposed an increase of some $300 defeated, this time by a vote of 57–41. COVENANT IMPLEMENTATION ACT million which was far under the mark. Not to be deterred, Senator HARKIN and That was raised by Congress to $2.3 bil- I again went to work with our Sub- lion and signed into law by the Presi- committee and we were able, by mak- MURKOWSKI (AND AKAKA) dent. ing economies and establishing prior- AMENDMENT NO. 2807 This year, I think, noting the strong ities, to add an additional $2 billion to Mr. MURKOWSKI (for himself and congressional support, the administra- the NIH account for fiscal year 1999, Mr. AKAKA) proposed an amendment to tion has proposed an increase of $1 bil- which at the time was the largest in- the bill (S. 1052) to implement further lion in NIH funding, but that, too, is crease in history. the Act (Public Law 94–241) approving short of the mark on meeting the ob- Most recently, for fiscal year 2000, the Covenant to Establish a Common- jective of doubling NIH funding within Senator HARKIN and I again introduced wealth of the Northern Mariana Islands a 5-year period. an amendment to the Budget Resolu- in Political Union with the United I have sought recognition today to tion which would have added $1.4 bil- States of America, and for other pur- submit, with my distinguished col- lion to the health accounts, over and poses; as follows: league Senator HARKIN, an important above the $600 million which had been On page 29, lines 20–21, strike ‘‘regard to’’ resolution calling for increased funding already been provided by the Budget and insert ‘‘counting against’’.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S385 On page 34, lines 7–8, strike ‘‘to be made forces with Microsoft and a number of ondary Education Act, I also have available during the following fiscal year’’ other companies to train 100,000 of our made teacher training the centerpiece and insert ‘‘that will not count against the elementary and secondary school of my proposal for reauthorization of numerical limitations’’. teachers in how to use information the Education Technology programs in On page 34, strike line 15 and all that fol- lows through page 35, line 4. technology to improve what our kids ESEA—‘‘S. 1604: the Technology for On page 34, strike ‘‘(C)’’ and insert ‘‘(B)’’. learn. Intel will invest $100 million in Teaching Act.’’ Even with the contin- On page 35, strike line 20 and all that fol- this project and Microsoft will con- ued commitment of companies like lows through page 36, line 18. tribute more than $300 million in soft- Intel, we must provide federal support On page 36, strike ‘‘(E)’’ and insert ‘‘(C)’’. ware, its largest donation ever. Intel and leadership for technology training On page 37, strike line 3 and all that fol- and its partners deserve to be strongly for all teachers in all fifty states. lows through page 38, line 9. commended by the Senate and the Con- Intel’s ‘‘Teach to the Future’’ project On page 38, strike line 10 and all that fol- gress for their forward thinking efforts. is an outstanding example of good cor- lows through line 24. The goal of Intel’s Teach to the Fu- On page 39, line 1, strike ‘‘(I)’’ and insert porate citizenship; one that should be ‘‘(D)’’. ture Program is to train 100,000 Amer- instructive for politicians, educators, On page 40, line 6, strike ‘‘and reviewable’’. ican teachers in 1,000 days. This year and corporations across the nation. On page 41, lines 3–6, strike ‘‘The deter- Intel will make grants to 5 regional Intel and its corporate partners clearly mination as to whether a further extension training agencies in Northern Cali- recognize that—just as information is required shall not be reviewable.’’. fornia, Oregon, Texas, and Arizona that technology has revolutionized the On page 41, lines 20–21, strike ‘‘The deci- will each train 100 Master Teachers in workplace and the marketplace—it sion by the Attorney General shall not be re- a 40-hour curriculum on effectively ap- also promises to transform the school- viewable.’’. plying computer technology to im- On page 42, lines 6–7, strike ‘‘The deter- house. Perhaps, more importantly, mination by the Attorney General shall not prove student learning. This award- however, these companies recognize be reviewable.’’. winning curriculum was developed over that we must transform the school- On page 45, line 16, strike line 16 and all the last two years by the Institute for house in order to continue the eco- that follows through page 46, line 10. Computer Technology; over 80% of the nomic revolution. We in Congress must On page 46, line 11, strike ‘‘(h)’’ and insert teachers who’ve been trained by it felt support their efforts by increasing the ‘‘(g)’’. that it enhanced their student’s learn- federal commitment to educational On page 46, line 20, strike ‘‘(i)’’ and insert ing. These 500 Master Teachers will re- technology and teacher training in this ‘‘(h)’’. turn to their school districts, embed- ∑ On page 47, line 3, strike ‘‘(j)’’ and insert area. ‘‘(i)’’. ding the expertise locally by training f On page 47, line 9, strike ‘‘regard to’’ and an additional 20 teachers. By the end of this year, 10,000 teachers will be PRAISING FORD MOTOR COMPANY insert ‘‘counting against’’. FOR COMPUTER DONATIONS TO On page 47, line 14, strike ‘‘(C) through trained. Next year, the program will (H)’’ and insert ‘‘(B) and (C)’’. expand to include my home state of EMPLOYEES On page 48, line 5, strike ‘‘five-year’’ and New Mexico, along with Washington ∑ Mr. ABRAHAM. Mr. President, I rise insert ‘‘four-year’’. State, Massachusetts, Utah, Southern today to praise Ford Motor Company’s On page 48, line 9, strike ‘‘5-year’’ and in- California, Washington, DC, and else- president and chief executive, Mr. sert ‘‘four-year’’. Jacques Nasser, and Ford Motor Com- On page 48, line 18, strike ‘‘five years’’ and where in order to train 40,000 teachers. insert ‘‘four years’’. Finally, the program will again expand pany’s unprecedented gift of a home On page 48, line 23 and all that follows to train 50,000 teachers in 2002. computer, color printer and unlimited through page 49, line 4. We have been working hard on the access to the Internet to each and On page 49, line 5, strike ‘‘(3)’’ and insert federal, state, and local levels to pro- every one of Ford’s 350,000 thousand ‘‘(2)’’. vide schools with computers, software employees worldwide. On page 49, line 10, strike ‘‘(4)’’ and insert and access to the Internet. I authored Through this act, Ford Motor Com- ‘‘(3)’’. several programs in the Elementary pany has shown that it has truly recog- On page 49, between lines 21 and 22, insert and Secondary Education Act in 1994 nized the need to provide all Americans the following new subsection: that have gone a long way toward with computer and Internet access. Not ‘‘(k) STATUTORY CONSTRUCTION.—Nothing in this section may be construed to count these goals. Studies of the existing a single Ford employee will be left out the issuance of any visa to an alien, or the uses of technology in schools dem- of Ford’s initiative to provide its peo- grant of any admission of an alien, under onstrate, however, that these invest- ple with access to the Information Age. this section toward any numerical limitation ments have not been optimized because To its great credit, Ford has recognized contained in the Immigration and Nation- teachers have not been adequately that competing in today’s high-tech ality Act.’’. trained in its use—particularly its cur- global marketplace means doing every- f riculum-based use. The availability of thing possible to secure and train a skilled and informed workforce. NOTICE OF HEARING hardware is irrelevant if teachers are not properly trained, because it’s What is more, Mr. President, Ford COMMITTEE ON SMALL BUSINESS teachers who teach, not technology. has recognized that any company that Mr. BOND. Mr. President, I wish to Only 20% of today’s teachers feel wants to continue to succeed must see announce that the Committee on Small really prepared to use technology in to it that everyone in its workforce, Business will hold a hearing entitled the classroom. Given the dynamic na- and not just a select few ‘‘specialists’’ ‘‘The President’s Fiscal Year 2001 ture of technology and the influx of be fully plugged in to the Information Budget Request for the Small Business new teachers we expect to enter the Age. Administration.’’ The hearing will be classroom in the next few years, it’s Mr. President, there is a growing dig- held on Thursday, February 24, 2000, be- easy to see how this problem could get ital divide in this country. Although ginning at 9 a.m. in room 428A of the worse if we don’t focus on it. The aver- over 40 percent of all households owned Russell Senate Office Building. age school spends less—often signifi- computers and one-quarter had Inter- f cantly less—than 1% of its technology net access by the end of 1998, figures funds on training. The Department of show a disturbing and significant gap ADDITIONAL STATEMENTS Education, the CEO Forum and other between two growing classes: the tech- experts have determined that the ap- nical haves and the technical have- propriate investment should be closer nots. This divide is defined by income INTEL’S TEACH TO THE FUTURE to 30%. and education levels, race and geo- PROGRAM In response to this need, I have graphical location. ∑ Mr. BINGAMAN. Madam President, I worked closely with Senator Murray to Household with incomes of $75,000 wanted to take a few minutes to talk secure funding for a pre-service tech- and greater are more than twenty about an exciting new project that was nology training program in the edu- times more likely to have Internet ac- announced recently—Intel’s ‘‘Teach to cation budget. As we approach reau- cess in the home than households in the Future’’ program. Intel has joined thorization of the Elementary and Sec- the lowest income levels. Wealthier

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S386 CONGRESSIONAL RECORD — SENATE February 7, 2000 families are nine times as likely to Leapfrogging across the ‘‘digital divide’’ The $5 fee is largely symbolic. It hearkens have a computer in the home. Whites that some fear separates wealthy computer back to 1914, when Henry Ford, the com- are more likely than African Ameri- users from people unable to afford them, pany’s founder, introduced the then-revolu- cans or Hispanics to have Internet ac- Ford is the first major company to offer tionary industrial wage of $5 a day. Chair- every employee, from the loading dock to man Bill Ford, Henry’s grandson, said the $5- cess from any location, including work the boardroom, the tools to participate in a-month computer offer is equally revolu- and the home. In addition, where a the Information Age. tionary. family lives can impact the likelihood ‘‘It is clear that individuals and companies The base computer will have a 500-mega- of having computer and Internet ac- that want to be successful in the 21st cen- hertz Intel Celeron chip, 64 megabytes of cess, regardless of income level. Ameri- tury will need to be leaders in using the RAM, a 4.3 gigabyte hard disk, CD–ROM cans living in rural areas are lagging Internet and related technology. That is drive, 15-inch monitor, speakers and a what this program is all about,’’ Chairman modem. The printer will be a color inkjet. behind in Internet access. Even at the Hardware will start going out to Ford em- lowest income levels, households in Bill Ford said. Ford, the nation’s second-biggest company ployees in April. All Ford employees who urban areas are more than twice as in terms of revenue, is betting the estimated want to participate in the program should likely as their rural counterparts to $300 million cost of the program will be receive the necessary equipment within 12 have Internet access. quickly offset by gains in making all its em- months, according to the company and UAW We are all aware that the increasing ployees computer literate. officials. dominance of computers throughout ‘‘We’re committed to serving consumers Hewlett-Packard sold 7.6 million personal the workplace demands computer pro- better by understanding how they think and computers worldwide last year, 4 million in the United States. If 300,000 Ford employees ficiency. Right now, 60 percent of all act,’’ said Jacques Nasser, Ford’s president and chief executive. ‘‘Having a computer and take advantage of the program, as Hewlett- jobs require high-tech skills. Mr. Presi- Packard projects, the deal would represent dent, it is only through readily avail- Internet access in the home will accelerate development of these skills, provide informa- nearly 4 percent of the company’s worldwide able access and consistent use of com- tion across our businesses, and offer opportu- computer sales. Weis said yesterday that it puters and technology that Americans nities to streamline our processes.’’ was one of the biggest single computer sales will gain the skills necessary to par- Ford said it may offset some of its costs by contracts for the company. ticipate and succeed in the New Econ- selling advertisements to run on the Internet Over the past year, Ford has moved aggres- sively to establish itself as the e-business service its employees will use. But even with omy. And, it is only through a skilled leader, at least in the automotive industry. that, the ambitious program appears unique and educated workforce that the Under Nasser’s prompting, the company has in corporate America. Even Microsoft Corp. United States will continue to main- entered into deals with Oracle Corp. to use has nothing similar. And Hewlett-Packard tain its dominance in the New Econ- the Internet to speed up transactions and cut Co., which is supplying the hardware under costs in dealing with suppliers. The company omy. contract with Ford, provides computers only has also struck deals with Microsoft Corp., That means, Mr. President, that we to employees who need them for work. CarPoint and Yahoo Inc. to help customers cannot afford to leave anyone behind in The program results from a contract set- shop for cars and trucks and other Ford-pro- our journey into the New Economy. We tlement negotiated last year between the vided automotive services. will need everyone to help us face the automaker and the United Auto Workers Ford announced another agreement tasks ahead. I take this challenge seri- union. But Nasser said the computer pro- Wednesday, this one with UPS Logistics ously. That is why my New Millennium gram would cover all employees, even those Group, to drastically reduce the delivery Classrooms Act would give businesses not represented by the UAW. ‘‘We’re not times of components to Ford factories and increased incentives to donate used but leaving out anyone,’’ Nasser said. products to consumers. Edward Hay, president of UAW Local 919 at Organized labor is getting into the low- still highly useful computers to our the Ford pickup-truck plant in Norfolk, schools. It’s unconscionable that 32 price computer business with the creation called the computer plan a ‘‘really good last fall of Workingfamily.com, which has al- percent of public schools have only one thing. The way the modern world is going, ready signed up more than a dozen unions classroom with access to the Internet it’s all going to be about computers and representing approximately half the 13 mil- when U.S. businesses are trying to fig- we’ve got to get up to speed.’’ lion members of the AFL–CIO. But the low- ure out what to do with literally mil- Many members of the local put off buying est price the unions have come up with so far lions of used computers. It’s also bad computers at Christmas in anticipation of a is $8 a week. policy. Ford computer program. But Hay said no one We need to get everyone onto the in- on the local predicted the deal would be this [From the Detroit News, Feb. 4, 2000] good. UAW officials said the local predicted formation superhighway. And I strong- FREE PCS GIVE FORD WEB EDGE—COMPUTERS, the deal would be this good. UAW officials INTERNET ACCESS PUT WORKERS IN HIGH- ly believe, Mr. President, that Ford’s said they have talked to both General Mo- exceptional program will help us in TECH AGE tors Corp. and DaimlerChrysler AG about (By Mark Truby) that effort. It will ensure access to the similar deals, but officials at those compa- fundamental tools of the digital econ- nies said they now have no plans to follow DETROIT.—In announcing plans to offer Ford. The three U.S. automakers, however, personal computers and Internet access to omy, and that is one of the most sig- all Ford Motor Co. employees for $5 a month, have in the past tended to match each oth- nificant investments in our country Chairman William Clay Ford Jr. evoked his that we can make. Ford’s initiative not ers’ benefits programs. There are no strings attached to the com- great-grandfather’s decision to pay employ- only benefits their immediate work- puter deal for individual employees and no ees $5 a day. For sheer impact, it may not match Henry force, but their families and our great- requirement that the PCs be used for work. Ford’s seminal 1914 wage decision that gave er communities. I would encourage all Both Ford and UAW officials said there will assembly line workers the wherewithal to of our companies to look closely at be no monitoring of how employees use their buy the product they built. Ford’s contributions and the over- computers or Internet access. But the world’s No. 2 automaker is making whelming good it creates. Company sources said the price tag could a bold statement—unprecedented in the in- Again, please allow me to commend be as much as $300 million over three years, dustrial world—about its commitment to Mr. Nasser and Ford Motor Co, for but Ford officials declined to confirm that. electronic connectivity. their dedication and invaluable con- Ford last year netted $7.2 billion. It has an- With a dizzying series of alliances with other $28 billion in the bank. high-technology companies in recent weeks, tribution. In the United States, Ford workers will I ask that the full texts of the Feb- Ford already has committed to using the pay $5 a month for the basic package put to- World Wide Web to revamp trade with sup- ruary 4, 2000 Washington Post and De- gether by San Francisco-based PeoplePC Inc. pliers, connect drivers to the Internet and troit News articles be printed in the Hewlett-Packard Corp. will supply the com- communicate with dealers and buyers. RECORD immediately following my puters and printers, and Fairfax-based Now, in offering entry to cyberworld statement. UUNet Technologies Inc., a subsidiary of cheaply to 350,000 employees worldwide, Ford The articles follow: MCI WorldCom Inc., will provide the Inter- is seeking to change its corporate culture— [From the Washington Post, Feb. 4, 2000] net access. and at cyberspeed. After three years—and a total payment of ‘‘Jac Nasser (Ford’s chief executive) is FORD OFFERS HOME PC TO EVERY EMPLOYEE $180 per employee—the hardware will be the working very hard to drive an e-culture into (By Warren Brown and Frank Swoboda) worker’s property, though Ford officials said the economy,’’ said David Cole, the Univer- Ford Motor Co. said yesterday that it will it isn’t clear yet if employees will have to sity of Michigan’s top auto expert. provide every one of its 350,000 employees continue to pay for Internet access. ‘‘When Nasser talks about Ford becoming worldwide with home computers, color print- Elsewhere in the world, the monthly fee an e-company, he is not talking about inani- ers and unlimited access to the Internet for will be adjusted for household incomes and mate objects. He is talking about people of as little as $5 a month. living standards. Ford.’’

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IDEA BORN IN ’99 Transportation. ‘‘It’s really very clearly out- high; the federal budget surplus is positive The idea first emerged during negotiations of-the-box thinking. They are really going for the first time since the sixties; and even last year between Ford and the United Auto beyond what you would expect from a com- the poverty rate has edged downward with Workers, UAW President Stephen Yokich pany that really watches their pennies.’’ fewer children living in poverty today than said. An arrangement in which Ford and While the primary goal is to create a com- at any time since 1980.1 Among the industri- UAW would share the cost was originally puter-savvy, Internet-oriented workforce, alized economies of the world, the United floated. Ford expects to enjoy the ancillary benefit of States has emerged from a period of heavy Nasser instead decided Ford would foot the goodwill with its employees. corporate restructuring and deregulation, bill alone and the company would offer the ‘‘It’s like a reward to employees,’’ Cole and stands vibrant and flexible, leading the computers and Internet service to the com- said. ‘‘It’s a nice surprise.’’ world in technological innovation. pany’s 100,000 hourly workers in the United UAW MEMBERS HAIL MOVE According to our national leaders, signifi- cant social goals have also been accom- States, 100,000 salaried employees worldwide At a news conference announcing the pro- plished during this period. Over the last half and 150,000 hourly employees outside the gram Thursday, UAW members asked de- decade, a profound transformation of our so- United States. tailed questions about the computers’ capa- cial welfare system has occurred as key ele- Workers at Visteon Automotive Systems, bilities and features, and said some of their ments of the New Deal framework have been the auto-parts unit that Ford wants to spin fellow employees were considering delaying replaced by time-limited public assistance off later this year, will be eligible, as will retirement until they get their computers. and an arrangement in which states have employees at Ford’s Volvo and Jaguar units. ‘‘It’s very much in the conversation of Ford hasn’t decided whether to extend the great flexibility over the design and imple- folks around here,’’ said Tim Devine, a law- offer to employees of Mazda Motor Corp., mentation of their welfare programs. Con- yer who works in Ford’s Office of General which is controlled by Ford. gressional intent to reduce the number of Counsel. COMPANY IS COMMITTED ‘‘My wife and I were fairly skeptical about poor families receiving government benefits ‘‘It is clear that individuals and companies the Internet at first and we have sort of sur- has been achieved in a remarkably short pe- that want to be successful in the 21st cen- prised ourselves by how useful we find it,’’ riod of time. The percentages of Americans tury will need to be leaders in using the Devine said. currently on welfare (2.7%) or receiving food Internet and related technologies,’’ Ford said ‘‘I think the same thing will happen and stamps (6.6%) are at historic lows: for wel- at a press conference. ‘‘That is what this pro- the company ends up with families whose fare cash assistance, the participation rate is gram is all about.’’ lives are enriched.’’ the lowest in more than three decades while Nasser said the company is committed to the food stamp participation rate is the low- f serving consumers better by understanding est since 1978 (‘‘Green Book’’, 1998). how they think and act. ‘‘Having a computer REPORT FROM THE CENTER ON The hallmark of these economic and policy and Internet access in the home will accel- HUNGER AND POVERTY accomplishments, however, is paradox. Be- neath the surface of almost unparalleled eco- erate the development of these skills,’’ he ∑ said. Mr. KENNEDY. Mr. President, re- nomic vitality and the touted ‘‘success’’ of General Motors Corp. and DaimlerChrysler cently, Tufts University’s Center on the 1996 welfare reform law lie deep con- AG have not announced any plans to match Hunger and Poverty released a far- tradictions and mismatches in the nation’s Ford’s program and would not say Thursday reaching report, ‘‘Paradox of Our social and economic fabric. The most trou- whether they are considering it. Times: Hunger in a Strong Economy.’’ bling aspect of our times is that the coun- ‘‘We are always willing to look at anything The report emphasizes that numerous try’s economic prosperity has not been that would benefit our workforce, but any broadly or deeply shared. And perhaps the discussions of this nature are internal,’’ said studies on hunger in America have con- most glaring manifestation of this fact is the Trevor Hale, a DaimlerChrysler spokesman. cluded that low-income working fami- level of food insecurity and hunger in our so- Ford plans to start the program in the lies do not have access to adequate ciety. Hunger persists in every region of the United States in April and complete it in 12 food, despite the nation’s economic country and in every state—in urban, rural, months. prosperity. The report’s conclusion is and suburban areas, in households with chil- FORD’S DECISION RECALLED supported by research from the General dren, among the elderly and other adults Employees who sign up will receive a Hew- Accounting Office, the U.S. Depart- who live on their own, among minority and lett-Packard computer with a 500-megahertz ment of Agriculture, the U.S. Con- immigrant communities. Indeed, in some pockets of our society, food insecurity and processor, 64 megabytes of RAM and a 4.3 ference of Mayors, numerous state gigabyte hard disk. A 15-inch monitor and hunger are at levels that pose significant agencies, academic researchers, and public health problems, seriously compro- color ink jet printer computer will be in- policy analysts, including the Urban cluded. mising individual and family health and Employees can upgrade to three more pow- Institute and the Center on Budget and well-being while generating a myriad of soci- erful computers at their expense. Policy Priorities. The Tufts study will etal costs. ‘‘It does remind me of Henry Ford’s deci- be of interest to all of us in Congress This report constitutes a new and some- sion to pay his employees enough so they who care about this issue, and I ask what disturbing look into America in 2000. could afford his products,’’ said Malcolm that the attached Parts I and II of the Focusing on families with children, it has Maclachlan, an e-commerce research analyst three main purposes. The first is to present report be printed in the RECORD. the most current evidence on the problem of for International Data Corp. in Mountain The material follows: View, Calif. food insecurity and hunger in America, syn- ‘‘It sort of goes against the grain of cor- [From the Center on Hunger and Poverty, thesizing information from three key porate America in the last 20 years. It’s an Tufts University, Medford, Massachusetts] sources: national studies, state and local enlightened idea.’’ PARADOX OF OUR TIMES: HUNGER IN A STRONG studies, and finally, reports concerning the The alliance is a boon for slumping Hew- ECONOMY use of the non-governmental emergency food system. The second purpose is to identify the lett-Packard, which expects to ship 300,000 (By Sandra H. Venner, Ashley F. Sullivan, key forces driving food insecurity and hun- computers and printers for the Ford pro- and Dorie Seavey) gram. ger within what is the now the longest eco- PeoplePC Inc. of San Francisco is coordi- ‘‘It was, the best of times, it was the worst nomic expansion since the Vietnam War. In nating the program and UUNET of Fairfax, of times . . .’’ Charles Dickens. particular, we examine two sets of factors: Va., will provide the Internet and e-mail I. INTRODUCTION problematic aspects of the two major pro- service. America today is haunted by the paradox grams designed to assist poor families—Tem- $175-MILLION PRICE TAG of hunger and food insecurity amidst unprec- porary Assistance to Needy Families and the Employees will access the Internet edented prosperity. Despite a record eco- Food Stamp Program—and at a more sys- through a special portal that will offer direct nomic expansion that is now in its ninth temic level, economic forces that are cre- links to many Ford services and information year, accompanied by an historic mix of low ating growth but also are increasing inequal- and will be customized for different regions inflation and low unemployment, millions of ity, insecurity, and wage stagnation at the of the world. American households are struggling to find lower end of the labor market. Ford assured employees it would not be sufficient resources to feed their family The final purpose of this report is to pro- monitoring their e-mails and Internet surf- members. vide a framework for a comprehensive ap- ing. The network could eventually be used Signs of our economy’s unparalleled pros- proach to the problem of hunger and food in- for company announcements such as tem- perity are everywhere: the national unem- security in America. A three-pronged ap- porary plant closings. ployment rate, currently at 4.1 percent, is proach is suggested: (1) attending to the im- Ford would not discuss costs, but the pro- the lowest in thirty years; after-tax average mediate need to improve access to the Food gram could cost upwards of a $175 million or income is expected to be 20% higher in 1999 Stamp Program for people who do not have more. than in 1977 after adjusting for inflation; the secure and safe sources of sufficient food, (2) ‘‘It’s a very bold move,’’ said Cole, head of stock market toys repeatedly with new U-M’s Office for the Study of Automotive highs; consumer spending is at an all-time 1 Footnotes at end of article.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S388 CONGRESSIONAL RECORD — SENATE February 7, 2000 recasting the Food Stamp Program to orient been expected. Instead, the data indicate gency services in April and May 1998 found it more to the needs of low-income working that food insecurity remains a serious, per- that 27% of households experienced food in- families, and (3) addressing the deepest roots sistent problem in the U.S. with a significant security with severe hunger, and 33% were of hunger in America through a fundamen- proportion of families and individuals strug- food insecure with moderate hunger tally new paradigm for domestic social pol- gling to meet their basic food needs. present—an overall hunger prevalance of 60% icy that responds to—rather than lags be- (California Food Policy Advocates, Persons hind—the country’s new social and economic FOOD SECURITY PREVALENCE ESTIMATES FOR CHILDREN . . ., 1998). realities. Among the key components of such AND HOUSEHOLDS WITH CHILDREN 1995 AND 1998 Using the USDA’s Core Food Security a framework must be a revamped social in- Module, the Rhode Island Department of surance system (including improved unem- 1995 1998 Health conducted a pilot food security as- ployment insurance and portable benefits), 000s % 000s % sessment of households residing in poverty more comprehensive income support pro- census tracts. Of the 410 households sur- grams that help families supplement their Households with children under 6 ...... 18,003 100.0 17,176 100.0 veyed, 24.4% were determined to be food inse- earnings and stabilize their economic cir- Food insecure ...... 3,047 16.9 2,796 16.3 cure. Among food insecure households, 15.6% Without hunger ...... 2,149 11.9 2,132 12.4 cumstances, and opportunities for individ- With hunger ...... 898 5.0 664 3.9 were food insecure without hunger and 8.8% uals and families to build their assets and Households with children under 18 .... 37,520 100.0 38,178 100.0 of households experienced hunger (RIDOH, economic security over the various stages of Food insecure ...... 5,791 15.4 5,812 15.2 1999). Without hunger ...... 3,940 10.5 4,216 11.0 life. With hunger...... 1,851 4.9 1,596 4.2 Food Insecurity Among Former Welfare II. HUNGER AND FOOD SECURITY IN THE UNITED Children in households ...... 70,279 100.0 71,463 100.0 Recipients Food insecure ...... 12,231 17.4 12,373 17.3 STATES: WHAT DOES THE EVIDENCE TELL US? Without hunger ...... 8,131 11.6 9,114 12.8 In addition to the sources cited above, doc- Information about the extent and severity With hunger...... 4,100 5.8 3,259 4.6 umentation on the food security status of 2 of hunger and food insecurity in the U.S. Source: U.S. Department of Agriculture (1999). Advance Report on House- former welfare recipients is being collected comes from several sources. To provide in- hold Food Security in the United States, 1995–1998. Nord, M. (September by states in their examination of the effects formation about circumstances at the na- 28, 1999). ERRATA Table 2D in Household Food Security in the United States 1995–1998 (Advance Report). of policy changes on former recipients. While tional level, in 1995 the U.S. government many studies of the economic well-being of began to annually collect data on the preva- In addition to the USDA, the Urban Insti- this population are currently underway, lence of food insecurity and hunger among tute also documents food insecurity and some results are available. These studies, households. State and local studies of house- other measures of economic well-being as though different in their methodologies, doc- hold food security, typically conducted by part of a multi-year national monitoring ument persistent food insecurity among non-governmental organizations, also con- project. This effort includes the fielding of a former welfare recipients. tribute important information. Finally, evi- nationally representative survey called the According to Urban Institute’s national dence of food insecurity comes from studies National Survey of America’s Families study more than one-third (38%) of former that document changes in emergency food (NSAF). Based on a sample of 44,461 house- recipients reported that they ran out of food demand in various parts of the country. holds in 13 states, the 1997 NSAF found that and did not have money for more (Loprest, These varied sources of information capture half of all families at 200% of the poverty 1999). A number of state surveys of former different aspects of food insecurity and hun- line or below worried about food shortages or welfare recipients report similar outcomes: ger in America today, and taken together had difficulty affording food (Urban Insti- In a Wisconsin welfare ‘‘leaver’’ study, 375 5 constitute a composite of the problem. tute, 1999). In their examination of low-in- former recipients were asked if there was NATIONAL DATA ON FOOD INSECURITY AND come households, the USDA reported that ever a time after leaving welfare when they HUNGER nearly 40% of all households whose incomes could not buy food; 32% of those families re- Prior to the mid-1990s, estimates of the were below half of the poverty line experi- sponded ‘‘yes.’’ Of those unable to purchase number of households or individuals who enced food insecurity in 1998 (USDA, 1999). food, 49% reported going either to a church, were hungry or at risk of hunger relied upon STATE AND LOCAL FOOD INSECURITY food pantry, food kitchen, or shelter at some extrapolations of the poverty rate. With the PREVALENCE point; 46% went to friends and relatives, and development and implementation of the Studies that measure state and local food 5% reported going hungry (WDWD, 1999). USDA Food Security Measure,3 the ability to insecurity prevalence differ in scope and In 1997, 17% of 384 South Carolina survey consistently and reliably measure the preva- methodology. Some studies of household respondents reported that there were times, lence of hunger improved dramatically. The food insecurity provide evidence of the state- after leaving the welfare program, when they U.S. government now collects information wide prevalence, while others detail the had no way to buy food (SCDSS, 1999). on the food security of households in all characteristics of household food insecurity A post-time limit welfare tracking study states, and reports on an annual basis the on a local level.6 Studies of economic well- in Connecticut found that 22% of 421 re- food security status of population groups being often incorporate a measure of food in- spondents indicated that they ‘‘sometimes’’ over time. security as well. Depending upon the scope of or ‘‘often’’ did not have enough to eat. Of The United States Department of Agri- the study, samples range from random, rep- these respondents, 96% reported that the culture (USDA) has released four years of resentative samples to convenience samples food they bought did not last and they did household food security data, which together of at-risk populations. Although studies use not have money to buy more sometime dur- cover the period from 1995 to 1998.4 The most questions from the USDA Food Security ing the three months after the benefit termi- recent data released (1998 figures) show that Core Module, each sampling approach pro- nation (Hunter-Manns et al, 1998). an estimated 10.5 million households experi- vides specific information about households In Michigan, 27% of families who had their enced some degree of food insecurity, or that experience food insecurity and hunger. cash assistance benefits terminated due to 10.2% of all households in the United States. Food insecurity and hunger prevalence ap- sanctions reported not having sufficient food Of the more than 30 million people who lived pears to vary considerably at the state level. (Colville et al, 1997). in these households, nearly 40% (or 12.4 mil- USDA data shows that the percentage of REPORTS FROM EMERGENCY FOOD ASSISTANCE lion) were children. Over 9 million house- households experiencing food insecurity PROVIDERS holds (3.6%) experienced hunger, the most se- ranged from 4.6% of households in North Da- vere state of food insecurity (USDA, 1999). kota to 15.1% of households in New Mexico Emergency food providers, like soup kitch- In 1998, households with children—the (calculated as a three-year average over the ens and food pantries, help supplement the focus of this report—experienced food insecu- period of 1996–1998) (Nord et al., 1999). The food obtained through federal food assistance rity at more than double the rate for house- Urban Institute survey found that the per- programs, and also provide food to those who holds without children (15.2% versus 7.2%). centage of low-income families who worried are either ineligible for or do not participate Households with the youngest children about food or had difficulty purchasing food in government assistance programs. In addi- (under six) experienced an even higher level among the 13 states surveyed ranged from tion to receiving commodities through the of food insecurity (16.3%). Of the different 47% in Wisconsin to 61% in Texas (Urban In- Temporary Emergency Food Assistance Pro- types of households with children, those stitute, 1999). gram (TEFAP), emergency food providers ob- headed by single females showed the highest These survey results have been augmented tain food supplies from food banks and food food insecurity and hunger levels, with near- by a number of recent studies conducted by rescue organizations, known collectively as ly one in three reporting food insecurity and citizen groups, academic institutions, and food recovery organizations (Youn, 1999). one in ten experiencing hunger (USDA, 1999). state government agencies: When families experience food shortages, Food insecurity prevalence for households A survey of at-risk households in Green some turn to emergency food programs, yet, with children under 18 remained virtually Bay, Wisconsin conducted at 21 meal sites in many households remain food insecure. In unchanged across the four-year period end- April and May 1998 found that 66% of re- fact, the very act of seeking emergency food ing in 1998 at about 15% (see table below), al- spondents reported food insecurity with assistance implies that families are unable though the data indicate a small decline in varying degrees of hunger. Of these, well to meet their food needs after pooling re- the prevalence of hunger. Given the unprece- over half (58.1%) suffered moderate to severe sources from their own households, federal dented strength of economic indicators dur- hunger (Kok, 1998). food programs, or friends and family. Utiliza- ing this period, a decline in the national food A California study of 823 families with in- tion of emergency food assistance programs insecurity prevalence could reasonably have comes below the poverty line seeking emer- is therefore an indicator of food insecurity.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S389 Emergency Food Demand High Nationwide riod. Overall, providers reported an 18% in- greater dependence of food insecure families Recent national studies document per- crease in the number of individuals seeking on the emergency food system, increased sistent, and even increased, demand for food assistance compared to the previous regular reliance on this system to meet emergency food assistance. Second Harvest year, with 45% of their clients from families household food needs, a significant number reported that its emergency food programs (Philabundance, 1999). of unfulfilled requests, and greater numbers across the country served over 21 million Connecticut also reported higher demand of families with children among their clien- people (an unduplicated count) in 1997. Of the for food assistance. Of the 128 food sites that tele. reported an increased demand for assistance clients interviewed, 78.5% had insufficient FOOTNOTES between October 1997 and October 1998, the income for food and relied upon agency or 1 Shapiro and Greenstein (1999): U.S. Census Bu- government food programs. Over one-quarter number of persons served grew by an average of 24% (Connecticut Association for Human reau, Statistical Abstract of the United States 1999. (27.5%) of Second Harvest clients reported 2 Food insecurity occurs whenever the availability that adults in their household missed meals Services, 1999). of nutrionally adequate and safe food, or the ability At emergency food programs in Utah, re- during the previous month because they did to acquire acceptable foods in socially acceptable searchers found a 24% increase in the num- not have enough food or money to buy food. ways, is limited or uncertain. Hunger is defined as ber of individuals served from 1997 to 1998, Of those households with children, 9.1% re- the uneasy or painful sensation caused by a recur- and an astonishing 107% increase over the rent or involuntary lack of food and is a potential, ported that children missed meals in the prior two-year period (Utah Food Bank, although not necessary, consequence of food insecu- prior month for similar reasons (Second Har- 1999). rity. Over time, hunger may result in malnutrition. vest, 1998). In addition, Catholic Charities re- An Oregon survey of over 680 regional food 3 The USDA Food Security Core Module consists of ported that during 1998, the demand for providers reported that the number of people an 18-item instrument constructed as a scale meas- emergency food assistance rose an average of ure. The items ask about a household’s experiences who received emergency food boxes increased of increasingly severe circumstances of food insuffi- 38% among reporting agencies (GAO, July 14% from 1997 to 1998, to a high of 458,208 in- 1999). ciency and behaviors undertaken in response to dividuals, or 1 in 8 people in Oregon and them during the 12-month period preceding the sur- The recently-released U.S. Conference of Clark County, Washington (Oregon Food vey (Hamilton et al, 1997). Mayors survey of 26 major cities reveals that Bank, 1999). 4 The Advance Report (Nord, 1999) builds on an ear- 85% of respondent cities reported a rise in Emergency Food Providers Struggling to Meet lier historic report released in 1997 that presented emergency food assistance demand between the first-ever national prevalence estimates of food Demand November 1998 and October 1999, with re- security using 1995 data collected by the U.S. Census quests increasing by an average of 18% over Emergency food providers are struggling to Bureau. 5 the previous year. For those cities reporting meet the increased food needs of their cli- To assess household food security, the NSAF in- cludes three questions from the USDA’s Food Secu- increases, the rising demand for emergency ents. Although the provider network con- tinues to grow, reports indicate that it is un- rity Core Module. food ranged from 1% in Chicago to 45% in 6 The studies reviewed for this report were pub- Los Angeles. Nearly 60% of those requesting able to meet the demand for assistance, and providers must sometimes either turn clients lished or released after January 1998 and represent food assistance were children and their par- only a portion of available data. For a more com- away or provide them with less in order to ents. In addition, over two-thirds (67%) of prehensive collection of state and local food security stretch resources over a growing client popu- adults requesting food assistance were em- studies, see the compilation of studies released in lation. For example, the U.S. Conference of ployed. In all of the cities surveyed, people February 1999 by the Food Security Institute at the Mayors report that in 1998, on average, 21% Center on Hunger and Poverty.∑ relied upon emergency food assistance facili- of requests for emergency food assistance ties not only in emergencies but also as a f went unmet (U.S. Conference of Mayors, steady source of food over long periods of 1999). KAZAKHSTAN time. Officials in virtually every city sur- Studies also indicate a shift in the com- ∑ Mr. DEWINE. Mr. President, last No- veyed anticipate increased requests for position of people using emergency food pro- emergency food assistance in 1999, especially grams. Soup kitchens, which have tradition- vember, Akezhan Kazhegeldin, who among families with children (U.S. Con- ally served homeless adults, report an in- served as Prime Minister of ference of Mayors, 1999). crease in the number of families with chil- Kazakhstan from 1994 to 1997, was the State and Local Emergency Food Programs dren. Pantries report increased requests for featured speaker at the City Club of Seeing More Families evening hours in order to serve needy work- Cleveland. His remarks summarize the Reports from states and metropolitan ing parents. And food bank directors report many challenges and struggles in areas present a similar, if not a more strik- increased regular use of their programs by Kazakhstan and how the United States ing, picture of emergency food demand in clientele who used to stop in occasionally for can be a partner for progress and de- various regions throughout the United a bag of food. States. Of those studies reviewed, recent in- Taken together, this evidence raises red mocracy in Central Asia. creases in the number of clients ranged from flags concerning the depth of food insecurity I have a copy of Mr. Kazhegeldin’s re- 14% to 36%. experienced by many families. Typically, marks, as well as a copy of the story on Maryland emergency providers reported seeking out emergency food assistance is an his visit that appeared in the Cleveland that from September 1997 to September 1998, end-stage coping strategy. As such, emer- Plain Dealer, and I ask that both ap- soup kitchens experienced a 25% increase in gency food program activity constitutes a pear in the RECORD following the con- the number of children served, a 24% in- unique barometer for gauging the paradox of clusion of my remarks. crease in the number of women served, and a hunger in a strong economy, and is evidence The material follows: 19% increase in the number of families of the numbers of households and individuals served. Food pantries reported an 8% in- for whom neither employment in the strong REMARKS OF THE HONORABLE AKEZHAN crease in children, a 21% increase in women, economy nor federal safety nets are pro- KAZHEGELDIN and a 24% increase in the number of families viding the support necessary to ensure their Ladies and Gentlemen! served (Center for Poverty Solutions, 1998). food security. First of all, I would like to thank those A Massachusetts study of 98 emergency SUMMING UP THE EVIDENCE who arranged this radio forum and asked me providers found that between 1996 and 1997, Based on data from national, state and to appear before you. This is not only an 63% experienced a rise in the total number of local studies as well as reports from emer- honor for me, but also a great responsibility. emergency food requests, with clients served gency food providers, the evidence on hunger At this rostrum I have been preceded by increasing an average of 22.4%. Over half and food insecurity in the United States can many respected politicians, among them (52.4%) of the clients requesting emergency be summarized as follows. presidents of the United States. Now the food assistance were families with children, The national data show remarkably per- chance to be heard here, in Ohio—the very and nearly half of the programs reported an sistent levels of aggregate household food in- heart of the United States, has been given increasing number of families with children security over the last four years that appear not only to me, Akezhan Kazhegeldin, econo- requesting services. (Project Bread and the unresponsive to favorable national economic mist and politician, but through me to all of Center on Hunger and Poverty, Tufts Univer- trends. Approximately one in ten households Kazakhstan. sity, 1998). in the US report food insecurity; over 30 mil- My country lies in the very center of Asia A recent survey of 330 New York City pro- lion adults and children live in these house- between Russia and China, between Siberia viders revealed that emergency food requests holds. and the great deserts. Poets say that at each site increased an average of 36% from Household food security at the state level Kazakhstan is the very heart of Asia. For January 1998 to January 1999. Providers re- varies widely around the national average, me, therefore, this appearance before the ported a 72% increase in the number of fami- ranging from less than 5% to over 15%. citizens of Ohio represents a conversation be- lies with children seeking emergency food Local studies using the same food security tween two hearts, a true heart-to-heart talk. assistance (New York City Coalition Against survey instrument used by the USDA have American society needs first-hand knowl- Hunger, 1999). found hunger prevalence rates among var- edge about what is happening in the coun- Of the greater Philadelphia community ious at-risk groups that are 5 to 10 times the tries which were formerly parts of the Soviet food providers surveyed between April 1998 overall national rate. Union. American corporations, working in and April 1999, 67% reported a greater de- Recent reports from emergency food assist- Kazakhstan, may have knowledge and under- mand for food assistance during this time pe- ance providers across the country indicate standing of geological resources, but no more

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S390 CONGRESSIONAL RECORD — SENATE February 7, 2000 than that. I am sure that the oil companies neers, and the possibility of unlimited new the case of Kazakhstan, I see how often such which worked in Iran under Shah Pahlevi markets. aid is being used by anti-democratic forces had the most detailed and accurate geo- During the four years that I held the posi- for their own purposes. I will give you an ex- physical maps. But these maps could not tion of prime-minister we were able to at- ample: The International Financial Corpora- have predicted that the Shah would be re- tract to our country hundreds of Western, tion -opened the printing house ‘‘Franklin’’ placed by the Khomeini regime. primarily American, companies. Their in- in Almaty. At first it printed a number of In many of the former Soviet republics one vestments totaled 9 billion dollars. We not newspapers expressing different viewpoints, can clearly see the possibility or the actual only managed to avoid defaulting on the among them ‘‘Karavan’’, the most widely threat of new anti-democratic regimes aris- multi-billion debt incurred by the previous read and independent of the newspapers of ing. They are not necessarily linked to reli- regime, but we created gold and hard cur- Kazakhstan. gious extremism. And even less to Islam. The rency reserves of a size remarkable for a However, just before last year’s presi- Serbian leader Milosevich is not an Islamic country such as Kazakhstan. dential elections the authorities forced the extremist. He is a Christian extremist, a na- But I have to confess that during my ten- owner to sell the newspaper together with tionalist. But that does not make him any ure I failed to achieve the most important the printing house to a relative of President less dangerous. goal—that of creating a sufficient reserve of Nazarbaev. Since then the facility has print- ABOUT KAZAKHSTAN democracy in our society. Parallel with the ed nothing but pro-government publications, My country has been in existence as an development of a liberalized economy an au- and the opposition has been forced to print independent state for only eight years. I am thoritarian and anti-democratic regime was its materials a thousand miles away in Rus- not surprised that not everyone can find it emerging in Kazakhstan—the regime of sia and ship them secretly into Kazakhstan. on a map. And yet in recent times American President Nazarbaev. As you know, barely a month ago par- newspapers have been writing about And, unfortunately, I myself helped solid- liamentary elections were held in Kazakhstan more frequently. So it is harder ify it. As a young politician and, more accu- Kazakhstan. They were carried out with nowadays to miss Kazakhstan. Some may rately, a technocrat, I believed that every- massive violations of voting procedures and say that Kazakhstan is simply a splinter of thing would develop on its own as it should. false vote counts. As a result, the majority the former Soviet empire. If so, it is a very Together with my reform-minded colleagues of the seats in parliament went to the can- large splinter. The largest if one does not I thought that once a market economy was didates of the powers that be and to govern- count Russia. The territory of Kazakhstan established, democracy would follow; once ment officials. This happened in spite of the covers 2.7 million square kilometers. This Western investments started coming, society fact that sociological polling and the moni- huge territory is inhabited by fifteen million would automatically become transparent; toring of voting precincts on election day in- people. This is a bit more than the popu- once a middle class had emerged and defined dicated that the opposition candidates were lation of the greater New York metropolitan its interests, a multi-party system would in the lead across the country. area. I suspect that it will be a long time be- appear. It is not surprising that all this falsifica- fore we enter the international discussion of We were wrong. Even while still in the po- tion was carried out and later covered up by world overpopulation. Imagine the reaction sition of prime-minister I began to notice the Central Electoral Commission. The Com- of Japanese businessmen during a four-hour that foreign investors would frequently find mission was created and is controlled by flight from Almaty, our southern capital, to themselves in conflict with local administra- President Nazarbaev. It is, therefore, under- Atray, the center of the oil production re- tions and would always lose in the end. standable that local electoral commissions gion in the western part of the country, The courts and media controlled by local composed of government employees and con- when they are told by the stewardess that on officials invariably took the side of their trolled by local administrators and gov- their way they will pass over all of three bosses. Foreign investors and ambassadors ernors added fake ballots and issued false towns. On the other hand, Kazakhstan busi- applied to me and in each specific case I was election returns. nessmen are equally stunned when they find forced to use my authority as prime-min- What is amazing is the fact that on the eve out the size of the assets of Japanese and ister. of the elections international organizations American banks. The total annual state Our own businessmen found themselves in conducted serious work of ‘‘educating’’ the budget of Kazakhstan is somewhere in the an even worse situation. They became hos- members of these electoral commissions. area of six billion dollars. That sum passes tages to the officials. They did not have em- Dozens of experts from Western Europe and through a New York bank during one week. bassies on their side, and their complaints the United States lectured on the subject of And I am not specifically speaking of the were not being heard by the international ar- how ballots must be handled and counted Bank of New York. bitration board in Stockholm. Without the correctly and honestly. Members of the Cen- administration’s patronage they were unable tral Electoral Commission went abroad for THE RESOURCES OF DEMOCRACY to conduct their business. training. Instructions and methodological When I speak of money, I have no inten- At the same time more and more positions materials were printed, seminars conducted. tion of asking for a donation of a certain in government were being occupied by the I do no know how much all of this cost, but number of millions to Kazakhstan. This in President’s relatives. Other positions went I suspect that millions were spent. We, the spite of the catastrophic lack of funds for ev- to nephews, to fellow-villagers and former citizens of Kazakhstan, watched all this as a erything and anything, from formula for the colleagues in the Communist Party. performance of the theater-of-the-absurd. newborn to pensions for the aged. The en- Combining business holdings, obtained Why were all these efforts and funds, voys of the current president regularly come without investment or qualifications, with among them those of the American tax- to Washington to ask for credits and dona- power, they created a unique sort of cap- payers, expended in vain? As recently as in tions. But we, the opposition, expect a dif- italism profiting an oligarchy determined by January of this year, these very same elec- ferent kind of aid from America. You prob- clan and family ties. It was futile to expect toral commissions had falsified the results of ably know the ancient saying that one can of these people either democratic views or the presidential elections. The free press had give a hungry man a fish or one can teach even professional managerial conduct. been annihilated and many members of the him how to fish. This holds true not only for At this point I left the government and opposition had been denied their civil rights. Kazakhstan but for all other newly inde- dedicated myself to political activity. I be- I was one of them. pendent states. People in those countries do came the head of the Union of Industrialists The Organization for Cooperation and Se- indeed need the means to exist, but what and Entrepreneurs of Kazakhstan and later curity in Europe, a number of Congressional they need even more is the ability to earn the chairman of the Republican National committees and the Administration of Presi- these means within the framework of a uni- Party of Kazakhstan. These organizations dent Clinton have condemned those elections fied world market. formed an opposition to President as incompatible with democratic norms. The God has not been ungenerous to Nazarbaev, and I personally was forced to authorities of Kazakhstan never intended to Kazakhstan when He distributed natural re- leave my country and seek temporary asy- hold honest elections or to admit opposition sources. Oil is far from being our only treas- lum in Western Europe. candidates to parliament. Could the Admin- ure. Kazakhstan possesses deposits of almost istration and the agencies involved in for- all metals, including gold, aluminum, cop- AMERICAN AID eign aid have deemed it possible that, having per, titanium, uranium, zinc and others. All I recently read in the New York Times a falsified the presidential election, Nursultan of these resources were being used in one commentary by Tina Rosenberg on the work Nazarbaev would allow honest parliamentary form or another under the Soviet regime. of one of the specialists of the Carnegie En- elections? That is hard to believe. Kazakhstan was then one of the key regions dowment for Peace dealing with the effec- impacting on the growth of the military and tiveness of America’s ‘‘export of democ- THE SECRET STRATEGY OF DICTATORS industrial might of the Soviet Union. racy’’. I have not as yet seen the book my- It seems to me that after the dissolution of When I entered the government in 1993 self, but I noted the following figure: Seven the Soviet bloc and the Soviet Union, the after having held the position of President of hundred nineteen million dollars were spent West was caught in a trap set by crafty post- the Entrepreneurs’ Union, I considered it my last year on US government support of de- Soviet leaders. These people have learned main task to attract foreign investment cap- mocracy in other countries. the lesson of history, they have understood ital. I traveled the world meeting with busi- Thomas Carothers attempted to estimate that one cannot openly reject democratic nessmen and touting our mineral resources, the effect of such investment in democracy. principles. They determined that it is much our highly qualified labor force and engi- This is an extremely important question. In better to verbally acknowledge common

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S391 human values, to proclaim them loudly at evolving in Kazakhstan, that it was becom- mation. Because of the difference in time every turn, to promise to stop all violations ing an accomplished fact. As proof thereof he zones, they watch Russian TV broadcasts of human rights, and—most of all—to ab- cited the cooperation of his government with deep into the night trying to find out what is stain from polemics with the West. international organizations and American really happening in Kazakhstan. Early in Oc- Then one can pay yearly visits to Wash- consultants. tober the New York Times published an arti- ington, make speeches before members of the And this at a time when it is clear to any cle about the fact that the Swiss police had various think tanks about progress towards objective observer that Kazakhstan is mov- frozen the personal bank account of Presi- democracy, and acquire the reputation of ing swiftly away from democracy and mutat- dent Nazarbaev in the amount of eighty five being ‘‘our man’’. And meanwhile in one’s ing towards a classic dictatorship. What is million dollars. As soon as reports about this own country one can destroy the free press, encouraging is that US legislators do not event began to be broadcast by Russian tele- quash the opposition, and prevent any possi- allow themselves to be duped by such lit- vision stations, all Russian TV channels bility of a transfer of power by constitu- anies of ‘‘good deeds’’ and continue to con- were blocked for three days in Kazakhstan. tional means. demn the anti-democratic practices of the I am sure that you find it hard to believe. At the same time, these leaders, trying to current regime. But this is indeed so. Try to imagine it. Try preempt criticism, are asking the West for Does this mean that the United States to imagine how hard it is for people to live help in building democracy. They say that should abandon their efforts to export de- not only in poverty but surrounded by lies. because of long years of Soviet dictatorship, mocracy to post-Soviet states? Not at all! Help people in all post-Soviet states to turn their citizens are unable to absorb such con- But it would be useful to analyze the correla- from mere populations into civic societies. cepts as equality before the law, freedom of tion between cost and effect. The broadcasts of the Voice of America and speech, political competition and the divi- When viewed from that perspective, the of Radio Liberty must not be curtailed. Full-fledged programs for each of these sion of power. most effective aid turns out to be that which Thus in April of this year, President is given not to governmental bodies, but to states in its own language must be created. Nazarbaev during his appearance at the Car- specific opposition groups, to independent One should not economize on truth and free- negie Endowment asserted in all seriousness newspapers to intellectuals, to unofficial dom of information. The United States, as the last of the superpowers, bear the respon- that America had needed two hundred years trade unions. It is such aid that proved to be sibility for maintaining not only peace but to build its democracy and that, therefore, decisive in Poland. A simple Xerox machine truth. I repeat the words of Solzhenitsyn: no demands in that respect could be made on in the hands of ‘‘Solidarity’’ proved to be a ‘‘God is to be found in truth, not in might’’. Kazakhstan. more powerful weapon than the guns and Had I been present at that meeting, I clubs of the secret police. THE THREAT TO THE WEST would have answered my president by say- But one must remember that the new dic- No one can say that Kazakhstan and other ing: ‘‘Had American presidents allowed tators are extremely resourceful. For the states of Central Asia are being ignored by themselves to rig elections and prolong their benefit of the West they create a large num- American diplomats and non-governmental terms in office at will, even five hundred ber of seemingly non-governmental and experts. But this is so mainly because of years would not have been enough for build- quite democratic organizations: ‘‘pocket’’ their oil and the question of its delivery to ing democracy in the United States.’’ trade-unions, environmental movements, Western markets. The bloody conflict in It is hard to say how many American con- women’s movements, fake political parties. Chechnya and the armed religious move- sultants have visited Kazakhstan and how It would seem, that a foreigner would be ments in these countries are viewed merely many proposals and memorandums they incapable of telling a genuine human rights as arguments pro or con for one or the other have written for the government. All of them advocate from a false one, a real democratic route the future gigantic pipeline might were qualified experts, all of them believed movement from a fictional one. But in actu- take. that the government was just waiting for ality, it is all quite simple: There is only one I am convinced that world history is driven their recommendations to make one more criterion and it is well known to your jour- not by oil, but by blood. The danger of ter- step toward genuine democracy. But none of nalists and diplomats who work in rorist movements lies not in the fact that these recommendations are implemented if Kazakhstan: Does this or that opposition they may hinder the building of this or that they go contrary to the preservation of group allow itself to criticize the President? pipeline, but in the fact that they disrupt power by the new ‘‘nomenklatura’’. All the ‘‘pocket’’ dissidents and fictional and destroy human lives. Remember Bosnia You must realize that the elective nature opponents are permitted to severely criticize and Kosovo. There is no oil in the Balkans, of local government has been abolished in and expose regional governors and even gov- but the threat to peace which arose there Kazakhstan. All regional governors and local ernment ministers, but will never dare to forced the United States and NATO to send mayors are appointed by the President. point out that, if corruption has pervaded their troops. If after the passing of Tito the West had There is a Ministry of Information and So- the highest levels of government, the Presi- not abandoned Yugoslavia to the tender mer- cial Concensus which controls the media and dent is obviously aiding and abetting it. cies of Milosevich, if the democratic move- printing. What kind of recommendations can Once you identify the ‘‘upper limit of criti- ments there had received support in the one give to these institutions? All this re- cism’’, you can determine whether the orga- nineteen eighties, the dissolution of that minds one of a discourse between a cannibal nization in question is really independent of state would not have been as tragic and pro- and dieticians. The members of the rubber- the government and the secret police. longed. If a radio ‘‘Free Serbia’’ had begun stamp parliament have frequently visited THE VOICE OF AMERICA MUST BE TRULY HEARD broadcasting early enough, Milosevich would Washington on the invitation of their col- The credit for the fact that the Soviet have left the scene five years ago. Instead, leagues, the US legislators. They pretended Union crumbled of its own accord without just as the presidents of some of the CIS to admire the perfection of the American anybody coming to its defense belongs to a countries, among them President Nazarbaev, system of division of power and then re- greater degree to the radios ‘‘Liberty’’ and had done, he placed his daughter at the head turned home to vote for granting President ‘‘Voice of America’’ than to the Pentagon of state television and radio. The Serbian Nararbaev additional powers and authority and the CIA. I hope that the workers of those people became the victims of nationalist lies and extending his term of office from five to two venerable agencies will not feel offended. and have suffered for it. seven years. There is a Russian proverb ‘‘The But it is precisely from those broadcasts Nationalism and religious extremism are oats were of no profit to the horse’’. I think that I myself gained my basic understanding the two main threats to a happy and pros- it fits the situation. of a free society and of a market economy. perous future. Do they threaten Kazakhstan? A year ago a ban was placed on the publi- At that time the broadcasts were being heav- To a great extent they do, unless the opposi- cation of my book ‘‘The Right to Chose’’, ily jammed, but we listened anyway. We did tion forces and world opinion counter them which exposed the true nature of the current so because man has, among other instincts, with a democratic alternative. Otherwise no regime. More than three hundred thousand the very basic instinct, the unquenchable de- strong-hand tactics, not dictatorial regime copies published in the Kazakh language sire to know the truth. The great Russian will stand up to that threat. were destroyed. For the last two years the writer and the great dissident of the Soviet Conversely, dictatorship and the corrup- authorities have been denying registration era, Nobel Prize Laureate Alexander Sol- tion it breeds is likely to lead to an explo- to the newspaper ‘‘Respublika’’. During the zhenitsyn proclaimed that ‘‘God is to be sion of religious, and particularly Islamic, presidential elections twelve opposition pa- found in truth, not in might’’. It is because fanaticism. In a poor country where the rul- pers and two radio stations were closed of this that Brezhnev feared him more than ing elite cynically robs the people and de- down. Three printing houses were con- any other of his enemies. prives them of the opportunity to express fiscated and have not been returned to their This is why, when I meet with members of their aspirations, the emergence of religious owners. Quite recently the owner of the inde- Congress and the Administration in Wash- extremism becomes unavoidable. pendent radio station RIK was forced to ington, I ask them again and again not to The average person sees that he or she can- leave for Canada. cut down on broadcasts to the former Soviet not change anything, becomes desperate and I was outraged when I heard the testimony republics, but to create broadcast services ready to do anything. And at this moment a of Kazakhstan’s ambassador to Washington for each of the new states of Central Asia. preacher inevitably appears saying that God Nurgaliev at the hearings before the Con- My people need information as much as they will bless your protest and forgive any blood- gressional Committee on Cooperation and need bread. shed. All that remains is to find the weap- Security in Europe. He was trying to con- You cannot imagine to what length my fel- ons, and that is not difficult in our world vince Congress that democracy was indeed low-citizens will go to obtain truthful infor- today.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S392 CONGRESSIONAL RECORD — SENATE February 7, 2000 So wherein lies the true source of religious Last year, Nazarbaev suddenly moved the cally-driven conservation and edu- extremism—in religion or in dictatorship date of the next presidential election ahead cation initiatives. This community has which pushes people towards violence? The two years. taken it upon itself, without unneces- answer is self-evident. Leaders of some CIS Then his election commission disqualified sary pressure from Washington DC bu- regimes find it useful to have a few extrem- Kazhegeldin, who most Western observers ist Islamic groups handy to frighten the consider the country’s most popular opposi- reaucrats, to engage in salmon habitat West. tion figure. The reason: He had delivered a restoration and use it as an edu- They tell you: ‘‘Only dictatorship can stop speech to an ‘‘unauthorized’’ group— cational experience for future stewards Islamic terror. If you do not support me, Kazakhstanis for Free Elections. of this precious resource. your oil pipelines will suffer’’. This is a lie. Kazhegeldin also was barred from last Clearly, a good education in today’s This is a total reversal of cause and effect. month’s parliamentary ballot, though by world requires much more than just The longer dictatorial clan-based regimes re- then he had fled to Moscow and then London solid academic instruction—it must main in power, the greater will the influence after being shot at and accused of corruption also include a broader understanding of of religious fanatics become, and the more and money laundering. blood will be spilled eventually. He has denied the charges. the application of those skills learned For Kazakhstan the threat of national and Nazarbaev himself is widely suspected of in the classroom. The Four Schools religious extremism is especially great. In having profited from power. Project is an excellent example of this our country there are as many Kazakhs as The Guardian newspaper last year reported principle in action. I propose to my col- non-Kazakhs, as many Muslims as there are that he was the eighth wealthiest person in leagues here in the Senate that this Orthodox Christians. If the danger of reli- the world. successful project is further proof that gious extremism arises in the predominantly Kazakhstan covers 1 million square miles local educators will be able to make Kazakh south, the Russian population which of Central Asia and borders both Russia and the best decisions about the unique is concentrated in the north will turn to China. ∑ Russia for aid. The oil-rich western part of It is believed to contain the world’s largest needs of their students. the country will proclaim its own interests. untapped pool of oil, as well as large deposits f In that case the ‘‘balkanization’’ of of gold and titanium. THE WATCHDOGS PROGRAM Kazakhstan will become inevitable. But unemployment is high and the average It pains me to say all this. I am asking you annual income is less than $1,300,according ∑ Mr. HUTCHINSON. Mr. President, I to help my country avoid this fate. There is to the State Department. rise today to commend a special pro- no other way to achieve this than to help the Foreign investors are afraid to set up shop gram that is having a positive impact people of Kazakhstan to secure those free- in Kazakhstan, Kazhegeldin said, because of on schools throughout my home State doms which were initially promised by the an unreliable legal system.∑ of Arkansas. This program is called Constitution but which were then stolen: the freedom of speech, the freedom of forming f WatchDOGS, and was founded to com- bat school violence in the wake of the political organizations, the freedom to RECOGNITION OF ANNE SWANT’S Jonesboro tragedy by Jim Moore, PTA choose one’s representatives in the gov- AP BIOLOGY CLASS IN WALLA erning bodies. And, I beg, do not help dic- President of Gene George Elementary WALLA tators stay in power. School in Sprindgale, Arkansas. Jim Our world stands on the threshold of a new ∑ Mr. GORTON. Mr. President, in No- has informed me that the program has millennium. There is a saying: ‘‘As you greet vember I had the pleasure of joining a rapidly expanded to about 35 schools the New Year, so will you live in it’’. If this unique group of students on a field trip and I share in his goal of seeing it im- is true, then equally true would be the con- to Coppei Creek outside of Walla Walla, clusion that ‘‘as you greet a new century, so plemented in schools throughout the will you live in it’’, or ‘‘as you greet a new Washington. The Advanced Placement State of Arkansas. Furthermore, it is millennium, so will you live in it’’. During biology class from Walla Walla high my hope that this program will be im- most of the first millennium of the new era school, led by their teacher Anne plemented in schools throughout the East and West existed apart from each other. Swant, has been engaged in an innova- nation. During the second millennium they fought a tive program to study wild steelhead In a WatchDOGS program, fathers great deal. Let us live the third millennium restoration and monitor water quality. and grandfathers of students volunteer in peace, justice and prosperity. The Coppei Creek project is a col- I thank you for your interest in my coun- to spend at least one day a year in try, Kazakhstan, and its people. laboration between the Walla Walla their child’s school. By doing so, they conservation district, Tri-State not only provide unobtrusive security, NATIONAL EXILE WARNS OF EXTREMIST Steelheaders, City of Waitsburg, and but they also serve as positive role THREAT IN KAZAKHSTAN local landowners. This group came to- models for the children. Each school [From the Cleveland Plain Dealer, OH, Nov. gether after severe flooding damaged has a WatchDOGS coordinator who 13, 1999] property and habitat in 1996. Their goal schedules the shifts to ensure that (By Joe Frolik) was to restore stream habitat for there is a father or grandfather on the A Kazakhstani dissident leader in exile threatened steelhead while providing premises at all times. WatchDOGS par- since April warns that his resource-rich necessary flood control for adjacent ticipate in a wide variety of school ac- homeland could fall prey to religious or na- farmlands. tivities. For example, they read to and tionalist extremists if the current regime As part of the ‘‘Four Schools’’ tutor students, participate in play- continues to resist democratic reforms. project Anne Swant’s class has teamed ground activities, eat lunch with stu- Akezhan Kazhegeldin told a City Club of up with John Geidl, a retired educator dents, and assist in the loading and un- Cleveland audience yesterday that United and executive secretary of Tri-State States and other democratic countries loading of school buses. should continue pressing the former Soviet Steelheaders, to institute a ‘‘class- I believe that this program can be a Republic of Kazakhstan to hold open elec- rooms in the stream’’ project—teach- great tool in our efforts to prevent tions, to allow a free press and to permit po- ing biology and scientific research school violence and to improve student litical dissent. techniques through real-life applica- performance because it increase paren- ‘‘When the average person sees that he or tions. tal initiative and involvement in their she cannot change anything, they become In addition to the work at Coppei children’s education. It can often be desperate and ready to do anything,’’ said Creek, the students helped design and implemented without any expenditure Kazhegeldin, Kazakhstany¨ s Prime Minister before he broke with President Nursultan construct in-stream habitat and ripar- of school funds as the only supplies Nazarbaev in 1997. ‘‘It pains me to say all ian buffers for a fish-bearing stream on necessary are a pair of walkie-talkies this. I am asking you to help my country their own school campus. and identifying t-shirts, which are usu- avoid this fate.’’ For their leadership in this revolu- ally donated by local merchants or the Nazarbaev was Kazakhstan’s communist tionary program, I was proud to award PTA. boss at the end of the Soviet Union and be- Anne Swant and John Geidl one of my I hope that my colleagues will ask came president of the newly independent re- ‘‘Innovation in Education’’ awards for the school superintendents and prin- public. He has concentrated economic and excellence and creativity in hands-on cipals in their respective home states political power in family members and spon- sored a series of elections that have been science learning and leadership in to consider implementing this program criticized by outside observers, including the teaching community conservation. in their schools. Finally, I wish to Organization for Security and Cooperation in This program, and the Coppei Creek thank Jim Moore, Gene George Ele- Europe. restoration project are models of lo- mentary School Principal Jim Lewis,

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S393 and all the other people who have Sec. 306. Giving secured creditors fair treatment Sec. 432. Definitions; effect of discharge. worked so hard to develop and imple- in chapter 13. Sec. 433. Standard form disclosure statement ment the WatchDOGS program. Thank Sec. 307. Exemptions. and plan. Sec. 308. Residency requirement for homestead you for helping to make Arkansas Sec. 434. Uniform national reporting require- exemption. ments. schools the safe havens of learning that Sec. 309. Protecting secured creditors in chapter Sec. 435. Uniform reporting rules and forms for they are meant to be.∑ 13 cases. small business cases. f Sec. 310. Limitation on luxury goods. Sec. 436. Duties in small business cases. Sec. 311. Automatic stay. Sec. 437. Plan filing and confirmation dead- BANKRUPTCY REFORM ACT OF 1999 Sec. 312. Extension of period between bank- lines. H.R. 833, as amended and passed by ruptcy discharges. Sec. 438. Plan confirmation deadline. the Senate on February 2, 2000, is as Sec. 313. Definition of household goods and an- Sec. 439. Duties of the United States trustee. tiques. follows: Sec. 440. Scheduling conferences. Sec. 314. Debt incurred to pay nondischargeable Sec. 441. Serial filer provisions. Resolved, That the bill from the House of debts. Sec. 442. Expanded grounds for dismissal or Representatives (H.R. 833) entitled ‘‘An Act Sec. 315. Giving creditors fair notice in chapters conversion and appointment of to amend title 11 of the United States Code, 7 and 13 cases. trustee. and for other purposes.’’, do pass with the Sec. 316. Dismissal for failure to timely file Sec. 443. Study of operation of title 11, United following amendment: schedules or provide required in- States Code, with respect to small Strike out all after the enacting clause and formation. businesses. insert: Sec. 317. Adequate time to prepare for hearing Sec. 444. Payment of interest. SECTION 1. SHORT TITLE; TABLE OF CONTENTS. on confirmation of the plan. Sec. 445. Technical correction. (a) SHORT TITLE.—This Act may be cited as Sec. 318. Chapter 13 plans to have a 5-year du- TITLE V—MUNICIPAL BANKRUPTCY the ‘‘Bankruptcy Reform Act of 2000’’. ration in certain cases. PROVISIONS (b) TABLE OF CONTENTS.—The table of con- Sec. 319. Sense of the Congress regarding ex- tents of this Act is as follows: pansion of rule 9011 of the Fed- Sec. 501. Petition and proceedings related to pe- eral Rules of Bankruptcy Proce- tition. Sec. 1. Short title; table of contents. dure. Sec. 502. Applicability of other sections to chap- TITLE I—NEEDS-BASED BANKRUPTCY Sec. 320. Prompt relief from stay in individual ter 9. Sec. 101. Conversion. cases. TITLE VI—IMPROVED BANKRUPTCY Sec. 102. Dismissal or conversion. Sec. 321. Chapter 11 cases filed by individuals. STATISTICS AND DATA Sec. 103. Findings and study. Sec. 322. Excluding employee benefit plan par- Sec. 104. Notice of alternatives. ticipant contributions and other Sec. 601. Audit procedures. Sec. 602. Improved bankruptcy statistics. Sec. 105. Debtor financial management training property from the estate. test program. Sec. 323. Clarification of postpetition wages and Sec. 603. Uniform rules for the collection of Sec. 106. Credit counseling. benefits. bankruptcy data. Sec. 604. Sense of Congress regarding avail- TITLE II—ENHANCED CONSUMER Sec. 324. Limitation. ability of bankruptcy data. PROTECTION Sec. 325. Exclusive jurisdiction in matters in- TITLE VII—BANKRUPTCY TAX PROVISIONS Subtitle A—Penalties for Abusive Creditor volving bankruptcy professionals. Sec. 326. United States trustee program filing Practices Sec. 701. Treatment of certain liens. fee increase. Sec. 201. Promotion of alternative dispute reso- Sec. 702. Treatment of fuel tax claims. Sec. 327. Compensation of trustees in certain Sec. 703. Notice of request for a determination lution. cases under chapter 7 of title 11, Sec. 202. Effect of discharge. of taxes. United States Code. Sec. 704. Rate of interest on tax claims. Sec. 203. Discouraging abuse of reaffirmation Sec. 328. Nondischargeability of debts incurred practices. Sec. 705. Priority of tax claims. through the commission of vio- Sec. 706. Priority property taxes incurred. Subtitle B—Priority Child Support lence at clinics. Sec. 707. No discharge of fraudulent taxes in Sec. 211. Definition of domestic support obliga- TITLE IV—GENERAL AND SMALL BUSINESS chapter 13. tion. BANKRUPTCY PROVISIONS Sec. 708. No discharge of fraudulent taxes in Sec. 212. Priorities for claims for domestic sup- Subtitle A—General Business Bankruptcy chapter 11. port obligations. Provisions Sec. 709. Stay of tax proceedings limited to Sec. 213. Requirements to obtain confirmation Sec. 401. Rolling stock equipment. prepetition taxes. and discharge in cases involving Sec. 710. Periodic payment of taxes in chapter domestic support obligations. Sec. 402. Adequate protection for investors. Sec. 403. Meetings of creditors and equity secu- 11 cases. Sec. 214. Exceptions to automatic stay in do- Sec. 711. Avoidance of statutory tax liens pro- mestic support obligation pro- rity holders. Sec. 404. Protection of refinance of security in- hibited. ceedings. Sec. 712. Payment of taxes in the conduct of Sec. 215. Nondischargeability of certain debts terest. Sec. 405. Executory contracts and unexpired business. for alimony, maintenance, and leases. Sec. 713. Tardily filed priority tax claims. support. Sec. 406. Creditors and equity security holders Sec. 714. Income tax returns prepared by tax Sec. 216. Continued liability of property. authorities. Sec. 217. Protection of domestic support claims committees. Sec. 407. Amendment to section 546 of title 11, Sec. 715. Discharge of the estate’s liability for against preferential transfer mo- United States Code. unpaid taxes. tions. Sec. 408. Limitation. Sec. 716. Requirement to file tax returns to con- Sec. 218. Disposable income defined. Sec. 409. Amendment to section 330(a) of title firm chapter 13 plans. Sec. 219. Collection of child support. Sec. 717. Standards for tax disclosure. Sec. 220. Nondischargeability of certain edu- 11, United States Code. Sec. 410. Postpetition disclosure and solicita- Sec. 718. Setoff of tax refunds. cational benefits and loans. tion. Sec. 719. Special provisions related to the treat- Subtitle C—Other Consumer Protections Sec. 411. Preferences. ment of State and local taxes. Sec. 221. Amendments to discourage abusive Sec. 412. Venue of certain proceedings. Sec. 720. Dismissal for failure to timely file tax bankruptcy filings. Sec. 413. Period for filing plan under chapter returns. Sec. 222. Sense of Congress. 11. TITLE VIII—ANCILLARY AND OTHER Sec. 223. Additional amendments to title 11, Sec. 414. Fees arising from certain ownership CROSS-BORDER CASES United States Code. interests. Sec. 224. Protection of retirement savings in Sec. 415. Creditor representation at first meet- Sec. 801. Amendment to add chapter 15 to title bankruptcy. ing of creditors. 11, United States Code. Sec. 225. Protection of education savings. Sec. 416. Definition of disinterested person. Sec. 802. Amendments to other chapters in title TITLE III—DISCOURAGING BANKRUPTCY Sec. 417. Factors for compensation of profes- 11, United States Code. ABUSE sional persons. Sec. 803. Claims relating to insurance deposits Sec. 418. Appointment of elected trustee. in cases ancillary to foreign pro- Sec. 301. Reinforcement of the fresh start. Sec. 419. Utility service. ceedings. Sec. 302. Discouraging bad faith repeat filings. Sec. 420. Bankruptcy fees. Sec. 303. Curbing abusive filings. TITLE IX—FINANCIAL CONTRACT Sec. 421. More complete information regarding Sec. 304. Debtor retention of personal property PROVISIONS assets of the estate. security. Sec. 901. Bankruptcy Code amendments. Sec. 305. Relief from the automatic stay when Subtitle B—Small Business Bankruptcy Sec. 902. Damage measure. the debtor does not complete in- Provisions Sec. 903. Asset-backed securitizations. tended surrender of consumer debt Sec. 431. Flexible rules for disclosure statement Sec. 904. Effective date; application of amend- collateral. and plan. ments.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00049 Fmt 4624 Sfmt 6343 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S394 CONGRESSIONAL RECORD — SENATE February 7, 2000 TITLE X—PROTECTION OF FAMILY Sec. 1335. Clarification of tax treatment of divi- Sec. 1407. Effect of conversion. FARMERS AND FAMILY FISHERMEN sion of section 457 plan benefits Sec. 1408. Allowance of administrative ex- Sec. 1001. Reenactment of chapter 12. upon divorce. penses. Sec. 1002. Debt limit increase. Sec. 1336. Modification of safe harbor relief for Sec. 1409. Exceptions to discharge. Sec. 1003. Elimination of requirement that fam- hardship withdrawals from cash Sec. 1410. Effect of discharge. ily farmer and spouse receive over or deferred arrangements. Sec. 1411. Protection against discriminatory treatment. 50 percent of income from farming PART III—INCREASING PORTABILITY FOR Sec. 1412. Property of the estate. operation in year prior to bank- PARTICIPANTS Sec. 1413. Preferences. ruptcy. Sec. 1341. Rollovers allowed among various Sec. 1414. Postpetition transactions. Sec. 1004. Certain claims owed to governmental types of plans. Sec. 1415. Disposition of property of the estate. units. Sec. 1342. Rollovers of IRAs into workplace re- Sec. 1416. General provisions. Sec. 1005. Prohibition of retroactive assessment tirement plans. Sec. 1417. Abandonment of railroad line. of disposable income. Sec. 1343. Rollovers of after-tax contributions. Sec. 1418. Contents of plan. Sec. 1006. Family fishermen. Sec. 1344. Hardship exception to 60-day rule. Sec. 1419. Discharge under chapter 12. TITLE XI—HEALTH CARE AND EMPLOYEE Sec. 1345. Treatment of forms of distribution. Sec. 1420. Bankruptcy cases and proceedings. BENEFITS Sec. 1346. Rationalization of restrictions on dis- Sec. 1421. Knowing disregard of bankruptcy Sec. 1101. Definitions. tributions. law or rule. Sec. 1422. Transfers made by nonprofit chari- Sec. 1102. Disposal of patient records. Sec. 1347. Purchase of service credit in govern- table corporations. Sec. 1103. Administrative expense claim for mental defined benefit plans. Sec. 1423. Protection of valid purchase money costs of closing a health care busi- Sec. 1348. Employers may disregard rollovers for purposes of cash-out amounts. security interests. ness. Sec. 1424. Extensions. Sec. 1104. Appointment of ombudsman to act as Sec. 1349. Minimum distribution and inclusion requirements for section 457 plans. Sec. 1425. Bankruptcy judgeships. patient advocate. Sec. 1426. Family fishermen. Sec. 1105. Debtor in possession; duty of trustee PART IV—STRENGTHENING PENSION SECURITY Sec. 1427. Compensating trustees. to transfer patients. AND ENFORCEMENT Sec. 1428. Amendment to section 362 of title 11, Sec. 1106. Establishment of policy and protocols Sec. 1351. Repeal of 150 percent of current li- United States Code. relating to bankruptcies of health ability funding limit. Sec. 1429. Provision of electronic FTC pamphlet care businesses. Sec. 1352. Maximum contribution deduction with electronic credit card appli- Sec. 1107. Exclusion from program participation rules modified and applied to all cations and solicitations. not subject to automatic stay. defined benefit plans. Sec. 1430. No bankruptcy for insolvent political TITLE XII—AMENDMENTS TO FAIR LABOR Sec. 1353. Excise tax relief for sound pension committees. STANDARDS ACT OF 1938 funding. Sec. 1431. Federal election law fines and pen- Sec. 1201. Minimum wage. Sec. 1354. Excise tax on failure to provide notice alties as nondischargeable debt. Sec. 1202. Regular rate for overtime purposes. by defined benefit plans signifi- Sec. 1432. Prohibition on certain retroactive fi- cantly reducing future benefit ac- nance charges. TITLE XIII—TAX RELIEF cruals. Sec. 1433. Sense of Senate concerning credit Sec. 1300. Amendment of 1986 code. Sec. 1355. Protection of investment of employee worthiness. Subtitle A—Small Business Tax Relief contributions to 401(K) plans. Sec. 1434. Judicial education. Sec. 1435. United States trustee program filing Sec. 1301. Increase in expensing limitation to Sec. 1356. Treatment of multiemployer plans under section 415. fee increase. $30,000. Sec. 1436. Providing requested tax documents to Sec. 1302. Repeal of temporary unemployment PART V—REDUCING REGULATORY BURDENS the court. tax. Sec. 1361. Modification of timing of plan valu- Sec. 1437. Definition of family farmer. Sec. 1303. Full deduction of health insurance ations. Sec. 1438. Encouraging creditworthiness. costs for self-employed individ- Sec. 1362. ESOP dividends may be reinvested Sec. 1439. Property no longer subject to redemp- uals. without loss of dividend deduc- tion. Sec. 1304. Permanent extension of work oppor- tion. Sec. 1440. Availability of toll-free access to in- tunity tax credit. Sec. 1363. Repeal of transition rule relating to formation. Sec. 1305. Small businesses allowed increased certain highly compensated em- TITLE XV—GENERAL EFFECTIVE DATE; deduction for meal and entertain- ployees. APPLICATION OF AMENDMENTS ment expenses. Sec. 1364. Employees of tax-exempt entities. Sec. 1501. Effective date; application of amend- Subtitle B—Deduction for Health and Long- Sec. 1365. Clarification of treatment of em- ments. Term Care Insurance ployer-provided retirement advice. Sec. 1366. Reporting simplification. TITLE XVI—FINANCIAL INSTITUTIONS Sec. 1311. Deduction for health and long-term INSOLVENCY IMPROVEMENT care insurance costs of individ- Sec. 1367. Improvement of employee plans com- uals not participating in em- pliance resolution system. Sec. 1601. Short title. Sec. 1602. Treatment of certain agreements by ployer-subsidized health plans. Sec. 1368. Modification of exclusion for em- ployer-provided transit passes. conservators or receivers of in- Subtitle C—Pension Tax Relief Sec. 1369. Repeal of the multiple use test. sured depository institutions. PART I—EXPANDING COVERAGE Sec. 1370. Flexibility in nondiscrimination, cov- Sec. 1603. Authority of the corporation with re- Sec. 1321. Increase in benefit and contribution erage, and line of business rules. spect to failed and failing institu- limits. Sec. 1371. Extension to international organiza- tions. Sec. 1322. Plan loans for subchapter s owners, tions of moratorium on applica- Sec. 1604. Amendments relating to transfers of partners, and sole proprietors. tion of certain nondiscrimination qualified financial contracts. Sec. 1323. Modification of top-heavy rules. rules applicable to State and local Sec. 1605. Amendments relating to Sec. 1324. Elective deferrals not taken into ac- plans. disaffirmance or repudiation of qualified financial contracts. count for purposes of deduction PART VI—PLAN AMENDMENTS limits. Sec. 1606. Clarifying amendment relating to Sec. 1381. Provisions relating to plan amend- Sec. 1325. Repeal of coordination requirements master agreements. ments. for deferred compensation plans Sec. 1607. Federal Deposit Insurance Corpora- of State and local governments Subtitle D—Revenue Provisions tion Improvement Act of 1991. and tax-exempt organizations. Sec. 1391. Modification of installment method Sec. 1608. Recordkeeping requirements. Sec. 1609. Exemptions from contemporaneous Sec. 1326. Elimination of user fee for requests to and repeal of installment method execution requirement. IRS regarding pension plans. for accrual method taxpayers. Sec. 1610. SIPC stay. Sec. 1327. Deduction limits. Sec. 1392. Modification of estimated tax rules Sec. 1611. Federal Reserve collateral require- Sec. 1328. Option to treat elective deferrals as for closely held real estate invest- ments. after-tax contributions. ment trusts. Sec. 1612. Effective date; application of amend- PART II—ENHANCING FAIRNESS FOR WOMEN TITLE XIV—TECHNICAL AMENDMENTS ments. Sec. 1331. Catchup contributions for individuals Sec. 1401. Definitions. TITLE XVII—METHAMPHETAMINE AND age 50 or over. Sec. 1402. Adjustment of dollar amounts. OTHER CONTROLLED SUBSTANCES Sec. 1332. Equitable treatment for contributions Sec. 1403. Extension of time. Sec. 1701. Short title. of employees to defined contribu- Sec. 1404. Technical amendments. tion plans. Sec. 1405. Penalty for persons who negligently Subtitle A—Methamphetamine Production, Sec. 1333. Faster vesting of certain employer or fraudulently prepare bank- Trafficking, and Abuse matching contributions. ruptcy petitions. CHAPTER 1—CRIMINAL PENALTIES Sec. 1334. Simplify and update the minimum Sec. 1406. Limitation on compensation of pro- Sec. 1711. Enhanced punishment of amphet- distribution rules. fessional persons. amine laboratory operations.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00050 Fmt 4624 Sfmt 6343 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S395 Sec. 1712. Enhanced punishment of amphet- Sec. 1792. Domestic terrorism assessment and re- wise a dependent. In addition, the debtor’s amine or methamphetamine lab- covery. monthly expenses shall include the debtor’s rea- oratory operators. Sec. 1793. Antidrug messages on Federal Gov- sonably necessary expenses incurred to main- Sec. 1713. Mandatory restitution for violations ernment Internet websites. tain the safety of the debtor and the family of of Controlled Substances Act and Sec. 1794. State schools. the debtor from family violence as identified Controlled Substances Import and Sec. 1795. Student safety and family school under section 309 of the Family Violence Pre- Export Act relating to amphet- choice. vention and Services Act (42 U.S.C. 10408), or amine and methamphetamine. Sec. 1796. Transfer of revenues. other applicable Federal law. The expenses in- Sec. 1714. Methamphetamine paraphernalia. Sec. 1797. Increased penalties for distributing cluded in the debtor’s monthly expenses de- CHAPTER 2—ENHANCED LAW ENFORCEMENT drugs to minors. scribed in the preceding sentence shall be kept Sec. 1721. Environmental hazards associated Sec. 1798. Increased penalty for drug traf- confidential by the court. with illegal manufacture of am- ficking in or near a school or ‘‘(II) In addition, the debtor’s monthly ex- phetamine and methamphetamine. other protected location. penses may include, if applicable, the continu- Sec. 1722. Reduction in retail sales transaction Sec. 1799. Severability. ation of actual expenses paid by the debtor that threshold for non-safe harbor TITLE XVIII—PROTECTION FROM THE IM- are reasonable and necessary for care and sup- products containing PACT OF BANKRUPTCY OF CERTAIN port of an elderly, chronically ill, or disabled pseudoephedrine or ELECTRIC UTILITIES household member or member of the debtor’s im- mediate family (including parents, grand- phenlypropanolamine. Sec. 1801. Short title. parents, and siblings of the debtor, the depend- Sec. 1723. Training for Drug Enforcement Ad- Sec. 1802. Findings and purposes. ents of the debtor, and the spouse of the debtor ministration and State and local Sec. 1803. Unlawful contract and amended con- in a joint case) who is not a dependent and who law enforcement personnel relat- tract. is unable to pay for such reasonable and nec- ing to clandestine laboratories. Sec. 1804. Exclusive enforcement. Sec. 1724. Combating methamphetamine and essary expenses. amphetamine in high intensity TITLE XIX—CONSUMER CREDIT ‘‘(iii) The debtor’s average monthly payments drug trafficking areas. DISCLOSURE on account of secured debts shall be calculated Sec. 1725. Combating amphetamine and meth- Sec. 1901. Enhanced disclosures under an open as— amphetamine manufacturing and end credit plan. ‘‘(I) the sum of— trafficking. Sec. 1902. Enhanced disclosure for credit exten- ‘‘(aa) the total of all amounts scheduled as contractually due to secured creditors in each CHAPTER 3—ABUSE PREVENTION AND sions secured by a dwelling. month of the 60 months following the date of the TREATMENT Sec. 1903. Disclosures related to ‘‘introductory rates’’. petition; and Sec. 1731. Expansion of methamphetamine re- Sec. 1904. Internet-based credit card solicita- ‘‘(bb) any additional payments to secured search. creditors necessary for the debtor, in filing a Sec. 1732. Methamphetamine and amphetamine tions. Sec. 1905. Disclosures related to late payment plan under chapter 13 of this title, to maintain treatment initiative by Center for possession of the debtor’s primary residence, Substance Abuse Treatment. deadlines and penalties. Sec. 1906. Prohibition on certain actions for motor vehicle, or other property necessary for Sec. 1733. Expansion of methamphetamine the support of the debtor and the debtor’s de- abuse prevention efforts. failure to incur finance charges. Sec. 1907. Dual use debit card. pendents, that serves as collateral for secured Sec. 1734. Study of methamphetamine treat- debts; divided by ment. Sec. 1908. Study of bankruptcy impact of credit extended to dependent students. ‘‘(II) 60. CHAPTER 4—REPORTS ‘‘(iv) The debtor’s expenses for payment of all Sec. 1741. Reports on consumption of meth- TITLE I—NEEDS-BASED BANKRUPTCY priority claims (including priority child support amphetamine and other illicit SEC. 101. CONVERSION. and alimony claims) shall be calculated as— drugs in rural areas, metropolitan Section 706(c) of title 11, United States Code, ‘‘(I) the total amount of debts entitled to pri- areas, and consolidated metropoli- is amended by inserting ‘‘or consents to’’ after ority; divided by tan areas. ‘‘requests’’. ‘‘(II) 60. Sec. 1742. Report on diversion of ordinary over- ‘‘(B)(i) In any proceeding brought under this SEC. 102. DISMISSAL OR CONVERSION. subsection, the presumption of abuse may be re- the-counter pseudoephedrine and (a) IN GENERAL.—Section 707 of title 11, phenylpropanolamine products. butted by demonstrating special circumstances United States Code, is amended— that justify additional expenses or adjustments Subtitle B—Controlled Substances Generally (1) by striking the section heading and insert- of current monthly total income. In order to es- CHAPTER 1—CRIMINAL MATTERS ing the following: tablish special circumstances, the debtor shall be Sec. 1751. Enhanced punishment for trafficking ‘‘§ 707. Dismissal of a case or conversion to a required to— in list I chemicals. case under chapter 11 or 13’’; ‘‘(I) itemize each additional expense or adjust- Sec. 1752. Mail order requirements. and ment of income; and Sec. 1753. Increased penalties for distributing (2) in subsection (b)— ‘‘(II) provide— drugs to minors. (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; ‘‘(aa) documentation for such expenses; and ‘‘(bb) a detailed explanation of the special cir- Sec. 1754. Increased penalty for drug traf- (B) in paragraph (1), as redesignated by sub- cumstances that make such expenses necessary ficking in or near a school or paragraph (A) of this paragraph— and reasonable. other protected location. (i) in the first sentence— ‘‘(ii) The debtor, and the attorney for the Sec. 1755. Advertisments for drug paraphernalia (I) by striking ‘‘but not at the request or sug- debtor if the debtor has an attorney, shall attest and schedule I controlled sub- gestion’’ and inserting ‘‘, panel trustee or’’; under oath to the accuracy of any information stances. (II) by inserting ‘‘, or, with the debtor’s con- provided to demonstrate that additional ex- Sec. 1756. Theft and transportation of anhy- sent, convert such a case to a case under chap- penses or adjustments to income are required. drous ammonia for purposes of il- ter 11 or 13 of this title,’’ after ‘‘consumer licit production of controlled sub- ‘‘(iii) The presumption of abuse may be rebut- debts’’; and ted if the additional expenses or adjustments to stances. (III) by striking ‘‘substantial abuse’’ and in- Sec. 1757. Criminal prohibition on distribution income referred to in clause (i) cause the prod- serting ‘‘abuse’’; and of certain information relating to uct of the debtor’s current monthly income re- (ii) by striking the next to last sentence; and the manufacture of controlled duced by the amounts determined under clauses (C) by adding at the end the following: substances. (ii), (iii), and (iv) of subparagraph (A) multi- ‘‘(2)(A)(i) In considering under paragraph (1) CHAPTER 2—OTHER MATTERS plied by 60 to be less than the lesser of— whether the granting of relief would be an ‘‘(I) 25 percent of the debtor’s nonpriority un- Sec. 1761. Waiver authority for physicians who abuse of the provisions of this chapter, the court secured claims; or dispense or prescribe certain nar- shall presume abuse exists if the debtor’s current ‘‘(II) $15,000. cotic drugs for maintenance treat- monthly income reduced by the amounts deter- ‘‘(C)(i) As part of the schedule of current in- ment or detoxification treatment. mined under clauses (ii), (iii), and (iv), and mul- come and expenditures required under section Subtitle C—Cocaine Powder tiplied by 60 is not less than the lesser of— 521, the debtor shall include a statement of the Sec. 1771. Short title. ‘‘(I) 25 percent of the debtor’s nonpriority un- debtor’s current monthly income, and the cal- Sec. 1772. Sentencing for violations involving secured claims in the case; or culations that determine whether a presumption cocaine powder. ‘‘(II) $15,000. arises under subparagraph (A)(i), that shows ‘‘(ii)(I) The debtor’s monthly expenses shall be Subtitle D—Education Matters how each such amount is calculated. the applicable monthly (excluding payments for ‘‘(ii) The Supreme Court shall promulgate Sec. 1781. Safe schools. debts) expenses under standards issued by the rules under section 2075 of title 28, that prescribe Sec. 1782. Student safety and family school Internal Revenue Service for the area in which a form for a statement under clause (i) and may choice. the debtor resides, as in effect on the date of the provide general rules on the content of the Sec. 1783. Transfer of revenues. entry of the order for relief, for the debtor, the statement. Subtitle E—Miscellaneous dependents of the debtor, and the spouse of the ‘‘(3) In considering under paragraph (1) Sec. 1791. Notice; clarification. debtor in a joint case, if the spouse is not other- whether the granting of relief would be an

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00051 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S396 CONGRESSIONAL RECORD — SENATE February 7, 2000 abuse of the provisions of this chapter in a case essary expenses standard issued by the Internal ‘‘(c)(1) In this subsection— in which the presumption in subparagraph Revenue Service and section 707(b)(2)(A) (iii) ‘‘(A) the term ‘crime of violence’ has the (A)(i) of such paragraph does not apply or has and (iv)) multiplied by 60 is less than the greater meaning given that term in section 16 of title 18; been rebutted, the court shall consider— of— and ‘‘(A) whether the debtor filed the petition in ‘‘(i) 25 percent of the debtor’s nonpriority un- ‘‘(B) the term ‘drug trafficking crime’ has the bad faith; or secured claims in the case; or meaning given that term in section 924(c)(2) of ‘‘(B) the totality of the circumstances (includ- ‘‘(ii) $15,000. title 18. ing whether the debtor seeks to reject a personal ‘‘(4)(A) The court shall order the counsel for ‘‘(2) Except as provided in paragraph (3), services contract and the financial need for the debtor to reimburse the panel trustee for all after notice and a hearing, the court, on a mo- such rejection as sought by the debtor) of the reasonable costs in prosecuting a motion tion by the victim of a crime of violence or a debtor’s financial situation demonstrates brought under section 707(b), including reason- drug trafficking crime, or at the request of a abuse.’’. able attorneys’ fees, if— party in interest, shall dismiss a voluntary case (b) DEFINITION.—Title 11, United States Code, ‘‘(i) a panel trustee appointed under section filed by an individual debtor under this chapter is amended— 586(a)(1) of title 28 brings a motion for dismissal if that individual was convicted of that crime. (1) in section 101, by inserting after paragraph or conversion under this subsection; and ‘‘(3) The court may not dismiss a case under (10) the following: ‘‘(ii) the court— paragraph (2) if the debtor establishes by a pre- ‘‘(10A) ‘current monthly income’— ‘‘(I) grants that motion; and ponderance of the evidence that the filing of a ‘‘(A) means the average monthly income from ‘‘(II) finds that the action of the counsel for case under this chapter is necessary to satisfy a all sources which the debtor, or in a joint case, the debtor in filing under this chapter was frivo- claim for a domestic support obligation.’’. the debtor and the debtor’s spouse, receive with- lous. (e) CLERICAL AMENDMENT.—The table of sec- out regard to whether the income is taxable in- ‘‘(B) If the court finds that the attorney for tions for chapter 7 of title 11, United States come, derived during the 180-day period pre- the debtor violated Rule 9011, at a minimum, the Code, is amended by striking the item relating to ceding the date of determination; and court shall order— section 707 and inserting the following: ‘‘(B) includes any amount paid by any entity ‘‘(i) the assessment of an appropriate civil ‘‘707. Dismissal of a case or conversion to a case other than the debtor (or, in a joint case, the penalty against the counsel for the debtor; and under chapter 11 or 13.’’. debtor and the debtor’s spouse), on a regular ‘‘(ii) the payment of the civil penalty to the SEC. 103. FINDINGS AND STUDY. basis to the household expenses of the debtor or panel trustee or the United States trustee. (a) FINDINGS.—Congress finds that the Sec- the debtor’s dependents (and, in a joint case, ‘‘(C) In the case of a petition referred to in retary of the Treasury has the inherent author- the debtor’s spouse if not otherwise a depend- subparagraph (B), the signature of an attorney ity to alter the Internal Revenue Service stand- ent), but excludes benefits received under the shall constitute a certificate that the attorney ards established to set guidelines for repayment Social Security Act;’’; and has— plans as needed to accommodate their use under (2) in section 704— ‘‘(i) performed a reasonable investigation into section 707(b) of title 11, United States Code. (A) by inserting ‘‘(a)’’ before ‘‘The trustee the circumstances that gave rise to the petition; (b) STUDY.— shall—’’; and and (1) IN GENERAL.—Not later than 3 years after (B) by adding at the end the following: ‘‘(ii) determined that the petition— ‘‘(b)(1) With respect to an individual debtor ‘‘(I) is well grounded in fact; and the date of enactment of this Act, the Secretary under this chapter— ‘‘(II) is warranted by existing law or a good of the Treasury, in consultation with the Direc- ‘‘(A) the United States trustee or bankruptcy faith argument for the extension, modification, tor of the Executive Office of United States administrator shall review all materials filed by or reversal of existing law and does not con- Trustees, shall submit a report to the Committee the debtor and, not later than 10 days before the stitute an abuse under paragraph (1). on the Judiciary of the Senate and the Com- first meeting of creditors, file with the court a ‘‘(5)(A) Except as provided in subparagraph mittee on the Judiciary of the House of Rep- statement as to whether the debtor’s case would (B) and subject to paragraph (6), the court may resentatives containing the findings of the Sec- be presumed to be an abuse under section 707(b); award a debtor all reasonable costs in con- retary concerning the utilization of Internal and testing a motion brought by a party in interest Revenue Service standards for determining— ‘‘(B) not later than 5 days after receiving a (other than a panel trustee or United States (A) the current monthly expenses of a debtor statement under subparagraph (A), the court trustee) under this subsection (including reason- under section 707(b) of title 11, United States shall provide a copy of the statement to all able attorneys’ fees) if— Code; and creditors. ‘‘(i) the court does not grant the motion; and (B) the impact that the application of those ‘‘(2) The United States trustee or bankruptcy ‘‘(ii) the court finds that— standards has had on debtors and on the bank- administrator shall not later than 30 days after ‘‘(I) the position of the party that brought the ruptcy courts. receiving a statement filed under paragraph (1) motion was not substantially justified; or (2) RECOMMENDATION.—The report under file a motion to dismiss or convert under section ‘‘(II) the party brought the motion solely for paragraph (1) may include recommendations for 707(b), or file a statement setting forth the rea- the purpose of coercing a debtor into waiving a amendments to title 11, United States Code, that sons the United States trustee or bankruptcy ad- right guaranteed to the debtor under this title. are consistent with the findings of the Secretary ministrator does not believe that such a motion ‘‘(B) A party in interest that has a claim of an of the Treasury under paragraph (1). would be appropriate, if based on the filing of aggregate amount less than $1,000 shall not be SEC. 104. NOTICE OF ALTERNATIVES. such statement with the court, the United States subject to subparagraph (A). Section 342(b) of title 11, United States Code, trustee or bankruptcy administrator determines ‘‘(6)(A) Only the judge, United States trustee, is amended to read as follows: that the debtor’s case should be presumed to be bankruptcy administrator, or panel trustee may ‘‘(b)(1) Before the commencement of a case an abuse under section 707(b) and the product bring a motion under section 707(b), if the cur- under this title by an individual whose debts are of the debtor’s current monthly income, multi- rent monthly income of the debtor, or in a joint primarily consumer debts, that individual shall plied by 12 is not less than— case, the debtor and the debtor’s spouse, as of be given or obtain (as required in section ‘‘(A) the highest national or applicable State the date of the order for relief, when multiplied 521(a)(1), as part of the certification process median family income reported for a family of by 12, is equal to or less than— under subchapter I of chapter 5) a written no- equal or lesser size, whichever is greater; or ‘‘(i) the national or applicable State median tice prescribed by the United States trustee for ‘‘(B) in the case of a household of 1 person, family income reported for a family of equal or the district in which the petition is filed under the national or applicable State median house- lesser size, whichever is greater; or section 586 of title 28. hold income for 1 earner, whichever is greater. ‘‘(ii) in the case of a household of 1 person, ‘‘(2) The notice shall contain the following: ‘‘(3) In any case in which a motion to dismiss the national or applicable State median house- ‘‘(A) A brief description of chapters 7, 11, 12, or convert, or a statement is required to be filed hold income last reported by the Bureau of the and 13 and the general purpose, benefits, and by this subsection, the United States trustee or Census for 1 earner, whichever is greater. costs of proceeding under each of those chap- bankruptcy administrator may decline to file a ‘‘(B) Notwithstanding subparagraph (A), the ters. motion to dismiss or convert pursuant to section national or applicable State median family in- ‘‘(B) A brief description of services that may 704(b)(2) or if the product of the debtor’s current come for a family of more than 4 individuals be available to that individual from a nonprofit monthly income multiplied by 12— shall be the national or applicable State median budget and credit counseling agency that is ap- ‘‘(A)(i) exceeds 100 percent, but does not ex- family income last reported by the Bureau of the proved by the United States trustee for that dis- ceed 150 percent of the national or applicable Census for a family of 4 individuals, whichever trict.’’. State median household income reported for a is greater, plus $583 for each additional member SEC. 105. DEBTOR FINANCIAL MANAGEMENT household of equal size, whichever is greater; or of that family.’’. TRAINING TEST PROGRAM. ‘‘(ii) in the case of a household of 1 person, (c) NONLIMITATION OF INFORMATION.—Noth- (a) DEVELOPMENT OF FINANCIAL MANAGEMENT exceeds 100 percent but does not exceed 150 per- ing in this title shall limit the ability of a cred- AND TRAINING CURRICULUM AND MATERIALS.— cent of the national or applicable State median itor to provide information to a judge, United The Director of the Executive Office for United household income reported for 1 earner, which- States trustee, bankruptcy administrator or States Trustees (in this section referred to as the ever is greater; and panel trustee. ‘‘Director’’) shall— ‘‘(B) the product of the debtor’s current (d) DISMISSAL FOR CERTAIN CRIMES.—Section (1) consult with a wide range of individuals monthly income (reduced by the amounts deter- 707 of title 11, United States Code, as amended who are experts in the field of debtor education, mined under section 707(b)(2)(A)(ii)) (except for by subsection (a) of this section, is amended by including trustees who are appointed under the amount calculated under the other nec- adding at the end the following: chapter 13 of title 11, United States Code, and

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00052 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S397 who operate financial management education with respect to a debtor who submits to the bankruptcy administrator shall require the cred- programs for debtors; and court a certification that— it counseling service, at a minimum— (2) develop a financial management training ‘‘(i) describes exigent circumstances that merit ‘‘(1) to be a nonprofit budget and credit coun- curriculum and materials that may be used to a waiver of the requirements of paragraph (1); seling agency, the majority of the board of di- educate individual debtors concerning how to ‘‘(ii) states that the debtor requested credit rectors of which— better manage their finances. counseling services from an approved nonprofit ‘‘(A) are not employed by the agency; and (b) TEST.— budget and credit counseling agency, but was ‘‘(B) will not directly or indirectly benefit fi- (1) IN GENERAL.—The Director shall select 3 unable to obtain the services referred to in para- nancially from the outcome of a credit coun- judicial districts of the United States in which graph (1) during the 5-day period beginning on seling session; to test the effectiveness of the financial manage- the date on which the debtor made that request; ‘‘(2) if a fee is charged for counseling services, ment training curriculum and materials devel- and to charge a reasonable fee, and to provide serv- oped under subsection (a). ‘‘(iii) is satisfactory to the court. ices without regard to ability to pay the fee; (2) AVAILABILITY OF CURRICULUM AND MATE- ‘‘(B) With respect to a debtor, an exemption ‘‘(3) to provide for safekeeping and payment RIALS.—For a 1-year period beginning not later under subparagraph (A) shall cease to apply to of client funds, including an annual audit of than 270 days after the date of enactment of this that debtor on the date on which the debtor the trust accounts and appropriate employee Act, the curriculum and materials referred to in meets the requirements of paragraph (1), but in bonding; paragraph (1) shall be made available by the Di- no case may the exemption apply to that debtor ‘‘(4) to provide full disclosures to clients, in- rector, directly or indirectly, on request to indi- after the date that is 30 days after the debtor cluding funding sources, counselor qualifica- vidual debtors in cases filed during that 1-year files a petition, except that the court, for cause, tions, and possible impact on credit reports; period under chapter 7 or 13 of title 11, United may order an additional 15 days.’’. ‘‘(5) to provide adequate counseling with re- States Code. (b) CHAPTER 7 DISCHARGE.—Section 727(a) of spect to client credit problems that includes an (c) EVALUATION.— title 11, United States Code, is amended— analysis of their current situation, what (1) IN GENERAL.—During the 1-year period re- (1) in paragraph (9), by striking ‘‘or’’ at the brought them to that financial status, and how ferred to in subsection (b), the Director shall end; they can develop a plan to handle the problem evaluate the effectiveness of— (2) in paragraph (10), by striking the period without incurring negative amortization of their (A) the financial management training cur- and inserting ‘‘; or’’; and debts; and riculum and materials developed under sub- (3) by adding at the end the following: ‘‘(6) to provide trained counselors who receive ‘‘(11) after the filing of the petition, the debtor section (a); and no commissions or bonuses based on the coun- failed to complete an instructional course con- (B) a sample of existing consumer education seling session outcome. cerning personal financial management de- programs such as those described in the report ‘‘(c)(1) No credit counseling service may pro- scribed in section 111.’’. of the National Bankruptcy Review Commission vide to a credit reporting agency information (c) CHAPTER 13 DISCHARGE.—Section 1328 of issued on October 20, 1997, that are representa- concerning whether an individual debtor has re- title 11, United States Code, is amended by add- tive of consumer education programs carried out ceived or sought instruction concerning personal ing at the end the following: by— financial management from the credit coun- ‘‘(g) The court shall not grant a discharge (i) the credit industry; seling service. under this section to a debtor, unless after filing (ii) trustees serving under chapter 13 of title ‘‘(2) A credit counseling service that willfully a petition the debtor has completed an instruc- 11, United States Code; and or negligently fails to comply with any require- tional course concerning personal financial (iii) consumer counseling groups. ment under this title with respect to a debtor management described in section 111. (2) REPORT.—Not later than 3 months after ‘‘(h) Subsection (g) shall not apply with re- shall be liable for damages in an amount equal concluding the evaluation under paragraph (1), spect to a debtor who resides in a district for to the sum of— the Director shall submit a report to the Speaker which the United States trustee or bankruptcy ‘‘(A) any actual damages sustained by the of the House of Representatives and the Presi- administrator of the bankruptcy court of that debtor as a result of the violation; and dent pro tempore of the Senate, for referral to district determines that the approved instruc- ‘‘(B) any court costs or reasonable attorneys’ the appropriate committees of Congress, con- tional courses are not adequate to service the fees (as determined by the court) incurred in an taining the findings of the Director regarding additional individuals who would be required to action to recover those damages.’’. the effectiveness of such curriculum, such mate- complete the instructional course by reason of (2) CLERICAL AMENDMENT.—The table of sec- rials, and such programs. the requirements of this section. tions for chapter 1 of title 11, United States SEC. 106. CREDIT COUNSELING. ‘‘(i) Each United States trustee or bankruptcy Code, is amended by adding at the end the fol- (a) WHO MAY BEADEBTOR.—Section 109 of administrator that makes a determination de- lowing: title 11, United States Code, is amended by add- scribed in subsection (h) shall review that deter- ‘‘111. Nonprofit budget and credit counseling ing at the end the following: mination not later than 1 year after the date of agencies; financial management ‘‘(h)(1) Subject to paragraphs (2) and (3), and that determination, and not less frequently than instructional courses.’’. notwithstanding any other provision of this sec- every year thereafter.’’. (f) LIMITATION.—Section 362 of title 11, United tion, an individual may not be a debtor under (d) DEBTOR’S DUTIES.—Section 521 of title 11, States Code, is amended by adding at the end this title unless that individual has, during the United States Code, is amended— the following: 180-day period preceding the date of filing of the (1) by inserting ‘‘(a)’’ before ‘‘The debtor ‘‘(i) If a case commenced under chapter 7, 11, petition of that individual, received from an ap- shall—’’; and or 13 is dismissed due to the creation of a debt proved nonprofit budget and credit counseling (2) by adding at the end the following: repayment plan, for purposes of subsection agency described in section 111(a) an individual ‘‘(b) In addition to the requirements under (c)(3), any subsequent case commenced by the or group briefing (including a briefing con- subsection (a), an individual debtor shall file debtor under any such chapter shall not be pre- ducted by telephone or on the Internet) that with the court— sumed to be filed not in good faith.’’. outlined the opportunities for available credit ‘‘(1) a certificate from the approved nonprofit TITLE II—ENHANCED CONSUMER counseling and assisted that individual in per- budget and credit counseling agency that pro- PROTECTION forming a related budget analysis. vided the debtor services under section 109(h); ‘‘(2)(A) Paragraph (1) shall not apply with re- and Subtitle A—Penalties for Abusive Creditor spect to a debtor who resides in a district for ‘‘(2) a copy of the debt repayment plan, if Practices which the United States trustee or bankruptcy any, developed under section 109(h) through the SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE administrator of the bankruptcy court of that approved nonprofit budget and credit coun- RESOLUTION. district determines that the approved nonprofit seling agency referred to in paragraph (1).’’. (a) REDUCTION OF CLAIM.—Section 502 of title budget and credit counseling agency for that (e) GENERAL PROVISIONS.— 11, United States Code, is amended by adding at district is not reasonably able to provide ade- (1) IN GENERAL.—Chapter 1 of title 11, United the end the following: quate services to the additional individuals who States Code, is amended by adding at the end ‘‘(k)(1) The court, on the motion of the debtor would otherwise seek credit counseling from the following: and after a hearing, may reduce a claim filed that agency by reason of the requirements of ‘‘§ 111. Nonprofit budget and credit counseling under this section based in whole on unsecured paragraph (1). agencies; financial management instruc- consumer debts by not more than 20 percent of ‘‘(B) Each United States trustee or bank- tional courses the claim, if— ruptcy administrator that makes a determina- ‘‘(a) The clerk of each district shall maintain ‘‘(A) the claim was filed by a creditor who un- tion described in subparagraph (A) shall review a list of nonprofit budget and credit counseling reasonably refused to negotiate a reasonable al- that determination not later than 1 year after ageancies that provide 1 or more programs de- ternative repayment schedule proposed by an the date of that determination, and not less fre- scribed in section 109(h) and a list of instruc- approved credit counseling agency acting on be- quently than every year thereafter. Notwith- tional courses concerning personal financial half of the debtor; standing the preceding sentence, a nonprofit management that have been approved by— ‘‘(B) the offer of the debtor under subpara- budget and credit counseling service may be dis- ‘‘(1) the United States trustee; or graph (A)— approved by the United States trustee or bank- ‘‘(2) the bankruptcy administrator for the dis- ‘‘(i) was made at least 60 days before the filing ruptcy administrator at any time. trict. of the petition; and ‘‘(3)(A) Subject to subparagraph (B), the re- ‘‘(b) For inclusion on the approved list under ‘‘(ii) provided for payment of at least 60 per- quirements of paragraph (1) shall not apply subsection (a), the United States trustee or cent of the amount of the debt over a period not

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00053 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S398 CONGRESSIONAL RECORD — SENATE February 7, 2000 to exceed the repayment period of the loan, or a after the date of this disclosure. Consult your dates or period of payments scheduled to repay reasonable extension thereof; and credit agreement.’. the obligations reaffirmed to the extent then ‘‘(C) no part of the debt under the alternative ‘‘(E) The ‘Annual Percentage Rate’, using known by the disclosing party; or repayment schedule is nondischargeable. that term, which shall be disclosed as— ‘‘(iii) by describing the debtor’s repayment ob- ‘‘(2) The debtor shall have the burden of prov- ‘‘(i) if, at the time the petition is filed, the ligations with reasonable specificity to the ex- ing, by clear and convincing evidence, that— debt is open end credit as defined pursuant to tent then known by the disclosing party. ‘‘(A) the creditor unreasonably refused to con- the Truth in Lending Act, title 15, United States ‘‘(I) The following statement: ‘Note: When sider the debtor’s proposal; and Code, section 1601 et. seq., then— this disclosure talks about what a creditor ‘‘(B) the proposed alternative repayment ‘‘(I) the annual percentage rate determined ‘‘may’’ do, it does not use the word ‘‘may’’ to schedule was made in the 60-day period speci- pursuant to title 15, United States Code, section give the creditor specific permission. The word fied in paragraph (1)(B)(i).’’. 1637(b) (5) and (6), as applicable, as disclosed to ‘‘may’’ is used to tell you what might occur if (b) LIMITATION ON AVOIDABILITY.—Section 547 the debtor in the most recent periodic statement the law permits the creditor to take the action. of title 11, United States Code, is amended by prior to the agreement or, if no such periodic If you have questions about your reaffirmation adding at the end the following: statement has been provided the debtor during or what the law requires, talk to the attorney ‘‘(h) The trustee may not avoid a transfer if the prior six months, the annual percentage rate who helped you negotiate this agreement. If you such transfer was made as a part of an alter- as it would have been so disclosed at the time don’t have an attorney helping you, the judge native repayment plan between the debtor and the disclosure statement is given the debtor, or will explain the effect of your reaffirmation any creditor of the debtor created by an ap- to the extent this annual percentage rate is not when the reaffirmation hearing is held.’. proved credit counseling agency.’’. readily available or not applicable, then ‘‘(J) The following additional statements: SEC. 202. EFFECT OF DISCHARGE. ‘‘(II) the simple interest rate applicable to the ‘‘ ‘Reaffirming a debt is a serious financial de- Section 524 of title 11, United States Code, is amount reaffirmed as of the date the disclosure cision. The law requires you to take certain amended by adding at the end the following: statement is given to the debtor, or if different steps to make sure the decision is in your best ‘‘(i) The willful failure of a creditor to credit simple interest rates apply to different balances, interest. If these steps are not completed, the re- payments received under a plan confirmed the simple interest rate applicable to each such affirmation agreement is not effective, even under this title (including a plan of reorganiza- balance, identifying the amount of each such though you have signed it. ‘‘ ‘1. Read the disclosures in this Part A care- tion confirmed under chapter 11 of this title) in balance included in the amount reaffirmed, or fully. Consider the decision to reaffirm care- the manner required by the plan (including ‘‘(III) if the entity making the disclosure fully. Then, if you want to reaffirm, sign the re- crediting the amounts required under the plan) elects, to disclose the annual percentage rate affirmation agreement in Part B (or you may shall constitute a violation of an injunction under (I) and the simple interest rate under (II); ‘‘(ii) if, at the time the petition is filed, the use a separate agreement you and your creditor under subsection (a)(2).’’. debt is closed end credit as defined pursuant to agree on). SEC. 203. DISCOURAGING ABUSE OF REAFFIRMA- the Truth in Lending Act, title 15, United States ‘‘ ‘2. Complete and sign Part D and be sure TION PRACTICES. Code, section 1601 et seq., then— you can afford to make the payments you are (a) IN GENERAL.—Section 524 of title 11, ‘‘(I) the annual percentage rate pursuant to agreeing to make and have received a copy of United States Code, as amended by section 202 title 15, United States Code, section 1638(a)(4) as the disclosure statement and a completed and of this Act, is amended— disclosed to the debtor in the most recent disclo- signed reaffirmation agreement. (1) in subsection (c) by striking paragraph (2) sure statement given the debtor prior to the reaf- ‘‘ ‘3. If you were represented by an attorney and inserting the following: firmation agreement with respect to the debt, or, during the negotiation of the reaffirmation ‘‘(2) the debtor received the disclosures de- if no such disclosure statement was provided the agreement, the attorney must have signed the scribed in subsection (i) at or before the time the debtor, the annual percentage rate as it would certification in Part C. debtor signed the agreement.’’; have been so disclosed at the time the disclosure ‘‘ ‘4. If you were not represented by an attor- (2) by inserting at the end of the section the statement is given the debtor, or to the extent ney during the negotiation of the reaffirmation following: this annual percentage rate is not readily avail- agreement, you must have completed and signed ‘‘(i)(1) The disclosures required under sub- able or not applicable, then Part E. section (c) paragraph (2) of this section shall ‘‘(II) the simple interest rate applicable to the ‘‘ ‘5. The original of this disclosure must be consist of the disclosure statement described in amount reaffirmed as of the date the disclosure filed with the court by you or your creditor. If paragraph (3), completed as required in that statement is given the debtor, or if different sim- a separate reaffirmation agreement (other than paragraph, together with the agreement, state- ple interest rates apply to different balances, the the one in Part B) has been signed, it must be ment, declaration, motion and order described, simple interest rate applicable to each such bal- attached. respectively, in paragraphs (4) through (8) of ance, identifying the amount of such balance ‘‘ ‘6. If you were represented by an attorney this subsection, and shall be the only disclosures included in the amount reaffirmed, or during the negotiation of the reaffirmation required in connection with the reaffirmation. ‘‘(III) if the entity making the disclosure agreement, your reaffirmation agreement be- ‘‘(2) Disclosures made under this paragraph elects, to disclose the annual percentage rate comes effective upon filing with the court unless shall be made clearly and conspicuously and in under (I) and the simple interest rate under (II). the reaffirmation is presumed to be an undue writing. The terms ‘Amount Reaffirmed’ and ‘‘(F) If the underlying debt transaction was hardship as explained in Part D. ‘Annual Percentage Rate’ shall be disclosed disclosed as a variable rate transaction on the ‘‘ ‘7. If you were not represented by an attor- more conspicuously than other terms, data or most recent disclosure given pursuant to the ney during the negotiation of the reaffirmation information provided in connection with this Truth in Lending Act, title 15, United States agreement, it will not be effective unless the disclosure, except that the phrases ‘Before Code, section 1601 et seq., by stating ‘The inter- court approves it. The court will notify you of agreeing to reaffirm a debt, review these impor- est rate on your loan may be a variable interest the hearing on your reaffirmation agreement. tant disclosures’ and ‘Summary of Reaffirma- rate which changes from time to time, so that You must attend this hearing in bankruptcy tion Agreement’ may be equally conspicuous. the annual percentage rate disclosed here may court where the judge will review your agree- Disclosures may be made in a different order be higher or lower.’. ment. The bankruptcy court must approve the and may use terminology different from that set ‘‘(G) If the debt is secured by a security inter- agreement as consistent with your best interests, forth in paragraphs (2) through (8), except that est which has not been waived in whole or in except that no court approval is required if the the terms ‘Amount Reaffirmed’ and ‘Annual part or determined to be void by a final order of agreement is for a consumer debt secured by a Percentage Rate’ must be used where indicated. the court at the time of the disclosure, by dis- mortgage, deed of trust, security deed or other ‘‘(3) The disclosure statement required under closing that a security interest or lien in goods lien on your real property, like your home. this paragraph shall consist of the following: or property is asserted over some or all of the ob- ‘‘ ‘Your right to rescind a reaffirmation. You ‘‘(A) The statement: ‘Part A: Before agreeing ligations you are reaffirming and listing the may rescind (cancel) your reaffirmation at any to reaffirm a debt, review these important disclo- items and their original purchase price that are time before the bankruptcy court enters a dis- sures:’; subject to the asserted security interest, or if not charge order or within 60 days after the agree- ‘‘(B) Under the heading ‘Summary of Reaffir- a purchase-money security interest then listing ment is filed with the court, whichever is longer. mation Agreement’, the statement: ‘This Sum- by items or types and the original amount of the To rescind or cancel, you must notify the cred- mary is made pursuant to the requirements of loan. itor that the agreement is canceled. the Bankruptcy Code’; ‘‘(H) At the election of the creditor, a state- ‘‘ ‘What are your obligations if you reaffirm ‘‘(C) The ‘Amount Reaffirmed’, using that ment of the repayment schedule using one or a the debt? A reaffirmed debt remains your per- term, which shall be— combination of the following— sonal legal obligation. It is not discharged in ‘‘(i) the total amount which the debtor agrees ‘‘(i) by making the statement: ‘Your first pay- your bankruptcy. That means that if you de- to reaffirm, and ment in the amount $lll is due on lll but fault on your reaffirmed debt after your bank- ‘‘(ii) the total of any other fees or cost accrued the future payment amount may be different. ruptcy is over, your creditor may be able to take as of the date of the disclosure statement. Consult your reaffirmation or credit agreement, your property or your wages. Otherwise, your ‘‘(D) In conjunction with the disclosure of the as applicable.’, and stating the amount of the obligations will be determined by the reaffirma- ‘Amount Reaffirmed’, the statements— first payment and the due date of that payment tion agreement which may have changed the ‘‘(i) ‘The amount of debt you have agreed to in the places provided; terms of the original agreement. For example, if reaffirm’; and ‘‘(ii) by making the statement: ‘Your payment you are reaffirming an open end credit agree- ‘‘(ii) ‘Your credit agreement may obligate you schedule will be:’, and describing the repayment ment, the creditor may be permitted by that to pay additional amounts which may come due schedule with the number, amount and due agreement and/or applicable law to change the

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00054 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S399 terms of the agreement in the future under cer- and dated by the moving party, shall consist of each field office of the Federal Bureau of Inves- tain conditions. the following: tigation. ‘‘ ‘Are you required to enter into a reaffirma- ‘‘ ‘Part E: Motion for Court Approval (To be ‘‘(c) BANKRUPTCY INVESTIGATIONS.—Each tion agreement by any law? No, you are not re- completed only where debtor is not represented United States attorney designated under this quired to reaffirm a debt by any law. Only agree by an attorney.). I (we), the debtor, affirm the section shall have primary responsibility for car- to reaffirm a debt if it is in your best interest. following to be true and correct: rying out the duties of a United States attorney Be sure you can afford the payments you agree ‘‘ ‘I am not represented by an attorney in con- under section 3057. to make. nection with this reaffirmation agreement. ‘‘(d) BANKRUPTCY PROCEDURES.—The bank- ‘‘ ‘What if your creditor has a security interest ‘‘ ‘I believe this agreement is in my best inter- ruptcy courts shall establish procedures for re- or lien? Your bankruptcy discharge does not est based on the income and expenses I have dis- ferring any case which may contain a materi- eliminate any lien on your property. A ‘‘lien’’ is closed in my Statement in Support of this reaf- ally fraudulent statement in a bankruptcy often referred to as a security interest, deed of firmation agreement above, and because (pro- schedule to the individuals designated under trust, mortgage or security deed. Even if you do vide any additional relevant reasons the court this section.’’. not reaffirm and your personal liability on the should consider): (2) CLERICAL AMENDMENT.—The analysis for debt is discharged, because of the lien your ‘‘ ‘Therefore, I ask the court for an order ap- chapter 9 of title 18, United States Code, is creditor may still have the right to take the se- proving this reaffirmation agreement.’. amended by adding at the end the following: curity property if you do not pay the debt or de- ‘‘(8) The court order, which may be used to ‘‘158. Designation of United States attorneys fault on it. If the lien is on an item of personal approve a reaffirmation, shall consist of the fol- and agents of the Federal Bureau property that is exempt under your State’s law lowing: of Investigation to address abu- ‘‘ ‘Court Order: The court grants the debtor’s or that the trustee has abandoned, you may be sive reaffirmations of debt and motion and approves the reaffirmation agree- able to redeem the item rather than reaffirm the materially fraudulent statements ment described above.’. debt. To redeem, you make a single payment to in bankruptcy schedules.’’. ‘‘(j) Notwithstanding any other provision of the creditor equal to the current value of the se- this title: Subtitle B—Priority Child Support curity property, as agreed by the parties or de- ‘‘(1) A creditor may accept payments from a termined by the court.’. SEC. 211. DEFINITION OF DOMESTIC SUPPORT debtor before and after the filing of a reaffirma- OBLIGATION. ‘‘(4) The form of reaffirmation agreement re- tion agreement with the court. Section 101 of title 11, United States Code, is quired under this paragraph shall consist of the ‘‘(2) A creditor may accept payments from a amended— following: debtor under a reaffirmation agreement which (1) by striking paragraph (12A); and ‘‘ ‘Part B: Reaffirmation Agreement. I/we the creditor believes in good faith to be effective. (2) by inserting after paragraph (14) the fol- agree to reaffirm the obligations arising under ‘‘(3) The requirements of subsections (c)(2) lowing: the credit agreement described below. and (i) shall be satisfied if disclosures required ‘‘(14A) ‘domestic support obligation’ means a ‘‘ ‘Brief description of credit agreement: under those subsections are given in good faith. debt that accrues before or after the entry of an ‘‘ ‘Description of any changes to the credit ‘‘(k) Until 60 days after a reaffirmation agree- order for relief under this title, including inter- agreement made as part of this reaffirmation ment is filed with the court (or such additional est that accrues on that debt as provided under agreement: period as the court, after notice and hearing applicable nonbankruptcy law notwithstanding ‘‘ ‘Signature: Date: and for cause, orders before the expiration of any other provision of this title, that is— ‘‘ ‘Borrower: such period), it shall be presumed that the reaf- ‘‘(A) owed to or recoverable by— ‘‘ ‘Co-borrower, if also reaffirming: ‘‘(i) a spouse, former spouse, or child of the ‘‘ ‘Accepted by creditor: firmation agreement is an undue hardship on debtor or such child’s parent, legal guardian, or ‘‘ ‘Date of creditor acceptance:’. the debtor if the debtor’s monthly income less ‘‘(5)(A) The declaration shall consist of the the debtor’s monthly expenses as shown on the responsible relative; or ‘‘(ii) a governmental unit; following: debtor’s completed and signed statement in sup- ‘‘(B) in the nature of alimony, maintenance, ‘‘ ‘Part C: Certification by Debtor’s Attorney port of the reaffirmation agreement required or support (including assistance provided by a (If Any). under subsection (i)(6) of this section is less governmental unit) of such spouse, former ‘‘ ‘I hereby certify that (1) this agreement rep- than the scheduled payments on the reaffirmed spouse, or child of the debtor or such child’s resents a fully informed and voluntary agree- debt. This presumption must be reviewed by the parent, without regard to whether such debt is ment by the debtor(s); (2) this agreement does court. The presumption may be rebutted in writ- expressly so designated; not impose an undue hardship on the debtor or ing by the debtor if the statement includes an ‘‘(C) established or subject to establishment any dependent of the debtor; and (3) I have explanation which identifies additional sources before or after entry of an order for relief under fully advised the debtor of the legal effect and of funds to make the payments as agreed upon this title, by reason of applicable provisions of— consequences of this agreement and any default under the terms of the reaffirmation agreement. ‘‘(i) a separation agreement, divorce decree, or under this agreement. If the presumption is not rebutted to the satis- faction of the court, the court may disapprove property settlement agreement; ‘‘ ‘Signature of Debtor’s Attorney: Date:’. ‘‘(ii) an order of a court of record; or ‘‘(B) In the case of reaffirmations in which a the agreement. However, no agreement shall be disapproved without notice and hearing to the ‘‘(iii) a determination made in accordance presumption of undue hardship has been estab- with applicable nonbankruptcy law by a gov- lished, the certification shall state that in the debtor and creditor and such hearing must be concluded before the entry of the debtor’s dis- ernmental unit; and opinion of the attorney, the debtor is able to ‘‘(D) not assigned to a nongovernmental enti- make the payment. charge.’’. (b) LAW ENFORCEMENT.— ty, unless that obligation is assigned voluntarily ‘‘(6) The statement in support of reaffirmation by the spouse, former spouse, child, or parent, agreement, which the debtor shall sign and date (1) IN GENERAL.—Chapter 9 of title 18, United States Code, is amended by adding at the end legal guardian, or responsible relative of the prior to filing with the court, shall consist of the child for the purpose of collecting the debt.’’. following: the following: ‘‘ ‘Part D: Debtor’s Statement in Support of ‘‘§ 158. Designation of United States attorneys SEC. 212. PRIORITIES FOR CLAIMS FOR DOMESTIC SUPPORT OBLIGATIONS. Reaffirmation Agreement. and agents of the Federal Bureau of Inves- Section 507(a) of title 11, United States Code, ‘‘ ‘1. I believe this agreement will not impose tigation to address abusive reaffirmations is amended— an undue hardship on my dependents or me. I of debt and materially fraudulent state- (1) by striking paragraph (7); can afford to make the payments on the re- ments in bankruptcy schedules (2) by redesignating paragraphs (1) through affirmed debt because my monthly income (take ‘‘(a) IN GENERAL.—The Attorney General of (6) as paragraphs (2) through (7), respectively; home pay plus any other income received) is the United States shall designate the individuals (3) in paragraph (2), as redesignated, by strik- $lll, and my actual current monthly ex- described in subsection (b) to have primary re- ing ‘‘First’’ and inserting ‘‘Second’’; penses including monthly payments on post- sponsibility in carrying out enforcement activi- (4) in paragraph (3), as redesignated, by strik- bankruptcy debt and other reaffirmation agree- ties in addressing violations of section 152 or 157 ing ‘‘Second’’ and inserting ‘‘Third’’; ments total $lll, leaving $lll to make the relating to abusive reaffirmations of debt. In ad- (5) in paragraph (4), as redesignated, by strik- required payments on this reaffirmed debt. I un- dition to addressing the violations referred to in ing ‘‘Third’’ and inserting ‘‘Fourth’’; derstand that if my income less my monthly ex- the preceding sentence, the individuals de- (6) in paragraph (5), as redesignated, by strik- penses does not leave enough to make the pay- scribed under subsection (b) shall address viola- ing ‘‘Fourth’’ and inserting ‘‘Fifth’’; ments, this reaffirmation agreement is presumed tions of section 152 or 157 relating to materially (7) in paragraph (6), as redesignated, by strik- to be an undue hardship on me and must be re- fraudulent statements in bankruptcy schedules ing ‘‘Fifth’’ and inserting ‘‘Sixth’’; viewed by the court. However, this presumption that are intentionally false or intentionally mis- (8) in paragraph (7), as redesignated, by strik- may be overcome if I explain to the satisfaction leading. ing ‘‘Sixth’’ and inserting ‘‘Seventh’’; and of the court how I can afford to make the pay- ‘‘(b) UNITED STATES DISTRICT ATTORNEYS AND (9) by inserting before paragraph (2), as redes- ments here: lll. AGENTS OF THE FEDERAL BUREAU OF INVESTIGA- ignated, the following: ‘‘ ‘2. I received a copy of the Reaffirmation TION—The individuals referred to in subsection ‘‘(1) First: Disclosure Statement in Part A and a completed (a) are— ‘‘(A) Allowed unsecured claims for domestic and signed reaffirmation agreement.’. ‘‘(1) a United States attorney for each judicial support obligations that, as of the date of the ‘‘(7) The motion, which may be used if ap- district of the United States; and filing of the petition, are owed to or recoverable proval of the agreement by the court is required ‘‘(2) an agent of the Federal Bureau of Inves- by a spouse, former spouse, or child of the debt- in order for it to be effective and shall be signed tigation (within the meaning of section 3107) for or, or the parent, legal guardian, or responsible

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00055 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S400 CONGRESSIONAL RECORD — SENATE February 7, 2000 relative of such child, without regard to wheth- a debtor who is required by a judicial or admin- ‘‘(B) the collection of a domestic support obli- er the claim is filed by such person or is filed by istrative order to pay a domestic support obliga- gation from property that is not property of the a governmental unit on behalf of that person, tion, after such debtor certifies that all amounts estate; on the condition that funds received under this payable under such order or statute that are ‘‘(C) with respect to the withholding of income paragraph by a governmental unit under this due on or before the date of the certification (in- that is property of the estate or property of the title after the date of filing of the petition shall cluding amounts due before the petition was debtor for payment of a domestic support obliga- be applied and distributed in accordance with filed, but only to the extent provided for in the tion pursuant to a judicial or administrative applicable nonbankruptcy law. plan) have been paid’’ after ‘‘completion by the order; ‘‘(B) Subject to claims under subparagraph debtor of all payments under the plan’’; ‘‘(D) the withholding, suspension, or restric- (A), allowed unsecured claims for domestic sup- (7) in section 1307(c)— tion of drivers’ licenses, professional and occu- port obligations that, as of the date the petition (A) in paragraph (9), by striking ‘‘or’’ at the pational licenses, and recreational licenses was filed are assigned by a spouse, former end; under State law, as specified in section spouse, child of the debtor, or such child’s par- (B) in paragraph (10), by striking the period 466(a)(16) of the Social Security Act (42 U.S.C. ent, legal guardian, or responsible relative to a at the end and inserting ‘‘; or’’; and 666(a)(16)); governmental unit (unless such obligation is as- (C) by adding at the end the following: ‘‘(E) the reporting of overdue support owed by signed voluntarily by the spouse, former spouse, ‘‘(11) failure of the debtor to pay any domestic a parent to any consumer reporting agency as child, parent, legal guardian, or responsible rel- support obligation that first becomes payable specified in section 466(a)(7) of the Social Secu- ative of the child for the purpose of collecting after the date on which the petition is filed.’’; rity Act (42 U.S.C. 666(a)(7)); the debt) or are owed directly to or recoverable (8) in section 1322(a)— ‘‘(F) the interception of tax refunds, as speci- by a government unit under applicable non- (A) in paragraph (2), by striking ‘‘and’’ at the fied in sections 464 and 466(a)(3) of the Social bankruptcy law, on the condition that funds re- end; Security Act (42 U.S.C. 664 and 666(a)(3)) or ceived under this paragraph by a governmental (B) in paragraph (3), by striking the period at under an analogous State law; or unit under this title after the date of filing of the end and inserting ‘‘; and’’; and ‘‘(G) the enforcement of medical obligations as the petition be applied and distributed in ac- (C) by adding in the end the following: specified under title IV of the Social Security cordance with applicable nonbankruptcy law.’’. ‘‘(4) notwithstanding any other provision of Act (42 U.S.C. 601 et seq.).’’; SEC. 213. REQUIREMENTS TO OBTAIN CONFIRMA- this section, a plan may provide for less than SEC. 215. NONDISCHARGEABILITY OF CERTAIN TION AND DISCHARGE IN CASES IN- full payment of all amounts owed for a claim DEBTS FOR ALIMONY, MAINTE- VOLVING DOMESTIC SUPPORT OBLI- entitled to priority under section 507(a)(1)(B) NANCE, AND SUPPORT. GATIONS. only if the plan provides that all of the debtor’s Section 523 of title 11, United States Code, is Title 11, United States Code, is amended— projected disposable income for a 5-year period amended— (1) in section 1129(a), by adding at the end the beginning on the date that the first payment is (1) in subsection (a)— following: due under the plan will be applied to make pay- (A) by striking paragraph (5) and inserting ‘‘(14) If the debtor is required by a judicial or ments under the plan.’’; the following: administrative order or statute to pay a domestic (9) in section 1322(b)— ‘‘(5) for a domestic support obligation;’’; support obligation, the debtor has paid all (A) in paragraph (9), by striking ‘‘; and’’ and (B) in paragraph (15)— amounts payable under such order or statute for inserting a semicolon; (i) by inserting ‘‘to a spouse, former spouse, or such obligation that first become payable after (B) by redesignating paragraph (10) as para- child of the debtor and’’ before ‘‘not of the the date on which the petition is filed.’’; graph (11); and kind’’; (2) in section 1208(c)— (C) inserting after paragraph (9) the fol- (ii) by inserting ‘‘or’’ after ‘‘court of record’’; (A) in paragraph (8), by striking ‘‘or’’ at the lowing: and end; ‘‘(10) provide for the payment of interest ac- (iii) by striking ‘‘unless—’’ and all that fol- (B) in paragraph (9), by striking the period at cruing after the date of the filing of the petition lows through the end of the paragraph and in- the end and inserting ‘‘; and’’; and on unsecured claims that are nondischargeable serting a semicolon; and (C) by adding at the end the following: under section 1328(a), except that such interest (C) by striking paragraph (18); and ‘‘(10) failure of the debtor to pay any domestic may be paid only to the extent that the debtor (2) in subsection (c), by striking ‘‘(6), or (15)’’ support obligation that first becomes payable has disposable income available to pay such in- and inserting ‘‘or (6)’’. after the date on which the petition is filed.’’; terest after making provision for full payment of (3) in section 1222(a)— SEC. 216. CONTINUED LIABILITY OF PROPERTY. (A) in paragraph (2), by striking ‘‘and’’ at the all allowed claims; and’’; Section 522 of title 11, United States Code, is (10) in section 1325(a)— end; amended— (B) in paragraph (3), by striking the period at (A) in paragraph (5), by striking ‘‘and’’ at the (1) in subsection (c), by striking paragraph (1) the end and inserting ‘‘; and’’; and end; and inserting the following: (C) by adding at the end the following: (B) in paragraph (6), by striking the period at ‘‘(1) a debt of a kind specified in paragraph ‘‘(4) notwithstanding any other provision of the end and inserting ‘‘; and’’; and (1) or (4) of section 523(a) (in which case, not- this section, a plan may provide for less than (C) by adding at the end the following: withstanding any provision of applicable non- full payment of all amounts owed for a claim ‘‘(7) if the debtor is required by a judicial or bankruptcy law to the contrary, such property entitled to priority under section 507(a)(1)(B) administrative order or statute to pay a domestic shall be liable for a debt of a kind specified in only if the plan provides that all of the debtor’s support obligation, the debtor has paid amounts section 523(a)(4));’’; and projected disposable income for a 5-year period, payable after the date on which the petition is (2) in subsection (f)(1)(A), by striking the dash beginning on the date that the first payment is filed.’’; and and all that follows through the end of the sub- due under the plan, will be applied to make (11) in section 1328(a), in the matter preceding paragraph and inserting ‘‘of a kind that is spec- payments under the plan.’’; paragraph (1), by inserting ‘‘, and in the case of ified in section 523(a)(4); or’’. (4) in section 1222(b)— a debtor who is required by a judicial or admin- istrative order to pay a domestic support obliga- SEC. 217. PROTECTION OF DOMESTIC SUPPORT (A) by redesignating paragraph (10) as para- CLAIMS AGAINST PREFERENTIAL graph (11); and tion, after such debtor certifies that all amounts TRANSFER MOTIONS. (B) by inserting after paragraph (9) the fol- payable under such order or statute that are Section 547(c)(7) of title 11, United States lowing: due on or before the date of the certification (in- Code, is amended to read as follows: ‘‘(10) provide for the payment of interest ac- cluding amounts due before the petition was ‘‘(7) to the extent such transfer was a bona cruing after the date of the filing of the petition filed, but only to the extent provided for in the fide payment of a debt for a domestic support on unsecured claims that are nondischargeable plan) have been paid’’ after ‘‘completion by the obligation; or’’. debtor of all payments under the plan’’. under section 1328(a), except that such interest SEC. 218. DISPOSABLE INCOME DEFINED. may be paid only to the extent that the debtor SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN (a) CONFIRMATION OF PLAN UNDER CHAPTER DOMESTIC SUPPORT OBLIGATION has disposable income available to pay such in- 12.—Section 1225(b)(2)(A) of title 11, United terest after making provision for full payment of PROCEEDINGS. Section 362(b) of title 11, United States Code, States Code, is amended by inserting ‘‘or for a all allowed claims;’’; domestic support obligation that first becomes (5) in section 1225(a)— is amended by striking paragraph (2) and insert- payable after the date on which the petition is (A) in paragraph (5), by striking ‘‘and’’ at the ing the following: filed’’ after ‘‘dependent of the debtor’’. end; ‘‘(2) under subsection (a)— (B) in paragraph (6), by striking the period at ‘‘(A) of the commencement or continuation of (b) CONFIRMATION OF PLAN UNDER CHAPTER the end and inserting ‘‘; and’’; and a civil action or proceeding— 13.—Section 1325(b)(2)(A) of title 11, United (C) by adding at the end the following: ‘‘(i) for the establishment of paternity; States Code, is amended by inserting ‘‘or for a ‘‘(7) if the debtor is required by a judicial or ‘‘(ii) for the establishment or modification of domestic support obligation that first becomes administrative order or statute to pay a domestic an order for domestic support obligations; payable after the date on which the petition is support obligation, the debtor has paid all ‘‘(iii) concerning child custody or visitation; filed’’ after ‘‘dependent of the debtor’’. amounts payable under such order for such obli- ‘‘(iv) for the dissolution of a marriage except SEC. 219. COLLECTION OF CHILD SUPPORT. gation that first become payable after the date to the extent that such a proceeding seeks to de- (a) DUTIES OF TRUSTEE UNDER CHAPTER 7.— on which the petition is filed.’’; termine the division of property which is prop- Section 704 of title 11, United States Code, as (6) in section 1228(a), in the matter preceding erty of the estate; or amended by section 102(b) of this Act, is amend- paragraph (1), by inserting ‘‘, and in the case of ‘‘(v) regarding domestic violence; ed—

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00056 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S401 (1) in subsection (a)— ‘‘(iii) at such time as the debtor is granted a (C) by adding at the end the following: (A) in paragraph (8), by striking ‘‘and’’ at the discharge under section 1141, notify the holder ‘‘(6) if, with respect to an individual debtor, end; of the claim and the State child support agency there is a claim for a domestic support obliga- (B) in paragraph (9), by striking the period of the State in which that holder resides of— tion, provide the applicable notification speci- and inserting ‘‘; and’’; and ‘‘(I) the granting of the discharge; fied in subsection (d); and (C) by adding at the end the following: ‘‘(II) the last recent known address of the ‘‘(7) provide information relating to the ad- ‘‘(10) if, with respect to an individual debtor, debtor; ministration of cases that is practical to any there is a claim for a domestic support obliga- ‘‘(III) the last recent known name and ad- not-for-profit entity which shall provide infor- tion, provide the applicable notification speci- dress of the debtor’s employer; and mation to parties in interest in a timely and con- fied in subsection (c).’’; and ‘‘(IV) with respect to the debtor’s case, the venient manner, including telephonic and Inter- (2) by adding at the end the following: name of each creditor that holds a claim that— net access, at no cost or a nominal cost. ‘‘(c)(1) In any case described in subsection ‘‘(aa) is not discharged under paragraph (2), An entity described in paragraph (7) shall pro- (a)(10), the trustee shall— (3), or (14) of section 523(a); or vide parties in interest with reasonable informa- ‘‘(A)(i) notify in writing the holder of the ‘‘(bb) was reaffirmed by the debtor under sec- tion about each case on behalf of the trustee of claim of the right of that holder to use the serv- tion 524(c). that case, including the status of the debtor’s ices of a State child support enforcement agency ‘‘(2)(A) A holder of a claim or a State child payments to the plan, the unpaid balance pay- established under sections 464 and 466 of the So- support agency may request from a creditor de- able to each creditor treated by the plan, and cial Security Act (42 U.S.C. 664 and 666, respec- scribed in paragraph (1)(B)(iii)(IV) the last the amount and date of payments made under tively) for the State in which the holder resides known address of the debtor. the plan. The trustee shall have no duty to pro- for assistance in collecting child support during ‘‘(B) Notwithstanding any other provision of vide information under paragraph (7) if no such and after the bankruptcy procedures; law, a creditor that makes a disclosure of a last entity has been established.’’; and ‘‘(ii) include in the notice under this para- known address of a debtor in connection with a (2) by adding at the end the following: graph the address and telephone number of the request made under subparagraph (A) shall not ‘‘(d)(1) In any case described in subsection child support enforcement agency; and be liable to the debtor or any other person by (b)(6), the trustee shall— ‘‘(iii) include in the notice an explanation of reason of making that disclosure.’’. the rights of the holder of the claim to payment (c) DUTIES OF TRUSTEE UNDER CHAPTER 12.— ‘‘(A)(i) notify in writing the holder of the of the claim under this chapter; and Section 1202 of title 11, United States Code, is claim of the right of that holder to use the serv- ‘‘(B)(i) notify in writing the State child sup- amended— ices of a State child support enforcement agency port agency of the State in which the holder of (1) in subsection (b)— established under sections 464 and 466 of the So- the claim resides of the claim; (A) in paragraph (4), by striking ‘‘and’’ at the cial Security Act (42 U.S.C. 664 and 666, respec- ‘‘(ii) include in the notice under this para- end; tively) for the State in which the holder resides; graph the name, address, and telephone number (B) in paragraph (5), by striking the period and of the holder of the claim; and and inserting ‘‘; and’’; and ‘‘(ii) include in the notice under this para- ‘‘(iii) at such time as the debtor is granted a (C) by adding at the end the following: graph the address and telephone number of the discharge under section 727, notify the holder of ‘‘(6) if, with respect to an individual debtor, child support enforcement agency; and that claim and the State child support agency of there is a claim for a domestic support obliga- ‘‘(B)(i) notify in writing the State child sup- the State in which that holder resides of— tion, provide the applicable notification speci- port agency of the State in which the holder of ‘‘(I) the granting of the discharge; fied in subsection (c).’’; and the claim resides of the claim; ‘‘(II) the last recent known address of the (2) by adding at the end the following: ‘‘(ii) include in the notice under this para- debtor; ‘‘(c)(1) In any case described in subsection graph the name, address, and telephone number ‘‘(III) the last recent known name and ad- (b)(6), the trustee shall— of the holder of the claim; and dress of the debtor’s employer; and ‘‘(A)(i) notify in writing the holder of the ‘‘(iii) at such time as the debtor is granted a ‘‘(IV) with respect to the debtor’s case, the claim of the right of that holder to use the serv- discharge under section 1328, notify the holder name of each creditor that holds a claim that— ices of a State child support enforcement agency of the claim and the State child support agency ‘‘(aa) is not discharged under paragraph (2), established under sections 464 and 466 of the So- of the State in which that holder resides of— (4), or (14A) of section 523(a); or cial Security Act (42 U.S.C. 664 and 666) for the ‘‘(I) the granting of the discharge; ‘‘(bb) was reaffirmed by the debtor under sec- State in which the holder resides; and ‘‘(II) the last recent known address of the tion 524(c). ‘‘(ii) include in the notice under this para- debtor; ‘‘(2)(A) A holder of a claim or a State child graph the address and telephone number of the ‘‘(III) the last recent known name and ad- support agency may request from a creditor de- child support enforcement agency; and dress of the debtor’s employer; and scribed in paragraph (1)(B)(iii)(IV) the last ‘‘(B)(i) notify, in writing, the State child sup- ‘‘(IV) with respect to the debtor’s case, the known address of the debtor. port agency (of the State in which the holder of name of each creditor that holds a claim that— ‘‘(B) Notwithstanding any other provision of the claim resides) of the claim; ‘‘(aa) is not discharged under paragraph (2), law, a creditor that makes a disclosure of a last ‘‘(ii) include in the notice under this para- (3), or (14) of section 523(a); or known address of a debtor in connection with a graph the name, address, and telephone number ‘‘(bb) was reaffirmed by the debtor under sec- request made under subparagraph (A) shall not of the holder of the claim; and tion 524(c). be liable to the debtor or any other person by ‘‘(iii) at such time as the debtor is granted a ‘‘(2)(A) A holder of a claim or a State child reason of making that disclosure.’’. discharge under section 1228, notify the holder support agency may request from a creditor de- (b) DUTIES OF TRUSTEE UNDER CHAPTER 11.— of the claim and the State child support agency scribed in paragraph (1)(B)(iii)(IV) the last Section 1106 of title 11, United States Code, is of the State in which that holder resides of— known address of the debtor. amended— ‘‘(I) the granting of the discharge; ‘‘(B) Notwithstanding any other provision of (1) in subsection (a)— ‘‘(II) the last recent known address of the law, a creditor that makes a disclosure of a last (A) in paragraph (6), by striking ‘‘and’’ at the debtor; known address of a debtor in connection with a end; ‘‘(III) the last recent known name and ad- request made under subparagraph (A) shall not (B) in paragraph (7), by striking the period dress of the debtor’s employer; and and inserting ‘‘; and’’; and ‘‘(IV) with respect to the debtor’s case, the be liable to the debtor or any other person by (C) by adding at the end the following: name of each creditor that holds a claim that— reason of making that disclosure.’’. ‘‘(8) if, with respect to an individual debtor, ‘‘(aa) is not discharged under paragraph (2), SEC. 220. NONDISCHARGEABILITY OF CERTAIN there is a claim for a domestic support obliga- (3), or (14) of section 523(a); or EDUCATIONAL BENEFITS AND tion, provide the applicable notification speci- ‘‘(bb) was reaffirmed by the debtor under sec- LOANS. fied in subsection (c).’’; and tion 524(c). Section 523(a) of title 11, United States Code, (2) by adding at the end the following: ‘‘(2)(A) A holder of a claim or a State child is amended by striking paragraph (8) and insert- ‘‘(c)(1) In any case described in subsection support agency may request from a creditor de- ing the following: (a)(7), the trustee shall— scribed in paragraph (1)(B)(iii)(IV) the last ‘‘(8) unless excepting such debt from discharge ‘‘(A)(i) notify in writing the holder of the known address of the debtor. under this paragraph would impose an undue claim of the right of that holder to use the serv- ‘‘(B) Notwithstanding any other provision of hardship on the debtor and the debtor’s depend- ices of a State child support enforcement agency law, a creditor that makes a disclosure of a last ents, for— established under sections 464 and 466 of the So- known address of a debtor in connection with a ‘‘(A)(i) an educational benefit overpayment or cial Security Act (42 U.S.C. 664 and 666) for the request made under subparagraph (A) shall not loan made, insured, or guaranteed by a govern- State in which the holder resides; and be liable to the debtor or any other person by mental unit, or made under any program funded ‘‘(ii) include in the notice under this para- reason of making that disclosure.’’. in whole or in part by a governmental unit or graph the address and telephone number of the (d) DUTIES OF TRUSTEE UNDER CHAPTER 13.— nonprofit institution; or child support enforcement agency; and Section 1302 of title 11, United States Code, is ‘‘(ii) an obligation to repay funds received as ‘‘(B)(i) notify, in writing, the State child sup- amended— an educational benefit, scholarship, or stipend; port agency (of the State in which the holder of (1) in subsection (b)— or the claim resides) of the claim; (A) in paragraph (4), by striking ‘‘and’’ at the ‘‘(B) any other educational loan that is a ‘‘(ii) include in the notice under this para- end; qualified education loan, as that term is defined graph the name, address, and telephone number (B) in paragraph (5), by striking the period in section 221(e)(1) of the Internal Revenue Code of the holder of the claim; and and inserting ‘‘; and’’; and of 1986, incurred by an individual debtor;’’.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00057 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S402 CONGRESSIONAL RECORD — SENATE February 7, 2000 Subtitle C—Other Consumer Protections ‘‘(vii) concerning bankruptcy procedures and (C) by inserting after paragraph (2) the fol- SEC. 221. AMENDMENTS TO DISCOURAGE ABU- rights.’’; lowing: SIVE BANKRUPTCY FILINGS. (6) in subsection (f)— ‘‘(3) The court, as part of its contempt power, Section 110 of title 11, United States Code, is (A) by striking ‘‘(f)(1)’’ and inserting ‘‘(f)’’; may enjoin a bankruptcy petition preparer that amended— and has failed to comply with a previous order (1) in subsection (a)(1), by inserting ‘‘, under (B) by striking paragraph (2); issued under this section. The injunction under the direct supervision of an attorney,’’ after (7) in subsection (g)— this paragraph may be issued upon motion of ‘‘who’’; (A) by striking ‘‘(g)(1)’’ and inserting ‘‘(g)’’; the court, the trustee, or the United States trust- (2) in subsection (b)— and ee.’’; and (A) in paragraph (1), by adding at the end the (B) by striking paragraph (2); (11) by adding at the end the following: following: ‘‘If a bankruptcy petition preparer is (8) in subsection (h)— ‘‘(l)(1) A bankruptcy petition preparer who (A) by redesignating paragraphs (1) through not an individual, then an officer, principal, re- fails to comply with any provision of subsection (4) as paragraphs (2) through (5), respectively; sponsible person, or partner of the preparer (b), (c), (d), (e), (f), (g), or (h) may be fined not (B) by inserting before paragraph (2), as so re- shall be required to— more than $500 for each such failure. designated, the following: ‘‘(A) sign the document for filing; and ‘‘(h)(1) The Supreme Court may promulgate ‘‘(2) The court shall triple the amount of a ‘‘(B) print on the document the name and ad- rules under section 2075 of title 28, or the Judi- fine assessed under paragraph (1) in any case in dress of that officer, principal, responsible per- cial Conference of the United States may pre- which the court finds that a bankruptcy peti- son or partner.’’; scribe guidelines, for setting a maximum allow- tion preparer— (B) by striking paragraph (2) and inserting able fee chargeable by a bankruptcy petition ‘‘(A) advised the debtor to exclude assets or the following: income that should have been included on appli- ‘‘(2)(A) Before preparing any document for fil- preparer. A bankruptcy petition preparer shall notify the debtor of any such maximum amount cable schedules; ing or accepting any fees from a debtor, the ‘‘(B) advised the debtor to use a false Social before preparing any document for filing for a bankruptcy petition preparer shall provide to Security account number; the debtor a written notice to debtors concerning debtor or accepting any fee from the debtor.’’; (C) in paragraph (2), as redesignated by sub- ‘‘(C) failed to inform the debtor that the debt- bankruptcy petition preparers, which shall be paragraph (A) of this paragraph— or was filing for relief under this title; or on an official form issued by the Judicial Con- (i) by striking ‘‘Within 10 days after the date ‘‘(D) prepared a document for filing in a man- ference of the United States. of filing a petition, a bankruptcy petition pre- ner that failed to disclose the identity of the ‘‘(B) The notice under subparagraph (A)— parer shall file a’’ and inserting ‘‘A’’; preparer. ‘‘(i) shall inform the debtor in simple language (ii) by inserting ‘‘by the bankruptcy petition ‘‘(3) The debtor, the trustee, a creditor, or the that a bankruptcy petition preparer is not an preparer shall be filed together with the peti- United States trustee may file a motion for an attorney and may not practice law or give legal tion,’’ after ‘‘perjury’’; and order imposing a fine on the bankruptcy peti- advice; (iii) by adding at the end the following: ‘‘If tion preparer for each violation of this section. ‘‘(ii) may contain a description of examples of rules or guidelines setting a maximum fee for ‘‘(4) All fines imposed under this section shall legal advice that a bankruptcy petition preparer services have been promulgated or prescribed be paid to the United States trustee, who shall is not authorized to give, in addition to any ad- under paragraph (1), the declaration under this deposit an amount equal to such fines in a spe- vice that the preparer may not give by reason of paragraph shall include a certification that the cial account of the United States Trustee System subsection (e)(2); and bankruptcy petition preparer complied with the Fund referred to in section 586(e)(2) of title 28. ‘‘(iii) shall— Amounts deposited under this paragraph shall ‘‘(I) be signed by— notification requirement under paragraph (1).’’; (D) by striking paragraph (3), as redesignated be available to fund the enforcement of this sec- ‘‘(aa) the debtor; and tion on a national basis.’’. ‘‘(bb) the bankruptcy petition preparer, under by subparagraph (A) of this paragraph, and in- penalty of perjury; and serting the following: SEC. 222. SENSE OF CONGRESS. ‘‘(II) be filed with any document for filing.’’; ‘‘(3)(A) The court shall disallow and order the It is the sense of Congress that States should (3) in subsection (c)— immediate turnover to the bankruptcy trustee develop curricula relating to the subject of per- (A) in paragraph (2)— any fee referred to in paragraph (2) found to be sonal finance, designed for use in elementary (i) by striking ‘‘(2) For purposes’’ and insert- in excess of the value of any services— and secondary schools. ing ‘‘(2)(A) Subject to subparagraph (B), for ‘‘(i) rendered by the preparer during the 12- SEC. 223. ADDITIONAL AMENDMENTS TO TITLE 11, purposes’’; and month period immediately preceding the date of UNITED STATES CODE. (ii) by adding at the end the following: filing of the petition; or (a) IN GENERAL.—Section 507(a) of title 11, ‘‘(B) If a bankruptcy petition preparer is not ‘‘(ii) found to be in violation of any rule or United States Code, as amended by section 212 an individual, the identifying number of the guideline promulgated or prescribed under para- of this Act, is amended by inserting after para- bankruptcy petition preparer shall be the Social graph (1). graph (9) the following: Security account number of the officer, prin- ‘‘(B) All fees charged by a bankruptcy peti- ‘‘(10) Tenth, allowed claims for death or per- cipal, responsible person, or partner of the pre- tion preparer may be forfeited in any case in sonal injuries resulting from the operation of a parer.’’; and which the bankruptcy petition preparer fails to motor vehicle or vessel if such operation was un- (B) by striking paragraph (3); comply with this subsection or subsection (b), lawful because the debtor was intoxicated from (4) in subsection (d)— (c), (d), (e), (f), or (g). using alcohol, a drug, or another substance.’’. ‘‘(C) An individual may exempt any funds re- (A) by striking ‘‘(d)(1)’’ and inserting ‘‘(d)’’; (b) VESSELS.—Section 523(a)(8) of title 11, and covered under this paragraph under section United States Code, is amended by inserting ‘‘or (B) by striking paragraph (2); 522(b).’’; and vessel’’ after ‘‘vehicle’’. (5) in subsection (e)— (E) in paragraph (4), as redesignated by sub- paragraph (A) of this paragraph, by striking SEC. 224. PROTECTION OF RETIREMENT SAVINGS (A) by striking paragraph (2); and IN BANKRUPTCY. (B) by adding at the end the following: ‘‘or the United States trustee’’ and inserting (a) IN GENERAL.—Section 522 of title 11, ‘‘(2)(A) A bankruptcy petition preparer may ‘‘the United States trustee, or the court, on the United States Code, as amended by section 215 not offer a potential bankruptcy debtor any initiative of the court,’’; of this Act, is amended— legal advice, including any legal advice de- (9) in subsection (i)(1), by striking the matter (1) in subsection (b)— scribed in subparagraph (B). preceding subparagraph (A) and inserting the (A) in paragraph (2)— ‘‘(B) The legal advice referred to in subpara- following: (i) by striking ‘‘(2)(A) any property’’ and in- graph (A) includes advising the debtor— ‘‘(i) If a bankruptcy petition preparer violates ‘‘(i) whether— this section or commits any act that the court serting: ‘‘(I) to file a petition under this title; or finds to be fraudulent, unfair, or deceptive, on ‘‘(3) Property listed in this paragraph is— ‘‘(II) commencing a case under chapter 7, 11, motion of the debtor, trustee, or United States ‘‘(A) any property’’; 12, or 13 is appropriate; trustee, and after the court holds a hearing with (ii) in subparagraph (A), by striking ‘‘and’’ at ‘‘(ii) whether the debtor’s debts will be elimi- respect to that violation or act, the court shall the end; nated or discharged in a case under this title; order the bankruptcy petition preparer to pay to (iii) in subparagraph (B), by striking the pe- ‘‘(iii) whether the debtor will be able to retain the debtor—’’; riod at the end and inserting ‘‘; and’’; and the debtor’s home, car, or other property after (10) in subsection (j)— (iv) by adding at the end the following: commencing a case under this title; (A) in paragraph (2)— ‘‘(C) retirement funds to the extent that those ‘‘(iv) concerning— (i) in subparagraph (A)(i)(I), by striking ‘‘a funds are in a fund or account that is exempt ‘‘(I) the tax consequences of a case brought violation of which subjects a person to criminal from taxation under section 401, 403, 408, 408A, under this title; or penalty’’; 414, 457, or 501(a) of the Internal Revenue Code ‘‘(II) the dischargeability of tax claims; (ii) in subparagraph (B)— of 1986.’’; ‘‘(v) whether the debtor may or should prom- (I) by striking ‘‘or has not paid a penalty’’ (B) by striking paragraph (1) and inserting: ise to repay debts to a creditor or enter into a re- and inserting ‘‘has not paid a penalty’’; and ‘‘(2) Property listed in this paragraph is prop- affirmation agreement with a creditor to reaf- (II) by inserting ‘‘or failed to disgorge all fees erty that is specified under subsection (d), un- firm a debt; ordered by the court’’ after ‘‘a penalty imposed less the State law that is applicable to the debt- ‘‘(vi) concerning how to characterize the na- under this section,’’; or under paragraph (3)(A) specifically does not ture of the debtor’s interests in property or the (B) by redesignating paragraph (3) as para- so authorize.’’; debtor’s debts; or graph (4); and (C) in the matter preceding paragraph (2)—

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00058 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S403 (i) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’; ‘‘(A) to the extent that the amounts withheld ‘‘(B) with respect to the aggregate amount (ii) by striking ‘‘paragraph (2)’’ both places it and collected are used solely for payments relat- paid or contributed to such program having the appears and inserting ‘‘paragraph (3)’’; ing to a loan from a plan that satisfies the re- same designated beneficiary, only so much of (iii) by striking ‘‘paragraph (1)’’ each place it quirements of section 408(b)(1) of the Employee such amount as does not exceed the total con- appears and inserting ‘‘paragraph (2)’’; and Retirement Income Security Act of 1974 or is tributions permitted under section 529(b)(7) of (iv) by striking ‘‘Such property is—’’; and subject to section 72(p) of the Internal Revenue such Code with respect to such beneficiary, as (D) by adding at the end of the subsection the Code of 1986; or adjusted beginning on the date of the filing of following: ‘‘(B) in the case of a loan from a thrift sav- the petition by the annual increase or decrease ‘‘(4) For purposes of paragraph (3)(C) and ings plan described in subchapter III of title 5, (rounded to the nearest tenth of 1 percent) in subsection (d)(12), the following shall apply: that satisfies the requirements of section 8433(g) the education expenditure category of the Con- ‘‘(A) If the retirement funds are in a retire- of such title;’’; and sumer Price Index prepared by the Department ment fund that has received a favorable deter- (4) by adding at the end of the flush material of Labor; and mination pursuant to section 7805 of the Inter- at the end of the subsection, the following: ‘‘(C) in the case of funds paid or contributed nal Revenue Code of 1986, and that determina- ‘‘Nothing in paragraph (20) may be construed to to such program having the same designated tion is in effect as of the date of the commence- provide that any loan made under a govern- beneficiary not earlier than 720 days nor later ment of the case under section 301, 302, or 303 of mental plan under section 414(d), or a contract than 365 days before such date, only so much of this title, those funds shall be presumed to be or account under section 403(b), of the Internal such funds as does not exceed $5,000; or’’; and exempt from the estate. Revenue Code of 1986 constitutes a claim or a (2) by adding at the end the following: ‘‘(B) If the retirement funds are in a retire- debt under this title.’’. ‘‘(g) In determining whether any of the rela- ment fund that has not received a favorable de- (c) EXCEPTIONS TO DISCHARGE.—Section 523(a) tionships specified in paragraph (6)(A) or (7)(A) termination pursuant to such section 7805, those of title 11, United States Code, is amended by of subsection (b) exists, a legally adopted child funds are exempt from the estate if the debtor adding at the end the following: of an individual (and a child who is a member demonstrates that— of an individual’s household, if placed with ‘‘(i) no prior determination to the contrary ‘‘(18) owed to a pension, profit-sharing, stock such individual by an authorized placement has been made by a court or the Internal Rev- bonus, or other plan established under section agency for legal adoption by such individual), enue Service; and 401, 403, 408, 408A, 414, 457, or 501(c) of the In- ‘‘(ii)(I) the retirement fund is in substantial ternal Revenue Code of 1986, pursuant to— or a foster child of an individual (if such child compliance with the applicable requirements of ‘‘(A) a loan permitted under section 408(b)(1) has as the child’s principal place of abode the the Internal Revenue Code of 1986; or of the Employee Retirement Income Security Act home of the debtor and is a member of the debt- ‘‘(II) the retirement fund fails to be in sub- of 1974, or subject to section 72(p) of the Inter- or’s household) shall be treated as a child of stantial compliance with the applicable require- nal Revenue Code of 1986; or such individual by blood.’’. ments of the Internal Revenue Code of 1986 and ‘‘(B) a loan from the thrift savings plan de- (b) DEBTOR’S DUTIES.—Section 521 of title 11, the debtor is not materially responsible for that scribed in subchapter III of title 5, that satisfies United States Code, as amended by sections failure. the requirements of section 8433(g) of such title. 105(d), 304(c)(1), 305(2), 315(b), and 316 of this ‘‘(C) A direct transfer of retirement funds from Nothing in paragraph (19) may be construed to Act, is amended by adding at the end the fol- 1 fund or account that is exempt from taxation provide that any loan made under a govern- lowing: under section 401, 403, 408, 408A, 414, 457, or mental plan under section 414(d), or a contract ‘‘(k) In addition to meeting the requirements 501(a) of the Internal Revenue Code of 1986, or account under section 403(b), of the Internal under subsection (a), a debtor shall file with the pursuant to section 401(a)(31) of the Internal Revenue Code of 1986 constitutes a claim or a court a record of any interest that a debtor has Revenue Code of 1986, or otherwise, shall not debt under this title.’’ in an education individual retirement account cease to qualify for exemption under paragraph (d) PLAN CONTENTS.—Section 1322 of title 11, (as defined in section 530(b)(1) of the Internal (3)(C) or subsection (d)(12) by reason of that di- United States Code, is amended by adding at the Revenue Code of 1986) or under a qualified State rect transfer. end the following: tuition program (as defined in section 529(b)(1) ‘‘(D)(i) Any distribution that qualifies as an ‘‘(f) A plan may not materially alter the terms of such Code).’’. eligible rollover distribution within the meaning of a loan described in section 362(b)(20).’’. TITLE III—DISCOURAGING BANKRUPTCY of section 402(c) of the Internal Revenue Code of SEC. 225. PROTECTION OF EDUCATION SAVINGS. ABUSE 1986 or that is described in clause (ii) shall not (a) EXCLUSIONS.—Section 541 of title 11, SEC. 301. REINFORCEMENT OF THE FRESH START. cease to qualify for exemption under paragraph United States Code, as amended by section 903, Section 523(a)(17) of title 11, United States (3)(C) or subsection (d)(12) by reason of that dis- is amended— Code, is amended— tribution. (1) in subsection (b)— (1) by striking ‘‘by a court’’ and inserting ‘‘on ‘‘(ii) A distribution described in this clause is (A) by redesignating paragraph (6) as para- a prisoner by any court’’, an amount that— graph (8); and (2) by striking ‘‘section 1915(b) or (f)’’ and in- ‘‘(I) has been distributed from a fund or ac- (B) by inserting after paragraph (5) the fol- serting ‘‘subsection (b) or (f)(2) of section 1915’’, count that is exempt from taxation under sec- lowing: and tion 401, 403, 408, 408A, 414, 457, or 501(a) of the ‘‘(6) funds placed in an education individual (3) by inserting ‘‘(or a similar non-Federal Internal Revenue Code of 1986; and retirement account (as defined in section law)’’ after ‘‘title 28’’ each place it appears. ‘‘(II) to the extent allowed by law, is deposited 530(b)(1) of the Internal Revenue Code of 1986) in such a fund or account not later than 60 days SEC. 302. DISCOURAGING BAD FAITH REPEAT FIL- not later than 365 days before the date of filing INGS. after the distribution of that amount.’’; and of the petition, but— (2) in subsection (d)— Section 362(c) of title 11, United States Code, ‘‘(A) only if the designated beneficiary of such (A) in the matter preceding paragraph (1), by is amended— account was a son, daughter, stepson, step- striking ‘‘subsection (b)(1)’’ and inserting ‘‘sub- (1) in paragraph (1), by striking ‘‘and’’ at the daughter, grandchild, or step-grandchild of the section (b)(2)’’; and end; (B) by adding at the end the following: debtor for the taxable year for which funds were (2) in paragraph (2), by striking the period at ‘‘(12) Retirement funds to the extent that placed in such account; the end and inserting a semicolon; and those funds are in a fund or account that is ex- ‘‘(B) only to the extent that such funds— (3) by adding at the end the following: empt from taxation under section 401, 403, 408, ‘‘(i) are not pledged or promised to any entity ‘‘(3) if a single or joint case is filed by or 408A, 414, 457, or 501(a) of the Internal Revenue in connection with any extension of credit; and against an individual debtor under chapter 7, Code of 1986.’’. ‘‘(ii) are not excess contributions (as described 11, or 13, and if a single or joint case of the (b) AUTOMATIC STAY.—Section 362(b) of title in section 4973(e) of the Internal Revenue Code debtor was pending within the preceding 1-year 11, United States Code, as amended by section of 1986); and period but was dismissed, other than a case 214 of this Act, is amended— ‘‘(C) in the case of funds placed in all such refiled under a chapter other than chapter 7 (1) in paragraph (18), by striking ‘‘or’’ at the accounts having the same designated bene- after dismissal under section 707(b)— end; ficiary not earlier than 720 days nor later than ‘‘(A) the stay under subsection (a) with re- (2) in paragraph (19), by striking the period 365 days before such date, only so much of such spect to any action taken with respect to a debt and inserting ‘‘; or’’; funds as does not exceed $5,000; or property securing such debt or with respect to (3) by inserting after paragraph (19) the fol- ‘‘(7) funds used to purchase a tuition credit or any lease will terminate with respect to the lowing: certificate or contributed to an account in ac- debtor on the 30th day after the filing of the ‘‘(20) under subsection (a), of withholding of cordance with section 529(b)(1)(A) of the Inter- later case; income from a debtor’s wages and collection of nal Revenue Code of 1986 under a qualified ‘‘(B) upon motion by a party in interest for amounts withheld, pursuant to the debtor’s State tuition program (as defined in section continuation of the automatic stay and upon agreement authorizing that withholding and 529(b)(1) of such Code) not later than 365 days notice and a hearing, the court may extend the collection for the benefit of a pension, profit- before the date of filing of the petition, but— stay in particular cases as to any or all creditors sharing, stock bonus, or other plan established ‘‘(A) only if the designated beneficiary of the (subject to such conditions or limitations as the under section 401, 403, 408, 408A, 414, 457, or amounts paid or contributed to such tuition pro- court may then impose) after notice and a hear- 501(a) of the Internal Revenue Code of 1986 that gram was a son, daughter, stepson, step- ing completed before the expiration of the 30- is sponsored by the employer of the debtor, or an daughter, grandchild, or step-grandchild of the day period only if the party in interest dem- affiliate, successor, or predecessor of such em- debtor for the taxable year for which funds were onstrates that the filing of the later case is in ployer— paid or contributed; good faith as to the creditors to be stayed; and

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00059 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S404 CONGRESSIONAL RECORD — SENATE February 7, 2000 ‘‘(C) for purposes of subparagraph (B), a case clude that the later case will not be concluded, (1) in section 521(a), as so redesignated by sec- is presumptively filed not in good faith (but if a case under chapter 7, with a discharge, and tion 106(d) of this Act— such presumption may be rebutted by clear and if a case under chapter 11 or 13, with a con- (A) in paragraph (4), by striking ‘‘and’’ at the convincing evidence to the contrary)— firmed plan that will be fully performed; or end; ‘‘(i) as to all creditors, if— ‘‘(ii) as to any creditor that commenced an ac- (B) in paragraph (5), by striking the period at ‘‘(I) more than 1 previous case under any of tion under subsection (d) in a previous case in the end and inserting ‘‘; and’’; and chapter 7, 11, or 13 in which the individual was which the individual was a debtor if, as of the (C) by adding at the end the following: a debtor was pending within the preceding 1- date of dismissal of such case, such action was ‘‘(6) in an individual case under chapter 7, year period; still pending or had been resolved by termi- not retain possession of personal property as to ‘‘(II) a previous case under any of chapter 7, nating, conditioning, or limiting the stay as to which a creditor has an allowed claim for the 11, or 13 in which the individual was a debtor action of such creditor.’’. purchase price secured in whole or in part by an was dismissed within such 1-year period, after SEC. 303. CURBING ABUSIVE FILINGS. interest in that personal property unless, in the the debtor failed to— (a) IN GENERAL.—Section 362(d) of title 11, case of an individual debtor, the debtor within ‘‘(aa) file or amend the petition or other docu- United States Code, is amended— 45 days after the first meeting of creditors under ments as required by this title or the court with- (1) in paragraph (2), by striking ‘‘or’’ at the section 341(a)— out substantial excuse (but mere inadvertence or end; ‘‘(A) enters into an agreement with the cred- negligence shall not be a substantial excuse un- (2) in paragraph (3), by striking the period at itor under section 524(c) with respect to the less the dismissal was caused by the negligence the end and inserting ‘‘; or’’; and claim secured by such property; or of the debtor’s attorney); (3) by adding at the end the following: ‘‘(B) redeems such property from the security ‘‘(bb) provide adequate protection as ordered ‘‘(4) with respect to a stay of an act against interest under section 722.’’; and by the court; or real property under subsection (a), by a creditor (D) by adding at the end the following: ‘‘(cc) perform the terms of a plan confirmed by whose claim is secured by an interest in such ‘‘(c) For purposes of subsection (a)(6), if the the court; or real estate, if the court finds that the filing of debtor fails to so act within the 45-day period ‘‘(III) there has not been a substantial change the bankruptcy petition was part of a scheme to specified in subsection (a)(6), the personal prop- in the financial or personal affairs of the debtor delay, hinder, and defraud creditors that in- erty affected shall no longer be property of the since the dismissal of the next most previous volved either— estate, and the creditor may take whatever ac- case under chapter 7, 11, or 13 or any other rea- ‘‘(A) transfer of all or part ownership of, or tion as to such property as is permitted by appli- son to conclude that the later case will be con- other interest in, the real property without the cable nonbankruptcy law, unless the court de- cluded— consent of the secured creditor or court ap- termines on the motion of the trustee, and after ‘‘(aa) if a case under chapter 7, with a dis- proval; or notice and a hearing, that such property is of charge; or ‘‘(B) multiple bankruptcy filings affecting the consequential value or benefit to the estate.’’; ‘‘(bb) if a case under chapter 11 or 13, with a real property. and confirmed plan which will be fully performed; (2) in section 722, by inserting ‘‘in full at the If recorded in compliance with applicable State and time of redemption’’ before the period at the laws governing notices of interests or liens in ‘‘(ii) as to any creditor that commenced an ac- end. tion under subsection (d) in a previous case in real property, an order entered under this sub- section shall be binding in any other case under SEC. 305. RELIEF FROM THE AUTOMATIC STAY which the individual was a debtor if, as of the WHEN THE DEBTOR DOES NOT COM- date of dismissal of such case, that action was this title purporting to affect the real property PLETE INTENDED SURRENDER OF still pending or had been resolved by termi- filed not later than 2 years after that recording, CONSUMER DEBT COLLATERAL. nating, conditioning, or limiting the stay as to except that a debtor in a subsequent case may Title 11, United States Code, is amended— actions of such creditor; and move for relief from such order based upon (1) in section 362— ‘‘(4)(A)(i) if a single or joint case is filed by or changed circumstances or for good cause shown, (A) in subsection (c), by striking ‘‘(e), and (f)’’ against an individual debtor under this title, after notice and a hearing.’’. and inserting ‘‘(e), (f), and (h)’’; and and if 2 or more single or joint cases of the debt- (b) AUTOMATIC STAY.—Section 362(b) of title (B) by redesignating subsection (h), as amend- or were pending within the previous year but 11, United States Code, as amended by section ed by section 227 of this Act, as subsection (j) were dismissed, other than a case refiled under 224 of this Act, is amended— and by inserting after subsection (g) the fol- section 707(b), the stay under subsection (a) (1) in paragraph (19), by striking ‘‘or’’ at the lowing: shall not go into effect upon the filing of the end; ‘‘(h)(1) Subject to paragraph (2), in an indi- later case; and (2) in paragraph (20), by striking the period at vidual case under chapter 7, 11, or 13 the stay ‘‘(ii) on request of a party in interest, the the end; and provided by subsection (a) is terminated with re- court shall promptly enter an order confirming (3) by inserting after paragraph (20) the fol- spect to property of the estate securing in whole that no stay is in effect; lowing: or in part a claim, or subject to an unexpired ‘‘(B) if, within 30 days after the filing of the ‘‘(21) under subsection (a), of any act to en- lease, if the debtor fails within the applicable later case, a party in interest requests the court force any lien against or security interest in real period of time set by section 521(a)(2) to— may order the stay to take effect in the case as property following the entry of an order under ‘‘(A) file timely any statement of intention re- to any or all creditors (subject to such condi- section 362(d)(4) as to that property in any prior quired under section 521(a)(2) with respect to tions or limitations as the court may impose), bankruptcy case for a period of 2 years after that property or to indicate therein that the after notice and hearing, only if the party in in- entry of such an order, except that the debtor, debtor— terest demonstrates that the filing of the later in a subsequent case, may move the court for re- ‘‘(i) will either surrender the property or re- case is in good faith as to the creditors to be lief from such order based upon changed cir- tain the property; and stayed; cumstances or for other good cause shown, after ‘‘(ii) if retaining the property, will, as appli- ‘‘(C) a stay imposed under subparagraph (B) notice and a hearing; or cable— shall be effective on the date of entry of the ‘‘(22) under subsection (a), of any act to en- ‘‘(I) redeem the property under section 722; order allowing the stay to go into effect; and force any lien against or security interest in real ‘‘(II) reaffirm the debt the property secures ‘‘(D) for purposes of subparagraph (B), a case property— under section 524(c); or is presumptively not filed in good faith (but ‘‘(A) if the debtor is ineligible under section ‘‘(III) assume the unexpired lease under sec- such presumption may be rebutted by clear and 109(g) to be a debtor in a bankruptcy case; or tion 365(p) if the trustee does not do so; or convincing evidence to the contrary)— ‘‘(B) if the bankruptcy case was filed in viola- ‘‘(B) take timely the action specified in that ‘‘(i) as to all creditors if— tion of a bankruptcy court order in a prior statement of intention, as the statement may be ‘‘(I) 2 or more previous cases under this title bankruptcy case prohibiting the debtor from amended before expiration of the period for tak- in which the individual was a debtor were pend- being a debtor in another bankruptcy case.’’. ing action, unless the statement of intention ing within the 1-year period; (c) MODIFICATION OF A RESTRICTION RELATING specifies reaffirmation and the creditor refuses ‘‘(II) a previous case under this title in which TO WAIVERS.—Section 522(e) of title 11, United to reaffirm on the original contract terms. the individual was a debtor was dismissed with- States Code, is amended— ‘‘(2) Paragraph (1) shall not apply if the court in the time period stated in this paragraph after (1) in the first sentence, by striking ‘‘sub- determines on the motion of the trustee, and the debtor failed to file or amend the petition or section (b) of this section’’ and inserting ‘‘sub- after notice and a hearing, that such property is other documents as required by this title or the section (b), other than under paragraph (3)(C) of consequential value or benefit to the estate.’’; court without substantial excuse (but mere inad- of that subsection’’; and and vertence or negligence shall not be substantial (2) in the second sentence— (2) in section 521, as amended by section 304 of excuse unless the dismissal was caused by the (A) by inserting ‘‘(other than property de- this Act— negligence of the debtor’s attorney), failed to scribed in subsection (b)(3)(C))’’ after ‘‘prop- (A) in subsection (a)(2), as redesignated by pay adequate protection as ordered by the court, erty’’ each place it appears; and section 106(d) of this Act— or failed to perform the terms of a plan con- (B) by inserting ‘‘(other than a transfer of (i) by striking ‘‘consumer’’; firmed by the court; or property described in subsection (b)(3)(C))’’ (ii) in subparagraph (B)— ‘‘(III) there has not been a substantial change after ‘‘transfer’’ each place it appears. (I) by striking ‘‘forty-five days after the filing in the financial or personal affairs of the debtor SEC. 304. DEBTOR RETENTION OF PERSONAL of a notice of intent under this section’’ and in- since the dismissal of the next most previous PROPERTY SECURITY. serting ‘‘30 days after the first date set for the case under this title, or any other reason to con- Title 11, United States Code, is amended— meeting of creditors under section 341(a)’’; and

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00060 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S405 (II) by striking ‘‘forty-five day period’’ and (1) in subsection (b)(3)(A), by inserting ‘‘sub- assumed in the plan confirmed by the court, the inserting ‘‘30-day period’’; and ject to subsection (n),’’ before ‘‘any property’’; lease is deemed rejected as of the conclusion of (iii) in subparagraph (C), by inserting ‘‘except and the hearing on confirmation. If the lease is re- as provided in section 362(h)’’ before the semi- (2) by adding at the end the following: jected, the stay under section 362 and any stay colon; and ‘‘(n) For purposes of subsection (b)(3)(A), and under section 1301 is automatically terminated (B) by adding at the end the following: notwithstanding subsection (a), the value of an with respect to the property subject to the ‘‘(d) If the debtor fails timely to take the ac- interest in— lease.’’. tion specified in subsection (a)(6), or in para- ‘‘(1) real or personal property that the debtor (c) ADEQUATE PROTECTION OF LESSORS AND graph (1) or (2) of section 362(h), with respect to or a dependent of the debtor uses as a residence; PURCHASE MONEY SECURED CREDITORS.— property which a lessor or bailor owns and has ‘‘(2) a cooperative that owns property that the (1) CONFIRMATION OF PLAN.—Section leased, rented, or bailed to the debtor or as to debtor or a dependent of the debtor uses as a 1325(a)(5)(B) of title 11, United States Code, is which a creditor holds a security interest not residence; or amended— otherwise voidable under section 522(f), 544, 545, ‘‘(3) a burial plot for the debtor or a depend- (A) in clause (i), by striking ‘‘and’’ at the end; 547, 548, or 549, nothing in this title shall pre- ent of the debtor; vent or limit the operation of a provision in the (B) in clause (ii), by striking ‘‘or’’ at the end shall be reduced to the extent such value is at- and inserting ‘‘and’’; and underlying lease or agreement that has the ef- tributable to any portion of any property that (C) by adding at the end the following: fect of placing the debtor in default under that the debtor disposed of in the 730-day period end- lease or agreement by reason of the occurrence, ing on the date of the filing of the petition, with ‘‘(iii) if— pendency, or existence of a proceeding under the intent to hinder, delay, or defraud a creditor ‘‘(I) property to be distributed pursuant to this title or the insolvency of the debtor. Noth- and that the debtor could not exempt, or that this subsection is in the form of periodic pay- ing in this subsection shall be deemed to justify portion that the debtor could not exempt, under ments, such payments shall be in equal monthly limiting such a provision in any other cir- subsection (b) if on such date the debtor had amounts; and cumstance.’’. held the property so disposed of.’’. ‘‘(II) the holder of the claim is secured by per- SEC. 306. GIVING SECURED CREDITORS FAIR SEC. 309. PROTECTING SECURED CREDITORS IN sonal property the amount of such payments TREATMENT IN CHAPTER 13. CHAPTER 13 CASES. shall not be less than an amount sufficient to (a) IN GENERAL.—Section 1325(a)(5)(B)(i) of (a) STOPPING ABUSIVE CONVERSIONS FROM provide to the holder of such claim adequate title 11, United States Code, is amended to read CHAPTER 13.—Section 348(f)(1) of title 11, United protection during the period of the plan; or’’. as follows: States Code, is amended— (2) PAYMENTS.—Section 1326(a) of title 11, ‘‘(i) the plan provides that— (1) in subparagraph (A), by striking ‘‘and’’ at United States Code, is amended to read as fol- ‘‘(I) the holder of such claim retain the lien the end; lows: securing such claim until the earlier of— (2) in subparagraph (B)— ‘‘(a)(1) Unless the court orders otherwise, the ‘‘(aa) the payment of the underlying debt de- (A) by striking ‘‘in the converted case, with debtor shall— termined under nonbankruptcy law; or ‘‘(bb) discharge under section 1328; and allowed secured claims’’ and inserting ‘‘only in ‘‘(A) commence making the payments pro- ‘‘(II) if the case under this chapter is dis- a case converted to chapter 11 or 12 but not in posed by a plan within 30 days after the plan is missed or converted without completion of the a case converted to chapter 7, with allowed se- filed; or plan, such lien shall also be retained by such cured claims in cases under chapters 11 and 12’’; ‘‘(B) if no plan is filed then as specified in the holder to the extent recognized by applicable and proof of claim, within 30 days after the order for nonbankruptcy law; and’’. (B) by striking the period and inserting ‘‘; relief or within 15 days after the plan is filed, (b) RESTORING THE FOUNDATION FOR SECURED and’’; and whichever is earlier. CREDIT.—Section 1325(a) of title 11, United (3) by adding at the end the following: ‘‘(2) A payment made under this section shall States Code, is amended by adding at the end ‘‘(C) with respect to cases converted from be retained by the trustee until confirmation, the following flush sentence: chapter 13— denial of confirmation, or paid by the trustee as ‘‘For purposes of paragraph (5), section 506 ‘‘(i) the claim of any creditor holding security adequate protection payments in accordance shall not apply to a claim described in that as of the date of the petition shall continue to with paragraph (3). If a plan is confirmed, the paragraph if the debt that is the subject of the be secured by that security unless the full trustee shall distribute any such payment in ac- claim was incurred within the 5-year period pre- amount of such claim determined under applica- cordance with the plan as soon as is practicable. ceding the filing of the petition and the collat- ble nonbankruptcy law has been paid in full as If a plan is not confirmed, the trustee shall re- eral for that debt consists of a motor vehicle (as of the date of conversion, notwithstanding any turn any such payments not previously paid defined in section 30102 of title 49) acquired for valuation or determination of the amount of an and not yet due and owing to creditors pursu- the personal use of the debtor, or if collateral allowed secured claim made for the purposes of ant to paragraph (3) to the debtor, after deduct- for that debt consists of any other thing of the chapter 13 proceeding; and ing any unpaid claim allowed under section value, if the debt was incurred during the 6- ‘‘(ii) unless a prebankruptcy default has been 503(b). fully cured under the plan at the time of conver- month period preceding that filing.’’. ‘‘(3)(A) As soon as is practicable, and not sion, in any proceeding under this title or other- (c) DEFINITIONS.—Section 101 of title 11, later than 40 days after the filing of the case, wise, the default shall have the effect given United States Code, as amended by section 211 the trustee shall— under applicable nonbankruptcy law.’’. of this Act, is amended— ‘‘(i) pay from payments made under this sec- (1) by inserting after paragraph (13) the fol- (b) GIVING DEBTORS THE ABILITY TO KEEP tion the adequate protection payments proposed lowing: LEASED PERSONAL PROPERTY BY ASSUMPTION.— in the plan; or ‘‘(13A) ‘debtor’s principal residence’— Section 365 of title 11, United States Code, is ‘‘(A) means a residential structure, including amended by adding at the end the following: ‘‘(ii) if no plan is filed then, according to the incidental property, without regard to whether ‘‘(p)(1) If a lease of personal property is re- terms of the proof of claim. that structure is attached to real property; and jected or not timely assumed by the trustee ‘‘(B) The court may, upon notice and a hear- ‘‘(B) includes an individual condominium or under subsection (d), the leased property is no ing, modify, increase, or reduce the payments cooperative unit;’’; and longer property of the estate and the stay under required under this paragraph pending con- (2) by inserting after paragraph (27), the fol- section 362(a) is automatically terminated. firmation of a plan.’’. lowing: ‘‘(2)(A) In the case of an individual under SEC. 310. LIMITATION ON LUXURY GOODS. ‘‘(27A) ‘incidental property’ means, with re- chapter 7, the debtor may notify the creditor in Section 523(a)(2)(C) of title 11, United States spect to a debtor’s principal residence— writing that the debtor desires to assume the Code, is amended to read as follows: ‘‘(A) property commonly conveyed with a lease. Upon being so notified, the creditor may, ‘‘(C)(i) for purposes of subparagraph (A)— principal residence in the area where the real at its option, notify the debtor that it is willing estate is located; to have the lease assumed by the debtor and ‘‘(I) consumer debts owed to a single creditor ‘‘(B) all easements, rights, appurtenances, fix- may condition such assumption on cure of any and aggregating more than $250 for luxury tures, rents, royalties, mineral rights, oil or gas outstanding default on terms set by the con- goods or services incurred by an individual debt- rights or profits, water rights, escrow funds, or tract. or on or within 90 days before the order for re- insurance proceeds; and ‘‘(B) If within 30 days after notice is provided lief under this title are presumed to be non- ‘‘(C) all replacements or additions;’’. under subparagraph (A), the debtor notifies the dischargeable; and SEC. 307. EXEMPTIONS. lessor in writing that the lease is assumed, the ‘‘(II) cash advances aggregating more than Section 522(b)(3)(A) of title 11, United States liability under the lease will be assumed by the $750 that are extensions of consumer credit Code, as so designated by section 224 of this Act, debtor and not by the estate. under an open end credit plan obtained by an is amended— ‘‘(C) The stay under section 362 and the in- individual debtor on or within 70 days before (1) by striking ‘‘180’’ and inserting ‘‘730’’; and junction under section 524(a)(2) shall not be vio- the order for relief under this title, are presumed (2) by striking ‘‘, or for a longer portion of lated by notification of the debtor and negotia- to be nondischargeable; and such 180-day period than in any other place’’. tion of cure under this subsection. ‘‘(ii) for purposes of this subparagraph— SEC. 308. RESIDENCY REQUIREMENT FOR HOME- ‘‘(3) In a case under chapter 11 in which the ‘‘(I) the term ‘extension of credit under an STEAD EXEMPTION. debtor is an individual and in a case under open end credit plan’ means an extension of Section 522 of title 11, United States Code, as chapter 13, if the debtor is the lessee with re- credit under an open end credit plan, within the amended by section 307 of this Act, is amended— spect to personal property and the lease is not meaning of the

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DEBT INCURRED TO PAY NON- ‘‘(B) unless the court orders otherwise— et seq.); DISCHARGEABLE DEBTS. ‘‘(i) a schedule of assets and liabilities; (a) IN GENERAL.—Section 523(a) of title 11, ‘‘(II) the term ‘open end credit plan’ has the ‘‘(ii) a schedule of current income and current United States Code, is amended by inserting meaning given that term under section 103 of expenditures; Consumer Credit Protection Act (15 U.S.C. 1602); after paragraph (14) the following: ‘‘(iii) a statement of the debtor’s financial af- and ‘‘(14A)(A) incurred to pay a debt that is non- ‘‘(III) the term ‘luxury goods or services’ does dischargeable by reason of section 727, 1141, fairs and, if applicable, a certificate— not include goods or services reasonably nec- 1228(a), 1228(b), or 1328(b), or any other provi- ‘‘(I) of an attorney whose name is on the peti- essary for the support or maintenance of the sion of this subsection, if the debtor incurred the tion as the attorney for the debtor or any bank- debtor or a dependent of the debtor.’’. debt to pay such a nondischargeable debt with ruptcy petition preparer signing the petition SEC. 311. AUTOMATIC STAY. the intent to discharge in bankruptcy the newly under section 110(b)(1) indicating that such at- Section 362(b) of title 11, United States Code, created debt; except that torney or bankruptcy petition preparer delivered as amended by section 303(b) of this Act, is ‘‘(B) all debts incurred to pay nondischarge- to the debtor any notice required by section amended— able debts shall be presumed to be nondischarge- 342(b); or (1) in paragraph (21), by striking ‘‘or’’ at the able debts if incurred within 70 days before the ‘‘(II) if no attorney for the debtor is indicated end; filing of the petition (except that, in any case in and no bankruptcy petition preparer signed the (2) in paragraph (22), by striking the period at which there is an allowed claim under section petition, of the debtor that such notice was ob- the end and inserting a semicolon; and 502 for child support or spousal support entitled tained and read by the debtor; (3) by inserting after paragraph (22) the fol- to priority under section 507(a)(1) and that was lowing: ‘‘(iv) copies of all payment advices or other filed in a timely manner, debts that would oth- evidence of payment, if any, received by the ‘‘(23) under subsection (a)(3), of the continu- erwise be presumed to be nondischargeable debts ation of any eviction, unlawful detainer action, debtor from any employer of the debtor in the by reason of this subparagraph shall be treated period 60 days before the filing of the petition; or similar proceeding by a lessor against a debt- as dischargeable debts);’’. ‘‘(v) a statement of the amount of projected or involving residential real property in which (b) DISCHARGE UNDER CHAPTER 13.—Section the debtor resides as a tenant under a rental 1328(a) of title 11, United States Code, is amend- monthly net income, itemized to show how the agreement; ed by striking paragraphs (1) through (3) and amount is calculated; and ‘‘(24) under subsection (a)(3), of the com- inserting the following: ‘‘(vi) a statement disclosing any reasonably mencement of any eviction, unlawful detainer ‘‘(1) provided for under section 1322(b)(5); anticipated increase in income or expenditures action, or similar proceeding by a lessor against ‘‘(2) of the kind specified in paragraph (2), over the 12-month period following the date of a debtor involving residential real property in (3), (4), (7), or (8), of section 523(a); filing’’; and which the debtor resides as a tenant under a ‘‘(3) for restitution, or a criminal fine, in- (2) by adding at the end the following: rental agreement that has terminated under the cluded in a sentence on the debtor’s conviction ‘‘(e)(1) At any time, a creditor, in the case of lease agreement or applicable State law; or of a crime; or an individual under chapter 7 or 13, may file ‘‘(25) under subsection (a)(3), of eviction ac- ‘‘(4) for restitution, or damages, awarded in a with the court notice that the creditor requests tions based on endangerment to property or per- civil action against the debtor as a result of the petition, schedules, and a statement of af- son or the use of illegal drugs.’’. willful or malicious injury by the debtor that fairs filed by the debtor in the case and the SEC. 312. EXTENSION OF PERIOD BETWEEN BANK- caused personal injury to an individual or the court shall make those documents available to RUPTCY DISCHARGES. death of an individual.’’. the creditor who request those documents. Title 11, United States Code, is amended— SEC. 315. GIVING CREDITORS FAIR NOTICE IN (1) in section 727(a)(8), by striking ‘‘six’’ and CHAPTERS 7 AND 13 CASES. ‘‘(2)(A) At any time, a creditor in a case under inserting ‘‘8’’; and (a) NOTICE.—Section 342 of title 11, United chapter 13 may file with the court notice that (2) in section 1328, by inserting after sub- States Code, is amended— the creditor requests the plan filed by the debtor section (e) the following: (1) in subsection (c)— in the case. ‘‘(f) Notwithstanding subsections (a) and (b), (A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and ‘‘(B) The court shall make such plan available the court shall not grant a discharge of all debts (B) by striking ‘‘, but the failure of such no- to the creditor who request such plan— provided for by the plan or disallowed under tice to contain such information shall not inval- ‘‘(i) at a reasonable cost; and section 502 if the debtor has received a discharge idate the legal effect of such notice’’; and in any case filed under this title within 5 years (2) by adding at the end the following: ‘‘(ii) not later than 5 days after such request. before the order for relief under this chapter.’’. ‘‘(d) At any time, a creditor, in a case of an ‘‘(f) An individual debtor in a case under SEC. 313. DEFINITION OF HOUSEHOLD GOODS individual debtor under chapter 7 or 13, may file chapter 7, 11, or 13 shall file with the court at AND ANTIQUES. with the court and serve on the debtor a notice the request of any party in interest— Section 522(f) of title 11, United States Code, of the address to be used to notify the creditor ‘‘(1) at the time filed with the taxing author- is amended by adding at the end the following: in that case. Five days after receipt of such no- ity, all tax returns required under applicable ‘‘(4)(A) Subject to subparagraph (B), for pur- tice, if the court or the debtor is required to give law, including any schedules or attachments, poses of paragraph (1)(B), the term ‘household the creditor notice, such notice shall be given at with respect to the period from the commence- goods’ means— that address. ment of the case until such time as the case is ‘‘(i) clothing; ‘‘(e) An entity may file with the court a notice closed; ‘‘(ii) furniture; stating its address for notice in cases under ‘‘(iii) appliances; ‘‘(2) at the time filed with the taxing author- ‘‘(iv) 1 radio; chapters 7 and 13. After 30 days following the ity, all tax returns required under applicable ‘‘(v) 1 television; filing of such notice, any notice in any case law, including any schedules or attachments, ‘‘(vi) 1 VCR; filed under chapter 7 or 13 given by the court that were not filed with the taxing authority ‘‘(vii) linens; shall be to that address unless specific notice is when the schedules under subsection (a)(1) were ‘‘(viii) china; given under subsection (d) with respect to a par- ‘‘(ix) crockery; filed with respect to the period that is 3 years ticular case. before the order of relief; ‘‘(x) kitchenware; ‘‘(f)(1) Notice given to a creditor other than as ‘‘(3) any amendments to any of the tax re- ‘‘(xi) educational materials and educational provided in this section shall not be effective no- turns, including schedules or attachments, de- equipment primarily for the use of minor de- tice until that notice has been brought to the at- scribed in paragraph (1) or (2); and pendent children of the debtor, but only 1 per- tention of the creditor. If the creditor designates sonal computer only if used primarily for the a person or department to be responsible for re- ‘‘(4) in a case under chapter 13, a statement education or entertainment of such minor chil- ceiving notices concerning bankruptcy cases subject to the penalties of perjury by the debtor dren; of the debtor’s income and expenditures in the ‘‘(xii) medical equipment and supplies; and establishes reasonable procedures so that bankruptcy notices received by the creditor are preceding tax year and monthly income, that ‘‘(xiii) furniture exclusively for the use of shows how the amounts are calculated— minor children, or elderly or disabled depend- to be delivered to such department or person, ‘‘(A) beginning on the date that is the later of ents of the debtor; and notice shall not be considered to have been ‘‘(xiv) personal effects (including wedding brought to the attention of the creditor until re- 90 days after the close of the debtor’s tax year rings and the toys and hobby equipment of ceived by such person or department. or 1 year after the order for relief, unless a plan minor dependent children) of the debtor and the ‘‘(2) No sanction under section 362(h) or any has been confirmed; and dependents of the debtor. other sanction that a court may impose on ac- ‘‘(B) thereafter, on or before the date that is ‘‘(B) The term ‘household goods’ does not in- count of violations of the stay under section 45 days before each anniversary of the con- clude— 362(a) or failure to comply with section 542 or firmation of the plan until the case is closed. ‘‘(i) works of art (unless by or of the debtor or 543 may be imposed on any action of the cred- ‘‘(g)(1) A statement referred to in subsection the dependents of the debtor); itor unless the action takes place after the cred- (f)(4) shall disclose— ‘‘(ii) electronic entertainment equipment (ex- itor has received notice of the commencement of ‘‘(A) the amount and sources of income of the cept 1 television, 1 radio, and 1 VCR); the case effective under this section.’’. debtor; ‘‘(iii) items acquired as antiques; (b) DEBTOR’S DUTIES.—Section 521 of title 11, ‘‘(B) the identity of any person responsible ‘‘(iv) jewelry (except wedding rings); and United States Code, as amended by section 305 with the debtor for the support of any depend- ‘‘(v) a computer (except as otherwise provided of this Act, is amended— for in this section), motor vehicle (including a (1) in subsection (a), by striking paragraph (1) ent of the debtor; and tractor or lawn tractor), boat, or a motorized and inserting the following: ‘‘(C) the identity of any person who contrib- recreational device, conveyance, vehicle, ‘‘(1) file— uted, and the amount contributed, to the house- watercraft, or aircraft.’’. ‘‘(A) a list of creditors; and hold in which the debtor resides.

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‘‘(2) The tax returns, amendments, and state- plan, except that the court may extend such pe- (b) CONTENTS OF PLAN.—Section 1123(a) of ment of income and expenditures described in riod if the need for an extension is attributable title 11, United States Code, is amended— paragraph (1) shall be available to the United to circumstances for which the debtor should (1) in paragraph (6), by striking ‘‘and’’ at the States trustee, any bankruptcy administrator, not justly be held accountable.’’. end; any trustee, and any party in interest for in- SEC. 318. CHAPTER 13 PLANS TO HAVE A 5-YEAR (2) in paragraph (7), by striking the period spection and copying, subject to the require- DURATION IN CERTAIN CASES. and inserting ‘‘; and’’; and ments of subsection (h). Section 1322(d) of title 11, United States Code, (3) by adding at the end the following: ‘‘(h)(1) Not later than 30 days after the date is amended to read as follows: ‘‘(8) in a case concerning an individual, pro- of enactment of the Bankruptcy Reform Act of ‘‘(d)(1) Except as provided in paragraph (2), vide for the payment to creditors through the 2000, the Director of the Administrative Office of the plan may not provide for payments over a plan of all or such portion of earnings from per- the United States Courts shall establish proce- period that is longer than 3 years. sonal services performed by the debtor after the dures for safeguarding the confidentiality of ‘‘(2) The plan may provide for payments over commencement of the case or other future in- any tax information required to be provided a period that is longer than 3 years if— come of the debtor as is necessary for the execu- under this section. ‘‘(A) the plan is for a case that was converted tion of the plan.’’. ‘‘(2) The procedures under paragraph (1) shall to a case under this chapter from a case under (c) CONFIRMATION OF PLAN.— include restrictions on creditor access to tax in- chapter 7, or the plan is for a debtor who has (1) REQUIREMENTS RELATING TO VALUE OF formation that is required to be provided under been dismissed from chapter 7 by reason of sec- PROPERTY.—Section 1129(a) of title 11, United this section. tion 707(b), in which case the plan shall provide States Code, is amended by adding at the end ‘‘(3) Not later than 1 year after the date of en- for payments over a period of 5 years; or the following: actment of the Bankruptcy Reform Act of 2000, ‘‘(B) the plan is for a case that is not de- ‘‘(14) In a case concerning an individual in the Director of the Administrative Office of the scribed in subparagraph (A), and the court, for which the holder of an allowed unsecured claim United States Courts shall prepare and submit cause, approves a period longer than 3 years, objects to the confirmation of the plan— to Congress a report that— but not to exceed 5 years.’’. ‘‘(A) the value of the property to be distrib- ‘‘(A) assesses the effectiveness of the proce- SEC. 319. SENSE OF THE CONGRESS REGARDING uted under the plan on account of such claim is, dures under paragraph (1); and EXPANSION OF RULE 9011 OF THE as of the effective date of the plan, not less than ‘‘(B) if appropriate, includes proposed legisla- FEDERAL RULES OF BANKRUPTCY the amount of such claim; or tion to— PROCEDURE. ‘‘(B) the value of the property to be distrib- ‘‘(i) further protect the confidentiality of tax It is the sense of Congress that Rule 9011 of uted under the plan is not less than the debtor’s information; and the Federal Rules of Bankruptcy Procedure (11 projected disposable income (as that term is de- ‘‘(ii) provide penalties for the improper use by U.S.C. App.) should be modified to include a re- fined in section 1325(b)(2)) to be received during any person of the tax information required to be quirement that all documents (including sched- the 3-year period beginning on the date that the provided under this section. ules), signed and unsigned, submitted to the first payment is due under the plan, or during ‘‘(i) If requested by the United States trustee court or to a trustee by debtors who represent the term of the plan, whichever is longer.’’. or a trustee serving in the case, the debtor shall themselves and debtors who are represented by (2) REQUIREMENT RELATING TO INTERESTS IN provide— an attorney be submitted only after the debtor PROPERTY.—Section 1129(b)(2)(B)(ii) of title 11, ‘‘(1) a document that establishes the identity or the debtor’s attorney has made reasonable in- United States Code, is amended by inserting be- of the debtor, including a driver’s license, pass- quiry to verify that the information contained fore the period at the end the following: ‘‘, ex- port, or other document that contains a photo- in such documents is— cept that in a case concerning an individual, graph of the debtor; and (1) well grounded in fact; and the debtor may retain property included in the ‘‘(2) such other personal identifying informa- (2) warranted by existing law or a good-faith estate under section 1115, subject to the require- tion relating to the debtor that establishes the argument for the extension, modification, or re- ments of subsection (a)(14)’’. identity of the debtor.’’. versal of existing law. (d) EFFECT OF CONFIRMATION—Section 1141(d) SEC. 316. DISMISSAL FOR FAILURE TO TIMELY SEC. 320. PROMPT RELIEF FROM STAY IN INDI- of title 11, United States Code, is amended— FILE SCHEDULES OR PROVIDE RE- VIDUAL CASES. (1) in paragraph (2), by striking ‘‘The con- QUIRED INFORMATION. Section 362(e) of title 11, United States Code, firmation of a plan does not discharge an indi- Section 521 of title 11, United States Code, as is amended— vidual debtor’’ and inserting ‘‘A discharge amended by section 315 of this Act, is amended (1) by inserting ‘‘(1)’’ after ‘‘(e)’’; and under this chapter does not discharge a debtor’’; by adding at the end the following: (2) by adding at the end the following: and ‘‘(j)(1) Notwithstanding section 707(a), and ‘‘(2) Notwithstanding paragraph (1), in the (2) by adding at the end the following: subject to paragraph (2), if an individual debtor case of an individual filing under chapter 7, 11, ‘‘(5) In a case concerning an individual— in a voluntary case under chapter 7 or 13 fails or 13, the stay under subsection (a) shall termi- ‘‘(A) except as otherwise ordered for cause to file all of the information required under sub- nate on the date that is 60 days after a request shown, the discharge is not effective until com- section (a)(1) within 45 days after the filing of is made by a party in interest under subsection pletion of all payment under the plan; and the petition commencing the case, the case shall (d), unless— ‘‘(B) at any time after the confirmation of the be automatically dismissed effective on the 46th ‘‘(A) a final decision is rendered by the court plan and after notice and a hearing, the court day after the filing of the petition. during the 60-day period beginning on the date may grant a discharge to a debtor that has not ‘‘(2) With respect to a case described in para- of the request; or completed payments under the plan only if— graph (1), any party in interest may request the ‘‘(B) that 60-day period is extended— ‘‘(i) for each allowed unsecured claim, the court to enter an order dismissing the case. If ‘‘(i) by agreement of all parties in interest; or value as of the effective date of the plan, of ‘‘(ii) by the court for such specific period of requested, the court shall enter an order of dis- property actually distributed under the plan on time as the court finds is required for good missal not later than 5 days after such request. account of that claim is not less than the cause, as described in findings made by the ‘‘(3) Upon request of the debtor made within amount that would have been paid on such court.’’. 45 days after the filing of the petition com- claim if the estate of the debtor had been liq- mencing a case described in paragraph (1), the SEC. 321. CHAPTER 11 CASES FILED BY INDIVID- uidated under chapter 7 of this title on such UALS. court may allow the debtor an additional period date; and (a) PROPERTY OF THE ESTATE.— of not to exceed 45 days to file the information ‘‘(ii) modification of the plan under 1127 of (1) IN GENERAL.—Subchapter I of chapter 11 of required under subsection (a)(1) if the court this title is not practicable.’’. title 11, United States Code, is amended by add- finds justification for extending the period for (e) MODIFICATION OF PLAN.—Section 1127 of ing at the end the following: the filing.’’. title 11, United States Code, is amended by add- SEC. 317. ADEQUATE TIME TO PREPARE FOR ‘‘§ 1115. Property of the estate ing at the end the following: HEARING ON CONFIRMATION OF ‘‘In a case concerning an individual, property ‘‘(e) In a case concerning an individual, the THE PLAN. of the estate includes, in addition to the prop- plan may be modified at any time after con- (a) HEARING.—Section 1324 of title 11, United erty specified in section 541— firmation of the plan but before the completion States Code, is amended— ‘‘(1) all property of the kind specified in sec- of payments under the plan, whether or not the (1) by striking ‘‘After’’ and inserting the fol- tion 541 that the debtor acquires after the com- plan has been substantially consummated, upon lowing: mencement of the case but before the case is request of the debtor, the trustee, the United ‘‘(a) Except as provided in subsection (b) and closed, dismissed, or converted to a case under States trustee, or the holder of an allowed unse- after’’; and chapter 7, 12, or 13, whichever occurs first; and cured claim, to— (2) by adding at the end the following: ‘‘(2) earnings from services performed by the ‘‘(1) increase or reduce the amount of pay- ‘‘(b) The hearing on confirmation of the plan debtor after the commencement of the case but ments on claims of a particular class provided may be held not later than 45 days after the before the case is closed, dismissed, or converted for by the plan; meeting of creditors under section 341(a).’’. to a case under chapter 7, 12, or 13, whichever ‘‘(2) extend or reduce the time period for such (b) FILING OF PLAN.—Section 1321 of title 11, occurs first.’’. payments; or United States Code, is amended to read as fol- (2) CLERICAL AMENDMENT.—The table of sec- ‘‘(3) alter the amount of the distribution to a lows: tions for chapter 11 of title 11, United States creditor whose claim is provided for by the plan ‘‘§ 1321. Filing of plan Code, is amended by adding at the end of the to the extent necessary to take account of any ‘‘Not later than 90 days after the order for re- matter relating to subchapter I the following: payment of such claim made other than under lief under this chapter, the debtor shall file a ‘‘1115. Property of the estate.’’. the plan.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00063 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S408 CONGRESSIONAL RECORD — SENATE February 7, 2000 ‘‘(f)(1) Sections 1121 through 1128 of this title SEC. 325. EXCLUSIVE JURISDICTION IN MATTERS (3) by adding at the end the following: and the requirements of section 1129 of this title INVOLVING BANKRUPTCY PROFES- ‘‘(20) that results from any judgment, order, apply to any modification under subsection (a). SIONALS. consent order, or decree entered in any Federal ‘‘(2) The plan, as modified, shall become the Section 1334 of title 28, United States Code, is or State court, or contained in any settlement plan only after there has been disclosure under amended— agreement entered into by the debtor, including section 1125, as the court may direct, notice and (1) in subsection (b) by striking ‘‘Notwith- any damages, fine, penalty, citation, or attor- a hearing, and such modification is approved.’’. standing’’ and inserting ‘‘Except as provided in ney fee or cost owed by the debtor, arising subsection (e)(2), and notwithstanding’’; and SEC. 322. EXCLUDING EMPLOYEE BENEFIT PLAN from— PARTICIPANT CONTRIBUTIONS AND (2) amending subsection (e) to read as follows: ‘‘(A) an actual or potential action under sec- OTHER PROPERTY FROM THE ES- ‘‘(e) The district court in which a case under tion 248 of title 18; TATE. title 11 is commenced or is pending shall have ‘‘(B) an actual or potential action under any (a) IN GENERAL.—Section 541(b) of title 11, exclusive jurisdiction— Federal, State, or local law, the purpose of United States Code, as amended by section 903 ‘‘(1) of all the property, wherever located, of which is to protect— of this Act, is amended— the debtor as of the commencement of such case, ‘‘(i) access to a health care facility, including (1) by striking ‘‘or’’ at the end of paragraph and of property of the estate; and a facility providing reproductive health services, (5); ‘‘(2) over all claims or causes of action that as defined in section 248(e) of title 18 (referred (2) by redesignating paragraph (6) as para- involve construction of section 327 of title 11, to in this paragraph as a ‘health care facility’); graph (7); and United States Code, or rules relating to disclo- or (3) by inserting after paragraph (5) the fol- sure requirements under section 327.’’. ‘‘(ii) the provision of health services, includ- lowing: SEC. 326. UNITED STATES TRUSTEE PROGRAM ing reproductive health services (referred to in ‘‘(6) any amount— FILING FEE INCREASE. this paragraph as ‘health services’); ‘‘(A) withheld by an employer from the wages (a) ACTIONS UNDER CHAPTER 7 OR 13 OF TITLE ‘‘(C) an actual or potential action alleging the of employees for payment as contributions to— 11, UNITED STATES CODE.—Section 1930(a) of violation of any Federal, State, or local statu- ‘‘(i) an employee benefit plan subject to title I title 28, United States Code, is amended by strik- tory or common law, including chapter 96 of of the Employee Retirement Income Security Act ing paragraph (1) and inserting the following: title 18 and the Federal civil rights laws (includ- of 1974 (29 U.S.C. 1001 et seq.); or ‘‘(1) For a case commenced— ing sections 1977 through 1980 of the Revised ‘‘(ii) a health insurance plan regulated by ‘‘(A) under chapter 7 of title 11, $160; or Statutes) that results from the debtor’s actual, State law whether or not subject to such title; or ‘‘(B) under chapter 13 of title 11, $150.’’. attempted, or alleged— ‘‘(B) received by the employer from employees (b) UNITED STATES TRUSTEE SYSTEM FUND.— ‘‘(i) harassment of, intimidation of, inter- for payment as contributions to— Section 589a(b) of title 28, United States Code, is ference with, obstruction of, injury to, threat to, ‘‘(i) an employee benefit plan subject to title I amended— or violence against any person— of the Employee Retirement Income Security Act (1) by striking paragraph (1) and inserting the ‘‘(I) because that person provides or has pro- of 1974 (29 U.S.C. 1001 et seq.); or following: vided health services; ‘‘(ii) a health insurance plan regulated by ‘‘(1)(A) 40.63 percent of the fees collected ‘‘(II) because that person is or has been ob- State law whether or not subject to such title;’’. under section 1930(a)(1)(A) of this title in cases taining health services; or (b) APPLICATION OF AMENDMENT.—The commenced under chapter 7 of title 11; and ‘‘(III) to deter that person, any other person, amendment made by this section shall not apply ‘‘(B) 70.00 percent of the fees collected under or a class of persons from obtaining or providing to cases commenced under title 11, United States section 1930(a)(1)(B) of this title in cases com- health services; or Code, before the expiration of the 180-day period menced under chapter 13 of title 11;’’; ‘‘(ii) damage or destruction of property of a beginning on the date of the enactment of this (2) in paragraph (2) by striking ‘‘one-half’’ health care facility; or Act. and inserting ‘‘three-fourths’’; and ‘‘(D) an actual or alleged violation of a court (3) in paragraph (4) by striking ‘‘one-half’’ order or injunction that protects access to a SEC. 323. CLARIFICATION OF POSTPETITION and inserting ‘‘100 percent’’. WAGES AND BENEFITS. health care facility or the provision of health (c) COLLECTION AND DEPOSIT OF MISCELLA- Section 503(b)(1)(A) of title 11, United States services.’’. NEOUS BANKRUPTCY FEES.—Section 406(b) of the Code, is amended to read as follows: Judiciary Appropriations Act, 1990 (28 U.S.C. TITLE IV—GENERAL AND SMALL ‘‘(A) the actual, necessary costs and expenses 1931 note) is amended by striking ‘‘pursuant to BUSINESS BANKRUPTCY PROVISIONS of preserving the estate, including wages, sala- 28 U.S.C. section 1930(b) and 30.76 per centum of Subtitle A—General Business Bankruptcy ries, or commissions for services rendered after the fees hereafter collected under 28 U.S.C. sec- Provisions the commencement of the case, and wages and tion 1930(a)(1) and 25 percent of the fees here- benefits awarded as back pay attributable to SEC. 401. ROLLING STOCK EQUIPMENT. after collected under 28 U.S.C. section 1930(a)(3) (a) IN GENERAL.—Section 1168 of title 11, any period of time after commencement of the shall be deposited as offsetting receipts to the case as a result of the debtor’s violation of Fed- United States Code, is amended to read as fol- fund established under 28 U.S.C. section 1931’’ lows: eral or State law, without regard to when the and inserting ‘‘under section 1930(b) of title 28, original unlawful act occurred or to whether United States Code, and 31.25 percent of the fees ‘‘§ 1168. Rolling stock equipment any services were rendered;’’. collected under section 1930(a)(1)(A) of that ‘‘(a)(1) The right of a secured party with a se- SEC. 324. LIMITATION. title, 30.00 percent of the fees collected under curity interest in or of a lessor or conditional (a) EXEMPTIONS.—Section 522 of title 11, section 1930(a)(1)(B) of that title, and 25 percent vendor of equipment described in paragraph (2) United States Code, as amended by sections 224 of the fees collected under section 1930(a)(3) of to take possession of such equipment in compli- and 307 of this Act, is amended— that title shall be deposited as offsetting receipts ance with an equipment security agreement, (1) in subsection (b)(3)(A), by inserting ‘‘sub- to the fund established under section 1931 of lease, or conditional sale contract, and to en- ject to subsection (n),’’ before ‘‘any property’’; that title’’. force any of its other rights or remedies under and SEC. 327. COMPENSATION OF TRUSTEES IN CER- such security agreement, lease, or conditional (2) by adding at the end the following: TAIN CASES UNDER CHAPTER 7 OF sale contract, to sell, lease, or otherwise retain ‘‘(n)(1) Except as provided in paragraph (2), TITLE 11, UNITED STATES CODE. or dispose of such equipment, is not limited or as a result of electing under subsection (b)(3)(A) Section 326 of title 11, United States Code, is otherwise affected by any other provision of this to exempt property under State or local law, a amended by adding at the end the following: title or by any power of the court, except that debtor may not exempt any amount of interest ‘‘(e) In a case that has been converted under the right to take possession and enforce those that exceeds in the aggregate $100,000 in value section 706, or after a case has been converted or other rights and remedies shall be subject to sec- in— dismissed under section 707 or the debtor has tion 362, if— ‘‘(A) real or personal property that the debtor been denied a discharge under section 727— ‘‘(A) before the date that is 60 days after the or a dependent of the debtor uses as a residence; ‘‘(1) the court may allow reasonable com- date of commencement of a case under this ‘‘(B) a cooperative that owns property that pensation under section 330 for the trustee’s chapter, the trustee, subject to the court’s ap- the debtor or a dependent of the debtor uses as services rendered, payable after the trustee ren- proval, agrees to perform all obligations of the a residence; or ders services; and debtor under such security agreement, lease, or ‘‘(C) a burial plot for the debtor or a depend- ‘‘(2) any allowance made by a court under conditional sale contract; and ent of the debtor. paragraph (1) shall not be subject to the limita- ‘‘(B) any default, other than a default of a ‘‘(2) The limitation under paragraph (1) shall tions under subsection (a).’’. kind described in section 365(b)(2), under such not apply to an exemption claimed under sub- SEC. 328. NONDISCHARGEABILITY OF DEBTS IN- security agreement, lease, or conditional sale section (b)(3)(A) by a family farmer for the prin- CURRED THROUGH THE COMMIS- contract that— cipal residence of that farmer.’’. SION OF VIOLENCE AT CLINICS. ‘‘(i) occurs before the date of commencement (b) ADJUSTMENT OF DOLLAR AMOUNTS.—Sec- Section 523(a) of title 11, United States Code, of the case and is an event of default therewith tion 104(b) of title 11, United States Code, is as amended by section 224 of this Act, is amend- is cured before the expiration of such 60-day pe- amended— ed— riod; (1) in paragraph (1), by striking ‘‘522(d),’’ and (1) in paragraph (18), by striking ‘‘or’’ at the ‘‘(ii) occurs or becomes an event of default inserting ‘‘522 (d) or (n),’’; and end; after the date of commencement of the case and (2) in paragraph (3), by striking ‘‘522(d),’’ and (2) in paragraph (19)(B), by striking the pe- before the expiration of such 60-day period is inserting ‘‘522 (d) or (n),’’. riod and inserting ‘‘; or’’; and cured before the later of—

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00064 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S409 ‘‘(I) the date that is 30 days after the date of ‘‘(A) before the date that is 60 days after the SEC. 402. ADEQUATE PROTECTION FOR INVES- the default or event of the default; or date of the order for relief under this chapter, TORS. ‘‘(II) the expiration of such 60-day period; the trustee, subject to the approval of the court, (a) DEFINITION.—Section 101 of title 11, United and agrees to perform all obligations of the debtor States Code, as amended by section 306(c) of this ‘‘(iii) occurs on or after the expiration of such under such security agreement, lease, or condi- Act, is amended by inserting after paragraph 60-day period is cured in accordance with the tional sale contract; and (48) the following: terms of such security agreement, lease, or con- ‘‘(B) any default, other than a default of a ‘‘(48A) ‘securities self regulatory organization’ ditional sale contract, if cure is permitted under kind specified in section 365(b)(2), under such means either a securities association registered that agreement, lease, or conditional sale con- security agreement, lease, or conditional sale with the Securities and Exchange Commission tract. contract that occurs— under section 15A of the Securities Exchange ‘‘(2) The equipment described in this para- ‘‘(i) before the date of the order is cured before Act of 1934 (15 U.S.C. 78o–3) or a national secu- graph— the expiration of such 60-day period; rities exchange registered with the Securities ‘‘(A) is rolling stock equipment or accessories ‘‘(ii) after the date of the order and before the and Exchange Commission under section 6 of used on rolling stock equipment, including su- expiration of such 60-day period is cured before the Securities Exchange Act of 1934 (15 U.S.C. perstructures or racks, that is subject to a secu- the later of— 78f);’’. rity interest granted by, leased to, or condi- ‘‘(I) the date that is 30 days after the date of (b) AUTOMATIC STAY.—Section 362(b) of title tionally sold to a debtor; and the default; or 11, United States Code, as amended by section ‘‘(B) includes all records and documents relat- ‘‘(II) the expiration of such 60-day period; 311 of this Act, is amended— ing to such equipment that are required, under and (1) in paragraph (24), by striking ‘‘or’’ at the the terms of the security agreement, lease, or ‘‘(iii) on or after the expiration of such 60-day end; conditional sale contract, to be surrendered or period is cured in compliance with the terms of (2) in paragraph (25), by striking the period at returned by the debtor in connection with the such security agreement, lease, or conditional the end and inserting ‘‘; or’’; and surrender or return of such equipment. sale contract, if a cure is permitted under that ‘‘(3) Paragraph (1) applies to a secured party, (3) by inserting after paragraph (25) the fol- agreement, lease, or contract. lowing: lessor, or conditional vendor acting in its own ‘‘(3) The equipment described in this para- ‘‘(26) under subsection (a), of— behalf or acting as trustee or otherwise in behalf graph— of another party. ‘‘(A) is— ‘‘(A) the commencement or continuation of an ‘‘(b) The trustee and the secured party, lessor, ‘‘(i) an aircraft, aircraft engine, propeller, ap- investigation or action by a securities self regu- or conditional vendor whose right to take pos- pliance, or spare part (as defined in section latory organization to enforce such organiza- session is protected under subsection (a) may 40102 of title 49) that is subject to a security in- tion’s regulatory power; agree, subject to the court’s approval, to extend terest granted by, leased to, or conditionally ‘‘(B) the enforcement of an order or decision, the 60-day period specified in subsection (a)(1). sold to a debtor that, at the time such trans- other than for monetary sanctions, obtained in ‘‘(c)(1) In any case under this chapter, the action is entered into, holds an air carrier oper- an action by the securities self regulatory orga- trustee shall immediately surrender and return ating certificate issued under chapter 447 of title nization to enforce such organization’s regu- to a secured party, lessor, or conditional vendor, 49 for aircraft capable of carrying 10 or more in- latory power; or described in subsection (a)(1), equipment de- dividuals or 6,000 pounds or more of cargo; or ‘‘(C) any act taken by the securities self regu- scribed in subsection (a)(2), if at any time after ‘‘(ii) a documented vessel (as defined in sec- latory organization to delist, delete, or refuse to the date of commencement of the case under this tion 30101(1) of title 46) that is subject to a secu- permit quotation of any stock that does not meet chapter such secured party, lessor, or condi- rity interest granted by, leased to, or condi- applicable regulatory requirements.’’. tional vendor is entitled under subsection (a)(1) tionally sold to a debtor that is a water carrier SEC. 403. MEETINGS OF CREDITORS AND EQUITY to take possession of such equipment and makes that, at the time such transaction is entered SECURITY HOLDERS. a written demand for such possession of the into, holds a certificate of public convenience Section 341 of title 11, United States Code, is trustee. and necessity or permit issued by the Depart- amended by adding at the end the following: ‘‘(2) At such time as the trustee is required ment of Transportation; and ‘‘(e) Notwithstanding subsections (a) and (b), under paragraph (1) to surrender and return ‘‘(B) includes all records and documents relat- the court, on the request of a party in interest equipment described in subsection (a)(2), any ing to such equipment that are required, under and after notice and a hearing, for cause may lease of such equipment, and any security the terms of the security agreement, lease, or order that the United States trustee not convene agreement or conditional sale contract relating conditional sale contract, to be surrendered or a meeting of creditors or equity security holders to such equipment, if such security agreement or returned by the debtor in connection with the if the debtor has filed a plan as to which the conditional sale contract is an executory con- surrender or return of such equipment. debtor solicited acceptances prior to the com- tract, shall be deemed rejected. ‘‘(4) Paragraph (1) applies to a secured party, mencement of the case.’’. ‘‘(d) With respect to equipment first placed in lessor, or conditional vendor acting in its own service on or before October 22, 1994, for pur- SEC. 404. PROTECTION OF REFINANCE OF SECU- behalf or acting as trustee or otherwise in behalf RITY INTEREST. poses of this section— of another party. ‘‘(1) the term ‘lease’ includes any written Subparagraphs (A), (B), and (C) of section ‘‘(b) The trustee and the secured party, lessor, 547(e)(2) of title 11, United States Code, are each agreement with respect to which the lessor and or conditional vendor whose right to take pos- the debtor, as lessee, have expressed in the amended by striking ‘‘10’’ each place it appears session is protected under subsection (a) may and inserting ‘‘30’’. agreement or in a substantially contempora- agree, subject to the approval of the court, to SEC. 405. EXECUTORY CONTRACTS AND UNEX- neous writing that the agreement is to be treated extend the 60-day period specified in subsection as a lease for Federal income tax purposes; and PIRED LEASES. (a)(1). Section 365(d)(4) of title 11, United States ‘‘(2) the term ‘security interest’ means a pur- ‘‘(c)(1) In any case under this chapter, the Code, is amended to read as follows: chase-money equipment security interest. trustee shall immediately surrender and return ‘‘(e) With respect to equipment first placed in ‘‘(4)(A) Subject to subparagraph (B), in any to a secured party, lessor, or conditional vendor, service after October 22, 1994, for purposes of case under any chapter of this title, an unex- described in subsection (a)(1), equipment de- this section, the term ‘rolling stock equipment’ pired lease of nonresidential real property under scribed in subsection (a)(3), if at any time after includes rolling stock equipment that is substan- which the debtor is the lessee shall be deemed the date of the order for relief under this chap- tially rebuilt and accessories used on such rejected and the trustee shall immediately sur- ter such secured party, lessor, or conditional equipment.’’. render that nonresidential real property to the vendor is entitled under subsection (a)(1) to take (b) AIRCRAFT EQUIPMENT AND VESSELS.—Sec- lessor if the trustee does not assume or reject the possession of such equipment and makes a writ- tion 1110 of title 11, United States Code, is unexpired lease by the earlier of— ten demand for such possession to the trustee. amended to read as follows: ‘‘(2) At such time as the trustee is required ‘‘(i) the date that is 120 days after the date of ‘‘§ 1110. Aircraft equipment and vessels under paragraph (1) to surrender and return the order for relief; or ‘‘(a)(1) Except as provided in paragraph (2) equipment described in subsection (a)(3), any ‘‘(ii) the date of the entry of an order con- and subject to subsection (b), the right of a se- lease of such equipment, and any security firming a plan. cured party with a security interest in equip- agreement or conditional sale contract relating ‘‘(B) The court may extend the period deter- ment described in paragraph (3), or of a lessor to such equipment, if such security agreement or mined under subparagraph (A) only upon a mo- or conditional vendor of such equipment, to take conditional sale contract is an executory con- tion of the lessor.’’. possession of such equipment in compliance with tract, shall be deemed rejected. SEC. 406. CREDITORS AND EQUITY SECURITY a security agreement, lease, or conditional sale ‘‘(d) With respect to equipment first placed in HOLDERS COMMITTEES. contract, and to enforce any of its other rights service on or before October 22, 1994, for pur- (a) APPOINTMENT.—Section 1102(a)(2) of title or remedies, under such security agreement, poses of this section— 11, United States Code, is amended by inserting lease, or conditional sale contract, to sell, lease, ‘‘(1) the term ‘lease’ includes any written before the first sentence the following: ‘‘On its or otherwise retain or dispose of such equip- agreement with respect to which the lessor and own motion or on request of a party in interest, ment, is not limited or otherwise affected by any the debtor, as lessee, have expressed in the and after notice and hearing, the court may other provision of this title or by any power of agreement or in a substantially contempora- order a change in the membership of a com- the court. neous writing that the agreement is to be treated mittee appointed under this subsection, if the ‘‘(2) The right to take possession and to en- as a lease for Federal income tax purposes; and court determines that the change is necessary to force the other rights and remedies described in ‘‘(2) the term ‘security interest’ means a pur- ensure adequate representation of creditors or paragraph (1) shall be subject to section 362 if— chase-money equipment security interest.’’. equity security holders. The court may increase

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00065 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S410 CONGRESSIONAL RECORD — SENATE February 7, 2000 the number of members of a committee to include ‘‘(B) made according to ordinary business SEC. 417. FACTORS FOR COMPENSATION OF PRO- a creditor that is a small business concern (as terms;’’; FESSIONAL PERSONS. described in section 3(a)(1) of the Small Business (2) in paragraph (7) by striking ‘‘or’’ at the Section 330(a)(3)(A) of title 11, United States Act (15 U.S.C. 632(a)(1))), if the court determines end; Code, as amended by section 409 of this Act, is that the creditor holds claims (of the kind rep- (3) in paragraph (8) by striking the period at amended— resented by the committee) the aggregate the end and inserting ‘‘; or’’; and (1) in clause (i), by striking ‘‘and’’ at the end; amount of which, in comparison to the annual (4) by adding at the end the following: (2) by redesignating clause (v) as clause (vi); gross revenue of that creditor, is disproportion- ‘‘(9) if, in a case filed by a debtor whose debts and ately large.’’. are not primarily consumer debts, the aggregate (3) by inserting after clause (iv) the following: (b) INFORMATION.—Section 1102(b) of title 11, value of all property that constitutes or is af- ‘‘(v) with respect to a professional person, United States Code, is amended by adding at the fected by such transfer is less than $5,000.’’. whether the person is board certified or other- end the following: SEC. 412. VENUE OF CERTAIN PROCEEDINGS. wise has demonstrated skill and experience in ‘‘(3) A committee appointed under subsection Section 1409(b) of title 28, United States Code, the bankruptcy field;’’. (a) shall— is amended by inserting ‘‘, or a nonconsumer SEC. 418. APPOINTMENT OF ELECTED TRUSTEE. ‘‘(A) provide access to information for credi- debt against a noninsider of less than $10,000,’’ Section 1104(b) of title 11, United States Code, tors who— after ‘‘$5,000’’. is amended— ‘‘(i) hold claims of the kind represented by SEC. 413. PERIOD FOR FILING PLAN UNDER CHAP- (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and that committee; and TER 11. (2) by adding at the end the following: ‘‘(ii) are not appointed to the committee; Section 1121(d) of title 11, United States Code, ‘‘(2)(A) If an eligible, disinterested trustee is ‘‘(B) solicit and receive comments from the is amended— elected at a meeting of creditors under para- creditors described in subparagraph (A); and (1) by striking ‘‘On’’ and inserting ‘‘(1) Sub- graph (1), the United States trustee shall file a ‘‘(C) be subject to a court order that compels ject to paragraph (1), on’’; and report certifying that election. any additional report or disclosure to be made to (2) by adding at the end the following: ‘‘(B) Upon the filing of a report under sub- the creditors described in subparagraph (A).’’. ‘‘(2)(A) The 120-day period specified in para- paragraph (A)— SEC. 407. AMENDMENT TO SECTION 546 OF TITLE graph (1) may not be extended beyond a date ‘‘(i) the trustee elected under paragraph (1) 11, UNITED STATES CODE. that is 18 months after the date of the order for shall be considered to have been selected and Section 546 of title 11, United States Code, is relief under this chapter. appointed for purposes of this section; and amended— ‘‘(B) The 180-day period specified in para- ‘‘(ii) the service of any trustee appointed (1) by redesignating the second subsection des- graph (1) may not be extended beyond a date under subsection (d) shall terminate. ignated as subsection (g) (as added by section that is 20 months after the date of the order for ‘‘(C) In the case of any dispute arising out of 222(a) of Public Law 103–394) as subsection (i); relief under this chapter.’’. an election described in subparagraph (A), the and SEC. 414. FEES ARISING FROM CERTAIN OWNER- court shall resolve the dispute.’’. (2) by adding at the end the following: SHIP INTERESTS. SEC. 419. UTILITY SERVICE. ‘‘(j)(1) Notwithstanding section 545 (2) and Section 523(a)(16) of title 11, United States Section 366 of title 11, United States Code, is (3), the trustee may not avoid a warehouseman’s Code, is amended— amended— lien for storage, transportation or other costs in- (1) by striking ‘‘dwelling’’ the first place it ap- (1) in subsection (a), by striking ‘‘subsection cidental to the storage and handling of goods. pears; (b)’’ and inserting ‘‘subsections (b) and (c)’’; ‘‘(2) The prohibition under paragraph (1) (2) by striking ‘‘ownership or’’ and inserting and shall be applied in a manner consistent with ‘‘ownership,’’; (2) by adding at the end the following: any applicable State statute that is similar to (3) by striking ‘‘housing’’ the first place it ap- ‘‘(c)(1)(A) For purposes of this subsection, the section 7–209 of the Uniform Commercial Code.’’. pears; and term ‘assurance of payment’ means— SEC. 408. LIMITATION. (4) by striking ‘‘but only’’ and all that follows ‘‘(i) a cash deposit; Section 546(c)(1)(B) of title 11, United States through ‘‘but nothing in this paragraph’’ and ‘‘(ii) a letter of credit; Code, is amended by striking ‘‘20’’ and inserting inserting ‘‘or a lot in a homeowners association, ‘‘(iii) a certificate of deposit; ‘‘45’’. for as long as the debtor or the trustee has a ‘‘(iv) a surety bond; SEC. 409. AMENDMENT TO SECTION 330(a) OF legal, equitable, or possessory ownership interest ‘‘(v) a prepayment of utility consumption; or TITLE 11, UNITED STATES CODE. in such unit, such corporation, or such lot, and ‘‘(vi) another form of security that is mutually Section 330(a)(3) of title 11, United States until such time as the debtor or trustee has sur- agreed on between the utility and the debtor or Code, is amended— rendered any legal, equitable or possessory in- the trustee. (1) by striking ‘‘(A) the; and inserting ‘‘(i) terest in such unit, such corporation, or such ‘‘(B) For purposes of this subsection an ad- the’’; lot, but nothing in this paragraph’’. ministrative expense priority shall not constitute (2) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’; SEC. 415. CREDITOR REPRESENTATION AT FIRST an assurance of payment. (3) by striking ‘‘(C)’’ and inserting ‘‘(iii)’’; MEETING OF CREDITORS. ‘‘(2) Subject to paragraphs (3) through (5), (4) by striking ‘‘(D)’’ and inserting ‘‘(iv)’’; Section 341(c) of title 11, United States Code, with respect to a case filed under chapter 11, a (5) by striking ‘‘(E)’’ and inserting ‘‘(v)’’; is amended by inserting after the first sentence utility referred to in subsection (a) may alter, (6) in subparagraph (A), by inserting ‘‘to an the following: ‘‘Notwithstanding any local court refuse, or discontinue utility service, if during examiner, trustee under chapter 11, or profes- rule, provision of a State constitution, any other the 20-day period beginning on the date of filing sional person’’ after ‘‘awarded’’; and Federal or State law that is not a bankruptcy of the petition, the utility does not receive from (7) by adding at the end the following: law, or other requirement that representation at the debtor or the trustee adequate assurance of ‘‘(B) In determining the amount of reasonable the meeting of creditors under subsection (a) be payment for utility service that is satisfactory to compensation to be awarded a trustee, the court by an attorney, a creditor holding a consumer the utility. shall treat such compensation as a commission debt or any representative of the creditor (which ‘‘(3)(A) On request of a party in interest and based on the results achieved.’’. may include an entity or an employee of an en- after notice and a hearing, the court may order SEC. 410. POSTPETITION DISCLOSURE AND SO- tity and may be a representative for more than modification of the amount of an assurance of LICITATION. 1 creditor) shall be permitted to appear at and payment under paragraph (2). Section 1125 of title 11, United States Code, is participate in the meeting of creditors in a case ‘‘(B) In making a determination under this amended by adding at the end the following: under chapter 7 or 13, either alone or in con- paragraph whether an assurance of payment is ‘‘(g) Notwithstanding subsection (b), an ac- junction with an attorney for the creditor. adequate, the court may not consider— ceptance or rejection of the plan may be solic- Nothing in this subsection shall be construed to ‘‘(i) the absence of security before the date of ited from a holder of a claim or interest if such require any creditor to be represented by an at- filing of the petition; solicitation complies with applicable nonbank- torney at any meeting of creditors.’’. ‘‘(ii) the payment by the debtor of charges for ruptcy law and if such holder was solicited be- SEC. 416. DEFINITION OF DISINTERESTED PER- utility service in a timely manner before the date fore the commencement of the case in a manner SON. of filing of the petition; or complying with applicable nonbankruptcy Section 101(14) of title 11, United States Code, ‘‘(iii) the availability of an administrative ex- law.’’. is amended to read as follows: pense priority. SEC. 411. PREFERENCES. ‘‘(14) ‘disinterested person’ means a person ‘‘(4) Notwithstanding any other provision of Section 547(c) of title 11, United States Code, that— law, with respect to a case subject to this sub- is amended— ‘‘(A) is not a creditor, an equity security hold- section, a utility may recover or set off against (1) by striking paragraph (2) and inserting the er, or an insider; a security deposit provided to the utility by the following: ‘‘(B) is not and was not, within 2 years before debtor before the date of filing of the petition ‘‘(2) to the extent that such transfer was in the date of the filing of the petition, a director, without notice or order of the court.’’. payment of a debt incurred by the debtor in the officer, or employee of the debtor; and SEC. 420. BANKRUPTCY FEES. ordinary course of business or financial affairs ‘‘(C) does not have an interest materially ad- Section 1930 of title 28, United States Code, is of the debtor and the transferee, and such verse to the interest of the estate or of any class amended— transfer was— of creditors or equity security holders, by reason (1) in subsection (a), by striking ‘‘Notwith- ‘‘(A) made in the ordinary course of business of any direct or indirect relationship to, connec- standing section 1915 of this title, the parties’’ or financial affairs of the debtor and the trans- tion with, or interest in, the debtor, or for any and inserting ‘‘Subject to subsection (f), the par- feree; or other reason;’’. ties’’; and

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00066 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S411 (2) by adding at the end the following: quate information to each holder of a claim or ‘‘(ii) if the debtor is not in compliance with ‘‘(f)(1) The Judicial Conference of the United interest that is solicited, but a conditionally ap- the requirements referred to in clause (i)(I) or States shall prescribe procedures for waiving proved disclosure statement shall be mailed not filing tax returns and other required government fees under this subsection. later than 20 days before the date of the hearing filings and making the payments referred to in ‘‘(2) Under the procedures described in para- on confirmation of the plan; and clause (i)(II), what the failures are and how, at graph (1), the district court or the bankruptcy ‘‘(C) the hearing on the disclosure statement what cost, and when the debtor intends to rem- court may waive a filing fee described in para- may be combined with the hearing on confirma- edy such failures; and graph (3) for a case commenced under chapter 7 tion of a plan.’’. ‘‘(iii) such other matters as are in the best in- of title 11 if the court determines that an indi- SEC. 432. DEFINITIONS; EFFECT OF DISCHARGE. terests of the debtor and creditors, and in the vidual debtor whose income is less than 125 per- (a) DEFINITIONS.—Section 101 of title 11, public interest in fair and efficient procedures cent of the income official poverty line (as de- United States Code, as amended by section 402 under chapter 11 of this title.’’. fined by the Office of Management and Budget, of this Act, is amended by striking paragraph (2) CLERICAL AMENDMENT.—The table of sec- and revised annually in accordance with section (51C) and inserting the following: tions for chapter 3 of title 11, United States 673(2) of the Omnibus Budget Reconciliation Act ‘‘(51C) ‘small business case’ means a case filed Code, is amended by inserting after the item re- of 1981) applicable to a family of the size in- under chapter 11 of this title in which the debtor lating to section 307 the following: volved is unable to pay that fee in installments. is a small business debtor; ‘‘308. Debtor reporting requirements.’’. ‘‘(51D) ‘small business debtor’— ‘‘(3) A filing fee referred to in paragraph (2) (b) EFFECTIVE DATE.—The amendments made ‘‘(A) subject to subparagraph (B), means a is— by subsection (a) shall take effect 60 days after person (including any affiliate of such person ‘‘(A) a filing fee under subsection (a)(1); or the date on which rules are prescribed under that is also a debtor under this title and exclud- ‘‘(B) any other fee prescribed by the Judicial section 2075 of title 28, United States Code, to es- ing a person whose primary activity is the busi- Conference of the United States under sub- tablish forms to be used to comply with section ness of owning and operating real property and section (b) that is payable to the clerk of the dis- 308 of title 11, United States Code, as added by activities incidental thereto) that has aggregate trict court or the clerk of the bankruptcy court subsection (a). upon the commencement of a case under chapter noncontingent, liquidated secured and unse- cured debts as of the date of the petition or the SEC. 435. UNIFORM REPORTING RULES AND 7 of title 11. FORMS FOR SMALL BUSINESS CASES. ‘‘(4) In addition to waiving a fee under para- order for relief in an amount not more than (a) PROPOSAL OF RULES AND FORMS.—The Ad- graph (2), the district court or the bankruptcy $3,000,000 (excluding debts owed to 1 or more af- visory Committee on Bankruptcy Rules of the court may waive any other fee prescribed under filiates or insiders) for a case in which the Judicial Conference of the United States shall subsection (b) or (c) if the court determines that United States trustee has appointed under sec- propose for adoption amended Federal Rules of the individual with an income at a level de- tion 1102(a)(1) a committee of unsecured credi- Bankruptcy Procedure and Official Bankruptcy scribed in paragraph (2) is unable to pay that tors that the court has determined is sufficiently Forms to be used by small business debtors to fee in installments.’’. active and representative to provide effective file periodic financial and other reports con- oversight of the debtor; and SEC. 421. MORE COMPLETE INFORMATION RE- taining information, including information re- GARDING ASSETS OF THE ESTATE. ‘‘(B) does not include any member of a group of affiliated debtors that has aggregate non- lating to— (a) IN GENERAL.— (1) the debtor’s profitability; contingent liquidated secured and unsecured (1) DISCLOSURE.—The Advisory Committee on (2) the debtor’s cash receipts and disburse- debts in an amount greater than $4,000,000 (ex- Bankruptcy Rules of the Judicial Conference of ments; and the United States, after consideration of the cluding debt owed to 1 or more affiliates or in- (3) whether the debtor is timely filing tax re- views of the Director of the Executive Office for siders);’’. turns and paying taxes and other administrative (b) CONFORMING AMENDMENT.—Section the United States Trustees, shall propose for claims when due. 1102(a)(3) of title 11, United States Code, is adoption amended Federal Rules of Bankruptcy (b) PURPOSE.—The rules and forms proposed amended by inserting ‘‘debtor’’ after ‘‘small Procedure and Official Bankruptcy Forms di- under subsection (a) shall be designed to business’’. recting debtors under chapter 11 of title 11, achieve a practical balance among— United States Code, to disclose the information SEC. 433. STANDARD FORM DISCLOSURE STATE- (1) the reasonable needs of the bankruptcy described in paragraph (2) by filing and serving MENT AND PLAN. court, the United States trustee, creditors, and periodic financial and other reports designed to Within a reasonable period of time after the other parties in interest for reasonably complete provide such information. date of the enactment of this Act, the Advisory information; (2) INFORMATION.—The information referred Committee on Bankruptcy Rules of the Judicial (2) the small business debtor’s interest that re- to in paragraph (1) is the value, operations, and Conference of the United States shall propose quired reports be easy and inexpensive to com- profitability of any closely held corporation, for adoption standard form disclosure state- plete; and partnership, or of any other entity in which the ments and plans of reorganization for small (3) the interest of all parties that the required debtor holds a substantial or controlling inter- business debtors (as defined in section 101 of reports help the small business debtor to under- est. title 11, United States Code, as amended by this stand the small business debtor’s financial con- (b) PURPOSE.—The purpose of the rules and Act), designed to achieve a practical balance be- dition and plan the small business debtor’s fu- reports under subsection (a) shall be to assist tween— ture. (1) the reasonable needs of the courts, the parties in interest taking steps to ensure that SEC. 436. DUTIES IN SMALL BUSINESS CASES. United States trustee, creditors, and other par- the debtor’s interest in any entity referred to in (a) DUTIES IN CHAPTER 11 CASES.—Subchapter ties in interest for reasonably complete informa- subsection (a)(2) is used for the payment of al- I of title 11, United States Code, as amended by lowed claims against debtor. tion; and (2) economy and simplicity for debtors. section 321 of this Act, is amended by adding at Subtitle B—Small Business Bankruptcy the end the following: SEC. 434. UNIFORM NATIONAL REPORTING RE- Provisions QUIREMENTS. ‘‘§ 1116. Duties of trustee or debtor in posses- SEC. 431. FLEXIBLE RULES FOR DISCLOSURE (a) REPORTING REQUIRED.— sion in small business cases STATEMENT AND PLAN. (1) IN GENERAL.—Chapter 3 of title 11, United ‘‘In a small business case, a trustee or the Section 1125 of title 11, United States Code, is States Code, is amended by inserting after sec- debtor in possession, in addition to the duties amended by striking subsection (f) and inserting tion 307 the following: provided in this title and as otherwise required the following: ‘‘§ 308. Debtor reporting requirements by law, shall— ‘‘(f) Notwithstanding subsection (b), in a ‘‘(1) For purposes of this section, the term ‘‘(1) append to the voluntary petition or, in small business case— ‘profitability’ means, with respect to a debtor, an involuntary case, file within 7 days after the ‘‘(1) in determining whether a disclosure the amount of money that the debtor has earned date of the order for relief— statement provides adequate information, the or lost during current and recent fiscal periods. ‘‘(A) its most recent balance sheet, statement court shall consider the complexity of the case, ‘‘(2) A small business debtor shall file periodic of operations, cash-flow statement, Federal in- the benefit of additional information to creditors financial and other reports containing informa- come tax return; or and other parties in interest, and the cost of tion including— ‘‘(B) a statement made under penalty of per- providing additional information; ‘‘(A) the debtor’s profitability; jury that no balance sheet, statement of oper- ‘‘(2) the court may determine that the plan ‘‘(B) reasonable approximations of the debt- ations, or cash-flow statement has been pre- itself provides adequate information and that a or’s projected cash receipts and cash disburse- pared and no Federal tax return has been filed; separate disclosure statement is not necessary; ments over a reasonable period; ‘‘(2) attend, through its senior management ‘‘(3) the court may approve a disclosure state- ‘‘(C) comparisons of actual cash receipts and personnel and counsel, meetings scheduled by ment submitted on standard forms approved by disbursements with projections in prior reports; the court or the United States trustee, including the court or adopted under section 2075 of title ‘‘(D)(i) whether the debtor is— initial debtor interviews, scheduling con- 28; and ‘‘(I) in compliance in all material respects ferences, and meetings of creditors convened ‘‘(4)(A) the court may conditionally approve a with postpetition requirements imposed by this under section 341 unless the court waives that disclosure statement subject to final approval title and the Federal Rules of Bankruptcy Pro- requirement after notice and hearing, upon a after notice and a hearing; cedure; and finding of extraordinary and compelling cir- ‘‘(B) acceptances and rejections of a plan may ‘‘(II) timely filing tax returns and other re- cumstances; be solicited based on a conditionally approved quired government filings and paying taxes and ‘‘(3) timely file all schedules and statements of disclosure statement if the debtor provides ade- other administrative claims when due; and financial affairs, unless the court, after notice

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00067 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S412 CONGRESSIONAL RECORD — SENATE February 7, 2000 and a hearing, grants an extension, which shall ‘‘(7) in each of such small business cases— dating plan, within a reasonable period of not extend such time period to a date later than ‘‘(A) conduct an initial debtor interview as time.’’. 30 days after the date of the order for relief, ab- soon as practicable after the entry of order for SEC. 442. EXPANDED GROUNDS FOR DISMISSAL sent extraordinary and compelling cir- relief but before the first meeting scheduled OR CONVERSION AND APPOINTMENT cumstances; under section 341(a) of title 11, at which time OF TRUSTEE. ‘‘(4) file all postpetition financial and other the United States trustee shall— (a) EXPANDED GROUNDS FOR DISMISSAL OR reports required by the Federal Rules of Bank- ‘‘(i) begin to investigate the debtor’s viability; CONVERSION.—Section 1112 of title 11, United ruptcy Procedure or by local rule of the district ‘‘(ii) inquire about the debtor’s business plan; States Code, is amended by striking subsection court; ‘‘(iii) explain the debtor’s obligations to file (b) and inserting the following: ‘‘(5) subject to section 363(c)(2), maintain in- monthly operating reports and other required ‘‘(b)(1) Except as provided in paragraph (2), surance customary and appropriate to the in- reports; in subsection (c), and section 1104(a)(3), on re- dustry; ‘‘(iv) attempt to develop an agreed scheduling quest of a party in interest, and after notice and ‘‘(6)(A) timely file tax returns and other re- order; and a hearing, the court shall convert a case under quired government filings; and ‘‘(v) inform the debtor of other obligations; this chapter to a case under chapter 7 or dismiss ‘‘(B) subject to section 363(c)(2), timely pay all ‘‘(B) if determined to be appropriate and ad- a case under this chapter, whichever is in the administrative expense tax claims, except those visable, visit the appropriate business premises best interest of creditors and the estate, if the being contested by appropriate proceedings of the debtor and ascertain the state of the debt- movant establishes cause. being diligently prosecuted; and or’s books and records and verify that the debt- ‘‘(2) The relief provided in paragraph (1) shall ‘‘(7) allow the United States trustee, or a des- or has filed its tax returns; and not be granted if the debtor or another party in ignated representative of the United States ‘‘(C) review and monitor diligently the debt- interest objects and establishes by a preponder- trustee, to inspect the debtor’s business prem- or’s activities, to identify as promptly as possible ance of the evidence that— ises, books, and records at reasonable times, whether the debtor will be unable to confirm a ‘‘(A) a plan with a reasonable possibility of after reasonable prior written notice, unless no- plan; and being confirmed will be filed within a reasonable tice is waived by the debtor.’’. ‘‘(8) in any case in which the United States period of time; and (b) CLERICAL AMENDMENT.—The table of sec- trustee finds material grounds for any relief ‘‘(B) if the grounds include an act or omission tions for chapter 11 of title 11, United States under section 1112 of title 11, the United States of the debtor— Code, is amended by adding at the end of the trustee shall apply promptly after making that ‘‘(i) for which there exists a reasonable jus- matter relating to subchapter I the following: finding to the court for relief.’’. tification for the act or omission; and ‘‘1116. Duties of trustee or debtor in possession SEC. 440. SCHEDULING CONFERENCES. ‘‘(ii) which will be cured within a reasonable in small business cases.’’. Section 105(d) of title 11, United States Code, period of time fixed by the court. SEC. 437. PLAN FILING AND CONFIRMATION is amended— ‘‘(3) The court shall commence the hearing on DEADLINES. (1) in the matter preceding paragraph (1), by any motion under this subsection not later than Section 1121 of title 11, United States Code, is striking 30 days after filing of the motion, and shall de- amended by striking subsection (e) and inserting ‘‘, may’’; cide the motion within 15 days after commence- the following: (2) by striking paragraph (1) and inserting the ment of the hearing, unless the movant ex- ‘‘(e) In a small business case— following: pressly consents to a continuance for a specific ‘‘(1) only the debtor may file a plan until after ‘‘(1) shall hold such status conferences as are period of time or compelling circumstances pre- 180 days after the date of the order for relief, necessary to further the expeditious and eco- vent the court from meeting the time limits es- unless that period is— nomical resolution of the case; and’’; and tablished by this paragraph. ‘‘(A) extended as provided by this subsection, (3) in paragraph (2), by striking ‘‘unless in- ‘‘(4) For purposes of this subsection, cause in- after notice and hearing; or consistent with another provision of this title or cludes— ‘‘(B) the court, for cause, orders otherwise; with applicable Federal Rules of Bankruptcy ‘‘(A) substantial or continuing loss to or dimi- ‘‘(2) the plan, and any necessary disclosure Procedure,’’. nution of the estate; statement, shall be filed not later than 300 days SEC. 441. SERIAL FILER PROVISIONS. ‘‘(B) gross mismanagement of the estate; after the date of the order for relief; and Section 362 of title 11, United States Code, is ‘‘(C) failure to maintain appropriate insur- ‘‘(3) the time periods specified in paragraphs amended— ance that poses a risk to the estate or to the (1) and (2), and the time fixed in section 1129(e), (1) in subsection (j), as redesignated by section public; within which the plan shall be confirmed, may 305(1) of this Act— ‘‘(D) unauthorized use of cash collateral be extended only if— (A) by striking ‘‘An’’ and inserting ‘‘(1) Ex- harmful to 1 or more creditors; ‘‘(A) the debtor, after providing notice to par- cept as provided in paragraph (2), an’’; and ‘‘(E) failure to comply with an order of the ties in interest (including the United States (B) by adding at the end the following: court; trustee), demonstrates by a preponderance of ‘‘(2) If such violation is based on an action ‘‘(F) repeated failure timely to satisfy any fil- the evidence that it is more likely than not that taken by an entity in the good faith belief that ing or reporting requirement established by this the court will confirm a plan within a reason- subsection (h) applies to the debtor, the recovery title or by any rule applicable to a case under able period of time; under paragraph (1) against such entity shall be this chapter; ‘‘(B) a new deadline is imposed at the time the limited to actual damages.’’; and ‘‘(G) failure to attend the meeting of creditors extension is granted; and (2) by inserting after subsection (j) the fol- convened under section 341(a) or an examina- ‘‘(C) the order extending time is signed before lowing: tion ordered under Rule 2004 of the Federal the existing deadline has expired.’’. ‘‘(k)(1) Except as provided in paragraph (2), Rules of Bankruptcy Procedure; SEC. 438. PLAN CONFIRMATION DEADLINE. the filing of a petition under chapter 11 operates ‘‘(H) failure timely to provide information or Section 1129 of title 11, United States Code, is as a stay of the acts described in subsection (a) attend meetings reasonably requested by the amended by adding at the end the following: only in an involuntary case involving no collu- United States trustee; ‘‘(e) In a small business case, the plan shall be sion by the debtor with creditors and in which ‘‘(I) failure timely to pay taxes due after the confirmed not later than 175 days after the date the debtor— date of the order for relief or to file tax returns of the order for relief, unless such 175-day pe- ‘‘(A) is a debtor in a small business case pend- due after the order for relief; riod is extended as provided in section ing at the time the petition is filed; ‘‘(J) failure to file a disclosure statement, or to 1121(e)(3).’’. ‘‘(B) was a debtor in a small business case file or confirm a plan, within the time fixed by SEC. 439. DUTIES OF THE UNITED STATES TRUST- that was dismissed for any reason by an order this title or by order of the court; EE. that became final in the 2-year period ending on ‘‘(K) failure to pay any fees or charges re- Section 586(a) of title 28, United States Code, the date of the order for relief entered with re- quired under chapter 123 of title 28; is amended— spect to the petition; ‘‘(L) revocation of an order of confirmation (1) in paragraph (3)— ‘‘(C) was a debtor in a small business case in under section 1144; (A) in subparagraph (G), by striking ‘‘and’’ at which a plan was confirmed in the 2-year period ‘‘(M) inability to effectuate substantial con- the end; ending on the date of the order for relief entered summation of a confirmed plan; (B) by redesignating subparagraph (H) as sub- with respect to the petition; or ‘‘(N) material default by the debtor with re- paragraph (I); and ‘‘(D) is an entity that has succeeded to sub- spect to a confirmed plan; (C) by inserting after subparagraph (G) the stantially all of the assets or business of a small ‘‘(O) termination of a confirmed plan by rea- following: business debtor described in subparagraph (A), son of the occurrence of a condition specified in ‘‘(H) in small business cases (as defined in sec- (B), or (C). the plan; and tion 101 of title 11), performing the additional ‘‘(2) Paragraph (1) does not apply to the filing ‘‘(P) failure of the debtor to pay any domestic duties specified in title 11 pertaining to such of a petition if the debtor proves by a preponder- support obligation that first becomes payable cases;’’; ance of the evidence that— after the date on which the petition is filed. (2) in paragraph (5), by striking ‘‘and’’ at the ‘‘(A) the filing of that petition resulted from ‘‘(5) The court shall commence the hearing on end; circumstances beyond the control of the debtor any motion under this subsection not later than (3) in paragraph (6), by striking the period at not foreseeable at the time the case then pend- 30 days after filing of the motion, and shall de- the end and inserting ‘‘; and’’; and ing was filed; and cide the motion within 15 days after commence- (4) by inserting after paragraph (6) the fol- ‘‘(B) it is more likely than not that the court ment of the hearing, unless the movant ex- lowing: will confirm a feasible plan, but not a liqui- pressly consents to a continuance for a specific

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00068 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S413 period of time or compelling circumstances pre- (1) by inserting ‘‘555, 556,’’ after ‘‘553,’’; and ‘‘(B) a failure to make available for inspection vent the court from meeting the time limits es- (2) by inserting ‘‘559, 560,’’ after ‘‘557,’’. all necessary accounts, papers, documents, fi- tablished by this paragraph.’’. TITLE VI—IMPROVED BANKRUPTCY nancial records, files, and any other papers, (b) ADDITIONAL GROUNDS FOR APPOINTMENT STATISTICS AND DATA things, or property belonging to the debtor that OF TRUSTEE.—Section 1104(a) of title 11, United SEC. 601. AUDIT PROCEDURES. are requested for an audit conducted under sec- States Code, is amended— (a) AMENDMENTS.—Section 586 of title 28, tion 586(f).’’. (1) in paragraph (1), by striking ‘‘or’’ at the (d) EFFECTIVE DATE.—The amendments made end; United States Code, is amended— (1) in subsection (a), by striking paragraph (6) by this section shall take effect 18 months after (2) in paragraph (2), by striking the period at the date of enactment of this Act. the end and inserting ‘‘; or’’; and and inserting the following: SEC. 602. IMPROVED BANKRUPTCY STATISTICS. (3) by adding at the end the following: ‘‘(6) make such reports as the Attorney Gen- ‘‘(3) if grounds exist to convert or dismiss the eral directs, including the results of audits per- (a) AMENDMENT.—Chapter 6 of title 28, United case under section 1112, but the court determines formed under subsection (f); and’’; and States Code, is amended by adding at the end that the appointment of a trustee or an exam- (2) by adding at the end the following: the following: iner is in the best interests of creditors and the ‘‘(f)(1)(A) The Attorney General shall estab- ‘‘§ 159. Bankruptcy statistics lish procedures to determine the accuracy, ve- estate.’’. ‘‘(a) The clerk of each district court shall com- racity, and completeness of petitions, schedules, SEC. 443. STUDY OF OPERATION OF TITLE 11, pile statistics regarding individual debtors with and other information which the debtor is re- UNITED STATES CODE, WITH RE- primarily consumer debts seeking relief under quired to provide under sections 521 and 1322 of SPECT TO SMALL BUSINESSES. chapters 7, 11, and 13 of title 11. Those statistics title 11, and, if applicable, section 111 of title 11, Not later than 2 years after the date of the en- shall be in a form prescribed by the Director of in individual cases filed under chapter 7 or 13 of actment of this Act, the Administrator of the the Administrative Office of the United States such title. Small Business Administration, in consultation Courts (referred to in this section as the ‘Of- with the Attorney General of the United States, ‘‘(B) Those procedures shall— ‘‘(i) establish a method of selecting appro- fice’). the Director of the Administrative Office of ‘‘(b) The Director shall— United States Trustees, and the Director of the priate qualified persons to contract to perform those audits; ‘‘(1) compile the statistics referred to in sub- Administrative Office of the United States section (a); Courts, shall— ‘‘(ii) establish a method of randomly selecting cases to be audited, except that not less than 1 ‘‘(2) make the statistics available to the pub- (1) conduct a study to determine— lic; and (A) the internal and external factors that out of every 250 cases in each Federal judicial district shall be selected for audit; ‘‘(3) not later than October 31, 1999, and an- cause small businesses, especially sole propri- nually thereafter, prepare, and submit to Con- etorships, to become debtors in cases under title ‘‘(iii) require audits for schedules of income and expenses which reflect greater than average gress a report concerning the information col- 11, United States Code, and that cause certain lected under subsection (a) that contains an small businesses to successfully complete cases variances from the statistical norm of the dis- trict in which the schedules were filed if those analysis of the information. under chapter 11 of such title; and ‘‘(c) The compilation required under sub- (B) how Federal laws relating to bankruptcy variances occur by reason of higher income or section (b) shall— may be made more effective and efficient in as- higher expenses than the statistical norm of the ‘‘(1) be itemized, by chapter, with respect to sisting small businesses to remain viable; and district in which the schedules were filed; and (2) submit to the President pro tempore of the ‘‘(iv) include procedures for providing, not title 11; ‘‘(2) be presented in the aggregate and for Senate and the Speaker of the House of Rep- less frequently than annually, public informa- each district; and resentatives a report summarizing that study. tion concerning the aggregate results of the au- dits referred to in this subparagraph, including ‘‘(3) include information concerning— SEC. 444. PAYMENT OF INTEREST. ‘‘(A) the total assets and total liabilities of the Section 362(d)(3) of title 11, United States the percentage of cases, by district, in which a debtors described in subsection (a), and in each Code, is amended— material misstatement of income or expenditures (1) by inserting ‘‘or 30 days after the court de- is reported. category of assets and liabilities, as reported in termines that the debtor is subject to this para- ‘‘(2) The United States trustee for each district the schedules prescribed under section 2075 and graph, whichever is later’’ after ‘‘90-day pe- may contract with auditors to perform audits in filed by those debtors; riod)’’; and cases designated by the United States trustee ac- ‘‘(B) the total current monthly income, pro- (2) by striking subparagraph (B) and inserting cording to the procedures established under jected monthly net income, and average income, the following: paragraph (1). and average expenses of those debtors as re- ‘‘(B) the debtor has commenced monthly pay- ‘‘(3)(A) The report of each audit conducted ported on the schedules and statements that ments that— under this subsection shall be filed with the each such debtor files under sections 111, 521, ‘‘(i) may, in the debtor’s sole discretion, not- court and transmitted to the United States trust- and 1322 of title 11; withstanding section 363(c)(2), be made from ee. Each report shall clearly and conspicuously ‘‘(C) the aggregate amount of debt discharged rents or other income generated before or after specify any material misstatement of income or in the reporting period, determined as the dif- the commencement of the case by or from the expenditures or of assets identified by the per- ference between the total amount of debt and property to each creditor whose claim is secured son performing the audit. In any case where a obligations of a debtor reported on the schedules by such real estate (other than a claim secured material misstatement of income or expenditures and the amount of such debt reported in cat- by a judgment lien or by an unmatured statu- or of assets has been reported, the clerk of the egories which are predominantly nondischarge- tory lien); and bankruptcy court shall give notice of the able; ‘‘(ii) are in an amount equal to interest at the misstatement to the creditors in the case. ‘‘(D) the average period of time between the then applicable nondefault contract rate of in- ‘‘(B) If a material misstatement of income or filing of the petition and the closing of the case; terest on the value of the creditor’s interest in expenditures or of assets is reported, the United ‘‘(E) for the reporting period— the real estate; or’’. States trustee shall— ‘‘(i) the number of cases in which a reaffirma- SEC. 445. TECHNICAL CORRECTION. ‘‘(i) report the material misstatement, if ap- tion was filed; and Section 365(b)(2)(D) of title 11, United States propriate, to the United States Attorney under ‘‘(ii)(I) the total number of reaffirmations Code, is amended by striking ‘‘penalty rate or section 3057 of title 18; and filed; provision’’ and inserting ‘‘penalty rate or pen- ‘‘(ii) if advisable, take appropriate action, in- ‘‘(II) of those cases in which a reaffirmation alty provision’’. cluding commencing an adversary proceeding to was filed, the number in which the debtor was TITLE V—MUNICIPAL BANKRUPTCY revoke the debtor’s discharge under section not represented by an attorney; and PROVISIONS 727(d) of title 11.’’. ‘‘(III) of the cases under each of subclauses (b) AMENDMENTS TO SECTION 521 OF TITLE 11, (I) and (II), the number of cases in which the SEC. 501. PETITION AND PROCEEDINGS RELATED reaffirmation was approved by the court; TO PETITION. UNITED STATES CODE.—Paragraphs (3) and (4) ‘‘(F) with respect to cases filed under chapter (a) TECHNICAL AMENDMENT RELATING TO MU- of section 521(a) of title 11, United States Code, 13 of title 11, for the reporting period— NICIPALITIES.—Section 921(d) of title 11, United as amended by section 315 of this Act, are each States Code, is amended by inserting ‘‘, notwith- amended by inserting ‘‘or an auditor appointed ‘‘(i)(I) the number of cases in which a final standing section 301(b)’’ before the period at the under section 586 of title 28’’ after ‘‘serving in order was entered determining the value of end. the case’’ each place that term appears. property securing a claim in an amount less (b) CONFORMING AMENDMENT.—Section 301 of (c) AMENDMENTS TO SECTION 727 OF TITLE 11, than the amount of the claim; and title 11, United States Code, is amended— UNITED STATES CODE.—Section 727(d) of title 11, ‘‘(II) the number of final orders determining (1) by inserting ‘‘(a)’’ before ‘‘A voluntary’’; United States Code, is amended— the value of property securing a claim issued; (2) by striking the last sentence; and (1) in paragraph (2), by striking ‘‘or’’ at the ‘‘(ii) the number of cases dismissed for failure (3) by adding at the end the following: end; to make payments under the plan; and ‘‘(b) The commencement of a voluntary case (2) in paragraph (3), by striking the period at ‘‘(iii) the number of cases in which the debtor under a chapter of this title constitutes an order the end and inserting ‘‘; or’’; and filed another case during the 6-year period pre- for relief under such chapter.’’. (3) by adding at the end the following: ceding the date of filing; SEC. 502. APPLICABILITY OF OTHER SECTIONS TO ‘‘(4) the debtor has failed to explain satisfac- ‘‘(G) the number of cases in which creditors CHAPTER 9. torily— were fined for misconduct and any amount of Section 901(a) of title 11, United States Code, ‘‘(A) a material misstatement in an audit per- punitive damages awarded by the court for cred- is amended— formed under section 586(f) of title 28; or itor misconduct; and

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00069 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S414 CONGRESSIONAL RECORD — SENATE February 7, 2000 ‘‘(H) the number of cases in which sanctions Commerce, for the businesses conducted by the ‘‘(f) Notwithstanding the exclusion of ad valo- under Rule 9011 of the Federal Rules of Bank- debtor; rem tax liens under this section and subject to ruptcy Procedure were imposed against debtor’s ‘‘(B) the length of time the case has been the requirements of subsection (e), the following counsel and damages awarded under such pending; may be paid from property of the estate which rule.’’. ‘‘(C) the number of full-time employees— secures a tax lien, or the proceeds of such prop- (b) CLERICAL AMENDMENT.—The table of sec- ‘‘(i) as of the date of the order for relief; and erty: tions for chapter 6 of title 28, United States ‘‘(ii) at the end of each reporting period since ‘‘(1) Claims for wages, salaries, and commis- Code, is amended by adding at the end the fol- the case was filed; sions that are entitled to priority under section lowing: ‘‘(D) cash receipts, cash disbursements, and 507(a)(4). ‘‘159. Bankruptcy statistics.’’. profitability of the debtor for the most recent pe- ‘‘(2) Claims for contributions to an employee riod and cumulatively since the date of the benefit plan entitled to priority under section (c) EFFECTIVE DATE.—The amendments made by this section shall take effect 18 months after order for relief; 507(a)(5).’’. ‘‘(E) compliance with title 11, whether or not the date of enactment of this Act. (b) DETERMINATION OF TAX LIABILITY.—Sec- tax returns and tax payments since the date of tion 505(a)(2) of title 11, United States Code, is SEC. 603. UNIFORM RULES FOR THE COLLECTION the order for relief have been timely filed and amended— OF BANKRUPTCY DATA. made; (1) in subparagraph (A), by striking ‘‘or’’ at (a) AMENDMENT.—Chapter 39 of title 28, ‘‘(F) all professional fees approved by the the end; United States Code, is amended by inserting court in the case for the most recent period and (2) in subparagraph (B), by striking the period after section 589a the following: cumulatively since the date of the order for re- at the end and inserting ‘‘; or’’; and ‘‘§ 589b. Bankruptcy data lief (separately reported, for the professional (3) by adding at the end the following: ‘‘(a) Within a reasonable period of time after fees incurred by or on behalf of the debtor, be- ‘‘(C) the amount or legality of any amount the effective date of this section, the Attorney tween those that would have been incurred ab- arising in connection with an ad valorem tax on General of the United States shall issue rules re- sent a bankruptcy case and those that would real or personal property of the estate, if the ap- quiring uniform forms for (and from time to time not have been so incurred); and plicable period for contesting or redetermining thereafter to appropriately modify and ap- ‘‘(G) plans of reorganization filed and con- that amount under any law (other than a bank- prove)— firmed and, with respect thereto, by class, the ruptcy law) has expired.’’. ‘‘(1) final reports by trustees in cases under recoveries of the holders, expressed in aggregate SEC. 702. TREATMENT OF FUEL TAX CLAIMS. chapters 7, 12, and 13 of title 11; and dollar values and, in the case of claims, as a Section 501 of title 11, United States Code, is ‘‘(2) periodic reports by debtors in possession percentage of total claims of the class allowed. amended by adding at the end the following: or trustees, as the case may be, in cases under ‘‘(2) The information described in paragraph ‘‘(e) A claim arising from the liability of a chapter 11 of title 11. (1) shall be in addition to such other matters as debtor for fuel use tax assessed consistent with ‘‘(b) Each report referred to in subsection (a) are required by law for a periodic report or as the requirements of section 31705 of title 49 may shall be designed (and the requirements as to the Attorney General, in the discretion of the be filed by the base jurisdiction designated pur- place and manner of filing shall be established) Attorney General, may propose for a periodic re- suant to the International Fuel Tax Agreement so as to facilitate compilation of data and max- port.’’. and, if so filed, shall be allowed as a single imum practicable access of the public, by— (b) TECHNICAL AMENDMENT.—The table of sec- claim.’’. ‘‘(1) physical inspection at 1 or more central tions for chapter 39 of title 28, United States filing locations; and SEC. 703. NOTICE OF REQUEST FOR A DETER- Code, is amended by adding at the end the fol- MINATION OF TAXES. ‘‘(2) electronic access through the Internet or lowing: Section 505(b) of title 11, United States Code, other appropriate media. ‘‘(c)(1) The information required to be filed in ‘‘589b. Bankruptcy data.’’. is amended— the reports referred to in subsection (b) shall be SEC. 604. SENSE OF CONGRESS REGARDING (1) in the first sentence, by inserting ‘‘at the information that is— AVAILABILITY OF BANKRUPTCY address and in the manner designated in para- ‘‘(A) in the best interests of debtors and credi- DATA. graph (1)’’ after ‘‘determination of such tax’’; tors, and in the public interest; and It is the sense of Congress that— (2) by striking ‘‘(1) upon payment’’ and in- ‘‘(B) reasonable and adequate information to (1) it should be the national policy of the serting ‘‘(2)(A) upon payment’’; evaluate the efficiency and practicality of the United States that all data held by bankruptcy (3) by striking ‘‘(A) such governmental unit’’ Federal bankruptcy system. clerks in electronic form, to the extent such data and inserting ‘‘(i) such governmental unit’’; ‘‘(2) In issuing rules proposing the forms re- reflects only public records (as defined in sec- (4) by striking ‘‘(B) such governmental unit’’ ferred to in subsection (a), the Attorney General tion 107 of title 11, United States Code), should and inserting ‘‘(ii) such governmental unit’’; shall strike the best achievable practical balance be released in a usable electronic form in bulk to (5) by striking ‘‘(2) upon payment’’ and in- between— the public subject to such appropriate privacy serting ‘‘(B) upon payment’’; ‘‘(A) the reasonable needs of the public for in- concerns and safeguards as the Judicial Con- (6) by striking ‘‘(3) upon payment’’ and in- formation about the operational results of the ference of the United States may determine; and serting ‘‘(C) upon payment’’; Federal bankruptcy system; and (2) there should be established a bankruptcy (7) by striking ‘‘(b)’’ and inserting ‘‘(2)’’; and ‘‘(B) economy, simplicity, and lack of undue data system in which— (8) by inserting before paragraph (2), as so burden on persons with a duty to file reports. (A) a single set of data definitions and forms designated, the following: ‘‘(d)(1) Final reports proposed for adoption by are used to collect data nationwide; and ‘‘(b)(1)(A) The clerk of each district shall trustees under chapters 7, 12, and 13 of title 11 (B) data for any particular bankruptcy case maintain a listing under which a Federal, State, shall include with respect to a case under such are aggregated in the same electronic record. or local governmental unit responsible for the title, by appropriate category— TITLE VII—BANKRUPTCY TAX PROVISIONS collection of taxes within the district may— ‘‘(i) designate an address for service of re- ‘‘(A) information about the length of time the SEC. 701. TREATMENT OF CERTAIN LIENS. case was pending; quests under this subsection; and (a) TREATMENT OF CERTAIN LIENS.—Section ‘‘(B) assets abandoned; ‘‘(ii) describe where further information con- 724 of title 11, United States Code, is amended— ‘‘(C) assets exempted; cerning additional requirements for filing such (1) in subsection (b), in the matter preceding ‘‘(D) receipts and disbursements of the estate; requests may be found. ‘‘(E) expenses of administration; paragraph (1), by inserting ‘‘(other than to the ‘‘(B) If a governmental unit referred to in sub- ‘‘(F) claims asserted; extent that there is a properly perfected un- paragraph (A) does not designate an address ‘‘(G) claims allowed; and avoidable tax lien arising in connection with an and provide that address to the clerk under that ‘‘(H) distributions to claimants and claims dis- ad valorem tax on real or personal property of subparagraph, any request made under this sub- charged without payment. the estate)’’ after ‘‘under this title’’; section may be served at the address for the fil- ‘‘(2) In cases under chapters 12 and 13 of title (2) in subsection (b)(2), by inserting ‘‘(except ing of a tax return or protest with the appro- 11, final reports proposed for adoption by trust- that such expenses, other than claims for wages, priate taxing authority of that governmental ees shall include— salaries, or commissions which arise after the unit.’’. filing of a petition, shall be limited to expenses ‘‘(A) the date of confirmation of the plan; SEC. 704. RATE OF INTEREST ON TAX CLAIMS. incurred under chapter 7 of this title and shall ‘‘(B) each modification to the plan; and (a) IN GENERAL.—Subchapter I of chapter 5 of not include expenses incurred under chapter 11 ‘‘(C) defaults by the debtor in performance title 11, United States Code, is amended by add- of this title)’’ after ‘‘507(a)(1)’’; and under the plan. ing at the end the following: ‘‘(3) The information described in paragraphs (3) by adding at the end the following: (1) and (2) shall be in addition to such other ‘‘(e) Before subordinating a tax lien on real or ‘‘§ 511. Rate of interest on tax claims matters as are required by law for a final report personal property of the estate, the trustee ‘‘(a) If any provision of this title requires the or as the Attorney General, in the discretion of shall— payment of interest on a tax claim or the pay- the Attorney General, may propose for a final ‘‘(1) exhaust the unencumbered assets of the ment of interest to enable a creditor to receive report. estate; and the present value of the allowed amount of a tax ‘‘(e)(1) Periodic reports proposed for adoption ‘‘(2) in a manner consistent with section claim, the rate of interest shall be the rate shall by trustees or debtors in possession under chap- 506(c), recover from property securing an al- be determined under applicable nonbankruptcy ter 11 of title 11 shall include— lowed secured claim the reasonable, necessary law. ‘‘(A) information about the standard industry costs and expenses of preserving or disposing of ‘‘(b) In the case of taxes paid under a con- classification, published by the Department of that property. firmed plan under this title, the rate of interest

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00070 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S415 shall be determined as of the calendar month in years after the date of assessment of such (1) in subsection (b), by inserting ‘‘or State which the plan is confirmed.’’. claim,’’ and all that follows through the end of statute’’ after ‘‘agreement’’; and (b) CLERICAL AMENDMENT.—The table of sec- the subparagraph, and inserting ‘‘regular in- (2) in subsection (c), by inserting ‘‘, including tions for chapter 5 of title 11, United States stallment payments in cash— the payment of all ad valorem property taxes Code, is amended by inserting after the item re- ‘‘(i) of a total value, as of the effective date of with respect to the property’’ before the period lating to section 510 the following: the plan, equal to the allowed amount of such at the end. ‘‘511. Rate of interest on tax claims.’’. claim; SEC. 713. TARDILY FILED PRIORITY TAX CLAIMS. ‘‘(ii) with interest thereon calculated at the SEC. 705. PRIORITY OF TAX CLAIMS. Section 726(a)(1) of title 11, United States rate provided in section 6621(a)(2) of the Inter- Section 507(a)(8) of title 11, United States Code, is amended by striking ‘‘before the date nal Revenue Code of 1986; Code, is amended— on which the trustee commences distribution ‘‘(iii) over a period ending not later than 5 under this section;’’ and inserting the following: (1) in subparagraph (A)— years after the date of the entry of the order for (A) in the matter preceding clause (i), by in- ‘‘on or before the earlier of— relief under section 301, 302, or 303; and ‘‘(A) the date that is 10 days after the mailing serting ‘‘for a taxable year ending on or before ‘‘(iv) in a manner not less favorable than the to creditors of the summary of the trustee’s final the date of filing of the petition’’ after ‘‘gross most favored nonpriority unsecured claim pro- receipts’’; report; or vided for in the plan (other than cash payments ‘‘(B) the date on which the trustee commences (B) in clause (i)— made to a class of creditors under section (i) by striking ‘‘for a taxable year ending on final distribution under this section;’’. 1122(b)); and’’; and or before the date of filing of the petition’’; and (3) by adding at the end the following: SEC. 714. INCOME TAX RETURNS PREPARED BY (ii) by inserting before the semicolon at the ‘‘(D) with respect to a secured claim which TAX AUTHORITIES. end, the following: ‘‘, plus any time during would otherwise meet the description of an un- Section 523(a) of title 11, United States Code, which the stay of proceedings was in effect in a secured claim of a governmental unit under sec- is amended— prior case under this title or during which col- tion 507(a)(8), but for the secured status of that (1) in paragraph (1)(B)— (A) in the matter preceding clause (i), by in- lection was precluded by the existence of 1 or claim, the holder of that claim will receive on serting ‘‘or equivalent report or notice,’’ after more confirmed plans under this title, plus 90 account of that claim, cash payments, in the ‘‘a return,’’; days’’; and same manner and over the same period, as pre- (B) in clause (i)— (C) by striking clause (ii) and inserting the scribed in subparagraph (C).’’. following: (i) by inserting ‘‘or given’’ after ‘‘filed’’; and SEC. 711. AVOIDANCE OF STATUTORY TAX LIENS (ii) by striking ‘‘or’’ at the end; and ‘‘(ii) assessed within 240 days before the date PROHIBITED. (C) in clause (ii)— of the filing of the petition, exclusive of— Section 545(2) of title 11, United States Code, (i) by inserting ‘‘or given’’ after ‘‘filed’’; and ‘‘(I) any time during which an offer in com- is amended by striking the semicolon at the end (ii) by inserting ‘‘, report, or notice’’ after ‘‘re- promise with respect to that tax was pending or and inserting ‘‘, except in any case in which a in effect during that 240-day period, plus 30 turn’’; and purchaser is a purchaser described in section (2) by adding at the end the following flush days; and 6323 of the Internal Revenue Code of 1986, or in ‘‘(II) any time during which a stay of pro- sentences: any other similar provision of State or local ‘‘For purposes of this subsection, the term ‘re- ceedings against collections was in effect in a law;’’. prior case under this title during that 240-day turn’ means a return that satisfies the require- SEC. 712. PAYMENT OF TAXES IN THE CONDUCT period; plus 90 days.’’; and ments of applicable nonbankruptcy law (includ- OF BUSINESS. ing applicable filing requirements). Such term (2) by adding at the end the following: (a) PAYMENT OF TAXES REQUIRED.—Section includes a return prepared pursuant to section ‘‘(H) An otherwise applicable time period 960 of title 28, United States Code, is amended— 6020(a) of the Internal Revenue Code of 1986, or specified in this paragraph shall be suspended (1) by inserting ‘‘(a)’’ before ‘‘Any’’; and for— (2) by adding at the end the following: similar State or local law, or a written stipula- ‘‘(i) any period during which a governmental ‘‘(b) A tax under subsection (a) shall be paid tion to a judgment or a final order entered by a unit is prohibited under applicable nonbank- on or before the due date of the tax under appli- nonbankruptcy tribunal, but does not include a ruptcy law from collecting a tax as a result of cable nonbankruptcy law, unless— return made pursuant to section 6020(b) of the a request by the debtor for a hearing and an ap- ‘‘(1) the tax is a property tax secured by a lien Internal Revenue Code of 1986, or a similar peal of any collection action taken or proposed against property that is abandoned within a State or local law.’’. against the debtor; plus reasonable period of time after the lien attaches SEC. 715. DISCHARGE OF THE ESTATE’S LIABILITY ‘‘(ii) 90 days.’’. by the trustee of a bankruptcy estate under sec- FOR UNPAID TAXES. SEC. 706. PRIORITY PROPERTY TAXES INCURRED. tion 554 of title 11; or The second sentence of section 505(b) of title Section 507(a)(9)(B) of title 11, United States ‘‘(2) payment of the tax is excused under a 11, United States Code, as amended by section Code, is amended by striking ‘‘assessed’’ and in- specific provision of title 11. 703 of this Act, is amended by inserting ‘‘the es- serting ‘‘incurred’’. ‘‘(c) In a case pending under chapter 7 of title tate,’’ after ‘‘misrepresentation,’’. SEC. 707. NO DISCHARGE OF FRAUDULENT TAXES 11, payment of a tax may be deferred until final SEC. 716. REQUIREMENT TO FILE TAX RETURNS IN CHAPTER 13. distribution is made under section 726 of title 11, TO CONFIRM CHAPTER 13 PLANS. Section 1328(a)(2) of title 11, United States if— (a) FILING OF PREPETITION TAX RETURNS RE- Code, as amended by sections 105, 213, and 314 ‘‘(1) the tax was not incurred by a trustee QUIRED FOR PLAN CONFIRMATION.—Section of this Act, is amended— duly appointed under chapter 7 of title 11; or 1325(a) of title 11, United States Code, as (1) by inserting ‘‘(1)(B), (1)(C),’’ after ‘‘para- ‘‘(2) before the due date of the tax, an order amended by section 213 of this Act, is amended— graph’’; and of the court makes a finding of probable insuffi- (1) in paragraph (6), by striking ‘‘and’’ at the (2) by inserting ‘‘and in section 507(a)(8)(C)’’ ciency of funds of the estate to pay in full the end; after ‘‘section 523(a)’’. administrative expenses allowed under section (2) in paragraph (7), by striking the period at 503(b) of title 11 that have the same priority in SEC. 708. NO DISCHARGE OF FRAUDULENT TAXES the end and inserting ‘‘; and’’; and IN CHAPTER 11. distribution under section 726(b) of title 11 as (3) by inserting after paragraph (7) the fol- the priority of that tax.’’. Section 1141(d) of title 11, United States Code, lowing: (b) PAYMENT OF AD VALOREM TAXES RE- is amended by adding at the end the following: ‘‘(8) if the debtor has filed all applicable Fed- QUIRED.—Section 503(b)(1)(B)(i) of title 11, ‘‘(5) Notwithstanding paragraph (1), the con- eral, State, and local tax returns as required by United States Code, is amended by inserting firmation of a plan does not discharge a debtor section 1308.’’. ‘‘whether secured or unsecured, including prop- that is a corporation from any debt for a tax or (b) ADDITIONAL TIME PERMITTED FOR FILING erty taxes for which liability is in rem, in per- customs duty with respect to which the debtor— TAX RETURNS.— sonam, or both,’’ before ‘‘except’’. ‘‘(A) made a fraudulent return; or (1) IN GENERAL.—Chapter 13 of title 11, United (c) REQUEST FOR PAYMENT OF ADMINISTRA- ‘‘(B) willfully attempted in any manner to States Code, is amended by adding at the end TIVE EXPENSE TAXES ELIMINATED.—Section evade or defeat that tax or duty.’’. the following: 503(b)(1) of title 11, United States Code, is ‘‘§ 1308. Filing of prepetition tax returns SEC. 709. STAY OF TAX PROCEEDINGS LIMITED TO amended— PREPETITION TAXES. (1) in subparagraph (B), by striking ‘‘and’’ at ‘‘(a) Not later than the day before the date on Section 362(a)(8) of title 11, United States the end; which the meeting of the creditors is first sched- Code, is amended by inserting ‘‘, with respect to (2) in subparagraph (C), by adding ‘‘and’’ at uled to be held under section 341(a), the debtor a tax liability for a taxable period ending before the end; and shall file with appropriate tax authorities all the order for relief under this title’’ before the (3) by adding at the end the following: tax returns for all taxable periods ending during semicolon at the end. ‘‘(D) notwithstanding the requirements of sub- the 4-year period ending on the date of the fil- SEC. 710. PERIODIC PAYMENT OF TAXES IN CHAP- section (a), a governmental unit shall not be re- ing of the petition. TER 11 CASES. quired to file a request for the payment of an ex- ‘‘(b)(1) Subject to paragraph (2), if the tax re- Section 1129(a)(9) of title 11, United States pense described in subparagraph (B) or (C), as turns required by subsection (a) have not been Code, is amended— a condition of its being an allowed administra- filed by the date on which the meeting of credi- (1) in subparagraph (B), by striking ‘‘and’’ at tive expense;’’. tors is first scheduled to be held under section the end; (d) PAYMENT OF TAXES AND FEES AS SECURED 341(a), the trustee may hold open that meeting (2) in subparagraph (C), by striking ‘‘deferred CLAIMS.—Section 506 of title 11, United States for a reasonable period of time to allow the debt- cash payments, over a period not exceeding six Code, is amended— or an additional period of time to file any

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00071 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S416 CONGRESSIONAL RECORD — SENATE February 7, 2000 unfiled returns, but such additional period of SEC. 717. STANDARDS FOR TAX DISCLOSURE. any gain or loss resulting from a distribution of time shall not extend beyond— Section 1125(a)(1) of title 11, United States property from such partnership, or any distribu- ‘‘(A) for any return that is past due as of the Code, is amended— tive share of any income, gain, loss, deduction, date of the filing of the petition, the date that (1) by inserting ‘‘including a discussion of the or credit of a partner or member that is distrib- is 120 days after the date of that meeting; or potential material Federal tax consequences of uted, or considered distributed, from such part- ‘‘(B) for any return that is not past due as of the plan to the debtor, any successor to the nership, after the commencement of the case, is the date of the filing of the petition, the later debtor, and a hypothetical investor typical of gain, loss, income, deduction, or credit, as the of— the holders of claims or interests in the case,’’ case may be, of the partner or member, and if ‘‘(i) the date that is 120 days after the date of after ‘‘records’’; and such partner or member is a debtor in a case that meeting; or (2) by striking ‘‘a hypothetical reasonable in- under this title, shall be subject to tax in ac- ‘‘(ii) the date on which the return is due vestor typical of holders of claims or interests’’ cordance with subsection (a) or (b). under the last automatic extension of time for and inserting ‘‘such a hypothetical investor’’. ‘‘(d) For purposes of any State or local law filing that return to which the debtor is entitled, imposing a tax on or measured by income, the SEC. 718. SETOFF OF TAX REFUNDS. and for which request is timely made, in accord- taxable period of a debtor in a case under this Section 362(b) of title 11, United States Code, ance with applicable nonbankruptcy law. title shall terminate only if and to the extent as amended by section 402 of this Act, is amend- ‘‘(2) Upon notice and hearing, and order en- that the taxable period of such debtor termi- ed— tered before the tolling of any applicable filing nates under the Internal Revenue Code of 1986. period determined under this subsection, if the (1) in paragraph (25), by striking ‘‘or’’ at the ‘‘(e) The estate in any case described in sub- debtor demonstrates by clear and convincing end; section (a) shall use the same accounting meth- evidence that the failure to file a return as re- (2) in paragraph (26), by striking the period at od as the debtor used immediately before the quired under this subsection is attributable to the end and inserting ‘‘; or’’; and commencement of the case, if such method of ac- circumstances beyond the control of the debtor, (3) by inserting after paragraph (26) the fol- counting complies with applicable nonbank- the court may extend the filing period estab- lowing: ruptcy tax law. lished by the trustee under this subsection for— ‘‘(27) under subsection (a), of the setoff under ‘‘(f) For purposes of any State or local law im- ‘‘(A) a period of not more than 30 days for re- applicable nonbankruptcy law of an income tax posing a tax on or measured by income, a trans- turns described in paragraph (1); and refund, by a governmental unit, with respect to fer of property from the debtor to the estate or ‘‘(B) a period not to extend after the applica- a taxable period that ended before the order for from the estate to the debtor shall not be treated ble extended due date for a return described in relief against an income tax liability for a tax- as a disposition for purposes of any provision paragraph (2). able period that also ended before the order for assigning tax consequences to a disposition, ex- ‘‘(c) For purposes of this section, the term ‘re- relief, except that in any case in which the cept to the extent that such transfer is treated turn’ includes a return prepared pursuant to setoff of an income tax refund is not permitted as a disposition under the Internal Revenue section 6020 (a) or (b) of the Internal Revenue under applicable nonbankruptcy law because of Code of 1986. Code of 1986, or a similar State or local law, or a pending action to determine the amount or le- ‘‘(g) Whenever a tax is imposed pursuant to a a written stipulation to a judgment or a final gality of a tax liability, the governmental unit State or local law imposing a tax on or meas- order entered by a nonbankruptcy tribunal.’’. may hold the refund pending the resolution of ured by income pursuant to subsection (a) or (2) CONFORMING AMENDMENT.—The table of the action, unless the court, upon motion of the (b), such tax shall be imposed at rates generally sections for chapter 13 of title 11, United States trustee and after notice and hearing, grants the applicable to the same types of entities under Code, is amended by inserting after the item re- taxing authority adequate protection (within such State or local law. lating to section 1307 the following: the meaning of section 361) for the secured claim ‘‘(h) The trustee shall withhold from any pay- ‘‘1308. Filing of prepetition tax returns.’’. of that authority in the setoff under section ment of claims for wages, salaries, commissions, 506(a).’’. dividends, interest, or other payments, or col- (c) DISMISSAL OR CONVERSION ON FAILURE TO lect, any amount required to be withheld or col- COMPLY.—Section 1307 of title 11, United States SEC. 719. SPECIAL PROVISIONS RELATED TO THE TREATMENT OF STATE AND LOCAL lected under applicable State or local tax law, Code, is amended— and shall pay such withheld or collected (1) by redesignating subsections (e) and (f) as TAXES. (a) IN GENERAL.—Section 346 of title 11, amount to the appropriate governmental unit at subsections (f) and (g), respectively; and the time and in the manner required by such tax (2) by inserting after subsection (d), the fol- United States Code, is amended to read as fol- lows: law, and with the same priority as the claim lowing: from which such amount was withheld or col- ‘‘(e) Upon the failure of the debtor to file a ‘‘SEC. 346. SPECIAL PROVISIONS RELATED TO lected was paid. tax return under section 1308, on request of a THE TREATMENT OF STATE AND LOCAL TAXES. ‘‘(i)(1) To the extent that any State or local party in interest or the United States trustee law imposing a tax on or measured by income and after notice and a hearing, the court shall ‘‘(a) Whenever the Internal Revenue Code of 1986 provides that a separate taxable estate or provides for the carryover of any tax attribute dismiss a case or convert a case under this chap- from one taxable period to a subsequent taxable ter to a case under chapter 7 of this title, which- entity is created in a case concerning a debtor under this title, and the income, gain, loss, de- period, the estate shall succeed to such tax at- ever is in the best interest of the creditors and tribute in any case in which such estate is sub- the estate.’’. ductions, and credits of such estate shall be taxed to or claimed by the estate, a separate tax- ject to tax under subsection (a). (d) TIMELY FILED CLAIMS.—Section 502(b)(9) ‘‘(2) After such a case is closed or dismissed, able estate is also created for purposes of any of title 11, United States Code, is amended by in- the debtor shall succeed to any tax attribute to State and local law imposing a tax on or meas- serting before the period at the end the fol- which the estate succeeded under paragraph (1) ured by income and such income, gain, loss, de- lowing ‘‘, and except that in a case under chap- to the extent consistent with the Internal Rev- ductions, and credits shall be taxed to or ter 13, a claim of a governmental unit for a tax enue Code of 1986. with respect to a return filed under section 1308 claimed by the estate and may not be taxed to ‘‘(3) The estate may carry back any loss or tax shall be timely if the claim is filed on or before or claimed by the debtor. The preceding sen- attribute to a taxable period of the debtor that the date that is 60 days after the date on which tence shall not apply if the case is dismissed. ended before the order for relief under this title such return was filed as required’’. The trustee shall make tax returns of income re- to the extent that— (e) RULES FOR OBJECTIONS TO CLAIMS AND TO quired under any such State or local law. ‘‘(A) applicable State or local tax law provides CONFIRMATION.—It is the sense of Congress that ‘‘(b) Whenever the Internal Revenue Code of for a carryback in the case of the debtor; and the Advisory Committee on Bankruptcy Rules of 1986 provides that no separate taxable estate ‘‘(B) the same or a similar tax attribute may the Judicial Conference should, as soon as prac- shall be created in a case concerning a debtor be carried back by the estate to such a taxable ticable after the date of enactment of this Act, under this title, and the income, gain, loss, de- period of the debtor under the Internal Revenue propose for adoption amended Federal Rules of ductions, and credits of an estate shall be taxed Code of 1986. Bankruptcy Procedure which provide that— to or claimed by the debtor, such income, gain, ‘‘(j)(1) For purposes of any State or local law (1) notwithstanding the provisions of Rule loss, deductions, and credits shall be taxed to or imposing a tax on or measured by income, in- 3015(f), in cases under chapter 13 of title 11, claimed by the debtor under a State or local law come is not realized by the estate, the debtor, or United States Code, an objection to the con- imposing a tax on or measured by income and a successor to the debtor by reason of discharge firmation of a plan filed by a governmental unit may not be taxed to or claimed by the estate. of indebtedness in a case under this title, except on or before the date that is 60 days after the The trustee shall make such tax returns of in- to the extent, if any, that such income is subject date on which the debtor files all tax returns re- come of corporations and of partnerships as are to tax under the Internal Revenue Code of 1986. quired under sections 1308 and 1325(a)(7) of title required under any State or local law, but with ‘‘(2) Whenever the Internal Revenue Code of 11, United States Code, shall be treated for all respect to partnerships, shall make said returns 1986 provides that the amount excluded from purposes as if such objection had been timely only to the extent such returns are also required gross income in respect of the discharge of in- filed before such confirmation; and to be made under such Code. The estate shall be debtedness in a case under this title shall be ap- (2) in addition to the provisions of Rule 3007, liable for any tax imposed on such corporation plied to reduce the tax attributes of the debtor in a case under chapter 13 of title 11, United or partnership, but not for any tax imposed on or the estate, a similar reduction shall be made States Code, no objection to a tax with respect partners or members. under any State or local law imposing a tax on to which a return is required to be filed under ‘‘(c) With respect to a partnership or any enti- or measured by income to the extent such State section 1308 of title 11, United States Code, shall ty treated as a partnership under a State or or local law recognizes such attributes. Such be filed until such return has been filed as re- local law imposing a tax on or measured by in- State or local law may also provide for the re- quired. come that is a debtor in a case under this title, duction of other attributes to the extent that the

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00072 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S417 full amount of income from the discharge of in- ‘‘1520. Effects of recognition of a foreign main ‘‘(1) ‘debtor’ means an entity that is the sub- debtedness has not been applied. proceeding. ject of a foreign proceeding; ‘‘(k)(1) Except as provided in this section and ‘‘1521. Relief that may be granted upon recogni- ‘‘(2) ‘establishment’ means any place of oper- section 505, the time and manner of filing tax re- tion of a foreign proceeding. ations where the debtor carries out a nontransi- turns and the items of income, gain, loss, deduc- ‘‘1522. Protection of creditors and other inter- tory economic activity; tion, and credit of any taxpayer shall be deter- ested persons. ‘‘(3) ‘foreign court’ means a judicial or other mined under applicable nonbankruptcy law. ‘‘1523. Actions to avoid acts detrimental to authority competent to control or supervise a ‘‘(2) For Federal tax purposes, the provisions creditors. foreign proceeding; of this section are subject to the Internal Rev- ‘‘1524. Intervention by a foreign representative. ‘‘(4) ‘foreign main proceeding’ means a foreign enue Code of 1986 and other applicable Federal ‘‘SUBCHAPTER IV—COOPERATION WITH proceeding taking place in the country where nonbankruptcy law.’’. FOREIGN COURTS AND FOREIGN REP- the debtor has the center of its main interests; (b) CONFORMING AMENDMENTS.— RESENTATIVES ‘‘(5) ‘foreign nonmain proceeding’ means a (1) Section 728 of title 11, United States Code, ‘‘1525. Cooperation and direct communication foreign proceeding, other than a foreign main is repealed. between the court and foreign proceeding, taking place in a country where the (2) Section 1146 of title 11, United States Code, courts or foreign representatives. debtor has an establishment; is amended by striking subsections (a) and (b) ‘‘1526. Cooperation and direct communication ‘‘(6) ‘trustee’ includes a trustee, a debtor in and by redesignating subsections (c) and (d) as between the trustee and foreign possession in a case under any chapter of this subsections (a) and (b), respectively. courts or foreign representatives. title, or a debtor under chapter 9 of this title; (3) Section 1231 of title 11, United States Code, ‘‘1527. Forms of cooperation. and is amended by striking subsections (a) and (b) ‘‘SUBCHAPTER V—CONCURRENT ‘‘(7) ‘within the territorial jurisdiction of the and by redesignating subsections (c) and (d) as PROCEEDINGS United States’ when used with reference to subsections (a) and (b), respectively. property of a debtor refers to tangible property ‘‘1528. Commencement of a case under this title located within the territory of the United States SEC. 720. DISMISSAL FOR FAILURE TO TIMELY after recognition of a foreign and intangible property deemed under applica- FILE TAX RETURNS. main proceeding. ble nonbankruptcy law to be located within that Section 521 of title 11, United States Code, as ‘‘1529. Coordination of a case under this title territory, including any property subject to at- amended by this Act, is amended by adding at and a foreign proceeding. tachment or garnishment that may properly be the end the following: ‘‘1530. Coordination of more than 1 foreign pro- seized or garnished by an action in a Federal or ‘‘(k)(1) Notwithstanding any other provision ceeding. State court in the United States. of this title, if the debtor fails to file a tax re- ‘‘1531. Presumption of insolvency based on rec- turn that becomes due after the commencement ognition of a foreign main pro- ‘‘§ 1503. International obligations of the of the case or to properly obtain an extension of ceeding. United States the due date for filing such return, the taxing ‘‘1532. Rule of payment in concurrent pro- ‘‘To the extent that this chapter conflicts with authority may request that the court enter an ceedings. an obligation of the United States arising out of order converting or dismissing the case. ‘‘§ 1501. Purpose and scope of application any treaty or other form of agreement to which ‘‘(2) If the debtor does not file the required re- ‘‘(a) The purpose of this chapter is to incor- it is a party with 1 or more other countries, the turn or obtain the extension referred to in para- porate the Model Law on Cross-Border Insol- requirements of the treaty or agreement prevail. graph (1) within 90 days after a request is filed vency so as to provide effective mechanisms for ‘‘§ 1504. Commencement of ancillary case by the taxing authority under that paragraph, dealing with cases of cross-border insolvency ‘‘A case under this chapter is commenced by the court shall convert or dismiss the case, with the objectives of— the filing of a petition for recognition of a for- whichever is in the best interests of creditors ‘‘(1) cooperation between— eign proceeding under section 1515. and the estate.’’. ‘‘(A) United States courts, United States ‘‘§ 1505. Authorization to act in a foreign Trustees, trustees, examiners, debtors, and debt- TITLE VIII—ANCILLARY AND OTHER country CROSS-BORDER CASES ors in possession; and ‘‘(B) the courts and other competent authori- ‘‘A trustee or another entity, including an ex- SEC. 801. AMENDMENT TO ADD CHAPTER 15 TO ties of foreign countries involved in cross-border aminer, may be authorized by the court to act in TITLE 11, UNITED STATES CODE. insolvency cases; a foreign country on behalf of an estate created (a) IN GENERAL.—Title 11, United States Code, ‘‘(2) greater legal certainty for trade and in- under section 541. An entity authorized to act is amended by inserting after chapter 13 the fol- vestment; under this section may act in any way permitted lowing: ‘‘(3) fair and efficient administration of cross- by the applicable foreign law. ‘‘CHAPTER 15—ANCILLARY AND OTHER border insolvencies that protects the interests of ‘‘§ 1506. Public policy exception CROSS-BORDER CASES all creditors, and other interested entities, in- ‘‘Nothing in this chapter prevents the court ‘‘Sec. cluding the debtor; from refusing to take an action governed by this ‘‘1501. Purpose and scope of application. ‘‘(4) protection and maximization of the value chapter if the action would be manifestly con- of the debtor’s assets; and trary to the public policy of the United States. ‘‘SUBCHAPTER I—GENERAL PROVISIONS ‘‘(5) facilitation of the rescue of financially ‘‘1502. Definitions. troubled businesses, thereby protecting invest- ‘‘§ 1507. Additional assistance ‘‘1503. International obligations of the United ment and preserving employment. ‘‘(a) Subject to the specific limitations under States. ‘‘(b) This chapter applies if— other provisions of this chapter, the court, upon ‘‘1504. Commencement of ancillary case. ‘‘(1) assistance is sought in the United States recognition of a foreign proceeding, may provide ‘‘1505. Authorization to act in a foreign coun- by a foreign court or a foreign representative in additional assistance to a foreign representative try. connection with a foreign proceeding; under this title or under other laws of the ‘‘1506. Public policy exception. ‘‘(2) assistance is sought in a foreign country United States. ‘‘1507. Additional assistance. in connection with a case under this title; ‘‘(b) In determining whether to provide addi- ‘‘1508. Interpretation. ‘‘(3) a foreign proceeding and a case under tional assistance under this title or under other ‘‘SUBCHAPTER II—ACCESS OF FOREIGN this title with respect to the same debtor are tak- laws of the United States, the court shall con- REPRESENTATIVES AND CREDITORS TO ing place concurrently; or sider whether such additional assistance, con- ‘‘(4) creditors or other interested persons in a THE COURT sistent with the principles of comity, will rea- foreign country have an interest in requesting sonably assure— ‘‘1509. Right of direct access. the commencement of, or participating in, a case ‘‘(1) just treatment of all holders of claims ‘‘1510. Limited jurisdiction. or proceeding under this title. against or interests in the debtor’s property; ‘‘1511. Commencement of case under section 301 ‘‘(c) This chapter does not apply to— ‘‘(2) protection of claim holders in the United or 303. ‘‘(1) a proceeding concerning an entity identi- States against prejudice and inconvenience in ‘‘1512. Participation of a foreign representative fied by exclusion in subsection 109(b); the processing of claims in such foreign pro- in a case under this title. ‘‘(2) an individual, or to an individual and ceeding; ‘‘1513. Access of foreign creditors to a case such individual’s spouse, who have debts within ‘‘(3) prevention of preferential or fraudulent under this title. the limits specified in section 109(e) and who are dispositions of property of the debtor; ‘‘1514. Notification to foreign creditors con- citizens of the United States or aliens lawfully ‘‘(4) distribution of proceeds of the debtor’s cerning a case under this title. admitted for permanent residence in the United property substantially in accordance with the ‘‘SUBCHAPTER III—RECOGNITION OF A States; or order prescribed by this title; and FOREIGN PROCEEDING AND RELIEF ‘‘(3) an entity subject to a proceeding under ‘‘(5) if appropriate, the provision of an oppor- the Securities Investor Protection Act of 1970 (84 ‘‘1515. Application for recognition of a foreign tunity for a fresh start for the individual that Stat. 1636 et seq.), a stockbroker subject to sub- proceeding. such foreign proceeding concerns. chapter III of chapter 7 of this title, or a com- ‘‘1516. Presumptions concerning recognition. ‘‘§ 1508. Interpretation modity broker subject to subchapter IV of chap- ‘‘1517. Order recognizing a foreign proceeding. ‘‘In interpreting this chapter, the court shall ter 7 of this title. ‘‘1518. Subsequent information. consider its international origin, and the need ‘‘1519. Relief that may be granted upon petition ‘‘SUBCHAPTER I—GENERAL PROVISIONS to promote an application of this chapter that is for recognition of a foreign pro- ‘‘§ 1502. Definitions consistent with the application of similar stat- ceeding. ‘‘For the purposes of this chapter, the term— utes adopted by foreign jurisdictions.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00073 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S418 CONGRESSIONAL RECORD — SENATE February 7, 2000 ‘‘SUBCHAPTER II—ACCESS OF FOREIGN class or category of creditors, such notice shall ‘‘(3) the petition meets the requirements of sec- REPRESENTATIVES AND CREDITORS TO also be given to the known creditors generally, tion 1515. THE COURT or to creditors in the notified class or category, ‘‘(b) The foreign proceeding shall be recog- ‘‘§ 1509. Right of direct access that do not have addresses in the United States. nized— ‘‘(a) A foreign representative is entitled to The court may order that appropriate steps be ‘‘(1) as a foreign main proceeding if it is tak- commence a case under section 1504 by filing a taken with a view to notifying any creditor ing place in the country where the debtor has petition for recognition under section 1515, and whose address is not yet known. the center of its main interests; or upon recognition, to apply directly to other Fed- ‘‘(b) Such notification to creditors with for- ‘‘(2) as a foreign nonmain proceeding if the eral and State courts for appropriate relief in eign addresses described in subsection (a) shall debtor has an establishment within the meaning those courts. be given individually, unless the court considers of section 1502 in the foreign country where the ‘‘(b) Upon recognition, and subject to section that, under the circumstances, some other form proceeding is pending. 1510, a foreign representative shall have the ca- of notification would be more appropriate. No ‘‘(c) A petition for recognition of a foreign pacity to sue and be sued, and shall be subject letters rogatory or other similar formality is re- proceeding shall be decided upon at the earliest to the laws of the United States of general ap- quired. possible time. Entry of an order recognizing a plicability. ‘‘(c) When a notification of commencement of foreign proceeding shall constitute recognition ‘‘(c) Subject to section 1510, a foreign rep- a case is to be given to foreign creditors, the no- under this chapter. resentative is subject to laws of general applica- tification shall— ‘‘(d) The provisions of this subchapter do not tion. ‘‘(1) indicate the time period for filing proofs prevent modification or termination of recogni- ‘‘(d) Recognition under this chapter is pre- of claim and specify the place for their filing; tion if it is shown that the grounds for granting requisite to the granting of comity or coopera- ‘‘(2) indicate whether secured creditors need it were fully or partially lacking or have ceased tion to a foreign representative in any Federal to file their proofs of claim; and to exist, but in considering such action the court or State court in the United States. Any request ‘‘(3) contain any other information required to shall give due weight to possible prejudice to for comity or cooperation by a foreign represent- be included in such a notification to creditors parties that have relied upon the granting of ative in any court shall be accompanied by a pursuant to this title and the orders of the recognition. The case under this chapter may be sworn statement setting forth whether recogni- court. closed in the manner prescribed for a case under tion under section 1515 has been sought and the ‘‘(d) Any rule of procedure or order of the section 350. status of any such petition. court as to notice or the filing of a claim shall ‘‘(e) Upon denial of recognition under this provide such additional time to creditors with ‘‘§ 1518. Subsequent information chapter, the court may issue appropriate orders foreign addresses as is reasonable under the cir- ‘‘After the petition for recognition of the for- necessary to prevent an attempt to obtain com- cumstances. eign proceeding is filed, the foreign representa- ity or cooperation from courts in the United ‘‘SUBCHAPTER III—RECOGNITION OF A tive shall file with the court promptly a notice States without such recognition. FOREIGN PROCEEDING AND RELIEF of change of status concerning— ‘‘§ 1510. Limited jurisdiction ‘‘(1) any substantial change in the status of ‘‘§ 1515. Application for recognition of a for- the foreign proceeding or the status of the for- ‘‘The sole fact that a foreign representative eign proceeding eign representative’s appointment; and files a petition under section 1515 does not sub- ‘‘(a) A foreign representative applies to the ‘‘(2) any other foreign proceeding regarding ject the foreign representative to the jurisdiction court for recognition of the foreign proceeding the debtor that becomes known to the foreign of any court in the United States for any other in which the foreign representative has been ap- representative. purpose. pointed by filing a petition for recognition. ‘‘§ 1511. Commencement of case under section ‘‘(b) A petition for recognition shall be accom- ‘‘§ 1519. Relief that may be granted upon peti- 301 or 303 panied by— tion for recognition of a foreign proceeding ‘‘(a) Upon recognition, a foreign representa- ‘‘(1) a certified copy of the decision com- ‘‘(a) Beginning on the date on which a peti- tive may commence— mencing the foreign proceeding and appointing tion for recognition is filed and ending on the ‘‘(1) an involuntary case under section 303; or the foreign representative; date on which the petition is decided upon, the ‘‘(2) a voluntary case under section 301 or 302, ‘‘(2) a certificate from the foreign court af- court may, at the request of the foreign rep- if the foreign proceeding is a foreign main pro- firming the existence of the foreign proceeding resentative, where relief is urgently needed to ceeding. and of the appointment of the foreign represent- protect the assets of the debtor or the interests ‘‘(b) The petition commencing a case under ative; or of the creditors, grant relief of a provisional na- subsection (a) must be accompanied by a state- ‘‘(3) in the absence of evidence referred to in ture, including— ment describing the petition for recognition and paragraphs (1) and (2), any other evidence ac- ‘‘(1) staying execution against the debtor’s as- its current status. The court where the petition ceptable to the court of the existence of the for- sets; for recognition has been filed must be advised of eign proceeding and of the appointment of the ‘‘(2) entrusting the administration or realiza- the foreign representative’s intent to commence foreign representative. tion of all or part of the debtor’s assets located a case under subsection (a) prior to such com- ‘‘(c) A petition for recognition shall also be in the United States to the foreign representa- mencement. accompanied by a statement identifying all for- tive or another person authorized by the court, ‘‘§ 1512. Participation of a foreign representa- eign proceedings with respect to the debtor that including an examiner, in order to protect and tive in a case under this title are known to the foreign representative. preserve the value of assets that, by their nature ‘‘Upon recognition of a foreign proceeding, ‘‘(d) The documents referred to in paragraphs or because of other circumstances, are perish- the foreign representative in that proceeding is (1) and (2) of subsection (b) must be translated able, susceptible to devaluation, or otherwise in entitled to participate as a party in interest in into English. The court may require a trans- jeopardy; and a case regarding the debtor under this title. lation into English of additional documents. ‘‘(3) any relief referred to in paragraph (3), ‘‘§ 1513. Access of foreign creditors to a case ‘‘§ 1516. Presumptions concerning recognition (4), or (7) of section 1521(a). under this title ‘‘(a) If the decision or certificate referred to in ‘‘(b) Unless extended under section 1521(a)(6), ‘‘(a) Foreign creditors have the same rights re- section 1515(b) indicates that the foreign pro- the relief granted under this section terminates garding the commencement of, and participation ceeding is a foreign proceeding as defined in when the petition for recognition is decided in, a case under this title as domestic creditors. section 101 and that the person or body is a for- upon. ‘‘(b)(1) Subsection (a) does not change or cod- eign representative as defined in section 101, the ‘‘(c) It is a ground for denial of relief under ify law in effect on the date of enactment of this court is entitled to so presume. this section that such relief would interfere with chapter as to the priority of claims under sec- ‘‘(b) The court is entitled to presume that doc- the administration of a foreign main proceeding. tion 507 or 726, except that the claim of a foreign uments submitted in support of the petition for ‘‘(d) The court may not enjoin a police or reg- creditor under section 507 or 726 shall not be recognition are authentic, whether or not they ulatory act of a governmental unit, including a given a lower priority than that of general unse- have been legalized. criminal action or proceeding, under this sec- cured claims without priority solely because the ‘‘(c) In the absence of evidence to the con- tion. holder of such claim is a foreign creditor. trary, the debtor’s registered office, or habitual ‘‘(e) The standards, procedures, and limita- ‘‘(2)(A) Subsection (a) and paragraph (1) do residence in the case of an individual, is pre- tions applicable to an injunction shall apply to not change or codify law in effect on the date of sumed to be the center of the debtor’s main in- relief under this section. enactment of this chapter as to the allowability terests. ‘‘§ 1520. Effects of recognition of a foreign of foreign revenue claims or other foreign public ‘‘§ 1517. Order recognizing a foreign pro- main proceeding law claims in a proceeding under this title. ceeding ‘‘(a) Upon recognition of a foreign proceeding ‘‘(B) Allowance and priority as to a foreign ‘‘(a) Subject to section 1506, after notice and that is a foreign main proceeding— tax claim or other foreign public law claim shall a hearing an order recognizing a foreign pro- ‘‘(1) section 362 applies with respect to the be governed by any applicable tax treaty of the ceeding shall be entered if— debtor and that property of the debtor that is United States, under the conditions and cir- ‘‘(1) the foreign proceeding is a foreign main within the territorial jurisdiction of the United cumstances specified therein. proceeding or foreign nonmain proceeding with- States; ‘‘§ 1514. Notification to foreign creditors con- in the meaning of section 1502; ‘‘(2) a transfer, an encumbrance, or any other cerning a case under this title ‘‘(2) the foreign representative applying for disposition of an interest of the debtor in prop- ‘‘(a) Whenever in a case under this title notice recognition is a person or body as defined in erty within the territorial jurisdiction of the is to be given to creditors generally or to any section 101; and United States is restrained as and to the extent

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00074 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S419 that is provided for property of an estate under under subsection (c), only if the interests of the ‘‘SUBCHAPTER V—CONCURRENT sections 363, 549, and 552; and creditors and other interested entities, including PROCEEDINGS ‘‘(3) unless the court orders otherwise, the for- the debtor, are sufficiently protected. ‘‘§ 1528. Commencement of a case under this eign representative may operate the debtor’s ‘‘(b) The court may subject relief granted title after recognition of a foreign main pro- business and may exercise the powers of a trust- under section 1519 or 1521, or the operation of ceeding ee under section 549, subject to sections 363 and the debtor’s business under section 1520(a)(2), to ‘‘After recognition of a foreign main pro- 552. conditions that the court considers to be appro- ceeding, a case under another chapter of this ‘‘(b) The scope, and the modification or termi- priate, including the giving of security or the title may be commenced only if the debtor has nation, of the stay and restraints referred to in filing of a bond. subsection (a) are subject to the exceptions and assets in the United States. The effects of such ‘‘(c) The court may, at the request of the for- limitations provided in subsections (b), (c), and case shall be restricted to the assets of the debt- eign representative or an entity affected by re- (d) of section 362, subsections (b) and (c) of sec- or that are within the territorial jurisdiction of lief granted under section 1519 or 1521, or at its tion 363, and sections 552, 555 through 557, 559, the United States and, to the extent necessary to own motion, modify or terminate the relief re- and 560. implement cooperation and coordination under ferred to in subsection (b). ‘‘(c) Subsection (a) does not affect the right to sections 1525, 1526, and 1527, to other assets of commence individual actions or proceedings in a ‘‘(d) Section 1104(d) shall apply to the ap- the debtor that are within the jurisdiction of the foreign country to the extent necessary to pre- pointment of an examiner under this chapter. court under sections 541(a), and 1334(e) of title serve a claim against the debtor. Any examiner shall comply with the qualifica- 28, to the extent that such other assets are not ‘‘(d) Subsection (a) does not affect the right of tion requirements imposed on a trustee by sec- subject to the jurisdiction and control of a for- a foreign representative or an entity to file a pe- tion 322. eign proceeding that has been recognized under tition commencing a case under this title or the ‘‘§ 1523. Actions to avoid acts detrimental to this chapter. right of any party to file claims or take other creditors ‘‘§ 1529. Coordination of a case under this title proper actions in such a case. ‘‘(a) Upon recognition of a foreign proceeding, and a foreign proceeding ‘‘§ 1521. Relief that may be granted upon rec- the foreign representative has standing in a case ‘‘In any case in which a foreign proceeding ognition of a foreign proceeding concerning the debtor pending under another and a case under another chapter of this title ‘‘(a) Upon recognition of a foreign proceeding, chapter of this title to initiate actions under sec- are taking place concurrently regarding the whether main or nonmain, where necessary to tions 522, 544, 545, 547, 548, 550, and 724(a). same debtor, the court shall seek cooperation effectuate the purpose of this chapter and to ‘‘(b) In any case in which the foreign pro- and coordination under sections 1525, 1526, and protect the assets of the debtor or the interests ceeding is a foreign nonmain proceeding, the 1527, and the following shall apply: of the creditors, the court may, at the request of court must be satisfied that an action under ‘‘(1) If the case in the United States is taking the foreign representative, grant any appro- subsection (a) relates to assets that, under place at the time the petition for recognition of priate relief, including— United States law, should be administered in the the foreign proceeding is filed— ‘‘(1) staying the commencement or continu- foreign nonmain proceeding. ‘‘(A) any relief granted under sections 1519 or ation of individual actions or individual pro- 1521 must be consistent with the relief granted ceedings concerning the debtor’s assets, rights, ‘‘§ 1524. Intervention by a foreign representa- in the case in the United States; and obligations or liabilities to the extent the actions tive ‘‘(B) even if the foreign proceeding is recog- or proceedings have not been stayed under sec- ‘‘Upon recognition of a foreign proceeding, nized as a foreign main proceeding, section 1520 tion 1520(a); the foreign representative may intervene in any does not apply. ‘‘(2) staying execution against the debtor’s as- proceedings in a State or Federal court in the ‘‘(2) If a case in the United States under this sets to the extent the execution has not been United States in which the debtor is a party. stayed under section 1520(a); title commences after recognition, or after the ‘‘(3) suspending the right to transfer, encum- ‘‘SUBCHAPTER IV—COOPERATION WITH filing of the petition for recognition, of the for- ber or otherwise dispose of any assets of the FOREIGN COURTS AND FOREIGN REP- eign proceeding— debtor to the extent that right has not been sus- RESENTATIVES ‘‘(A) any relief in effect under sections 1519 or pended under section 1520(a); ‘‘§ 1525. Cooperation and direct communica- 1521 shall be reviewed by the court and shall be ‘‘(4) providing for the examination of wit- tion between the court and foreign courts or modified or terminated if inconsistent with the nesses, the taking of evidence or the delivery of foreign representatives case in the United States; and information concerning the debtor’s assets, af- ‘‘(B) if the foreign proceeding is a foreign ‘‘(a) Consistent with section 1501, the court fairs, rights, obligations or liabilities; main proceeding, the stay and suspension re- shall cooperate to the maximum extent possible ‘‘(5) entrusting the administration or realiza- ferred to in section 1520(a) shall be modified or with foreign courts or foreign representatives, tion of all or part of the debtor’s assets within terminated if inconsistent with the relief grant- either directly or through the trustee. the territorial jurisdiction of the United States ed in the case in the United States. to the foreign representative or another person, ‘‘(b) The court is entitled to communicate di- ‘‘(3) In granting, extending, or modifying re- including an examiner, authorized by the court; rectly with, or to request information or assist- lief granted to a representative of a foreign ‘‘(6) extending relief granted under section ance directly from, foreign courts or foreign rep- nonmain proceeding, the court must be satisfied 1519(a); and resentatives, subject to the rights of parties in that the relief relates to assets that, under the ‘‘(7) granting any additional relief that may interest to notice and participation. law of the United States, should be administered be available to a trustee, except for relief avail- ‘‘§ 1526. Cooperation and direct communica- in the foreign nonmain proceeding or concerns able under sections 522, 544, 545, 547, 548, 550, tion between the trustee and foreign courts information required in that proceeding. and 724(a). or foreign representatives ‘‘(4) In achieving cooperation and coordina- ‘‘(b) Upon recognition of a foreign proceeding, tion under sections 1528 and 1529, the court may whether main or nonmain, the court may, at the ‘‘(a) Consistent with section 1501, the trustee or other person, including an examiner, author- grant any of the relief authorized under section request of the foreign representative, entrust the 305. distribution of all or part of the debtor’s assets ized by the court, shall, subject to the super- located in the United States to the foreign rep- vision of the court, cooperate to the maximum ‘‘§ 1530. Coordination of more than 1 foreign resentative or another person, including an ex- extent possible with foreign courts or foreign proceeding aminer, authorized by the court, if the court is representatives. ‘‘In matters referred to in section 1501, with satisfied that the interests of creditors in the ‘‘(b) The trustee or other person, including an respect to more than 1 foreign proceeding re- United States are sufficiently protected. examiner, authorized by the court is entitled, garding the debtor, the court shall seek coopera- ‘‘(c) In granting relief under this section to a subject to the supervision of the court, to com- tion and coordination under sections 1525, 1526, representative of a foreign nonmain proceeding, municate directly with foreign courts or foreign and 1527, and the following shall apply: the court must be satisfied that the relief relates representatives. ‘‘(1) Any relief granted under section 1519 or to assets that, under the law of the United ‘‘§ 1527. Forms of cooperation 1521 to a representative of a foreign nonmain States, should be administered in the foreign proceeding after recognition of a foreign main ‘‘Cooperation referred to in sections 1525 and nonmain proceeding or concerns information re- proceeding must be consistent with the foreign 1526 may be implemented by any appropriate quired in that proceeding. main proceeding. means, including— ‘‘(d) The court may not enjoin a police or reg- ‘‘(2) If a foreign main proceeding is recognized ulatory act of a governmental unit, including a ‘‘(1) appointment of a person or body, includ- after recognition, or after the filing of a petition criminal action or proceeding, under this sec- ing an examiner, to act at the direction of the for recognition, of a foreign nonmain pro- tion. court; ceeding, any relief in effect under section 1519 ‘‘(e) The standards, procedures, and limita- ‘‘(2) communication of information by any or 1521 shall be reviewed by the court and shall tions applicable to an injunction shall apply to means considered appropriate by the court; be modified or terminated if inconsistent with relief under paragraphs (1), (2), (3), and (6) of ‘‘(3) coordination of the administration and the foreign main proceeding. subsection (a). supervision of the debtor’s assets and affairs; ‘‘(3) If, after recognition of a foreign nonmain ‘‘§ 1522. Protection of creditors and other in- ‘‘(4) approval or implementation of agreements proceeding, another foreign nonmain proceeding terested persons concerning the coordination of proceedings; and is recognized, the court shall grant, modify, or ‘‘(a) The court may grant relief under section ‘‘(5) coordination of concurrent proceedings terminate relief for the purpose of facilitating 1519 or 1521, or may modify or terminate relief regarding the same debtor. coordination of the proceedings.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00075 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S420 CONGRESSIONAL RECORD — SENATE February 7, 2000 ‘‘§ 1531. Presumption of insolvency based on ‘‘(1) the term ‘domestic insurance company’ or an agency of the United States against the recognition of a foreign main proceeding means a domestic insurance company, as such transfer of funds by the transferee of such cer- ‘‘In the absence of evidence to the contrary, term is used in section 109(b)(2); tificate of deposit, eligible bankers’ acceptance, recognition of a foreign main proceeding is for ‘‘(2) the term ‘foreign insurance company’ security, loan, or interest; the purpose of commencing a proceeding under means a foreign insurance company, as such with a simultaneous agreement by such trans- section 303, proof that the debtor is generally term is used in section 109(b)(3); feree to transfer to the transferor thereof a cer- not paying its debts as such debts become due. ‘‘(3) the term ‘United States claimant’ means a tificate of deposit, eligible bankers’ acceptance, ‘‘§ 1532. Rule of payment in concurrent pro- beneficiary of any deposit referred to in sub- security, loan, or interest of the kind described ceedings section (b) or any multibeneficiary trust referred in subclause (I) or (II), at a date certain that is to in subsection (b); not later than 1 year after the date of the trans- ‘‘Without prejudice to secured claims or rights ‘‘(4) the term ‘United States creditor’ means, feror’s transfer or on demand, against the trans- in rem, a creditor who has received payment with respect to a foreign insurance company— fer of funds; with respect to its claim in a foreign proceeding ‘‘(i) a United States claimant; or ‘‘(ii) a combination of agreements or trans- pursuant to a law relating to insolvency may ‘‘(ii) any business entity that operates in the actions referred to in clauses (i) and (iii); not receive a payment for the same claim in a United States and that is a creditor; and ‘‘(iii) an option to enter into an agreement or case under any other chapter of this title re- ‘‘(5) the term ‘United States policyholder’ transaction referred to in clause (i) or (ii); or garding the debtor, so long as the payment to means a holder of an insurance policy issued in ‘‘(iv) a master netting agreement that provides other creditors of the same class is proportion- the United States. for an agreement or transaction referred to in ately less than the payment the creditor has al- ‘‘(b) The court may not grant relief under clause (i), (ii), or (iii), together with all supple- ready received.’’. chapter 15 of this title with respect to any de- ments to such master netting agreement, with- (b) CLERICAL AMENDMENT.—The table of posit, escrow, trust fund, or other security re- out regard to whether such master netting chapters for title 11, United States Code, is quired or permitted under any applicable State agreement provides for an agreement or trans- amended by inserting after the item relating to insurance law or regulation for the benefit of action that is not a repurchase agreement under chapter 13 the following: claim holders in the United States.’’. this subparagraph, except that such master net- ‘‘15. Ancillary and Other Cross-Border ting agreement shall be considered to be a repur- TITLE IX—FINANCIAL CONTRACT Cases ...... 1501’’. chase agreement under this subparagraph only PROVISIONS SEC. 802. AMENDMENTS TO OTHER CHAPTERS IN with respect to each agreement or transaction TITLE 11, UNITED STATES CODE. SEC. 901. BANKRUPTCY CODE AMENDMENTS. under such master netting agreement that is re- (a) APPLICABILITY OF CHAPTERS.—Section 103 (a) DEFINITIONS OF FORWARD CONTRACT, RE- ferred to in clause (i), (ii), or (iii); or of title 11, United States Code, is amended— PURCHASE AGREEMENT, SECURITIES CLEARING ‘‘(v) a security agreement or arrangement, or (1) in subsection (a), by inserting before the AGENCY, SWAP AGREEMENT, COMMODITY CON- other credit enhancement, directly pertaining to period the following: ‘‘, and this chapter, sec- TRACT, AND SECURITIES CONTRACT.—Title 11, a contract referred to in clause (i), (ii), (iii), or tions 307, 304, 555 through 557, 559, and 560 United States Code, is amended— (iv), but not to exceed the actual value of such apply in a case under chapter 15’’; and (1) in section 101— contract on the date of the filing of the petition; (2) by adding at the end the following: (A) in paragraph (25)— and ‘‘(j) Chapter 15 applies only in a case under (i) by striking ‘‘means a contract’’ and insert- ‘‘(B) do not include a repurchase obligation such chapter, except that— ing ‘‘means— under a participation in a commercial mortgage ‘‘(1) sections 1513 and 1514 apply in all cases ‘‘(A) a contract’’; loan;’’; under this title; and (ii) by striking ‘‘, or any combination thereof (C) in paragraph (48) by inserting ‘‘, or ex- ‘‘(2) section 1505 applies to trustees and to any or option thereon;’’ and inserting ‘‘, or any empt from such registration under such section other entity (including an examiner) authorized other similar agreement;’’; and pursuant to an order of the Securities and Ex- by the court under chapter 7, 11, or 12, to debt- (iii) by adding at the end the following: change Commission’’ after ‘‘1934’’; and ors in possession under chapter 11 or 12, and to ‘‘(B) a combination of agreements or trans- (D) by striking paragraph (53B) and inserting debtors under chapter 9 who are authorized to actions referred to in subparagraphs (A) and the following: act under section 1505.’’. (C); ‘‘(53B) ‘swap agreement’— (b) DEFINITIONS.—Paragraphs (23) and (24) of ‘‘(C) an option to enter into an agreement or ‘‘(A) means— section 101 of title 11, United States Code, are transaction referred to in subparagraph (A) or ‘‘(i) an agreement, including the terms and amended to read as follows: (B); conditions incorporated by reference in such ‘‘(23) ‘foreign proceeding’ means a collective ‘‘(D) a master netting agreement that provides agreement, that is— judicial or administrative proceeding in a for- for an agreement or transaction referred to in ‘‘(I) an interest rate swap, option, future, or eign country, including an interim proceeding, subparagraph (A), (B), or (C), together with all forward agreement, including a rate floor, rate pursuant to a law relating to insolvency in supplements to such master netting agreement, cap, rate collar, cross-currency rate swap, and which proceeding the assets and affairs of the without regard to whether such master netting basis swap; debtor are subject to control or supervision by a agreement provides for an agreement or trans- ‘‘(II) a spot, same day-tomorrow, tomorrow- foreign court, for the purpose of reorganization action that is not a forward contract under this next, forward, or other foreign exchange or pre- or liquidation; paragraph, except that such master netting cious metals agreement; ‘‘(24) ‘foreign representative’ means a person agreement shall be considered to be a forward ‘‘(III) a currency swap, option, future, or for- or body, including a person or body appointed contract under this paragraph only with respect ward agreement; on an interim basis, authorized in a foreign pro- ‘‘(IV) an equity index or an equity swap, op- to each agreement or transaction under such ceeding to administer the reorganization or the tion, future, or forward agreement; master netting agreement that is referred to in liquidation of the debtor’s assets or affairs or to ‘‘(V) a debt index or a debt swap, option, fu- subparagraph (A), (B) or (C); or act as a representative of the foreign pro- ture, or forward agreement; ‘‘(E) a security agreement or arrangement, or ceeding;’’. ‘‘(VI) a credit spread or a credit swap, option, other credit enhancement, directly pertaining to (c) AMENDMENTS TO TITLE 28, UNITED STATES future, or forward agreement; or a contract, option, agreement, or transaction re- CODE.— ‘‘(VII) a commodity index or a commodity (1) PROCEDURES.—Section 157(b)(2) of title 28, ferred to in subparagraph (A), (B), (C), or (D), swap, option, future, or forward agreement; United States Code, is amended— but not to exceed the actual value of such con- ‘‘(ii) an agreement or transaction that is simi- (A) in subparagraph (N), by striking ‘‘and’’ at tract, option, agreement, or transaction on the lar to an agreement or transaction referred to in the end; date of the filing of the petition;’’; clause (i) that— (B) in subparagraph (O), by striking the pe- (B) by striking paragraph (47) and inserting ‘‘(I) is currently, or in the future becomes, riod at the end and inserting ‘‘; and’’; and the following: regularly entered into in the swap market (in- (C) by adding at the end the following: ‘‘(47) ‘repurchase agreement’ and ‘reverse re- cluding terms and conditions incorporated by ‘‘(P) recognition of foreign proceedings and purchase agreement’— reference therein); and other matters under chapter 15 of title 11.’’. ‘‘(A) mean— ‘‘(II) is a forward, swap, future, or option on (2) BANKRUPTCY CASES AND PROCEEDINGS.— ‘‘(i) an agreement, including related terms, a rate, currency, commodity, equity security, or Section 1334(c)(1) of title 28, United States Code, which provides for the transfer of— other equity instrument, on a debt security or is amended by striking ‘‘Nothing in’’ and insert- ‘‘(I) a certificate of deposit, mortgage related other debt instrument, or on an economic index ing ‘‘Except with respect to a case under chap- security (as defined in section 3 of the Securities or measure of economic risk or value; ter 15 of title 11, nothing in’’. Exchange Act of 1934), mortgage loan, interest ‘‘(iii) a combination of agreements or trans- (3) DUTIES OF TRUSTEES.—Section 586(a)(3) of in a mortgage related security or mortgage loan, actions referred to in clauses (i) and (ii); title 28, United States Code, is amended by in- eligible bankers’ acceptance, or qualified foreign ‘‘(iv) an option to enter into an agreement or serting ‘‘15,’’ after ‘‘chapter’’. government security (defined for purposes of transaction referred to in this subparagraph; SEC. 803. CLAIMS RELATING TO INSURANCE DE- this paragraph to mean a security that is a di- ‘‘(v) a master netting agreement that provides POSITS IN CASES ANCILLARY TO rect obligation of, or that is fully guaranteed by, for an agreement or transaction referred to in FOREIGN PROCEEDINGS. the central government of a member of the Orga- clause (i), (ii), (iii), or (iv), together with all Section 304 of title 11, United States Code, is nization for Economic Cooperation and Develop- supplements to such master netting agreement amended to read as follows: ment); or and without regard to whether such master net- ‘‘§ 304. Cases ancillary to foreign proceedings ‘‘(II) a security that is a direct obligation of, ting agreement contains an agreement or trans- ‘‘(a) For purposes of this section— or that is fully guaranteed by, the United States action described in any such clause, but only

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00076 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S421 with respect to each agreement or transaction modity contract under this paragraph, except ‘‘(38B) the term ‘master netting agreement referred to in any such clause that is under that such master netting agreement shall be participant’ means an entity that, at any time such master netting agreement; except that considered to be a commodity contract under before the filing of the petition, is a party to an ‘‘(B) the definition under subparagraph (A) is this paragraph only with respect to each agree- outstanding master netting agreement with the applicable for purposes of this title only, and ment or transaction under such master netting debtor;’’. shall not be construed or applied so as to chal- agreement that is referred to in subparagraph (d) SWAP AGREEMENTS, SECURITIES CON- lenge or affect the characterization, definition, (A), (B), (C), (D), (E), (F), (G), or (H); or TRACTS, COMMODITY CONTRACTS, FORWARD or treatment of any swap agreement under any ‘‘(J) a security agreement or arrangement, or CONTRACTS, REPURCHASE AGREEMENTS, AND other statute, regulation, or rule, including the other credit enhancement, directly pertaining to MASTER NETTING AGREEMENTS UNDER THE Securities Act of 1933, the Securities Exchange a contract referred to in this paragraph, but not AUTOMATIC STAY.— Act of 1934, the Public Utility Holding Company to exceed the actual value of such contract on (1) IN GENERAL.—Section 362(b) of title 11, Act of 1935, the Trust Indenture Act of 1939, the the date of the filing of the petition.’’. United States Code, as amended by section 718 Investment Company Act of 1940, the Investment (b) DEFINITIONS OF FINANCIAL INSTITUTION, of this Act, is amended— Advisers Act of 1940, the Securities Investor Pro- FINANCIAL PARTICIPANT, AND FORWARD CON- (A) in paragraph (6), by inserting ‘‘, pledged tection Act of 1970, the Commodity Exchange TRACT MERCHANT.—Section 101 of title 11, to, and under the control of,’’ after ‘‘held by’’; Act, and the regulations prescribed by the Secu- United States Code, as amended by section (B) in paragraph (7), by inserting ‘‘, pledged rities and Exchange Commission or the Com- 802(b) of this Act, is amended— to, and under the control of,’’ after ‘‘held by’’; modity Futures Trading Commission.’’; (1) by striking paragraph (22) and inserting (C) by striking paragraph (17) and inserting (2) in section 741, by striking paragraph (7) the following: the following: and inserting the following: ‘‘(22) ‘financial institution’ means— ‘‘(17) under subsection (a), of the setoff by a ‘‘(7) ‘securities contract’— ‘‘(A)(i) a Federal reserve bank, or an entity swap participant of a mutual debt and claim ‘‘(A) means— that is a commercial or savings bank, industrial under or in connection with a swap agreement ‘‘(i) a contract for the purchase, sale, or loan savings bank, savings and loan association, that constitutes the setoff of a claim against the of a security, a mortgage loan or an interest in trust company, or receiver or conservator for debtor for a payment or transfer due from the a mortgage loan, a group or index of securities, such entity; and debtor under or in connection with a swap or mortgage loans or interests therein (including ‘‘(ii) if such Federal reserve bank, receiver, or agreement against a payment due to the debtor an interest therein or based on the value there- conservator or entity is acting as agent or custo- from the swap participant under or in connec- of), or option on any of the foregoing, including dian for a customer in connection with a securi- tion with a swap agreement or against cash, se- an option to purchase or sell any of the fore- ties contract, as defined in section 741, such cus- curities, or other property held by, pledged to, going; tomer; or and under the control of, or due from such swap ‘‘(ii) an option entered into on a national se- ‘‘(B) in connection with a securities contract, participant to guarantee, secure, or settle a curities exchange relating to foreign currencies; as defined in section 741 of this title, an invest- swap agreement;’’; ‘‘(iii) the guarantee by or to a securities clear- ment company registered under the Investment (D) in paragraph (26), by striking ‘‘or’’ at the ing agency of a settlement of cash, securities, Company Act of 1940;’’; end; mortgage loans or interests therein, group or (2) by inserting after paragraph (22) the fol- (E) in paragraph (27), by striking the period index of securities, or mortgage loans or inter- lowing: at the end and inserting ‘‘; or’’; and ests therein (including any interest therein or ‘‘(22A) ‘financial participant’ means an entity (F) by inserting after paragraph (27) the fol- based on the value thereof), or option on any of that is a party to a securities contract, com- lowing: the foregoing, including an option to purchase modity contract or forward contract, or on the ‘‘(28) under subsection (a), of the setoff by a or sell any of the foregoing; date of the filing of the petition, has a com- master netting agreement participant of a mu- ‘‘(iv) a margin loan; modity contract (as defined in section 761) with tual debt and claim under or in connection with ‘‘(v) any other agreement or transaction that the debtor or any other entity (other than an af- 1 or more master netting agreements or any con- is similar to an agreement or transaction re- filiate) of a total gross dollar value of not less tract or agreement subject to such agreements ferred to in this subparagraph; than $1,000,000,000 in notional or actual prin- that constitutes the setoff of a claim against the ‘‘(vi) a combination of the agreements or cipal amount outstanding on any day during debtor for any payment or other transfer of transactions referred to in this subparagraph; the previous 15-month period, or has gross property due from the debtor under or in con- ‘‘(vii) an option to enter into an agreement or mark-to-market positions of not less than nection with such agreements or any contract or transaction referred to in this subparagraph; $100,000,000 (aggregated across counterparties) agreement subject to such agreements against ‘‘(viii) a master netting agreement that pro- in any such agreement or transaction with the any payment due to the debtor from such master vides for an agreement or transaction referred to debtor or any other entity (other than an affil- netting agreement participant under or in con- in clause (i), (ii), (iii), (iv), (v), (vi), or (vii), to- iate) on any day during the previous 15-month nection with such agreements or any contract or gether with all supplements to such master net- period;’’; and agreement subject to such agreements or against ting agreement, without regard to whether such (3) by striking paragraph (26) and inserting cash, securities, or other property held by, master netting agreement provides for an agree- the following: pledged or and under the control of, or due from ment or transaction that is not a securities con- ‘‘(26) ‘forward contract merchant’ means a such master netting agreement participant to tract under this subparagraph, except that such Federal reserve bank, or an entity, the business margin, guarantee, secure, or settle such agree- master netting agreement shall be considered to of which consists in whole or in part of entering ments or any contract or agreement subject to be a securities contract under this subparagraph into forward contracts as or with merchants or such agreements, to the extent such participant only with respect to each agreement or trans- in a commodity, as defined or in section 761, or is eligible to exercise such offset rights under action under such master netting agreement any similar good, article, service, right, or inter- paragraph (6), (7), or (17) for each individual that is referred to in clause (i), (ii), (iii), (iv), est that is presently or in the future becomes the contract covered by the master netting agree- (v), (vi), or (vii); or subject of dealing or in the forward contract ment in issue.’’. ‘‘(ix) a security agreement or arrangement, or trade;’’. (2) LIMITATION.—Section 362 of title 11, United other credit enhancement, directly pertaining to (c) DEFINITION OF MASTER NETTING AGREE- States Code, as amended by section 441(2) of this a contract referred to in this subparagraph, but MENT AND MASTER NETTING AGREEMENT PARTIC- Act, is amended by adding at the end the fol- not to exceed the actual value of such contract IPANT.—Section 101 of title 11, United States lowing: on the date of the filing of the petition; and Code, as amended by subsection (b) of this sec- ‘‘(l) LIMITATION.—The exercise of rights not ‘‘(B) does not include a purchase, sale, or re- tion, is amended by inserting after paragraph subject to the stay arising under subsection (a) purchase obligation under a participation in a (38) the following new paragraphs: pursuant to paragraph (6), (7), or (17) of sub- commercial mortgage loan;’’; and ‘‘(38A) the term ‘master netting agreement’— section (b) shall not be stayed by an order of a (3) in section 761(4)— ‘‘(A) means an agreement providing for the court or administrative agency in any pro- (A) by striking ‘‘or’’ at the end of subpara- exercise of rights, including rights of netting, ceeding under this title.’’. graph (D); and setoff, liquidation, termination, acceleration, or (e) LIMITATION OF AVOIDANCE POWERS UNDER (B) by adding at the end the following: closeout, under or in connection with 1 or more MASTER NETTING AGREEMENT.—Section 546 of ‘‘(F) any other agreement or transaction that contracts that are described in any 1 or more of title 11, United States Code, is amended— is similar to an agreement or transaction re- paragraphs (1) through (5) of section 561(a), or (1) in subsection (g) (as added by section 103 ferred to in this paragraph; any security agreement or arrangement or other of Public Law 101–311 (104 Stat. 267 et seq.))— ‘‘(G) a combination of the agreements or credit enhancement related to 1 or more of the (A) by striking ‘‘under a swap agreement’’; transactions referred to in this paragraph; foregoing; except that and ‘‘(H) an option to enter into an agreement or ‘‘(B) if a master netting agreement contains (B) by striking ‘‘in connection with a swap transaction referred to in this paragraph; provisions relating to agreements or trans- agreement’’ and inserting ‘‘under or in connec- ‘‘(I) a master netting agreement that provides actions that are not contracts described in para- tion with any swap agreement’’; and for an agreement or transaction referred to in graphs (1) through (5) of section 561(a), the mas- (2) by inserting before subsection (i) (as redes- subparagraph (A), (B), (C), (D), (E), (F), (G), or ter netting agreement shall be deemed to be a ignated by section 407 of this Act) the following (H), together with all supplements to such mas- master netting agreement only with respect to new subsection: ter netting agreement, without regard to wheth- those agreements or transactions that are de- ‘‘(h) Notwithstanding sections 544, 545, 547, er such master netting agreement provides for scribed in any 1 or more of the paragraphs (1) 548(a)(2)(B), and 548(b), the trustee may not an agreement or transaction that is not a com- through (5) of section 561(a); avoid a transfer made by or to a master netting

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00077 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S422 CONGRESSIONAL RECORD — SENATE February 7, 2000 agreement participant under or in connection the kind specified in section 365(e)(1), to cause ‘‘§ 767. Commodity broker liquidation and for- with any master netting agreement or any indi- the termination, liquidation, or acceleration of ward contract merchants, commodity bro- vidual contract covered thereby that is made be- or to offset or net termination values, payment kers, stockbrokers, financial institutions, se- fore the commencement of the case, and except amounts or other transfer obligations arising curities clearing agencies, swap partici- to the extent that the trustee could otherwise under or in connection with 1 or more (or the pants, repo participants, and master net- avoid such a transfer made under an individual termination, liquidation, or acceleration of 1 or ting agreement participants contract covered by such master netting agree- more)— ‘‘Notwithstanding any other provision of this ment (except under section 548(a)(1)(A)).’’. ‘‘(1) securities contracts, as defined in section title, the exercise of rights by a forward contract (f) FRAUDULENT TRANSFERS OF MASTER NET- 741(7); merchant, commodity broker, stockbroker, fi- TING AGREEMENTS.—Section 548(d)(2) of title 11, nancial institution, securities clearing agency, United States Code, is amended— ‘‘(2) commodity contracts, as defined in sec- tion 761(4); swap participant, repo participant, or master (1) in subparagraph (C), by striking ‘‘and’’; netting agreement participant under this title (2) in subparagraph (D), by striking the pe- ‘‘(3) forward contracts; shall not affect the priority of any unsecured riod at the end and inserting ‘‘; and’’; and ‘‘(4) repurchase agreements; claim it may have after the exercise of such (3) by adding at the end the following new ‘‘(5) swap agreements; or rights.’’. subparagraph: (n) STOCKBROKER LIQUIDATIONS.—Title 11, ‘‘(E) a master netting agreement participant ‘‘(6) master netting agreements, United States Code, is amended by inserting that receives a transfer in connection with a shall not be stayed, avoided, or otherwise lim- after section 752 the following: master netting agreement or any individual con- ited by operation of any provision of this title or tract covered thereby takes for value to the ex- by any order of a court or administrative agency ‘‘§ 753. Stockbroker liquidation and forward tent of such transfer, except, with respect to a in any proceeding under this title. contract merchants, commodity brokers, transfer under any individual contract covered stockbrokers, financial institutions, securi- ‘‘(b)(1) A party may exercise a contractual ties clearing agencies, swap participants, thereby, to the extent that such master netting right described in subsection (a) to terminate, agreement participant otherwise did not take (or repo participants, and master netting liquidate, or accelerate only to the extent that agreement participants is otherwise not deemed to have taken) such such party could exercise such a right under ‘‘Notwithstanding any other provision of this transfer for value.’’. section 555, 556, 559, or 560 for each individual title, the exercise of rights by a forward contract (g) TERMINATION OR ACCELERATION OF SECU- contract covered by the master netting agree- merchant, commodity broker, stockbroker, fi- RITIES CONTRACTS.—Section 555 of title 11, ment in issue. United States Code, is amended— nancial institution, securities clearing agency, (1) by striking the section heading and insert- ‘‘(2) If a debtor is a commodity broker subject swap participant, repo participant, financial ing the following: to subchapter IV of chapter 7— participant, or master netting agreement partici- ‘‘§ 555. Contractual right to liquidate, termi- ‘‘(A) a party may not net or offset an obliga- pant under this title shall not affect the priority nate, or accelerate a securities contract’’; tion to the debtor arising under, or in connec- of any unsecured claim it may have after the ex- and tion with, a commodity contract against any ercise of such rights.’’. (2) in the first sentence, by striking ‘‘liquida- claim arising under, or in connection with, (o) SETOFF.—Section 553 of title 11, United tion’’ and inserting ‘‘liquidation, termination, other instruments, contracts, or agreements list- States Code, is amended— or acceleration’’. ed in subsection (a), except to the extent that (1) in subsection (a)(3)(C), by inserting ‘‘(ex- (h) TERMINATION OR ACCELERATION OF COM- the party has positive net equity in the com- cept for a setoff of a kind described in section MODITIES OR FORWARD CONTRACTS.—Section 556 modity accounts at the debtor, as calculated 362(b)(6), 362(b)(7), 362(b)(17), 362(b)(28), 555, of title 11, United States Code, is amended— under such subchapter IV; and 556, 559, or 560)’’ before the period; and (1) by striking the section heading and insert- ‘‘(B) another commodity broker may not net (2) in subsection (b)(1), by striking ing the following: or offset an obligation to the debtor arising ‘‘362(b)(14),’’ and inserting ‘‘362(b)(17), 362(b)(28), 555, 556, 559, 560,’’. ‘‘§ 556. Contractual right to liquidate, termi- under, or in connection with, a commodity con- (p) SECURITIES CONTRACTS, COMMODITY CON- nate, or accelerate a commodities contract tract entered into or held on behalf of a cus- TRACTS, AND FORWARD CONTRACTS.—Title 11, or forward contract’’; tomer of the debtor against any claim arising under, or in connection with, other instruments, United States Code, is amended— and (1) in section 362(b)(6), by striking ‘‘financial (2) in the first sentence, by striking ‘‘liquida- contracts, or agreements referred to in sub- section (a). institutions,’’ each place such term appears and tion’’ and inserting ‘‘liquidation, termination, inserting ‘‘financial institution, financial par- or acceleration’’. ‘‘(c) As used in this section, the term ‘contrac- ticipant’’; (i) TERMINATION OR ACCELERATION OF REPUR- tual right’ includes a right set forth in a rule or (2) in section 546(e), by inserting ‘‘financial CHASE AGREEMENTS.—Section 559 of title 11, bylaw of a national securities exchange, a na- participant’’ after ‘‘financial institution,’’; United States Code, is amended— tional securities association, or a securities (3) in section 548(d)(2)(B), by inserting ‘‘fi- (1) by striking the section heading and insert- clearing agency, a right set forth in a bylaw of nancial participant’’ after ‘‘financial institu- ing the following: a clearing organization or contract market or in tion,’’; ‘‘§ 559. Contractual right to liquidate, termi- a resolution of the governing board thereof, and (4) in section 555— nate, or accelerate a repurchase agree- a right, whether or not evidenced in writing, (A) by inserting ‘‘financial participant’’ after ment’’; arising under common law, under law merchant, ‘‘financial institution,’’; and and or by reason of normal business practice.’’. (B) by inserting before the period ‘‘, a right (2) in the first sentence, by striking ‘‘liquida- (l) ANCILLARY PROCEEDINGS.—Section 304 of set forth in a bylaw of a clearing organization tion’’ and inserting ‘‘liquidation, termination, title 11, United States Code, is amended by add- or contract market or in a resolution of the gov- or acceleration’’. ing at the end the following: erning board thereof, and a right, whether or (j) LIQUIDATION, TERMINATION, OR ACCELERA- ‘‘(d) Any provisions of this title relating to se- not in writing, arising under common law, TION OF SWAP AGREEMENTS.—Section 560 of title curities contracts, commodity contracts, forward under law merchant, or by reason of normal 11, United States Code, is amended— contracts, repurchase agreements, swap agree- business practice’’; and (1) by striking the section heading and insert- ments, or master netting agreements shall apply (5) in section 556, by inserting ‘‘, financial ing following: in a case ancillary to a foreign proceeding under participant’’ after ‘‘commodity broker’’. ‘‘§ 560. Contractual right to liquidate, termi- this section or any other section of this title, so (q) CONFORMING AMENDMENTS.—Title 11, nate, or accelerate a swap agreement’’; that enforcement of contractual provisions of United States Code, is amended— (1) in the table of sections for chapter 5— (2) in the first sentence, by striking ‘‘termi- such contracts and agreements in accordance (A) by striking the items relating to sections nation of a swap agreement’’ and inserting ‘‘liq- with their terms— 555 and 556 and inserting the following: uidation, termination, or acceleration of a swap ‘‘(1) shall not be stayed or otherwise limited agreement’’; and by— ‘‘555. Contractual right to liquidate, terminate, (3) by striking ‘‘in connection with any swap or accelerate a securities contract. ‘‘(A) operation of any provision of this title; ‘‘556. Contractual right to liquidate, terminate, agreement’’ and inserting ‘‘in connection with or the termination, liquidation, or acceleration of a or accelerate a commodities con- swap agreement’’. ‘‘(B) order of a court in any case under this tract or forward contract.’’; (k) LIQUIDATION, TERMINATION, ACCELERA- title; (B) by striking the items relating to sections TION, OR OFFSET UNDER A MASTER NETTING ‘‘(2) shall limit avoidance powers to the same 559 and 560 and inserting the following: AGREEMENT AND ACROSS CONTRACTS.—Title 11, extent as in a proceeding under chapter 7 or 11; ‘‘559. Contractual right to liquidate, terminate, United States Code, is amended by inserting and or accelerate a repurchase agree- after section 560 the following: ‘‘(3) shall not be limited based on the presence ment. ‘‘§ 561. Contractual right to terminate, liq- or absence of assets of the debtor in the United ‘‘560. Contractual right to liquidate, terminate, uidate, accelerate, or offset under a master States.’’. or accelerate a swap agreement.’’; netting agreement and across contracts (m) COMMODITY BROKER LIQUIDATIONS.—Title and ‘‘(a) Subject to subsection (b), the exercise of 11, United States Code, is amended by inserting (C) by adding after the item relating to section any contractual right, because of a condition of after section 766 the following: 560 the following:

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00078 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S423 ‘‘561. Contractual right to terminate, liquidate, (4) by adding at the end the following: SEC. 1003. ELIMINATION OF REQUIREMENT THAT accelerate, or offset under a mas- ‘‘(e) For purposes of this section, the following FAMILY FARMER AND SPOUSE RE- ter netting agreement and across definitions shall apply: CEIVE OVER 50 PERCENT OF INCOME ‘‘(1) The term ‘asset-backed securitization’ FROM FARMING OPERATION IN YEAR contracts.’’; PRIOR TO BANKRUPTCY. means a transaction in which eligible assets and Section 101(18)(A) of title 11, United States transferred to an eligible entity are used as the (2) in the table of sections for chapter 7— Code, is amended by striking ‘‘the taxable year source of payment on securities, the most senior (A) by inserting after the item relating to sec- preceding the taxable year’’ and inserting ‘‘at of which are rated investment grade by 1 or tion 766 the following: least 1 of the 3 calendar years preceding the more nationally recognized securities rating or- ‘‘767. Commodity broker liquidation and forward year’’. ganizations, issued by an issuer. contract merchants, commodity ‘‘(2) The term ‘eligible asset’ means— SEC. 1004. CERTAIN CLAIMS OWED TO GOVERN- brokers, stockbrokers, financial ‘‘(A) financial assets (including interests MENTAL UNITS. (a) CONTENTS OF PLAN.—Section 1222(a)(2) of institutions, securities clearing therein and proceeds thereof), either fixed or re- title 11, United States Code, is amended to read agencies, swap participants, repo volving, including residential and commercial as follows: participants, and master netting mortgage loans, consumer receivables, trade re- agreement participants.’’; ‘‘(2) provide for the full payment, in deferred ceivables, and lease receivables, that, by their cash payments, of all claims entitled to priority and terms, convert into cash within a finite time pe- (B) by inserting after the item relating to sec- under section 507, unless— riod, plus any rights or other assets designed to ‘‘(A) the claim is a claim owed to a govern- tion 752 the following: assure the servicing or timely distribution of mental unit that arises as a result of the sale, ‘‘753. Stockbroker liquidation and forward con- proceeds to security holders; transfer, exchange, or other disposition of any tract merchants, commodity bro- ‘‘(B) cash; and farm asset used in the debtor’s farming oper- kers, stockbrokers, financial insti- ‘‘(C) securities. ation, in which case the claim shall be treated tutions, securities clearing agen- ‘‘(3) The term ‘eligible entity’ means— as an unsecured claim that is not entitled to pri- cies, swap participants, repo par- ‘‘(A) an issuer; or ‘‘(B) a trust, corporation, partnership, or ority under section 507, but the debt shall be ticipants, and master netting treated in such manner only if the debtor re- other entity engaged exclusively in the business agreement participants.’’. ceives a discharge; or of acquiring and transferring eligible assets di- SEC. 902. DAMAGE MEASURE. ‘‘(B) the holder of a particular claim agrees to rectly or indirectly to an issuer and taking ac- (a) IN GENERAL.—Title 11, United States Code, a different treatment of that claim; and’’. tions ancillary thereto. is amended— (b) SPECIAL NOTICE PROVISIONS.—Section ‘‘(4) The term ‘issuer’ means a trust, corpora- (1) by inserting after section 561 the following: 1231(b) of title 11, United States Code, is amend- tion, partnership, or other entity engaged exclu- ‘‘§ 562. Damage measure in connection with ed by striking ‘‘a State or local governmental sively in the business of acquiring and holding unit’’ and inserting ‘‘any governmental unit’’. swap agreements, securities contracts, for- eligible assets, issuing securities backed by eligi- SEC. 1005. PROHIBITION OF RETROACTIVE AS- ward contracts, commodity contracts, repur- ble assets, and taking actions ancillary thereto. chase agreements, or master netting agree- SESSMENT OF DISPOSABLE INCOME. ‘‘(5) The term ‘transferred’ means the debtor, (a) IN GENERAL.—Section 1225(b) of title 11, ments under a written agreement, represented and United States Code, is amended by adding at the ‘‘If the trustee rejects a swap agreement, secu- warranted that eligible assets were sold, contrib- end the following: rities contract (as defined in section 741), for- uted, or otherwise conveyed with the intention ‘‘(3) If the plan provides for specific amounts ward contract, commodity contract (as defined of removing them from the estate of the debtor of property to be distributed on account of al- in section 761) repurchase agreement, or master pursuant to subsection (b)(5), irrespective, with- lowed unsecured claims as required by para- netting agreement under section 365(a), or if a out limitation of— graph (1)(B), those amounts equal or exceed the forward contract merchant, stockbroker, finan- ‘‘(A) whether the debtor directly or indirectly debtor’s projected disposable income for that pe- cial institution, securities clearing agency, repo obtained or held an interest in the issuer or in riod, and the plan meets the requirements for participant, financial participant, master net- any securities issued by the issuer; confirmation other than those of this subsection, ting agreement participant, or swap participant ‘‘(B) whether the debtor had an obligation to the plan shall be confirmed.’’. liquidates, terminates, or accelerates such con- repurchase or to service or supervise the serv- (b) MODIFICATION.—Section 1229 of title 11, tract or agreement, damages shall be measured icing of all or any portion of such eligible assets; United States Code, is amended by adding at the as of the earlier of— or end the following: ‘‘(1) the date of such rejection; or ‘‘(C) the characterization of such sale, con- ‘‘(d)(1) A modification of the plan under this ‘‘(2) the date of such liquidation, termination, tribution, or other conveyance for tax, account- section may not increase the amount of pay- or acceleration.’’; and ing, regulatory reporting, or other purposes.’’. ments that were due prior to the date of the (2) in the table of sections for chapter 5 by in- SEC. 904. EFFECTIVE DATE; APPLICATION OF order modifying the plan. serting after the item relating to section 561 the AMENDMENTS. ‘‘(2) A modification of the plan under this sec- following: (a) EFFECTIVE DATE.—This title shall take ef- tion to increase payments based on an increase ‘‘562. Damage measure in connection with swap fect on the date of enactment of this Act. in the debtor’s disposable income may not re- agreements, securities contracts, (b) APPLICATION OF AMENDMENTS.—The quire payments to unsecured creditors in any forward contracts, commodity amendments made by this title shall apply with particular month greater than the debtor’s dis- contracts, repurchase agreements, respect to cases commenced or appointments posable income for that month unless the debtor or master netting agreements.’’. made under any Federal or State law after the proposes such a modification. date of enactment of this Act, but shall not ‘‘(3) A modification of the plan in the last (b) CLAIMS ARISING FROM REJECTION.—Sec- apply with respect to cases commenced or ap- tion 502(g) of title 11, United States Code, is year of the plan shall not require payments that pointments made under any Federal or State amended— would leave the debtor with insufficient funds (1) by inserting ‘‘(1)’’ after ‘‘(g)’’; and law before the date of enactment of this Act. to carry on the farming operation after the plan (2) by adding at the end the following: TITLE X—PROTECTION OF FAMILY is completed unless the debtor proposes such a ‘‘(2) A claim for damages calculated in accord- FARMERS AND FAMILY FISHERMEN modification.’’. ance with section 561 shall be allowed under SEC. 1001. REENACTMENT OF CHAPTER 12. SEC. 1006. FAMILY FISHERMEN. subsection (a), (b), or (c) of this section, or dis- (a) REENACTMENT.— (a) DEFINITIONS.—Section 101 of title 11, allowed under subsection (d) or (e) of this sec- (1) IN GENERAL.—Chapter 12 of title 11, United United States Code, is amended— tion, as if such claim had arisen before the date States Code, as reenacted by section 149 of divi- (1) by inserting after paragraph (7) the fol- of the filing of the petition.’’. sion C of the Omnibus Consolidated and Emer- lowing: ‘‘(7A) ‘commercial fishing operation’ in- SEC. 903. ASSET-BACKED SECURITIZATIONS. gency Supplemental Appropriations Act, 1999 cludes— (Public Law 105–277), and amended by this Act, Section 541 of title 11, United States Code, is ‘‘(A) the catching or harvesting of fish, is reenacted. amended— shrimp, lobsters, urchins, seaweed, shellfish, or (2) EFFECTIVE DATE.—Subsection (a) shall (1) in subsection (b), by striking ‘‘or’’ at the other aquatic species or products; and end of paragraph (4); take effect on October 1, 1999. ‘‘(B) for purposes of section 109 and chapter (b) CONFORMING AMENDMENT.—Section 302 of (2) by redesignating paragraph (5) of sub- 12, aquaculture activities consisting of raising the Bankruptcy, Judges, United States Trustees, section (b) as paragraph (6); for market any species or product described in and Family Farmer Bankruptcy Act of 1986 (28 (3) by inserting after paragraph (4) of sub- subparagraph (A);’’; section (b) the following new paragraph: U.S.C. 581 note) is amended by striking sub- ‘‘(7B) ‘commercial fishing vessel’ means a ves- ‘‘(5) any eligible asset (or proceeds thereof), to section (f). sel used by a fisherman to carry out a commer- the extent that such eligible asset was trans- SEC. 1002. DEBT LIMIT INCREASE. cial fishing operation;’’; ferred by the debtor, before the date of com- Section 104(b) of title 11, United States Code, (2) by inserting after paragraph (19) the fol- mencement of the case, to an eligible entity in is amended by adding at the end the following: lowing: connection with an asset-backed securitization, ‘‘(4) The dollar amount in section 101(18) shall ‘‘(19A) ‘family fisherman’ means— except to the extent that such asset (or proceeds be adjusted at the same times and in the same ‘‘(A) an individual or individual and spouse or value thereof) may be recovered by the trust- manner as the dollar amounts in paragraph (1) engaged in a commercial fishing operation (in- ee under section 550 by virtue of avoidance of this subsection, beginning with the adjust- cluding aquiculture for purposes of chapter under section 548(a); or’’; and ment to be made on April 1, 2001.’’. 12)—

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00079 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S424 CONGRESSIONAL RECORD — SENATE February 7, 2000 ‘‘(i) whose aggregate debts do not exceed ‘‘(2)(A) For purposes of this chapter, a claim (a) of this section, is amended by inserting after $1,500,000 and not less than 80 percent of whose for a lien described in subsection (b) for a com- paragraph (40) the following: aggregate noncontingent, liquidated debts (ex- mercial fishing vessel of a family fisherman that ‘‘(40A) ‘patient’ means any person who ob- cluding a debt for the principal residence of could, but for this subsection, be subject to a tains or receives services from a health care such individual or such individual and spouse, lien under otherwise applicable maritime law, business;’’. unless such debt arises out of a commercial fish- shall be treated as an unsecured claim. (c) PATIENT RECORDS DEFINED.—Section 101 ing operation), on the date the case is filed, ‘‘(B) Subparagraph (A) applies to a claim for of title 11, United States Code, as amended by arise out of a commercial fishing operation a lien resulting from a debt of a family fisher- subsection (b) of this section, is amended by in- owned or operated by such individual or such man incurred on or after the date of enactment serting after paragraph (40A) the following: individual and spouse; and of this chapter. ‘‘(40B) ‘patient records’ means any written ‘‘(ii) who receive from such commercial fishing ‘‘(b) A lien described in this subsection is— document relating to a patient or a record re- operation more than 50 percent of such individ- ‘‘(1) a maritime lien under subchapter III of corded in a magnetic, optical, or other form of ual’s or such individual’s and spouse’s gross in- chapter 313 of title 46, United States Code, with- electronic medium;’’. come for the taxable year preceding the taxable out regard to whether that lien is recorded (d) RULE OF CONSTRUCTION.—The amend- year in which the case concerning such indi- under section 31343 of title 46, United States ments made by subsection (a) of this section vidual or such individual and spouse was filed; Code; or shall not affect the interpretation of section or ‘‘(2) a lien under applicable State law (or the 109(b) of title 11, United States Code. ‘‘(B) a corporation or partnership— law of a political subdivision thereof). SEC. 1102. DISPOSAL OF PATIENT RECORDS. ‘‘(i) in which more than 50 percent of the out- ‘‘(c) Subsection (a) shall not apply to— (a) IN GENERAL.—Subchapter III of chapter 3 standing stock or equity is held by— ‘‘(1) a claim made by a member of a crew or of title 11, United States Code, is amended by ‘‘(I) 1 family that conducts the commercial a seaman including a claim made for— adding at the end the following: ‘‘(A) wages, maintenance, or cure; or fishing operation; or ‘‘§ 351. Disposal of patient records ‘‘(II) 1 family and the relatives of the members ‘‘(B) personal injury; or ‘‘If a health care business commences a case of such family, and such family or such rel- ‘‘(2) a preferred ship mortgage that has been under chapter 7, 9, or 11, and the trustee does atives conduct the commercial fishing operation; perfected under subchapter II of chapter 313 of not have a sufficient amount of funds to pay for and title 46, United States Code. the storage of patient records in the manner re- ‘‘(ii)(I) more than 80 percent of the value of its ‘‘(d) For purposes of this chapter, a mortgage quired under applicable Federal or State law, assets consists of assets related to the commer- described in subsection (c)(2) shall be treated as the following requirements shall apply: cial fishing operation; a secured claim.’’. (d) CLERICAL AMENDMENTS.— ‘‘(1) The trustee shall— ‘‘(II) its aggregate debts do not exceed (1) TABLE OF CHAPTERS.—In the table of chap- ‘‘(A) publish notice, in 1 or more appropriate $1,500,000 and not less than 80 percent of its ag- ters for title 11, United States Code, the item re- newspapers, that if patient records are not gregate noncontingent, liquidated debts (exclud- lating to chapter 12, is amended to read as fol- claimed by the patient or an insurance provider ing a debt for 1 dwelling which is owned by lows: (if applicable law permits the insurance provider such corporation or partnership and which a to make that claim) by the date that is 90 days shareholder or partner maintains as a principal ‘‘12. Adjustments of Debts of a Family after the date of that notification, the trustee residence, unless such debt arises out of a com- Farmer or Family Fisherman with will destroy the patient records; and mercial fishing operation), on the date the case Regular Annual Income ...... 1201’’. (2) TABLE OF SECTIONS.—The table of sections ‘‘(B) during the 90-day period described in is filed, arise out of a commercial fishing oper- subparagraph (A), attempt to notify directly ation owned or operated by such corporation or for chapter 12 of title 11, United States Code, is amended by adding at the end the following each patient that is the subject of the patient such partnership; and records and appropriate insurance carrier con- ‘‘(III) if such corporation issues stock, such new item: ‘‘1232. Additional provisions relating to family cerning the patient records by mailing to the stock is not publicly traded;’’; and last known address of that patient and appro- (3) by inserting after paragraph (19A) the fol- fishermen.’’. priate insurance carrier an appropriate notice lowing: TITLE XI—HEALTH CARE AND EMPLOYEE regarding the claiming or disposing of patient ‘‘(19B) ‘family fisherman with regular annual BENEFITS records. income’ means a family fisherman whose annual SEC. 1101. DEFINITIONS. ‘‘(2) If after providing the notification under income is sufficiently stable and regular to en- (a) HEALTH CARE BUSINESS DEFINED.—Section paragraph (1), patient records are not claimed able such family fisherman to make payments 101 of title 11, United States Code, as amended during the 90-day period described under that under a plan under chapter 12 of this title;’’. by section 1003(a) of this Act, is amended— paragraph, the trustee shall mail, by certified HO MAY BEADEBTOR.—Section 109(f) of (b) W (1) by redesignating paragraph (27A) as para- mail, at the end of such 90-day period a written title 11, United States Code, is amended by in- graph (27B); and request to each appropriate Federal agency to serting ‘‘or family fisherman’’ after ‘‘family (2) inserting after paragraph (27) the fol- request permission from that agency to deposit farmer’’. lowing: the patient records with that agency. (c) CHAPTER 12.—Chapter 12 of title 11, United ‘‘(27A) ‘health care business’— ‘‘(3) If, following the period in paragraph (2) States Code, is amended— ‘‘(A) means any public or private entity (with- and after providing the notification under para- (1) in the chapter heading, by inserting ‘‘OR out regard to whether that entity is organized graph (1), patient records are not claimed dur- FISHERMAN’’ after ‘‘FAMILY FARMER’’; for profit or not for profit) that is primarily en- ing the 90-day period described in paragraph (2) in section 1201, by adding at the end the gaged in offering to the general public facilities (1)(A) or in any case in which a notice is mailed following: and services for— under paragraph (1)(B), during the 90-day pe- ‘‘(e)(1) Notwithstanding any other provision ‘‘(i) the diagnosis or treatment of injury, de- riod beginning on the date on which the notice of law, for purposes of this subsection, a guar- formity, or disease; and is mailed, by a patient or insurance provider in antor of a claim of a creditor under this section ‘‘(ii) surgical, drug treatment, psychiatric or accordance with that paragraph, the trustee shall be treated in the same manner as a cred- obstetric care; and shall destroy those records by— itor with respect to the operation of a stay ‘‘(B) includes— ‘‘(A) if the records are written, shredding or under this section. ‘‘(i) any— burning the records; or ‘‘(2) For purposes of a claim that arises from ‘‘(I) general or specialized hospital; ‘‘(B) if the records are magnetic, optical, or ‘‘(II) ancillary ambulatory, emergency, or sur- the ownership or operation of a commercial fish- other electronic records, by otherwise destroying gical treatment facility; ing operation, a co-maker of a loan made by a those records so that those records cannot be re- ‘‘(III) hospice; creditor under this section shall be treated in trieved.’’. the same manner as a creditor with respect to ‘‘(IV) home health agency; and ‘‘(V) other health care institution that is simi- (b) CLERICAL AMENDMENT.—The chapter anal- the operation of a stay under this section.’’; ysis for chapter 3 of title 11, United States Code, (3) in section 1203, by inserting ‘‘or commercial lar to an entity referred to in subclause (I), (II), (III), or (IV); and is amended by inserting after the item relating fishing operation’’ after ‘‘farm’’; to section 350 the following: (4) in section 1206, by striking ‘‘if the property ‘‘(ii) any long-term care facility, including is farmland or farm equipment’’ and inserting any— ‘‘351. Disposal of patient records.’’. ‘‘if the property is farmland, farm equipment, or ‘‘(I) skilled nursing facility; SEC. 1103. ADMINISTRATIVE EXPENSE CLAIM FOR property of a commercial fishing operation (in- ‘‘(II) intermediate care facility; COSTS OF CLOSING A HEALTH CARE BUSINESS. cluding a commercial fishing vessel)’’; and ‘‘(III) assisted living facility; (5) by adding at the end the following: ‘‘(IV) home for the aged; Section 503(b) of title 11, United States Code, ‘‘(V) domiciliary care facility; and is amended— ‘‘§ 1232. Additional provisions relating to fam- ‘‘(VI) health care institution that is related to (1) in paragraph (5), by striking ‘‘and’’ at the ily fishermen a facility referred to in subclause (I), (II), (III), end; ‘‘(a)(1) Notwithstanding any other provision (IV), or (V), if that institution is primarily en- (2) in paragraph (6), by striking the period at of law, except as provided in subsection (c), gaged in offering room, board, laundry, or per- the end and inserting ‘‘; and’’; and with respect to any commercial fishing vessel of sonal assistance with activities of daily living (3) by adding at the end the following: a family fisherman, the debts of that family and incidentals to activities of daily living;’’. ‘‘(7) the actual, necessary costs and expenses fisherman shall be treated in the manner pre- (b) PATIENT DEFINED.—Section 101 of title 11, of closing a health care business incurred by a scribed in paragraph (2). United States Code, as amended by subsection trustee or by a Federal agency (as that term is

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defined in section 551(1) of title 5) or a depart- (b) CONFORMING AMENDMENT.—Section pressed in terms of an amendment to, or repeal ment or agency of a State or political subdivi- 1106(a)(1) of title 11, United States Code, is of, a section or other provision, the reference sion thereof, including any cost or expense in- amended by striking ‘‘704(2), 704(5), 704(7), shall be considered to be made to a section or curred— 704(8), and 704(9)’’ and inserting ‘‘704(a) (2), (5), other provision of the Internal Revenue Code of ‘‘(A) in disposing of patient records in accord- (7), (8), (9), and (11)’’. 1986. ance with section 351; or SEC. 1106. ESTABLISHMENT OF POLICY AND PRO- Subtitle A—Small Business Tax Relief ‘‘(B) in connection with transferring patients TOCOLS RELATING TO BANK- from the health care business that is in the RUPTCIES OF HEALTH CARE BUSI- SEC. 1301. INCREASE IN EXPENSING LIMITATION process of being closed to another health care NESSES. TO $30,000. business.’’. Not later than 30 days after the date of enact- (a) IN GENERAL.—Paragraph (1) of section SEC. 1104. APPOINTMENT OF OMBUDSMAN TO ment of this Act, the Attorney General of the 179(b) (relating to limitations) is amended to ACT AS PATIENT ADVOCATE. United States, in consultation with the Sec- read as follows: (a) IN GENERAL.— retary of Health and Human Services and the National Association of Attorneys General, shall ‘‘(1) DOLLAR LIMITATION.—The aggregate cost (1) APPOINTMENT OF OMBUDSMAN.—Sub- which may be taken into account under sub- chapter II of chapter 3 of title 11, United States establish a policy and protocols for coordinating a response to bankruptcies of health care busi- section (a) for any taxable year shall not exceed Code, is amended by inserting after section 331 $30,000.’’ the following: nesses (as that term is defined in section 101 of title 11, United States Code), including assessing (b) EFFECTIVE DATE.—The amendment made ‘‘§ 332. Appointment of ombudsman the appropriate time frame for disposal of pa- by this section shall apply to taxable years be- ‘‘(a) Not later than 30 days after a case is tient records under section 1102 of this Act. ginning after December 31, 2000. commenced by a health care business under SEC. 1107. EXCLUSION FROM PROGRAM PARTICI- SEC. 1302. REPEAL OF TEMPORARY UNEMPLOY- chapter 7, 9, or 11, the court shall appoint an PATION NOT SUBJECT TO AUTO- MENT TAX. ombudsman with appropriate expertise in moni- MATIC STAY. toring the quality of patient care to represent Section 3301 (relating to rate of unemployment Section 362(b) of title 11, United States Code, tax) is amended— the interests of the patients of the health care as amended by section 901(d) of this Act, is business. The court may appoint as an ombuds- amended— (1) by striking ‘‘2007’’ in paragraph (1) and man a person who is serving as a State Long- (1) in paragraph (27), by striking ‘‘or’’ at the inserting ‘‘2000’’; and Term Care Ombudsman appointed under title III end; (2) by striking ‘‘2008’’ in paragraph (2) and or VII of the Older Americans Act of 1965 (42 (2) in paragraph (28), by striking the period at inserting ‘‘2001’’. U.S.C. 3021 et seq. and 3058 et seq.). the end and inserting ‘‘; or’’; and SEC. 1303. FULL DEDUCTION OF HEALTH INSUR- ‘‘(b) An ombudsman appointed under sub- (3) by inserting after paragraph (28) the fol- ANCE COSTS FOR SELF-EMPLOYED section (a) shall— lowing: INDIVIDUALS. ‘‘(1) monitor the quality of patient care, to the ‘‘(29) under subsection (a), of the exclusion by (a) IN GENERAL.—Section 162(l)(1) (relating to extent necessary under the circumstances, in- the Secretary of Health and Human Services of cluding interviewing patients and physicians; allowance of deduction) is amended to read as the debtor from participation in the medicare follows: ‘‘(2) not later than 60 days after the date of program or any other Federal health care pro- ‘‘(1) ALLOWANCE OF DEDUCTION.—In the case appointment, and not less frequently than every gram (as defined in section 1128B(f) of the So- of an individual who is an employee within the 60 days thereafter, report to the court, at a cial Security Act (42 U.S.C. 1320a–7b(f)) pursu- meaning of section 401(c)(1), there shall be al- hearing or in writing, regarding the quality of ant to title XI of such Act (42 U.S.C. 1301 et lowed as a deduction under this section an patient care at the health care business in- seq.) or title XVIII of such Act (42 U.S.C. 1395 amount equal to the amount paid during the volved; and et seq.).’’. ‘‘(3) if the ombudsman determines that the taxable year for insurance which constitutes TITLE XII—AMENDMENTS TO FAIR LABOR quality of patient care is declining significantly medical care for the taxpayer and the tax- STANDARDS ACT OF 1938 or is otherwise being materially compromised, payer’s spouse and dependents.’’ notify the court by motion or written report, SEC. 1201. MINIMUM WAGE. (b) EFFECTIVE DATE.—The amendment made with notice to appropriate parties in interest, Section 6(a)(1) of the Fair Labor Standards by this section shall apply to taxable years be- immediately upon making that determination. Act of 1938 (29 U.S.C. 206(a)(1)) is amended to ginning after December 31, 1999. ‘‘(c) An ombudsman shall maintain any infor- read as follows: ‘‘(1) except as otherwise provided in this sec- SEC. 1304. PERMANENT EXTENSION OF WORK OP- mation obtained by the ombudsman under this PORTUNITY TAX CREDIT. section that relates to patients (including infor- tion, not less than— mation relating to patient records) as confiden- ‘‘(A) $5.15 an hour beginning September 1, (a) IN GENERAL.—Section 51(c) (defining tial information.’’. 1997, wages) is amended by striking paragraph (4). (2) CLERICAL AMENDMENT.—The chapter anal- ‘‘(B) $5.50 an hour during the year beginning (b) EFFECTIVE DATE.—The amendment made ysis for chapter 3 of title 11, United States Code, March 1, 2000, by this section shall apply to individuals who is amended by inserting after the item relating ‘‘(C) $5.85 an hour during the year beginning begin work for the employer after June 30, 1999. to section 331 the following: March 1, 2001, and SEC. 1305. SMALL BUSINESSES ALLOWED IN- ‘‘332. Appointment of ombudsman.’’. ‘‘(D) $6.15 an hour during the year beginning CREASED DEDUCTION FOR MEAL March 1, 2002.’’. AND ENTERTAINMENT EXPENSES. (b) COMPENSATION OF OMBUDSMAN.—Section 330(a)(1) of title 11, United States Code, is SEC. 1202. REGULAR RATE FOR OVERTIME PUR- (a) IN GENERAL.—Subsection (n) of section 274 POSES. amended— (relating to only 50 percent of meal and enter- Section 7(e) of the Fair Labor Standards Act (1) in the matter proceeding subparagraph tainment expenses allowed as deduction) is of 1938 (29 U.S.C. 207(e)) is amended— (A), by inserting ‘‘an ombudsman appointed amended by adding at the end the following: (1) by inserting before the semicolon at the under section 331, or’’ before ‘‘a professional ‘‘(4) SPECIAL RULE FOR SMALL BUSINESSES.— end of paragraph (3) the following: ‘‘; or (d) the person’’; and payments are made to reward an employee or ‘‘(A) IN GENERAL.—In the case of any tax- (2) in subparagraph (A), by inserting ‘‘om- group of employees for meeting or exceeding the payer which is a small business, paragraph (1) budsman,’’ before ‘‘professional person’’. productivity, quality, efficiency, or sales goals shall be applied by substituting ‘the applicable SEC. 1105. DEBTOR IN POSSESSION; DUTY OF as specified in a gainsharing, incentive bonus, percentage’ for ‘50 percent’. For purposes of the TRUSTEE TO TRANSFER PATIENTS. commission, or performance contingent bonus preceding sentence, the term ‘applicable per- (a) IN GENERAL.—Section 704(a) of title 11, plan’’; and centage’ means 55 percent in the case of taxable United States Code, as amended by section 219 (2) by inserting after and below paragraph (7) years beginning in 2001, increased (but not of this Act, is amended— the following: above 80 percent) by 5 percentage points for (1) in paragraph (9), by striking ‘‘and’’ at the ‘‘A plan described in paragraph (3)(d) shall be each succeeding calendar year after 2001 with end; in writing and made available to employees, respect to taxable years beginning in each such (2) in paragraph (10), by striking the period provide that the amount of the payments to be calendar year. and inserting ‘‘; and’’; and made under the plan be based upon a formula ‘‘(B) SMALL BUSINESS.—For purposes of this (3) by adding at the end the following: that is stated in the plan, and be established paragraph, the term ‘small business’ means, ‘‘(11) use all reasonable and best efforts to and maintained in good faith for the purpose of with respect to expenses paid or incurred during transfer patients from a health care business distributing to employees additional remunera- any taxable year— that is in the process of being closed to an ap- tion over and above the wages and salaries that ‘‘(i) any C corporation which meets the re- propriate health care business that— are not dependent upon the existence of such quirements of section 55(e)(1) for such year, and ‘‘(A) is in the vicinity of the health care busi- plan or payments made pursuant to such ‘‘(ii) any S corporation, partnership, or sole ness that is closing; plan.’’. ‘‘(B) provides the patient with services that proprietorship which would meet such require- are substantially similar to those provided by TITLE XIII—TAX RELIEF ments if it were a C corporation.’’ the health care business that is in the process of SEC. 1300. AMENDMENT OF 1986 CODE. (b) EFFECTIVE DATE.—The amendment made being closed; and Except as otherwise expressly provided, when- by subsection (a) shall apply to taxable years ‘‘(C) maintains a reasonable quality of care.’’. ever in this title an amendment or repeal is ex- beginning after December 31, 2000.

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Subtitle B—Deduction for Health and Long- ‘‘(i) QUALIFIED LONG-TERM CARE.—Subpara- 415(b)(2) is amended by striking ‘‘the social se- Term Care Insurance graph (A) shall not apply to amounts paid for curity retirement age’’ each place it appears in SEC. 1311. DEDUCTION FOR HEALTH AND LONG- coverage under a qualified long-term care insur- the heading and text and inserting ‘‘age 65’’. TERM CARE INSURANCE COSTS OF ance contract. (4) COST-OF-LIVING ADJUSTMENTS.—Subsection INDIVIDUALS NOT PARTICIPATING ‘‘(ii) CONTINUATION COVERAGE OF FEHBP.— (d) of section 415 (related to cost-of-living ad- IN EMPLOYER-SUBSIDIZED HEALTH Subparagraph (A)(iv) shall not apply to cov- justments) is amended— PLANS. erage which is comparable to continuation cov- (A) by striking ‘‘$90,000’’ in paragraph (1)(A) (a) IN GENERAL.—Part VII of subchapter B of erage under section 4980B. and inserting ‘‘$160,000’’, and chapter 1 is amended by redesignating section ‘‘(d) LONG-TERM CARE DEDUCTION LIMITED TO (B) in paragraph (3)(A)— 222 as section 223 and by inserting after section QUALIFIED LONG-TERM CARE INSURANCE CON- (i) by striking ‘‘$90,000’’ in the heading and 221 the following new section: TRACTS.—In the case of a qualified long-term inserting ‘‘$160,000’’, and ‘‘SEC. 222. HEALTH AND LONG-TERM CARE INSUR- care insurance contract, only eligible long-term (ii) by striking ‘‘October 1, 1986’’ and inserting ANCE COSTS. care premiums (as defined in section 213(d)(10)) ‘‘July 1, 2000’’. ‘‘(a) IN GENERAL.—In the case of an indi- may be taken into account under subsection (a). (5) CONFORMING AMENDMENT.—Section vidual, there shall be allowed as a deduction an ‘‘(e) DEDUCTION NOT AVAILABLE FOR PAY- 415(b)(2) is amended by striking subparagraph amount equal to the applicable percentage of MENT OF ANCILLARY COVERAGE PREMIUMS.— (F). the amount paid during the taxable year for in- Any amount paid as a premium for insurance (b) DEFINED CONTRIBUTION PLANS.— surance which constitutes medical care for the which provides for— (1) DOLLAR LIMIT.—Subparagraph (A) of sec- taxpayer and the taxpayer’s spouse and depend- ‘‘(1) coverage for accidents, disability, dental tion 415(c)(1) (relating to limitation for defined ents. care, vision care, or a specified illness, or contribution plans) is amended by striking ‘‘(b) APPLICABLE PERCENTAGE.—For purposes ‘‘(2) making payments of a fixed amount per ‘‘$30,000’’ and inserting ‘‘$40,000’’. of subsection (a), the applicable percentage day (or other period) by reason of being hos- (2) COST-OF-LIVING ADJUSTMENTS.—Subsection shall be determined in accordance with the fol- pitalized, (d) of section 415 (related to cost-of-living ad- lowing table: shall not be taken into account under sub- justments) is amended— ‘‘For taxable years be- The applicable section (a). (A) by striking ‘‘$30,000’’ in paragraph (1)(C) ‘‘(f ) SPECIAL RULES.— ginning in calendar percentage is— and inserting ‘‘$40,000’’, and ‘‘(1) COORDINATION WITH DEDUCTION FOR year— (B) in paragraph (3)(D)— HEALTH INSURANCE COSTS OF SELF-EMPLOYED IN- 2002, 2003, and 2004 (i) by striking ‘‘$30,000’’ in the heading and DIVIDUALS.—The amount taken into account by 25 inserting ‘‘$40,000’’, and the taxpayer in computing the deduction under 2005 ...... 35 (ii) by striking ‘‘October 1, 1993’’ and inserting 2006 ...... 65 section 162(l) shall not be taken into account ‘‘July 1, 2000’’. 2007 and thereafter ...... 100 under this section. (c) QUALIFIED TRUSTS.— ‘‘(c) LIMITATION BASED ON OTHER COV- ‘‘(2) COORDINATION WITH MEDICAL EXPENSE (1) COMPENSATION LIMIT.—Sections 401(a)(17), DEDUCTION.—The amount taken into account by ERAGE.— 404(l), 408(k), and 505(b)(7) are each amended by ‘‘(1) COVERAGE UNDER CERTAIN SUBSIDIZED the taxpayer in computing the deduction under striking ‘‘$150,000’’ each place it appears and in- EMPLOYER PLANS.— this section shall not be taken into account serting ‘‘$200,000’’. ‘‘(A) IN GENERAL.—Subsection (a) shall not under section 213. (2) BASE PERIOD AND ROUNDING OF COST-OF- apply to any taxpayer for any calendar month ‘‘(g) REGULATIONS.—The Secretary shall pre- for which the taxpayer participates in any scribe such regulations as may be appropriate to LIVING ADJUSTMENT.—Subparagraph (B) of sec- health plan maintained by any employer of the carry out this section, including regulations re- tion 401(a)(17) is amended— taxpayer or of the spouse of the taxpayer if 50 quiring employers to report to their employees (A) by striking ‘‘October 1, 1993’’ and insert- percent or more of the cost of coverage under and the Secretary such information as the Sec- ing ‘‘July 1, 2000’’, and (B) by striking ‘‘$10,000’’ both places it ap- such plan (determined under section 4980B and retary determines to be appropriate.’’. pears and inserting ‘‘$5,000’’. without regard to payments made with respect (b) DEDUCTION ALLOWED WHETHER OR NOT (d) ELECTIVE DEFERRALS.— to any coverage described in subsection (e)) is TAXPAYER ITEMIZES OTHER DEDUCTIONS.—Sub- (1) IN GENERAL.—Paragraph (1) of section paid or incurred by the employer. section (a) of section 62 is amended by inserting 402(g) (relating to limitation on exclusion for ‘‘(B) EMPLOYER CONTRIBUTIONS TO CAFETERIA after paragraph (17) the following new item: elective deferrals) is amended to read as follows: PLANS, FLEXIBLE SPENDING ARRANGEMENTS, AND ‘‘(18) HEALTH AND LONG-TERM CARE INSURANCE ‘‘(1) IN GENERAL.— MEDICAL SAVINGS ACCOUNTS.—Employer con- COSTS.—The deduction allowed by section 222.’’. ‘‘(A) LIMITATION.—Notwithstanding sub- tributions to a cafeteria plan, a flexible spend- (c) CLERICAL AMENDMENT.—The table of sec- sections (e)(3) and (h)(1)(B), the elective defer- ing or similar arrangement, or a medical savings tions for part VII of subchapter B of chapter 1 rals of any individual for any taxable year shall account which are excluded from gross income is amended by striking the last item and insert- be included in such individual’s gross income to under section 106 shall be treated for purposes ing the following new items: the extent the amount of such deferrals for the of subparagraph (A) as paid by the employer. ‘‘Sec. 222. Health and long-term care insurance taxable year exceeds the applicable dollar ‘‘(C) AGGREGATION OF PLANS OF EMPLOYER.— costs. A health plan which is not otherwise described ‘‘Sec. 223. Cross reference.’’. amount. ‘‘(B) APPLICABLE DOLLAR AMOUNT.—For pur- in subparagraph (A) shall be treated as de- (d) EFFECTIVE DATE.—The amendments made poses of subparagraph (A), the applicable dollar scribed in such subparagraph if such plan by this section shall apply to taxable years be- amount shall be the amount determined in ac- would be so described if all health plans of per- ginning after December 31, 2000. cordance with the following table: sons treated as a single employer under sub- Subtitle C—Pension Tax Relief ‘‘For taxable years be- The applicable dollar section (b), (c), (m), or (o) of section 414 were PART I—EXPANDING COVERAGE treated as one health plan. ginning in calendar amount: ‘‘(D) SEPARATE APPLICATION TO HEALTH IN- SEC. 1321. INCREASE IN BENEFIT AND CONTRIBU- year: TION LIMITS. SURANCE AND LONG-TERM CARE INSURANCE.— 2001 ...... 11,000 (a) DEFINED BENEFIT PLANS.— Subparagraphs (A) and (C) shall be applied sep- 2002 ...... 12,000 (1) DOLLAR LIMIT.— arately with respect to— (A) Subparagraph (A) of section 415(b)(1) (re- 2003 ...... 13,000 2004 ...... 14,000 ‘‘(i) plans which include primarily coverage lating to limitation for defined benefit plans) is 2005 or thereafter ...... $15,000.’’ for qualified long-term care services or are amended by striking ‘‘$90,000’’ and inserting qualified long-term care insurance contracts, ‘‘$160,000’’. (2) COST-OF-LIVING ADJUSTMENT.—Paragraph and (B) Subparagraphs (C) and (D) of section (5) of section 402(g) is amended to read as fol- ‘‘(ii) plans which do not include such cov- 415(b)(2) are each amended by striking ‘‘$90,000’’ lows: erage and are not such contracts. each place it appears in the headings and the ‘‘(5) COST-OF-LIVING ADJUSTMENT.—In the ‘‘(2) COVERAGE UNDER CERTAIN FEDERAL PRO- text and inserting ‘‘$160,000’’. case of taxable years beginning after December GRAMS.— (C) Paragraph (7) of section 415(b) (relating to 31, 2005, the Secretary shall adjust the $15,000 ‘‘(A) IN GENERAL.—Subsection (a) shall not benefits under certain collectively bargained amount under paragraph (1)(B) at the same apply to any amount paid for any coverage for plans) is amended by striking ‘‘the greater of time and in the same manner as under section an individual for any calendar month if, as of $68,212 or one-half the amount otherwise appli- 415(d), except that the base period shall be the the first day of such month, the individual is cable for such year under paragraph (1)(A) for calendar quarter beginning July 1, 2004, and covered under any medical care program de- ‘$90,000’ ’’ and inserting ‘‘one-half the amount any increase under this paragraph which is not scribed in— a multiple of $500 shall be rounded to the next ‘‘(i) title XVIII, XIX, or XXI of the Social Se- otherwise applicable for such year under para- lowest multiple of $500.’’. curity Act, graph (1)(A) for ‘$160,000’ ’’. ‘‘(ii) chapter 55 of title 10, United States Code, (2) LIMIT REDUCED WHEN BENEFIT BEGINS BE- (3) CONFORMING AMENDMENTS.— ‘‘(iii) chapter 17 of title 38, United States FORE AGE 62.—Subparagraph (C) of section (A) Section 402(g) (relating to limitation on ex- Code, 415(b)(2) is amended by striking ‘‘the social se- clusion for elective deferrals), as amended by ‘‘(iv) chapter 89 of title 5, United States Code, curity retirement age’’ each place it appears in paragraphs (1) and (2), is further amended by or the heading and text and inserting ‘‘age 62’’. striking paragraph (4) and redesignating para- ‘‘(v) the Indian Health Care Improvement Act. (3) LIMIT INCREASED WHEN BENEFIT BEGINS graphs (5), (6), (7), (8), and (9) as paragraphs ‘‘(B) EXCEPTIONS.— AFTER AGE 65.—Subparagraph (D) of section (4), (5), (6), (7), and (8), respectively.

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(B) Paragraph (2) of section 457(c) is amended ‘‘(A) $160,000 AMOUNT.—Any increase under (2) BENEFITS NOT TAKEN INTO ACCOUNT.—Sub- by striking ‘‘402(g)(8)(A)(iii)’’ and inserting subparagraph (A) of paragraph (1) which is not paragraph (E) of section 416(g)(4) is amended— ‘‘402(g)(7)(A)(iii)’’. a multiple of $5,000 shall be rounded to the next (A) by striking ‘‘LAST 5 YEARS’’ in the heading (C) Clause (iii) of section 501(c)(18)(D) is lowest multiple of $5,000. and inserting ‘‘LAST YEAR BEFORE DETERMINA- amended by striking ‘‘(other than paragraph (4) ‘‘(B) $40,000 AMOUNT.—Any increase under TION DATE’’, and thereof)’’. subparagraph (C) of paragraph (1) which is not (B) by striking ‘‘5-year period’’ and inserting (e) DEFERRED COMPENSATION PLANS OF STATE a multiple of $1,000 shall be rounded to the next ‘‘1-year period’’. AND LOCAL GOVERNMENTS AND TAX-EXEMPT OR- lowest multiple of $1,000.’’. (d) DEFINITION OF TOP-HEAVY PLANS.—Para- GANIZATIONS.— (h) EFFECTIVE DATE.—The amendments made graph (4) of section 416(g) (relating to other spe- (1) IN GENERAL.—Section 457 (relating to de- by this section shall apply to years beginning cial rules for top-heavy plans) is amended by ferred compensation plans of State and local after December 31, 2000. adding at the end the following new subpara- governments and tax-exempt organizations) is SEC. 1322. PLAN LOANS FOR SUBCHAPTER S OWN- graph: amended— ERS, PARTNERS, AND SOLE PROPRI- ‘‘(H) CASH OR DEFERRED ARRANGEMENTS USING (A) in subsections (b)(2)(A) and (c)(1) by strik- ETORS. ALTERNATIVE METHODS OF MEETING NON- ing ‘‘$7,500’’ each place it appears and inserting (a) AMENDMENT TO 1986 CODE.—Subpara- DISCRIMINATION REQUIREMENTS.—The term ‘top- ‘‘the applicable dollar amount’’, and graph (B) of section 4975(f )(6) (relating to ex- heavy plan’ shall not include a plan which con- (B) in subsection (b)(3)(A) by striking emptions not to apply to certain transactions) is sists solely of— ‘‘$15,000’’ and inserting ‘‘twice the dollar amended by adding at the end the following ‘‘(i) a cash or deferred arrangement which amount in effect under subsection (b)(2)(A)’’. new clause: meets the requirements of section 401(k)(12), and (2) APPLICABLE DOLLAR AMOUNT; COST-OF-LIV- ‘‘(iii) LOAN EXCEPTION.—For purposes of sub- ‘‘(ii) matching contributions with respect to ING ADJUSTMENT.—Paragraph (15) of section paragraph (A)(i), the term ‘owner-employee’ which the requirements of section 401(m)(11) are 457(e) is amended to read as follows: shall only include a person described in sub- met. ‘‘(15) APPLICABLE DOLLAR AMOUNT.— clause (II) or (III) of clause (i).’’. If, but for this subparagraph, a plan would be ‘‘(A) IN GENERAL.—The applicable dollar (b) AMENDMENT TO ERISA.—Section 408(d)(2) treated as a top-heavy plan because it is a mem- amount shall be the amount determined in ac- of the Employee Retirement Income Security Act ber of an aggregation group which is a top- cordance with the following table: of 1974 (29 U.S.C. 1108(d)(2)) is amended by add- heavy group, contributions under the plan may ‘‘For taxable years be- The applicable dollar ing at the end the following new subparagraph: be taken into account in determining whether ginning in calendar amount: ‘‘(C) For purposes of paragraph (1)(A), the any other plan in the group meets the require- year: term ‘owner-employee’ shall only include a per- ments of subsection (c)(2).’’. (e) FROZEN PLAN EXEMPT FROM MINIMUM 2001 ...... $11,000 son described in clause (ii) or (iii) of subpara- 2002 ...... $12,000 graph (A).’’. BENEFIT REQUIREMENT.—Subparagraph (C) of 2003 ...... $13,000 (c) EFFECTIVE DATE.—The amendments made section 416(c)(1) (relating to defined benefit 2004 ...... $14,000 by this section shall apply to loans made after plans) is amended— (A) by striking ‘‘clause (ii)’’ in clause (i) and 2005 or thereafter ...... $15,000. December 31, 2000. SEC. 1323. MODIFICATION OF TOP-HEAVY RULES. inserting ‘‘clause (ii) or (iii)’’, and ‘‘(B) COST-OF-LIVING ADJUSTMENTS.—In the (a) SIMPLIFICATION OF DEFINITION OF KEY (B) by adding at the end the following: case of taxable years beginning after December ‘‘(iii) EXCEPTION FOR FROZEN PLAN.—For pur- EMPLOYEE.— 31, 2005, the Secretary shall adjust the $15,000 poses of determining an employee’s years of (1) IN GENERAL.—Section 416(i)(1)(A) (defining amount specified in the table in subparagraph service with the employer, any service with the (A) at the same time and in the same manner as key employee) is amended— (A) by striking ‘‘or any of the 4 preceding employer shall be disregarded to the extent that under section 415(d), except that the base period plan years’’ in the matter preceding clause (i), such service occurs during a plan year when the shall be the calendar quarter beginning July 1, (B) by striking clause (i) and inserting the fol- plan benefits (within the meaning of section 2004, and any increase under this paragraph lowing: 410(b)) no employee or former employee.’’. which is not a multiple of $500 shall be rounded ‘‘(i) an officer of the employer having an an- (f ) ELIMINATION OF FAMILY ATTRIBUTION.— to the next lowest multiple of $500.’’. nual compensation greater than $150,000,’’, Section 416(i)(1)(B) (defining 5-percent owner) is (f ) SIMPLE RETIREMENT ACCOUNTS.— (C) by striking clause (ii) and redesignating amended by adding at the end the following (1) LIMITATION.—Clause (ii) of section clauses (iii) and (iv) as clauses (ii) and (iii), re- new clause: 408(p)(2)(A) (relating to general rule for quali- spectively, and ‘‘(iv) FAMILY ATTRIBUTION DISREGARDED.— fied salary reduction arrangement) is amended (D) by striking the second sentence in the Solely for purposes of applying this paragraph by striking ‘‘$6,000’’ and inserting ‘‘the applica- matter following clause (iii), as redesignated by (and not for purposes of any provision of this ble dollar amount’’. subparagraph (C). title which incorporates by reference the defini- (2) APPLICABLE DOLLAR AMOUNT.—Subpara- (2) CONFORMING AMENDMENT.—Section tion of a key employee or 5-percent owner under graph (E) of 408(p)(2) is amended to read as fol- 416(i)(1)(B)(iii) is amended by striking ‘‘and sub- this paragraph), section 318 shall be applied lows: paragraph (A)(ii)’’. without regard to subsection (a)(1) thereof in ‘‘(E) APPLICABLE DOLLAR AMOUNT; COST-OF- (b) MATCHING CONTRIBUTIONS TAKEN INTO AC- determining whether any person is a 5-percent LIVING ADJUSTMENT.— COUNT FOR MINIMUM CONTRIBUTION REQUIRE- owner.’’. ‘‘(i) IN GENERAL.—For purposes of subpara- MENTS.—Section 416(c)(2)(A) (relating to defined (g) EFFECTIVE DATE.—The amendments made graph (A)(ii), the applicable dollar amount shall contribution plans) is amended by adding at the by this section shall apply to years beginning be the amount determined in accordance with end the following: ‘‘Employer matching con- after December 31, 2000. the following table: tributions (as defined in section 401(m)(4)(A)) SEC. 1324. ELECTIVE DEFERRALS NOT TAKEN ‘‘For taxable years be- The applicable dollar shall be taken into account for purposes of this INTO ACCOUNT FOR PURPOSES OF DEDUCTION LIMITS. ginning in calendar amount: subparagraph.’’. (a) IN GENERAL.—Section 404 (relating to de- year: (c) DISTRIBUTIONS DURING LAST YEAR BEFORE duction for contributions of an employer to an 2001 ...... $7,000 DETERMINATION DATE TAKEN INTO ACCOUNT.— employees’ trust or annuity plan and compensa- 2002 ...... $8,000 (1) IN GENERAL.—Paragraph (3) of section 2003 ...... $9,000 416(g) is amended to read as follows: tion under a deferred payment plan) is amended 2004 or thereafter ...... $10,000. ‘‘(3) DISTRIBUTIONS DURING LAST YEAR BEFORE by adding at the end the following new sub- section: ‘‘(ii) COST-OF-LIVING ADJUSTMENT.—In the DETERMINATION DATE TAKEN INTO ACCOUNT.— ‘‘(n) ELECTIVE DEFERRALS NOT TAKEN INTO case of a year beginning after December 31, 2004, ‘‘(A) IN GENERAL.—For purposes of deter- ACCOUNT FOR PURPOSES OF DEDUCTION LIM- the Secretary shall adjust the $10,000 amount mining— ITS.—Elective deferrals (as defined in section under clause (i) at the same time and in the ‘‘(i) the present value of the cumulative ac- crued benefit for any employee, or 402(g)(3)) shall not be subject to any limitation same manner as under section 415(d), except contained in paragraph (3), (7), or (9) of sub- that the base period taken into account shall be ‘‘(ii) the amount of the account of any em- ployee, section (a), and such elective deferrals shall not the calendar quarter beginning July 1, 2003, and be taken into account in applying any such lim- such present value or amount shall be increased any increase under this subparagraph which is itation to any other contributions.’’. by the aggregate distributions made with respect not a multiple of $500 shall be rounded to the (b) EFFECTIVE DATE.—The amendment made next lower multiple of $500.’’. to such employee under the plan during the 1- by this section shall apply to years beginning (3) CONFORMING AMENDMENTS.— year period ending on the determination date. after December 31, 2000. (A) Clause (I) of section 401(k)(11)(B)(i) is The preceding sentence shall also apply to dis- SEC. 1325. REPEAL OF COORDINATION REQUIRE- amended by striking ‘‘$6,000’’ and inserting ‘‘the tributions under a terminated plan which if it MENTS FOR DEFERRED COMPENSA- amount in effect under section 408(p)(2)(A)(ii)’’. had not been terminated would have been re- TION PLANS OF STATE AND LOCAL (B) Section 401(k)(11) is amended by striking quired to be included in an aggregation group. GOVERNMENTS AND TAX-EXEMPT subparagraph (E). ‘‘(B) 5-YEAR PERIOD IN CASE OF IN-SERVICE ORGANIZATIONS. (g) ROUNDING RULE RELATING TO DEFINED DISTRIBUTION.—In the case of any distribution (a) IN GENERAL.—Subsection (c) of section 457 BENEFIT PLANS AND DEFINED CONTRIBUTION made for a reason other than separation from (relating to deferred compensation plans of PLANS.—Paragraph (4) of section 415(d) is service, death, or disability, subparagraph (A) State and local governments and tax-exempt or- amended to read as follows: shall be applied by substituting ‘5-year period’ ganizations), as amended by section 1321, is ‘‘(4) ROUNDING.— for ‘1-year period’.’’. amended to read as follows:

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‘‘(c) LIMITATION.—The maximum amount of tion of elective deferrals the employee is other- ‘‘(e) OTHER DEFINITIONS.—For purposes of the compensation of any one individual which wise eligible to make under the applicable retire- this section— may be deferred under subsection (a) during ment plan. ‘‘(1) APPLICABLE RETIREMENT PLAN.—The term any taxable year shall not exceed the amount in ‘‘(2) SEPARATE ACCOUNTING REQUIRED.—A pro- ‘applicable retirement plan’ means— effect under subsection (b)(2)(A) (as modified by gram shall not be treated as a qualified plus ‘‘(A) an employees’ trust described in section any adjustment provided under subsection contribution program unless the applicable re- 401(a) which is exempt from tax under section (b)(3)).’’. tirement plan— 501(a), and (b) EFFECTIVE DATE.—The amendment made ‘‘(A) establishes separate accounts (‘des- ‘‘(B) a plan under which amounts are contrib- by subsection (a) shall apply to years beginning ignated plus accounts’) for the designated plus uted by an individual’s employer for an annuity after December 31, 2000. contributions of each employee and any earn- contract described in section 403(b). SEC. 1326. ELIMINATION OF USER FEE FOR RE- ings properly allocable to the contributions, and ‘‘(2) ELECTIVE DEFERRAL.—The term ‘elective QUESTS TO IRS REGARDING PEN- ‘‘(B) maintains separate recordkeeping with deferral’ means any elective deferral described SION PLANS. respect to each account. in subparagraph (A) or (C) of section (a) ELIMINATION OF CERTAIN USER FEES.—The ‘‘(c) DEFINITIONS AND RULES RELATING TO 402(g)(3).’’. Secretary of the Treasury or the Secretary’s del- DESIGNATED PLUS CONTRIBUTIONS.—For pur- (b) EXCESS DEFERRALS.—Section 402(g) (relat- egate shall not require payment of user fees poses of this section— ing to limitation on exclusion for elective defer- under the program established under section ‘‘(1) DESIGNATED PLUS CONTRIBUTION.—The rals) is amended— 7527 of the Internal Revenue Code of 1986 for re- term ‘designated plus contribution’ means any (1) by adding at the end of paragraph (1) the quests to the Internal Revenue Service for deter- elective deferral which— following new sentence: ‘‘The preceding sen- ‘‘(A) is excludable from gross income of an em- mination letters with respect to the qualified tence shall not apply to so much of such excess ployee without regard to this section, and status of a pension benefit plan maintained as does not exceed the designated plus contribu- ‘‘(B) the employee designates (at such time solely by one or more eligible employers or any tions of the individual for the taxable year.’’, and in such manner as the Secretary may pre- trust which is part of the plan. The preceding and scribe) as not being so excludable. sentence shall not apply to any request— (2) by inserting ‘‘(or would be included but for ‘‘(2) DESIGNATION LIMITS.—The amount of (1) made after the 5th plan year the pension the last sentence thereof)’’ after ‘‘paragraph elective deferrals which an employee may des- (1)’’ in paragraph (2)(A). benefit plan is in existence, or ignate under paragraph (1) shall not exceed the (2) made by the sponsor of any prototype or (c) ROLLOVERS.—Subparagraph (B) of section excess (if any) of— 402(c)(8) is amended by adding at the end the similar plan which the sponsor intends to mar- ‘‘(A) the maximum amount of elective defer- ket to participating employers. following: rals excludable from gross income of the em- ‘‘If any portion of an eligible rollover distribu- (b) PENSION BENEFIT PLAN.—For purposes of ployee for the taxable year (without regard to this section, the term ‘‘pension benefit plan’’ tion is attributable to payments or distributions this section), over from a designated plus account (as defined in means a pension, profit-sharing, stock bonus, ‘‘(B) the aggregate amount of elective defer- annuity, or employee stock ownership plan. section 402A), an eligible retirement plan with rals of the employee for the taxable year which respect to such portion shall include only an- (c) ELIGIBLE EMPLOYER.—For purposes of this the employee does not designate under para- section, the term ‘‘eligible employer’’ has the other designated plus account and a Roth graph (1). IRA.’’. same meaning given such term in section ‘‘(3) ROLLOVER CONTRIBUTIONS.— (d) REPORTING REQUIREMENTS.— 408(p)(2)(C)(i)(I) of the Internal Revenue Code ‘‘(A) IN GENERAL.—A rollover contribution of (1) W–2 INFORMATION.—Section 6051(a)(8) is of 1986. The determination of whether an em- any payment or distribution from a designated amended by inserting ‘‘, including the amount ployer is an eligible employer under this section plus account which is otherwise allowable under of designated plus contributions (as defined in shall be made as of the date of the request de- this chapter may be made only if the contribu- section 402A)’’ before the comma at the end. scribed in subsection (a). tion is to— (2) INFORMATION.—Section 6047 is amended by (d) EFFECTIVE DATE.—The provisions of this ‘‘(i) another designated plus account of the redesignating subsection (f ) as subsection (g) section shall apply with respect to requests individual from whose account the payment or and by inserting after subsection (e) the fol- made after December 31, 2000. distribution was made, or lowing new subsection: SEC. 1327. DEDUCTION LIMITS. ‘‘(ii) a Roth IRA of such individual. ‘‘(B) COORDINATION WITH LIMIT.—Any rollover ‘‘(f ) DESIGNATED PLUS CONTRIBUTIONS.—The (a) IN GENERAL.—Section 404(a) (relating to Secretary shall require the plan administrator of general rule) is amended by adding at the end contribution to a designated plus account under subparagraph (A) shall not be taken into ac- each applicable retirement plan (as defined in the following: section 402A) to make such returns and reports ‘‘(12) DEFINITION OF COMPENSATION.—For pur- count for purposes of paragraph (1). ‘‘(d) DISTRIBUTION RULES.—For purposes of regarding designated plus contributions (as so poses of paragraphs (3), (7), (8), and (9), the this title— defined) to the Secretary, participants and bene- term ‘compensation’ shall include amounts ‘‘(1) EXCLUSION.—Any qualified distribution ficiaries of the plan, and such other persons as treated as participant’s compensation under from a designated plus account shall not be in- the Secretary may prescribe.’’. subparagraph (C) or (D) of section 415(c)(3).’’. cludible in gross income. (e) CONFORMING AMENDMENTS.— (b) CONFORMING AMENDMENT.—Subparagraph ‘‘(2) QUALIFIED DISTRIBUTION.—For purposes (1) Section 408A(e) is amended by adding after (B) of section 404(a)(3) is amended by striking of this subsection— the first sentence the following new sentence: the last sentence thereof. ‘‘(A) IN GENERAL.—The term ‘qualified dis- ‘‘Such term includes a rollover contribution de- (c) EFFECTIVE DATE.—The amendments made tribution’ has the meaning given such term by scribed in section 402A(c)(3)(A).’’. by this section shall apply to years beginning section 408A(d)(2)(A) (without regard to clause (2) The table of sections for subpart A of part after December 31, 2000. (iv) thereof). I of subchapter D of chapter 1 is amended by in- SEC. 1328. OPTION TO TREAT ELECTIVE DEFER- ‘‘(B) DISTRIBUTIONS WITHIN NONEXCLUSION PE- serting after the item relating to section 402 the RALS AS AFTER-TAX CONTRIBU- RIOD.—A payment or distribution from a des- following new item: TIONS. ignated plus account shall not be treated as a ‘‘Sec. 402A. Optional treatment of elective de- (a) IN GENERAL.—Subpart A of part I of sub- qualified distribution if such payment or dis- ferrals as plus contributions.’’. chapter D of chapter 1 (relating to deferred com- tribution is made within the 5-taxable-year pe- pensation, etc.) is amended by inserting after (f ) EFFECTIVE DATE.—The amendments made riod beginning with the earlier of— by this section shall apply to taxable years be- section 402 the following new section: ‘‘(i) the first taxable year for which the indi- ginning after December 31, 2000. ‘‘SEC. 402A. OPTIONAL TREATMENT OF ELECTIVE vidual made a designated plus contribution to DEFERRALS AS PLUS CONTRIBU- any designated plus account established for PART II—ENHANCING FAIRNESS FOR TIONS. such individual under the same applicable re- WOMEN ‘‘(a) GENERAL RULE.—If an applicable retire- tirement plan, or SEC. 1331. CATCHUP CONTRIBUTIONS FOR INDI- ment plan includes a qualified plus contribution ‘‘(ii) if a rollover contribution was made to VIDUALS AGE 50 OR OVER. program— such designated plus account from a designated (a) IN GENERAL.—Section 414 (relating to defi- ‘‘(1) any designated plus contribution made by plus account previously established for such in- nitions and special rules) is amended by adding an employee pursuant to the program shall be dividual under another applicable retirement at the end the following new subsection: treated as an elective deferral for purposes of plan, the first taxable year for which the indi- ‘‘(v) CATCHUP CONTRIBUTIONS FOR INDIVID- this chapter, except that such contribution shall vidual made a designated plus contribution to UALS AGE 50 OR OVER.— not be excludable from gross income, and such previously established account. ‘‘(1) IN GENERAL.—An applicable employer ‘‘(2) such plan (and any arrangement which is ‘‘(C) DISTRIBUTIONS OF EXCESS DEFERRALS plan shall not be treated as failing to meet any part of such plan) shall not be treated as failing AND EARNINGS.—The term ‘qualified distribution’ requirement of this title solely because the plan to meet any requirement of this chapter solely shall not include any distribution of any excess permits an eligible participant to make addi- by reason of including such program. deferral under section 402(g)(2) and any income tional elective deferrals in any plan year. ‘‘(b) QUALIFIED PLUS CONTRIBUTION PRO- on the excess deferral. ‘‘(2) LIMITATION ON AMOUNT OF ADDITIONAL GRAM.—For purposes of this section— ‘‘(3) AGGREGATION RULES.—Section 72 shall be DEFERRALS.— ‘‘(1) IN GENERAL.—The term ‘qualified plus applied separately with respect to distributions ‘‘(A) IN GENERAL.—A plan shall not permit ad- contribution program’ means a program under and payments from a designated plus account ditional elective deferrals under paragraph (1) which an employee may elect to make des- and other distributions and payments from the for any year in an amount greater than the less- ignated plus contributions in lieu of all or a por- plan. er of—

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‘‘(i) the applicable percentage of the applica- tribution plans) is amended by striking ‘‘25 per- (A) IN GENERAL.—The amendment made by ble dollar amount for such elective deferrals for cent’’ and inserting ‘‘100 percent’’. paragraph (1) shall apply to limitation years be- such year, or (2) APPLICATION TO SECTION 403(b).—Section ginning after December 31, 1999. ‘‘(ii) the excess (if any) of— 403(b) is amended— (B) EXCLUSION ALLOWANCE.—Effective for lim- ‘‘(I) the participant’s compensation for the (A) by striking ‘‘the exclusion allowance for itation years beginning in 2000, in the case of year, over such taxable year’’ in paragraph (1) and insert- any annuity contract described in section 403(b) ‘‘(II) any other elective deferrals of the partic- ing ‘‘the applicable limit under section 415’’, of the Internal Revenue Code of 1986, the ipant for such year which are made without re- (B) by striking paragraph (2), and amount of the contribution disqualified by rea- gard to this subsection. (C) by inserting ‘‘or any amount received by a son of section 415(g) of such Code shall reduce ‘‘(B) APPLICABLE PERCENTAGE.—For purposes former employee after the 5th taxable year fol- the exclusion allowance as provided in section of this paragraph, the applicable percentage lowing the taxable year in which such employee 403(b)(2) of such Code. shall be determined in accordance with the fol- was terminated’’ before the period at the end of (3) MODIFICATION OF 403(b) EXCLUSION ALLOW- lowing table: the second sentence of paragraph (3). ANCE TO CONFORM TO 415 MODIFICATION.—The ‘‘For taxable years be- The applicable (3) CONFORMING AMENDMENTS.— Secretary of the Treasury shall modify the regu- ginning in: percentage is: (A) Subsection (f ) of section 72 is amended by lations regarding the exclusion allowance under 2001 ...... 10 striking ‘‘section 403(b)(2)(D)(iii))’’ and insert- section 403(b)(2) of the Internal Revenue Code of 2002 ...... 20 ing ‘‘section 403(b)(2)(D)(iii), as in effect before 1986 to render void the requirement that con- 2003 ...... 30 the enactment of the Taxpayer Refund and Re- tributions to a defined benefit pension plan be 2004 ...... 40 lief Act of 1999)’’. treated as previously excluded amounts for pur- 2005 and thereafter ...... 50. (B) Section 404(a)(10)(B) is amended by strik- poses of the exclusion allowance. For taxable ing ‘‘, the exclusion allowance under section years beginning after December 31, 1999, such ‘‘(3) TREATMENT OF CONTRIBUTIONS.—In the 403(b)(2),’’. case of any contribution to a plan under para- regulations shall be applied as if such require- (C) Section 415(a)(2) is amended by striking ‘‘, ment were void. graph (1)— and the amount of the contribution for such ‘‘(A) such contribution shall not, with respect (c) DEFERRED COMPENSATION PLANS OF STATE portion shall reduce the exclusion allowance as AND LOCAL GOVERNMENTS AND TAX-EXEMPT OR- to the year in which the contribution is made— provided in section 403(b)(2)’’. ‘‘(i) be subject to any otherwise applicable GANIZATIONS.— (D) Section 415(c)(3) is amended by adding at (1) IN GENERAL.—Subparagraph (B) of section limitation contained in section 402(g), 402(h), the end the following new subparagraph: 403(b), 404(a), 404(h), 408, 415, or 457, or 457(b)(2) (relating to salary limitation on eligible ‘‘(E) ANNUITY CONTRACTS.—In the case of an deferred compensation plans) is amended by ‘‘(ii) be taken into account in applying such annuity contract described in section 403(b), the striking ‘‘331⁄3 percent’’ and inserting ‘‘100 per- limitations to other contributions or benefits term ‘participant’s compensation’ means the under such plan or any other such plan, and cent’’. participant’s includible compensation deter- (2) EFFECTIVE DATE.—The amendment made ‘‘(B) such plan shall not be treated as failing mined under section 403(b)(3).’’. to meet the requirements of section 401(a)(4), by this subsection shall apply to years begin- (E) Section 415(c) is amended by striking para- ning after December 31, 2000. 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), graph (4). 401(m), 403(b)(12), 408(k), 408(p), 408B, 410(b), or (F) Section 415(c)(7) is amended to read as fol- SEC. 1333. FASTER VESTING OF CERTAIN EM- 416 by reason of the making of (or the right to PLOYER MATCHING CONTRIBU- lows: TIONS. make) such contribution. ‘‘(7) CERTAIN CONTRIBUTIONS BY CHURCH (a) AMENDMENTS TO 1986 CODE.—Section ‘‘(4) ELIGIBLE PARTICIPANT.—For purposes of PLANS NOT TREATED AS EXCEEDING LIMIT.— 411(a) (relating to minimum vesting standards) this subsection, the term ‘eligible participant’ ‘‘(A) IN GENERAL.—Notwithstanding any other is amended— means, with respect to any plan year, a partici- provision of this subsection, at the election of a pant in a plan— (1) in paragraph (2), by striking ‘‘A plan’’ and participant who is an employee of a church or inserting ‘‘Except as provided in paragraph (12), ‘‘(A) who has attained the age of 50 before the a convention or association of churches, includ- close of the plan year, and a plan’’, and ing an organization described in section (2) by adding at the end the following: ‘‘(B) with respect to whom no other elective 414(e)(3)(B)(ii), contributions and other addi- ‘‘(12) FASTER VESTING FOR MATCHING CON- deferrals may (without regard to this sub- tions for an annuity contract or retirement in- TRIBUTIONS.—In the case of matching contribu- section) be made to the plan for the plan year come account described in section 403(b) with re- by reason of the application of any limitation or tions (as defined in section 401(m)(4)(A)), para- spect to such participant, when expressed as an graph (2) shall be applied— other restriction described in paragraph (3) or annual addition to such participant’s account, contained in the terms of the plan. ‘‘(A) by substituting ‘3 years’ for ‘5 years’ in shall be treated as not exceeding the limitation subparagraph (A), and ‘‘(5) OTHER DEFINITIONS AND RULES.—For pur- of paragraph (1) if such annual addition is not poses of this subsection— ‘‘(B) by substituting the following table for in excess of $10,000. the table contained in subparagraph (B): ‘‘(A) APPLICABLE DOLLAR AMOUNT.—The term ‘‘(B) $40,000 AGGREGATE LIMITATION.—The ‘applicable dollar amount’ means, with respect total amount of additions with respect to any The nonforfeitable to any year, the amount in effect under section participant which may be taken into account ‘‘Years of service: percentage is: 402(g)(1)(B), 408(p)(2)(E)(i), or 457(e)(15)(A), for purposes of this subparagraph for all years 2 ...... 20 whichever is applicable to an applicable em- may not exceed $40,000. 3 ...... 40 ployer plan, for such year. ‘‘(C) ANNUAL ADDITION.—For purposes of this 4 ...... 60 ‘‘(B) APPLICABLE EMPLOYER PLAN.—The term paragraph, the term ‘annual addition’ has the 5 ...... 80 ‘applicable employer plan’ means— meaning given such term by paragraph (2).’’. 6 ...... 100.’’. ‘‘(i) an employees’ trust described in section (G) Subparagraph (B) of section 402(g)(7) (as (b) AMENDMENTS TO ERISA.—Section 203(a) of 401(a) which is exempt from tax under section redesignated by section 1201) is amended by in- the Employee Retirement Income Security Act of 501(a), serting before the period at the end the fol- 1974 (29 U.S.C. 1053(a)) is amended— ‘‘(ii) a plan under which amounts are contrib- lowing: ‘‘(as in effect before the enactment of (1) in paragraph (2), by striking ‘‘A plan’’ and uted by an individual’s employer for an annuity the Taxpayer Refund and Relief Act of 1999)’’. inserting ‘‘Except as provided in paragraph (4), contract described in section 403(b), (3) EFFECTIVE DATE.—The amendments made a plan’’, and ‘‘(iii) an eligible deferred compensation plan by this subsection shall apply to years begin- (2) by adding at the end the following: under section 457 of an eligible employer as de- ning after December 31, 2000. ‘‘(4) FASTER VESTING FOR MATCHING CONTRIBU- fined in section 457(e)(1)(A), and (b) SPECIAL RULES FOR SECTIONS 403(b) AND TIONS.—In the case of matching contributions ‘‘(iv) an arrangement meeting the require- 408.— (as defined in section 401(m)(4)(A) of the Inter- ments of section 408 (k) or (p). (1) IN GENERAL.—Subsection (k) of section 415 nal Revenue Code of 1986), paragraph (2) shall ‘‘(C) ELECTIVE DEFERRAL.—The term ‘elective is amended by adding at the end the following be applied— deferral’ has the meaning given such term by new paragraph: ‘‘(A) by substituting ‘3 years’ for ‘5 years’ in subsection (u)(2)(C). ‘‘(4) SPECIAL RULES FOR SECTIONS 403(b) AND subparagraph (A), and ‘‘(D) EXCEPTION FOR SECTION 457 PLANS.—This 408.—For purposes of this section, any annuity ‘‘(B) by substituting the following table for subsection shall not apply to an applicable em- contract described in section 403(b) for the ben- the table contained in subparagraph (B): ployer plan described in subparagraph (B)(iii) efit of a participant shall be treated as a defined The nonforfeitable for any year to which section 457(b)(3) ap- contribution plan maintained by each employer ‘‘Years of service: percentage is: plies.’’. with respect to which the participant has the 2 ...... 20 (b) EFFECTIVE DATE.—The amendment made control required under subsection (b) or (c) of 3 ...... 40 by this section shall apply to contributions in section 414 (as modified by subsection (h)). For 4 ...... 60 taxable years beginning after December 31, 2000. purposes of this section, any contribution by an 5 ...... 80 SEC. 1332. EQUITABLE TREATMENT FOR CON- employer to a simplified employee pension plan 6 ...... 100.’’. TRIBUTIONS OF EMPLOYEES TO DE- for an individual for a taxable year shall be (c) EFFECTIVE DATES.— FINED CONTRIBUTION PLANS. treated as an employer contribution to a defined (1) IN GENERAL.—Except as provided in para- (a) EQUITABLE TREATMENT.— contribution plan for such individual for such graph (2), the amendments made by this section (1) IN GENERAL.—Subparagraph (B) of section year.’’. shall apply to contributions for plan years be- 415(c)(1) (relating to limitation for defined con- (2) EFFECTIVE DATE.— ginning after December 31, 2000.

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(2) COLLECTIVE BARGAINING AGREEMENTS.—In (c) REDUCTION IN EXCISE TAX.— paragraph (4)(C)) and (9) of section 402(c) and the case of a plan maintained pursuant to one (1) IN GENERAL.—Subsection (a) of section 4974 section 402(f ) shall apply for purposes of sub- or more collective bargaining agreements be- is amended by striking ‘‘50 percent’’ and insert- paragraph (A). tween employee representatives and one or more ing ‘‘10 percent’’. ‘‘(C) REPORTING.—Rollovers under this para- employers ratified by the date of the enactment (2) EFFECTIVE DATE.—The amendment made graph shall be reported to the Secretary in the of this Act, the amendments made by this sec- by this subsection shall apply to years begin- same manner as rollovers from qualified retire- tion shall not apply to contributions on behalf ning after December 31, 2000. ment plans (as defined in section 4974(c)).’’. of employees covered by any such agreement for SEC. 1335. CLARIFICATION OF TAX TREATMENT (B) DEFERRAL LIMIT DETERMINED WITHOUT RE- plan years beginning before the earlier of— OF DIVISION OF SECTION 457 PLAN GARD TO ROLLOVER AMOUNTS.—Section 457(b)(2) (A) the later of— BENEFITS UPON DIVORCE. (defining eligible deferred compensation plan) is (i) the date on which the last of such collec- (a) IN GENERAL.—Section 414(p)(11) (relating amended by inserting ‘‘(other than rollover tive bargaining agreements terminates (deter- to application of rules to governmental and amounts)’’ after ‘‘taxable year’’. mined without regard to any extension thereof church plans) is amended— (C) DIRECT ROLLOVER.—Paragraph (1) of sec- on or after such date of the enactment), or (1) by inserting ‘‘or an eligible deferred com- tion 457(d) is amended by striking ‘‘and’’ at the (ii) January 1, 2001, or pensation plan (within the meaning of section end of subparagraph (A), by striking the period (B) January 1, 2005. 457(b))’’ after ‘‘subsection (e))’’, and (3) SERVICE REQUIRED.—With respect to any at the end of subparagraph (B) and inserting ‘‘, (2) in the heading, by striking ‘‘GOVERN- plan, the amendments made by this section shall and’’, and by inserting after subparagraph (B) MENTAL AND CHURCH PLANS’’ and inserting not apply to any employee before the date that the following: ‘‘CERTAIN OTHER PLANS’’. such employee has 1 hour of service under such ‘‘(C) in the case of a plan maintained by an (b) WAIVER OF CERTAIN DISTRIBUTION RE- plan in any plan year to which the amendments employer described in subsection (e)(1)(A), the QUIREMENTS.—Paragraph (10) of section 414(p) made by this section apply. plan meets requirements similar to the require- is amended by striking ‘‘and section 409(d)’’ and ments of section 401(a)(31). SEC. 1334. SIMPLIFY AND UPDATE THE MINIMUM inserting ‘‘section 409(d), and section 457(d)’’. DISTRIBUTION RULES. Any amount transferred in a direct trustee-to- (c) TAX TREATMENT OF PAYMENTS FROM A (a) SIMPLIFICATION AND FINALIZATION OF MIN- trustee transfer in accordance with section SECTION 457 PLAN.—Subsection (p) of section 414 IMUM DISTRIBUTION REQUIREMENTS.— 401(a)(31) shall not be includible in gross income (1) IN GENERAL.—The Secretary of the Treas- is amended by redesignating paragraph (12) as for the taxable year of transfer.’’. paragraph (13) and inserting after paragraph ury shall— (D) WITHHOLDING.— (A) simplify and finalize the regulations relat- (11) the following new paragraph: (i) Paragraph (12) of section 3401(a) is amend- ing to minimum distribution requirements under ‘‘(12) TAX TREATMENT OF PAYMENTS FROM A ed by adding at the end the following: sections 401(a)(9), 408(a)(6) and (b)(3), SECTION 457 PLAN.—If a distribution or payment ‘‘(E) under or to an eligible deferred com- 403(b)(10), and 457(d)(2) of the Internal Revenue from an eligible deferred compensation plan de- pensation plan which, at the time of such pay- Code of 1986, and scribed in section 457(b) is made pursuant to a ment, is a plan described in section 457(b) main- (B) modify such regulations to— qualified domestic relations order, rules similar tained by an employer described in section (i) reflect current life expectancy, and to the rules of section 402(e)(1)(A) shall apply to 457(e)(1)(A); or’’. (ii) revise the required distribution methods so such distribution or payment.’’. (ii) Paragraph (3) of section 3405(c) is amend- that, under reasonable assumptions, the amount (d) EFFECTIVE DATE.—The amendments made ed to read as follows: of the required minimum distribution does not by this section shall apply to transfers, distribu- ‘‘(3) ELIGIBLE ROLLOVER DISTRIBUTION.—For decrease over a participant’s life expectancy. tions, and payments made after December 31, purposes of this subsection, the term ‘eligible (2) FRESH START.—Notwithstanding subpara- 2000. graph (D) of section 401(a)(9) of such Code, dur- rollover distribution’ has the meaning given SEC. 1336. MODIFICATION OF SAFE HARBOR RE- such term by section 402(f )(2)(A).’’. ing the first year that regulations are in effect LIEF FOR HARDSHIP WITHDRAWALS (iii) LIABILITY FOR WITHHOLDING.—Subpara- under this subsection, required distributions for FROM CASH OR DEFERRED AR- future years may be redetermined to reflect RANGEMENTS. graph (B) of section 3405(d)(2) is amended by striking ‘‘or’’ at the end of clause (ii), by strik- changes under such regulations. Such redeter- (a) IN GENERAL.—The Secretary of the Treas- mination shall include the opportunity to ury shall revise the regulations relating to hard- ing the period at the end of clause (iii) and in- choose a new designated beneficiary and to elect ship distributions under section serting ‘‘, or’’, and by adding at the end the fol- a new method of calculating life expectancy. 401(k)(2)(B)(i)(IV) of the Internal Revenue Code lowing: (3) EFFECTIVE DATE FOR REGULATIONS.—Regu- of 1986 to provide that the period an employee is ‘‘(iv) section 457(b).’’. lations referred to in paragraph (1) shall be ef- prohibited from making elective and employee (2) ROLLOVERS TO SECTION 457 PLANS.— fective for years beginning after December 31, contributions in order for a distribution to be (A) IN GENERAL.—Section 402(c)(8)(B) (defin- 2000, and shall apply in such years without re- deemed necessary to satisfy financial need shall ing eligible retirement plan) is amended by strik- gard to whether an individual had previously be equal to 6 months. ing ‘‘and’’ at the end of clause (iii), by striking the period at the end of clause (iv) and inserting begun receiving minimum distributions. (b) EFFECTIVE DATE.—The revised regulations (b) REPEAL OF RULE WHERE DISTRIBUTIONS under subsection (a) shall apply to years begin- ‘‘, and’’, and by inserting after clause (iv) the HAD BEGUN BEFORE DEATH OCCURS.— ning after December 31, 2000. following new clause: (1) IN GENERAL.—Subparagraph (B) of section ‘‘(v) an eligible deferred compensation plan 401(a)(9) is amended by striking clause (i) and PART III—INCREASING PORTABILITY FOR described in section 457(b) of an employer de- redesignating clauses (ii), (iii), and (iv) as PARTICIPANTS scribed in section 457(e)(1)(A).’’. clauses (i), (ii), and (iii), respectively. SEC. 1341. ROLLOVERS ALLOWED AMONG VAR- (B) SEPARATE ACCOUNTING.—Section 402(c) is (2) CONFORMING CHANGES.— IOUS TYPES OF PLANS. amended by adding at the end the following (A) Clause (i) of section 401(a)(9)(B) (as so re- (a) ROLLOVERS FROM AND TO SECTION 457 new paragraph: designated) is amended— PLANS.— ‘‘(11) SEPARATE ACCOUNTING.—Unless a plan (i) by striking ‘‘FOR OTHER CASES’’ in the (1) ROLLOVERS FROM SECTION 457 PLANS.— described in clause (v) of paragraph (8)(B) heading, and (A) IN GENERAL.—Section 457(e) (relating to agrees to separately account for amounts rolled (ii) by striking ‘‘the distribution of the em- other definitions and special rules) is amended into such plan from eligible retirement plans not ployee’s interest has begun in accordance with by adding at the end the following: described in such clause, the plan described in subparagraph (A)(ii)’’ and inserting ‘‘his entire ‘‘(16) ROLLOVER AMOUNTS.— such clause may not accept transfers or roll- interest has been distributed to him,’’. ‘‘(A) GENERAL RULE.—In the case of an eligi- overs from such retirement plans.’’. (B) Clause (ii) of section 401(a)(9)(B) (as so re- ble deferred compensation plan established and (C) 10 PERCENT ADDITIONAL TAX.—Subsection designated) is amended by striking ‘‘clause (ii)’’ maintained by an employer described in sub- (t) of section 72 (relating to 10-percent addi- and inserting ‘‘clause (i)’’. section (e)(1)(A), if— tional tax on early distributions from qualified (C) Clause (iii) of section 401(a)(9)(B) (as so ‘‘(i) any portion of the balance to the credit of retirement plans) is amended by adding at the redesignated) is amended— an employee in such plan is paid to such em- (i) by striking ‘‘clause (iii)(I)’’ and inserting end the following new paragraph: ployee in an eligible rollover distribution (within ‘‘(9) SPECIAL RULE FOR ROLLOVERS TO SECTION ‘‘clause (ii)(I)’’, the meaning of section 402(c)(4) without regard (ii) by striking ‘‘clause (iii)(III)’’ in subclause 457 PLANS.—For purposes of this subsection, a to subparagraph (C) thereof), (I) and inserting ‘‘clause (ii)(III)’’, distribution from an eligible deferred compensa- (iii) by striking ‘‘the date on which the em- ‘‘(ii) the employee transfers any portion of the tion plan (as defined in section 457(b)) of an em- property such employee receives in such dis- ployee would have attained the age 701⁄2,’’ in ployer described in section 457(e)(1)(A) shall be subclause (I) and inserting ‘‘April 1 of the cal- tribution to an eligible retirement plan described treated as a distribution from a qualified retire- endar year following the calendar year in which in section 402(c)(8)(B), and ment plan described in 4974(c)(1) to the extent ‘‘(iii) in the case of a distribution of property the spouse attains 701⁄2,’’, and that such distribution is attributable to an (iv) by striking ‘‘the distributions to such other than money, the amount so transferred amount transferred to an eligible deferred com- spouse begin,’’ in subclause (II) and inserting consists of the property distributed, pensation plan from a qualified retirement plan ‘‘his entire interest has been distributed to then such distribution (to the extent so trans- (as defined in section 4974(c)).’’. him,’’. ferred) shall not be includible in gross income (b) ALLOWANCE OF ROLLOVERS FROM AND TO (3) EFFECTIVE DATE.—The amendments made for the taxable year in which paid. 403 (b) PLANS.— by this subsection shall apply to years begin- ‘‘(B) CERTAIN RULES MADE APPLICABLE.—The (1) ROLLOVERS FROM SECTION 403 (b) PLANS.— ning after December 31, 2000. rules of paragraphs (2) through (7) (other than Section 403(b)(8)(A)(ii) (relating to rollover

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00086 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S431 amounts) is amended by striking ‘‘such distribu- behalf of such individual which is permitted ‘‘(ii) is an eligible retirement plan described in tion’’ and all that follows and inserting ‘‘such solely by reason of any amendment made by this clause (i) or (ii) of section 402(c)(8)(B).’’. distribution to an eligible retirement plan de- section. (c) RULES FOR APPLYING SECTION 72 TO scribed in section 402(c)(8)(B), and’’. SEC. 1342. ROLLOVERS OF IRAS INTO WORKPLACE IRAS.—Paragraph (3) of section 408(d) (relating (2) ROLLOVERS TO SECTION 403 (b) PLANS.—Sec- RETIREMENT PLANS. to special rules for applying section 72) is tion 402(c)(8)(B) (defining eligible retirement (a) IN GENERAL.—Subparagraph (A) of section amended by inserting at the end the following: plan), as amended by subsection (a), is amended 408(d)(3) (relating to rollover amounts) is ‘‘(H) APPLICATION OF SECTION 72.— by striking ‘‘and’’ at the end of clause (iv), by amended by adding ‘‘or’’ at the end of clause ‘‘(i) IN GENERAL.—If— striking the period at the end of clause (v) and (i), by striking clauses (ii) and (iii), and by add- ‘‘(I) a distribution is made from an individual inserting ‘‘, and’’, and by inserting after clause ing at the end the following: retirement plan, and (v) the following new clause: ‘‘(ii) the entire amount received (including ‘‘(II) a rollover contribution is made to an eli- ‘‘(vi) an annuity contract described in section money and any other property) is paid into an gible retirement plan described in section 403(b).’’. eligible retirement plan for the benefit of such 402(c)(8)(B)(iii), (iv), (v), or (vi) with respect to (c) EXPANDED EXPLANATION TO RECIPIENTS OF individual not later than the 60th day after the all or part of such distribution, ROLLOVER DISTRIBUTIONS.—Paragraph (1) of date on which the payment or distribution is re- then, notwithstanding paragraph (2), the rules section 402(f ) (relating to written explanation to ceived, except that the maximum amount which of clause (ii) shall apply for purposes of apply- recipients of distributions eligible for rollover may be paid into such plan may not exceed the ing section 72. treatment) is amended by striking ‘‘and’’ at the portion of the amount received which is includ- ‘‘(ii) APPLICABLE RULES.—In the case of a dis- end of subparagraph (C), by striking the period ible in gross income (determined without regard tribution described in clause (i)— at the end of subparagraph (D) and inserting ‘‘, to this paragraph). ‘‘(I) section 72 shall be applied separately to and’’, and by adding at the end the following For purposes of clause (ii), the term ‘eligible re- such distribution, new subparagraph: tirement plan’ means an eligible retirement plan ‘‘(II) notwithstanding the pro rata allocation ‘‘(E) of the provisions under which distribu- described in clause (iii), (iv), (v), or (vi) of sec- of income on, and investment in, the contract to tions from the eligible retirement plan receiving tion 402(c)(8)(B).’’. distributions under section 72, the portion of the distribution may be subject to restrictions (b) CONFORMING AMENDMENTS.— such distribution rolled over to an eligible retire- and tax consequences which are different from (1) Paragraph (1) of section 403(b) is amended ment plan described in clause (i) shall be treated those applicable to distributions from the plan by striking ‘‘section 408(d)(3)(A)(iii)’’ and in- as from income on the contract (to the extent of making such distribution.’’. serting ‘‘section 408(d)(3)(A)(ii)’’. the aggregate income on the contract from all (d) SPOUSAL ROLLOVERS.—Section 402(c)(9) (2) Clause (i) of section 408(d)(3)(D) is amend- individual retirement plans of the distributee), (relating to rollover where spouse receives dis- ed by striking ‘‘(i), (ii), or (iii)’’ and inserting and tribution after death of employee) is amended by ‘‘(i) or (ii)’’. ‘‘(III) appropriate adjustments shall be made striking ‘‘; except that’’ and all that follows up (3) Subparagraph (G) of section 408(d)(3) is in applying section 72 to other distributions in to the end period. amended to read as follows: such taxable year and subsequent taxable (e) CONFORMING AMENDMENTS.— ‘‘(G) SIMPLE RETIREMENT ACCOUNTS.—In the years.’’. (1) Section 72(o)(4) is amended by striking case of any payment or distribution out of a (d) EFFECTIVE DATE.—The amendments made ‘‘and 408(d)(3)’’ and inserting ‘‘403(b)(8), simple retirement account (as defined in sub- by this section shall apply to distributions made 408(d)(3), and 457(e)(16)’’. section (p)) to which section 72(t)(6) applies, this after December 31, 2000. (2) Section 219(d)(2) is amended by striking paragraph shall not apply unless such payment ‘‘or 408(d)(3)’’ and inserting ‘‘408(d)(3), or SEC. 1344. HARDSHIP EXCEPTION TO 60-DAY or distribution is paid into another simple retire- RULE. 457(e)(16)’’. (a) EXEMPT TRUSTS.—Paragraph (3) of section (3) Section 401(a)(31)(B) is amended by strik- ment account.’’. FFECTIVE DATE; SPECIAL RULE.— 402(c) (relating to transfer must be made within ing ‘‘and 403(a)(4)’’ and inserting ‘‘, 403(a)(4), (c) E (1) EFFECTIVE DATE.—The amendments made 60 days of receipt) is amended to read as fol- 403(b)(8), and 457(e)(16)’’. (4) Subparagraph (A) of section 402(f )(2) is by this section shall apply to distributions after lows: amended by striking ‘‘or paragraph (4) of sec- December 31, 2000. ‘‘(3) TRANSFER MUST BE MADE WITHIN 60 DAYS tion 403(a)’’ and inserting ‘‘, paragraph (4) of (2) SPECIAL RULE.—Notwithstanding any OF RECEIPT.— ‘‘(A) IN GENERAL.—Except as provided in sub- section 403(a), subparagraph (A) of section other provision of law, subsections (h)(3) and paragraph (B), paragraph (1) shall not apply to 403(b)(8), or subparagraph (A) of section (h)(5) of section 1122 of the Tax Reform Act of any transfer of a distribution made after the 457(e)(16)’’. 1986 shall not apply to any distribution from an (5) Paragraph (1) of section 402(f ) is amended eligible retirement plan (as defined in clause (iii) 60th day following the day on which the dis- by striking ‘‘from an eligible retirement plan’’. or (iv) of section 402(c)(8)(B) of the Internal tributee received the property distributed. (6) Subparagraphs (A) and (B) of section Revenue Code of 1986) on behalf of an indi- ‘‘(B) HARDSHIP EXCEPTION.—The Secretary 402(f )(1) are amended by striking ‘‘another eligi- vidual if there was a rollover to such plan on may waive the 60-day requirement under sub- ble retirement plan’’ and inserting ‘‘an eligible behalf of such individual which is permitted paragraph (A) where the failure to waive such retirement plan’’. solely by reason of the amendments made by requirement would be against equity or good (7) Subparagraph (B) of section 403(b)(8) is this section. conscience, including casualty, disaster, or amended to read as follows: SEC. 1343. ROLLOVERS OF AFTER-TAX CONTRIBU- other events beyond the reasonable control of ‘‘(B) CERTAIN RULES MADE APPLICABLE.—The TIONS. the individual subject to such requirement.’’. rules of paragraphs (2) through (7) and (9) of (a) ROLLOVERS FROM EXEMPT TRUSTS.—Para- (b) IRAS.—Paragraph (3) of section 408(d) (re- section 402(c) and section 402(f ) shall apply for graph (2) of section 402(c) (relating to maximum lating to rollover contributions), as amended by purposes of subparagraph (A), except that sec- amount which may be rolled over) is amended section 1343, is amended by adding after sub- tion 402(f ) shall be applied to the payor in lieu by adding at the end the following: ‘‘The pre- paragraph (H) the following new subparagraph: of the plan administrator.’’. ceding sentence shall not apply to such distribu- ‘‘(I) WAIVER OF 60-DAY REQUIREMENT.—The (8) Section 408(a)(1) is amended by striking tion to the extent— Secretary may waive the 60-day requirement ‘‘or 403(b)(8)’’ and inserting ‘‘, 403(b)(8), or ‘‘(A) such portion is transferred in a direct under subparagraphs (A) and (D) where the 457(e)(16)’’. trustee-to-trustee transfer to a qualified trust failure to waive such requirement would be (9) Subparagraphs (A) and (B) of section which is part of a plan which is a defined con- against equity or good conscience, including 415(b)(2) are each amended by striking ‘‘and tribution plan and which agrees to separately casualty, disaster, or other events beyond the 408(d)(3)’’ and inserting ‘‘403(b)(8), 408(d)(3), account for amounts so transferred, including reasonable control of the individual subject to and 457(e)(16)’’. separately accounting for the portion of such such requirement.’’. (10) Section 415(c)(2) is amended by striking distribution which is includible in gross income (c) EFFECTIVE DATE.—The amendments made ‘‘and 408(d)(3)’’ and inserting ‘‘408(d)(3), and and the portion of such distribution which is by this section shall apply to distributions after 457(e)(16)’’. not so includible, or December 31, 2000. (11) Section 4973(b)(1)(A) is amended by strik- ‘‘(B) such portion is transferred to an eligible SEC. 1345. TREATMENT OF FORMS OF DISTRIBU- ing ‘‘or 408(d)(3)’’ and inserting ‘‘408(d)(3), or retirement plan described in clause (i) or (ii) of TION. 457(e)(16)’’. paragraph (8)(B).’’. (a) PLAN TRANSFERS.— (f ) EFFECTIVE DATE; SPECIAL RULE.— (b) OPTIONAL DIRECT TRANSFER OF ELIGIBLE (1) AMENDMENT TO INTERNAL REVENUE CODE (1) EFFECTIVE DATE.—The amendments made ROLLOVER DISTRIBUTIONS.—Subparagraph (B) OF 1986.—Paragraph (6) of section 411(d) (relat- by this section shall apply to distributions after of section 401(a)(31) (relating to limitation) is ing to accrued benefit not to be decreased by December 31, 2000. amended by adding at the end the following: amendment) is amended by adding at the end (2) SPECIAL RULE.—Notwithstanding any ‘‘The preceding sentence shall not apply to such the following: other provision of law, subsections (h)(3) and distribution if the plan to which such distribu- ‘‘(D) PLAN TRANSFERS.— (h)(5) of section 1122 of the Tax Reform Act of tion is transferred— ‘‘(i) A defined contribution plan (in this sub- 1986 shall not apply to any distribution from an ‘‘(i) agrees to separately account for amounts paragraph referred to as the ‘transferee plan’) eligible retirement plan (as defined in clause (iii) so transferred, including separately accounting shall not be treated as failing to meet the re- or (iv) of section 402(c)(8)(B) of the Internal for the portion of such distribution which is in- quirements of this subsection merely because the Revenue Code of 1986) on behalf of an indi- cludible in gross income and the portion of such transferee plan does not provide some or all of vidual if there was a rollover to such plan on distribution which is not so includible, or the forms of distribution previously available

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00087 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S432 CONGRESSIONAL RECORD — SENATE February 7, 2000 under another defined contribution plan (in this the plan in accordance with section 205, the (II) by striking ‘‘the event’’ in clause (i) and subparagraph referred to as the ‘transferor transfer is made with the consent of the partici- inserting ‘‘the termination’’, plan’) to the extent that— pant’s spouse (if any), and such consent meets (ii) by striking subparagraph (C), and ‘‘(I) the forms of distribution previously avail- requirements similar to the requirements im- (iii) by striking ‘‘OR DISPOSITION OF ASSETS OR able under the transferor plan applied to the ac- posed by section 205(c)(2); and SUBSIDIARY’’ in the heading. count of a participant or beneficiary under the ‘‘(vi) the transferee plan allows the partici- (2) SECTION 403(b).— transferor plan that was transferred from the pant or beneficiary described in clause (iii) to (A) Paragraphs (7)(A)(ii) and (11)(A) of sec- transferor plan to the transferee plan pursuant receive any distribution to which the partici- tion 403(b) are each amended by striking ‘‘sepa- to a direct transfer rather than pursuant to a pant or beneficiary is entitled under the trans- rates from service’’ and inserting ‘‘has a sever- distribution from the transferor plan, feree plan in the form of a single sum distribu- ance from employment’’. ‘‘(II) the terms of both the transferor plan and tion. (B) The heading for paragraph (11) of section the transferee plan authorize the transfer de- ‘‘(B) Subparagraph (A) shall apply to plan 403(b) is amended by striking ‘‘SEPARATION scribed in subclause (I), mergers and other transactions having the effect FROM SERVICE’’ and inserting ‘‘SEVERANCE FROM ‘‘(III) the transfer described in subclause (I) of a direct transfer, including consolidations of EMPLOYMENT’’. was made pursuant to a voluntary election by benefits attributable to different employers with- (3) SECTION 457.—Clause (ii) of section the participant or beneficiary whose account in a multiple employer plan. 457(d)(1)(A) is amended by striking ‘‘is sepa- was transferred to the transferee plan, ‘‘(5) ELIMINATION OF FORM OF DISTRIBU- rated from service’’ and inserting ‘‘has a sever- ‘‘(IV) the election described in subclause (III) TION.—Except to the extent provided in regula- ance from employment’’. was made after the participant or beneficiary tions, a defined contribution plan shall not be (b) EFFECTIVE DATE.—The amendments made received a notice describing the consequences of treated as failing to meet the requirements of by this section shall apply to distributions after making the election, this section merely because of the elimination of December 31, 2000. ‘‘(V) if the transferor plan provides for an an- a form of distribution previously available SEC. 1347. PURCHASE OF SERVICE CREDIT IN nuity as the normal form of distribution under thereunder. This paragraph shall not apply to GOVERNMENTAL DEFINED BENEFIT PLANS. the plan in accordance with section 417, the the elimination of a form of distribution with re- (a) 403(b) PLANS.—Subsection (b) of section transfer is made with the consent of the partici- spect to any participant unless— 403 is amended by adding at the end the fol- pant’s spouse (if any), and such consent meets ‘‘(A) a single sum payment is available to such lowing new paragraph: requirements similar to the requirements im- participant at the same time or times as the form ‘‘(13) TRUSTEE-TO-TRUSTEE TRANSFERS TO PUR- posed by section 417(a)(2), and of distribution being eliminated; and CHASE PERMISSIVE SERVICE CREDIT.—No amount ‘‘(VI) the transferee plan allows the partici- ‘‘(B) such single sum payment is based on the shall be includible in gross income by reason of pant or beneficiary described in clause (iii) to same or greater portion of the participant’s ac- a direct trustee-to-trustee transfer to a defined receive any distribution to which the partici- count as the form of distribution being elimi- benefit governmental plan (as defined in section pant or beneficiary is entitled under the trans- nated.’’. 414(d)) if such transfer is— feree plan in the form of a single sum distribu- (3) EFFECTIVE DATE.—The amendments made ‘‘(A) for the purchase of permissive service tion. by this subsection shall apply to years begin- credit (as defined in section 415(n)(3)(A)) under ‘‘(ii) Clause (i) shall apply to plan mergers ning after December 31, 2000. such plan, or and other transactions having the effect of a di- (b) REGULATIONS.— ‘‘(B) a repayment to which section 415 does rect transfer, including consolidations of bene- (1) AMENDMENT TO INTERNAL REVENUE CODE not apply by reason of subsection (k)(3) there- fits attributable to different employers within a OF 1986.—The last sentence of paragraph (6)(B) of.’’. of section 411(d) (relating to accrued benefit not multiple employer plan. (b) 457 PLANS.— ‘‘(E) ELIMINATION OF FORM OF DISTRIBU- to be decreased by amendment) is amended to (1) Subsection (e) of section 457 is amended by TION.—Except to the extent provided in regula- read as follows: ‘‘The Secretary shall by regula- adding after paragraph (16) the following new tions, a defined contribution plan shall not be tions provide that this subparagraph shall not paragraph: treated as failing to meet the requirements of apply to any plan amendment that does not ad- ‘‘(17) TRUSTEE-TO-TRUSTEE TRANSFERS TO PUR- this section merely because of the elimination of versely affect the rights of participants in a ma- CHASE PERMISSIVE SERVICE CREDIT.—No amount a form of distribution previously available terial manner.’’. shall be includible in gross income by reason of thereunder. This subparagraph shall not apply (2) AMENDMENT TO ERISA.—The last sentence a direct trustee-to-trustee transfer to a defined to the elimination of a form of distribution with of section 204(g)(2) of the Employee Retirement benefit governmental plan (as defined in section respect to any participant unless— Income Security Act of 1974 (29 U.S.C. 414(d)) if such transfer is— ‘‘(i) a single sum payment is available to such 1054(g)(2)) is amended to read as follows: ‘‘The ‘‘(A) for the purchase of permissive service participant at the same time or times as the form Secretary of the Treasury shall by regulations credit (as defined in section 415(n)(3)(A)) under of distribution being eliminated, and provide that this paragraph shall not apply to such plan, or ‘‘(ii) such single sum payment is based on the any plan amendment that does not adversely af- ‘‘(B) a repayment to which section 415 does same or greater portion of the participant’s ac- fect the rights of participants in a material man- not apply by reason of subsection (k)(3) there- count as the form of distribution being elimi- ner.’’. of.’’. nated.’’. (3) SECRETARY DIRECTED.—Not later than De- (2) Section 457(b)(2) is amended by striking (2) AMENDMENT TO ERISA.—Section 204(g) of cember 31, 2001, the Secretary of the Treasury is ‘‘(other than rollover amounts)’’ and inserting the Employee Retirement Income Security Act of directed to issue final regulations under section ‘‘(other than rollover amounts and amounts re- 1974 (29 U.S.C. 1054(g)) is amended by adding at 411(d)(6) of the Internal Revenue Code of 1986 ceived in a transfer referred to in subsection the end the following: and section 204(g) of the Employee Retirement (e)(17))’’. ‘‘(4)(A) A defined contribution plan (in this Income Security Act of 1974, including the regu- (c) EFFECTIVE DATE.—The amendments made subparagraph referred to as the ‘transferee lations required by the amendments made by by this section shall apply to trustee-to-trustee plan’) shall not be treated as failing to meet the this subsection. Such regulations shall apply to transfers after December 31, 2000. requirements of this subsection merely because plan years beginning after December 31, 2001, or SEC. 1348. EMPLOYERS MAY DISREGARD ROLL- the transferee plan does not provide some or all such earlier date as is specified by the Secretary OVERS FOR PURPOSES OF CASH-OUT of the forms of distribution previously available of the Treasury. AMOUNTS. under another defined contribution plan (in this SEC. 1346. RATIONALIZATION OF RESTRICTIONS (a) QUALIFIED PLANS.— subparagraph referred to as the ‘transferor ON DISTRIBUTIONS. (1) AMENDMENT TO INTERNAL REVENUE CODE plan’) to the extent that— (a) MODIFICATION OF SAME DESK EXCEP- OF 1986.—Section 411(a)(11) (relating to restric- ‘‘(i) the forms of distribution previously avail- TION.— tions on certain mandatory distributions) is able under the transferor plan applied to the ac- (1) SECTION 401(k).— amended by adding at the end the following: count of a participant or beneficiary under the (A) Section 401(k)(2)(B)(i)(I) (relating to ‘‘(D) SPECIAL RULE FOR ROLLOVER CONTRIBU- transferor plan that was transferred from the qualified cash or deferred arrangements) is TIONS.—A plan shall not fail to meet the require- transferor plan to the transferee plan pursuant amended by striking ‘‘separation from service’’ ments of this paragraph if, under the terms of to a direct transfer rather than pursuant to a and inserting ‘‘severance from employment’’. the plan, the present value of the nonforfeitable distribution from the transferor plan; (B) Subparagraph (A) of section 401(k)(10) (re- accrued benefit is determined without regard to ‘‘(ii) the terms of both the transferor plan and lating to distributions upon termination of plan that portion of such benefit which is attrib- the transferee plan authorize the transfer de- or disposition of assets or subsidiary) is amend- utable to rollover contributions (and earnings scribed in clause (i); ed to read as follows: allocable thereto). For purposes of this subpara- ‘‘(iii) the transfer described in clause (i) was ‘‘(A) IN GENERAL.—An event described in this graph, the term ‘rollover contributions’ means made pursuant to a voluntary election by the subparagraph is the termination of the plan any rollover contribution under sections 402(c), participant or beneficiary whose account was without establishment or maintenance of an- 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and transferred to the transferee plan; other defined contribution plan (other than an 457(e)(16).’’. ‘‘(iv) the election described in clause (iii) was employee stock ownership plan as defined in (2) AMENDMENT TO ERISA.—Section 203(e) of made after the participant or beneficiary re- section 4975(e)(7)).’’. the Employee Retirement Income Security Act of ceived a notice describing the consequences of (C) Section 401(k)(10) is amended— 1974 (29 U.S.C. 1053(c)) is amended by adding at making the election; (i) in subparagraph (B)— the end the following: ‘‘(v) if the transferor plan provides for an an- (I) by striking ‘‘An event’’ in clause (i) and ‘‘(4) A plan shall not fail to meet the require- nuity as the normal form of distribution under inserting ‘‘A termination’’, and ments of this subsection if, under the terms of

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00088 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S433 the plan, the present value of the nonforfeitable centage shall be determined in accordance with ‘‘(ii) the amount of contributions described in accrued benefit is determined without regard to the following table: section 402(g)(3)(A). that portion of such benefit which is attrib- ‘‘In the case of any The applicable For purposes of this paragraph, the deductible utable to rollover contributions (and earnings plan year beginning percentage is— limits under section 404(a)(7) shall first be ap- allocable thereto). For purposes of this subpara- in— plied to amounts contributed to a defined ben- graph, the term ‘rollover contributions’ means 2001 ...... 160 efit plan and then to amounts described in sub- any rollover contribution under sections 402(c), 2002 ...... 165 paragraph (B).’’. 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 2003 ...... 170.’’. (c) EFFECTIVE DATE.—The amendments made 457(e)(16) of the Internal Revenue Code of (b) AMENDMENT TO ERISA.—Section 302(c)(7) by this section shall apply to plan years begin- 1986.’’. of the Employee Retirement Income Security Act ning after December 31, 2000. (b) ELIGIBLE DEFERRED COMPENSATION of 1974 (29 U.S.C. 1082(c)(7)) is amended— SEC. 1353. EXCISE TAX RELIEF FOR SOUND PEN- PLANS.—Clause (i) of section 457(e)(9)(A) is (1) by striking ‘‘the applicable percentage’’ in SION FUNDING. amended by striking ‘‘such amount’’ and insert- subparagraph (A)(i)(I) and inserting ‘‘in the (a) IN GENERAL.—Subsection (c) of section ing ‘‘the portion of such amount which is not case of plan years beginning before January 1, 4972 (relating to nondeductible contributions) is attributable to rollover contributions (as defined 2004, the applicable percentage’’, and amended by adding at the end the following in section 411(a)(11)(D))’’. (2) by amending subparagraph (F) to read as new paragraph: (c) EFFECTIVE DATE.—The amendments made follows: ‘‘(7) DEFINED BENEFIT PLAN EXCEPTION.—In by this section shall apply to distributions after ‘‘(F) APPLICABLE PERCENTAGE.—For purposes determining the amount of nondeductible con- December 31, 2000. of subparagraph (A)(i)(I), the applicable per- tributions for any taxable year, an employer SEC. 1349. MINIMUM DISTRIBUTION AND INCLU- centage shall be determined in accordance with may elect for such year not to take into account SION REQUIREMENTS FOR SECTION the following table: any contributions to a defined benefit plan ex- 457 PLANS. ‘‘In the case of any The applicable cept to the extent that such contributions exceed (a) MINIMUM DISTRIBUTION REQUIREMENTS.— plan year beginning percentage is— the full-funding limitation (as defined in section Paragraph (2) of section 457(d) (relating to dis- in— 412(c)(7), determined without regard to subpara- tribution requirements) is amended to read as 2001 ...... 160 graph (A)(i)(I) thereof). For purposes of this follows: 2002 ...... 165 paragraph, the deductible limits under section ‘‘(2) MINIMUM DISTRIBUTION REQUIREMENTS.— 2003 ...... 170.’’. 404(a)(7) shall first be applied to amounts con- A plan meets the minimum distribution require- (c) EFFECTIVE DATE.—The amendments made tributed to defined contribution plans and then ments of this paragraph if such plan meets the by this section shall apply to plan years begin- to amounts described in this paragraph. If an requirements of section 401(a)(9).’’. ning after December 31, 2000. employer makes an election under this para- (b) INCLUSION IN GROSS INCOME.— SEC. 1352. MAXIMUM CONTRIBUTION DEDUCTION graph for a taxable year, paragraph (6) shall (1) YEAR OF INCLUSION.—Subsection (a) of sec- RULES MODIFIED AND APPLIED TO not apply to such employer for such taxable tion 457 (relating to year of inclusion in gross ALL DEFINED BENEFIT PLANS. year.’’. income) is amended to read as follows: (a) IN GENERAL.—Subparagraph (D) of section (b) EFFECTIVE DATE.—The amendments made ‘‘(a) YEAR OF INCLUSION IN GROSS INCOME.— 404(a)(1) (relating to special rule in case of cer- by this section shall apply to years beginning ‘‘(1) IN GENERAL.—Any amount of compensa- tain plans) is amended to read as follows: after December 31, 2000. tion deferred under an eligible deferred com- ‘‘(D) SPECIAL RULE IN CASE OF CERTAIN pensation plan, and any income attributable to SEC. 1354. EXCISE TAX ON FAILURE TO PROVIDE PLANS.— NOTICE BY DEFINED BENEFIT PLANS the amounts so deferred, shall be includible in ‘‘(i) IN GENERAL.—In the case of any defined SIGNIFICANTLY REDUCING FUTURE gross income only for the taxable year in which benefit plan, except as provided in regulations, BENEFIT ACCRUALS. such compensation or other income— the maximum amount deductible under the limi- (a) AMENDMENT TO 1986 CODE.—Chapter 43 of ‘‘(A) is paid to the participant or other bene- tations of this paragraph shall not be less than subtitle D (relating to qualified pension, etc., ficiary, in the case of a plan of an eligible em- the unfunded termination liability (determined plans) is amended by adding at the end the fol- ployer described in subsection (e)(1)(A), and as if the proposed termination date referred to lowing new section: ‘‘(B) is paid or otherwise made available to in section 4041(b)(2)(A)(i)(II) of the Employee ‘‘SEC. 4980F. FAILURE OF APPLICABLE PLANS RE- the participant or other beneficiary, in the case Retirement Income Security Act of 1974 were the DUCING BENEFIT ACCRUALS TO SAT- of a plan of an eligible employer described in last day of the plan year). ISFY NOTICE REQUIREMENTS. subsection (e)(1)(B). ‘‘(ii) PLANS WITH LESS THAN 100 PARTICI- ‘‘(a) IMPOSITION OF TAX.—There is hereby im- ‘‘(2) SPECIAL RULE FOR ROLLOVER AMOUNTS.— PANTS.—For purposes of this subparagraph, in posed a tax on the failure of any applicable To the extent provided in section 72(t)(9), sec- the case of a plan which has less than 100 par- pension plan to meet the requirements of sub- tion 72(t) shall apply to any amount includible ticipants for the plan year, termination liability section (e) with respect to any applicable indi- in gross income under this subsection.’’. shall not include the liability attributable to vidual. (2) CONFORMING AMENDMENTS.— benefit increases for highly compensated em- ‘‘(b) AMOUNT OF TAX.— (A) So much of paragraph (9) of section 457(e) ployees (as defined in section 414(q)) resulting ‘‘(1) IN GENERAL.—The amount of the tax im- as precedes subparagraph (A) is amended to from a plan amendment which is made or be- posed by subsection (a) on any failure with re- read as follows: comes effective, whichever is later, within the spect to any applicable individual shall be $100 ‘‘(9) BENEFITS OF TAX EXEMPT ORGANIZATION last 2 years before the termination date. for each day in the noncompliance period with PLANS NOT TREATED AS MADE AVAILABLE BY REA- ‘‘(iii) RULE FOR DETERMINING NUMBER OF PAR- respect to such failure. SON OF CERTAIN ELECTIONS, ETC.—In the case of TICIPANTS.—For purposes of determining wheth- ‘‘(2) NONCOMPLIANCE PERIOD.—For purposes an eligible deferred compensation plan of an em- er a plan has more than 100 participants, all de- of this section, the term ‘noncompliance period’ ployer described in subsection (e)(1)(B)—’’. fined benefit plans maintained by the same em- means, with respect to any failure, the period (B) Section 457(d) is amended by adding at the ployer (or any member of such employer’s con- beginning on the date the failure first occurs end the following new paragraph: trolled group (within the meaning of section and ending on the date the failure is corrected. ‘‘(3) SPECIAL RULE FOR GOVERNMENT PLAN.— 412(l)(8)(C))) shall be treated as one plan, but ‘‘(c) LIMITATIONS ON AMOUNT OF TAX.— An eligible deferred compensation plan of an only employees of such member or employer ‘‘(1) OVERALL LIMITATION FOR UNINTENTIONAL employer described in subsection (e)(1)(A) shall shall be taken into account. FAILURES.—In the case of failures that are due not be treated as failing to meet the require- ‘‘(iv) PLANS ESTABLISHED AND MAINTAIN BY to reasonable cause and not to willful neglect, ments of this subsection solely by reason of mak- PROFESSIONAL SERVICE EMPLOYERS.—Clause (i) the tax imposed by subsection (a) for failures ing a distribution described in subsection shall not apply to a plan described in section during the taxable year of the employer (or, in (e)(9)(A).’’. 4021(b)(13) of the Employee Retirement Income the case of a multiemployer plan, the taxable (c) EFFECTIVE DATE.—The amendments made Security Act of 1974.’’. year of the trust forming part of the plan) shall by this section shall apply to distributions after (b) CONFORMING AMENDMENT.—Paragraph (6) not exceed $500,000. For purposes of the pre- December 31, 2000. of section 4972(c) is amended to read as follows: ceding sentence, all multiemployer plans of PART IV—STRENGTHENING PENSION ‘‘(6) EXCEPTIONS.—In determining the amount which the same trust forms a part shall be treat- SECURITY AND ENFORCEMENT of nondeductible contributions for any taxable ed as one plan. For purposes of this paragraph, SEC. 1351. REPEAL OF 150 PERCENT OF CURRENT year, there shall not be taken into account so if not all persons who are treated as a single em- LIABILITY FUNDING LIMIT. much of the contributions to one or more de- ployer for purposes of this section have the same (a) AMENDMENT TO INTERNAL REVENUE CODE fined contribution plans which are not deduct- taxable year, the taxable years taken into ac- OF 1986.—Section 412(c)(7) (relating to full-fund- ible when contributed solely because of section count shall be determined under principles simi- ing limitation) is amended— 404(a)(7) as does not exceed the greater of— lar to the principles of section 1561. (1) by striking ‘‘the applicable percentage’’ in ‘‘(A) the amount of contributions not in excess ‘‘(2) WAIVER BY SECRETARY.—In the case of a subparagraph (A)(i)(I) and inserting ‘‘in the of 6 percent of compensation (within the mean- failure which is due to reasonable cause and not case of plan years beginning before January 1, ing of section 404(a)) paid or accrued (during to willful neglect, the Secretary may waive part 2004, the applicable percentage’’, and the taxable year for which the contributions or all of the tax imposed by subsection (a) to the (2) by amending subparagraph (F) to read as were made) to beneficiaries under the plans, or extent that the payment of such tax would be follows: ‘‘(B) the sum of— excessive relative to the failure involved. ‘‘(F) APPLICABLE PERCENTAGE.—For purposes ‘‘(i) the amount of contributions described in ‘‘(d) LIABILITY FOR TAX.—The following shall of subparagraph (A)(i)(I), the applicable per- section 401(m)(4)(A), plus be liable for the tax imposed by subsection (a):

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00089 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S434 CONGRESSIONAL RECORD — SENATE February 7, 2000 ‘‘(1) In the case of a plan other than a multi- vided within a reasonable time before the effec- fined in paragraph (7)(B)), determined as of the employer plan, the employer. tive date of the plan amendment. valuation date for the preceding plan year, ‘‘(2) In the case of a multiemployer plan, the ‘‘(D) A plan shall not be treated as failing to then this section shall be applied using the in- plan. meet the requirements of subparagraph (A) formation available as of such valuation date. ‘‘(e) NOTICE REQUIREMENTS FOR PLANS SIG- merely because notice is provided before the ‘‘(ii) EXCEPTIONS.— NIFICANTLY REDUCING BENEFIT ACCRUALS.— adoption of the plan amendment if no material ‘‘(I) ACTUAL VALUATION EVERY 3 YEARS.— ‘‘(1) IN GENERAL.—If an applicable pension modification of the amendment occurs before the Clause (i) shall not apply for more than 2 con- plan is amended to provide for a significant re- amendment is adopted.’’. secutive plan years and valuation shall be duction in the rate of future benefit accrual, the (c) CLERICAL AMENDMENT.—The table of sec- under subparagraph (A) with respect to any plan administrator shall provide written notice tions for chapter 43 of subtitle D is amended by plan year to which clause (i) does not apply by to each applicable individual (and to each em- adding at the end the following new item: reason of this subclause. ployee organization representing applicable in- ‘‘Sec. 4980F. Failure of applicable plans reduc- ‘‘(II) REGULATIONS.—Clause (i) shall not dividuals). ing benefit accruals to satisfy no- apply to the extent that more frequent valu- ‘‘(2) NOTICE.—The notice required by para- tice requirements.’’. ations are required under the regulations under graph (1) shall be written in a manner cal- (d) EFFECTIVE DATES.— subparagraph (A). culated to be understood by the average plan (1) IN GENERAL.—The amendments made by ‘‘(iii) ADJUSTMENTS.—Information under participant and shall provide sufficient informa- this section shall apply to plan amendments clause (i) shall, in accordance with regulations, tion (as determined in accordance with regula- taking effect on or after the date of the enact- be actuarially adjusted to reflect significant dif- tions prescribed by the Secretary) to allow appli- ment of this Act. ferences in participants. cable individuals to understand the effect of the (2) TRANSITION.—Until such time as the Sec- ‘‘(iv) ELECTION.—An election under this sub- plan amendment. retary of the Treasury issues regulations under paragraph, once made, shall be irrevocable ‘‘(3) TIMING OF NOTICE.—Except as provided sections 4980F(e)(2) and (3) of the Internal Rev- without the consent of the Secretary.’’. in regulations, the notice required by paragraph enue Code of 1986 and section 204(h)(3) of the (b) AMENDMENTS TO ERISA.—Paragraph (9) (1) shall be provided within a reasonable time Employee Retirement Income Security Act of of section 302(c) of the Employee Retirement In- before the effective date of the plan amendment. 1974 (as added by the amendments made by this come Security Act of 1974 (29 U.S.C. 1053(c)) is ‘‘(4) DESIGNEES.—Any notice under paragraph section), a plan shall be treated as meeting the amended— (1) may be provided to a person designated, in requirements of such sections if it makes a good (1) by inserting ‘‘(A)’’ after ‘‘(9)’’, and writing, by the person to which it would other- faith effort to comply with such requirements. (2) by adding at the end the following: wise be provided. (3) SPECIAL RULE.—The period for providing ‘‘(B)(i) Except as provided in clause (ii), if, for ‘‘(5) NOTICE BEFORE ADOPTION OF AMEND- any notice required by the amendments made by any plan year— MENT.—A plan shall not be treated as failing to this section shall not end before the date which ‘‘(I) an election is in effect under this sub- meet the requirements of paragraph (1) merely is 3 months after the date of the enactment of paragraph with respect to a plan, and because notice is provided before the adoption of this Act. ‘‘(II) the assets of the plan are not less than the plan amendment if no material modification 125 percent of the plan’s current liability (as de- SEC. 1355. PROTECTION OF INVESTMENT OF EM- of the amendment occurs before the amendment PLOYEE CONTRIBUTIONS TO 401(K) fined in paragraph (7)(B)), determined as of the is adopted. PLANS. valuation date for the preceding plan year, ‘‘(f ) APPLICABLE INDIVIDUAL; APPLICABLE (a) IN GENERAL.—Section 1524(b) of the Tax- then this section shall be applied using the in- PENSION PLAN.—For purposes of this section— payer Relief Act of 1997 is amended to read as formation available as of such valuation date. ‘‘(1) APPLICABLE INDIVIDUAL.—The term ‘ap- follows: ‘‘(ii)(I) Clause (i) shall not apply for more plicable individual’ means, with respect to any ‘‘(b) EFFECTIVE DATE.— than 2 consecutive plan years and valuation plan amendment— ‘‘(1) IN GENERAL.—Except as provided in para- shall be under subparagraph (A) with respect to ‘‘(A) any participant in the plan, and graph (2), the amendments made by this section any plan year to which clause (i) does not apply ‘‘(B) any beneficiary who is an alternate shall apply to elective deferrals for plan years by reason of this subclause. payee (within the meaning of section 414(p)(8)) beginning after December 31, 1998. ‘‘(II) Clause (i) shall not apply to the extent under an applicable qualified domestic relations ‘‘(2) NONAPPLICATION TO PREVIOUSLY AC- that more frequent valuations are required order (within the meaning of section QUIRED PROPERTY.—The amendments made by under the regulations under subparagraph (A). 414(p)(1)(A)), this section shall not apply to any elective de- ‘‘(iii) Information under clause (i) shall, in who may reasonably be expected to be affected ferral which is invested in assets consisting of accordance with regulations, be actuarially ad- by such plan amendment. qualifying employer securities, qualifying em- justed to reflect significant differences in par- ‘‘(2) APPLICABLE PENSION PLAN.—The term ployer real property, or both, if such assets were ticipants. ‘applicable pension plan’ means— acquired before January 1, 1999.’’. ‘‘(iv) An election under this subparagraph, ‘‘(A) any defined benefit plan, or (b) EFFECTIVE DATE.—The amendment made once made, shall be irrevocable without the con- ‘‘(B) an individual account plan which is sub- by this section shall apply as if included in the sent of the Secretary of the Treasury.’’. ject to the funding standards of section 412, provision of the Taxpayer Relief Act of 1997 to (c) EFFECTIVE DATE.—The amendments made which had 100 or more participants who had ac- which it relates. by this section shall apply to plan years begin- crued a benefit, or with respect to whom con- SEC. 1356. TREATMENT OF MULTIEMPLOYER ning after December 31, 2000. tributions were made, under the plan (whether PLANS UNDER SECTION 415. SEC. 1362. ESOP DIVIDENDS MAY BE REINVESTED or not vested) as of the last day of the plan year (a) COMPENSATION LIMIT.—Paragraph (11) of WITHOUT LOSS OF DIVIDEND DE- preceding the plan year in which the plan section 415(b) (relating to limitation for defined DUCTION. amendment becomes effective. Such term shall benefit plans) is amended to read as follows: (a) IN GENERAL.—Section 404(k)(2)(A) (defin- not include a governmental plan (within the ‘‘(11) SPECIAL LIMITATION RULE FOR GOVERN- ing applicable dividends) is amended by striking meaning of section 414(d)) or a church plan MENTAL AND MULTIEMPLOYER PLANS.—In the ‘‘or’’ at the end of clause (ii), by redesignating (within the meaning of section 414(e)) with re- case of a governmental plan (as defined in sec- clause (iii) as clause (iv), and by inserting after spect to which the election provided by section tion 414(d)) or a multiemployer plan (as defined clause (ii) the following new clause: 410(d) has not been made.’’. in section 414(f )), subparagraph (B) of para- ‘‘(iii) is, at the election of such participants or (b) AMENDMENT TO ERISA.—Section 204(h) of graph (1) shall not apply.’’. their beneficiaries— the Employee Retirement Income Security Act or (b) EFFECTIVE DATE.—The amendment made ‘‘(I) payable as provided in clause (i) or (ii), 1974 (29 U.S.C. 1054(h)) is amended by adding at by this section shall apply to years beginning or the end the following new paragraph: after December 31, 2000. ‘‘(II) paid to the plan and reinvested in quali- ‘‘(3)(A) A plan to which paragraph (1) applies PART V—REDUCING REGULATORY fying employer securities, or’’. shall not be treated as meeting the requirements BURDENS (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years be- of such paragraph unless, in addition to any SEC. 1361. MODIFICATION OF TIMING OF PLAN notice required to be provided to an individual VALUATIONS. ginning after December 31, 2000. or organization under such paragraph, the plan (a) IN GENERAL.—Section 412(c)(9) (relating to SEC. 1363. REPEAL OF TRANSITION RULE RELAT- administrator provides the notice described in annual valuation) is amended— ING TO CERTAIN HIGHLY COM- subparagraph (B). (1) by striking ‘‘For purposes’’ and inserting PENSATED EMPLOYEES. ‘‘(B) The notice required by subparagraph (A) the following: (a) IN GENERAL.—Paragraph (4) of section shall be written in a manner calculated to be ‘‘(A) IN GENERAL.—For purposes’’, and 1114(c) of the Tax Reform Act of 1986 is hereby understood by the average plan participant and (2) by adding at the end the following: repealed. shall provide sufficient information (as deter- ‘‘(B) ELECTION TO USE PRIOR YEAR VALU- (b) EFFECTIVE DATE.—The repeal made by mined in accordance with regulations prescribed ATION.— subsection (a) shall apply to plan years begin- by the Secretary of the Treasury) to allow indi- ‘‘(i) IN GENERAL.—Except as provided in ning after December 31, 1999. viduals to understand the effect of the plan clause (ii), if, for any plan year— SEC. 1364. EMPLOYEES OF TAX-EXEMPT ENTITIES. amendment. ‘‘(I) an election is in effect under this sub- (a) IN GENERAL.—The Secretary of the Treas- ‘‘(C) Except as provided in regulations pre- paragraph with respect to a plan, and ury shall modify Treasury Regulations section scribed by the Secretary of the Treasury, the no- ‘‘(II) the assets of the plan are not less than 1.410(b)–6(g) to provide that employees of an or- tice required by subparagraph (A) shall be pro- 125 percent of the plan’s current liability (as de- ganization described in section 403(b)(1)(A)(i) of

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the Internal Revenue Code of 1986 who are eligi- of corporations, or a group of businesses under (2) EFFECTIVE DATES.— ble to make contributions under section 403(b) of common control, and (A) REGULATIONS.—The regulation required such Code pursuant to a salary reduction agree- (E) does not cover a business that leases em- by paragraph (1) shall apply to years beginning ment may be treated as excludable with respect ployees. after December 31, 2000. to a plan under section 401 (k) or (m) of such (3) OTHER DEFINITIONS.—Terms used in para- (B) CONDITIONS OF AVAILABILITY.—Any condi- Code that is provided under the same general graph (2) which are also used in section 414 of tion of availability prescribed by the Secretary arrangement as a plan under such section the Internal Revenue Code of 1986 shall have under paragraph (1)(A) shall not apply before 401(k), if— the respective meanings given such terms by the first year beginning not less than 120 days (1) no employee of an organization described such section. after the date on which such condition is pre- in section 403(b)(1)(A)(i) of such Code is eligible (b) SIMPLIFIED ANNUAL FILING REQUIREMENT scribed. to participate in such section 401(k) plan or sec- FOR PLANS WITH FEWER THAN 25 EMPLOYEES.— (b) COVERAGE TEST.— tion 401(m) plan, and In the case of a retirement plan which covers (1) IN GENERAL.—Section 410(b)(1) (relating to (2) 95 percent of the employees who are not less than 25 employees on the first day of the minimum coverage requirements) is amended by employees of an organization described in sec- plan year and meets the requirements described adding at the end the following: tion 403(b)(1)(A)(i) of such Code are eligible to in subparagraphs (B), (D), and (E) of subsection ‘‘(D) In the case that the plan fails to meet participate in such plan under such section 401 (a)(2), the Secretary of the Treasury shall pro- the requirements of subparagraphs (A), (B) and (k) or (m). vide for the filing of a simplified annual return (C), the plan— (b) EFFECTIVE DATE.—The modification re- that is substantially similar to the annual re- ‘‘(i) satisfies subparagraph (B), as in effect quired by subsection (a) shall apply as of the turn required to be filed by a one-participant re- immediately before the enactment of the Tax Re- same date set forth in section 1426(b) of the tirement plan. form Act of 1986, Small Business Job Protection Act of 1996. (c) EFFECTIVE DATE.—The provisions of this ‘‘(ii) is submitted to the Secretary for a deter- section shall take effect on January 1, 2001. SEC. 1365. CLARIFICATION OF TREATMENT OF mination of whether it satisfies the requirement EMPLOYER-PROVIDED RETIREMENT SEC. 1367. IMPROVEMENT OF EMPLOYEE PLANS described in clause (i), and ADVICE. COMPLIANCE RESOLUTION SYSTEM. ‘‘(iii) satisfies conditions prescribed by the (a) IN GENERAL.—Subsection (a) of section 132 The Secretary of the Treasury shall continue Secretary by regulation that appropriately limit (relating to exclusion from gross income) is to update and improve the Employee Plans Com- the availability of this subparagraph. amended by striking ‘‘or’’ at the end of para- pliance Resolution System (or any successor Clause (ii) shall apply only to the extent pro- graph (5), by striking the period at the end of program) giving special attention to— vided by the Secretary.’’. paragraph (6) and inserting ‘‘, or’’, and by add- (1) increasing the awareness and knowledge (2) EFFECTIVE DATES.— ing at the end the following new paragraph: of small employers concerning the availability (A) IN GENERAL.—The amendment made by ‘‘(7) qualified retirement planning services.’’. and use of the program, paragraph (1) shall apply to years beginning (b) QUALIFIED RETIREMENT PLANNING SERV- (2) taking into account special concerns and after December 31, 2000. ICES DEFINED.—Section 132 is amended by redes- circumstances that small employers face with re- (B) CONDITIONS OF AVAILABILITY.—Any condi- ignating subsection (m) as subsection (n) and by spect to compliance and correction of compli- tion of availability prescribed by the Secretary inserting after subsection (l) the following: ance failures, under regulations prescribed by the Secretary (3) extending the duration of the self-correc- ‘‘(m) QUALIFIED RETIREMENT PLANNING SERV- under section 410(b)(1)(D) of the Internal Rev- tion period under the Administrative Policy Re- ICES.— enue Code of 1986 shall not apply before the garding Self-Correction for significant compli- ‘‘(1) IN GENERAL.—For purposes of this sec- first year beginning not less than 120 days after tion, the term ‘qualified retirement planning ance failures, the date on which such condition is prescribed. (4) expanding the availability to correct insig- services’ means any retirement planning service (c) LINE OF BUSINESS RULES.—The Secretary nificant compliance failures under the Adminis- provided to an employee and his spouse by an of the Treasury shall, on or before December 31, trative Policy Regarding Self-Correction during employer maintaining a qualified employer 2000, modify the existing regulations issued audit, and plan. under section 414(r) of the Internal Revenue (5) assuring that any tax, penalty, or sanction ‘‘(2) NONDISCRIMINATION RULE.—Subsection Code of 1986 in order to expand (to the extent that is imposed by reason of a compliance fail- (a)(7) shall apply in the case of highly com- that the Secretary determines appropriate) the ure is not excessive and bears a reasonable rela- pensated employees only if such services are ability of a pension plan to demonstrate compli- tionship to the nature, extent, and severity of available on substantially the same terms to ance with the line of business requirements the failure. each member of the group of employees normally based upon the facts and circumstances sur- provided education and information regarding SEC. 1368. MODIFICATION OF EXCLUSION FOR rounding the design and operation of the plan, EMPLOYER-PROVIDED TRANSIT the employer’s qualified employer plan. PASSES. even though the plan is unable to satisfy the ‘‘(3) QUALIFIED EMPLOYER PLAN.—For pur- (a) IN GENERAL.—Section 132(f )(3) (relating to mechanical tests currently used to determine poses of this subsection, the term ‘qualified em- cash reimbursements) is amended by striking the compliance. ployer plan’ means a plan, contract, pension, or last sentence. SEC. 1371. EXTENSION TO INTERNATIONAL ORGA- account described in section 219(g)(5).’’. (b) EFFECTIVE DATE.—The amendment made NIZATIONS OF MORATORIUM ON AP- (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years be- PLICATION OF CERTAIN NON- by this section shall apply to years beginning ginning after December 31, 1999. DISCRIMINATION RULES APPLICA- BLE TO STATE AND LOCAL PLANS. after December 31, 2000. SEC. 1369. REPEAL OF THE MULTIPLE USE TEST. (a) IN GENERAL.—Subparagraph (G) of section SEC. 1366. REPORTING SIMPLIFICATION. (a) IN GENERAL.—Paragraph (9) of section 401(a)(5), subparagraph (H) of section (a) SIMPLIFIED ANNUAL FILING REQUIREMENT 401(m) is amended to read as follows: 401(a)(26), subparagraph (G) of section FOR OWNERS AND THEIR SPOUSES.— ‘‘(9) REGULATIONS.—The Secretary shall pre- 401(k)(3), and paragraph (2) of section 1505(d) of (1) IN GENERAL.—The Secretary of the Treas- scribe such regulations as may be necessary to the Taxpayer Relief Act of 1997 are each amend- ury shall modify the requirements for filing an- carry out the purposes of this subsection and ed by inserting ‘‘or by an international organi- nual returns with respect to one-participant re- subsection (k), including regulations permitting zation which is described in section 414(d)’’ tirement plans to ensure that such plans with appropriate aggregation of plans and contribu- after ‘‘or instrumentality thereof)’’. assets of $250,000 or less as of the close of the tions.’’. (b) CONFORMING AMENDMENTS.— plan year need not file a return for that year. (b) EFFECTIVE DATE.—The amendment made (1) The headings for subparagraph (G) of sec- (2) ONE-PARTICIPANT RETIREMENT PLAN DE- by this section shall apply to years beginning tion 401(a)(5) and subparagraph (H) of section FINED.—For purposes of this subsection, the after December 31, 2000. 401(a)(26) are each amended by inserting ‘‘AND term ‘‘one-participant retirement plan’’ means a SEC. 1370. FLEXIBILITY IN NONDISCRIMINATION, INTERNATIONAL ORGANIZATION’’ after ‘‘GOVERN- retirement plan that— COVERAGE, AND LINE OF BUSINESS MENTAL’’. (A) on the first day of the plan year— RULES. (2) Subparagraph (G) of section 401(k)(3) is (i) covered only the employer (and the employ- (a) NONDISCRIMINATION.— amended by inserting ‘‘STATE AND LOCAL GOV- er’s spouse) and the employer owned the entire (1) IN GENERAL.—The Secretary of the Treas- ERNMENTAL AND INTERNATIONAL ORGANIZATION business (whether or not incorporated), or ury shall, by regulation, provide that a plan PLANS.—’’ after ‘‘(G)’’. (ii) covered only one or more partners (and shall be deemed to satisfy the requirements of (c) EFFECTIVE DATE.—The amendments made their spouses) in a business partnership (includ- section 401(a)(4) of the Internal Revenue Code by this section shall apply to years beginning ing partners in an S or C corporation), of 1986 if such plan satisfies the facts and cir- after December 31, 2000. (B) meets the minimum coverage requirements cumstances test under section 401(a)(4) of such of section 410(b) of the Internal Revenue Code of Code, as in effect before January 1, 1994, but PART VI—PLAN AMENDMENTS 1986 without being combined with any other only if— SEC. 1381. PROVISIONS RELATING TO PLAN plan of the business that covers the employees of (A) the plan satisfies conditions prescribed by AMENDMENTS. the business, the Secretary to appropriately limit the avail- (a) IN GENERAL.—If this section applies to any (C) does not provide benefits to anyone except ability of such test, and plan or contract amendment— the employer (and the employer’s spouse) or the (B) the plan is submitted to the Secretary for (1) such plan or contract shall be treated as partners (and their spouses), a determination of whether it satisfies such test. being operated in accordance with the terms of (D) does not cover a business that is a member Subparagraph (B) shall only apply to the extent the plan during the period described in sub- of an affiliated service group, a controlled group provided by the Secretary. section (b)(2)(A), and

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00091 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S436 CONGRESSIONAL RECORD — SENATE February 7, 2000 (2) such plan shall not fail to meet the re- percent or more (by vote or value) of the stock SEC. 1407. EFFECT OF CONVERSION. quirements of section 411(d)(6) of the Internal or beneficial interests in the trust shall be taken Section 348(f)(2) of title 11, United States Revenue Code of 1986 by reason of such amend- into account in computing annualized income Code, is amended by inserting ‘‘of the estate’’ ment. installments under paragraph (2) in a manner after ‘‘property’’ the first place it appears. (b) AMENDMENTS TO WHICH SECTION AP- similar to the manner under which partnership SEC. 1408. ALLOWANCE OF ADMINISTRATIVE EX- PLIES.— income inclusions are taken into account. PENSES. (1) IN GENERAL.—This section shall apply to ‘‘(B) CLOSELY HELD REIT.—For purposes of Section 503(b)(4) of title 11, United States any amendment to any plan or annuity contract subparagraph (A), the term ‘closely held real es- Code, is amended by inserting ‘‘subparagraph which is made— tate investment trust’ means a real estate invest- (A), (B), (C), (D), or (E) of’’ before ‘‘paragraph (A) pursuant to any amendment made by this ment trust with respect to which 5 or fewer per- (3)’’. title, or pursuant to any regulation issued under sons own (after application of subsections (d)(5) SEC. 1409. EXCEPTIONS TO DISCHARGE. this title, and and (l)(3)(B) of section 856) 50 percent or more Section 523 of title 11, United States Code, as (B) on or before the last day of the first plan (by vote or value) of the stock or beneficial in- amended by section 714 of this Act, is amended— year beginning on or after January 1, 2003. terests in the trust.’’ (1) as amended by section 304(e) of Public Law In the case of a government plan (as defined in (b) EFFECTIVE DATE.—The amendment made 103–394 (108 Stat. 4133), in paragraph (15), by section 414(d) of the Internal Revenue Code of by subsection (a) shall apply to estimated tax transferring such paragraph so as to insert such 1986), this paragraph shall be applied by sub- payments due on or after November 15, 1999. paragraph after paragraph (14) of subsection stituting ‘‘2005’’ for ‘‘2003’’. TITLE XIV—TECHNICAL AMENDMENTS (a); (2) CONDITIONS.—This section shall not apply SEC. 1401. DEFINITIONS. (2) in subsection (a)(9), by striking ‘‘motor ve- to any amendment unless— Section 101 of title 11, United States Code, as hicle or vessel’’ and inserting ‘‘motor vehicle, (A) during the period— amended by section 1003 of this Act, is amend- vessel, or aircraft’’; and (i) beginning on the date the legislative or reg- ed— (3) in subsection (e), by striking ‘‘a insured’’ ulatory amendment described in paragraph (1) by striking ‘‘In this title—’’ and inserting and inserting ‘‘an insured’’. (1)(A) takes effect (or in the case of a plan or ‘‘In this title:’’; SEC. 1410. EFFECT OF DISCHARGE. contract amendment not required by such legis- (2) in each paragraph, by inserting ‘‘The Section 524(a)(3) of title 11, United States lative or regulatory amendment, the effective term’’ after the paragraph designation; Code, is amended by striking ‘‘section 523’’ and date specified by the plan), and (3) in paragraph (35)(B), by striking ‘‘para- all that follows through ‘‘or that’’ and inserting (ii) ending on the date described in paragraph graphs (21B) and (33)(A)’’ and inserting ‘‘para- ‘‘section 523, 1228(a)(1), or 1328(a)(1), or that’’. (1)(B) (or, if earlier, the date the plan or con- graphs (23) and (35)’’; tract amendment is adopted), SEC. 1411. PROTECTION AGAINST DISCRIMINA- (4) in each of paragraphs (35A) and (38), by TORY TREATMENT. the plan or contract is operated as if such plan striking ‘‘; and’’ at the end and inserting a pe- Section 525(c) of title 11, United States Code, or contract amendment were in effect, and riod; is amended— (B) such plan or contract amendment applies (5) in paragraph (51B)— (1) in paragraph (1), by inserting ‘‘student’’ retroactively for such period. (A) by inserting ‘‘who is not a family farmer’’ before ‘‘grant’’ the second place it appears; and Subtitle D—Revenue Provisions after ‘‘debtor’’ the first place it appears; and (2) in paragraph (2), by striking ‘‘the program (B) by striking ‘‘thereto having aggregate’’ operated under part B, D, or E of’’ and insert- SEC. 1391. MODIFICATION OF INSTALLMENT and all that follows through the end of the METHOD AND REPEAL OF INSTALL- ing ‘‘any program operated under’’. paragraph; MENT METHOD FOR ACCRUAL METH- SEC. 1412. PROPERTY OF THE ESTATE. OD TAXPAYERS. (6) by striking paragraph (54) and inserting Section 541(b)(4)(B)(ii) of title 11, United (a) REPEAL OF INSTALLMENT METHOD FOR AC- the following: States Code, is amended by inserting ‘‘365 or’’ CRUAL BASIS TAXPAYERS.— ‘‘(54) The term ‘transfer’ means— before ‘‘542’’. (1) IN GENERAL.—Subsection (a) of section 453 ‘‘(A) the creation of a lien; (relating to installment method) is amended to ‘‘(B) the retention of title as a security inter- SEC. 1413. PREFERENCES. read as follows: est; (a) IN GENERAL.—Section 547 of title 11, ‘‘(a) USE OF INSTALLMENT METHOD.— ‘‘(C) the foreclosure of a debtor’s equity of re- United States Code, as amended by section ‘‘(1) IN GENERAL.—Except as otherwise pro- demption; or 201(b) of this Act, is amended— vided in this section, income from an installment ‘‘(D) each mode, direct or indirect, absolute or (1) in subsection (b), by striking ‘‘subsection sale shall be taken into account for purposes of conditional, voluntary or involuntary, of dis- (c)’’ and inserting ‘‘subsections (c) and (i)’’; and this title under the installment method. posing of or parting with— (2) by adding at the end the following: ‘‘(i) property; or ‘‘(2) ACCRUAL METHOD TAXPAYER.—The in- ‘‘(i) If the trustee avoids under subsection (b) ‘‘(ii) an interest in property;’’; stallment method shall not apply to income from a security interest given between 90 days and 1 (7) in each of paragraphs (1) through (35), in an installment sale if such income would be re- year before the date of the filing of the petition, each of paragraphs (36) and (37), and in each of ported under an accrual method of accounting by the debtor to an entity that is not an insider paragraphs (40) through (55) (including para- without regard to this section. The preceding for the benefit of a creditor that is an insider, graph (54), as amended by paragraph (6) of this sentence shall not apply to a disposition de- such security interest shall be considered to be section), by striking the semicolon at the end scribed in subparagraph (A) or (B) of subsection avoided under this section only with respect to and inserting a period; and (l)(2).’’. the creditor that is an insider.’’. (8) by redesignating paragraphs (4) through (2) CONFORMING AMENDMENTS.—Sections (b) APPLICABILITY.—The amendments made by (55), including paragraph (54), as amended by 453(d)(1), 453(i)(1), and 453(k) of such Code are this section shall apply to any case that pend- paragraph (6) of this section, in entirely numer- each amended by striking ‘‘(a)’’ each place it ing or commenced on or after the date of enact- ical sequence. appears and inserting ‘‘(a)(1)’’. ment of this Act. SEC. 1402. ADJUSTMENT OF DOLLAR AMOUNTS. (b) MODIFICATION OF PLEDGE RULES.—Para- SEC. 1414. POSTPETITION TRANSACTIONS. graph (4) of section 453A(d) (relating to pledges, Section 104 of title 11, United States Code, is Section 549(c) of title 11, United States Code, etc., of installment obligations) is amended by amended by inserting ‘‘522(f)(3),’’ after is amended— adding at the end the following: ‘‘A payment ‘‘522(d),’’ each place it appears. (1) by inserting ‘‘an interest in’’ after ‘‘trans- shall be treated as directly secured by an inter- SEC. 1403. EXTENSION OF TIME. fer of’’; est in an installment obligation to the extent an Section 108(c)(2) of title 11, United States (2) by striking ‘‘such property’’ and inserting arrangement allows the taxpayer to satisfy all Code, is amended by striking ‘‘922’’ and all that ‘‘such real property’’; and or a portion of the indebtedness with the install- follows through ‘‘or’’, and inserting ‘‘922, 1201, (3) by striking ‘‘the interest’’ and inserting ment obligation.’’. or’’. ‘‘such interest’’. (c) EFFECTIVE DATE.—The amendments made SEC. 1404. TECHNICAL AMENDMENTS. SEC. 1415. DISPOSITION OF PROPERTY OF THE by this section shall apply to sales or other dis- Title 11, United States Code, is amended— ESTATE. positions occurring on or after the date of the (1) in section 109(b)(2), by striking ‘‘subsection Section 726(b) of title 11, United States Code, enactment of this Act. (c) or (d) of’’; and is amended by striking ‘‘1009,’’. (2) in section 552(b)(1), by striking ‘‘product’’ SEC. 1392. MODIFICATION OF ESTIMATED TAX SEC. 1416. GENERAL PROVISIONS. each place it appears and inserting ‘‘products’’. RULES FOR CLOSELY HELD REAL ES- Section 901(a) of title 11, United States Code, TATE INVESTMENT TRUSTS. SEC. 1405. PENALTY FOR PERSONS WHO NEG- as amended by section 502 of this Act, is amend- (a) IN GENERAL.—Subsection (e) of section LIGENTLY OR FRAUDULENTLY PRE- ed by inserting ‘‘1123(d),’’ after ‘‘1123(b),’’. 6655 (relating to estimated tax by corporations) PARE BANKRUPTCY PETITIONS. is amended by adding at the end the following Section 110(j)(3) of title 11, United States SEC. 1417. ABANDONMENT OF RAILROAD LINE. new paragraph: Code, is amended by striking ‘‘attorney’s’’ and Section 1170(e)(1) of title 11, United States ‘‘(5) TREATMENT OF CERTAIN REIT DIVI- inserting ‘‘attorneys’ ’’. Code, is amended by striking ‘‘section 11347’’ DENDS.— SEC. 1406. LIMITATION ON COMPENSATION OF and inserting ‘‘section 11326(a)’’. ‘‘(A) IN GENERAL.—Any dividend received PROFESSIONAL PERSONS. SEC. 1418. CONTENTS OF PLAN. from a closely held real estate investment trust Section 328(a) of title 11, United States Code, Section 1172(c)(1) of title 11, United States by any person which owns (after application of is amended by inserting ‘‘on a fixed or percent- Code, is amended by striking ‘‘section 11347’’ subsections (d)(5) and (l)(3)(B) of section 856) 10 age fee basis,’’ after ‘‘hourly basis,’’. and inserting ‘‘section 11326(a)’’.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00092 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S437 SEC. 1419. DISCHARGE UNDER CHAPTER 12. SEC. 1424. EXTENSIONS. (E) 8 years or more after November 23, 1993, Subsections (a) and (c) of section 1228 of title Section 302(d)(3) of the Bankruptcy, Judges, with respect to the eastern district of Tennessee. 11, United States Code, are amended by striking United States Trustees, and Family Farmer (2) APPLICABILITY OF OTHER PROVISIONS.—All ‘‘1222(b)(10)’’ each place it appears and insert- Bankruptcy Act of 1986 (28 U.S.C. 581 note) is other provisions of section 3 of the Bankruptcy ing ‘‘1222(b)(9)’’. amended— Judgeship Act of 1992 remain applicable to such SEC. 1420. BANKRUPTCY CASES AND PRO- (1) in subparagraph (A), in the matter fol- temporary judgeship positions. CEEDINGS. lowing clause (ii), by striking ‘‘or October 1, (d) TECHNICAL AMENDMENT.—The first sen- Section 1334(d) of title 28, United States Code, 2002, whichever occurs first’’; and tence of section 152(a)(1) of title 28, United is amended— (2) in subparagraph (F)— States Code, is amended to read as follows: (1) by striking ‘‘made under this subsection’’ (A) in clause (i)— ‘‘Each bankruptcy judge to be appointed for a and inserting ‘‘made under subsection (c)’’; and (i) in subclause (II), by striking ‘‘or October 1, judicial district as provided in paragraph (2) (2) by striking ‘‘This subsection’’ and insert- 2002, whichever occurs first’’; and shall be appointed by the United States court of ing ‘‘Subsection (c) and this subsection’’. (ii) in the matter following subclause (II), by appeals for the circuit in which such district is SEC. 1421. KNOWING DISREGARD OF BANK- striking ‘‘October 1, 2003, or’’; and located.’’. RUPTCY LAW OR RULE. (B) in clause (ii), in the matter following sub- SEC. 1426. FAMILY FISHERMEN. Section 156(a) of title 18, United States Code, clause (II)— (a) DEFINITIONS.—Section 101 of title 11, is amended— (i) by striking ‘‘before October 1, 2003, or’’; United States Code, is amended— (1) in the first undesignated paragraph— and (1) by inserting after paragraph (7) the fol- (A) by inserting ‘‘(1) the term’’ before ‘‘ ‘bank- (ii) by striking ‘‘, whichever occurs first’’. lowing: ruptcy’’; and SEC. 1425. BANKRUPTCY JUDGESHIPS. ‘‘(7A) ‘commercial fishing operation’ in- (B) by striking the period at the end and in- (a) SHORT TITLE.—This section may be cited cludes— serting ‘‘; and’’; and as the ‘‘Bankruptcy Judgeship Act of 2000’’. ‘‘(A) the catching or harvesting of fish, (2) in the second undesignated paragraph— (b) TEMPORARY JUDGESHIPS.— (A) by inserting ‘‘(2) the term’’ before ‘‘ ‘docu- shrimp, lobsters, urchins, seaweed, shellfish, or (1) APPOINTMENTS.—The following judgeship ment’’; and other aquatic species or products; positions shall be filled in the manner prescribed (B) by striking ‘‘this title’’ and inserting ‘‘title ‘‘(B) for purposes of section 109 and chapter in section 152(a)(1) of title 28, United States 11’’. 12, aquaculture activities consisting of raising Code, for the appointment of bankruptcy judges for market any species or product described in SEC. 1422. TRANSFERS MADE BY NONPROFIT provided for in section 152(a)(2) of such title: CHARITABLE CORPORATIONS. subparagraph (A); and (A) One additional bankruptcy judgeship for (a) SALE OF PROPERTY OF ESTATE.—Section ‘‘(C) the transporting by vessel of a passenger the eastern district of California. 363(d) of title 11, United States Code, is amended for hire (as defined in section 2101 of title 46) (B) Four additional bankruptcy judgeships for by striking ‘‘only’’ and all that follows through who is engaged in recreational fishing; the central district of California. ‘‘(7B) ‘commercial fishing vessel’ means a ves- the end of the subsection and inserting ‘‘only— (C) One additional bankruptcy judgeship for ‘‘(1) in accordance with applicable nonbank- sel used by a fisherman to carry out a commer- the southern district of Florida. ruptcy law that governs the transfer of property cial fishing operation;’’; (D) Two additional bankruptcy judgeships for by a corporation or trust that is not a moneyed, (2) by inserting after paragraph (19) the fol- the district of Maryland. business, or commercial corporation or trust; lowing: (E) One additional bankruptcy judgeship for and ‘‘(19A) ‘family fisherman’ means— the eastern district of Michigan. ‘‘(2) to the extent not inconsistent with any ‘‘(A) an individual or individual and spouse (F) One additional bankruptcy judgeship for relief granted under subsection (c), (d), (e), or engaged in a commercial fishing operation (in- the southern district of Mississippi. (f) of section 362.’’. cluding aquaculture for purposes of chapter (G) One additional bankruptcy judgeship for (b) CONFIRMATION OF PLAN FOR REORGANIZA- 12)— the district of New Jersey. TION.—Section 1129(a) of title 11, United States ‘‘(i) whose aggregate debts do not exceed (H) One additional bankruptcy judgeship for Code, as amended by section 212 of this Act, is $1,500,000 and not less than 80 percent of whose the eastern district of New York. amended by adding at the end the following: aggregate noncontingent, liquidated debts (ex- ‘‘(15) All transfers of property of the plan (I) One additional bankruptcy judgeship for cluding a debt for the principal residence of shall be made in accordance with any applicable the northern district of New York. such individual or such individual and spouse, provisions of nonbankruptcy law that govern (J) One additional bankruptcy judgeship for unless such debt arises out of a commercial fish- the transfer of property by a corporation or the southern district of New York. ing operation), on the date the case is filed, trust that is not a moneyed, business, or com- (K) One additional bankruptcy judgeship for arise out of a commercial fishing operation mercial corporation or trust.’’. the eastern district of Pennsylvania. owned or operated by such individual or such (c) TRANSFER OF PROPERTY.—Section 541 of (L) One additional bankruptcy judgeship for individual and spouse; and title 11, United States Code, is amended by add- the middle district of Pennsylvania. ‘‘(ii) who receive from such commercial fishing ing at the end the following: (M) One additional bankruptcy judgeship for operation more than 50 percent of such individ- ‘‘(f) Notwithstanding any other provision of the western district of Tennessee. ual’s or such individual’s and spouse’s gross in- this title, property that is held by a debtor that (N) One additional bankruptcy judgeship for come for the taxable year preceding the taxable is a corporation described in section 501(c)(3) of the eastern district of Virginia. year in which the case concerning such indi- the Internal Revenue Code of 1986 and exempt (2) VACANCIES.—The first vacancy occurring vidual or such individual and spouse was filed; from tax under section 501(a) of such Code may in the office of a bankruptcy judge in each of or be transferred to an entity that is not such a the judicial districts set forth in paragraph (1) ‘‘(B) a corporation or partnership— corporation, but only under the same conditions that— ‘‘(i) in which more than 50 percent of the out- as would apply if the debtor had not filed a case (A) results from the death, retirement, res- standing stock or equity is held by— under this title.’’. ignation, or removal of a bankruptcy judge; and ‘‘(I) 1 family that conducts the commercial (d) APPLICABILITY.—The amendments made by (B) occurs 5 years or more after the appoint- fishing operation; or this section shall apply to a case pending under ment date of a bankruptcy judge appointed ‘‘(II) 1 family and the relatives of the members title 11, United States Code, on the date of en- under paragraph (1); of such family, and such family or such rel- actment of this Act, except that the court shall shall not be filled. atives conduct the commercial fishing operation; not confirm a plan under chapter 11 of this title (c) EXTENSIONS.— and without considering whether this section would (1) IN GENERAL.—The temporary bankruptcy ‘‘(ii)(I) more than 80 percent of the value of its substantially affect the rights of a party in in- judgeship positions authorized for the northern assets consists of assets related to the commer- terest who first acquired rights with respect to district of Alabama, the district of Delaware, the cial fishing operation; the debtor after the date of the petition. The district of Puerto Rico, the district of South ‘‘(II) its aggregate debts do not exceed parties who may appear and be heard in a pro- Carolina, and the eastern district of Tennessee $1,500,000 and not less than 80 percent of its ag- ceeding under this section include the attorney under section 3(a) (1), (3), (7), (8), and (9) of the gregate noncontingent, liquidated debts (exclud- general of the State in which the debtor is incor- Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 ing a debt for 1 dwelling which is owned by porated, was formed, or does business. note) are extended until the first vacancy occur- such corporation or partnership and which a (e) RULE OF CONSTRUCTION.—Nothing in this ring in the office of a bankruptcy judge in the shareholder or partner maintains as a principal section shall be construed to require the court in applicable district resulting from the death, re- residence, unless such debt arises out of a com- which a case under chapter 11 is pending to re- tirement, resignation, or removal of a bank- mercial fishing operation), on the date the case mand or refer any proceeding, issue, or con- ruptcy judge and occurring— is filed, arise out of a commercial fishing oper- troversy to any other court or to require the ap- (A) 8 years or more after November 8, 1993, ation owned or operated by such corporation or proval of any other court for the transfer of with respect to the northern district of Alabama; such partnership; and property. (B) 10 years or more after October 28, 1993, ‘‘(III) if such corporation issues stock, such SEC. 1423. PROTECTION OF VALID PURCHASE with respect to the district of Delaware; stock is not publicly traded;’’; and MONEY SECURITY INTERESTS. (C) 8 years or more after August 29, 1994, with (3) by inserting after paragraph (19A) the fol- Section 547(c)(3)(B) of title 11, United States respect to the district of Puerto Rico; lowing: Code, is amended by striking ‘‘20’’ and inserting (D) 8 years or more after June 27, 1994, with ‘‘(19B) ‘family fisherman with regular annual ‘‘30’’. respect to the district of South Carolina; and income’ means a family fisherman whose annual

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00093 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S438 CONGRESSIONAL RECORD — SENATE February 7, 2000 income is sufficiently stable and regular to en- Magnuson-Stevens Fishery Conservation and SEC. 1430. NO BANKRUPTCY FOR INSOLVENT PO- able such family fisherman to make payments Management Act (16 U.S.C. 1801 et seq.). LITICAL COMMITTEES. under a plan under chapter 12 of this title;’’. SEC. 1427. COMPENSATING TRUSTEES. Section 105 of title 11, United States Code, is (b) WHO MAY BEADEBTOR.—Section 109(f) of Title 11, United States Code, is amended— amended by inserting at the end the following: title 11, United States Code, is amended by in- (1) in section 104(b)(1) in the matter preceding ‘‘(e) A political committee subject to the juris- serting ‘‘or family fisherman’’ after ‘‘family subparagraph (A) by— diction of the Federal Election Commission farmer’’. (A) striking ‘‘and 523(a)(2)(C)’’; and under Federal election laws may not file for (c) CHAPTER 12.—Chapter 12 of title 11, United (B) inserting ‘‘523(a)(2)(C), and 1326(b)(3)’’ be- bankruptcy under this title.’’. States Code, is amended— fore ‘‘immediately’’; SEC. 1431. FEDERAL ELECTION LAW FINES AND (1) in the chapter heading, by inserting ‘‘OR (2) in section 326, by inserting at the end the PENALTIES AS NONDISCHARGEABLE DEBT. FISHERMAN’’ after ‘‘FAMILY FARMER’’; following: (2) in section 1201, by adding at the end the ‘‘(e) Notwithstanding any other provision of Section 523(a) of title 11, United States Code, following: this section, if a trustee in a chapter 7 case com- is amended by inserting after paragraph (14A) ‘‘(e)(1) Notwithstanding any other provision mences a motion to dismiss or convert under sec- the following: ‘‘(14B) fines or penalties imposed under Fed- of law, for purposes of this subsection, a guar- tion 707(b) and such motion is granted, the eral election law;’’. antor of a claim of a creditor under this section court shall allow reasonable compensation shall be treated in the same manner as a cred- under section 330(a) of this title for the services SEC. 1432. PROHIBITION ON CERTAIN RETRO- itor with respect to the operation of a stay and expenses of the trustee and the trustee’s ACTIVE FINANCE CHARGES. under this section. counsel in preparing and presenting such mo- Section 127 of the Truth in Lending Act (15 ‘‘(2) For purposes of a claim that arises from tion and any related appeals.’’; and U.S.C. 1637) is amended by adding at the end the ownership or operation of a commercial fish- (3) in section 1326(b)— the following: ing operation, a co-maker of a loan made by a (A) in paragraph (1), by striking ‘‘and’’; ‘‘(h) PROHIBITION ON RETROACTIVE FINANCE creditor under this section shall be treated in (B) in paragraph (2), by striking the period at CHARGES.— the same manner as a creditor with respect to the end and inserting ‘‘; and’’; and ‘‘(1) IN GENERAL.—In the case of any credit the operation of a stay under this section.’’; (C) by adding at the end the following: card account under an open end credit plan, if (3) in section 1203, by inserting ‘‘or commercial ‘‘(3) if a chapter 7 trustee has been allowed the creditor provides a grace period applicable fishing operation’’ after ‘‘farm’’; compensation under section 326(e) in a case con- to any new extension of credit under the ac- (4) in section 1206, by striking ‘‘if the property verted to this chapter or in a case dismissed count, no finance charge may be imposed subse- is farmland or farm equipment’’ and inserting under section 707(b) in which the debtor in this quent to the grace period with regard to any ‘‘if the property is farmland, farm equipment, or case was a debtor— amount that was paid on or before the end of property of a commercial fishing operation (in- ‘‘(A) the amount of such unpaid compensation that grace period. cluding a commercial fishing vessel)’’; and which shall be paid monthly by prorating such ‘‘(2) DEFINITION.—For purposes of this sub- (5) by adding at the end the following: amount over the remaining duration of the section, the term ‘grace period’ means a period ‘‘§ 1232. Additional provisions relating to fam- plan, but a monthly payment shall not exceed during which the extension of credit may be re- ily fishermen the greater of— paid, in whole or in part, without incurring a fi- nance charge for the extension of credit.’’. ‘‘(a)(1) Notwithstanding any other provision ‘‘(i) $25; or of law, except as provided in subsection (c), ‘‘(ii) the amount payable to unsecured nonpri- SEC. 1433. SENSE OF SENATE CONCERNING CRED- with respect to any commercial fishing vessel of ority creditors as provided by the plan multi- IT WORTHINESS. a family fisherman, the debts of that family plied by 5 percent, and the result divided by the The Board of Governors of the Federal Re- fisherman shall be treated in the manner pre- number of months in the plan; and serve System shall report to the Senate Com- scribed in paragraph (2). ‘‘(B) notwithstanding any other provision of mittee on Banking, Housing, and Urban Affairs ‘‘(2)(A) For purposes of this chapter, a claim this title— and the House of Representatives Committee on for a lien described in subsection (b) for a com- ‘‘(i) such compensation is payable and may be Banking and Financial Services within 6 mercial fishing vessel of a family fisherman that collected by the trustee under this paragraph months of enactment of this Act as to whether could, but for this subsection, be subject to a even if such amount has been discharged in a and how the location of the residence of an ap- lien under otherwise applicable maritime law, prior proceeding under this title; and plicant for a credit card is considered by finan- shall be treated as an unsecured claim. ‘‘(ii) such compensation is payable in a case cial institutions in deciding whether an appli- ‘‘(B) Subparagraph (A) applies to a claim for under this chapter only to the extent permitted cant should be granted such credit card. a lien resulting from a debt of a family fisher- by this paragraph.’’. SEC. 1434. JUDICIAL EDUCATION. man incurred on or after the date of enactment SEC. 1428. AMENDMENT TO SECTION 362 OF TITLE The Director of the Administrative Office of of this chapter. 11, UNITED STATES CODE. the United States Courts, in consultation with ‘‘(b) A lien described in this subsection is— Section 362(b)(18) of title 11, United States the Director of the Executive Office for United ‘‘(1) a maritime lien under subchapter III of Code, is amended to read as follows: States Trustees, shall develop materials and chapter 313 of title 46 without regard to whether ‘‘(18) under subsection (a) of the creation or conduct such training as may be useful to that lien is recorded under section 31343 of title perfection of a statutory lien for an ad valorem courts in implementing this Act, including the 46; or property tax, or a special tax or special assess- requirements relating to the 707(b) means test ‘‘(2) a lien under applicable State law (or the ment on real property whether or not ad valo- and reaffirmations. law of a political subdivision thereof). rem, imposed by a governmental unit, if such SEC. 1435. UNITED STATES TRUSTEE PROGRAM ‘‘(c) Subsection (a) shall not apply to— tax or assessment comes due after the filing of FILING FEE INCREASE. ‘‘(1) a claim made by a member of a crew or the petition.’’. (a) RIGHTS AND POWERS OF THE TRUSTEE.— a seaman including a claim made for— SEC. 1429. PROVISION OF ELECTRONIC FTC PAM- Section 546(c) of title 11, United States Code, is ‘‘(A) wages, maintenance, or cure; or PHLET WITH ELECTRONIC CREDIT amended to read as follows: ‘‘(B) personal injury; or CARD APPLICATIONS AND SOLICITA- ‘‘(c)(1) Except as provided in subsection (d) of ‘‘(2) a preferred ship mortgage that has been TIONS. this section, and except as provided in sub- perfected under subchapter II of chapter 313 of Section 127(c) of the Truth in Lending Act (15 section (c) of section 507, the rights and powers title 46. U.S.C. 1637(c)) is amended— of the trustee under sections 544(a), 545, 547, ‘‘(d) For purposes of this chapter, a mortgage (1) by redesignating paragraph (5) as para- and 549 are subject to the right of a seller of described in subsection (c)(2) shall be treated as graph (6); and goods that has sold goods to the debtor, in the a secured claim.’’. (2) by inserting after paragraph (4) the fol- ordinary course of the business of the seller, to (d) CLERICAL AMENDMENTS.— lowing: reclaim such goods if the debtor has received (1) TABLE OF CHAPTERS.—In the table of chap- ‘‘(5) INCLUSION OF FEDERAL TRADE COMMIS- such goods within 45 days prior to the com- ters for title 11, United States Code, the item re- SION PAMPHLET.— mencement of a case under this title, but such lating to chapter 12, is amended to read as fol- ‘‘(A) IN GENERAL.—Any application to open a seller may not reclaim any such goods unless the lows: credit card account for any person under an seller demands in writing the reclamation of ‘‘12. Adjustments of Debts of a Family open end consumer credit plan, or a solicitation such goods— Farmer or Family Fisherman with or an advertisement to open such an account ‘‘(A) before 45 days after the date of receipt of Regular Annual Income ...... 1201’’. without requiring an application, that is elec- such goods by the debtor; or tronically transmitted to or accessed by a con- ‘‘(B) if such 45-day period expires after the (2) TABLE OF SECTIONS.—The table of sections sumer shall be accompanied by an electronic commencement of the case, before 20 days after for chapter 12 of title 11, United States Code, is version (or an electronic link thereto) of the the date of commencement of the case. amended by adding at the end the following pamphlet published by the Federal Trade Com- ‘‘(2) Notwithstanding the failure of the seller new item: mission relating to choosing and using credit to provide notice in a manner consistent with ‘‘1232. Additional provisions relating to family cards. this subsection, the seller shall be entitled to as- fishermen.’’. ‘‘(B) COSTS.—The card issuer with respect to sert the rights established in section 503(b)(7) of (e) MAGNUSON-STEVENS FISHERY CONSERVA- an account described in subparagraph (A) shall this title.’’. TION AND MANAGEMENT ACT.—Nothing in this be responsible for all costs associated with com- (b) ADMINISTRATIVE EXPENSES.—Section 503(b) title is intended to change, affect, or amend the pliance with that subparagraph.’’. of title 11, United States Code, is amended—

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00094 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S439 (1) in paragraph (5), by striking ‘‘and’’ at the SEC. 1440. AVAILABILITY OF TOLL-FREE ACCESS ‘‘(IX) means a master agreement that provides end; TO INFORMATION. for an agreement or transaction referred to in (2) in paragraph (6), by striking the period at Section 127(b)(11) of the Truth in Lending Act subclause (I), (III), (IV), (V), (VI), (VII), or the end and inserting ‘‘; and’’; and (15 U.S.C. 1637(b)), as added by this Act, is (VIII), together with all supplements to any (3) by adding at the end the following: amended by adding at the end the following: such master agreement, without regard to ‘‘(7) the invoice price of any goods received by ‘‘(K) A creditor that maintains a toll-free tele- whether the master agreement provides for an the debtor within 20 days of the date of filing of phone number for the purpose of providing cus- agreement or transaction that is not a securities a case under this title where the goods have tomers with the actual number of months that it contract under this clause, except that the mas- been sold to the debtor in the ordinary course of will take to repay an outstanding balance shall ter agreement shall be considered to be a securi- such seller’s business.’’. include the following statement on each billing ties contract under this clause only with respect SEC. 1436. PROVIDING REQUESTED TAX DOCU- statement: ‘Making only the minimum payment to each agreement or transaction under the mas- MENTS TO THE COURT. will increase the interest you pay and the time ter agreement that is referred to in subclause (I), In the case of an individual under chapter 7, it takes to repay your balance. For more infor- (III), (IV), (V), (VI), (VII), or (VIII); and the court shall not grant a discharge unless re- mation, call this toll-free number: llll.’. ’’. ‘‘(X) means any security agreement or ar- quested tax documents have been provided to TITLE XV—GENERAL EFFECTIVE DATE; rangement or other credit enhancement related the court. In the case of an individual under APPLICATION OF AMENDMENTS to any agreement or transaction referred to in chapter 11 or 13, the court shall not confirm a SEC. 1501. EFFECTIVE DATE; APPLICATION OF this clause (other than subclause (II)).’’. plan of reorganization unless requested tax doc- AMENDMENTS. (c) DEFINITION OF COMMODITY CONTRACT.— uments have been filed with the court. (a) EFFECTIVE DATE.—Except as provided oth- Section 11(e)(8)(D)(iii) of the Federal Deposit In- SEC. 1437. DEFINITION OF FAMILY FARMER. erwise in this Act, this Act and the amendments surance Act (12 U.S.C. 1821(e)(8)(D)(iii)) is Section 101(18) of title 11, United States Code, made by this Act shall take effect 180 days after amended to read as follows: is amended— the date of enactment of this Act. ‘‘(iii) COMMODITY CONTRACT.—The term ‘com- (1) in subparagraph (A) by— (b) APPLICATION OF AMENDMENTS.—The modity contract’ means— (A) striking ‘‘$1,500,000’’ and inserting amendments made by this Act shall not apply ‘‘(I) with respect to a futures commission mer- ‘‘$3,000,000’’; and with respect to cases commenced under title 11, chant, a contract for the purchase or sale of a (B) striking ‘‘80’’ and inserting ‘‘50’’; and United States Code, before the effective date of commodity for future delivery on, or subject to (2) in subparagraph (B)(ii) by striking this Act. the rules of, a contract market or board of trade; ‘‘$1,500,000’’ and inserting ‘‘$3,000,000’’. ‘‘(II) with respect to a foreign futures commis- TITLE XVI—FINANCIAL INSTITUTIONS sion merchant, a foreign future; SEC. 1438. ENCOURAGING CREDITWORTHINESS. INSOLVENCY IMPROVEMENT ‘‘(III) with respect to a leverage transaction (a) SENSE OF THE CONGRESS.—It is the sense of SEC. 1601. SHORT TITLE. merchant, a leverage transaction; the Congress that— This title may be cited as the ‘‘Financial Insti- ‘‘(IV) with respect to a clearing organization, (1) certain lenders may sometimes offer credit tutions Insolvency Improvement Act of 2000’’. a contract for the purchase or sale of a com- to consumers indiscriminately, without taking SEC. 1602. TREATMENT OF CERTAIN AGREE- modity for future delivery on, or subject to the steps to ensure that consumers are capable of re- MENTS BY CONSERVATORS OR RE- rules of, a contract market or board of trade paying the resulting debt, and in a manner CEIVERS OF INSURED DEPOSITORY that is cleared by such clearing organization, or which may encourage certain consumers to ac- INSTITUTIONS. commodity option traded on, or subject to the cumulate additional debt; and (a) DEFINITION OF QUALIFIED FINANCIAL CON- rules of, a contract market or board of trade (2) resulting consumer debt may increasingly TRACT.—Section 11(e)(8)(D)(i) of the Federal De- that is cleared by such clearing organization; be a major contributing factor to consumer in- posit Insurance Act (12 U.S.C. 1821(e)(8)(D)(i)) ‘‘(V) with respect to a commodity options solvency. is amended by inserting ‘‘, resolution, or order’’ dealer, a commodity option; (b) STUDY REQUIRED.—The Board of Gov- after ‘‘any similar agreement that the Corpora- ‘‘(VI) any other agreement or transaction that ernors of the Federal Reserve System (hereafter tion determines by regulation’’. is similar to any agreement or transaction re- in this section referred to as the ‘‘Board’’) shall (b) DEFINITION OF SECURITIES CONTRACT.— ferred to in this clause; conduct a study of— Section 11(e)(8)(D)(ii) of the Federal Deposit In- ‘‘(VII) any combination of the agreements or (1) consumer credit industry practices of solic- surance Act (12 U.S.C. 1821(e)(8)(D)(ii)) is transactions referred to in this clause; iting and extending credit— amended to read as follows: ‘‘(VIII) any option to enter into any agree- (A) indiscriminately; ‘‘(ii) SECURITIES CONTRACT.—The term ‘securi- ment or transaction referred to in this clause; (B) without taking steps to ensure that con- ties contract’— ‘‘(IX) a master agreement that provides for an sumers are capable of repaying the resulting ‘‘(I) means a contract for the purchase, sale, agreement or transaction referred to in sub- debt; and or loan of a security, a certificate of deposit, a clause (I), (II), (III), (IV), (V), (VI), (VII), or (C) in a manner that encourages consumers to mortgage loan, or any interest in a mortgage (VIII), together with all supplements to any accumulate additional debt; and loan, a group or index of securities, certificates such master agreement, without regard to (2) the effects of such practices on consumer of deposit, or mortgage loans or interests therein whether the master agreement provides for an debt and insolvency. (including any interest therein or based on the agreement or transaction that is not a com- (c) REPORT AND REGULATIONS.—Not later than value thereof) or any option on any of the fore- modity contract under this clause, except that 12 months after the date of enactment of this going, including any option to purchase or sell the master agreement shall be considered to be a Act, the Board— any such security, certificate of deposit, loan, commodity contract under this clause only with (1) shall make public a report on its findings interest, group or index, or option; respect to each agreement or transaction under with respect to the indiscriminate solicitation ‘‘(II) does not include any purchase, sale, or the master agreement that is referred to in sub- and extension of credit by the credit industry; repurchase obligation under a participation in a clause (I), (II), (III), (IV), (V), (VI), (VII), or (2) may issue regulations that would require commercial mortgage loan unless the Corpora- (VIII); or additional disclosures to consumers; and tion determines by regulation, resolution, or ‘‘(X) a security agreement or arrangement or (3) may take any other actions, consistent order to include any such agreement within the other credit enhancement related to any agree- with its existing statutory authority, that the meaning of such term; ment or transaction referred to in this clause.’’. Board finds necessary to ensure responsible in- ‘‘(III) means any option entered into on a na- (d) DEFINITION OF FORWARD CONTRACT.—Sec- dustrywide practices and to prevent resulting tional securities exchange relating to foreign tion 11(e)(8)(D)(iv) of the Federal Deposit Insur- consumer debt and insolvency. currencies; ance Act (12 U.S.C. 1821(e)(8)(D)(iv)) is amended SEC. 1439. PROPERTY NO LONGER SUBJECT TO ‘‘(IV) means the guarantee by or to any secu- to read as follows: REDEMPTION. rities clearing agency of any settlement of cash, ‘‘(iv) FORWARD CONTRACT.—The term ‘forward Section 541(b) of title 11 of the United States securities, certificates of deposit, mortgage loans contract’ means— Code is amended by adding at the end the fol- or interests therein, group or index of securities, ‘‘(I) a contract (other than a commodity con- lowing: certificates of deposit, or mortgage loans or in- tract) for the purchase, sale, or transfer of a ‘‘(6) any interest of the debtor in property terests therein (including any interest therein or commodity or any similar good, article, service, where the debtor pledged or sold tangible per- based on the value thereof) or option on any of right, or interest which is presently or in the fu- sonal property (other than securities or written the foregoing, including any option to purchase ture becomes the subject of dealing in the for- or printed evidences of indebtedness or title) as or sell any such security, certificate of deposit, ward contract trade, or product or byproduct collateral for a loan or advance of money, loan, interest, group or index or option; thereof, with a maturity date that is more than where— ‘‘(V) means any margin loan; 2 days after the date on which the contract is ‘‘(A) the tangible personal property is in the ‘‘(VI) means any other agreement or trans- entered into, including a repurchase agreement, possession of the pledgee or transferee; action that is similar to any agreement or trans- reverse repurchase agreement, consignment, ‘‘(B) the debtor has no obligation to repay the action referred to in this clause (other than sub- lease, swap, hedge transaction, deposit, loan, money, redeem the collateral, or buy back the clause (II)); option, allocated transaction, unallocated property at a stipulated price; and ‘‘(VII) means any combination of the agree- transaction, or any other similar agreement; ‘‘(C) neither the debtor nor the trustee have ments or transactions referred to in this clause ‘‘(II) any combination of agreements or trans- exercised any right to redeem provided under (other than subclause (II)); actions referred to in subclauses (I) and (III); the contract or State law, in a timely manner as ‘‘(VIII) means any option to enter into any ‘‘(III) any option to enter into any agreement provided under State law and section 108(b) of agreement or transaction referred to in this or transaction referred to in subclause (I) or this title.’’. clause (other than subclause (II)); (II);

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00095 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S440 CONGRESSIONAL RECORD — SENATE February 7, 2000 ‘‘(IV) a master agreement that provides for an ‘‘(I) means any agreement, including the serting ‘‘such person has to cause the termi- agreement or transaction referred to in sub- terms and conditions incorporated by reference nation, liquidation, or acceleration’’; clauses (I), (II), or (III), together with all sup- in any such agreement, that is— (3) by striking clause (ii) of subparagraph (A) plements to any such master agreement, without ‘‘(aa) an interest rate swap, option, future, or and inserting the following: regard to whether the master agreement pro- forward agreement, including a rate floor, rate ‘‘(ii) any right under any security agreement vides for an agreement or transaction that is not cap, rate collar, cross-currency rate swap, and or arrangement or other credit enhancement re- a forward contract under this clause, except basis swap; lated to 1 or more qualified financial contracts that the master agreement shall be considered to ‘‘(bb) a spot, same day-tomorrow, tomorrow- described in clause (i); or’’; and be a forward contract under this clause only next, forward, or other foreign exchange or pre- (4) by striking clause (ii) of subparagraph (E) with respect to each agreement or transaction cious metals agreement; and inserting the following: under the master agreement that is referred to ‘‘(cc) a currency swap, option, future, or for- ‘‘(ii) any right under any security agreement in subclause (I), (II), or (III); or ward agreement; or arrangement or other credit enhancement re- ‘‘(V) a security agreement or arrangement or ‘‘(dd) an equity index or equity swap, option, lated to 1 or more qualified financial contracts other credit enhancement related to any agree- future, or forward agreement; described in clause (i); or’’. (i) AVOIDANCE OF TRANSFERS.—Section ment or transaction referred to in subclause (I), ‘‘(ee) a debt index or debt swap, option, fu- 11(e)(8)(C)(i) of the Federal Deposit Insurance (II), (III), or (IV).’’. ture, or forward agreement; Act (12 U.S.C. 1821(e)(8)(C)(i)) is amended by in- (e) DEFINITION OF REPURCHASE AGREEMENT ‘‘(ff) a credit spread or credit swap, option, serting ‘‘section 5242 of the Revised Statutes (12 AND REVERSE REPURCHASE AGREEMENT.—Sec- future, or forward agreement; or U.S.C. 91), or any other Federal or State law re- tion 11(e)(8)(D)(v) of the Federal Deposit Insur- ‘‘(gg) a commodity index or commodity swap, lating to the avoidance of preferential or fraud- ance Act (12 U.S.C. 1821(e)(8)(D)(v)) is amended option, future, or forward agreement; ulent transfers,’’ before ‘‘the Corporation’’. to read as follows: ‘‘(II) means any agreement or transaction that is similar to any other agreement or trans- SEC. 1603. AUTHORITY OF THE CORPORATION ‘‘(v) REPURCHASE AGREEMENT; REVERSE RE- action referred to in this clause, that is pres- WITH RESPECT TO FAILED AND FAIL- PURCHASE AGREEMENT.—The terms ‘repurchase ently, or in the future becomes, regularly en- ING INSTITUTIONS. agreement’ and ‘reverse repurchase agree- tered into in the swap market (including terms (a) IN GENERAL.—Section 11(e)(8) of the Fed- ment’— and conditions incorporated by reference in eral Deposit Insurance Act (12 U.S.C. 1821(e)(8)) ‘‘(I) mean an agreement, including related such agreement), and that is a forward, swap, is amended— terms, which provides for the transfer of 1 or future, or option on 1 or more rates, currencies, (1) in subparagraph (E), by striking ‘‘other more certificates of deposit, mortgage-related se- commodities, equity securities or other equity in- than paragraph (12) of this subsection, sub- curities (as such term is defined in the Securities struments, debt securities or other debt instru- section (d)(9)’’ and inserting ‘‘other than sub- Exchange Act of 1934), mortgage loans, interests ments, or economic indices or measures of eco- sections (d)(9) and (e)(10)’’; and in mortgage-related securities or mortgage loans, nomic risk or value; (2) by adding at the end the following: eligible bankers’ acceptances, qualified foreign ‘‘(F) CLARIFICATION.—No provision of law ‘‘(III) means any combination of agreements government securities or securities that are di- shall be construed as limiting the right or power or transactions referred to in this clause; rect obligations of, or that are fully guaranteed ‘‘(IV) means any option to enter into any of the Corporation, or authorizing any court or by, the United States or any agency of the agreement or transaction referred to in this agency to limit or delay, in any manner, the United States against the transfer of funds by clause; right or power of the Corporation to transfer the transferee of such certificates of deposit, eli- ‘‘(V) means a master agreement that provides any qualified financial contract in accordance gible bankers’ acceptances, securities, loans, or for an agreement or transaction referred to in with paragraphs (9) and (10) or to disaffirm or interests with a simultaneous agreement by such subclause (I), (II), (III), or (IV), together with repudiate any such contract in accordance with transferee to transfer to the transferor thereof all supplements to any such master agreement, subsection (e)(1). ‘‘(G) WALKAWAY CLAUSES NOT EFFECTIVE.— certificates of deposit, eligible bankers’ accept- without regard to whether the master agreement ances, securities, loans, or interests as described ‘‘(i) IN GENERAL.—Notwithstanding the provi- contains an agreement or transaction that is not sions of subparagraphs (A) and (E), and sec- in this subclause, at a date certain that is not a swap agreement under this clause, except that later than 1 year after the date of such transfers tions 403 and 404 of the Federal Deposit Insur- the master agreement shall be considered to be a ance Corporation Improvement Act of 1991, no or on demand, against the transfer of funds, or swap agreement under this clause only with re- any other similar agreement; walkaway clause shall be enforceable in a quali- spect to each agreement or transaction under fied financial contract of an insured depository ‘‘(II) does not include any repurchase obliga- the master agreement that is referred to in sub- tion under a participation in a commercial mort- institution in default. clause (I), (II), (III), or (IV); ‘‘(ii) WALKAWAY CLAUSE DEFINED.—For pur- gage loan unless the Corporation determines by ‘‘(VI) means any security agreement or ar- regulation, resolution, or order to include any poses of this subparagraph, the term ‘walkaway rangement or other credit enhancement related clause’ means a provision in a qualified finan- such participation within the meaning of such to any agreements or transactions referred to in term; cial contract that, after calculation of a value of subparagraph (I), (II), (III), or (IV); and a party’s position or an amount due to or from ‘‘(III) means any combination of agreements ‘‘(VII) is applicable for purposes of this Act or transactions referred to in subclauses (I) and 1 of the parties in accordance with its terms only, and shall not be construed or applied so as upon termination, liquidation, or acceleration of (IV); to challenge or affect the characterization, defi- ‘‘(IV) means any option to enter into any the qualified financial contract, either does not nition, or treatment of any swap agreement create a payment obligation of a party or extin- agreement or transaction referred to in sub- under any other statute, regulation, or rule, in- clause (I) or (III); guishes a payment obligation of a party in cluding the Securities Act of 1933, the Securities whole or in part solely because of such party’s ‘‘(V) means a master agreement that provides Exchange Act of 1934, the Public Utility Holding for an agreement or transaction referred to in status as a nondefaulting party.’’. Company Act of 1935, the Trust Indenture Act (b) TECHNICAL AND CONFORMING AMEND- subclause (I), (III), or (IV), together with all of 1939, the Investment Company Act of 1940, supplements to any such master agreement, MENT.—Section 11(e)(12)(A) of the Federal De- the Investment Advisers Act of 1940, the Securi- posit Insurance Act (12 U.S.C. 1821(e)(12)(A)) is without regard to whether the master agreement ties Investor Protection Act of 1970, the Com- provides for an agreement or transaction that is amended by inserting ‘‘or the exercise of rights modity Exchange Act, and the regulations pro- or powers by’’ after ‘‘the appointment of’’. not a repurchase agreement under this clause, mulgated by the Securities and Exchange Com- SEC. 1604. AMENDMENTS RELATING TO TRANS- except that the master agreement shall be con- mission or the Commodity Futures Trading Com- sidered to be a repurchase agreement under this FERS OF QUALIFIED FINANCIAL mission.’’. CONTRACTS. subclause only with respect to each agreement (g) DEFINITION OF TRANSFER.—Section (a) TRANSFERS OF QUALIFIED FINANCIAL CON- or transaction under the master agreement that 11(e)(8)(D)(viii) of the Federal Deposit Insur- TRACTS TO FINANCIAL INSTITUTIONS.—Section is referred to in subclause (I), (III), or (IV); and ance Act (12 U.S.C. 1821(e)(8)(D)(viii)) is amend- 11(e)(9) of the Federal Deposit Insurance Act (12 ‘‘(VI) means a security agreement or arrange- ed to read as follows: U.S.C. 1821(e)(9)) is amended to read as follows: ment or other credit enhancement related to any ‘‘(viii) TRANSFER.—The term ‘transfer’ means ‘‘(9) TRANSFER OF QUALIFIED FINANCIAL CON- agreement or transaction referred to in sub- every mode, direct or indirect, absolute or condi- TRACTS.— clause (I), (III), (IV), or (V). tional, voluntary or involuntary, of disposing of ‘‘(A) IN GENERAL.—In making any transfer of For purposes of this clause, the term ‘qualified or parting with property or with an interest in assets or liabilities of a depository institution in foreign government security’ means a security property, including retention of title as a secu- default which includes any qualified financial that is a direct obligation of, or that is fully rity interest and foreclosure of the depository contract, the conservator or receiver for such de- guaranteed by, the central government of a institutions’s equity of redemption.’’. pository institution shall either— member of the Organization for Economic Co- (h) TREATMENT OF QUALIFIED FINANCIAL CON- ‘‘(i) transfer to 1 financial institution, other operation and Development (as determined by TRACTS.—Section 11(e)(8) of the Federal Deposit than a financial institution for which a conser- regulation or order adopted by the appropriate Insurance Act (12 U.S.C. 1821(e)(8)) is amend- vator, receiver, trustee in bankruptcy, or other Federal banking authority).’’. ed— legal custodian has been appointed or which is (f) DEFINITION OF SWAP AGREEMENT.—The (1) in subparagraph (A), by striking ‘‘para- otherwise the subject of a bankruptcy or insol- Federal Deposit Insurance Act (12 U.S.C. graph (10)’’ and inserting ‘‘paragraphs (9) and vency proceeding— 1821(e)(8)(D)(vi)) is amended to read as follows: (10)’’; ‘‘(I) all qualified financial contracts between ‘‘(vi) SWAP AGREEMENT.—The term ‘swap (2) in subparagraph (A)(i), by striking ‘‘to any person or any affiliate of such person and agreement’— cause the termination or liquidation’’ and in- the depository institution in default;

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If a master agreement contains provi- of such person against such depository institu- ness day following the date of the appointment sions relating to agreements or transactions that tion under any such contract (other than any of the receiver; or are not themselves qualified financial contracts, claim which, under the terms of any such con- ‘‘(II) after the person has received notice that the master agreement shall be deemed to be a tract, is subordinated to the claims of general the contract has been transferred pursuant to qualified financial contract only with respect to unsecured creditors of such institution); paragraph (9)(A). those transactions that are themselves qualified ‘‘(III) all claims of such depository institution ‘‘(ii) CONSERVATORSHIP.—A person who is a financial contracts.’’. against such person or any affiliate of such per- party to a qualified financial contract with an SEC. 1607. FEDERAL DEPOSIT INSURANCE COR- son under any such contract; and insured depository institution may not exercise PORATION IMPROVEMENT ACT OF ‘‘(IV) all property securing or any other credit any right such person has to terminate, liq- 1991. enhancement for any contract described in sub- uidate, or net such contract under paragraph (a) DEFINITIONS.—Section 402 of the Federal clause (I) or any claim described in subclause (8)(E) or section 403 or 404 of the Federal De- Deposit Insurance Corporation Improvement Act (II) or (III) under any such contract; or posit Insurance Corporation Improvement Act of of 1991 (12 U.S.C. 4402) is amended— ‘‘(ii) transfer none of the qualified financial 1991, solely by reason of or incidental to the ap- (1) in paragraph (6)— contracts, claims, property, or other credit en- pointment of a conservator for the depository (A) by redesignating subparagraphs (B) hancement referred to in clause (i) (with respect institution (or the insolvency or financial condi- through (D) as subparagraphs (C) through (E), to such person and any affiliate of such per- tion of the depository institution for which the respectively; son). conservator has been appointed). (B) by inserting after subparagraph (A) the ‘‘(B) TRANSFER TO FOREIGN BANK, FOREIGN FI- ‘‘(iii) NOTICE.—For purposes of this para- following: NANCIAL INSTITUTION, OR BRANCH OR AGENCY OF graph, the Corporation as receiver or conser- ‘‘(B) an uninsured national bank or an unin- A FOREIGN BANK OR FINANCIAL INSTITUTION.—In vator of an insured depository institution shall sured State bank that is a member of the Fed- transferring any qualified financial contract be deemed to have notified a person who is a eral Reserve System, if the national bank or and related claims and property pursuant to party to a qualified financial contract with such State member bank is not eligible to make appli- subparagraph (A)(i), the conservator or receiver depository institution if the Corporation has cation to become an insured bank under section for the depository institution shall not make taken steps reasonably calculated to provide no- 5 of the Federal Deposit Insurance Act;’’; and such transfer to a foreign bank, financial insti- tice to such person by the time specified in sub- (C) by striking subparagraph (C) (as redesig- tution organized under the laws of a foreign nated) and inserting the following: country, or a branch or agency of a foreign paragraph (A). ‘‘(C) TREATMENT OF BRIDGE BANKS.—A finan- ‘‘(C) a branch or agency of a foreign bank, a bank or financial institution unless, under the cial institution for which a conservator, re- foreign bank and any branch or agency of the law applicable to such bank, financial institu- foreign bank, or the foreign bank that estab- tion, branch, or agency, to the qualified finan- ceiver, trustee in bankruptcy, or other legal cus- todian has been appointed or that is otherwise lished the branch or agency, as those terms are cial contract, and to any netting contract, any defined in section 1(b) of the International security agreement or arrangement or other the subject of a bankruptcy or insolvency pro- ceeding for purposes of subsection (e)(9) does Banking Act of 1978;’’; credit enhancement related to 1 or more quali- (2) in paragraph (11), by inserting before the fied financial contracts the contractual rights of not include— ‘‘(i) a bridge bank; or period ‘‘and any other clearing organization the parties to such qualified financial contracts, with which such clearing organization has a netting contracts, security agreements, or ar- ‘‘(ii) a depository institution organized by the Corporation, for which a conservator is ap- netting contract’’; rangements, or other credit enhancements are (3) in paragraph (14)(A), by striking clause (i) enforceable substantially to the same extent as pointed either— ‘‘(I) immediately upon the organization of the and inserting the following: permitted under this section. ‘‘(i) means a contract or agreement between 2 ‘‘(C) TRANSFER OF CONTRACT SUBJECT TO THE institution; or or more financial institutions, clearing organi- RULES OF A CLEARING ORGANIZATION.—If a con- ‘‘(II) at the time of a purchase and assump- zations, or members that provides for netting servator or receiver transfers any qualified fi- tion transaction between such institution and present or future payment obligations or pay- nancial contract and related claims, property, the Corporation as receiver for a depository in- ment entitlements (including liquidation or and credit enhancements pursuant to subpara- stitution in default.’’. closeout values relating to such obligations or graph (A)(i) and such contract is subject to the SEC. 1605. AMENDMENTS RELATING TO entitlements) among the parties to the agree- rules of a clearing organization, the clearing or- DISAFFIRMANCE OR REPUDIATION ment; and’’; and ganization shall not be required to accept the OF QUALIFIED FINANCIAL CON- TRACTS. (4) by adding at the end the following: transferee as a member by virtue of the transfer. Section 11(e) of the Federal Deposit Insurance ‘‘(15) PAYMENT.—The term ‘payment’ means a ‘‘(D) DEFINITION.—For purposes of this para- Act (12 U.S.C. 1821(e)) is amended— payment of United States dollars, another cur- graph, the term ‘financial institution’ means a (1) by redesignating paragraphs (11) through rency, or a composite currency, and a noncash broker or dealer, a depository institution, a fu- (15) as paragraphs (12) through (16), respec- delivery, including a payment or delivery to liq- tures commission merchant, or any other insti- tively; uidate an unmatured obligation.’’. tution that the Corporation determines, by regu- (2) in paragraph (8)(C)(i), by striking ‘‘(11)’’ (b) ENFORCEABILITY OF BILATERAL NETTING lation, to be a financial institution.’’. and inserting ‘‘(12)’’; CONTRACTS.—Section 403 of the Federal Deposit (b) NOTICE TO QUALIFIED FINANCIAL CON- (3) in paragraph (8)(E), by striking ‘‘(12)’’ and Insurance Corporation Improvement Act of 1991 TRACT COUNTERPARTIES.—Section 11(e)(10)(A) of inserting ‘‘(13)’’; and the Federal Deposit Insurance Act (12 U.S.C. (12 U.S.C. 4403) is amended— (4) by inserting after paragraph (10) the fol- (1) by striking subsection (a) and inserting the 1821(e)(10)(A)) is amended by striking the flush lowing: following: material immediately following clause (ii) and ‘‘(11) DISAFFIRMANCE OR REPUDIATION OF ‘‘(a) GENERAL RULE.—Notwithstanding any inserting the following: QUALIFIED FINANCIAL CONTRACTS.—In exercising ‘‘the conservator or receiver shall notify any other provision of Federal or State law (other the right to disaffirm or repudiate with respect person who is a party to any such contract of than paragraphs (8)(E), (8)(F), and (10)(B) of to any qualified financial contract to which an such transfer by 5:00 p.m. (eastern time) on the section 11(e) of the Federal Deposit Insurance insured depository institution is a party, the business day following the date of the appoint- Act or any order authorized under section conservator or receiver for such institution shall ment of the receiver in the case of a receiver- 5(b)(2) of the Securities Investor Protection Act either— ship, or the business day following such transfer of 1970, the covered contractual payment obliga- ‘‘(A) disaffirm or repudiate all qualified fi- in the case of a conservatorship.’’. tions and the covered contractual payment enti- (c) RIGHTS AGAINST RECEIVER AND TREATMENT nancial contracts between— tlements between any 2 financial institutions ‘‘(i) any person or any affiliate of such per- OF BRIDGE BANKS.—Section 11(e)(10) of the Fed- shall be netted in accordance with, and subject eral Deposit Insurance Act (12 U.S.C. son; and to the conditions of, the terms of any applicable 1821(e)(10)) is amended— ‘‘(ii) the depository institution in default; or netting contract (except as provided in section (1) by redesignating subparagraph (B) as sub- ‘‘(B) disaffirm or repudiate none of the quali- 561(b)(2) of title 11, United States Code).’’; and paragraph (D); and fied financial contracts referred to in subpara- (2) by adding at the end the following: (2) by inserting after subparagraph (A) the graph (A) (with respect to such person or any ‘‘(f) ENFORCEABILITY OF SECURITY AGREE- following: affiliate of such person).’’. MENTS.—The provisions of any security agree- ‘‘(B) CERTAIN RIGHTS NOT ENFORCEABLE.— SEC. 1606. CLARIFYING AMENDMENT RELATING ment or arrangement or other credit enhance- ‘‘(i) RECEIVERSHIP.—A person who is a party TO MASTER AGREEMENTS. ment related to 1 or more netting contracts be- to a qualified financial contract with an insured Section 11(e)(8)(D)(vii) of the Federal Deposit tween any 2 financial institutions shall be en- depository institution may not exercise any Insurance Act (12 U.S.C. 1821(e)(8)(D)(vii)) is forceable in accordance with their terms (except right such person has to terminate, liquidate, or amended to read as follows: as provided in section 561(b)(2) of title 11, net such contract under paragraph (8)(A) or ‘‘(vii) TREATMENT OF MASTER AGREEMENT AS 1 United States Code) and shall not be stayed, section 403 or 404 of the Federal Deposit Insur- AGREEMENT.—Any master agreement for any avoided, or otherwise limited by any State or ance Corporation Improvement Act of 1991, sole- contract or agreement described in any pre- Federal law (other than paragraphs (8)(E), ly by reason of or incidental to the appointment ceding clause of this subparagraph (or any mas- (8)(F), and (10)(B) of section 11(e) of the Federal of a receiver for the depository institution (or ter agreement for such master agreement or Deposit Insurance Act and section 5(b)(2) of the the insolvency or financial condition of the de- agreements), together with all supplements to Securities Investor Protection Act of 1970).’’. pository institution for which the receiver has such master agreement, shall be treated as a sin- (c) ENFORCEABILITY OF CLEARING ORGANIZA- been appointed)— gle agreement and a single qualified financial TION NETTING CONTRACTS.—Section 404 of the

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Federal Deposit Insurance Corporation Im- ‘‘(d) DEFINITIONS.—For purposes of this sec- ‘‘(III) a right, whether or not in writing, aris- provement Act of 1991 (12 U.S.C. 4404) is amend- tion, the terms ‘Federal branch’, ‘Federal agen- ing under common law, under law merchant, or ed— cy’, and ‘foreign bank’ have the same meanings by reason of normal business practice.’’. (1) by striking subsection (a) and inserting the as in section 1(b) of the International Banking SEC. 1611. FEDERAL RESERVE COLLATERAL RE- following: Act of 1978.’’. QUIREMENTS. ‘‘(a) GENERAL RULE.—Notwithstanding any SEC. 1608. RECORDKEEPING REQUIREMENTS. Section 16 of the Federal Reserve Act (12 other provision of Federal or State law (other Section 11(e)(8) of the Federal Deposit Insur- U.S.C. 412) is amended in the third sentence of than paragraphs (8)(E), (8)(F), and (10)(B) of ance Act (12 U.S.C. 1821(e)(8)) is amended by the second undesignated paragraph, by striking section 11(e) of the Federal Deposit Insurance adding at the end the following: ‘‘acceptances acquired under section 13 of this Act or any order authorized under section ‘‘(H) RECORDKEEPING REQUIREMENTS.—The Act’’ and inserting ‘‘acceptances acquired under 5(b)(2) of the Securities Investor Protection Act Corporation, in consultation with the appro- section 10A, 10B, 13, or 13A’’. of 1970) the covered contractual payment obliga- priate Federal banking agencies, may prescribe tions and the covered contractual payment enti- SEC. 1612. EFFECTIVE DATE; APPLICATION OF regulations requiring more detailed record- AMENDMENTS. tlements of a member of a clearing organization keeping with respect to qualified financial con- (a) SEVERABILITY.—If any provision of this to and from all other members of the clearing or- tracts (including market valuations) by insured title or any amendment made by this title, or the ganization shall be netted in accordance with, depository institutions.’’. application of any such provision or amendment and subject to the conditions of, the terms of SEC. 1609. EXEMPTIONS FROM CONTEMPORA- to any person or circumstance, is held to be un- any applicable netting contract (except as pro- NEOUS EXECUTION REQUIREMENT. constitutional, the remaining provisions of and vided in section 561(b)(2) of title 11, United Section 13(e)(2) of the Federal Deposit Insur- amendments made by this title and the applica- States Code).’’; and (2) by adding at the end the following: ance Act (12 U.S.C. 1823(e)(2)) is amended to tion of such other provisions and amendments to ‘‘(h) ENFORCEABILITY OF SECURITY AGREE- read as follows: any person or circumstance shall not be affected XEMPTIONS FROM CONTEMPORANEOUS MENTS.—The provisions of any security agree- ‘‘(2) E thereby. ment or arrangement or other credit enhance- EXECUTION REQUIREMENT.— (b) EFFECTIVE DATE.—This title and the ‘‘(A) IN GENERAL.—An agreement described in ment related to 1 or more netting contracts be- amendments made by this title shall take effect subparagraph (B) shall not be deemed to be in- tween any 2 members of a clearing organization on the date of enactment of this Act. valid pursuant to paragraph (1)(B) solely on the shall be enforceable in accordance with their (c) APPLICATION OF AMENDMENTS.—The basis— terms (except as provided in section 561(b)(2) of amendments made by this title shall apply with ‘‘(i) that the agreement was not executed con- title 11, United States Code) and shall not be respect to cases commenced or appointments temporaneously with the acquisition of the col- stayed, avoided, or otherwise limited by any made under any Federal or State law after the lateral; or State or Federal law (other than paragraphs date of enactment of this Act, but shall not ‘‘(ii) of any pledge, delivery, or substitution of apply with respect to cases commenced or ap- (8)(E), (8)(F), and (10)(B) of section 11(e) of the the collateral made in accordance with the Federal Deposit Insurance Act and section pointments made under any Federal or State agreement. law before the date of enactment of this Act. 5(b)(2) of the Securities Investor Protection Act ‘‘(B) AGREEMENT DESCRIBED.—An agreement of 1970).’’. is described in this subparagraph if it is an TITLE XVII—METHAMPHETAMINE AND (d) ENFORCEABILITY OF CONTRACTS WITH UN- agreement to provide for the lawful OTHER CONTROLLED SUBSTANCES INSURED NATIONAL BANKS AND UNINSURED FED- collateralization of— SEC. 1701. SHORT TITLE. ERAL BRANCHES AND AGENCIES.—The Federal ‘‘(i) deposits of, or other credit extension by, a This title may be cited as the ‘‘Methamphet- Deposit Insurance Corporation Improvement Act Federal, State, or local governmental entity, or amine Anti-Proliferation Act of 2000’’. of 1991 (12 U.S.C. 4401 et seq.) is amended by of any depositor referred to in section 11(a)(2), adding at the end the following: Subtitle A—Methamphetamine Production, including an agreement to provide collateral in Trafficking, and Abuse ‘‘SEC. 408. TREATMENT OF CONTRACTS WITH UN- lieu of a surety bond; INSURED NATIONAL BANKS AND UN- ‘‘(ii) securities deposited under section CHAPTER 1—CRIMINAL PENALTIES INSURED FEDERAL BRANCHES AND SEC. 1711. ENHANCED PUNISHMENT OF AMPHET- AGENCIES. 345(b)(2) of title 11, United States Code; ‘‘(iii) extensions of credit, including an over- AMINE LABORATORY OPERATORS. ‘‘(a) IN GENERAL.—Notwithstanding any other (a) AMENDMENT TO FEDERAL SENTENCING provision of law, paragraphs (8), (9), (10), and draft, from a Federal reserve bank or Federal GUIDELINES.—Pursuant to its authority under (11) of section 11(e) of the Federal Deposit In- home loan bank; or ‘‘(iv) 1 or more qualified financial contracts section 994(p) of title 28, United States Code, the surance Act shall apply to an uninsured na- (as defined in section 11(e)(8)(D)).’’. United States Sentencing Commission shall tional bank or uninsured Federal branch or SEC. 1610. SIPC STAY. amend the Federal sentencing guidelines in ac- Federal agency, except that for such purpose— cordance with this section with respect to any ‘‘(1) any reference to the ‘Corporation as re- Section 5(b)(2) of the Securities Investor Pro- offense relating to the manufacture, importa- ceiver’ or ‘the receiver or the Corporation’ shall tection Act of 1970 (15 U.S.C. 78eee(b)(2)) is tion, exportation, or trafficking in amphetamine refer to the receiver of an uninsured national amended by adding at the end the following: (including an attempt or conspiracy to do any bank or uninsured Federal branch or Federal ‘‘(C) EXCEPTION FROM STAY.— of the foregoing) in violation of— agency appointed by the Comptroller of the Cur- ‘‘(i) IN GENERAL.—Notwithstanding section 362 (1) the Controlled Substances Act (21 U.S.C. rency; of title 11, United States Code, neither the filing ‘‘(2) any reference to the ‘Corporation’ (other of an application under subsection (a)(3) of this 801 et seq.); than in section 11(e)(8)(D) of that Act), the section nor any order or decree obtained by (2) the Controlled Substances Import and Ex- ‘Corporation, whether acting as such or as con- SIPC from the court shall operate as a stay of port Act (21 U.S.C. 951 et seq.); or servator or receiver’, a ‘receiver’, or a ‘conser- any contractual right of a creditor to liquidate, (3) the Maritime Drug Law Enforcement Act vator’ shall refer to the receiver or conservator terminate, or accelerate a securities contract, (46 U.S.C. App. 1901 et seq.). of an uninsured national bank or uninsured commodity contract, forward contract, repur- (b) GENERAL REQUIREMENT.—In carrying out Federal branch or Federal agency appointed by chase agreement, swap agreement, or master this section, the United States Sentencing Com- the Comptroller of the Currency; and netting agreement, each as defined in title 11, mission shall, with respect to each offense de- ‘‘(3) any reference to an ‘insured depository United States Code, to offset or net termination scribed in subsection (a) relating to amphet- institution’ or ‘depository institution’ shall refer values, payment amounts, or other transfer obli- amine— to an uninsured national bank or an uninsured gations arising under or in connection with 1 or (1) review and amend its guidelines to provide Federal branch or Federal agency. more of such contracts or agreements, or to fore- for increased penalties such that those penalties ‘‘(b) LIABILITY.—The liability of a receiver or close on any cash collateral pledged by the debt- are comparable to the base offense level for conservator of an uninsured national bank or or, whether or not with respect to 1 or more of methamphetamine; and uninsured Federal branch or agency shall be de- such contracts or agreements. (2) take any other action the Commission con- termined in the same manner and subject to the ‘‘(ii) STAYS ON FORECLOSURE.—Notwith- siders necessary to carry out this subsection. same limitations that apply to receivers and standing clause (i), an application, order, or de- (c) ADDITIONAL REQUIREMENTS.—In carrying conservators of insured depository institutions cree described therein may operate as a stay of out this section, the United States Sentencing under section 11(e) of the Federal Deposit Insur- the foreclosure on securities collateral pledged Commission shall ensure that the sentencing ance Act. by the debtor, whether or not with respect to 1 guidelines for offenders convicted of offenses de- ‘‘(c) REGULATORY AUTHORITY.— or more of such contracts or agreements, securi- scribed in subsection (a) reflect the heinous na- ‘‘(1) IN GENERAL.—The Comptroller of the Cur- ties sold by the debtor under a repurchase ture of such offenses, the need for aggressive rency, in consultation with the Federal Deposit agreement or securities lent under a securities law enforcement action to fight such offenses, Insurance Corporation, may promulgate regula- lending agreement. and the extreme dangers associated with unlaw- tions to implement this section. ‘‘(iii) DEFINITION.—As used in this section, the ful activity involving amphetamines, includ- ‘‘(2) SPECIFIC REQUIREMENT.—In promulgating term ‘contractual right’ includes— ing— regulations to implement this section, the Comp- ‘‘(I) a right set forth in a rule or bylaw of a (1) the rapidly growing incidence of amphet- troller of the Currency shall ensure that the reg- national securities exchange, a national securi- amine abuse and the threat to public safety that ulations generally are consistent with the regu- ties association, or a securities clearing agency; such abuse poses; lations and policies of the Federal Deposit In- ‘‘(II) a right set forth in a bylaw of a clearing (2) the high risk of amphetamine addiction; surance Corporation adopted pursuant to the organization or contract market or in a resolu- (3) the increased risk of violence associated Federal Deposit Insurance Act. tion of the governing board thereof; and with amphetamine trafficking and abuse; and

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00098 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S443 (4) the recent increase in the illegal importa- (4) in paragraph (3), by striking ‘‘section 3663 Assets Forfeiture Fund in a fiscal year by rea- tion of amphetamine and precursor chemicals. of title 18, United States Code’’ and inserting son of the amendment made by subsection (a) (d) EMERGENCY AUTHORITY TO SENTENCING ‘‘section 3663A of title 18, United States Code’’. shall supplement, and not supplant, any other COMMISSION.—The United States Sentencing (b) DEPOSIT OF AMOUNTS IN DEPARTMENT OF amounts made available to the Department of Commission shall promulgate amendments pur- JUSTICE ASSETS FORFEITURE FUND.—Section Justice in such fiscal year from other sources for suant to this section as soon as practicable after 524(c)(4) of title 28, United States Code, is payment of costs described in section the date of the enactment of this Act in accord- amended— 524(c)(1)(E)(ii) of title 28, United States Code, as ance with the procedure set forth in section (1) by striking ‘‘and’’ at the end of subpara- so amended. 21(a) of the Sentencing Act of 1987 (Public Law graph (B); (2) GRANT PROGRAM.—Any amounts made 100–182), as though the authority under that (2) by striking the period at the end of sub- available in a fiscal year under the grant pro- Act had not expired. paragraph (C) and inserting ‘‘; and’’; and gram under section 501(b)(3) of the Omnibus SEC. 1712. ENHANCED PUNISHMENT OF AMPHET- (3) by adding at the end the following: Crime Control and Safe Streets Act of 1968 for AMINE OR METHAMPHETAMINE LAB- ‘‘(D) all amounts collected— the removal of hazardous substances or pollut- ORATORY OPERATORS. ‘‘(i) by the United States pursuant to a reim- ants or contaminants associated with the illegal (a) FEDERAL SENTENCING GUIDELINES.— bursement order under paragraph (2) of section manufacture of amphetamine or methamphet- (1) IN GENERAL.—Pursuant to its authority 413(q) of the Controlled Substances Act (21 amine by reason of the amendment made by sub- under section 994(p) of title 28, United States U.S.C. 853(q)); and section (b) shall supplement, and not supplant, Code, the United States Sentencing Commission ‘‘(ii) pursuant to a restitution order under any other amounts made available in such fiscal shall amend the Federal sentencing guidelines paragraph (1) or (3) of section 413(q) of the Con- year from other sources for such removal. trolled Substances Act for injuries to the United in accordance with paragraph (2) with respect SEC. 1722. REDUCTION IN RETAIL SALES TRANS- to any offense relating to the manufacture, at- States.’’. ACTION THRESHOLD FOR NON-SAFE tempt to manufacture, or conspiracy to manu- (c) CLARIFICATION OF CERTAIN ORDERS OF HARBOR PRODUCTS CONTAINING facture amphetamine or methamphetamine in RESTITUTION.—Section 3663(c)(2)(B) of title 18, PSEUDOEPHEDRINE OR violation of— United States Code, is amended by inserting PHENLYPROPANOLAMINE. (A) the Controlled Substances Act (21 U.S.C. ‘‘which may be’’ after ‘‘the fine’’. (a) REDUCTION IN TRANSACTION THRESHOLD.— 801 et seq.); (d) EXPANSION OF APPLICABILITY OF MANDA- Section 102(39)(A)(iv)(II) of the Controlled Sub- (B) the Controlled Substances Import and Ex- TORY RESTITUTION.—Section 3663A(c)(1)(A)(ii) stances Act (21 U.S.C. 802(39)(A)(iv)(II) is port Act (21 U.S.C. 951 et seq.); or of title 18, United States Code, is amended by in- amended— (C) the Maritime Drug Law Enforcement Act serting ‘‘or under section 416(a) of the Con- (1) by striking ‘‘24 grams’’ both places it ap- (46 U.S.C. App. 1901 et seq.). trolled Substances Act (21 U.S.C. 856(a)),’’ after pears and inserting ‘‘9 grams’’; and (2) REQUIREMENTS.—In carrying out this ‘‘under this title,’’. (2) by inserting before the semicolon at the paragraph, the United States Sentencing Com- (e) TREATMENT OF ILLICIT SUBSTANCE MANU- end the following: ‘‘and sold in package sizes of mission shall— FACTURING OPERATIONS AS CRIMES AGAINST not more than 3 grams of pseudoephedrine base (A) if the offense created a substantial risk of PROPERTY.—Section 416 of the Controlled Sub- or 3 grams of phenylpropanolamine base’’. harm to human life (other than a life described stances Act (21 U.S.C. 856) is amended by add- (b) EFFECTIVE DATE.—The amendments made in subparagraph (B)) or the environment, in- ing at the end the following new subsection: by subsection (a) shall take effect one year after crease the base offense level for the offense— ‘‘(c) A violation of subsection (a) shall be con- the date of the enactment of this Act. (i) by not less than 3 offense levels above the sidered an offense against property for purposes SEC. 1723. TRAINING FOR DRUG ENFORCEMENT applicable level in effect on the date of the en- of section 3663A(c)(1)(A)(ii) of title 18, United ADMINISTRATION AND STATE AND actment of this Act; or States Code.’’. LOCAL LAW ENFORCEMENT PER- (ii) if the resulting base offense level after an SEC. 1714. METHAMPHETAMINE PARAPHERNALIA. SONNEL RELATING TO CLANDES- TINE LABORATORIES. increase under clause (i) would be less than Section 422(d) of the Controlled Substances level 27, to not less than level 27; or Act (21 U.S.C. 863(d)) is amended in the matter (a) IN GENERAL.— (B) if the offense created a substantial risk of preceding paragraph (1) by inserting ‘‘meth- (1) REQUIREMENT.—The Administrator of the harm to the life of a minor or incompetent, in- amphetamine,’’ after ‘‘PCP,’’. Drug Enforcement Administration shall carry out the programs described in subsection (b) crease the base offense level for the offense— CHAPTER 2—ENHANCED LAW with respect to the law enforcement personnel of (i) by not less than 6 offense levels above the ENFORCEMENT States and localities determined by the Adminis- applicable level in effect on the date of the en- SEC. 1721. ENVIRONMENTAL HAZARDS ASSOCI- actment of this Act; or trator to have significant levels of methamphet- ATED WITH ILLEGAL MANUFACTURE amine-related or amphetamine-related crime or (ii) if the resulting base offense level after an OF AMPHETAMINE AND METH- increase under clause (i) would be less than AMPHETAMINE. projected by the Administrator to have the po- tential for such levels of crime in the future. level 30, to not less than level 30. (a) USE OF AMOUNTS OR DEPARTMENT OF JUS- (2) DURATION.—The duration of any program (3) EMERGENCY AUTHORITY TO SENTENCING TICE ASSETS FORFEITURE FUND.—Section under that subsection may not exceed 3 years. COMMISSION.—The United States Sentencing 524(c)(1)(E) of title 28, United States Code, is Commission shall promulgate amendments pur- amended— (b) COVERED PROGRAMS.—The programs de- suant to this subsection as soon as practicable (1) by inserting ‘‘(i) for’’ before ‘‘disburse- scribed in this subsection are as follows: after the date of enactment of this Act in ac- ments’’; (1) ADVANCED MOBILE CLANDESTINE LABORA- cordance with the procedure set forth in section (2) by inserting ‘‘and’’ after the semicolon; TORY TRAINING TEAMS.—A program of advanced 21(a) of the Sentencing Act of 1987 (Public Law and mobile clandestine laboratory training teams, 100–182), as though the authority under that (3) by adding at the end the following: which shall provide information and training to Act had not expired. ‘‘(ii) for payment for— State and local law enforcement personnel in techniques utilized in conducting undercover in- (b) EFFECTIVE DATE.—The amendments made ‘‘(I) costs incurred by or on behalf of the De- pursuant to this section shall apply with respect partment of Justice in connection with the re- vestigations and conspiracy cases, and other in- to any offense occurring on or after the date moval, for purposes of Federal forfeiture and formation designed to assist in the investigation that is 60 days after the date of enactment of disposition, of any hazardous substance or pol- of the illegal manufacturing and trafficking of this Act. lutant or contaminant associated with the ille- amphetamine and methamphetamine. gal manufacture of amphetamine or meth- (2) BASIC CLANDESTINE LABORATORY CERTIFI- SEC. 1713. MANDATORY RESTITUTION FOR VIOLA- CATION TRAINING.—A program of basic clandes- TIONS OF CONTROLLED SUB- amphetamine; and STANCES ACT AND CONTROLLED ‘‘(II) costs incurred by or on behalf of a State tine laboratory certification training, which SUBSTANCES IMPORT AND EXPORT or local government in connection with such re- shall provide information and training— ACT RELATING TO AMPHETAMINE moval in any case in which such State or local (A) to Drug Enforcement Administration per- AND METHAMPHETAMINE. government has assisted in a Federal prosecu- sonnel and State and local law enforcement per- (a) MANDATORY RESTITUTION.—Section 413(q) tion relating to amphetamine or methamphet- sonnel for purposes of enabling such personnel of the Controlled Substances Act (21 U.S.C. amine, to the extent such costs exceed equitable to meet any certification requirements under 853(q)) is amended— sharing payments made to such State or local law with respect to the handling of wastes cre- (1) in the matter preceding paragraph (1), by government in such case;’’. ated by illegal amphetamine and methamphet- striking ‘‘may’’ and inserting ‘‘shall’’; (b) GRANTS UNDER DRUG CONTROL AND SYS- amine laboratories; and (2) by inserting ‘‘amphetamine or’’ before TEM IMPROVEMENT GRANT PROGRAM.—Section (B) to State and local law enforcement per- ‘‘methamphetamine’’ each place it appears; 501(b)(3) of the Omnibus Crime Control and Safe sonnel for purposes of enabling such personnel (3) in paragraph (2)— Streets Act of 1968 is amended by inserting be- to provide the information and training covered (A) by inserting ‘‘, the State or local govern- fore the semicolon the following: ‘‘and to remove by subparagraph (A) to other State and local ment concerned, or both the United States and any hazardous substance or pollutant or con- law enforcement personnel. the State or local government concerned’’ after taminant associated with the illegal manufac- (3) CLANDESTINE LABORATORY RECERTIFI- ‘‘United States’’ the first place it appears; and ture of amphetamine or methamphetamine’’. CATION AND AWARENESS TRAINING.—A program (B) by inserting ‘‘or the State or local govern- (c) AMOUNTS SUPPLEMENT AND NOT SUP- of clandestine laboratory recertification and ment concerned, as the case may be,’’ after PLANT.— awareness training, which shall provide infor- ‘‘United States’’ the second place it appears; (1) ASSETS FORFEITURE FUND.—Any amounts mation and training to State and local law en- and made available from the Department of Justice forcement personnel for purposes of enabling

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00099 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S444 CONGRESSIONAL RECORD — SENATE February 7, 2000 such personnel to provide recertification and ization of appropriations for that fiscal year in CHAPTER 3—ABUSE PREVENTION AND awareness training relating to clandestine lab- subsection (b) may be available in that fiscal TREATMENT oratories to additional State and local law en- year for administrative costs associated with ac- SEC. 1731. EXPANSION OF METHAMPHETAMINE forcement personnel. tivities under subsection (a). RESEARCH. (c) AUTHORIZATION OF APPROPRIATIONS.— Section 464N of the Public Health Service Act SEC. 1725. COMBATING AMPHETAMINE AND There are authorized to be appropriated for METHAMPHETAMINE MANUFAC- (42 U.S.C. 285o–2) is amended by adding at the each of fiscal years 2000, 2001, and 2002 amounts TURING AND TRAFFICKING. end the following: as follows: ‘‘(c) METHAMPHETAMINE RESEARCH.— (1) $1,500,000 to carry out the program de- (a) ACTIVITIES.—In order to combat the illegal ‘‘(1) GRANTS OR COOPERATIVE AGREEMENTS.— scribed in subsection (b)(1). manufacturing and trafficking in amphetamine The Director of the Institute may make grants (2) $3,000,000 to carry out the program de- and methamphetamine, the Administrator of the or enter into cooperative agreements to expand scribed in subsection (b)(2). Drug Enforcement Administration may— the current and on-going interdisciplinary re- (3) $1,000,000 to carry out the program de- (1) assist State and local law enforcement in search and clinical trials with treatment centers scribed in subsection (b)(3). small and mid-sized communities in all phases of of the National Drug Abuse Treatment Clinical SEC. 1724. COMBATING METHAMPHETAMINE AND investigations related to such manufacturing Trials Network relating to methamphetamine AMPHETAMINE IN HIGH INTENSITY and trafficking, including assistance with for- abuse and addiction and other biomedical, be- DRUG TRAFFICKING AREAS. eign-language interpretation; havioral, and social issues related to meth- (a) IN GENERAL.— (2) staff additional regional enforcement and amphetamine abuse and addiction. (1) IN GENERAL.—The Director of National mobile enforcement teams related to such manu- ‘‘(2) USE OF FUNDS.—Amounts made available Drug Control Policy shall use amounts available facturing and trafficking; under a grant or cooperative agreement under under this section to combat the trafficking of paragraph (1) for methamphetamine abuse and methamphetamine and amphetamine in areas (3) establish additional resident offices and addiction may be used for research and clinical designated by the Director as high intensity posts of duty to assist State and local law en- trials relating to— drug trafficking areas. forcement in rural areas in combating such ‘‘(A) the effects of methamphetamine abuse on (2) ACTIVITIES.—In meeting the requirement in manufacturing and trafficking; the human body, including the brain; paragraph (1), the Director shall provide funds (4) provide the Special Operations Division of ‘‘(B) the addictive nature of methamphet- for— the Administration with additional agents and amine and how such effects differ with respect (A) employing additional Federal law enforce- staff to collect, evaluate, interpret, and dissemi- to different individuals; ment personnel, or facilitating the employment nate critical intelligence targeting the command ‘‘(C) the connection between methamphet- of additional State and local law enforcement and control operations of major amphetamine amine abuse and mental health; personnel, including agents, investigators, pros- and methamphetamine manufacturing and traf- ‘‘(D) the identification and evaluation of the ecutors, laboratory technicians, chemists, inves- ficking organizations; most effective methods of prevention of meth- amphetamine abuse and addiction; tigative assistants, and drug-prevention special- (5) enhance the investigative and related ists; and ‘‘(E) the identification and development of the functions of the Chemical Control Program of most effective methods of treatment of meth- (B) such other activities as the Director con- the Administration to implement more fully the siders appropriate. amphetamine addiction, including pharma- provisions of the Comprehensive Methamphet- cological treatments; (b) AUTHORIZATION OF APPROPRIATIONS.— amine Control Act of 1996 (Public Law 104–237); There is authorized to be appropriated to carry ‘‘(F) risk factors for methamphetamine abuse; ‘‘(G) effects of methamphetamine abuse and out this section— (6) design an effective means of requiring an addiction on pregnant women and their fetuses; (1) $15,000,000 for fiscal year 2000; and accurate accounting of the import and export of (2) such sums as may be necessary for each of list I chemicals, and coordinate investigations and ‘‘(H) cultural, social, behavioral, neurological fiscal years 2001 through 2004. relating to the diversion of such chemicals; and psychological reasons that individuals (c) APPORTIONMENT OF FUNDS.— (7) develop a computer infrastructure suffi- abuse methamphetamine, or refrain from abus- (1) FACTORS IN APPORTIONMENT.—The Direc- cient to receive, process, analyze, and redis- tor shall apportion amounts appropriated for a ing methamphetamine. tribute time-sensitive enforcement information ‘‘(3) RESEARCH RESULTS.—The Director shall fiscal year pursuant to the authorization of ap- from suspicious order reporting to field offices of promptly disseminate research results under this propriations in subsection (b) for activities the Administration and other law enforcement subsection to Federal, State and local entities under subsection (a) among and within areas and regulatory agencies, including the con- involved in combating methamphetamine abuse designated by the Director as high intensity tinuing development of the Suspicious Order Re- and addiction. drug trafficking areas based on the following porting and Tracking System (SORTS) and the ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— factors: Chemical Transaction Database (CTRANS) of ‘‘(A) AUTHORIZATION OF APPROPRIATIONS.— (A) The number of methamphetamine manu- the Administration; There is authorized to be appropriated to carry facturing facilities and amphetamine manufac- (8) establish an education, training, and com- out paragraph (1), such sums as may be nec- turing facilities discovered by Federal, State, or munication process in order to alert the industry essary for each fiscal year. local law enforcement officials in the previous to current trends and emerging patterns in the ‘‘(B) SUPPLEMENT NOT SUPPLANT.—Amounts fiscal year. illegal manufacturing of amphetamine and appropriated pursuant to the authorization of (B) The number of methamphetamine prosecu- methamphetamine; and appropriations in subparagraph (A) for a fiscal tions and amphetamine prosecutions in Federal, year shall supplement and not supplant any (9) carry out such other activities as the Ad- State, or local courts in the previous fiscal year. other amounts appropriated in such fiscal year ministrator considers appropriate. (C) The number of methamphetamine arrests for research on methamphetamine abuse and and amphetamine arrests by Federal, State, or (b) ADDITIONAL POSITIONS AND PERSONNEL.— addiction.’’. local law enforcement officials in the previous (1) IN GENERAL.—In carrying out activities SEC. 1732. METHAMPHETAMINE AND AMPHET- fiscal year. under subsection (a), the Administrator may es- AMINE TREATMENT INITIATIVE BY (D) The amounts of methamphetamine, am- tablish in the Administration not more than 50 CENTER FOR SUBSTANCE ABUSE phetamine, or listed chemicals (as that term is full-time positions, including not more than 31 TREATMENT. defined in section 102(33) of the Controlled Sub- special-agent positions, and may appoint per- Subpart 1 of part B of title V of the Public stances Act (21 U.S.C. 802(33)) seized by Federal, sonnel to such positions. Health Service Act (42 U.S.C. 290bb et seq.) is State, or local law enforcement officials in the amended by adding at the end the following previous fiscal year. (2) PARTICULAR POSITIONS.—In carrying out new section: activities under paragraphs (5) through (8) of (E) Intelligence and predictive data from the ‘‘METHAMPHETAMINE AND AMPHETAMINE subsection (a), the Administrator may establish Drug Enforcement Administration and the De- TREATMENT INITIATIVE in the Administration not more than 15 full-time partment of Health and Human Services show- ‘‘SEC. 514. (a) GRANTS.— ing patterns and trends in abuse, trafficking, positions, including not more than 10 diversion ‘‘(1) AUTHORITY TO MAKE GRANTS.—The Direc- and transportation in methamphetamine, am- investigator positions, and may appoint per- tor of the Center for Substance Abuse Treatment phetamine, and listed chemicals (as that term is sonnel to such positions. Any positions estab- may make grants to States and Indian tribes so defined). lished under this paragraph are in addition to recognized by the United States that have a (2) CERTIFICATION.—Before the Director ap- any positions established under paragraph (1). high rate, or have had a rapid increase, in portions any funds under this subsection to a (c) AUTHORIZATION OF APPROPRIATIONS.— methamphetamine or amphetamine abuse or ad- high intensity drug trafficking area, the Direc- There are authorized to be appropriated for the diction in order to permit such States and In- tor shall certify that the law enforcement enti- Drug Enforcement Administration for each fis- dian tribes to expand activities in connection ties responsible for clandestine methamphet- cal year after fiscal year 1999, $9,500,000 for pur- with the treatment of methamphetamine or am- amine and amphetamine laboratory seizures in poses of carrying out the activities authorized phetamine abuser or addiction in the specific that area are providing laboratory seizure data by subsection (a) and employing personnel in geographical areas of such States or Indian to the national clandestine laboratory database positions established under subsection (b), of tribes, as the case may be, where there is such at the El Paso Intelligence Center. which $3,000,000 shall be available for activities a rate or has been such an increase. (d) LIMITATION ON ADMINISTRATIVE COSTS.— under paragraphs (5) through (8) of subsection ‘‘(2) RECIPIENTS.—Any grants under para- Not more than 5 percent of the amount appro- (a) and employing personnel in positions estab- graph (1) shall be directed to the substance priated in a fiscal year pursuant to the author- lished under subsection (b)(2). abuse

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00100 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S445 directors of the States, and of the appropriate addiction to methamphetamine and other illicit SEC. 1742. REPORT ON DIVERSION OF ORDINARY tribal government authorities of the Indian drugs, and the options for treatment and pre- OVER-THE-COUNTER tribes, selected by the Director to receive such vention; PSEUDOEPHEDRINE AND PHENYL- grants. ‘‘(v) for planning, administration, and edu- PROPANOLAMINE PRODUCTS. ‘‘(3) NATURE OF ACTIVITIES.—Any activities cational activities related to the prevention of (a) STUDY.—The Attorney General shall con- under a grant under paragraph (1) shall be abuse of and addiction to methamphetamine duct a study of the use of ordinary over-the- based on reliable scientific evidence of their effi- and other illicit drugs; counter pseudoephedrine and phenylpropanola- cacy in the treatment of methamphetamine or ‘‘(vi) for the monitoring and evaluation of mine products in the clandestine production of amphetamine abuse or addiction. prevention activities relating to methamphet- illicit drugs. Sources of data for the study shall ‘‘(b) GEOGRAPHIC DISTRIBUTION.—The Direc- amine and other illicit drugs, and reporting and include the following: tor shall ensure that grants under subsection (a) disseminating resulting information to the pub- (1) Information from Federal, State, and local are distributed equitably among the various re- lic; and clandestine laboratory seizures and related in- gions of the country and among rural, urban, ‘‘(vii) for targeted pilot programs with evalua- vestigations identifying the source, type, or and suburban areas that are affected by meth- tion components to encourage innovation and brand of drug products being utilized and how amphetamine or amphetamine abuse or addic- experimentation with new methodologies. they were obtained for the illicit production of tion. ‘‘(B) The Administrator shall give priority in methamphetamine and amphetamine. ‘‘(c) ADDITIONAL ACTIVITIES.—The Director making grants under this subsection to rural (2) Information submitted voluntarily from the shall— and urban areas that are experiencing a high pharmaceutical and retail industries involved in ‘‘(1) evaluate the activities supported by rate or rapid increases in methamphetamine the manufacture, distribution, and sale of drug grants under subsection (a); abuse and addiction. products containing ephedrine, ‘‘(2) disseminate widely such significant infor- ‘‘(4)(A) Not less than $500,000 of the amount pseudoephedrine, and phenylpropanolamine, in- mation derived from the evaluation as the Direc- available in each fiscal year to carry out this cluding information on changes in the pattern, tor considers appropriate to assist States, Indian subsection shall be made available to the Ad- volume, or both, of sales of ordinary over-the- tribes, and private providers of treatment serv- ministrator, acting in consultation with other counter pseudoephedrine and phenylpropanola- ices for methamphetamine or amphetamine Federal agencies, to support and conduct peri- mine products. abuser or addiction in the treatment of meth- odic analyses and evaluations of effective pre- (b) REPORT.— amphetamine or amphetamine abuse or addic- vention programs for abuse of and addiction to (1) REQUIREMENT.—Not later than April 1, tion; and methamphetamine and other illicit drugs and 2001, the Attorney General shall submit to Con- ‘‘(3) provide States, Indian tribes, and such the development of appropriate strategies for gress a report on the study conducted under providers with technical assistance in connec- disseminating information about and imple- subsection (a). tion with the provision of such treatment. menting these programs. (2) ELEMENTS.—The report shall include— ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(B) The Administrator shall submit to the (A) the findings of the Attorney General as a ‘‘(1) IN GENERAL.—There are authorized to be committees of Congress referred to in subpara- result of the study; and appropriated to carry out this section $10,000,000 graph (C) an annual report with the results of (B) such recommendations on the need to es- for fiscal year 2000 and such sums as may be the analyses and evaluation under subpara- tablish additional measures to prevent diversion necessary for each of fiscal years 2001 and 2002. graph (A). of ordinary over-the-counter pseudoephedrine ‘‘(2) USE OF CERTAIN FUNDS.—Of the funds ap- ‘‘(C) The committees of Congress referred to in and phenylpropanolamine (such as a threshold propriated to carry out this section in any fiscal this subparagraph are the following: on ordinary over-the-counter pseudoephedrine year, the lesser of 5 percent of such funds or ‘‘(i) The Committees on Health, Education, and phenylpropanolamine products) as the At- $1,000,000 shall be available to the Director for Labor, and Pensions, the Judiciary, and Appro- torney General considers appropriate. purposes of carrying out subsection (c).’’. priations of the Senate. (3) MATTERS CONSIDERED.—In preparing the SEC. 1733. EXPANSION OF METHAMPHETAMINE ‘‘(ii) The Committees on Commerce, the Judici- report, the Attorney General shall consider the ABUSE PREVENTION EFFORTS. ary, and Appropriations of the House of Rep- comments and recommendations of State and (a) EXPANSION OF EFFORTS.—Section 515 of resentatives.’’. local law enforcement and regulatory officials the Public Health Service Act (42 U.S.C. 290bb– (b) AUTHORIZATION OF APPROPRIATIONS FOR and of representatives of the industry described 21) is amended by adding at the end the fol- EXPANSION OF ABUSE PREVENTION EFFORTS AND in subsection (a)(2). lowing: PRACTITIONER REGISTRATION REQUIREMENTS.— Subtitle B—Controlled Substances Generally ‘‘(e)(1) The Administrator may make grants to There is authorized to be appropriated to carry CHAPTER 1—CRIMINAL MATTERS and enter into contracts and cooperative agree- out section 515(e) of the Public Health Service ments with public and nonprofit private entities Act (as added by subsection (a)) and section SEC. 1751. ENHANCED PUNISHMENT FOR TRAF- to enable such entities— 303(g)(2) of the Controlled Substances Act (as FICKING IN LIST I CHEMICALS. ‘‘(A) to carry out school-based programs con- added by section 18(a) of this Act), $15,000,000 (a) AMENDMENTS TO FEDERAL SENTENCING cerning the dangers of abuse of and addiction to for fiscal year 2000, and such sums as may be GUIDELINES.—Pursuant to its authority under methamphetamine and other illicit drugs, using necessary for each succeeding fiscal year. section 994(p) of title 28, United States, the methods that are effective and science-based, in- SEC. 1734. STUDY OF METHAMPHETAMINE TREAT- United States Sentencing Commission shall cluding initiatives that give students the respon- MENT. amend the Federal sentencing guidelines in ac- sibility to create their own anti-drug abuse edu- (a) STUDY.— cordance with this section with respect to any cation programs for their schools; and (1) REQUIREMENT.—The Secretary of Health violation of paragraph (1) or (2) of section ‘‘(B) to carry out community-based abuse and and Human Services shall, in consultation with 401(d) of the Controlled Substances Act (21 addiction prevention programs relating to meth- the Institute of Medicine of the National Acad- U.S.C. 841(d)) involving a list I chemical and amphetamine and other illicit drugs that are ef- emy of Sciences, conduct a study on the devel- any violation of paragraph (1) or (3) of section fective and science-based. opment of medications for the treatment of ad- 1010(d) of the Controlled Substance Import and ‘‘(2) Amounts made available under a grant, diction to amphetamine and methamphetamine. Export Act (21 U.S.C. 960(d)) involving a list I contract or cooperative agreement under para- (2) REPORT.—Not later than nine months after chemical. graph (1) shall be used for planning, estab- the date of the enactment of this Act, the Sec- (b) EPHEDRINE, PHENYLPROPANOLAMINE, AND lishing, or administering prevention programs retary shall submit to the Committees on the Ju- PSEUDOEPHEDRINE.— relating to methamphetamine and other illicit diciary of the Senate and House of Representa- (1) IN GENERAL.—In carrying this section, the drugs in accordance with paragraph (3). tives a report on the results of the study con- United States Sentencing Commission shall, ‘‘(3)(A) Amounts provided under this sub- ducted under paragraph (1). with respect to each offense described in sub- section may be used— (b) AUTHORIZATION OF APPROPRIATIONS.— section (a) involving ephedrine, phenyl- ‘‘(i) to carry out school-based programs that There are hereby authorized to be appropriated propanolamine, or pseudoephedrine (including are focused on those districts with high or in- for the Department of Health and Human Serv- their salts, optical isomers, and salts of optical creasing rates of methamphetamine abuse and ices for fiscal year 2000 such sums as may be isomers), review and amend its guidelines to addiction and targeted at populations which are necessary to meet the requirements of subsection provide for increased penalties such that those most at risk to start abuse of methamphetamine (a). penalties corresponded to the quantity of con- and other illicit drugs; CHAPTER 4—REPORTS trolled substance that could reasonably have been manufactured using the quantity of ephed- ‘‘(ii) to carry out community-based prevention SEC. 1741. REPORTS ON CONSUMPTION OF METH- programs that are focused on those populations AMPHETAMINE AND OTHER ILLICIT rine, phenylpropanolamine, or pseudoephedrine within the community that are most at-risk for DRUGS IN RURAL AREAS, METRO- possessed or distributed. abuse of and addiction to methamphetamine POLITAN AREAS, AND CONSOLI- (2) CONVERSION RATIOS.—For the purposes of and other illicit drugs; DATED METROPOLITAN AREAS. the amendments made by this subsection, the ‘‘(iii) to assist local government entities to The Secretary of Health and Human Services quantity of controlled substance that could rea- conduct appropriate prevention activities relat- shall include in each National Household Sur- sonably have been manufactured shall be deter- ing to methamphetamine and other illicit drugs; vey on Drug Abuse appropriate prevalence data mined by using a table of manufacturing con- ‘‘(iv) to train and educate State and local law and information on the consumption of meth- version ratios for ephedrine, phenylpropanola- enforcement officials, prevention and education amphetamine and other illicit drugs in rural mine, and pseudoephedrine, which table shall be officials, members of community anti-drug coali- areas, metropolitan areas, and consolidated met- established by the Sentencing Commission based tions and parents on the signs of abuse of and ropolitan areas. on scientific, law enforcement, and other data

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00101 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S446 CONGRESSIONAL RECORD — SENATE February 7, 2000 the Sentencing Commission considers appro- ‘‘(vi) Any quantity, method, or type of dis- ‘‘(b) Any person who violates subsection (a) priate. tribution or any quantity, method, or type of shall be imprisoned or fined, or both, in accord- (c) OTHER LIST I CHEMICALS.—In carrying distribution of a specific listed chemical (includ- ance with section 403(d) as if such violation this section, the United States Sentencing Com- ing specific formulations or drug products) or of were a violation of a provision of section 403.’’. mission shall, with respect to each offense de- a group of listed chemicals (including specific (b) CLERICAL AMENDMENT.—The table of con- scribed in subsection (a) involving any list I formulations or drug products) which the Attor- tents for that Act is amended by inserting after chemical other than ephedrine, phenyl- ney General has excluded by regulation from the item relating to section 421 the following propanolamine, or pseudoephedrine, review and such reporting requirement on the basis that new items: amend its guidelines to provide for increased such reporting is not necessary for the enforce- penalties such that those penalties reflect the ment of this title or title III. ‘‘Sec. 422. Drug paraphernalia. dangerous nature of such offenses, the need for ‘‘(E) The Attorney General may revoke any or ‘‘Sec. 423. Anhydrous ammonia.’’. aggressive law enforcement action to fight such all of the exemptions listed in subparagraph (D) (c) ASSISTANCE FOR CERTAIN RESEARCH.— offenses, and the extreme dangers associated for an individual regulated person if he finds with unlawful activity involving methamphet- that drug products distributed by the regulated (1) AGREEMENT.—The Administrator of the amine and amphetamine, including— person are being used in violation of this title or Drug Enforcement Administration shall seek to (1) the rapidly growing incidence of controlled title III. The regulated person shall be notified enter into an agreement with Iowa State Uni- substance manufacturing; of the revocation, which will be effective upon versity in order to permit the University to con- (2) the extreme danger inherent in manufac- receipt by the person of such notice, as provided tinue and expand its current research into the turing controlled substances; in section 1018(c)(1), and shall have the right to development of inert agents that, when added to (3) the threat to public safety posed by manu- an expedited hearing as provided in section anhydrous ammonia, eliminate the usefulness of facturing controlled substances; and 1018(c)(2).’’. anhydrous ammonia as an ingredient in the (4) the recent increase in the importation, pos- SEC. 1753. INCREASED PENALTIES FOR DISTRIB- production of methamphetamine. session, and distribution of list I chemicals for UTING DRUGS TO MINORS. (2) REIMBURSABLE PROVISION OF FUNDS.—The the purpose of manufacturing controlled sub- Section 418 of the Controlled Substances Act agreement under paragraph (1) may provide for stances. (21 U.S.C. 859) is amended— the provision to Iowa State University, on a re- (d) EMERGENCY AUTHORITY TO SENTENCING (1) in subsection (a), by striking ‘‘one year’’ imbursable basis, of $500,000 for purposes the ac- COMMISSION.—The United States Sentencing and inserting ‘‘3 years’’; and tivities specified in that paragraph. Commission shall promulgate amendments pur- (2) in subsection (b), by striking ‘‘one year’’ UTHORIZATION OF APPROPRIATIONS.— suant to this section as soon as practicable after (3) A and inserting ‘‘5 years’’. There is hereby authorized to be appropriated the date of the enactment of this Act in accord- SEC. 1754. INCREASED PENALTY FOR DRUG TRAF- for the Drug Enforcement Administration for ance with the procedure set forth in section FICKING IN OR NEAR A SCHOOL OR fiscal year 2000, $500,000 for purposes of car- 21(a) of the Sentencing Act of 1987 (Public Law OTHER PROTECTED LOCATION. rying out the agreement under this subsection. 100–182), as though the authority under that Section 419 of the Controlled Substances Act Act had not expired. (21 U.S.C. 860) is amended— SEC. 1757. CRIMINAL PROHIBITION ON DISTRIBU- SEC. 1752. MAIL ORDER REQUIREMENTS. (1) in subsection (a), by striking ‘‘one year’’ TION OF CERTAIN INFORMATION RE- Section 310(b)(3) of the Controlled Substances and inserting ‘‘3 years’’; and LATING TO THE MANUFACTURE OF CONTROLLED SUBSTANCES. Act (21 U.S.C. 830(b)(3)) is amended— (2) in subsection (b), by striking ‘‘three years’’ (1) by redesignating subparagraphs (A) and each place that term appears and inserting ‘‘5 (a) IN GENERAL.—Part I of title 18, United (B) as subparagraphs (B) and (C), respectively; years’’. States Code, is amended by inserting after chap- (2) by inserting before subparagraph (B), as so SEC. 1755. ADVERTISEMENTS FOR DRUG PARA- ter 21 the following new chapter: redesignated, the following new subparagraph PHERNALIA AND SCHEDULE I CON- ‘‘CHAPTER 22—CONTROLLED SUBSTANCES (A): TROLLED SUBSTANCES. ‘‘(A) As used in this paragraph: (a) DRUG PARAPHERNALIA.—Subsection (a)(1) ‘‘Sec. ‘‘(i) The term ‘drug product’ means an active of section 422 of the Controlled Substances Act ‘‘421. Distribution of information relating to ingredient in dosage form that has been ap- (21 U.S.C. 863) is amended by inserting ‘‘, di- manufacture of controlled sub- proved or otherwise may be lawfully marketed rectly or indirectly advertise for sale,’’ after stances. under the Food, Drug, and Cosmetic Act for dis- ‘‘sell’’. tribution in the United States. (b) DIRECTLY OR INDIRECTLY ADVERTISE FOR ‘‘§ 421. Distribution of information relating to ‘‘(ii) The term ‘valid prescription’ means a SALE DEFINED.—Such section 422 is further manufacture of controlled substances prescription which is issued for a legitimate amended by adding at the end the following ‘‘(a) PROHIBITION ON DISTRIBUTION OF INFOR- medical purpose by an individual practitioner li- new subsection: MATION RELATING TO MANUFACTURE OF CON- censed by law to administer and prescribe the ‘‘(g) In this section, the term ‘directly or indi- TROLLED SUBSTANCES.— drugs concerned and acting in the usual course rectly advertise for sale’ means the use of any of the practitioner’s professional practice.’’; communication facility (as that term is defined ‘‘(1) CONTROLLED SUBSTANCE DEFINED.—In (3) in subparagraph (B), as so redesignated, in section 403(b)) to post, publicize, transmit, this subsection, the term ‘controlled substance’ by inserting ‘‘or who engages in an export publish, link to, broadcast, or otherwise adver- has the meaning given that term in section transaction’’ after ‘‘nonregulated person’’; and tise any matter (including a telephone number 102(6) of the Controlled Substances Act (21 (4) adding at the end the following: or electronic or mail address) with the intent to U.S.C. 802(6)). ‘‘(D) Except as provided in subparagraph (E), facilitate or promote a transaction in.’’. ‘‘(2) PROHIBITION.—It shall be unlawful for the following distributions to a nonregulated (c) SCHEDULE I CONTROLLED SUBSTANCES.— any person— person, and the following export transactions, Section 403(c) of such Act (21 U.S.C. 843(c)) is ‘‘(A) to teach or demonstrate the manufacture shall not be subject to the reporting requirement amended— of a controlled substance, or to distribute by any in subparagraph (B): (1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and means information pertaining to, in whole or in ‘‘(i) Distributions of sample packages of drug (2) in paragraph (1), as so designated— part, the manufacture of a controlled substance, products when such packages contain not more (A) in the first sentence, by inserting before with the intent that the teaching, demonstra- than 2 solid dosage units or the equivalent of 2 the period the following: ‘‘, or to directly or in- tion, or information be used for, or in further- dosage units in liquid form, not to exceed 10 mil- directly advertise for sale (as that term is de- ance of, an activity that constitutes a Federal liliters of liquid per package, and not more than fined in section 422(g)) any Schedule I con- crime; or one package is distributed to an individual or trolled substance’’; and residential address in any 30-day period. (B) in the second sentence, by striking ‘‘term ‘‘(B) to teach or demonstrate to any person ‘‘(ii) Distributions of drug products by retail ‘advertisement’ ’’ and inserting ‘‘term ‘written the manufacture of a controlled substance, or to distributors that may not include face-to-face advertisement’ ’’. distribute to any person, by any means, infor- transactions to the extent that such distribu- SEC. 1756. THEFT AND TRANSPORTATION OF AN- mation pertaining to, in whole or in part, the tions are consistent with the activities author- HYDROUS AMMONIA FOR PURPOSES manufacture of a controlled substance, knowing ized for a retail distributor as specified in sec- OF ILLICIT PRODUCTION OF CON- that such person intends to use the teaching, tion 102(46). TROLLED SUBSTANCES. demonstration, or information for, or in further- ‘‘(iii) Distributions of drug products to a resi- (a) IN GENERAL.—Part D of the Controlled ance of, an activity that constitutes a Federal dent of a long term care facility (as that term is Substances Act (21 U.S.C. 841 et seq.) is amend- crime. defined in regulations prescribed by the Attor- ed by adding at the end the following: ‘‘(b) PENALTY.—Any person who violates sub- ney General) or distributions of drug products to ‘‘ANHYDROUS AMMONIA section (a) shall be fined under this title, impris- a long term care facility for dispensing to or for ‘‘SEC. 423. (a) It is unlawful for any person— oned not more than 10 years, or both.’’. use by a resident of that facility. ‘‘(1) to steal anhydrous ammonia, or (b) CLERICAL AMENDMENT.—The table of ‘‘(2) to transport stolen anhydrous ammonia ‘‘(iv) Distributions of drug products pursuant chapters at the beginning of part I of title 18, across State lines, to a valid prescription. United States Code, is amended by inserting ‘‘(v) Exports which have been reported to the knowing, intending, or having reasonable cause after the item relating to chapter 21 the fol- Attorney General pursuant to section 1004 or to believe that such anhydrous ammonia will be lowing new item: 1018 or which are subject to a waiver granted used to manufacture a controlled substance in under section 1018(e)(2). violation of this part. ‘‘22. Controlled Substances ...... 421’’.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00102 Fmt 4624 Sfmt 6343 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S447 CHAPTER 2—OTHER MATTERS ‘‘(aa) Approval of additional credentialing Secretary determines (after an opportunity for a SEC. 1761. WAIVER AUTHORITY FOR PHYSICIANS bodies and the responsibilities of credentialing hearing) that the training provided by such WHO DISPENSE OR PRESCRIBE CER- bodies. board or entity was inadequate for the treat- TAIN NARCOTIC DRUGS FOR MAIN- ‘‘(bb) Additional exemptions from the require- ment and management of opiate-dependent pa- TENANCE TREATMENT OR DETOXI- ments of this paragraph and any regulations tients. FICATION TREATMENT. under this paragraph. ‘‘(C) For purposes of subparagraph (A), the (a) REQUIREMENTS.—Section 303(g) of the ‘‘(II) Nothing in the regulations or practice conditions specified in this subparagraph with Controlled Substances Act (21 U.S.C. 823(g)) is guidelines under this clause may authorize any respect to narcotic drugs in schedule III, IV, or amended— Federal official or employee to exercise super- V, or combinations of such drugs, are as follows: (1) in paragraph (2), by striking ‘‘(A) secu- vision or control over the practice of medicine or ‘‘(i) The drugs or combinations of drugs have, rity’’ and inserting ‘‘(i) security’’, and by strik- the manner in which medical services are pro- under the Federal Food, Drug and Cosmetic Act ing ‘‘(B) the maintenance’’ and inserting ‘‘(ii) vided. or section 351 of the Public Health Service Act, the maintenance’’; ‘‘(III)(aa) The Secretary shall issue a Treat- been approved for use in maintenance or detoxi- (2) by redesignating paragraphs (1) through ment Improvement Protocol containing best fication treatment. (3) as subparagraphs (A) through (C), respec- practice guidelines for the treatment and main- ‘‘(ii) The drugs or combinations of drugs have tively; tenance of opiate-dependent patients. The Sec- not been the subject of an adverse determina- (3) by inserting ‘‘(1)’’ after ‘‘(g)’’; retary shall develop the protocol in consultation tion. For purposes of this clause, an adverse de- (4) by striking ‘‘Practitioners who dispense’’ with the Director of the National Institute on termination is a determination published in the and inserting ‘‘Except as provided in paragraph Drug Abuse, the Director of the Center for Sub- Federal Register and made by the Secretary, (2), practitioners who dispense and prescribe’’; stance Abuse Treatment, the Administrator of after consultation with the Attorney General, and the Drug Enforcement Administration, the Com- that experience since the approval of the drug (5) by adding at the end the following: missioner of Food and Drugs, the Administrator or combinations of drugs has shown that the use ‘‘(2)(A) Subject to subparagraphs (D), the re- of the Substance Abuse and Mental Health of the drugs or combinations of drugs for main- quirements of paragraph (1) are waived in the Services Administration, and other substance tenance or detoxification treatment requires ad- case of the dispensing or prescribing, by a phy- abuse disorder professionals. The protocol shall ditional standards respecting the qualifications sician, of narcotic drugs in schedule III, IV, or be guided by science. of physicians to provide such treatment, or re- V, or combinations of such drugs, if the physi- ‘‘(bb) The protocol shall be issued not later quires standards respecting the quantities of the cian meets the conditions specified in subpara- than 120 days after the date of the enactment of drugs that may be provided for unsupervised graph (B) and the narcotic drugs or combina- the Methamphetamine Anti-Proliferation Act of use. tions of such drugs meet the conditions specified 2000. ‘‘(D)(i) A waiver under subparagraph (A) ‘‘(IV) For purposes of the regulations or prac- in subparagraph (C). with respect to a physician is not in effect un- tice guidelines under subclause (I), a physician ‘‘(B)(i) For purposes of subparagraph (A), the less (in addition to conditions under subpara- shall have training or experience under clause conditions specified in this subparagraph with graphs (B) and (C)) the following conditions are (i)(I)(bb) if the physician meets one or more of respect to a physician are that, before dis- met: the following conditions: pensing or prescribing narcotic drugs in sched- ‘‘(I) The notification under subparagraph (B) ‘‘(aa) The physician is certified in addiction ule III, IV, or V, or combinations of such drugs, is in writing and states the name of the physi- treatment by the American Society of Addiction to patients for maintenance or detoxification cian. Medicine, the American Board of Medical Spe- ‘‘(II) The notification identifies the registra- treatment, the physician submit to the Secretary cialties, the American Osteopathic Academy of tion issued for the physician pursuant to sub- and the Attorney General a notification of the Addiction Medicine, or any other certified body section (f). intent of the physician to begin dispensing or accredited by the Secretary. ‘‘(III) If the physician is a member of a group prescribing the drugs or combinations for such ‘‘(bb) The physician has been a clinical inves- practice, the notification states the names of the purpose, and that the notification to the Sec- tigator in a clinical trial conducted for purposes other physicians in the practice and identifies retary also contain the following certifications of securing approval under section 505 of the the registrations issued for the other physicians by the physician: Federal Food, Drug, and Cosmetic Act (21 pursuant to subsection (f). ‘‘(I) The physician— U.S.C. 355) or section 351 of the Public Health ‘‘(IV) A period of 45 days has elapsed after ‘‘(aa) is a physician licensed under State law; Service Act (42 U.S.C. 262) of a narcotic drug in the date on which the notification was sub- and schedule III, IV, or V for the treatment of addic- mitted, and during such period the physician ‘‘(bb) has training or experience and the abil- tion, if such approval was granted. does not receive from the Secretary a written no- ity to treat and manage opiate-dependent pa- ‘‘(cc) The physician has completed training tice that one or more of the conditions specified tients. (through classroom situations, seminars, profes- in subparagraph (B), subparagraph (C), or this ‘‘(II) With respect to patients to whom the sional society meetings, electronic communica- subparagraph, have not been met. physician will provide such drugs or combina- tions, or otherwise) provided by the American ‘‘(ii) The Secretary shall provide to the Attor- tions of drugs, the physician has the capacity to Society of Addiction Medicine, the American ney General such information contained in noti- refer the patients for appropriate counseling Academy of Addiction Psychiatry, the American fications under subparagraph (B) as the Attor- and other appropriate ancillary services. Osteopathic Academy of Addiction Medicine, ney General may request. ‘‘(III) In any case in which the physician is the American Medical Association, the Amer- ‘‘(E) If in violation of subparagraph (A) a not in a group practice, the total number of ican Osteopathic Association, the American physician dispenses or prescribes narcotic drugs such patients of the physician at any one time Psychiatric Association, or any other organiza- in schedule III, IV, or V, or combinations of will not exceed the applicable number. For pur- tion that the Secretary determines appropriate such drugs, for maintenance treatment or de- poses of this subclause, the applicable number is for purposes of this item. The curricula may in- toxification treatment, the Attorney General 20, except that the Secretary may by regulation clude training in patient need for counseling re- may, for purposes of section 304(a)(4), consider change such total number. garding HIV, Hepatitis C, and other infectious the physician to have committed an act that ‘‘(IV) In any case in which the physician is in diseases, substance abuse counseling, random renders the registration of the physician pursu- a group practice, the total number of such pa- drug testing, medical evaluation, annual assess- ant to subsection (f) to be inconsistent with the tients of the group practice at any one time will ment, prenatal care, diagnosis of addiction, re- public interest. not exceed the applicable number. For purposes habilitation services, confidentiality, and other ‘‘(F)(i) Upon determining that a physician of this subclause, the applicable number is 20, appropriate topics. meets the conditions specified in subparagraph except that the Secretary may by regulation ‘‘(dd) The physician has training or experi- (B), the Secretary shall notify the physician change such total number, and the Secretary for ence in the treatment and management of opi- and the Attorney General. such purposes may by regulation establish dif- ate-dependent, which training or experience ‘‘(ii) Upon receiving notice with respect to a ferent categories on the basis of the number of shall meet such criteria as the Secretary may physician under clause (i), the Attorney General physicians in a group practice and establish for prescribe. Any such criteria shall be effective for shall assign the physician an identification the various categories different numerical limi- a period of three years after the effective date of number under this paragraph for inclusion with tations on the number of such patients that the such criteria, but the Secretary may extend the the physician’s current registration to prescribe group practice may have. effective period of such criteria by additional narcotics. An identification number assigned a ‘‘(ii)(I) The Secretary may, in consultation periods of three years for each extension if the physician under this clause shall be appropriate with the Administrator of the Drug Enforcement Secretary determines that such extension is ap- to preserve the confidentiality of a patient pre- Administration, the Administrator of the Sub- propriate for purposes of this item. Any such ex- scribed narcotic drugs covered by this para- stance Abuse and Mental Health Services Ad- tension shall go into effect only if the Secretary graph by the physician. ministration, the Director of the Center for Sub- publishes a notice of such extension in the Fed- ‘‘(iii) If the Secretary fails to make a deter- stance Abuse Treatment, the Director of the Na- eral Register during the 30-day period ending on mination described in clause (i) by the end of tional Institute on Drug Abuse, and the Com- the date of the end of the three-year effective the 45-day period beginning on the date of the missioner of Food and Drugs, issue regulations period of such criteria to which such extension receipt by the Secretary of a notification from a through notice and comment rulemaking or will apply. physician under subparagraph (B), the Attor- practice guidelines to implement this paragraph. ‘‘(ee) The physician is certified in addiction ney General shall assign the physician an iden- The regulations or practice guidelines shall ad- treatment by a State medical licensing board, or tification number described in clause (ii) at the dress the following: an entity accredited by such board, unless the end of such period.

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00103 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S448 CONGRESSIONAL RECORD — SENATE February 7, 2000 ‘‘(G) In this paragraph: or V, or combinations of such drugs, to patients Substances Import and Export Act (21 U.S.C. 951 ‘‘(i) The term ‘group practice’ has the mean- for maintenance or detoxification treatment in et seq.), but does not mean a controlled sub- ing given such term in section 1877(h)(4) of the accordance with this paragraph, or the other stance used pursuant to a valid prescription or Social Security Act. amendments made by section 22 of that Act, un- as authorized by law; and ‘‘(ii) The term ‘physician’ has the meaning less, before the expiration of that 3-year period, ‘‘(C) the term ‘illegal drug paraphernalia’ given such term in section 1861(r) of the Social the State enacts a law prohibiting a practitioner means drug paraphernalia, as defined in section Security Act. from dispensing or prescribing such drugs or 422(d) of the Controlled Substances Act (21 ‘‘(H)(i) This paragraph takes effect on the combination of drugs.’’. U.S.C. 863(d)), except that the first sentence of date of the enactment of the Methamphetamine (b) CONFORMING AMENDMENTS.—Section 304 of that section shall be applied by inserting ‘or Anti-Proliferation Act of 2000, and remains in the Controlled Substances Act (21 U.S.C. 824) is under the Controlled Substances Import and Ex- effect thereafter except as provided in clause amended— port Act (21 U.S.C. 951 et seq.)’, before the pe- (iii) (relating to a decision by the Secretary or (1) in subsection (a), in the matter following riod. the Attorney General that this paragraph paragraph (5), by striking ‘‘section 303(g)’’ each ‘‘(D) the term ‘felonious quantities of an ille- should not remain in effect). place the term appears and inserting ‘‘section gal drug’ means any quantity of an illegal ‘‘(ii) For the purposes relating to clause (iii), 303(g)(1)’’; and drug— the Secretary and the Attorney General shall, (2) in subsection (d), by striking ‘‘section ‘‘(i) possession of which quantity would, during the 3-year period beginning on the date 303(g)’’ and inserting ‘‘section 303(g)(1)’’. under Federal, State, or local law, either con- of the enactment of the Methamphetamine Anti- (c) AUTHORIZATION OF APPROPRIATIONS.— stitute a felony or indicate an intent to dis- Proliferation Act of 2000, make determinations There is hereby authorized to be appropriated tribute; or in accordance with the following: for purposes of activities under section 303(g)(2) ‘‘(ii) that is possessed with an intent to dis- ‘‘(I)(aa) The Secretary shall— of the Controlled Substances Act, as added by tribute.’’. ‘‘(aaa) make a determination of whether subsection (a), amounts as follows: (4) REPORT TO STATE.—Section 14601(d)(2)(C) treatments provided under waivers under sub- (1) For fiscal year 2000, $3,000,000. is amended by inserting ‘‘illegal drugs or’’ be- paragraph (A) have been effective forms of (2) For each fiscal year after fiscal year 2000, fore ‘‘weapons’’. maintenance treatment and detoxification treat- such sums as may be necessary for such fiscal (5) REPEALER.—Section 14601 is amended by ment in clinical settings; year. striking subsection (f). ‘‘(bbb) make a determination regarding Subtitle C—Cocaine Powder (6) POLICY REGARDING CRIMINAL JUSTICE SYS- whether such waivers have significantly in- TEM REFERRAL.—Section 14602(a) is amended by SEC. 1771. SHORT TITLE. creased (relative to the beginning of such pe- replacing ‘‘served by’’ with ‘‘under the jurisdic- This subtitle may be cited as the ‘‘Powder Co- riod) the availability of maintenance treatment tion of’’, and by inserting after ‘‘who’’ the fol- caine Sentencing Act of 2000’’. and detoxification treatment; and lowing: ‘‘is in possession of an illegal drug, or il- ‘‘(ccc) make a determination regarding wheth- SEC. 1772. SENTENCING FOR VIOLATIONS IN- legal drug paraphernalia, on school property er such waivers have adverse consequences for VOLVING COCAINE POWDER. under the jurisdiction of, or in a vehicle oper- the public health. (a) AMENDMENT OF CONTROLLED SUBSTANCES ated by an employee or agent of, such agency, ‘‘(bb) In making determinations under this ACT.— or who’’. subclause, the Secretary— ARGE QUANTITIES (1) L .—Section (7) DATA AND POLICY DISSEMINATION UNDER ‘‘(aaa) may collect data from the practitioners 401(b)(1)(A)(ii) of the Controlled Substances Act IDEA.—Section 14603 is amended by inserting for whom waivers under subparagraph (A) are (21 U.S.C. 841(b)(1)(A)(ii)) is amended by strik- ‘‘current’’ before ‘‘policy’’, by striking ‘‘in effect in effect; ing ‘‘5 kilograms’’ and inserting ‘‘500 grams’’. on October 20, 1994’’, by striking all the matter ‘‘(bbb) shall issue appropriate guidelines or (2) SMALL QUANTITIES.—Section after ‘‘schools’’ and inserting a period there- regulations (in accordance with procedures for 401(b)(1)(B)(ii) of the Controlled Substances Act after, and by inserting before ‘‘engaging’’ the substantive rules under section 553 of title 5, (21 U.S.C. 841(b)(1)(B)(ii)) is amended by strik- following: ‘‘possessing illegal drugs, or illegal United States Code) specifying the scope of the ing ‘‘500 grams’’ and inserting ‘‘50 grams’’. drug paraphernalia, on school property, or in data that will be required to be provided under (b) AMENDMENT OF CONTROLLED SUBSTANCES vehicles operated by employees or agents of, this subclause and the means through which the IMPORT AND EXPORT ACT.— schools or local educational agencies, or’’. data will be collected; and ARGE QUANTITIES (1) L .—Section 1010(b)(1)(B) (b) COMPLIANCE DATE; REPORTING.—(1) States ‘‘(ccc) shall, with respect to collecting such of the Controlled Substances Import and Export shall have 2 years from the date of the enact- data, comply with applicable provisions of chap- Act (21 U.S.C. 960(b)(1)(B)) is amended by strik- ment of this Act to comply with the require- ter 6 of title 5, United States Code (relating to a ing ‘‘5 kilograms’’ and inserting ‘‘500 grams’’. ments established in the amendments made by regulatory flexibility analysis), and of chapter 8 (2) SMALL QUANTITIES.—Section 1010(b)(2)(B) subsection (a). of such title (relating to congressional review of of the Controlled Substances Import and Export (2) Not later than 3 years after the date of the agency rulemaking). Act (21 U.S.C. 960(b)(2)(B)) is amended by strik- ‘‘(II) The Attorney General shall— enactment of this Act, the Secretary of Edu- ing ‘‘500 grams’’ and inserting ‘‘50 grams’’. cation shall submit to Congress a report on any ‘‘(aa) make a determination of the extent to (c) AMENDMENT OF SENTENCING GUIDELINES.— which there have been violations of the numer- State that is not in compliance with the require- Pursuant to section 994 of title 28, United States ments of this section. ical limitations established under subparagraph Code, the United States Sentencing Commission (B) for the number of individuals to whom a (3) Not later than 2 years after the date of the shall amend the Federal sentencing guidelines enactment of this Act, the Secretary of Edu- practitioner may provide treatment; and to reflect the amendments made by this section. ‘‘(bb) make a determination regarding wheth- cation shall submit to Congress a report ana- er waivers under subparagraph (A) have in- Subtitle D—Education Matters lyzing the strengths and weaknesses of ap- creased (relative to the beginning of such pe- SEC. 1781. SAFE SCHOOLS. proaches regarding the disciplining of children riod) the extent to which narcotic drugs in (a) AMENDMENTS.—Part F of title XIV of the with disabilities. schedule III, IV, or V, or combinations of such Elementary and Secondary Education Act of SEC. 1782. STUDENT SAFETY AND FAMILY drugs, are being dispensed or prescribed, or pos- 1965 (20 U.S.C. 8921 et seq.) is amended as fol- SCHOOL CHOICE. sessed, in violation of this Act. lows: Subpart 1 of part A of title I of the Elemen- ‘‘(iii) If, before the expiration of the period (1) SHORT TITLE.—Section 14601(a) is amended tary and Secondary Education Act of 1965 (20 specified in clause (ii), the Secretary or the At- by replacing ‘‘Gun-Free’’ with ‘‘Safe’’, and U.S.C. 6311 et seq.) is amended by inserting after torney General publishes in the Federal Register ‘‘1994’’ with ‘‘1999’’. section 1115A of such Act (20 U.S.C. 6316) the a decision, made on the basis of determinations (2) REQUIREMENTS.—Section 14601(b)(1) is following: under such clause, that this paragraph should amended by inserting after ‘‘determined’’ the ‘‘SEC. 1115B. STUDENT SAFETY AND FAMILY not remain in effect, this paragraph ceases to be following: ‘‘to be in possession of felonious SCHOOL CHOICE. in effect 60 days after the date on which the de- quantities of an illegal drug, on school property ‘‘(a) IN GENERAL.—Notwithstanding any other cision is so published. The Secretary shall, in under the jurisdiction of, or in a vehicle oper- provision of law, if a student is eligible to be making any such decision, consult with the At- ated by an employee or agent of, a local edu- served under section 1115(b), or attends a school torney General, and shall, in publishing the de- cational agency in that State, or’’. eligible for a schoolwide program under section cision in the Federal Register, include any com- (3) DEFINITIONS.—Section 14601(b)(4) is 1114, and becomes a victim of a violent criminal ments received from the Attorney General for in- amended by replacing ‘‘Definition’’ with ‘‘Defi- offense, including drug-related violence, while clusion in the publication. The Attorney Gen- nitions’’ in the catchline, by replacing ‘‘section’’ in or on the grounds of a public elementary eral shall, in making any such decision, consult in the matter under the catchline with ‘‘part’’, school or secondary school that the student at- with the Secretary, and shall, in publishing the by redesignating the matter under the catchline tends and that receives assistance under this decision in the Federal Register, include any after the comma as subparagraph (A), by replac- part, then the local educational agency may use comments received from the Secretary for inclu- ing the period with a semicolon, and by adding funds provided under this part or under any sion in the publication. new subparagraphs (B), (C), and (D) as follows: other Federal education program to pay the ‘‘(I) During the 3-year period beginning on ‘‘(B) the term ‘illegal drug’ means a controlled supplementary costs for such student to attend the date of the enactment of the Methamphet- substance, as defined in section 102(6) of the another school. The agency may use the funds amine Anti-Proliferation Act of 2000, a State Controlled Substances Act (21 U.S.C. 802(6)), the to pay for the supplementary costs of such stu- may not preclude a practitioner from dispensing possession of which is unlawful under the Act dent to attend any other public or private ele- or prescribing narcotic drugs in schedule III, IV, (21 U.S.C. 801 et seq.) or under the Controlled mentary school or secondary school, including a

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00104 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S449 religious school, in the same State as the school tion shall be construed to affect the require- (5) whether the offer of clemency to, or release where the criminal offense occurred, that is se- ments of part B of the Individuals with Disabil- of, any of the 16 FALN or Los Macheteros mem- lected by the student’s parent. The State edu- ities Education Act (20 U.S.C. 1411 et seq.). bers would violate, or be inconsistent with, the cational agency shall determine what actions ‘‘(j) MAXIMUM AMOUNT.—Notwithstanding United States’ obligations under international constitute a violent criminal offense for pur- any other provision of this section, the amount treaties and agreements governing terrorist ac- poses of this section. of assistance provided under this part for a stu- tivity; and ‘‘(b) SUPPLEMENTARY COSTS.—The supple- dent shall not exceed the per pupil expenditure (6) the effect on law enforcement’s ability to mentary costs referred to in subsection (a) shall for elementary or secondary education, as ap- solve open cases and apprehend fugitives result- not exceed— propriate, by the local educational agency that ing from the offer of clemency to the 16 FALN ‘‘(1) in the case of a student for whom funds serves the school where the criminal offense oc- and Los Macheteros members, without first re- under this section are used to enable the student curred for the fiscal year preceding the fiscal quiring each of them to provide the government to attend a public elementary school or sec- year for which the determination is made.’’. all truthful information and evidence he or she ondary school served by a local educational SEC. 1783. TRANSFER OF REVENUES. has concerning open investigations and fugi- agency that also serves the school where the (a) IN GENERAL.—Notwithstanding any other tives associated with the FALN and Los violent criminal offense occurred, the costs of provision of Federal law, a State, a State edu- Macheteros organizations. supplementary educational services and activi- cational agency, or a local educational agency (c) REPORT.—Not later than 30 days after the ties described in section 1114(b) or 1115(c) that may transfer any non-Federal public funds as- date of the enactment of this Act, the Federal are provided to the student; Bureau of Investigation shall submit to Con- ‘‘(2) in the case of a student for whom funds sociated with the education of a student who is gress a report on the study conducted under under this section are used to enable the student a victim of a violent criminal offense while in or subsection (a). to attend a public elementary school or sec- on the grounds of a public elementary school or ondary school served by a local educational secondary school served by a local educational SEC. 1793. ANTIDRUG MESSAGES ON FEDERAL agency that does not serve the school where the agency to another local educational agency or GOVERNMENT INTERNET WEBSITES. violent criminal offense occurred but is located to a private elementary school or secondary Not later than 90 days after the date of the in the same State— school, including a religious school. enactment of this Act, the head of each depart- ‘‘(A) the costs of supplementary educational (b) DEFINITIONS.—For the purpose of sub- ment, agency, and establishment of the Federal services and activities described in section section (a), the terms ‘‘elementary school’’, ‘‘sec- Government shall, in consultation with the Di- 1114(b) or 1115(c) that are provided to the stu- ondary school’’, ‘‘local educational agency’’, rector of the Office of National Drug Control dent; and and ‘‘State educational agency’’ have the mean- Policy, place antidrug messages on appropriate ‘‘(B) the reasonable costs of transportation for ings given such terms in section 14101 of the Ele- Internet websites controlled by such department, the student to attend the school selected by the mentary and Secondary Education Act of 1965 agency, or establishment which messages shall, student’s parent; and (20 U.S.C. 8801). where appropriate, contain an electronic ‘‘(3) in the case of a student for whom funds Subtitle E—Miscellaneous hyperlink to the Internet website, if any, of the Office. under this section are used to enable the student SEC. 1791. NOTICE; CLARIFICATION. to attend a private elementary school or sec- (a) NOTICE OF ISSUANCE.—Section 3103a of SEC. 1794. STATE SCHOOLS. ondary school, including a religious school, the title 18, United States Code, is amended by add- (a) AMENDMENTS.—Part F of title XIV of the costs of tuition, required fees, and the reason- ing at the end the following new sentence: Elementary and Secondary Education Act of able costs of such transportation. ‘‘With respect to any issuance under this section 1965 (20 U.S.C. 8921 et seq.) is amended as fol- ‘‘(c) CONSTRUCTION.—Nothing in this Act or or any other provision of law (including section lows: any other Federal law shall be construed to pre- 3117 and any rule), any notice required, or that (1) SHORT TITLE.—Section 14601(a) is amended vent a parent assisted under this section from may be required, to be given may be delayed by replacing ‘‘Gun-Free’’ with ‘‘Safe’’, and selecting the public or private, including reli- pursuant to the standards, terms, and condi- ‘‘1994’’ with ‘‘1999’’. gious, elementary school or secondary school tions set forth in section 2705, unless otherwise (2) REQUIREMENTS.—Section 14601(b)(1) is that a child of the parent will attend within the expressly provided by statute.’’. amended by inserting after ‘‘determined’’ the State. (b) CLARIFICATION.—(1) Section 2(e) of Public following: ‘‘to be in possession of felonious ‘‘(d) CONSIDERATION OF ASSISTANCE.—Subject Law 95–78 (91 Stat. 320) is amended by adding at quantities of an illegal drug, on school property to subsection (h), assistance made available under the jurisdiction of, or in a vehicle oper- under this section that is used to pay the costs the end the following: ‘‘Subdivision (d) of such rule, as in effect on ated by an employee or agent of, a local edu- for a student to attend a private or religious this date, is amended by inserting ‘tangible’ be- cational agency in that State, or’’. school shall not be considered to be Federal aid fore ‘property’ each place it occurs.’’. (3) DEFINITIONS.—Section 14601(b)(4) is to the school, and the Federal Government shall (2) The amendment made by paragraph (1) amended by replacing ‘‘Definition’’ with ‘‘Defi- have no authority to influence or regulate the shall take effect on the date of the enactment of nitions’’ in the catchline, by replacing ‘‘section’’ operations of a private or religious school as a this Act. in the matter under the catchline with ‘‘part’’, result of assistance received under this section. by redesignating the matter under the catchline ‘‘(e) CONTINUING ELIGIBILITY.—A student as- SEC. 1792. DOMESTIC TERRORISM ASSESSMENT AND RECOVERY. after the comma as subparagraph (A), by replac- sisted under this section shall remain eligible to ing the period with a semicolon, and by adding continue receiving assistance under this section (a) IN GENERAL.—The Federal Bureau of In- vestigation shall prepare a study assessing— new subparagraphs (B), (C), and (D) as follows: for at least 3 academic years without regard to ‘‘(B) The term ‘illegal drug’ means a con- whether the student is eligible for assistance (1) the threat posed by the Fuerzas Armadas de Liberacion Nacional Puertorriquena (FALN) trolled substance, as defined in section 102(6) of under section 1114 or 1115(b). the Controlled Substances Act (21 U.S.C. 802(6)), ‘‘(f) TUITION CHARGES.—Assistance under this and Los Macheteros terrorist organizations to the possession of which is unlawful under the section may not be used to pay tuition or re- the United States and its territories as of July Act (21 U.S.C. 801 et seq.) or under the Con- quired fees at a private elementary school or 31, 1999; and trolled Substances Import and Export Act (21 secondary school in an amount that is greater (2) what effect the President’s offer of clem- U.S.C. 951 et seq.), but does not mean a con- than the tuition and required fees paid by stu- ency to 16 FALN and Los Macheteros members trolled substance used pursuant to a valid pre- dents not assisted under this section at such on August 11, 1999, and the subsequent release scription or as authorized by law. school. of 11 of those members, will have on the threat ‘‘(C) The term ‘illegal drug paraphernalia’ ‘‘(g) SPECIAL RULE.—Any school receiving as- posed by those terrorist organizations to the sistance provided under this section shall com- United States and its territories. means drug paraphernalia, as defined in section ply with title VI of the Civil Rights Act of 1964 (b) ISSUES EXAMINED.—In conducting and pre- 422(d) of the Controlled Substances Act (21 (42 U.S.C. 2000d et seq.) and not discriminate on paring the study under subsection (a), the Fed- U.S.C. 863(d)), except that the first sentence of the basis race, color, or national origin. eral Bureau of Investigation shall address— that section shall be applied by inserting ‘or ‘‘(h) ASSISTANCE; TAXES AND OTHER FEDERAL (1) the threat posed by the FALN and Los under the Controlled Substances Import and Ex- PROGRAMS.— Macheteros organizations to law enforcement port Act (21 U.S.C. 951 et seq.)’, before the pe- ‘‘(1) ASSISTANCE TO FAMILIES, NOT SCHOOLS.— officers, prosecutors, defense attorneys, wit- riod. Assistance provided under this section shall be nesses, and judges involved in the prosecution ‘‘(D) The term ‘felonious quantities of an ille- considered to be aid to families, not schools. Use of members of the FALN and Los Macheteros, gal drug’ means any quantity of an illegal of such assistance at a school shall not be con- both in the United States and its territories; drug— strued to be Federal financial aid or assistance (2) the roles played by each the 16 members of- ‘‘(i) possession of which quantity would, to that school. fered clemency by the President on August 11, under Federal, State, or local law, either con- ‘‘(2) TAXES AND DETERMINATIONS OF ELIGI- 1999, in the FALN and Los Macheteros organi- stitute a felony or indicate an intent to dis- BILITY FOR OTHER FEDERAL PROGRAMS.—Assist- zations; tribute; or ance provided under this section to a student (3) the extent to which the FALN and Los ‘‘(ii) that is possessed with an intent to dis- shall not be considered to be income of the stu- Macheteros organizations are associated with tribute.’’. dent or the parent of such student for Federal, other known terrorist organizations or countries (4) REPORT TO STATE.—Section 14601(d)(2)(C) State, or local tax purposes or for determining suspected of sponsoring terrorism; is amended by inserting ‘‘illegal drugs or’’ be- eligibility for any other Federal program. (4) the threat posed to the national security fore ‘‘weapons’’. ‘‘(i) PART B OF THE INDIVIDUALS WITH DIS- interests of the United States by the FALN and (5) REPEALER.—Section 14601 is amended by ABILITIES EDUCATION ACT.—Nothing in this sec- Los Macheteros organizations; striking subsection (f).

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(6) POLICY REGARDING CRIMINAL JUSTICE SYS- 1114(b) or 1115(c) that are provided to the stu- ondary school’’, ‘‘local educational agency’’, TEM REFERRAL.—Section 14602(a) is amended by dent; and and ‘‘State educational agency’’ have the mean- replacing ‘‘served by’’ with ‘‘under the jurisdic- ‘‘(B) the reasonable costs of transportation for ings given such terms in section 14101 of the Ele- tion of’’, and by inserting after ‘‘who’’ the fol- the student to attend the school selected by the mentary and Secondary Education Act of 1965 lowing: ‘‘is in possession of an illegal drug, or il- student’s parent; and (20 U.S.C. 8801). legal drug paraphernalia, on school property ‘‘(3) in the case of a student for whom funds SEC. 1797. INCREASED PENALTIES FOR DISTRIB- under the jurisdiction of, or in a vehicle oper- under this section are used to enable the student UTING DRUGS TO MINORS. ated by an employee or agent of, such agency, to attend a private elementary school or sec- Section 418 of the Controlled Substances Act or who’’. ondary school, including a religious school, the (21 U.S.C. 859) is amended— (7) DATA AND POLICY DISSEMINATION UNDER costs of tuition, required fees, and the reason- (1) in subsection (a), by strking ‘‘one year’’ IDEA.—Section 14603 is amended by inserting able costs of such transportation. and inserting ‘‘3 years’’; and ‘‘current’’ before ‘‘policy’’, by striking ‘‘in effect ‘‘(c) CONSTRUCTION.—Nothing in this Act or (2) in subsection (b), by striking ‘‘one year’’ on October 20, 1994’’, by striking all the matter any other Federal law shall be construed to pre- and inserting ‘‘5 years’’. after ‘‘schools’’ and inserting a period there- vent a parent assisted under this section from SEC. 1798. INCREASED PENALTY FOR DRUG TRAF- after, and by inserting before ‘‘engaging’’ the selecting the public or private, including reli- FICKING IN OR NEAR A SCHOOL OR following: ‘‘possessing illegal drugs, or illegal gious, elementary school or secondary school OTHER PROTECTED LOCATION. drug paraphernalia, on school property, or in that a child of the parent will attend within the Section 419 of the Controlled Substances Act vehicles operated by employees or agents of, State. (21 U.S.C. 860) is amended— schools or local educational agencies, or’’. ‘‘(d) CONSIDERATION OF ASSISTANCE.—Subject (1) in subsection (a), by striking ‘‘one year’’ and inserting ‘‘3 years’’; and (b) COMPLIANCE DATE; REPORTING.—(1) States to subsection (h), assistance made available (2) in subsection (b), by striking ‘‘three years’’ shall have 2 years from the date of enactment of under this section that is used to pay the costs each place that term appears and inserting ‘‘5 this Act to comply with the requirements estab- for a student to attend a private or religious years’’. lished in the amendments made by subsection school shall not be considered to be Federal aid (a). to the school, and the Federal Government shall SEC. 1799. SEVERABILITY. (2) Not later than 3 years after the date of en- have no authority to influence or regulate the Any provision of this title held to be invalid or actment of this Act, the Secretary of Education operations of a private or religious school as a unenforceable by its terms, or as applied to any shall submit to Congress a report on any State result of assistance received under this section. person or circumstance, shall be construed as to that is not in compliance with the requirements ‘‘(e) CONTINUING ELIGIBILITY.—A student as- give the maximum effect permitted by law, un- of this part. sisted under this section shall remain eligible to less such provision is held to be utterly invalid (3) Not later than 2 years after the date of en- continue receiving assistance under this section or unenforceable, in which event such provision actment of this Act, the Secretary of Education for at least 3 academic years without regard to shall be severed from this title and shall not af- shall submit to Congress a report analyzing the whether the student is eligible for assistance fect the applicability of the remainder of this strengths and weaknesses of approaches regard- under section 1114 or 1115(b). title, or of such provision, to other persons not ‘‘(f) TUITION CHARGES.—Assistance under this ing the disciplining of children with disabilities. similarly situated or to other, dissimilar cir- section may not be used to pay tuition or re- cumstances. SEC. 1795. STUDENT SAFETY AND FAMILY quired fees at a private elementary school or SCHOOL CHOICE. TITLE XVIII—PROTECTION FROM THE IM- secondary school in an amount that is greater Subpart 1 of part A of title I of the Elemen- PACT OF BANKRUPTCY OF CERTAIN than the tuition and required fees paid by stu- tary and Secondary Education Act of 1965 (20 ELECTRIC UTILITIES dents not assisted under this section at such U.S.C. 6311 et seq.) is amended by inserting after SEC. 1801. SHORT TITLE. school. This title may be cited as the ‘‘Emergency Im- section 1115A of such Act (20 U.S.C. 6316) the ‘‘(g) SPECIAL RULE.—Any school receiving as- ported Electric Power Price Reduction Act of following: sistance provided under this section shall com- 2000’’. ‘‘SEC. 1115B. STUDENT SAFETY AND FAMILY ply with title VI of the Civil Rights Act of 1964 SCHOOL CHOICE. (42 U.S.C. 2000d et seq.) and not discriminate on SEC. 1802. FINDINGS AND PURPOSES. ‘‘(a) IN GENERAL.—Notwithstanding any other the basis of race, color, or national origin. (a) FINDINGS.—Congress finds that— (1) the protection of the public health and provision of law, if a student is eligible to be ‘‘(h) ASSISTANCE; TAXES AND OTHER FEDERAL welfare, the preservation of national security, served under section 1115(b), or attends a school PROGRAMS.— eligible for a schoolwide program under section ‘‘(1) ASSISTANCE TO FAMILIES, NOT SCHOOLS.— and the regulation of interstate and foreign 1114, and becomes a victim of a violent criminal Assistance provided under this section shall be commerce require that electric power imported offense, including drug-related violence, while considered to be aid to families, not schools. Use into the United States be priced fairly and com- in or on the grounds of a public elementary of such assistance at a school shall not be con- petitively; school or secondary school that the student at- strued to be Federal financial aid or assistance (2) the importation of electric power into the tends and that receives assistance under this to that school. United States is a matter vested with the public part, then the local educational agency may use ‘‘(2) TAXES AND DETERMINATIONS OF ELIGI- interest that— (A) involves an essential and extensively regu- funds provided under this part or under any BILITY FOR OTHER FEDERAL PROGRAMS.—Assist- other Federal education program to pay the ance provided under this section to a student lated infrastructure industry; and (B) affects consumers, the cost of goods manu- supplementary costs for such student to attend shall not be considered to be income of the stu- factured and services rendered, and the eco- another school. The agency may use the funds dent or the parent of such student for Federal, nomic well-being and livelihood of individuals to pay for the supplementary costs of such stu- State, or local tax purposes or for determining and society; dent to attend any other public or private ele- eligibility for any other Federal program. (3) it is essential that imported electric power mentary school or secondary school, including a ‘‘(i) PART B OF THE INDIVIDUALS WITH DIS- be priced— ABILITIES EDUCATION ACT.—Nothing in this sec- religious school, in the same State as the school (A) in a manner that is competitive with do- tion shall be construed to affect the require- where the criminal offense occurred, that is se- mestic electric power and thereby contribute to ments of part B of the Individuals with Disabil- lected by the student’s parent. The State edu- robust and sound national and regional econo- ities Education Act (20 U.S.C. 1411 et seq.). cational agency shall determine what actions mies; and ‘‘(j) MAXIMUM AMOUNT.—Notwithstanding constitute a violent criminal offense for pur- (B) not at a rate that is so high as to result any other provision of this section, the amount poses of this section. in the imminent bankruptcy of electric utilities of assistance provided under this part for a stu- ‘‘(b) SUPPLEMENTARY COSTS.—The supple- in a State; and mentary costs referred to in subsection (a) shall dent shall not exceed the per pupil expenditure (4) the purchase of imported electric power by not exceed— for elementary or secondary education, as ap- the Vermont Joint Owners under the Firm ‘‘(1) in the case of a student for whom funds propriate, by the local educational agency that Power and Energy Contract with Hydro-Quebec under this section are used to enable the student serves the school where the criminal offense oc- dated December 4, 1987— to attend a public elementary school or sec- curred for the fiscal year preceding the fiscal (A) is not consistent with the findings stated ondary school served by a local educational year for which the determination is made.’’. in paragraphs (1), (2), and (3); and agency that also serves the school where the SEC. 1796. TRANSFER OF REVENUES. (B) threatens the economic well-being of the violent criminal offense occurred, the costs of (a) IN GENERAL.—Notwithstanding any other States and regions in which the imported elec- supplementary educational services and activi- provision of Federal law, a State, a State edu- tric power is provided contrary to the public pol- ties described in section 1114(b) or 1115(c) that cational agency, or a local educational agency icy of the United States as set forth in the find- are provided to the student; may transfer any non-Federal public funds as- ings stated in paragraphs (1), (2), and (3). ‘‘(2) in the case of a student for whom funds sociated with the education of a student who is (b) PURPOSES.—The purposes of this title under this section are used to enable the student a victim of a violent criminal offense while in or are— to attend a public elementary school or sec- on the grounds of a public elementary school or (1) to facilitate the public policy of the United ondary school served by a local educational secondary school served by a local educational States as set forth in the findings stated in agency that does not serve the school where the agency to another local educational agency or paragraphs (1), (2), and (3) of subsection (a); violent criminal offense occurred but is located to a private elementary school or secondary (2) to remove a serious threat to the economic in the same State— school, including a religious school. well-being of the States and regions in which ‘‘(A) the costs of supplementary educational (b) DEFINITIONS.—For the purpose of sub- imported electric power is provided under the services and activities described in section section (a), the terms ‘‘elementary school’’, ‘‘sec- contract referred to in section 1802(a)(4); and

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00106 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S451 (3) to facilitate revisions to the price elements which compliance with this title is enforced by which the information contained in the table es- of the contract referred to in section 1802(a)(4) the Federal Trade Commission, the following tablished under clause (i) should be used in re- by declaring and making unlawful, effective 180 statement, in a prominent location on the front sponding to the request of an obligor for any in- days after the date of enactment of this Act, the of the billing statement, disclosed clearly and formation required to be disclosed under sub- contract as it exists on the date of enactment of conspicuously, in typeface no smaller than the paragraph (A), (B), or (C). this Act. largest typeface used to make other clear and ‘‘(I) The disclosure requirements of this para- SEC. 1803. UNLAWFUL CONTRACT AND AMENDED conspicuous disclosures under this subsection: graph do not apply to any charge card account, CONTRACT. ‘Minimum Payment Warning: Making only the the primary purpose of which is to require pay- (a) IN GENERAL.—Effective on the date that is required minimum payment will increase the in- ment of charges in full each month. 180 days after the date of enactment of this Act, terest you pay and the time it takes to repay ‘‘(J) A creditor that maintains a toll-free tele- the contract referred to in section 1802(a)(4), as your balance. For example, making only the phone number for the purpose of providing cus- the contract exists on the date of enactment of typical 5% minimum monthly payment on a bal- tomers with the actual number of months that it this Act, shall be void. ance of $300 at an interest rate of 17% would will take to repay the consumer’s outstanding (b) AMENDMENT OF CONTRACT.—This title does take 24 months to repay the balance in full. For balance is not subject to the requirements of not preclude the parties to the contract referred an estimate of the time it would take to repay subparagraphs (A) and (B).’’. to in section 1802(a)(4) from amending the con- your balance, making only minimum monthly (b) REGULATORY IMPLEMENTATION.—The tract or entering into a new contract after the payments, call the Federal Trade Commission at Board of Governors of the Federal Reserve Sys- date of enactment of this Act in a manner that this toll-free number: llllll.’ A creditor tem (hereafter in this Act referred to as the is consistent with the findings and purposes of who is subject to this subparagraph shall not be ‘‘Board’’) shall promulgate regulations imple- this title. subject to subparagraph (A) or (B). menting the requirements of section 127(b)(11) of SEC. 1804. EXCLUSIVE ENFORCEMENT. ‘‘(D) Notwithstanding subparagraph (A), (B), the Truth in Lending Act, as added by sub- (a) IN GENERAL.—Only the Attorney General or (C), in complying with any such subpara- section (a) of this section. Section 127(b)(11) of of a State in which electric power is provided graph, a creditor may substitute an example the Truth in Lending Act, as added by sub- under the contract referred to in section based on an interest rate that is greater than 17 section (a) of this section, and the regulations 1802(a)(4), as the contract may be amended after percent. Any creditor who is subject to subpara- issued under this subsection shall not take effect the date of enactment of this Act, may bring a graph (B) may elect to provide the disclosure re- until the later of 18 months after the date of en- civil action in United States district court for an quired under subparagraph (A) in lieu of the actment of this Act or 12 months after the publi- order that— disclosure required under subparagraph (B). cation of such regulations by the Board. (1) declares the amended contract not con- ‘‘(E) The Board shall, by rule, periodically re- (c) STUDY OF FINANCIAL DISCLOSURES.— sistent with the findings and purposes of this calculate, as necessary, the interest rate and re- (1) IN GENERAL.—The Board may conduct a title and is therefore void; payment period under subparagraphs (A), (B), study to determine whether consumers have (2) enjoins performance of the amended con- and (C). adequate information about borrowing activities tract; and ‘‘(F) The toll-free telephone number disclosed that may result in financial problems. (3) relieves the electric utilities that are party by a creditor or the Federal Trade Commission (2) FACTORS FOR CONSIDERATION.—In con- to the amended contract of any liability under under subparagraph (A), (B), or (G), as appro- ducting a study under paragraph (1), the Board the contract. priate, may be a toll-free telephone number es- should, in consultation with the other Federal (b) TIMING.—A civil action under subsection tablished and maintained by the creditor or the banking agencies (as defined in section 3 of the (a) shall be brought not later than 1 year after Federal Trade Commission, as appropriate, or Federal Deposit Insurance Act), the National the date of the amended contract or new con- may be a toll-free telephone number established Credit Union Administration, and the Federal tract. and maintained by a third party for use by the Trade Commission, consider the extent to TITLE XIX—CONSUMER CREDIT creditor or multiple creditors or the Federal which— DISCLOSURE Trade Commission, as appropriate. The toll-free (A) consumers, in establishing new credit ar- SEC. 1901. ENHANCED DISCLOSURES UNDER AN telephone number may connect consumers to an rangements, are aware of their existing payment OPEN END CREDIT PLAN. automated device through which consumers may obligations, the need to consider those obliga- (a) MINIMUM PAYMENT DISCLOSURES.—Section obtain information described in subparagraph tions in deciding to take on new credit, and how 127(b) of the Truth in Lending Act (15 U.S.C. (A), (B), or (C), by inputting information using taking on excessive credit can result in financial 1637(b)) is amended by adding at the end the a touch-tone telephone or similar device, if con- difficulty; (B) minimum periodic payment features of- following: sumers whose telephones are not equipped to fered in connection with open end credit plans ‘‘(11)(A) In the case of an open end credit use such automated device are provided the op- impact consumer default rates; plan that requires a minimum monthly payment portunity to be connected to an individual from of not more than 4 percent of the balance on (C) consumers make only the minimum pay- whom the information described in subpara- ment under open end credit plans; which finance charges are accruing, the fol- graph (A), (B), or (C), as applicable, may be ob- lowing statement, located on the front of the (D) consumers are aware that making only tained. A person that receives a request for in- minimum payments will increase the cost and billing statement, disclosed clearly and con- formation described in subparagraph (A), (B), or spicuously, in typeface no smaller than the larg- repayment period of an open end credit obliga- (C) from an obligor through the toll-free tele- tion; and est typeface used to make other clear and con- phone number disclosed under subparagraph spicuous disclosures required under this sub- (E) the availability of low minimum payment (A), (B), or (C), as applicable, shall disclose in options is a cause of consumers experiencing fi- section: ‘Minimum Payment Warning: Making response to such request only the information only the minimum payment will increase the in- nancial difficulty. set forth in the table promulgated by the Board (3) REPORT TO CONGRESS.—Findings of the terest you pay and the time it takes to repay under subparagraph (H)(i). Board in connection with any study conducted your balance. For example, making only the ‘‘(G) The Federal Trade Commission shall es- under this subsection shall be submitted to Con- typical 2% minimum monthly payment on a bal- tablish and maintain a toll-free number for the gress. Such report shall also include rec- ance of $1,000 at an interest rate of 17% would purpose of providing to consumers the informa- ommendations for legislative initiatives, if any, take 88 months to repay the balance in full. For tion required to be disclosed under subpara- of the Board, based on its findings. an estimate of the time it would take to repay graph (C). your balance, making only minimum payments, SEC. 1902. ENHANCED DISCLOSURE FOR CREDIT ‘‘(H) The Board shall— EXTENSIONS SECURED BY A DWELL- call this toll-free number: llllll.’. ‘‘(i) establish a detailed table illustrating the ING. ‘‘(B) In the case of an open end credit plan approximate number of months that it would (a) OPEN END CREDIT EXTENSIONS.— that requires a minimum monthly payment of take to repay an outstanding balance if the con- (1) CREDIT APPLICATIONS.—Section 127A(a)(13) more than 4 percent of the balance on which fi- sumer pays only the required minimum monthly of the Truth in Lending Act (15 U.S.C. nance charges are accruing, the following state- payments and if no other advances are made, 1637a(a)(13)) is amended— ment, in a prominent location on the front of which table shall clearly present standardized (A) by striking ‘‘CONSULTATION OF TAX ADVI- the billing statement, disclosed clearly and con- information to be used to disclose the informa- SOR.—A statement that the’’ and inserting the spicuously, in typeface no smaller than the larg- tion required to be disclosed under subpara- following: ‘‘TAX DEDUCTIBILITY.—A statement est typeface used to make other clear and con- graph (A), (B), or (C), as applicable; that— spicuous disclosures required under this sub- ‘‘(ii) establish the table required under clause ‘‘(A) the’’; and section: ‘Minimum Payment Warning: Making (i) by assuming— (B) by striking the period at the end and in- only the required minimum payment will in- ‘‘(I) a significant number of different annual serting the following: ‘‘; and crease the interest you pay and the time it takes percentage rates; ‘‘(B) in any case in which the extension of to repay your balance. Making a typical 5% ‘‘(II) a significant number of different account credit exceeds the fair market value (as defined minimum monthly payment on a balance of $300 balances; under the Federal Internal Revenue Code) of at an interest rate of 17% would take 24 months ‘‘(III) a significant number of different min- the dwelling, the interest on the portion of the to repay the balance in full. For an estimate of imum payment amounts; and credit extension that is greater than the fair the time it would take to repay your balance, ‘‘(IV) that only minimum monthly payments market value of the dwelling is not tax deduct- making only minimum monthly payments, call are made and no additional extensions of credit ible for Federal income tax purposes.’’. this toll-free number: llllll.’. are obtained; and (2) CREDIT ADVERTISEMENTS.—Section 147(b) ‘‘(C) Notwithstanding subparagraphs (A) and ‘‘(iii) promulgate regulations that provide in- of the Truth in Lending Act (15 U.S.C. (B), in the case of a creditor with respect to structional guidance regarding the manner in 1665b(b)) is amended—

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00107 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S452 CONGRESSIONAL RECORD — SENATE February 7, 2000 (A) by striking ‘‘If any’’ and inserting the fol- porary annual percentage rate of interest, be construed to supersede subsection (a) of sec- lowing: shall— tion 122, or any disclosure required by para- ‘‘(1) IN GENERAL.—If any’’; and ‘‘(i) use the term ‘introductory’ in immediate graph (1) or any other provision of this sub- (B) by adding at the end the following: proximity to each listing of the temporary an- section.’’. ‘‘(2) CREDIT IN EXCESS OF FAIR MARKET nual percentage rate applicable to such ac- (b) REGULATORY IMPLEMENTATION.—The VALUE.—Each advertisement described in sub- count, which term shall appear clearly and con- Board of Governors of the Federal Reserve Sys- section (a) that relates to an extension of credit spicuously; tem (hereafter in this title referred to as the that may exceed the fair market value of the ‘‘(ii) if the annual percentage rate of interest (‘‘Board’’) shall promulgate regulations imple- dwelling, and which advertisement is dissemi- that will apply after the end of the temporary menting the requirements of section 127 of the nated in paper form to the public or through the rate period will be a fixed rate, state the fol- Truth in Lending Act, as amended by subsection Internet, as opposed to by radio or television, lowing in a clear and conspicuous manner in a (a) of this section. Any provision set forth in shall include a clear and conspicuous statement prominent location closely proximate to the first subsection (a) and such regulations shall not that— listing of the temporary annual percentage rate take effect until the later of 12 months after the ‘‘(A) the interest on the portion of the credit (other than a listing of the temporary annual date of enactment of this Act or 12 months after extension that is greater than the fair market percentage rate in the tabular format described the publication of such regulations by the value of the dwelling is not tax deductible for in section 122(c)) or, if the first listing is not the Board. Federal income tax purposes; and most prominent listing, then closely proximate to the most prominent listing of the temporary an- SEC. 1904. INTERNET-BASED CREDIT CARD SO- ‘‘(B) the consumer should consult a tax advi- LICITATIONS. nual percentage rate, in each document and in sor for further information regarding the de- (a) INTERNET-BASED APPLICATIONS AND SO- no smaller type size than the smaller of the type ductibility of interest and charges.’’. LICITATIONS.—Section 127(c) of the Truth in size in which the proximate temporary annual (b) NON-OPEN END CREDIT EXTENSIONS.— Lending Act (15 U.S.C. 1637(c)) is amended by (1) CREDIT APPLICATIONS.—Section 128 of the percentage rate appears or a 12-point type size, adding at the end the following: Truth in Lending Act (15 U.S.C. 1638) is amend- the time period in which the introductory period ‘‘(7) INTERNET-BASED APPLICATIONS AND SO- ed— will end and the annual percentage rate that LICITATIONS.— (A) in subsection (a), by adding at the end the will apply after the end of the introductory pe- ‘‘(A) IN GENERAL.—In any solicitation to open following: riod; and a credit card account for any person under an ‘‘(15) In the case of a consumer credit trans- ‘‘(iii) if the annual percentage rate that will open end consumer credit plan using the Inter- action that is secured by the principal dwelling apply after the end of the temporary rate period net or other interactive computer service, the of the consumer, in which the extension of cred- will vary in accordance with an index, state the person making the solicitation shall clearly and it may exceed the fair market value of the dwell- following in a clear and conspicuous manner in conspicuously disclose— ing, a clear and conspicuous statement that— a prominent location closely proximate to the ‘‘(i) the information described in subpara- ‘‘(A) the interest on the portion of the credit first listing of the temporary annual percentage graphs (A) and (B) of paragraph (1); and extension that is greater than the fair market rate (other than a listing in the tabular format ‘‘(ii) the disclosures described in paragraph value of the dwelling is not tax deductible for prescribed by section 122(c)) or, if the first list- (6). Federal income tax purposes; and ing is not the most prominent listing, then close- ‘‘(B) the consumer should consult a tax advi- ly proximate to the most prominent listing of the ‘‘(B) FORM OF DISCLOSURE.—The disclosures sor for further information regarding the de- temporary annual percentage rate, in each doc- required by subparagraph (A) shall be— ductibility of interest and charges.’’; and ument and in no smaller type size than the ‘‘(i) readily accessible to consumers in close (B) in subsection (b), by adding at the end the smaller of the type size in which the proximate proximity to the solicitation to open a credit following: temporary annual percentage rate appears or a card account; and ‘‘(3) In the case of a credit transaction de- 12-point type size, the time period in which the ‘‘(ii) updated regularly to reflect the current scribed in paragraph (15) of subsection (a), dis- introductory period will end and the rate that policies, terms, and fee amounts applicable to closures required by that paragraph shall be will apply after that, based on an annual per- the credit card account. made to the consumer at the time of application centage rate that was in effect within 60 days ‘‘(C) DEFINITIONS.—For purposes of this para- for such extension of credit.’’. before the date of mailing the application or so- graph— (2) CREDIT ADVERTISEMENTS.—Section 144 of licitation. ‘‘(i) the term ‘Internet’ means the inter- the Truth in Lending Act (15 U.S.C. 1664) is ‘‘(B) EXCEPTION.—Clauses (ii) and (iii) of sub- national computer network of both Federal and amended by adding at the end the following: paragraph (A) do not apply with respect to any non-Federal interoperable packet switched data ‘‘(e) Each advertisement to which this section listing of a temporary annual percentage rate networks; and applies that relates to a consumer credit trans- on an envelope or other enclosure in which an ‘‘(ii) the term ‘interactive computer service’ action that is secured by the principal dwelling application or solicitation to open a credit card means any information service, system, or access of a consumer in which the extension of credit account is mailed. software provider that provides or enables com- may exceed the fair market value of the dwell- ‘‘(C) CONDITIONS FOR INTRODUCTORY RATES.— puter access by multiple users to a computer ing, and which advertisement is disseminated in An application or solicitation to open a credit server, including specifically a service or system paper form to the public or through the Inter- card account for which a disclosure is required that provides access to the Internet and such net, as opposed to by radio or television, shall under paragraph (1), and that offers a tem- systems operated or services offered by libraries clearly and conspicuously state that— porary annual percentage rate of interest shall, or educational institutions.’’. ‘‘(1) the interest on the portion of the credit if that rate of interest is revocable under any (b) REGULATORY IMPLEMENTATION.—The extension that is greater than the fair market circumstance or upon any event, clearly and Board of Governors of the Federal Reserve Sys- value of the dwelling is not tax deductible for conspicuously disclose, in a prominent manner tem (hereafter in this title referred to as the Federal income tax purposes; and on or with such application or solicitation— (‘‘Board’’) shall promulgate regulations imple- ‘‘(2) the consumer should consult a tax advi- ‘‘(i) a general description of the circumstances menting the requirements of section 127 of the sor for further information regarding the de- that may result in the revocation of the tem- Truth in Lending Act, as amended by subsection ductibility of interest and charges.’’. porary annual percentage rate; and (a) of this section. Any provision set forth in ‘‘(ii) if the annual percentage rate that will (c) REGULATORY IMPLEMENTATION.—The subsection (a) and such regulations shall not Board of Governors of the Federal Reserve Sys- apply upon the revocation of the temporary an- take effect until the later of 12 months after the tem (hereafter in this title referred to as the nual percentage rate— date of enactment of this Act or 12 months after ‘‘(I) will be a fixed rate, the annual percent- ‘‘Board’’) shall promulgate regulations imple- the publication of such regulations by the age rate that will apply upon the revocation of menting the requirements of subsections (a) and Board. the temporary annual percentage rate; or (b) of this section. Such regulations shall not ‘‘(II) will vary in accordance with an index, SEC. 1905. DISCLOSURES RELATED TO LATE PAY- MENT DEADLINES AND PENALTIES. take effect until the later of 12 months after the the rate that will apply after the temporary date of enactment of this Act or 12 months after rate, based on an annual percentage rate that (a) DISCLOSURES RELATED TO LATE PAYMENT the publication of such regulations by the was in effect within 60 days before the date of DEADLINES AND PENALTIES.—Section 127(b) of Board. mailing the application or solicitation. the Truth in Lending Act (15 U.S.C. 1637(b)) is SEC. 1903. DISCLOSURES RELATED TO ‘‘INTRO- ‘‘(D) DEFINITIONS.—In this paragraph— amended by adding at the end the following: DUCTORY RATES’’. ‘‘(i) the terms ‘temporary annual percentage ‘‘(12) If a late payment fee is to be imposed (a) INTRODUCTORY RATE DISCLOSURES.—Sec- rate of interest’ and ‘temporary annual percent- due to the failure of the obligor to make pay- tion 127(c) of the Truth in Lending Act (15 age rate’ mean any rate of interest applicable to ment on or before a required payment due date U.S.C. 1637(c)) is amended by adding at the end a credit card account for an introductory period the following shall be stated clearly and con- the following: of less than 1 year, if that rate is less than an spicuously on the billing statement: ‘‘(6) ADDITIONAL NOTICE CONCERNING ‘INTRO- annual percentage rate that was in effect with- ‘‘(A) The date on which that payment is due DUCTORY RATES’.— in 60 days before the date of mailing the appli- or, if different, the earliest date on which a late ‘‘(A) IN GENERAL.—Except as provided in sub- cation or solicitation; and payment fee may be charged. paragraph (B), an application or solicitation to ‘‘(ii) the term ‘introductory period’ means the ‘‘(B) The amount of the late payment fee to be open a credit card account and all promotional maximum time period for which the temporary imposed if payment is made after such date.’’. materials accompanying such application or so- annual percentage rate may be applicable. (b) REGULATORY IMPLEMENTATION.—The licitation, for which a disclosure is required ‘‘(E) RELATION TO OTHER DISCLOSURE RE- Board of Governors of the Federal Reserve Sys- under paragraph (1), and that offers a tem- QUIREMENTS.—Nothing in this paragraph may tem (hereafter in this title referred to as the

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00108 Fmt 4624 Sfmt 6333 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY February 7, 2000 CONGRESSIONAL RECORD — SENATE S453 (‘‘Board’’) shall promulgate regulations imple- port summarizing the results of the study con- Senate. It is hoped that Senators who menting the requirements of section 127 of the ducted under subsection (a). have amendments will work with the Truth in Lending Act, as amended by subsection f bill managers in an effort to complete (a) of this section. Any provision set forth in this legislation in a timely manner. subsection (a) and such regulations shall not MEASURE READ THE FIRST f take effect until the later of 12 months after the TIME—S. 2036 date of enactment of this Act or 12 months after ADJOURNMENT UNTIL 9:30 A.M. Mr. MACK. I understand that S. 2036, the publication of such regulations by the TOMORROW Board. introduced earlier today by Senator SEC. 1906. PROHIBITION ON CERTAIN ACTIONS SMITH of New Hampshire, is at the desk Mr. MACK. If there is no further FOR FAILURE TO INCUR FINANCE and I, therefore, ask for its first read- business to come before the Senate, I CHARGES. ing. now ask unanimous consent that the (a) PROHIBITION ON CERTAIN ACTIONS FOR The PRESIDING OFFICER. The Senate stand in adjournment under the FAILURE TO INCUR FINANCE CHARGES.—Section clerk will report the bill by title. previous order. 127 of the Truth in Lending Act (15 U.S.C. 1637) There being no objection, the Senate, is amended by adding at the end the following: The legislative clerk read as follows: ‘‘(h) PROHIBITION ON CERTAIN ACTIONS FOR A bill (S. 2036) to make permanent the at 5:10 p.m., adjourned until Tuesday, FAILURE TO INCUR FINANCE CHARGES.—A cred- moratorium on the imposition of taxes on February 8, 2000, at 9:30 a.m. itor of an account under an open end consumer the Internet. f credit plan may not terminate an account prior Mr. MACK. I now ask for its second NOMINATIONS to its expiration date solely because the con- reading and object to my own request. sumer has not incurred finance charges on the The PRESIDING OFFICER. Objec- Executive nominations received by account. Nothing in this subsection shall pro- the Senate February 7, 2000: hibit a creditor from terminating an account for tion is heard. inactivity in 3 or more consecutive months.’’. Under the rule, the bill will be read DEPARTMENT OF STATE (b) REGULATORY IMPLEMENTATION.—The for the second time on the next legisla- CAREY CAVANAUGH, OF FLORIDA, A CAREER MEMBER Board of Governors of the Federal Reserve Sys- OF THE SENIOR FOREIGN SERVICE, CLASS OF COUN- tive day. SELOR, FOR THE RANK OF AMBASSADOR DURING HIS tem (hereafter in this title referred to as the f TENURE OF SERVICE AS SPECIAL NEGOTIATOR FOR (‘‘Board’’) shall promulgate regulations imple- NAGORNO-KARABAKH AND NEW INDEPENDENT STATES menting the requirements of section 127 of the REGIONAL CONFLICTS. ORDERS FOR TUESDAY, RUST MACPHERSON DEMIG, OF MARYLAND, A CAREER Truth in Lending Act, as amended by subsection FEBRUARY 8, 2000 MEMBER OF THE SENIOR FOREIGN SERVICE, CLASS OF (a) of this section. Any provision set forth in MINISTER-COUNSELOR, TO BE AMBASSADOR EXTRAOR- subsection (a) and such regulations shall not Mr. MACK. Madam President, I ask DINARY AND PLENIPOTENTIARY OF THE UNITED STATES OF AMERICA TO THE REPUBLIC OF TUNISIA. take effect until the later of 12 months after the unanimous consent that when the Sen- JOHN W. LIMBERT, OF VERMONT, A CAREER MEMBER date of enactment of this Act or 12 months after ate completes its business today it ad- OF THE SENIOR FOREIGN SERVICE, CLASS OF COUN- the publication of such regulations by the SELOR, TO BE AMBASSADOR EXTRAORDINARY AND journ until the hour of 9:30 a.m. on PLENIPOTENTIARY OF THE UNITED STATES OF AMERICA Board. Tuesday, February 8. I further ask con- TO THE ISLAMIC REPUBLIC OF MAURITANIA. SEC. 1907. DUAL USE DEBIT CARD. ROGER A. MEECE, OF WASHINGTON, A CAREER MEMBER sent that on Tuesday, immediately fol- OF THE SENIOR FOREIGN SERVICE, CLASS OF COUN- (a) REPORT.—The Board may conduct a study lowing the prayer, the Journal of pro- SELOR, TO BE AMBASSADOR EXTRAORDINARY AND of, and present to Congress a report containing PLENIPOTENTIARY OF THE UNITED STATES OF AMERICA its analysis of, consumer protections under ex- ceedings be approved to date, the TO THE REPUBLIC OF MALAWI. morning hour be deemed expired, the RONALD E. NEUMANN, OF VIRGINIA, A CAREER MEM- isting law to limit the liability of consumers for BER OF THE SENIOR FOREIGN SERVICE, CLASS OF MIN- unauthorized use of a debit card or similar ac- time for the two leaders be reserved for ISTER-COUNSELOR, TO BE AMBASSADOR EXTRAOR- cess device. Such report, if submitted, shall in- their use later in the day, and the Sen- DINARY AND PLENIPOTENTIARY OF THE UNITED STATES OF AMERICA TO THE STATE OF BAHRAIN. clude recommendations for legislative initiatives, ate then begin a period of morning IN THE COAST GUARD if any, of the Board, based on its findings. business until 10:30 a.m., with Senators (b) CONSIDERATIONS.—In preparing a report speaking for up to 5 minutes each, with THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT under subsection (a), the Board may include— IN THE UNITED STATES COAST GUARD RESERVE TO THE the following exceptions: The first 30 GRADE INDICATED UNDER TITLE 10, U.S.C., SECTION 12203: (1) the extent to which section 909 of the Elec- tronic Fund Transfer Act (15 U.S.C. 1693g), as minutes under the control of Senator To be captain in effect at the time of the report, and the imple- DURBIN or his designee; the second 30 CDR. MICHAEL H. GRANER, 0000 menting regulations promulgated by the Board minutes under the control of Senator CDR. LARRY D. HICE, 0000 CDR. JOHN D. DWYER, 0000 to carry out that section provide adequate un- THOMAS or his designee. CDR. ROBERT SHARKEY, 0000 authorized use liability protection for con- The PRESIDING OFFICER. Without CDR. ALAN R. FREEDMAN, 0000 sumers; CDR. BRUCE G. CLARK, 0000 objection, it is so ordered. CDR. CAROL A. RIVERS, 0000 (2) the extent to which any voluntary indus- Mr. MACK. Further, I ask unanimous CDR. JOANN F. SPANGENBERG, 0000 try rules have enhanced or may enhance the consent that the Senate stand in recess CDR. ALAN L. BROWN, 0000 level of protection afforded consumers in con- CDR. GEORGE T. ELLIOTT, 0000 from the hours of 12:30 p.m. to 2:15 p.m. CDR. RICHARD A. WALLESHAUSER, JR., 0000 nection with such unauthorized use liability; CDR. BRUCE R. MCQUEEN, 0000 and for the weekly policy conferences to CDR. MICHAEL R. SEWARD, 0000 (3) whether amendments to the Electronic meet. THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT Fund Transfer Act (15 U.S.C. 1693 et seq.), or re- The PRESIDING OFFICER. Without IN THE UNITED STATES COAST GUARD RESERVE TO THE visions to regulations promulgated by the Board objection, it is so ordered. GRADE INDICATED UNDER TITLE 10, U.S.C., SECTION 12203: to carry out that Act, are necessary to further To be commander f address adequate protection for consumers con- LT. CDR. DOUGLAS N. EAMES, 0000 cerning unauthorized use liability. LT. CDR. GREGORY C. ZURAKOWSKI, 0000 PROGRAM LT. CDR. RICHARD M. O’ROURKE, 0000 SEC. 1908. STUDY OF BANKRUPTCY IMPACT OF LT. CDR. MICHAEL J. MAZZONE, 0000 CREDIT EXTENDED TO DEPENDENT Mr. MACK. For the information of all LT. CDR. PHILIP H. HALVORSON, 0000 STUDENTS. Senators, the Senate will be in a period LT. CDR. DAVID K. ALMOND, 0000 LT. CDR. LYNN J. DUMAS, 0000 (a) STUDY.— of morning business until 10:30 a.m. LT. CDR. JEFFREY S. BAUER, 0000 (1) IN GENERAL.—The Comptroller General of Following morning business, it is ex- LT. CDR. CHARLES R. MARQUIS, 0000 the United States shall conduct a study regard- pected that the Senate will then begin LT. CDR. JEFFREY SAINE, 0000 ing the impact that the extension of credit de- LT. CDR. DONALD M. HUGHES, 0000 consideration of the nuclear waste dis- LT. CDR. DIANE L. COLEMAN, 0000 scribed in paragraph (2) has on the rate of LT. CDR. LONNIE A. DANIELS, JR., 0000 bankruptcy cases filed under title 11, United posal bill. If that consent is not grant- LT. CDR. RICKEY D. THOMAS, 0000 ed, then there is an understanding that LT. CDR. SUSAN F. DAIGNAULT, 0000 States Code. LT. CDR. BERNARD T. MORELAND, 0000 (2) EXTENSION OF CREDIT.—The extension of a cloture vote will occur at 2:15 on LT. CDR. ROBERT H. CARMACK, 0000 credit referred to in paragraph (1) is the exten- Tuesday with respect to a committee LT. CDR. TIMOTHY A. AINES, 0000 sion of credit to individuals who are— amendment. Members should be aware IN THE AIR FORCE (A) claimed as dependents for purposes of the that amendments to the nuclear waste THE FOLLOWING NAMED OFFICER FOR APPOINTMENT Internal Revenue Code of 1986; and bill are anticipated, and those con- IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- CATED UNDER TITLE 10, U.S.C., SECTION 624: (B) enrolled in postsecondary educational in- cerned are close to reaching an agree- stitutions. To be brigadier general ment providing for a limited number of (b) REPORT.—Not later than 1 year after the COL. CURTIS M. BEDKE, 0000. date of enactment of this Act, the Comptroller amendments and debate time. There- fore, Senators can expect votes THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT General of the United States shall submit to the IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- Senate and the House of Representatives a re- throughout tomorrow’s session of the CATED UNDER TITLE 10, U.S.C., SECTION 624:

VerDate Mar 15 2010 22:48 Dec 04, 2013 Jkt 081600 PO 00000 Frm 00109 Fmt 4624 Sfmt 9801 E:\2000SENATE\S07FE0.REC S07FE0 mmaher on DSKCGSP4G1 with SOCIALSECURITY S454 CONGRESSIONAL RECORD — SENATE February 7, 2000 To be brigadier general REAR ADM. (LH) CHARLES R. KUBIC, 0000 LEE G WARD, 0000 MATTHEW H WELSH, 0000 COL. JOHN J. CATTON, JR., 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT STEVE R WILKINSON, 0000 COL. DAVID E. CLARY, 0000 IN THE UNITED STATES NAVY TO THE GRADE INDICATED COL. MICHAEL A. COLLINGS, 0000 UNDER TITLE 10, U.S.C., SECTION 624: THE FOLLOWING NAMED OFFICERS FOR REGULAR AP- POINTMENT TO THE GRADES INDICATED IN THE UNITED COL. SCOTT S. CUSTER, 0000 REAR ADM. (LH) RODRIGO C. MELENDEZ, 0000 COL. DANIEL J. DARNELL, 0000 STATES NAVY UNDER TITLE 10, U.S.C., SECTION 531: COL. DUANE W. DEAL, 0000 IN THE AIR FORCE To be commander COL. VERN M. FINDLEY, II, 0000 COL. DOUGLAS M. FRASER, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT RAQUEL C BONO, 0000 COL. DAN R. GOODRICH, 0000 TO THE GRADES INDICATED IN THE UNITED STATES AIR JOHN W CROWLEY, 0000 COL. GILBERT R. HAWK, 0000 FORCE UNDER TITLE 10, U.S.C., SECTIONS 624 AND 628: DAVID A DAVIS, 0000 COL. RAYMOND E. JOHNS, JR., 0000 To be lieutenant LEROY T JACKSON, 0000 COL. TIMOTHY C. JONES, 0000 TRACY A MALONE, 0000 COL. PERRY L. LAMY, 0000 CHARLES G. BELENY, 0000 JAMES C MARTIN, 0000 COL. EDWARD L. MAHAN, JR., 0000 ALAAELDEEN M. ELSAYED, 0000 ROBERT MORALES, 0000 COL. ROOSEVELT MERCER, JR., 0000 To be major MARK E RALSTON, 0000 COL. GARY L. NORTH, 0000 THOMAS L RICHIE, 0000 COL. JOHN G. PAVLOVICH, 0000 KRISTEN A. FULTSGANEY, 0000 To be lieutenant commander COL. ALLEN G. PECK, 0000 COL. MICHAEL W. PETERSON, 0000 IN THE ARMY JAMES K AMSBERRY, 0000 COL. TERESA M. PETERSON, 0000 THE FOLLOWING NAMED ARMY NATIONAL GUARD OF KATHRYN A BALLANTYNE, 0000 COL. GREGORY H. POWER, 0000 THE UNITED STATES OFFICERS FOR APPOINTMENT TO GREGORY S BLASCHKE, 0000 COL. ANTHONY F. PRZYBYSLAWSKI, 0000 THE GRADE INDICATED IN THE RESERVE OF THE ARMY PETER C BONDY, 0000 COL. RONALD T. RAND, 0000 UNDER TITLE 10, U.S.C., SECTIONS 12203 AND 12211: DOUGLAS F BREWSTER, 0000 COL. STEVEN J. REDMANN, 0000 JOHN E BROWN, 0000 COL. LOREN M. RENO, 0000 To be colonel ROBERT H BUCKLEY, 0000 COL. JEFFREY R. RIEMER, 0000 DOUGLAS N CARBINE, 0000 WAYNE E. CAUGHMAN, 0000 COL. JACK L. RIVES, 0000 JEFFREY A CONWELL, 0000 BERNARD F. GERDING, 0000 COL. MARC E. ROGERS, 0000 MIGUEL A CUBANO, 0000 RAYMOND E. MOORE, 0000 COL. ARTHUR J. ROONEY, JR., 0000 MITCHELL DUKOVICH, 0000 JAMES E. SEBREE, JR., 0000 COL. STEPHEN T. SARGEANT, 0000 KENNETH C EARHART, 0000 CALVIN B. WIMBISH, 0000 COL. DARRYL A. SCOTT, 0000 JAMES P FLINT, 0000 COL. JAMES M. SHAMESS, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT DAVID W FLOYD, 0000 COL. WILLIAM L. SHELTON, 0000 TO THE GRADE INDICATED IN THE UNITED STATES ARMY EDDIE A GARCIA, 0000 COL. JOHN T. SHERIDAN, 0000 AS CHAPLAIN UNDER TITLE 10, U.S.C., SECTIONS 624 AND JASON E GUEVARA, 0000 COL. TOREASER A. STEELE, 0000 3064: KEITH B GUSTAFSON, 0000 COL. JAMES W. SWANSON, 0000 MARK E HAMMETT, 0000 HAROLD T. CARLSON, 0000 COL. GEORGE P. TAYLOR, JR., 0000 JAMES W HANSEN, 0000 MARK A. FRITCH, 0000 COL. GREGORY L. TREBON, 0000 DOUGLAS A JONES, 0000 LARRY J. GOODWILL, 0000 COL. LOYD S. UTTERBACK, 0000 THOMAS J KIM, 0000 HENRY A. HAYNES, 0000 COL. FREDERICK D. VANVALKENBURG, JR., 0000 KATHERINE KITSVANHEYNINGEN, 0000 RONALD E. HILBURN, 0000 COL. DALE C. WATERS, 0000 FREDERICK J LANDRO, 0000 EDWARD K. MANEY, 0000 COL. SIMON P. WORDEN, 0000 EDWIN T LONG, 0000 JOHN H. MCRAE, 0000 WILLIAM H LYNCH, 0000 IN THE ARMY DANIEL J. PAUL, 0000 JEFFREY MARTINEZ, 0000 JOHN J. PRENDERGAST, 0000 GEOFFREY MCCULLEN, 0000 THE FOLLOWING ARMY NATIONAL GUARD OF THE LARRY D. ROBINSON, 0000 JOHN D MITCHELL, 0000 UNITED STATES OFFICERS FOR APPOINTMENT IN THE RICHARD P. ROGGIA, 0000 STEVEN W MOLL, 0000 RESERVE OF THE ARMY TO THE GRADE INDICATED ELENITO B. SANTOS, 0000 DEAN A PAGE, 0000 UNDER TITLE 10, U.S.C., SECTION 12203: GREGORY P. SYKES, 0000 PHILIP W PERDUE, 0000 JEFFREY M. YOUNG, 0000 To be major general ALAN F PHILIPPI, 0000 BRIG. GEN. ALEXANDER H. BURGIN, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT FRANK A PUGLIESE, 0000 BRIG. GEN. WILLIAM A. CUGNO, 0000 TO THE GRADE INDICATED IN THE UNITED STATES ARMY SCOTT R REICHARD, 0000 BRIG. GEN. BRADLEY D. GAMBILL, 0000 IN THE JUDGE ADVOCATE GENERAL’S CORPS UNDER JAMES V RITCHIE, 0000 BRIG. GEN. MARIANNE MATHEWSON-CHAPMAN, 0000 TITLE 10 , U.S.C. SECTIONS 624 AND 3064: EILEEN SCANLAN, 0000 MARK A SCHMETZ, 0000 BRIG. GEN. MICHAEL H. TAYLOR, 0000 To be colonel BRIG. GEN. FRANCIS D. VAVALA, 0000 ALEXANDER SHIN, 0000 BRIAN D SMULLEN, 0000 LYLE W CAYCE, 0000 To be brigadier general TIMOTHY C SORRELLS, 0000 MALINDA E DUNN, 0000 MARK V SUTHERLAND, 0000 ANTHONY M HELM, 0000 COL. JOHN A. BATHKE, 0000 JAMES H TARVER, 0000 WILLIAM M MAYES, 0000 COL. BARBARANETTE T. BOLDEN, 0000 MICHAEL A THOMPSON, 0000 MICHELE M MILLER, 0000 COL. RONALD S. CHASTAIN, 0000 JEFFREY W TIMBY, 0000 MELVIN G OLMSCHEID, 0000 COL. RONALD G. CROWDER, 0000 SANDRA S TOMITA, 0000 JOHN F PHELPS, 0000 COL. RICKY D. ERLANDSON, 0000 MICHAEL R WAGNER, 0000 FRED T PRIBBLE, 0000 COL. DALLAS W. FANNING, 0000 DENTON D WEISS, 0000 COL. DONALD J. GOLDHORN, 0000 STEVEN T SALATA, 0000 COL. LARRY W. HALTOM, 0000 MORTIMER C SHEA, JR, 0000 To be lieutenant COL. WILLIAM E. INGRAM, JR., 0000 PAUL L SNYDERS, 0000 KEITH N ADAMS, 0000 COL. JOHN T. KING, JR., 0000 WILLIAM A STRANKO II, 0000 BARRY J BAUGHMAN, 0000 COL. RANDALL D. MOSLEY, 0000 MANUEL E SUPERVIELLE, 0000 CATHERINE A BAYNE, 0000 COL. RICHARD C. NASH, 0000 MARC L WARREN, 0000 DEDRA A BELL, 0000 COL. PHILLIP E. OATES, 0000 ROGER D WASHINGTON, 0000 RICHARD D BERGTHOLD, 0000 COL. RICHARD D. READ, 0000 IN THE NAVY VALERIE J BEUTEL, 0000 COL. ANDREW M. SCHUSTER, 0000 ALEXANDER J BORZYCH, 0000 COL. JONATHAN P. SMALL, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT BRUCE H BOYLE, 0000 COL. DAVID A. SPRYNCZYNATYK, 0000 TO THE GRADES INDICATED IN THE UNITED STATES KEVIN R BRADSHAW, 0000 COL. RONALD B. STEWART, 0000 NAVY UNDER TITLE 10, U.S.C., SECTIONS 624: JON N BRADY, 0000 COL. WARNER I. SUMPTER, 0000 CHRISTOPHER BROWN, 0000 COL. CLYDE A. VAUGHN, 0000 To be commander JANE E CAMPBELL, 0000 IN THE MARINE CORPS DEAN J. GIORDANO, 0000 BRIAN D CLEMENT, 0000 CINDY L. JAYNES, 0000 MICHAEL A COLSON, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT ROBERTA L. ROTHEN, 0000 RONALD A COOLEY, 0000 IN THE UNITED STATES MARINE CORPS TO THE GRADE To be lieutenant commander KENNETH D COUNTS, 0000 INDICATED UNDER TITLE 10, U.S.C., SECTION 624: DAVID R CROWE, 0000 To be major general PATRICK A. DAWKINS, 0000 DERRICK M DAVIS, 0000 BARRY J. GITTLEMAN, 0000 JAMES T DENLEY, 0000 BRIG. GEN. JAMES R. BATTAGLINI, 0000 PAUL J. LOMMEL, 0000 STACY K DIPMAN, 0000 BRIG. GEN. JAMES E. CARTWRIGHT, 0000 WILLIAM K. NESMITH, 0000 JOSEPH DIVINO, 0000 BRIG. GEN. CHRISTOPHER CORTEZ, 0000 PAUL F EICH, 0000 BRIG. GEN. GARY H. HUGHEY, 0000 THE FOLLOWING NAMED OFFICERS FOR TEMPORARY EDWARD J FIORENTINO, 0000 BRIG. GEN. THOMAS S. JONES, 0000 APPOINTMENT TO THE GRADE INDICATED IN THE JENNIFER M GEDDES, 0000 BRIG. GEN. RICHARD L. KELLY, 0000 UNITED STATES NAVY UNDER TITLE 10, U.S.C., SECTION MARCIA L GILL, 0000 BRIG. GEN. JOHN F. SATTLER, 0000 5721: GREGG D GILLETTE, 0000 BRIG. GEN. WILLIAM A. WHITLOW, 0000 To be lieutenant commander JEFFREY J GRAY, 0000 IN THE NAVY MICHAEL L GREENWALT, 0000 DAVID R ALLISON, 0000 HERBERT L GRIFFIN, JR, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT STEVEN R BALMER, 0000 ALAN M HANSEN, 0000 IN THE UNITED STATES NAVAL RESERVE TO THE GRADE CHRISTOPHER BOLLINGER, 0000 JULIE C HANSON, 0000 INDICATED UNDER TITLE 10, U.S.C., SECTION 12203: MICHAEL L BRYANT, 0000 STEPHEN J HARTUNG, 0000 JOHN G CARPENTIER, 0000 CHRISTOPHER T HEBERT, 0000 To be rear admiral (lower half) GARY W CRIGLOW, 0000 J PHILLIP HEDGES, JR, 0000 DAVID R FRITZ, 0000 MARK R HENDRICKS, 0000 CAPT. WILLIAM V. ALFORD, 0000 DENNIS G GILMAN, 0000 BRIAN M HERSHEY, 0000 CAPT. JOHN P. DEBBOUT, 0000 STEVEN A GLOVER, 0000 KATHLEEN E HEWITT, 0000 CAPT. ROGER T. NOLAN, 0000 BRUCE W GRISSOM, 0000 EDWARD F HILER, 0000 CAPT. STEPHEN S. OSWALD, 0000 LEON R JABLOW, 0000 EDWARD J HILYARD, 0000 CAPT. ROBERT O. PASSMORE, 0000 DEAN A JACOBS, 0000 JENNIFER P HORNE, 0000 CAPT. GREGORY J. SLAVONIC, 0000 ROBERT J LYNCH, 0000 BRUCE A HOUGESEN, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT JOHN B MORRISON, 0000 BARBARA L HUFF, 0000 IN THE UNITED STATES NAVY TO THE GRADE INDICATED ANDREW R PAYNE, 0000 THOMAS R HUNT, JR, 0000 UNDER TITLE 10, U.S.C., SECTION 624: GARY W PINKERTON, 0000 DAVID E JONES, 0000 To be rear admiral GLENN H PORTERFIELD, 0000 KARON V JONES, 0000 RICHARD T SHELAR, 0000 ROBERT J KILLIUS, 0000 REAR ADM. (LH) MICHAEL R. JOHNSON, 0000 TIMOTHY S STEADMAN, 0000 JAMES A KIRK, 0000

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ALLEN R KUSS, 0000 DIANNE M OKONSKY, 0000 JEOSALINA N SERBAS, 0000 GARY E LAMB, 0000 BENJAMIN L ORCHARD, 0000 THAD M SHELTON, 0000 CHRISTOPHER F LAMOUREAUX, 0000 CARLOS B ORTIZ, 0000 LESLIE K SIAS, 0000 ROBERT B LANCIA, 0000 MICHAEL J OSBORN, 0000 GREGORY J SINGERLE, JR, 0000 LENORA C LANGLAIS, 0000 CHRISTINA G PARDUE, 0000 GLENDA D SINK, 0000 ROBERT S LAWRENCE, 0000 LAURENCE M PATRICK, 0000 JEFFREY E SMITH, 0000 ARTHUR H LOGAN, 0000 TANYA M PONDER, 0000 JONATHAN M SMITH, 0000 MICHAEL P LYNN, 0000 DAVID E PRATT, 0000 STUART D SMITH, 0000 KEVIN M MATULEWICZ, 0000 JACQUELINE PRUITT, 0000 ERIN G SNOW, 0000 DENISE K MC ELDOWNEY, 0000 ROBERT J PUDLO, 0000 KAREN A SORIA, 0000 ROBERT K MC GAHA, 0000 KAY R REEB, 0000 MARY A MCMACKIN, 0000 KEVIN J REGAN, 0000 CHRISTOPHER T SOSA, 0000 GREGORY C MERK, 0000 JAY S RICHARDS, 0000 DEREK L TEACHOUT, 0000 ROSARIO P MERRELL, 0000 MARCIA A RIPLEY, 0000 MARY A TILLOTSON, 0000 DREW C MESSER, 0000 LOVETTE T ROBINSON, 0000 WILLIAM D TITUS, 0000 ADAM S MICHELS, 0000 LOUIS ROSA, 0000 JOSUE TORO, 0000 WILLIAM D MILAM, 0000 GLORIA A RUSSELL, 0000 DAVID A TUBLEY, 0000 NANCY L MONTAGOT, 0000 DEIDRE I SALL, 0000 KEN H UYESUGI, 0000 DONALD R MOSS, 0000 SCOTT A SAMPLES, 0000 PAUL E VOLLE, 0000 MICHAEL G MUELLER, 0000 JEFFREY N SAVILLE, 0000 ANDREW J WEGNAN, 0000 DAVID H NORMAN, 0000 WILLIAM G SCHORGL, 0000 BARRY E WILCOX, II, 0000 ROBERT E OBRECHT, 0000 BRENT W SCOTT, 0000 MIL A YI, 0000

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