November 13, 2001 CONGRESSIONAL RECORD — HOUSE H8107 the core principle of Winstar last year in SEC. 2. INCREASE IN PENALTIES FOR UNFAIR OR There was no objection. Mobil Oil Exploration & Producing S.E., Inc., DECEPTIVE ACTS OR PRACTICES EX- PLOITING REACTION TO CERTAIN Mr. TAUZIN. Mr. Speaker, I yield v. United States, 530 U.S. 604 (2000). In that myself such time as I may consume. case, the Court was asked to analyze the va- EMERGENCIES AND MAJOR DISAS- TERS. lidity of the Outer Continental Shelf Lands Mr. Speaker, September 11 brought (a) VIOLATIONS OF PROHIBITION AGAINST UN- Act (‘‘OCSLA’’), which barred offshore drill- this country face-to-face with what FAIR OR DECEPTIVE ACTS OR PRACTICES.—Sec- was once thought to be an unimagi- ing for which oil companies had previously tion 5(m)(1) of the Federal Trade Commis- paid the United States $158 million to receive sion Act (15 U.S.C. 45(m)(1)) is amended by nable series of events. However, these permits. The court found that the passage of adding at the end the following: cowardly acts of terrorism sparked in OCSLA violated the oil companies’ rights ‘‘(D) In the case of a violation involving an this country an unprecedented level of under the contract, and that the government unfair or deceptive act or practice in an generosity, an outpouring of spirit, of was required to return the $158 million. Id. at emergency period or disaster period, the patriotism, but also of dollars. 624. This was the case, according to the amount of the civil penalty under this para- Court, despite the fact that the permits the Immediately, from every corner of graph shall be double the amount otherwise this country, charities were inundated oil companies received only entitled them to provided in this paragraph, if the act or prac- pursue drilling if they subsequently fulfilled tice exploits popular reaction to the national with money, with food, with clothing. certain regulatory requirements. Id. at 621. emergency, major disaster, or emergency Hospitals saw long lines of people offer- As the Court found, ‘‘[t]he oil companies that is the basis for such period. ing to donate blood. Here in this Cap- gave the United States [a benefit] in return ‘‘(E) In this paragraph— itol complex Members and wives and for a contractual promise to follow the terms ‘‘(i) the term ‘emergency period’ means the husbands and staff lined up to donate of pre-existing statute and regulations. The period that— new statute prevented the Government from blood. Shelters for the injured and ‘‘(I) begins on the date the President de- homeless sprang up out of office build- keeping that promise. The breach substan- clares a national emergency under the Na- tially impaired the value of the contracts. tional Emergencies Act (50 U.S.C. 1601 et ings, restaurants and small businesses. And therefore the Government must give the seq.); and Financial donations alone exceeded $1 companies their money back.’’ Id. at 624 (in- ‘‘(II) ends on the expiration of the 1-year billion. ternal citations and quotation marks omit- period beginning on the date of the termi- If there is ever any silver lining in ted). nation of the national emergency; and this national tragedy that this awful Just as was the case in the S & L and oil ‘‘(ii) the term ‘disaster period’ means the 1- atrocity created upon the people of this drilling situations, the proposed legislation year period beginning on the date the Presi- here would deprive the party contracting land, it is this: We saw the incarnation dent declares an emergency or major dis- of the American spirit again, the true with the government—in this case, BMS— aster under the Robert T. Stafford Disaster the right to the benefit of the bargain it had Relief and Emergency Assistance Act (42 strength of our country, the true, in- struck with the United States. This breach U.S.C. 5121 et seq.).’’. deed, the blessed meaning of the United by the government would entitle BMS to (b) VIOLATIONS OF OTHER LAWS ENFORCED States of America. bring suit in the Court of Federal Claims BY THE FEDERAL TRADE COMMISSION.—Sec- But as with this and any disaster, under several theories of contract law, and tion 13 of the Federal Trade Commission Act there are unscrupulous people who will would expose the United States to expensive (15 U.S.C. 53) is amended by adding at the and protracted litigation. take advantage of that generosity. Un- end the following: fortunately, this national emergency The SPEAKER pro tempore (Mr. ‘‘(e)(1) If a person, partnership, or corpora- was no different. On the heels of the FORBES). All time has expired. tion is found, in an action under subsection The question is on the motion offered (b), to have committed a violation involving September 11 atrocities, we heard sto- by the gentleman from Louisiana (Mr. an unfair or deceptive act or practice in an ries of scam telemarketers and scam emergency period or a disaster period, and if charities trying to collect for ‘‘disaster TAUZIN) that the House suspend the the act or practice exploits popular reaction relief’’ and crooks appearing to be af- rules and pass the bill, H.R. 2887, as to the national emergency, major disaster, amended. filiated with fire department fund-rais- or emergency that is the basis for such pe- ing groups going door-to-door asking The question was taken. riod, the court, after awarding equitable re- The SPEAKER pro tempore. In the lief (if any) under any other authority of the for funds. H.R. 2985 is aimed directly at opinion of the Chair, two-thirds of court, shall hold the person, partnership, or these scam artists. those present have voted in the affirm- corporation liable for a civil penalty of not The American Spirit Fraud Preven- ative. more than $22,000 for each such violation. tion Act declares frauds during these Mr. BROWN of Ohio. Mr. Speaker, on ‘‘(2) In this subsection— times to be different. H.R. 2985 allows that I demand the yeas and nays. ‘‘(A) the term ‘emergency period’ means the Federal Trade Commission to in- The yeas and nays were ordered. the period that— crease civil penalties for unfair and de- ‘‘(i) begins on the date the President de- The SPEAKER pro tempore. Pursu- clares a national emergency under the Na- ceptive acts or practices that exploit ant to clause 8 of rule XX and the tional Emergencies Act (50 U.S.C. 1601 et this Nation’s reaction to a national Chair’s prior announcement, further seq.); and emergency or a national disaster. With proceedings on this motion will be ‘‘(ii) ends on the expiration of the 1-year this bill, the FTC can collect up to postponed. period beginning on the date of the termi- $22,000 in civil penalties for each and f nation of the national emergency; and every violation. This will send a strong ‘‘(B) the term ‘disaster period’ means the 1- and unequivocal message to criminals AMERICAN SPIRIT FRAUD year period beginning on the date the Presi- hoping to prey on the kindness of PREVENTION ACT dent declares an emergency or major dis- strangers, ‘‘You will pay.’’ Mr. TAUZIN. Mr. Speaker, I move to aster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 I want to thank the gentleman from suspend the rules and pass the bill U.S.C. 5121 et seq.).’’. Georgia (Mr. DEAL) and the gentleman (H.R. 2985) to amend the Federal Trade The SPEAKER pro tempore. Pursu- from New Hampshire (Mr. BASS), the Commission Act to increase civil pen- ant to the rule, the gentleman from original sponsors of the American Spir- alties for violations involving certain Louisiana (Mr. TAUZIN) and the gen- it Fraud Prevention Act. This is an ex- proscribed acts or practices that ex- tleman from New York (Mr. TOWNS) cellent bill. I strongly urge its passage. ploit popular reaction to an emergency each will control 20 minutes. I hope those who would scam the gen- or major disaster declared by the Presi- The Chair recognizes the gentleman erosity of Americans in this tragic dent, and to authorize the Federal from Louisiana (Mr. TAUZIN). time will pay attention tonight, be- Trade Commission to seek civil pen- cause, if they do not, the FTC will see alties for such violations in actions GENERAL LEAVE Mr. TAUZIN. Mr. Speaker, I ask you in court. brought under section 13 of that Act. Mr. Speaker, I reserve the balance of The Clerk read as follows: unanimous consent that all Members my time. H.R. 2985 may have 5 legislative days within which to revise and extend their re- Mr. TOWNS. Mr. Speaker, I yield my- Be it enacted by the Senate and House of Rep- self such time as I may consume. resentatives of the United States of America in marks and include extraneous material Congress assembled, on H.R. 2985. Mr. Speaker, as ranking member on SECTION 1. SHORT TITLE. The SPEAKER pro tempore. Is there this Subcommittee on Commerce, This Act may be cited as the ‘‘American objection to the request of the gen- Trade and Consumer Protection, I am Spirit Fraud Prevention Act’’. tleman from Louisiana? pleased to join the gentleman from VerDate 06-NOV-2001 04:53 Nov 14, 2001 Jkt 099060 PO 00000 Frm 00073 Fmt 7634 Sfmt 0634 E:\CR\FM\A13NO7.091 pfrm02 PsN: H13PT1 H8108 CONGRESSIONAL RECORD — HOUSE November 13, 2001 Florida (Chairman STEARNS), the chair- peared. The Department of Justice, the I want to thank my colleagues on the man of the subcommittee, in cospon- Federal Trade Commission and the other side, of course, the gentleman soring H.R.