Ban Asbestos in America Act of 2003
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Read twice and referred to the Committee on Environment and Public Works. (text of measure as introduced: CR S6997-6999)
May 22, 2003
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Introduced in Senate
May 22, 2003
Sponsor introductory remarks on measure. (CR S6995-6997)
May 22, 2003
Read twice and referred to the Committee on Environment and Public Works. (text of measure as introduced: CR S6997-6999)
May 22, 2003
Floor Debate
22 membersWhat members said about S. 1115 on the floor
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Floor Debate
22 membersWhat members said about S. 1115 on the floor
Madam President, this is one of the most important bills in many decades because this bill will determine whether or not 8,400- plus companies go into bankruptcy, with a loss of jobs, pensions, and…
Madam President, this is one of the most important bills in many decades because this bill will determine whether or not 8,400- plus companies go into bankruptcy, with a loss of jobs, pensions, and opportunities for people all over this country--and all because of an out-of-whack tort system that has been manipulated by some veracious lawyers who should know better but who are too addicted to being able to milk the system for billions and billions of dollars, $20 billion thus far in legal fees and transaction costs.
Opponents of this bill continue to assert that the fund is nothing more than a bailout of corporate America because it is not big enough. There is one word for that: baloney. This charge, which the personal injury lawyers keep repeating in television and print ads, completely baffles me. Let me explain why.
Currently, estimates of what the existing tort system will pay to plaintiffs in the future range from $61 billion to $92 billion. That is currently. This is what the independent actuaries say is the amount of money the victims will actually receive under the current system.
Let me just point to this chart: the asbestos victims' compensation in billions of dollars. Under the tort system--the current out-of-whack tort system--you have three colors on the chart: dark blue, kind of light blue, and yellow. The light blue illustrates the fees we pay to the defense lawyers in these cases. The dark blue happens to consist of the fees we pay to the trial lawyers--in other words, the plaintiffs' lawyer.
Between them, as you can see on that Tillinghast account, shown at the top, you have $69 billion. How much goes to the victims? It is $61 billion--if it is there, if these companies do not go bankrupt. Take the Milliman one, shown down below: $61 billion to the personal injury lawyers, $42 billion to the defense lawyers. That is $103 billion. Only $92 billion goes to the victims. That is assuming these 8,400 companies have not gone into bankruptcy. We have already had 70 companies go into bankruptcy.
But look what happens under the FAIR Act. The attorneys would still get a whopping $2.5 billion for what really amounts to rolling-off-a- log type of a lawsuit because it would not take all the efforts they would have to put in to make cases otherwise in court. They would get $2.5 billion. But $111.5 billion would go to the victims. It is pretty hard to say that is not a fair deal or that it is a bailout of corporate America.
Now, our bill, in comparison to the $61 billion to $92 billion of those two actuary accounts that will go to the plaintiffs, gets them $111.5 billion, which is a lot more than either of those estimates were. This goes to the pockets of the injured persons.
So where does the rest of the expected cost of the tort system go? Under the current system, it is going to lawyers. It is going to lawyers' fees and other litigation costs, with personal injury lawyers alone expected to garner $40 billion of these future expenses. In addition, 80 percent or more of claims filed in recent years are from individuals who do not have a medically cognizable injury and are not impaired in their daily routine. Let me put that in lay terms. They do not have any injury that can be shown by the current medical analysis we have in existence today, and it is the best in the history of the world.
Indeed, one scholar estimated that meritless claims--claims without any merit at all--based on questionable ``diagnoses'' for mass screenings have accounted for $28.5 billion in costs already. As a result, the truly ill get even less than the $61 billion to $92 billion estimate that is suggested by these two studies.
Measured against the existing system, with all of its inequities and high transaction costs, the FAIR Act will deliver far more directly to victims. Up to $124 billion will be available to compensate those who are sick from asbestos while still providing medical monitoring for those at risk but not yet impaired--in other words, not yet sick, and who may never get sick. This is a simplified, no-fault, nonadversarial system which will not require forking over 40 percent to 60 percent to any professional.
No matter how you look at it, victims get far more compensation under this bill--and in a far more timely manner--than in the current system. This alone indicates that the fund is big enough.
But let's look at it from another angle. Are the aggregate fund contributions by companies and insurers expected to be less than they are paying in the current system? According to the Congressional Budget Office, the answer is no. CBO estimates that defendants will have about the same expenses in the current system for the next 5 years. This is on page 20 of the CBO's October 2, 2003, cost estimate for this fund. On the same page, CBO estimates, for the bill as reported from committee, that insurers would actually pay more to the fund in this same period than they would under the current system.
Keep in mind, the current system is gouging billions of dollars for nonsick claimants. Look, this fund, No. 1, calls for about as much money as companies are paying now; No. 2, shifts this money to the truly sick; and No. 3, reduces the transaction costs so more funds are available to compensate injured parties. In other words, we help those who deserve to be helped, where under the current system there are a lot of people sopping up the funds that are there who are not even sick, who have not suffered from sickness, and may never suffer from sickness.
This is a bailout? Give me a break. The chief benefit contributors get out of this deal is one thing, and that is predictability. They know what their payments will be from year to year, and that is it.
I was told if I was able to get $108 billion a number of Democrats would gladly sponsor and support this bill. I had indications from the union movement: But, boy, if you got $108 billion on the table, we will be there. They did not think we could get it done. But we did.
Now, despite all of these things I have been talking about, we have heard the argument that the money is not enough since S. 1125 was first introduced in May of 2003 when industry agreed to a $94 billion fund. Before introducing S. 1125, I had heard from the other side of the aisle that $94 billion was not sufficient but that $108 billion might be enough, as I have just said. I worked hard to get the business community to commit to this funding, and, in the end, the Judiciary Committee added a provision that would simply require $14 billion in additional funds in order to reach this goal. The funds, however, were not guaranteed in the committee-reported bill, as are those under S. 2290.
During the committee process, this $14 billion was added to the substantial contributions required from both defendants and insurers. When S. 1125 was reported out of committee, therefore, it provided for $104 billion in mandatory funding from defendant companies and insurers, plus an estimated $4 billion from bankruptcy trusts. The $108 billion was there.
The committee voted by a 14-3 margin that the claim values which added up to $108 billion--those values--were fair--14 to 3, with a number of Democrats voting with us. Not a single Democrat voted against these claim values. The only ones who did were 3 Republicans, and they thought it was too much.
Now we are hearing that the total just is not high enough. If the values were good enough for every Democrat before, why not now? I just do not get it.
By the way, let's go back just a step or two here. As shown on this chart, we are getting far more money to the sick and needy than the two expert actuarial firms say will go to the sick and needy--far more money. Those who make arguments to the contrary are not being fair.
Later in the committee markup, to ensure the risk of insufficient funding would not fall on claimants, an amendment was offered by Senators Kohl and Feinstein to provide a huge amount of open-ended, contingent funding that could be available to pay claims, up to an additional $31 billion over a nearly 20-year period. The number $31 billion was not in the amendment, nor was the number $45 billion, which some claim it was. The amendment simply called for maintaining the contributions at the same level if such funds were needed to maintain solvency, and this flat line happened to add up to $31 billion, since we had already added $14 billion to the base funding. This meant when the contingent funding was added to the $108 billion of mandatory funding, up to $139 billion could come into the fund and ultimately out to the people.
Democrats and labor unions falsely continue to cite the $153 billion number whenever they can. I challenge any of them to show me that number in S. 1125, the committee-reported bill. Moreover, the $139 billion was not hard money that would be going to claimants. That is a fact. It was not hard
money that would be going to claimants. The fund under S. 2290 would reach this same and substantial level of funding.
Further rendering this $139 billion obsolete is the fact a sunset provision was added later in the markup. This provided an ultimate safeguard, in the eyes of those who filed it, for fund solvency. Still further, we added in S. 2290 a measure which renders the contingent funding amendment from the markup totally unnecessary--the ability for the fund to borrow against 7 years of future revenue. With this provision, the Feinstein-Kohl contingent funding measure is no longer needed. Thus the whole premise for arguing more money is needed because the committee bill had more money is literally destroyed. The Feinstein-Kohl amendment created what amounts to a rhetorical problem on the total value of claims for some Democrats and some labor unions. But it is only that, a rhetorical problem.
Claims values adding to $108 billion were good enough for almost all the Democrats at the markup, and there is no reason the current $114 billion now should be inadequate.
Finally, I will give another indication of why those who now argue $114 billion is not enough are being unfair, if not somewhat disingenuous. Back on April 24, 2003, the AFL-CIO asked an investment banking firm to run a financial model with certain claims values. How much did this model, which they shared with Republicans during negotiations, add up to? Believe it or not, under the base case, it added to $121 billion. You heard that correctly, $121 billion. We offer a fund with a base of $114 billion in guaranteed money with a $10 billion contingency, 7 times the borrowing authority, and a sunset back to the tort system, and there is no deal yet?
I said earlier, I don't get it. But I suspect the reason we are seeing retrenchment and revisionism is that--and there is simply no delicate way to say this so I will be blunt--when personal injury lawyers put the screws on Democrats and labor unions, they are trying to stop this good bill at all costs. It is pretty apparent if you look at the flagrantly misleading ads they put on television, all paid for by the victims, by the way, through these exorbitant fees and transaction costs.
I will tell you one thing, they don't want to kill the golden goose that asbestos litigation is for them. They are only too happy to collect the golden eggs, even though the people who are truly sick, truly injured, will not get the money in many cases. In the end imposing financial obligations on the business community that are much more than they would have to pay under the broken litigation system to compensate victims would only risk bankrupting even more businesses and losing more jobs and pensions. Already, as I have mentioned, more than 70 companies have gone bankrupt due to asbestos litigation, and as many as 60,000 American jobs have been lost. It is estimated if this keeps going and we don't do what we should do here on this floor, there could be as many as a half million jobs lost. I believe that is a low, conservative figure.
If most of these companies go into bankruptcy, I can't begin to tell you what a detriment it will be to our country, let alone the sick and needy who really deserve the moneys.
Rather than rely on their own numbers or provide a reasonable alternative, opponents of the bill falsely contend S. 1125 had provided $153 billion and, therefore, S. 2290 does not provide enough funding. Of course, litigating these cases in Federal court may be a big risk to some personal injury lawyers who have successfully manipulated some outlier State courts to create a system of jackpot justice.
In reality, the Feinstein-Kohl amendment in committee, which introduced the open-ended contingency funding, was designed to ensure the fund established under the act did not become another Manville trust, placing the risk of insufficient funding on future victims and leaving them with only pennies on the dollar. That is a risk which victims will not face under S. 2290.
If, despite paying significantly more money than the current tort system, the fund is unable at any point to pay full value; that is, 100 percent on eligible claims, then the fund will sunset and the tort system will reopen in Federal courts to compensate for future victims. There will be no risk to the victims.
We can't forget this bill is about the victims, not overinflated estimates of a broken tort system that diverts much-needed resources to unimpaired claimants and reduces awards significantly to pay attorney's fees and other transaction costs that do not directly benefit claimants. By any objective standard, this fund is more than adequately funded.
Although we are being met with obstacles in getting to the substance of the legislation, I am heartened by something. There has been significant bipartisan support for passage of a legislative solution to the asbestos litigation crisis throughout the session. In fact, calls for Senate action have been occurring for several years.
For example, when the esteemed ranking member was chairman of the Judiciary Committee, my good friend Senator Leahy stated:
. . . Congress can provide a secure, fair and efficient means
of compensating victims. I believe it is in the national
interest to encourage fair and expeditious settlement between
companies and asbestos victims.
Those were Senator Leahy's remarks in the September 25, 2002, U.S. Senate Judiciary Committee hearing on asbestos litigation.
Senator Leahy echoed his sentiments last year during a hearing I chaired, when he said:
These bankruptcies create a lose-lose situation. Asbestos
victims deserving fair compensation do not receive it and
bankrupt companies cannot create new jobs nor invest in our
economy . . . If we work in good faith toward a bipartisan
asbestos solution, we can meet the challenge created by
[asbestos] litigation. I agree with the Supreme Court's
conclusion that the number of claims defies ``customary
judicial administration and calls for national legislation.''
That was Senator Leahy's statement on March 5, 2003 in the committee hearing which was entitled, ``It is time for Congress to act.''
Other Members have made clear they share his opinions. For example, last May, nearly a year ago, Senator Dodd made the following observation:
[W]e are working very hard to come up with a compromise
proposal on the asbestos issue. And we've taken major steps
in that direction, working with organized labor, with the
insurance industry, with the insured, and many others who
have a stakeholding in the outcome of this particular avenue.
It's a critically important effort.
That statement was made on May 3, 2003. The distinguished Senator from Connecticut, Senator Dodd, reinforced those statements later when he noted on March 4, 2004, when referring to the asbestos problem:
This is a matter that does cry out for a solution.
As work progressed on bipartisan legislation establishing a privately funded national trust fund, support for the concept grew. In a July 2003 letter to Senators Frist and Daschle, Senators Dorgan, Breaux, Nelson, Baucus, Kohl, Miller, Lincoln, Levin, Stabenow, and Carper stated:
The asbestos litigation crisis is real and urgently
requires a legislative solution. . . . An administrative
trust fund is the right approach and represents a good
foundation for a solid legislative solution. . . . A
legislative solution to the asbestos crisis is a crucial
goal. . . . We believe that the groundwork has been laid by
the Committee leadership to provide a real solution to this
ongoing problem.
That was a July 11, 2003, letter to Senators Frist and Daschle.
In fact, when the legislation was originally introduced, Senator Nelson stated:
This will protect victims, save jobs, and force companies
to pay their fair share. This is a good start to solving a
big problem.
That was a press release on May 23, 2003. I have appreciated Senator Nelson's support over the last year. I don't know whether they can pull him back on this cloture vote on Thursday. But if they do, it would show this is becoming a political exercise to the detriment of these workers, to the detriment of these unions, to the detriment of the insurance companies, and to the detriment of these companies.
As last year progressed and fears grew that the legislative effort might fall victim to election year politics, calls for action intensified. For example, Senator Dorgan wrote the following in another letter to Senators Frist and Daschle:
We must complete asbestos reform before this session. I
think it would be a serious
mistake--for victims, for the economy, and for the Senate--if
we adjourned without enacting asbestos legislation.
Certainly, a compromise must meet the needs of all the
stakeholders. . . . We must seize this opportunity to solve a
major public policy challenge for our Nation.
That was written on October 29, 2003, in a letter to Senators Frist and Daschle. Yet, as you know, we were unable to get this up and get it passed last year. I agree with the Senator; it needed to be passed last year. To allow us to go past this year would be almost criminal.
His opinions were echoed by Senator Baucus, who wrote:
After all the hard work that has been put into this bill
over the past several years, particularly this year, it would
be a shame to let it go to waste. It would also have serious
implications for the economy and for victims if we let this
historic opportunity pass us by. . . . From what I
understand, we are very close. . . . I urge you both to do
everything in your power to bring both sides together for a
swift resolution of this longstanding debate.
That was before we have gone way beyond last year's bill, and we have given well over 50 amendments to Democrats to achieve this bill.
That was a November 5, 2003 letter.
On the same day, Senator Levin also sent a letter to Senators Frist and Daschle expressing his own concerns about the importance of the Senate taking action:
I would like to again stress the importance of addressing
the issue of asbestos reform before we adjourn this session
of Congress. . . . [T]he Senate is in jeopardy of missing a
historic opportunity to pass asbestos legislation with strong
bipartisan support. It is obvious to anyone . . . that the
system is broken and needs to be repaired.
That letter was dated November 5, 2003.
These were all written during the last year's session of Congress.
A week later, Senator Stabenow gave the following advice to Senators Frist and Daschle in a letter:
I believe that we have an historic opportunity right now to
pass asbestos reform legislation with strong bipartisan
support. . . . The current system has a devastating impact on
victims and their families, who have to continue to wait
while the judicial system wades through their claims, and on
companies, many who have had to file for bankruptcy because
of asbestos lawsuits. I urge you both to continue to work on
a bipartisan solution to this national problem.
That was in a November 13, 2003, letter.
Senator Leahy made the following statement on the floor a few days later:
. . . [W]e have come to a complete accord on the idea that
the fairest, most efficient way to provide compensation for
asbestos victims is through the creation of a national fund
that will apply agreed-upon medical criteria in evaluating
patients' injuries . . . an effective and efficient means to
end the asbestos litigation crisis within reach, and we must
grasp it.
That was a floor statement made on November 22 of last year. Unfortunately, time ran out before consensus could be reached.
At the urging of members on both sides of the aisle, Senator Frist announced in December his intention to accommodate Democratic requests for more time, and he announced he would delay floor consideration until this spring. This year, as negotiations continued in various settings, a call for action has continued. For example, on March 4, Senator Dodd noted the crisis in asbestos litigation is ``a matter that does cry out for a solution.'' That was on March 4 in the Congressional Record.
A few days later, Senator Reid acknowledged ``we have to do something about asbestos litigation.'' That was in the March 9 Congressional Record.
It would be impossible to argue there is an absence of bipartisan interest in fixing the asbestos litigation crisis. Nothing has changed since the Democratic leadership council made the following observation in 2002:
This is one issue where the fight is not simply a part of
the age-old struggle between companies seeking to avoid
financial responsibilities for misdeeds and trial attorneys
seeking to punish them while rewarding their clients and
themselves. We agree with Supreme Court Justice Ruth Bader
Ginsburg, who argued in an earlier case that the goal should
be to provide secure, fair, and efficient means of
compensating victims of asbestos exposure. We concur with the
view of the AFL-CIO that the current system is unfair and
unpredictable. Senate Judiciary Committee Chairman Pat
Leahy's decision to hold a fair and balanced hearing on the
asbestos litigation crisis should signal the beginning of a
bipartisan effort to create certainty in the system and get
help to victims without spurring new waves of bankruptcies.
That was in the New Democratic Daily on September 18, 2002, a year and a half ago.
These are some of the Democratic calls for reforms on this chart. I have on this particular chart quotes by Senators Dorgan, Breaux, Nelson, Baucus, Kohl, Miller, Lincoln, Levin, Stabenow, and Carper. In a letter, they said:
The asbestos litigation crisis is real and urgently
requires a legislative solution.
On March 4, Senator Dodd said:
This is a matter that does cry out for a solution.
Senator Dorgan wrote on October 29 a letter to the leaders:
We must complete asbestos reform before this session.
Senator Stabenow wrote on November 13:
I believe that we have an historic opportunity right now to
pass asbestos reform legislation with strong bipartisan
support.
Senator Leahy, on November 22, 2003, said:
An effective and efficient means to end the asbestos
litigation crisis is within reach, and we must grasp it.
Some of the statements I have quoted from my Democratic colleagues are listed on that chart. When viewing just a segment of these quotes, I think it is clear the need for reform is universally understood. The issues that must be addressed are clear. The time has come to act. We have worked our guts out to try to accommodate our friends on the other side. All we hear is: more money, more money, more money. It is as though these 8,400 companies have an unlimited supply of money to be given. In many cases, those companies are dramatically mistreated by this whole system. In many cases, they should never have had to pay a dime. I will cite one of the larger insurance companies in this country. They never, ever insured for asbestos or asbestosis, or any problem or malady that comes from asbestos; they never had anything to do with asbestos, other than they had their medical team do a medical analysis and concluded mesothelioma probably comes from exposure to asbestos. That was a service to society, not anything that should cause liability. Because of that, this company has been joined in over 60,000 cases, every one of which they can win and should win. The last one they tried, they did win, but it cost them $2 million for attorneys' fees alone.
That is money that could have gone to the victims, and just to get some finality to this situation, just to solve this problem, that company is willing to pay out what amounts to millions of dollars that they do not owe just to get this over with. There is a raft of companies that are in the lawsuits that fit that category.
Where is the justice on the other side? I admit, you want to fight for your constituencies--the personal injury lawyers and the unions-- but you also have constituencies, my friends on the other side, in these businesses that are going to go bankrupt and insurance companies that also are going to go bankrupt and the economy that is going to be tremendously hurt by this situation if we do not resolve this problem. We have a whopping amount of money to resolve these problems.
The issues that must be addressed are clear. The time has come to act. The asbestos litigation crisis is a national nightmare, and the failure of Congress to fix it would be a legislative disgrace.
I would like to show some charts with other calls for reform from labor unions and the media. Let me go into some of those.
Organized labor calls for reform. This is a statement of Jonathan Hiatt, general counsel with the AFL-CIO. This was made before the Judiciary Committee on January 25, 2002:
Uncertainty for workers and their families is growing as
they lose health insurance and see their companies file for
bankruptcy protection.
Mr. Hiatt is a very bright and noble attorney in many respects, and I have a lot of respect for him. What has the AFL-CIO done? We reached $108 billion which I had indications they would accept, but now we are as high as $124 billion. Where are they?
Take AFL-CIO Principles on Asbestos Compensation which was stated on August 7, 2002:
[U]nder current law and legal processes, many asbestos
victims are not being treated fairly.
In other words, the system is broken. Here we have a chance of changing the system. This is the art of the doable. And where are the trade unions? They are the ones that are losing the jobs. They are the ones that are primarily losing health care benefits. They are the ones that are losing their pensions from these companies that are going bankrupt. Where are they? Why aren't they demanding that our friends on the other side do something about this, other than scream for more money all the time. Stones can only give so much blood, and, of course, there is a certain irony in that statement.
Let's take the United Steelworkers of America, local 12773:
We really believe this needs to be resolved now.
Or take the Paper, Allied-Industrial Chemical, Energy Workers International Union, local 2-0891:
. . . we might not have another chance for some time.
They might not have jobs in the future because of this dragging of the feet we are getting from the other side on this matter.
Or take the United Steelworkers of America, local 7110:
It is too important to let pass by.
These sum it up. Let's take media calls for reform just so people understand.
The Pittsburgh Post-Gazette, September 25, 2003:
There is an elephant to be moved, and this is the best
chance in years. The time for Congress to act is now.
The Detroit News, April 4, 2004:
The bill makes economic sense for companies and would
ensure significant payments to employees who develop serious
illness. It's a humane solution and ought to be adopted.
That is the Detroit News, a heavily industrialized city. They understand this. Why the slowdown?
Take the Chicago Times, on June 16, 2004:
It is ludicrous to keep litigating for the benefit of the
litigators, when what is needed is a claims system for the
benefit of the victims.
That is what this bill does. It is a claims system for the benefit of the victims.
There is a whopping amount of money that will go to the victims, not to attorneys, although the attorneys still will get $2.5 billion of it, which is a lot of money.
Take the Washington Times on September 24, 2003:
. . . current legislation to control asbestos-related
lawsuits is one of the best ways Congress can protect jobs.
The current legislation.
Or take the Capital Times & Wisconsin State Journal on May 13, 2003:
An asbestos trust fund is a good idea. It should become
law.
Fund Could End Asbestos Legal Battles.
That is what this bill can do. Why don't we have more help from the other side?
None of these papers, with the possible exception of Washington Times, one would call moderate to conservative. Most are more liberal papers.
The Chicago Times, June 16, 2003:
The proposal . . . would get compensation to genuine
victims and get hundreds of thousands of cases out of the
regular court system.
That is one of the points I have not emphasized up to now. As a former trial lawyer, I have to tell you, our courts are clogged with all kinds of frivolous suits, all kinds of frivolous cases. I am not talking about these cases necessarily, but all kinds of them. Then you add these hundreds of thousands of cases, and one can see why justice is not being obtained, especially for those who are sick and needy.
I notice that my colleague from Washington is in the Chamber. I thank her and her staff for their good-faith efforts in working with us to reach consensus on an appropriate asbestos ban. I am pleased that we, including Senators Feinstein and Kohl, were able to reach bipartisan consensus on this very important issue. It is important.
Madam President, I ask unanimous consent that immediately following the remarks of the distinguished Senator from Washington, the distinguished Senator from Ohio, Mr. Voinovich, be recognized to give his remarks.
I yield the floor.
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I ask unanimous consent that immediately following the distinguished Senator from Connecticut, I be permitted to speak.
Mr. President, I have been interested in this discussion. It has nothing to do with asbestos, but nevertheless an important discussion. I have to say I have taken great interest in the education processes myself. The other side just thinks there is money growing on trees. Frankly, there is never enough money to satisfy them.
All of us wish we could do better. I wish every school district in the country would teach music because it softens kids' lives. When I was a young kid, I was born on the wrong side of the tracks. I was a tough little kid. My mother made me learn the piano for 6 months and then made me play the violin, and that made me even tougher, carrying that violin to school. I have to say that softened me and gave me a soft side to what some people think is a fairly tough guy. So I commend my colleagues for wanting to do more. But having Democrats call for more and more spending is a little bit like a glutton who has eaten everything on the table and now wants more.
There is no end of the spending that they would do, even if we do have a $1.2 trillion deficit. This President has all he can handle. There is no question about it. I commiserate with him. I also look at the outrageous costs of some aspects of higher education brought into discussion here, what a gravy train it is for some people in many universities, and how tuition has gone up so much to pay for the gravy train. It reminds me of the trial lawyers we have been talking about with respect to asbestos reform.
Mr. President, I wish to respond to some criticism some friends across the aisle have made regarding my comments about personal injury lawyers. In particular, I have been criticized for repeating in public on the floor of the Senate what many people are saying in private--that there is a political tie between many of these trial lawyers and many of my friends across the aisle. I don't think it is news that, as a rule, you will find that, all things being equal, most trial lawyers will likely support with their voices, and especially their wallets, the Democratic Presidential nominee and other Democrats across the aisle. They are the largest single hard money donors to the Democrats-- the liberal Democrats. It is hard to find any conservative Democrats, other than one I know of over there.
If I offended anybody by repeating in public a widely known dynamic, I guess I should apologize. I also recognize that I am unlikely to be the American Trial Lawyers' man of the year awardee. I am a member of that organization. I know a lot of great trial lawyers who are honest, decent, and do what is right in serving the American people. They know that when they are right, I am on their side. But in this case they are not right--the few who are abusing the laws.
Seriously, if in this debate I have sometimes come down too hard on personal injury lawyers, I have done so because I am concerned that what stands in the way of a much needed asbestos bill is the handful of overzealous, greedy personal injury lawyers--just a handful of lawyers in this country. I don't intend to malign personal injury lawyers as a class. I believe personal injury attorneys can serve and, in many cases, have served a vital function for many injured plaintiffs.
While I don't always see eye to eye with the personal injury bar, when I think they are right, I don't hesitate to say it and they know it. I had plenty of them thanking me for saying so when they were right during the discussion over the tobacco legislation in 1998. I was impressed with Richard Scruggs, or Dickie Scruggs, in the Castano group of trial lawyers. I think many trial attorneys played a constructive role in reaching a historic compromise with the tobacco industry. I helped them, and they know it. They were right and I backed them. Some in Congress held out for so much money that it was impossible to pass Federal tobacco legislation. The theme of some in Congress holding out for too much money is applicable to the asbestos debate.
In any event, the work that a gifted group of trial lawyers did with Mississippi Attorney General Mike Moore deserves a lot of credit. I supported their efforts publicly and even provided my support for reasonable compensation for those attorneys. I am not afraid to speak up for trial attorneys when I think they are right. I irritated people on my side who felt they should not get the compensation that I think they more than earned.
Frankly, as a former medical malpractice defense lawyer, I liked nothing more than to go up against the best plaintiffs' attorneys for the pure challenge of competing against the most skilled adversary. As a plaintiffs' lawyer, I liked nothing more than having gone up against the best defense lawyers in the country, having the thrill to be able to compete with them. In many cases, I would win against them.
We all have to recognize that the work of personal injury attorneys on asbestos litigation has dated back 30 or more years. Without the hard work of these lawyers, it is unlikely the U.S. would have come so far in responding to the dangers of asbestos. It is the success of the trial attorneys that put us in the position of recommending legislation that calls for a private trust fund to compensate asbestos victims without the need for each one to establish causation.
In short, personal injury lawyers have won the case, and they won it long ago. What this legislation is trying to do is sort out who pays and how much, and do so in a fashion that minimizes the transaction costs so that more of the money goes to the injured persons and less of the money gets swallowed up in litigation, and the courts can get unclogged, and so that other fairly brought litigation can be heard.
In compensating asbestos victims, we must be mindful not to corrupt more and more firms, which results in more and more job losses, and more and more loss of health care, and losing more and more value in retirement stock portfolios, and more and more loss of pensions. That is what we are trying to do here.
All I hear is whining from the other side. We have heard a lot of talk about how much the bill costs and how much it will pay out to victims. We heard talk about who pays, and how much, and whether they are paying enough.
If we ever get on the bill, we will hear more talk about these important issues, as we should. I have no problem with that. But they are filibustering even the motion to proceed. My gosh, when are the American people going to understand what is going on? They have filibustered virtually everything that has come up this year. It is going to take a supermajority to pass the simplist of bills the way they have been carrying on. It boggles my mind. But that is what is at stake in tomorrow's cloture vote.
Will we vote for cloture so we can talk about the issues on the bill itself? I hope we will proceed to the bill. But it shows the politics that are being played. For my friends on the other side to come on the floor and say this bill doesn't do enough, after we have given and given and given in to their suggestions time after time, or to say it is not procedurally proper or not written right, after 15 months of dedicated, hard effort--I have to say by a few Democrats, and by many on our side--it goes beyond the pale.
It is true that I have irritated some personal injury lawyers in some of my remarks. The ones I am talking about deserve irritation. I don't believe they are honest. I believe they are exploiting a system and taking moneys that should go to people who are sick. What
I am about to say may further irritate them and some of those across the aisle.
I have some important questions to raise with respect to attorneys' fees. Frankly, the issue of attorneys' fees is a key issue because it is critical in determining how much of the funds will actually end up in the pockets of the injured people. As I have said, today about 60 percent of the funds wither away to lawyers on both sides of these cases. You can expect that about one-third of any recovery will go to the plaintiffs' attorneys. In a no-fault, nonadversarial compensation system, there should be no place for the routine attorneys' fee level of one-third of the recovery.
Accordingly, in our bill, we employ the same fee schedule used by the Radiation Exposure Compensation Act, or RECA. In the RECA law--a bill I wrote and passed through this body a number of times--the lawyers' cut is 2 percent of the recovery in noncontested cases, and 10 percent for complicated cases. These cases are like rolling off a log if this is passed. Lawyers do not deserve 60 percent in defendant and plaintiff attorneys' fees, in addition to the transaction clause. The fee schedule results in the lion's share going to the injured persons and their families. This is the way it should be in the radiation exposure cases involving downwinders of nuclear tests, and this is the way it should be for asbestos victims. This is what is in our bill. It is a long settled way of solving these problems and a reasonable way that pays the attorneys what they should be paid--actually more, in many instances--but it stops the gravy train that is ripping off the sick and needy who have suffered from asbestos.
What is unknown is what our friends believe to be a fair level of compensation for personal injury lawyers in this new no-fault system. I ask today for our colleagues to come to the floor and tell us if they support or oppose our proposed attorneys' fees levels, if they believe our 2 percent for uncontested cases that are like rolling off a log, and 10 percent for those who might have some small contest, and they will still be like rolling off a log compared to litigation in trial. If this provision is not proper, please tell us how they would do it. We have not had the slightest suggestion from them.
If they believe it is still appropriate to retain attorneys' fees of 33 percent to 40 percent or higher, please explain why this is fair or necessary in a no-fault, nonadversarial system that this bill would make into reality. In the spirit of good faith, we agreed to move the program into the labor-friendly Department of Labor. The Secretary of Labor does not favor this. The White House does not favor this. I, frankly, do not favor this. I am afraid that will run the program into the ground because the Labor Department has been controlled by liberal bureaucrats for many years. But we are willing, in the interest of getting this done, in the interest of helping these people, to even do that.
Running a program to compensate workers out of the Department of Labor may be somewhat akin to voluntarily playing the Celtics in the Boston Garden. We made a genuine concession on the administrative process, as our colleagues know. We have repeatedly asked them to recognize it is appropriate for them to act in a spirit of genuine compromise with respect to attorneys' fees.
Let's face it, numbers are flying around in this debate. One way that the difference between our respective proposed level of total claims can be bridged is to reach agreement on the appropriate level of compensation for attorneys' fees. But we cannot even get them to talk about that. Even if we could, we could not talk about it because we are on a filibuster on the motion to even proceed to the bill. Once we go to the bill, we would have a filibuster on that, if we can ever get to that point, but at least we would be able to be on the bill.
We believe the RECA, the Radiation Exposure Compensation Act, exposure level of 2 percent of noncontested cases and 10 percent for contested cases is both fair and reasonable because both cases will be easy for the plaintiffs or those who claim to be sick to get compensation if they are sick.
What do our friends across the aisle think about this? What are they proposing on this important issue? I ask they be specific so we and other interested parties can evaluate their position on this essential question. We have only been negotiating with them for 15 solid months, and we still do not have their suggestions. Yet they are saying: Oh, this is just too premature. That is after many of them said last year we should have gotten this bill done before the end of last year's session.
When is it going to end? When is this kind of phoniness going to end? A great deal of the difference in the compensation levels, in each of our respective levels of total compensation, in our bill it is $114 billion plus a $10 billion set of contingency funds, and in one widely cited Democratic claim values amendment $167 billion can be bridged by factoring in the share that can go to personal injury attorneys.
I do not want to cut them out from reasonable fees, but I do think $60 billion is unreasonable because that money comes out of the hides of the sick people. No wonder attorneys in this country are so looked down upon, especially personal injury lawyers. I happen to know about 90 percent of the ATL people are sick of this and sick of this 10 percent who are running wild taking advantage of the whole system and basically destroying the right of individual sick people to get adequate compensation.
This bill would take care of that problem. If the Democrats are advocating that the customary one-third of the award can go to the lawyers, then we are not that far apart as to how much money should go to injured workers and families. We should work together to see if we can agree on a reasonable level of compensation for these attorneys. I call them the Fred Barrons of this world and other personal injury lawyers who are bringing these suits in selected favored jurisdictions so they can get easier verdicts. I challenge them to come in and tell us what would be a reasonable level of attorneys' fees, and let's quit playing the game.
This is a no-fault, nonadversarial system that does not justify the type of attorneys' fees that have been ripping off the public, especially the sick, the weak, the feeble, and the injured the way the current broken tort system is. I have no doubt that public discussion of this issue may bring great consternation among the ranks of some of my Democratic friends due to their close relationships with many in the trial attorney bar. But if we are ever going to have a meaningful no- fault trust fund asbestos bill, we are not going to be able to guarantee and should not be asked to guarantee the usual one-third to 40 percent of the take going to the plaintiffs' trial lawyers regime. One-third or more going to the lawyers is simply too much, especially in a no-fault, nonadversarial system.
The unions should recognize this, and the public should recognize this, but most of all these lawyers ought to recognize this and quit ripping off the sick and the downtrodden and those who really deserve these moneys.
The silence of my friends across the aisle on this issue, both in private and public talks, is deafening. When we did the RECA bill, I was chairman of the Labor Committee. I fought that bill through for years until we finally were able to get it done. All these people are asking for more money for education, more money for all the social programs, more money for this, more money for that, and they were the ones who were giving us a rough time. Finally, after I was reelected, they then realized we better get on the ball and do something about this. That is how the radiation exposure compensation law, which is now followed by countries all over the world because of what we did, is now law, compensating people, not very much for the suffering they went through, nothing like we are going to compensate from the private sector, no way near what we are going to compensate here.
The silence of my friends on the other side of the aisle, both in private and public talks, is deafening. I heard some of my colleagues, who I respect, come on this floor with a straight face and say this is not the right way to do it, although last year it was. They were talking about this administrative approach is the right way to do it. Why isn't it the right way to do it during a
Presidential election year? I ask the people out there watching and listening, why is it they suddenly think this is not the right way to do it when we put up even more money before, giving in on at least 53 different amendments, have moved this into an administrative process in the Department of Labor that many on our side question? Why is it that they are still balking at this in this Presidential election year?
I think there is only one conclusion most people are drawing, and I hate to see that. I hate to see that. If they do not like this bill, they should offer a substitute amendment. Let's have it out. Maybe they will win. Maybe these 8,400 companies and 16 insurance companies will get clobbered even worse so they can barely survive, and some are still going to go into bankruptcy. They certainly will if some of these people with their outrageous demands get their way. It is time to stop talking generalities and start voting on specific amendments.
I want next to make a few remarks about the process that has been observed to date and why I will be very disappointed if we are not allowed to proceed to the bill tomorrow after the cloture vote. Just think about it; they are filibustering the motion to proceed. They could have easily given in just like that and said, No, let's go to the bill, and we will filibuster the bill. That would be the straight up way of doing it. But to filibuster the motion to proceed means they must be beholden to somebody to pull that kind of a procedural mechanism. That does not happen very often, and it should not be happening here.
Frankly, that we are being forced to vote cloture is disturbing to me and should be disturbing to everyone, although I do recognize if cloture is not invoked, it would be pleasing to these few trial attorneys who are milking this system dry at the expense of those who are sick and afflicted and downtrodden. They will not have to see if their customary one-third or 40 percent of representation in the asbestos claims in the new no-fault system can be justified on the floor of the Senate. That is just matter of fact and people need to know it. That is why I am here on the Senate floor.
I rise today in response, again, to complaints that I have been hearing from some Members on the other side of the aisle about being rushed to consider a national solution to this asbestos mess. As many of my colleagues know, the asbestos litigation crisis is not new to this body. We have been talking about the problem for the better part of a decade, but now that we find ourselves on the verge of considering a proposed solution, I am puzzled to hear that the process has somehow been unfair, that we are not acting as ``proper legislators'' for bringing this bill to the floor under the current circumstances.
I think anybody with brains would find these complaints devoid of any merit whatsoever, especially when viewed against the legislative history of this asbestos bill.
While we have tried to build consensus over the past 15 months, thousands of asbestos victims have gone uncompensated or left with only pennies on the dollars they deserve. Veterans and people like those in Libby, MT, are left with no one to sue. More than 70 companies have gone bankrupt and dozens more will soon follow.
Since we started working on this legislation, 60,000 jobs have been already lost at a cost of more than $2.2 billion in lost wages alone. Let me repeat these numbers so they can sink in. Sixty thousand jobs have been already lost at a cost of more than $2.2 billion in lost wages alone, and sadly another 400,000 jobs will soon be lost. Yet we still talk. There are compelling calls for action. There are empathetic expressions of compassion for victims. There are meetings and letters, promises of solutions to come and proposals to be made, and yet for all of this ocean of good intentions we are all still stuck.
Frankly, much of the current asbestos litigation is all too reminiscent of the mythical Jarndyce case from the Charles Dickens ``Bleak House.'' As my colleagues will recall, this was a case in which most of the estate was swallowed up by lawyers' fees and court costs.
One has to ask how and why we got to this point. In September 2002, when Senator Leahy chaired the Judiciary Committee, he held a hearing on the asbestos litigation crisis. I commend Senator Leahy for his efforts. The hearing was balanced. It was instructive, providing valuable evidence of the dire circumstances for asbestos victims, employees, companies, and insurance carriers. The judicial system and the American economy at this national embarrassment was left intact. That was a year and a half ago.
When I became chairman of the committee 4 months later, I immediately made it clear that I wanted to build on that record, draft a bipartisan legislative solution and pass it. Almost immediately, concerns were raised, warnings were issued: You are moving too fast, some said. The issue is not ripe, others advised. You better get it right, others still warned.
Two months later, on March 5, 2003, I chaired another hearing. Some of the same witnesses from before appeared again and the testimony made it abundantly clear that while the problem had gotten worse, there was bipartisan interest in the idea of creating a national trust fund. We heard solutions from a variety of perspectives--from academia, from business, from the unions, and from trial bar experts. I made clear I would incorporate any constructive proposals offered. I wanted a bill that would work. I wanted it to be a bipartisan bill.
As a result of hearing the magnitude of the asbestos problem, we worked toward drafting a bill that would create a national privately financed no-fault compensation fund for asbestos victims. As word spread about our efforts, warning flags were raised. Some in the minority on the other side of the aisle urged us to move slowly, not to rush; more time was needed; more talk was needed.
We finished drafting the bill and we shared it with others, both in the Senate and among interested shareholders. There was real interest and we were given several good ideas and suggestions. Unfortunately, for the first time the minority's caution chorus took voice: We're being rushed; we're being jammed.
This is the minority's caution chorus of worrisome lions. This is what we have been going through now for 15 solid months: Do not rush us; do not do this; do not do that; we must be cautious.
We were rushing them, we were jamming them; according to them; I was acting unfairly. All this drama was over a bill that I had not even introduced.
I had listened for hours and hours, worked with my colleagues on both sides of the aisle for days, weeks, and months. They asked that I delay introduction. They asked that I delay introduction so they could have more time to study the issue and my proposal, which I did. We had more meetings, more talk. I incorporated several of their ideas into the bill and asked if they would cosponsor it.
Now I am pleased that a few did. I am forever grateful to those on the Democratic side who did. There were two who did--two, after all this work. Fifteen months later, we are down to one. More said that it was not the right time. They were upset with the way I had shared my draft legislation.
On May 22, 2003, Senators Nelson, Miller, DeWine, Voinovich, Allen, Chambliss, Hagel, and I introduced S. 1125, the FAIR Act. The minority's caution chorus sang again. These miserable, cowardly lions sang again. They were being rushed. They were being jammed.
In truth, I introduced the bill 78 days after my hearing, 20 weeks after the beginning of the session, 6 months after the hearing of 2002. This was clearly no sprint.
On June 19, I held the first markup. Again, the minority caution chorus took over again and took voice. The issue was still too complex. The bill was too complicated. We were not doing it right. They were being rushed. They were being jammed. They asked for more time, and they were given it.
Unlike ever before, the committee's markup of the legislation was spread over 3 weeks, 3 solid weeks. We spent 4 separate days--not many bills take 4 days to mark up--considering changes, often working late into the night. We invited experts to sit with us as we worked through complicated medical issues. This was no sprint, no rush to judgment. There was no mad dash.
Interestingly, when there was engagement from the other side, agreements were reached. In fact, the committee was able to resolve what at the time was supposed to be the biggest impediment to reaching a consensus, an issue so fraught with partisan disagreement that it could never be resolved.
In the end, we accommodated scores of concerns raised by the minority and found a common ground on medical criteria that everybody, Democrats and Republicans, agreed to. It was a major victory. This bipartisan accord was achieved and the committee adopted it unanimously. This was one of the most ideologically divided committees in the Senate, some say the toughest committee in the Senate with those who are the most ideologically challenged, I should say, and I cannot disagree with that.
The next impossible hurdle was claims values. Again, I was told there was no way a group so divisive, so argumentative, so plainly disagreeable as the Judiciary Committee could reach an agreement on how much to pay victims. Now, despite the dire predictions, a bipartisan agreement was reached again. The committee adopted the Graham-Feinstein amendment on claims values by the whopping bipartisan vote of 14 to 3. Now I just want to mention to my colleagues on the other side that every one of the Democrats voted for that. Three of our Republicans thought it was too much money and they voted against it, and they may not have been wrong. The only problem is that we are way beyond that money today.
I might add that all of these negative votes were cast by Republicans who thought some values were too high. As my colleagues know, we are more moderate to conservative over here, and I cannot blame them for raising those issues.
On July 10, 2003, despite the constant wailing from the minority's caution chorus again, we reported the bill out of committee by a vote of 10 yeas and 8 nays and 1 abstention. We all knew more work had to be done before the legislation could be brought to the floor. We also knew there would be no bill unless there was a willingness on both sides to pass a solution to move towards the middle.
As summer turned to fall, there were sporadic attempts at additional negotiations involving committee staff, as well as among the leadership. Minor matters were resolved, but there was no evidence on the part of the minority's leadership of any real interest to engage in the kind of meaningful effort needed to finalize a bill. Individual members of the minority were very public about their interest in legislating, but those purportedly tasked with the negotiations did not possess the same zeal.
We have heard, for my whole 28 years, how much more concerned the other side is about people and their problems. Well, it does not take much to figure out their concern here is more about the trial lawyers and the personal injury lawyers who are involved, because they are sure not working hard, in my eyes, or I think anybody else who looks at it objectively, to find a way of helping those who are truly injured and hurt.
Now, while these efforts were making little progress, work was underway on another front beginning in August. Senator Specter began an intriguing, arduous mediation among the major stakeholders. That means the victims, the alleged victims, the trial attorneys, the personal injury lawyers, the insurance companies, the companies that have been sued, and companies that are about to be sued. He took on this job. I give him a lot of credit for it. He convinced Judge Edward Becker, former Chief Judge of the Third Federal Circuit Court of Appeals, to play a lead role as a negotiator, as a mediator, for which Judge Becker is eminently qualified. He and the judge forced the parties to spend dozens and dozens of hours together. We were there, so we do know.
We spent hours and hours, days, weeks, and months, arguing the positions and searching for a common ground. Senator Specter and Judge Becker should be commended for their Herculean efforts to keep the parties talking and, despite the objections of the representatives and the personal injury lawyers, there was progress--slow, incremental, but progress. The unions played a significant role. They were there virtually all the time.
However, we have never been able to satisfy them, even though their workers are the ones who are going to be hurt the most if this bill doesn't pass. They are the ones who are not going to get compensated because the moneys are being sopped up by personal injury lawyers and people who are not sick because these personal injury lawyers are going to jurisdictions that basically are out of whack, that really will not look at these things in a reasonable way and who basically find for whoever brings the case and find in huge amounts for people who are not even sick in many cases.
I compliment Senator Specter and Judge Becker. There has been some slow progress during that period of time.
During the fall, Senator Frist and I spent considerable time working with those who would be paying for the fund to ensure its solvency. It was imperative that the bill establish a steady and sufficient flow of moneys without allowing the fund itself to perpetuate the same kind of economic disasters caused by the tort system as a whole and by the tort system with regard to this type of case.
By the end of October, these issues had been completed and there was a renewed attempt to begin negotiations with those on the other side of the aisle, but every time an overture was made, the caution chorus was being rolled out: We are being rushed. We are being jammed. Every time it was rolled out by the other side of the aisle.
There was always some reservation; Things were moving too fast; There were other more important issues; They hadn't been asked the right way; They were being rushed; They were being jammed. The reasons changed but the result was always the same--no real negotiations. In fact, to this day we do not have a substitute or an offer by those who are complaining on the other side--to this day. We don't even have a monetary amount other than they have thrown out $170 billion, which everybody knows cannot be the number.
During my tenure in this body, I worked with my colleagues in the minority on a number of issues, on landmark drug legislation, the Hatch-Waxman Act, which gave life to the generic drug industry and saved consumers and our Government tens of billions of dollars since 1984. I worked with minority Members on children's health insurance, on childcare, on tax reform, job training. I have worked with them on issues involving crime, on legal reform, and a whole raft of other issues.
The Members of the minority are excellent legislators and skilled negotiators. They have insightful and creative staffs. I have worked with them when they wanted to pass a bill, and I know what it is like when they want to pass a bill. I have worked with them when they do not, and I know what it is like when they do not. I am telling you this is a time when they just don't seem to want to, because there has been plenty of opportunity to resolve this matter.
It is not hard to tell the difference. When there is a genuine interest in legislating, one of two things happens. A member of the minority leadership comes on at the outset and his or her presence and commitment helps to generate sufficient pressure on both sides to move legislation.
The second way, the minority offers their own version of the bill enabling both sides to sit down and work through the differences and craft a compromise.
Here there was no move by the minority's leadership and there was never, despite repeated and frequent requests, any interest by the minority in introducing their own solution. Instead, they chose to spend their time finding fault with our legislation and complaining about our process.
Another concentrated effort to move the bill was made in November, last year, and not surprisingly the caution chorus came out and began singing its song again: We are being rushed; we are being jammed, even though there were a number of Democrats who stood up and said they had to get this done before the end of this year.
Where are the real Democrats? That is what I would like to know. The pressure continued, however. Interested
stakeholders would not take no for an answer. Hints were made about bringing the bill to the floor, even if it resulted in a filibuster. Suddenly the message changed. Now we were told the minority's leadership wanted to find a resolution, that there was bipartisan interest in passing a solution. It was implied if we would just postpone consideration to early next year, there would be ample time to finish work on this bill.
The majority leader agreed and on November 22, 2003, he announced he would not bring up the asbestos bill prior to the end of the session. Instead, he would give the parties additional time to complete their negotiations. But he made clear his intention of bringing the bill to the floor this year.
His announcement was well received by the other side. I remember. As this year began, it was clear from the outset that, despite the promises of November, little had changed; there were no real breakthroughs. So, in February, the majority leader announced his intention to bring the bill to the floor the third week of April. But yet again the caution chorus rolled out its usual objections: The issue was too complex; the legislation was too complicated; they were being rushed; they were being jammed. Indeed, we even offered to engage in protracted negotiating sessions, but again the Democrats demurred.
In February, my staff sent an e-mail to Democratic staffers proposing a multiday negotiation to seek a resolution of the issue. It contains an offer to meet during all-day sessions, ``during recess weekends, or weekends during session.''
The response from the minority was unambiguous: Don't rush us. Don't rush us.
Senator Specter, to his credit, kept pushing forward and, as a result of his efforts, the stakeholders reached agreement on what was supposed to be another impossible hurdle, the administrative structure, which I mentioned earlier.
The proposal was not to our liking. It would require a fundamental change in our position, allowing the fund to be run out of the Department of Labor, but because organized labor signaled its strong support for this change and because we wanted to reach consensus on other critical issues remaining on the bill, we agreed and we agreed despite the objections from many on our side of the aisle and in spite of the objections from the White House.
The minority, instead of accepting this concession, instead of endorsing this considerable victory for organized labor, made it clear that this significant agreement meant nothing more than a chance to bank an advantage. They offered no alternative. They revealed no new proposal or compromise. In fact, it is reminiscent of the style of negotiation that says: What is mine is mine; what is yours is negotiable.
Nonetheless, additional proposals were made but there was no counteroffer, none of the typical give and take that is the hallmark of serious negotiations in this most important legislative body in the world. It was like trying to play tennis with a curtain. There is never any meaningful discussion of what the payers, the ones who have to pay these bills, most desire and, frankly, they deserve: a fair and predictable payment schedule.
Whatever we do is going to be tough on the payers here. This bill is plenty tough on the payers. Don't think they are not squealing; they are.
It was now obvious even to the most optimistic Member of this Chamber that it would be impossible to bring a consensus bill to the floor, one supported by the leadership of both parties. We are hearing Senator Leahy has at last put together an alternative proposal on this national trust fund. Has it been introduced? Have we even seen it? Of course not. The only choice left was to bring a bill to the floor and hope enough Members of the minority thought the issue was of sufficient importance, as they have repeatedly said, to allow the Senate to consider this bill.
To help facilitate discussion, I introduced, with Senator Frist and Senator Miller from the other side of the aisle, S. 2290, a second version of the bill which incorporated many significant changes that have been made since the legislation was first introduced and first reported from the committee.
That is the legislation before us today. It contains the bipartisan agreement on medical criteria. It contains the agreement reached by the stakeholders on the revised administrative structure and numerous other changes adopted during the Specter negotiations that have all been to try to get the Democrats to move on this bill. It contains the handful of changes agreed to by both sides since the bill was reported out of committee. It also contains higher claims values passed by an overwhelming bipartisan vote of committee and incorporates yet another monumental change and another fundamental concession to address the complaints by the minority.
We have included provisions in the bill to make clear that the risk of insolvency will not be borne by the asbestos victims; it will fall on the defendant companies and their carriers. If there are insufficient moneys, the fund will terminate and parties will return to the tort system--to Federal courts. There is no point in sending it back to the State jurisdictions that created the asbestos crisis in the first place.
Here we are today. The time has come to act. The day of decision has arrived. Unfortunately, to no one's surprise, the caution choir is on its feet again, or somewhat on its feet, I guess I should say: They need more time; the issues are too complex; the bill is too long; they weren't consulted the right way; they were being rushed; they are being jammed.
I was told by many at the beginning of last year that when I embarked on this legislation the Democrats would simply run out the clock. They will never let us vote on a bill that could deprive them of their huge cash cow.
First, Democrats would push into the election year, they said. Then they would filibuster a motion to proceed. That is exactly what has happened so far in their zeal to make sure that their hard money donors get their way at least this year--an election year. It is not too late to change that.
Let me just say that the caution chorus is sounding like a broken record that needs to be shut off. It has been 333 days since S. 1125 was introduced.
A hundred years ago, it took Christopher Columbus only 222 days to discover the new world and return to Spain--one of the most remarkable discoveries in the history of the world. It took Neil Armstrong only 8 days to travel to the Moon and back. Our forefathers were able to write the U.S. Constitution in only 4 months. But somehow there hasn't been enough time for the minority to help write this bill although they have had a lot of say and have had a lot of concession. We have tried to do everything to bring them to the table and get things done. Here we find ourselves in a filibuster on the motion to proceed.
This caution chorus of cowardly lions reminds me of what is going on. Of course, there was one big difference. In those historical examples, the players actually wanted to finish. They actually wanted to discover an America. They actually wanted to go to the Moon.
Over these 333 days, we have had numerous congressional recesses and holidays. Just look at this. Over 333 days, and we are now under a filibuster. That comes from the Spanish word ``filibustero,'' meaning pirating or hijacking. It is just one more obstruction. We have had nothing but obstruction since George Bush has become President of the United States--over and over. There have been very few bills passed, and the ones that have passed have had to overcome the obstructionism. My goodness. There are some Democrats who have been willing to overcome obstruction, but on this one, it has not been brought to conclusion.
We have had one entire summer, the fall, winter, and we are quickly working our way through spring. How much more time is needed to sit down and get this matter resolved? The time has come for the minority to stand up and be counted.
If they are genuinely troubled by our proposal and all the agreements we have reached with them, they have an obligation--indeed a responsibility--to offer their own solution. The challenge is on them. Introduce a bill. Make sure it strikes the same balance demanded of us. Make sure it is fair in the way we have tried to make it fair. Make sure it provides adequate moneys for asbestos
victims. Make sure it provides compensation quickly, efficiently, and fairly. Make sure it does not reward the unimpaired, those who aren't sick. Make sure it is not hijacked and turned into a smokers' compensation fund. Make sure it does not bankrupt more companies and throw hundreds of thousands of Americans out of work and out of their health plans, their pensions, or wipe out their lives financially.
That is what is going to happen. For the life of me, I can't understand why many in the trade union movement aren't jumping on this bill in every way they possibly can because their employees are the ones who are getting hurt. They will never get the money we have in this bill if we don't pass a bill.
Make sure it doesn't stick the Federal Government with a bill at end of the day.
Now you on the other side of the aisle have claimed that the asbestos crisis must be fixed. You have all agreed there is a crisis in our country. You have conceded that the tort system is broken, that we have a historic opportunity to act. The end is within reach, and we must grasp it.
But here we are. I think the time has come to act, to make good on the promises which have been made on the other side of the aisle, to demonstrate the leadership and responsibility our Nation demands when we are asked to do our job to fix a national crisis. It is time to move past our alleged mistakes and complaints about perceived procedural insensitivities.
It is time for the caution choir, which we have been looking at here today, to quit singing ``We are being rushed; We are being jammed.'' It is time for the real interests to take a stand and to do what is right.
It is getting late in the day to appoint another committee and schedule more meetings and talk. It really bothers me that they are filibustering the motion to proceed, which has only been used on rare occasions before the last few years, before the obstructions that have been occurring on a regular basis. People in the past were willing to debate these bills and were willing to try to amend them if they didn't like them, willing to be legislators and not obstructionists, willing to do what is right for the American people.
We have now been on this bill 15 solid months and we still have not seen, other than demands during negotiations, what our friends on the other side must have to resolve this problem, which in many respects is the most dangerous problem hanging over America today, especially for employees, especially for union members, especially for those who want health care and who want their pensions to be saved, especially for 8,400 companies on the one hand, and maybe more if these voracious personal injury lawyers continue to conjoin people who really have had nothing to do with asbestos but have been conjoined in these actions where they are stuck with humongous defense costs and attorneys' fees themselves, so the moneys that would go to the sick and the needy, those who really need it, go down the drain of legal fees, clogging our courts so that other legitimate cases can't be brought.
Again, I will return to that message. Why is it that we are going through this type of chorus charade? Why is it that we haven't had more cooperation? Why is it that we can't get them to come up with what is needed to resolve this morass? Why is it during this election year?
All I can do is ask the question. I think anybody observing knows what the answers are. At least that is what has been alleged to me. That is what has been suggested. I hope it is not true.
I yield the floor.
I thank my colleague for his kind remarks. I appreciate the hard work the Senator and others have put in on this side. There are some on the other side who have worked hard. Particularly, I express my gratitude to Senator Miller, Senator Nelson, and Senator Feinstein. I understand Senators Nelson and Feinstein are probably going to vote against cloture. I don't know. I cannot speak for them. I hope not. They are two who have tried to work with us on this bill.
If that is laid down, I don't know where we will go. I am afraid an awful lot of people will be left high and dry while these trial lawyers, the personal injury lawyers, walk off with $60 billion in fees and costs that could go to people who are sick. I don't begrudge attorneys the fees they earn. We have more than made a case that the system is broken. There are a certain limited number of personal injury lawyers who are taking advantage of the system and doing it in ways that are reprehensible.
Madam President, I ask unanimous consent that during today's session of the Senate Senator Harkin be recognized for up to 15 minutes as in morning business; Senator Byrd for up to 40 minutes as in…
Madam President, I ask unanimous consent that during today's session of the Senate Senator Harkin be recognized for up to 15 minutes as in morning business; Senator Byrd for up to 40 minutes as in morning business; and Senator Inhofe for up to 30 minutes as in morning business.
Madam President, I rise today to share my serious concerns with the asbestos liability bill now before the Senate. As my colleagues know, this is not just another bill for me. This is something I spent years learning about, educating my colleagues about, and writing legislation to address.
In fact, my work on asbestos started 3 years ago this very month when I asked the Senate HELP Committee to hold a hearing on asbestos exposure in the workplace.
I started this as a very lonely battle with my good friend, Senator Paul Wellstone. We held press conferences, and it seemed like no one came. Senator Baucus and Senator Cantwell were with us, but it was a very lonely fight.
That is why today it is so great to watch my colleagues, such as Senator Daschle, Senator Reid, Senator Dayton, and Senator Leahy moving this discussion to such a productive level. They have taken the time to listen to the victims, and I think if everyone did, we would have a much more balanced bill in front of us today.
I am pleased that after working all these years with the victims, family members, and doctors, the full Senate is now engaged in a debate about asbestos. I am also pleased that many of the issues I have been fighting for have been included in this legislation. This bill does include a modified ban on asbestos, similar to the original ban that I first introduced 2 years ago. That is an important acknowledgment of what I told the Judiciary Committee did last June:
If Congress is going to prevent any future lawsuits, then
Congress must try to prevent any more asbestos casualties, by
banning the use of asbestos.
So I am pleased by some of the progress in this bill, but I am also deeply disturbed by what this bill will do to people whose lives have been torn apart by asbestos, to future victims, to family members, and to average Americans who are being exposed to deadly asbestos every day without even knowing it. After listening to the victims, hearing their stories, looking them in the eye, there is no way I could vote for this inadequate and unbalanced bill today.
As I have learned about asbestos over the past 3 years, I have been troubled by the duplicity of some of the companies, by the negligence of our own Government, and by the absolute horror that asbestos inflicts on people. Throughout this process, I have also been touched by the commitment and the optimism of victims. Some of them realize it is too late for them, but they want to make sure no other American goes through the horror they have experienced.
After working with them, I know I am not just standing on the Senate floor as a single Senator. I am standing here on behalf of all of the people I have been honored to meet and stand with over the past 3 years.
I am standing here on behalf of people like Brian Harvey, Gayla Benefield, Bret Williams, Ralph Busch, Marv Sather, and George Biekkola.
They were all exposed to asbestos through no fault of their own.
I am standing here on behalf of the family members of asbestos victims, people like Sue Vento, the wife of the late Congressman Bruce Vento of Minnesota; Sue Harvey, and LTC James Zumwalt, the son of Navy hero Elmo Zumwalt.
I am standing here on behalf of doctors who have labored to save their patients against a merciless killer, doctors like Michael Harbut, Alan Whitehouse, and Harvey Pass who not only provided medical care but worked to raise awareness and call for needed research.
I am standing here on behalf of public health leaders like Dr. Richard Lemen, a former Assistant Surgeon General of the United States; Dr. Phil Landrigan, and people like Andrew
Schneider and Barry Castleman who have worked to warn the public about these dangers.
I am standing here on behalf of researchers and advocates, people like Chris Hahn of the Mesothelioma Applied Research Foundation and advocates at the Environmental Working Group.
All of these people have stood with me at press conferences and have testified before Senate hearings, calling for us to help the victims and to ban asbestos. We have a real obligation to them.
I am standing on the Senate floor today to make sure the Senate does right by people who have been wronged.
Let me share one of their voices with my colleagues. In July 2001, the HELP Committee held that hearing that I requested on workplace safety and asbestos exposure. One of the witnesses was Mr. George Biekkola of Michigan, a World War II veteran and a community leader who helped bring a hockey rink to the children of his community.
Those of us who were at that hearing 3 years ago will never forget what he said. He broke down several times as he read his statement, but his message was clear. He told us he had spent 30 years working at the Cleveland Cliff Iron Company in Michigan. He operated a hard rock drill and was exposed to asbestos dust. He was forced to retire at the age of 60 because asbestos had scarred his lungs and reduced his lung capacity by one-third. At that hearing, he told us:
I thought I'd be spending my retirement traveling out West
with my wife, hunting deer up in the mountains. But today I
can't.
He said he could not exert himself because his heart was weak and that he had to be careful because a simple case of pneumonia could kill him. He told us:
This isn't how I thought I'd be spending my retirement, but
when I think about the other guys I worked with--I guess I
came out lucky.
He said:
I'm here today to tell you my story so that maybe someone
else working in a mine or a brake shop or a factory won't
lose the things I have lost.
He concluded his statement with these words:
Senators, please make sure that what happened to me won't
happen to anyone else. . . . Workers like me are counting on
you to protect us. Please don't let us down.
I am sad to report that George Biekkola died 2 weeks ago today from asbestosis and mesothelioma. Until the end, he was looking out for other victims. In fact, at his funeral last Saturday his family displayed a photograph of him testifying at that Senate hearing.
George is not with us today, but his words ring as loudly now as they did 3 years ago: Senators, do not let us down.
That is why I have been working on asbestos for the last 3 years and that is why I cannot support this inadequate bill. After all the things that Americans like George Biekkola have been through, after all they have lost, after all their families have lost, after all they have done to protect others, I will not let them down, and that is why I cannot support this bill.
Before I turn to the specifics, I want to put this discussion in context. For decades we have been pumping this poison into Americans, on purpose and by accident. It has wrecked lives, families, and fortunes, and it has been a problem for many businesses. Asbestos is everywhere, and it is killing us. We have to stop putting this killer in products. We have to stop importing products that contain asbestos. We have to figure out a way to make whole everyone who has been affected by this epidemic, and we need to do it in a balanced way that gives certainty and equity to both victims and to companies.
This process has been an education for me because like many Americans I thought asbestos had been banned a very long time ago. In 1989, the EPA did try to ban asbestos, but that effort was overturned in a lawsuit from the asbestos industry. Ten years later, in 1999, reporter Andrew Schneider and the Seattle Post-Intelligencer published articles about a disturbing trend in a small mining town of Libby, MT. Residents there are suffering from extraordinarily high rates of asbestos-related disease. At many plants where vermiculite from Libby was processed and then shipped, waste rock left over from the expansion process was given away for free. I learned that people used this free waste rock in their yards, in their driveways, and in their gardens.
This picture that I have with me today is Justin and Tim Jorgensen. They are climbing on waste rock that was given out by Western Minerals, Inc., in St. Paul, MN, some time in the 1970s. According to W.R. Grace records, this rock they are playing on contained between 2 and 10 percent temuline asbestos. This rock produced airborne asbestos concentrations 135 times higher than OSHA's current standards for workers.
We need to do right by Justin and Tim, and those are the people I think about when I look at this bill.
I learned, in fact, that our country is far behind others. The United States remains the only industrialized country besides Canada that has not yet banned asbestos. More than 30 million pounds of asbestos are still today right now consumed in the United States each year. I learned that asbestos is still found today in over 3,000 common products in the United States, including baby powder, cosmetics, brake pads, pipes, hairdryers, ceiling tiles and vinyl flooring.
It is still legal in 2004 to construct buildings with asbestos cement shingles and to treat them with asbestos roof coatings. It is still legal today to construct new water systems using asbestos cement pipes imported from other countries. It is still legal today for cars and trucks to be made and serviced with asbestos brake pads and linings. Workers in this country are still being exposed to dangerous levels of asbestos. According to OSHA, an estimated 1.3 million employees in construction and general industry face significant asbestos exposure on the job today. Asbestos, in fact, has taken a particularly large toll on the people of my State.
According to a recent report by the Environmental Working Group, King County has the fourth highest number of deaths related to asbestos in the country. Three other counties, Kitsap, Pierce, and Snohomish, all rank in the top 100 for asbestos-related deaths. Overall, Washington State ranks eighth in asbestos-related deaths nationwide. Just last week in Spokane, WA, our State department of health announced that 100 former workers at a vermiculite factory likely inhaled deadly asbestos fibers and should seek advice from their doctors. They also warned that children and spouses who lived with those workers could become ill from particles that were carried home with the loved ones on their clothing, on their hair, and their skin.
Given the known dangers of this mineral, we should all be asking why are we still using it? Why are we still adding it to products on purpose where there are perfectly acceptable substitutes? Americans in every walk of life and in every corner of this country have been exposed, and we have to protect them. That is why I have worked to do a series of things over the past few years.
On June 18 of 2002 I introduced the Ban Asbestos in America Act. I reintroduced that bill again last May as S. 1115.
I do thank all the Senators who have cosponsored my bill: Senators Baucus, Boxer, Cantwell, Daschle, Dayton, Durbin, Feingold, Feinstein, Hollings, Jeffords, Lautenberg, Leahy, and Reid.
I have pushed the EPA to warn homeowners about the dangers of Zonolite insulation, which today is in the attics of as many as 35 million homes, schools, and businesses.
I have urged the EPA to warn brake mechanics about the deadly asbestos dust they are exposed to on the job today.
I have asked OSHA to increase its efforts to enforce existing regulations that attempt to protect automobile brake mechanics.
I have shared my concern with legislators in Canada, the country that is the largest source of America's asbestos imports.
I testified at a hearing on Libby, MT, and I testified before the Judiciary Committee last July.
Asbestos liability is a real problem. It is a problem for victims, and it is a problem for companies. We need a balanced solution.
Unfortunately, the bill that is before us today falls short in six ways. First
of all, it is unfair to victims because the awards are too small, even smaller than many would get if they were allowed a day in court.
Second, it could lock future victims out of getting help because the trust fund is inadequate.
Third, it keeps Americans in the dark about the dangers of asbestos. It does not include the education campaign that we know is needed and that I have been pushing for over the past 3 years.
Fourth, it falls short on research, tracking, and treatment for asbestos diseases.
Fifth, it makes family members jump through too many restrictive hurdles.
And sixth, it allows insurance companies to place liens on the awards family members receive, unfairly reducing the award they deserve, and treating them much differently than other Federal compensation programs.
Let me take a few minutes to discuss each of those in detail. First of all, as I said, the awards are too small. Many people who had their lives torn apart by asbestos will actually do worse under this bill than they would in court. For example, awards for lung cancer victims who have more than 15 years of exposure to asbestos are limited to $25,000 to $75,000, even though most of those victims will die within a year.
Victims with asbestosis who have lost 20 percent to 40 percent of their breathing capacity, many of whom will be disabled for life, will receive only $85,000. That is far less than their lost wages and medical costs. This bill gives them less than they deserve. At the same time, it blocks the courthouse door to victims who have staggering medical bills, lost wages, and other damages. I do not see how Congress can leave asbestos victims worse off than they are today, but that is what this bill will do.
Second, the trust fund is too small to compensate all the victims, but that is just one of the problems with this trust fund. I believe a successful trust fund will provide fair and adequate compensation to all victims and would bring reasonable financial certainty to defendant companies and insurers. To do that, the trust fund must include four things: Fair award values, appropriate medical criteria, adequate funding, and fast processing.
The system for processing claims must allow victims to get prompt payments, without the complications, time, and expense of a traditional lawsuit. Unfortunately, the trust fund in this bill falls far short of what is needed. I have already discussed how the award values are unfair.
In addition, the trust fund is not adequately funded. In fact, the trust fund in this bill has been slashed dramatically from the original Hatch legislation. In the Judiciary Committee's bill the trust fund was $153 billion. But in this bill we are being asked to vote on the trust fund has been slashed by over $40 billion.
Now, the trust fund didn't shrink on its own. It was reduced after closed-door negotiations that included only one side, the defendant companies and the insurance industry. It was not based on the actual needs of victims. Instead, it was based on what the insurers and businesses were willing to pay. This one-sided agreement reduced the funding provided in S. 1125 by more than $40 billion.
Making matters worse, an additional $10 billion in contingent funds does not become available for 24 years. The Senate should not adopt a policy of adjusting award values just to meet an arbitrary and artificial limit reached in a back room with only one side present.
Not only was this figure arrived at in an unfair way, but it is clear it is not enough to meet the needs of current and future asbestos victims.
The Congressional Budget Office has estimated the cost of this bill at $134 billion. This bill provides only $109 billion. So there is a significant shortfall already. But there is very good reason to believe this shortfall will be even larger. Recent claims in the Manville trust show much higher than expected claims for many asbestos diseases. Those claims also show that recent mortality and morbidity data increase the likelihood that the number of asbestos-related diseases and related claims will exceed current estimates.
If this fund becomes insolvent it will leave victims without the help they deserve and without the help they need. Because of that possibility, last year Senators inserted a number of protections during the Judiciary Committee markup. Tragically, very tragically, the bill before us today throws away all of those carefully crafted bipartisan protections.
For example, we had protections for victims in case the trust fund became insolvent. Those protections in the Biden amendment were stripped from this bill.
We had protections that guaranteed that asbestos victims would preserve their legal rights until the trust fund is operational. That is important because if this bill becomes law, it will end up in court and there will be no mechanism for victims and their families to get help while this law is tied up in court. We solved that problem with the Feinstein amendment, but again those protections were stripped from this bill.
So overall this trust fund is inadequate. If we are going to lock the courthouse doors to victims, we have to be 100 percent certain the trust fund will have enough money to cover all of the 600,000 current claims and the thousands more that may be found later. This is especially important because asbestos diseases have a very long latency period, often decades long, making it hard for us to predict today who will need help in the future. If we pass this inadequate trust fund, my constituents and hundreds of thousands of Americans will be left out in the cold with only the fading memories of their loved ones to carry them through this tragic ordeal.
My third concern with this bill is it keeps Americans in the dark about the dangers of asbestos exposure. This bill completely drops the education campaign that was in both of my asbestos bills. One of the reasons why asbestos takes such a deadly toll is because people are unaware that they're being exposed to it.
Ralph Busch, a constituent of mine, exposed himself and his wife to asbestos when he renovated his home. He never knew about the dangers until he happened to read a story in the Seattle Post-Intelligencer. Today, his dream house is abandoned, his credit is ruined, and his health is a constant worry. Ralph Busch didn't do anything wrong. He couldn't have known about the danger of Zonolite insulation. There is no way that Ralph Busch could have known that by buying and renovating an old house he would eventually expose his family to dangerous levels of asbestos.
We must make sure others do know about this public health risk by providing additional resources to educate the American public about the dangers of worksite and home exposures to products that contain asbestos.
We must also provide safety information to homeowners on what they can do to prevent asbestos exposures at home, particularly in the attic and basement.
In addition to homeowners, many workers are exposed to asbestos on the job. Often they are not aware of the danger, and they don't have the protective equipment they need.
I am heartened to hear that EPA, ATSDR and NIOSH are now proactively reaching out to consumers and workers to warn them to stay away from vermiculite attic insulation. But, I am very concerned that the EPA, prodded by a request from the law firm of the former acting agency administrator, is considering revising its ``Guidance for Preventing Asbestos Disease Among Auto Mechanics'' to convey the false impression that brake repair work is no longer a risk.
Clearly, any effort by the EPA to downplay these risks flies in the face of current congressional intent regarding the inherent health problems with exposure to asbestos in the workplace. I sincerely hope that EPA will not bow to the pressure of the industry and in fact strengthen its guidance for brake mechanics.
My fourth concern is that this bill does not do enough for research, tracking and treatment.
I want to thank Senator Hatch for including some modest resources in his latest version of the bill--which should be used to establish mesothelioma research and treatment centers around the country. Yesterday I was pleased to hear Senator Hatch say that he would be willing to explore additional funding for asbestos research and treatment
centers. These centers will be critical as the medical community works to develop new treatments and protocols for the variety of deadly cancers and diseases that exposure to asbestos brings to workers and their families.
Unfortunately, not included in S. 2290 are the resources needed to track the victims of mesothelioma and other asbestos causing cancers, and to conduct additional research about the harmful effects of this deadly material.
These are areas that doctors and other experts have told me time and again we must invest in. I heard from some of those doctors last month at a press conference I held, which Senator Reid and Senator Dayton attended. At the press conference, Dr. Bret Williams of North Carolina said, ``As a doctor, a cancer patient, a husband and father, I am asking my government to take a stand. Fix the problem. Give us hope. Fund a mesothelioma research program. Please invest in a cure.''
A surgeon from Detroit, Dr. Harvey Pass, told us that progress on asbestos diseases requires funding, and he said that funding, ``remains absolutely insufficient to set up the type of collaborative approaches that already exist with lung cancer, breast cancer, prostate cancer, and colon cancer.''
The fourth problem with this bill is its inadequate support for research, tracking and treatment of asbestos diseases.
My fifth concern with this bill is the way it treats family members. Under this bill, family members of victims will be forced to jump through an additional series of hoops, reducing the likelihood they will ever receive an award.
Let us remember that these family members have lost loved ones. In many cases they are vulnerable themselves because they came into contact with asbestos fibers through a family member. Take the case of Susan Lawes. Her father was a pipe fitter and was exposed to asbestos on the job. When he came home from work, asbestos fibers were still on his clothes. He would walk through the door after the end of a long day and give his daughter a hug. Last month, Susan was diagnosed with an asbestos disease. As she told me,'' I am literally dying because I hugged my dad.''
Susan and many people like her are not treated fairly under this bill. The children and the spouses of workers should not have to prove five years of exposure to asbestos from their husbands and fathers as they would under this bill. They also should not be forced to appear before a special Physicians Review Board in order to determine their medical condition and whether they are eligible for a compensatory award.
It is the same for people in Spokane, WA. Spokane is one of the 22 sites that EPA has determined is still contaminated. Why are we forcing these innocent victims of take-home asbestos exposure to jump through extraordinary hoops to determine their eligibility of an award?
My fifth concern is the unfair way this bill treats family members-- making them jump through hurdles that reduce the chance they will ever get the help they need.
Finally, this bill allows insurance companies to reduce any awards that victims actually receive--something that is not found in similar federal plans.
This bill allows insurance companies to place liens on the awards that victims and family members receive.
I find it unconscionable that health insurance companies and other entities can recoup their costs by placing liens on the awards family members receive in compensation for their loss of a father, a husband, a son or a daughter.
These workers were often the only breadwinners in their households, but this bill tells their surviving family members that they can be sued by their health insurance provider for a substantial part of an award--an award that as I've shown may already be inadequate.
What is especially disturbing is other federal compensation programs do not allow this type of action, but for some reason, asbestos victims are being given fewer protections. For example, the awards provided to victims in federal compensation programs like the Radiation Exposure Compensation Act, the Energy Employees Occupational Illness Compensation Program Act and the Ricky Ray Hemophiliac Relief Fund Act are not subject to liens by workers compensation insurers. I don't know why the authors want to treat asbestos victims differently, but I do know that it is not fair, and it's one of the reasons why I can't support this bill.
In the end, this bill falls far short of what victims deserve. The awards are too small. The trust fund is inadequate. It fails to educate Americans about the dangers of asbestos. It falls short on research, tracking and treatment for asbestos diseases. It puts unfair burdens on family members, and it allows insurance companies to reduce a victim's award.
I have been fighting on this for years, and it makes no sense that we could squander this moment with a bill that is so inadequate. George and Gayla and Ralph and Marv and Bret and Brian deserve so much better, and I will continue to fight for them.
Regardless of what happens with this bill, the one thing we must do is ban asbestos, and I assure my colleagues that I will keep fighting for that. I do want to pass a law. We need a real solution. I don't want companies going bankrupt. I don't want victims going without the help they need. I still think we can do it, and I will continue to fight for a balanced and fair bill that will do right by victims across the country. We have an obligation to them and their families. I have been fighting for them for the last 3 years. No matter what happens this week, I am not going to stop now.
I yield the floor.
The bill pending before us is known as the Hatch-Frist asbestos bill. Asbestos is a common material that those of us my age remember throughout our lives. It has been used in building materials,…
The bill pending before us is known as the Hatch-Frist asbestos bill. Asbestos is a common material that those of us my age remember throughout our lives. It has been used in building materials, tiles, insulation, coverings for pipes, and so many different uses. We used to view it as that fireproof material that was safe and, frankly, protected us. Over the years, we came to learn that it was much different. It turns out that asbestos is an insidious threat to public health. It is insidious, in that there is virtually no safe level of exposure. It is insidious in that it is a random killer. We know of workers who have been in the asbestos industry their entire lives and never once showed any problem--no illness, no symptom, nothing. We know in the same circumstances that many of these workers find that their wives have come down with serious asbestos-related diseases, even though their wives never set foot in their workplace. Puzzled by this, we started looking into it and found that even though the worker might not have been susceptible to asbestos-related diseases, his wife, who merely laundered his clothes, picked up enough dust in that process to end up infected, diseased, and destined to die. That is how it is such a random killer.
We also know, despite all of the compelling evidence about the danger of asbestos, that we continue to import massive amounts of asbestos each year in the United States. While we sit here and argue about how the companies responsible for asbestos-related disease and death should be held liable, when we talk about how victims should recover, the simple reality is that asbestos is alive and well and still to be found across America. New victims of asbestos are being created every single day by companies that know the risk and are willing to endanger their customers and employees for profit.
I don't have a lot of sympathy for those companies. They know the danger and they continue to use asbestos in some forms in a dangerous manner.
It is regrettable that the bill before us today did not go through committee. It is regrettable this bill was not debated. This is an extremely important issue. Twenty years ago, I was a brand new Congressman and I was invited to fly to Colorado right outside Denver to visit the national headquarters of Johns Manville Corporation. I didn't know why they wanted me out there 20 years ago, but they asked me to come out so I did fly out. I went to this beautiful headquarters, located outside of Denver in a magnificent building, and they told me they were having a problem with asbestos-related lawsuits.
At that time, in August of 1982, Johns Manville was preparing to file for bankruptcy protection because of the lawsuits being filed against it. At that time, if anyone suggested that 20 years later, in 2004, there would be over 70 companies facing bankruptcy, such as Johns Manville, including some of the Nation's largest manufacturers, people would have said that would be impossible. Certainly these companies still would not be sued like Johns Manville and they still wouldn't be selling asbestos products in America in 2004, would they?
The simple answer is yes. Those products continue to be sold. The people who were victims of those diseases continue to be discovered.
If anyone during the 1970s and 1980s had suggested that by the 21st century, the number of legal claims being filed for asbestos injury would have been rising instead of falling, those predictions would have been ignored. Yet, those predictions have all come true. Let me show you a chart to give you an idea of the incidence of asbestos-related disease in America. This is for 2002.
If you look at asbestos-related deaths here, you will find some 10,000 deaths. As I said, the number of deaths related to asbestos is on the rise in America. So there are only three other areas of death here that are larger in numbers: AIDS, of course, some 20,000 victims, almost twice as many; alcoholic liver disease, some 12,000 victims; firearm deaths, right around 12,000; and then asbestos. Then look at all of the other causes of death that claim fewer victims than asbestos: skin cancer, hepatitis, asthma, drowning, fires, Hodgkin's disease, and tuberculosis.
This is a serious public health problem in America. Asbestos is an ongoing environmental and health issue.
To better understand the true cost of asbestos, we need to recognize both sides of the litigation, not only companies facing bankruptcy but victims facing disease, debilitation, and death. From my experience talking with people, it seems most Americans were under the impression that asbestos has been banned.
I will tell you a story about that and let you know that didn't happen, at least it didn't happen on a permanent basis. Asbestos is still in buildings, schools, homes, offices, and workplaces--in automobiles. It is in and around 200,000 miles of drinking water
pipes that have been underground for 40 years and are now deteriorating. Sadly, very few of these items are being regulated by the Government. Why? Because there has been a systematic and long-term failure by the Government of this country when it comes to reining in asbestos use.
Senator Patty Murray from the State of Washington has a bill to which we need to agree. It is a bill which will virtually ban, permanently, asbestos and asbestos products in America with few notable exceptions-- where it is contained and can't be dangerous. Let me tell you the history leading up to S. 1115, the Patty Murray bill, which is so important.
In July of 1989, the EPA announced the manufacture and sale of most asbestos products would be banned. The decision came after 10 years of research and $10 million in spending. The EPA's ban was premised on authority granted to it by the Toxic Substances Control Act, and it was intended to stop the export of asbestos from America as well. The ban was instituted in three stages: a ban on roofing and flooring felt, tile, and clothing made from asbestos by 1990; brake linings, transmission components, and the like; and a ban on the use of asbestos in pipes, shingles, brake blocks, paper, and the like.
As predicted, a lawsuit was filed by asbestos companies and industrial organizations to challenge the EPA ban. The companies argued the ban was just too costly for industry and that alternatives to the use of asbestos were neither safe nor effective.
The EPA defended the proposed ban. However, it lost in the Fifth Circuit U.S. Court of Appeals. They said the EPA failed to demonstrate ``substantial evidence'' to justify the ban. Specifically the circuit court found the Agency's administrative record failed to show the ban was the ``least burdensome alternative'' for dealing with the unreasonable risk posed by asbestos. The circuit court did acknowledge that asbestos was a potential cause of cancer at all levels of exposure--underline all levels of exposure. There is no safe level of exposure to asbestos. If you think, just because you have a ironing board cover at home that gets hit by the iron as you are ironing your clothes, only a tiny bit of asbestos dust is floating around your house, be prepared to accept the obvious. It is dangerous at any level of exposure.
President Bush's father and his administration in 1991 would not appeal this decision by the Fifth Circuit, so since then, the EPA, unfortunately, has made no further effort to ban asbestos, and it is doubtful this administration in the closing months of this year will do so.
For those who are watching this debate, following it, I recommend a book that opened my eyes to the deep and sad history of the use and ongoing danger of asbestos. The book is called ``Fatal Deception: The Untold Story of Asbestos.'' The author's name is Michael Bowker. He talks about the hazards of asbestos discovered in the mining town of Libby, MT. You ought to read these stories about what happened to the unsuspecting miners and their families who worked for W.R. Grace and other companies, dealing with asbestos in Libby, MT.
He gives a detailed explanation of the dangers of the product, not just for the workers, as I said earlier, but also for their families. This book, and another called ``The Asbestos Tragedy'' by Paul Brodeur, are significant because they reveal the deep, dark, dangerous secrets of asbestos mining and manufacture.
Let me share a few examples. By the early 1930s, asbestos workers had developed asbestosis and were bringing lawsuits against Johns Manville--the 1930s, more than 70 years ago. The largest asbestos manufacturer--again, Johns Manville--and Raybestos-Manhattan of Connecticut, the second largest asbestos company, faced lawsuits. As a result, the two firms, together with other leading asbestos manufacturers, initiated a systematic coverup of the dangers of asbestos that continued for more than 40 years.
In 1933, Lewis Herold Brown, the president of Johns Manville, advised the company's board of directors that 11 pending lawsuits brought by employees who developed asbestosis while working at the company's plant in Manville, NJ, could be settled out of court, provided the attorney for the injured employees could be persuaded not to bring any more cases. That is 1933. The first asbestos lawsuits were being filed, the first notice being given to American business that they were dealing with a dangerous, toxic, lethal product.
In 1935, Sumner Simpson, the president of Raybestos-Manhattan wrote a letter to Vandiver Brown, of Johns Manville, telling him:
I think the less said about asbestos the better off we are.
Brown, in a followup letter, replied:
I quite agree with you that our interests are best served
by having asbestosis receive the minimum of publicity.
Is that corporate misconduct? Is that the kind of irresponsible conduct we would countenance today or even make excuses for? Or do it?
In 1936, Brown and Simpson, together with officials of other companies, arranged to finance animal laboratories at the Trudeau Foundation's Saranac Laboratory in New York. The studies showed significant numbers of animals developed asbestosis after being allowed to inhale it. These results were suppressed, made secret for more than 40 years.
The case goes on and on. Some of the things that were said during the course of events are nothing short of incredible. There is one in particular that is worth noting. On September 12, 1966, more than 30 years after the discovery of asbestos danger to factory workers and people exposed to it, E.A. Martin, the director of purchasing for Bendix Corporation, wrote to an executive at Johns Manville. This letter was disclosed in the course of a lawsuit from the director of purchasing for Bendix Corporation writing to Johns Manville about asbestos.
He says:
So that you'll know that asbestos is not the only
contaminant a second article from OP&D Reporter assesses a
share of the blame on trees.
Then he closed:
My answer to the problem is: If you have enjoyed a good
life while working with asbestos products why not die from
it. There's got to be some cause.
What an attitude when it comes to the workers and the consumers of asbestos products.
When we debate this issue with appropriate sympathy for the economic plight of many companies that are far removed from those I quote, understand we came to this moment in our history with the epidemic of asbestos-related disease and death because of clear and convincing corporate misconduct for 50 years. Businesses that knew better endangered and imperiled their workers and consumers with this product to make money. And the cavalier, if not demonic response, from people like E.A. Martin is proof positive of that worst example of conduct.
During the last Congress, in September 2002, Senator Leahy held the first hearing on the state of asbestos injury litigation. We considered what we could do. Senator Hatch has held a couple of hearings since then and moved the ball further along. We heard testimony from expert witnesses on both sides, a lot of different stakeholders being present. There is probably no issue in Washington that has received more attention from both sides.
Last spring, Senator Hatch introduced a bill as a starting point for negotiation. I was skeptical of the bill but told him I was willing to work with him and others in good faith to try to find a way to deal with the increasing number of asbestos-related lawsuits. I generally support the concept of a no-fault trust fund. If we can reach that moment in time where there is an adequate amount of money in a trust fund, where workers and others who have been exposed to asbestos can step forward, make their medical claim, and then receive compensation without lengthy litigation and expensive attorney's fees, this is a good result and a fine and positive thing.
I am sorry to report the bill before the Senate does not reach that level. I agree with many Illinois company representatives who have come to see me that they need certainty about their exposure to liability in the future. We can provide it as long as we have a bill that is fundamentally fair.
I also agree with the victims of asbestos injury and their widows, whom I have met, we need to come up with a quick and easy process to issue these
payments. We have an opportunity now to do it.
Leading up to last summer, I thought we were going to reach that point. But there were several things about Senator Hatch's original bill that we found out were problematic. The Hatch bill was designed to provide certainty to parties who, collectively, was only going to have pay into a trust fund about $90 billion. It did not provide certainty to the victims, only certainty to the companies in terms of their liability. Certainly, $90 billion is a lot of money, but when you look at the real cost we may face for asbestos-related claims in the future, it may not be nearly enough. We may need twice as much.
The committee finally increased the value of the trust fund in the Hatch bill to $153 billion. It is interesting that after we reported that bill, the insurance industry, one of the major players in supplying the money for the trust fund because of their ultimate liability, announced they would not support it because it cost too much. We have been hung up on this issue of how much to put in the trust fund.
There is also a question about what happens if we guess wrong. What if the trust fund does not have enough money? What if there are too many victims? What happens to those victims if the trust fund runs out of money? Don Nickles, a Republican from Oklahoma, fears from his point of view the Government will be asked to step in and replenish the trust fund with unlimited liability in the future. He is so skeptical of the amount of the trust fund in the bill pending before the Senate he announced he will oppose it. He does not think it will be enough for payouts and taxpayers in the future might be left holding the bag rather than the companies and insurance companies that are today responsible. That is a valid point to raise.
Claims values are another element. What is it worth? What if you have the worst possible asbestos-related disease, known as mesothelioma, which is a form of lung cancer which is ultimately fatal? What is it worth for you in terms of its value if you are an innocent victim of this mesothelioma? I will show some photos in a few moments of the victims. You will understand they are people, many of whom had no idea that exposure to asbestos was dangerous. What do you do if you were exposed to this asbestos and are in a situation where you end up with the disease or face a fatal situation at a later point? How much is it worth?
The question before the Senate on mesothelioma was whether $1 million is adequate. I can state the current litigation and current awards that are given in lawsuits are significantly larger, even after considering attorneys' fees. That $1 million might be a good value to a family if it did not take an attorney and years in court to reach that number, but we have to at least be honest that some of the valuations in the pending bill are not adequate.
This bill, since markup in the committee, has disappeared and reappeared, with Senator Frist and Senator Hatch working together. This was an arrangement, a compromise among the principals on the Republican side which did not involve any Democrats, to my knowledge, and did not involve any of those who were critical of the original bill. It was brought on a take-it-or-leave-it basis--again, with no hearing on the new bill.
The new bill, sponsors claim, will provide up to $124 billion, $57.5 billion from defendant companies, $46 billion from insurance companies, unspecified sums from existing trust funds. There is a concern as to whether that is enough money, as I mentioned earlier. This bill, though it is claimed to be the FAIR Act, may not be fair when it comes to victims and the recovery.
I am concerned with some of the statements made in the Senate. My friend, Senator Hatch of Utah, said in the Senate when he introduced the bill April 7th:
Some say--I think somewhat cynically--many of our
colleagues on the other side are not going to vote for this
bill because no amount of money is going to make them
satisfied because two of their major constituencies are
against the bill, and have been, so far, against any bill.
Senator Hatch went on to say:
Some have said they are afraid the personal injury bar will
not put up at least $50 million for John Kerry in this
election if they vote for the bill. Others are saying without
that money, they might not be able to elect John Kerry
President. I think that is a pretty cynical approach, of
course.
Let me say to my friend, Senator Hatch, that is an element of this debate which should have been left outside of the record. I don't think it is good to question the motives of either side of the aisle. We see this very contentious issue from a different perspective. But to suggest we are being driven by campaign contributions, I hope, is plain wrong. In my case, it is wrong and I don't believe we should raise that as part of the specter of this debate.
Let me say before I go into the victims' stories, we have an opportunity to do some good and to pass a bill creating an asbestos trust fund, but we need to adequately fund it. We need to also make certain pending settlements and awards are not extinguished by this new trust fund. We need to make sure the level of compensation for victims is adequate. We can do it. But we need to work on a bipartisan basis to achieve it.
Let me show a few of the victims that tell the story. This is John Rackow of Lake Zurich, IL. He grew up in Chicago, IL, and eventually moved to the suburbs. He is a businessman, married, with three kids. He worked for a lot of different companies and was involved in property development. He was athletic, very active. He started noticing shortness of breath. An avid golfer, his game was off. He went to the doctor and his doctor discovered he had mesothelioma, the worst form of asbestos-related lung cancer.
He did not want to believe the result. He went to a lot of different doctors for treatment and relief of the pain. But, unfortunately, he became so weak he was ultimately hospitalized. He became weaker by the day and passed away at the age of 64.
This gentleman shown in this picture is also from my home State of Illinois, former policeman Donald Borzych, of Tinley Park. He grew up in Chicago, IL. He attended parochial schools in the city and studied for the priesthood. Donald eventually chose to become a Chicago police officer.
While in school, he worked with various construction companies. You will find that a recurrent theme. Donald was handy with home and auto repairs.
After retiring, he and his wife enjoyed traveling and spending time with friends. Donald found himself tired and short of breath. He went to a doctor and was diagnosed with malignant mesothelioma. He went through numerous treatments but with no positive results. He was accepted to an experimental program and lost his hair. He has been in treatment for over 2 years.
I met with several widows of the victims of asbestosis and mesothelioma. One of those who really brought the issue home to me was the widow of my former colleague, Bruce Vento. Bruce was a great guy. He was a Congressman from the Minneapolis-St. Paul area. I served with him for 14 years in the House of Representatives. I saw him in the gym every morning. He thought a lot about his health and physical condition. He always worked out and wanted to be in good shape.
Then he started to feel pretty poorly. He went to the doctor, and he said: You have asbestos-related disease. You have mesothelioma. It turned out Bruce contracted this disease even though he did not smoke because he was exposed to asbestos as a youngman when he worked for a company that installed asbestos products at job sites.
He eventually succumbed and died from this disease. It was a great loss to the State of Minnesota and to the U.S. House of Representatives. I think Bruce Vento was a wonderful person. His wife Susan is also a wonderful person. Susan has now taken up Bruce's cause and is arguing for fair compensation for victims.
Let me tell you about a couple of others who may surprise you if you did not know they were victims of mesothelioma, asbestos-related disease.
ADM Elmo Zumwalt, Jr., graduated from the Naval Academy in just 3 years, yet ranked seventh in his class. He was the youngest person to ever serve as Chief of Naval Operations in the United States of America. He commanded the U.S. Naval forces in Vietnam. He was the one who crusaded to help those who were involved in exposure to agent orange after the Vietnam war.
In 1999, doctors found a tumor in the admiral's left lung. He was diagnosed
with mesothelioma, based on exposure to asbestos while serving in the U.S. Navy. He underwent a tracheotomy but only survived for just a few months.
Here is a rather famous actor from my generation, Steve McQueen. He died of mesothelioma. It turns out, as a young man he had been exposed to asbestos when he was working odd jobs in construction areas. And McQueen was one of these handsome, dashing heroes on the movie set who ultimately was reduced to a shell of a man by this crippling and debilitating disease.
I tell you this because I want you to understand in the course of the debate that it is not just the blue-collar workers who are the victims--and many of them are--but people who went on to high and lofty positions in life, whether they served in the U.S. Navy or became movie stars or went on to Congress, never knowing they were carrying within their lungs the seeds of their death, the asbestos-related fibers.
When we say we want to make certain that tomorrow's victims are going to be compensated, it is because we do not know how many time bombs are ticking in America today. I do not know if I have been exposed to asbestos. No one listening to this debate can possibly say whether they have been exposed to asbestos because it was so prevalent and was to be found in almost every place we turned.
So when we talk about having adequate funds in the trust fund for this to be a payout that is worthy of the disease and death that it has caused, I think it is not an unreasonable request.
Many say this debate this week and the vote is really just symbolic. Sadly, too many things around here have just become symbolism. There was no real genuine effort to hammer out a bipartisan agreement, no effort to compromise. We are being given this bill on a take-it-or- leave-it basis. Each of us will get up and say a few words about the bill. I obviously oppose it. But I sincerely hope, after it is defeated--I think it will be--we will sit down and talk about a trust fund that is fair to victims, a trust fund that is fair to companies. And I would implore those company representatives who come to see me, and their insurance companies, to come up with a dollar figure that is fair, that gives you some certainty about your future. That is what you tell me over and over is what you want. You want to know what your liability is going to be so you can plan for it. It is the uncertainty of the current system, you say, that makes it so difficult to stay in business. I want to work with you on that. I think a lot of the Members of the Senate do, on both sides of the aisle.
But bringing a bill with a take-it-or-leave-it number in it of less than $124 billion is not an answer.
Mr. President, I yield the floor. I want to personally thank you for staying. I did not realize you had a 7 o'clock appointment. I hope I can return the favor to you.
I ask unanimous consent the order for the quorum call be rescinded. Mr. President, all of us believe that the current system for compensating asbestos victims is not working well and that legislation…
I ask unanimous consent the order for the quorum call be rescinded.
Mr. President, all of us believe that the current system for compensating asbestos victims is not working well and that legislation creating a fairer, more effective process is needed. However, this bill, S. 2290, is not that legislation. In its current form, it does not create a system which will fairly and reliably compensate seriously ill victims of asbestos exposure.
This is not a balanced approach to the asbestos problem which comes from negotiations between business and labor. The bill reads as if it was dictated by the defendants solely for the benefit of the defendants. In fact, there have been no serious negotiations for months on the central issues fair levels of compensation for seriously ill workers, and adequate funding for the asbestos trust to make sure that injured workers actually receive what they are promised.
The only issue on which any progress has been made is the administrative structure of the compensation program. Senator Specter deserves great credit for convening a series of discussions on this topic involving both labor and business. However, as long as the compensation values are unreasonably low and the amount of money in the
trust is grossly inadequate, improving the way in which that money is distributed to individual victims cannot make an otherwise bad bill acceptable.
Since the Judiciary Committee voted out a bill in July, the process has moved backward, not forward. While I had serious objections to the committee-passed bill, the Frist bill is much worse. It reduces the funding level of the asbestos trust by more than $40 billion dollars-- $153 billion in the committee bill versus $109 billion in the Frist bill. They stripped out the major improvements we made in committee the two Feinstein amendments and the Biden amendment. They made a mockery of the committee process.
The bill before us does not reflect what is necessary to compensate the enormous number of workers who suffer from asbestos-induced disease, it reflects only what the companies who made them sick are willing to pay.
The Republican sponsors of this bill are insisting on compensation levels which are far below what these seriously ill workers deserve, and less than what they are receiving, on average, under current law. These are people whose health has been destroyed and, in many cases, whose lives have been substantially shortened, by asbestos induced disease. Shortchanging them would be extraordinarily cruel.
There is also no adequate guarantee in the legislation that sufficient funds will be available to fully pay all injured workers who are eligible to collect, even at the low levels of compensation in the bill. For injured workers and their families, this proposal is clearly worse than the current system.
The real crisis which confronts us is not an asbestos litigation crisis, it is an asbestos-induced disease crisis. Asbestos is the most lethal substance ever widely used in the workplace. Between 1940 and 1980, there were 27.5 million workers in this country who were exposed to asbestos on the job, and nearly 19 million of them had high levels of exposure over long periods of time. That exposure changed many of their lives. Each year, more than 10,000 of them die from lung cancer and other diseases caused by asbestos. Each year, hundreds of thousands of them suffer from lung conditions which make breathing so difficult that they cannot engage in the routine activities of daily life. Even more have become unemployable due to their medical condition. And, because of the long latency period of these diseases, all of them live with fear of a premature death due to asbestos-induced disease. These are the real victims. They deserve to be the first and foremost focus of our concern.
All too often, the tragedy these workers and their families are enduring becomes lost in a complex debate about the economic impact of asbestos litigation. We cannot allow that to happen. The litigation did not create these costs. Exposure to asbestos created them. They are the costs of medical care, the lost wages of incapacitated workers, and the cost of providing for the families of workers who died years before their time. Those costs are real. No legislative proposal can make them disappear. All legislation can do is shift those costs from one party to another.
Any proposal which would have the effect of shifting more of the financial burden onto the backs of injured workers is unacceptable to me, and I would hope that it would be unacceptable to every one of us. The key test of any legislative proposal on asbestos claims is whether, by reducing transaction costs, it will put more money into the pockets of seriously injured workers and their families than they are receiving under the current system. That should be our goal.
I believe that a properly designed trust fund to compensate workers suffering with asbestos-induced disease can move us toward that goal. To do so, it must use inclusive medical criteria which cover all workers who have sustained real injuries, it must provide fair levels of compensation for all workers who have been injured, and it must guarantee that all injured workers who qualify will receive full compensation on a timely basis. At best, this legislation satisfies only one of these three criteria.
Any proposal which would merely create one new large underfunded trust in place of the many smaller underfunded bankruptcy trusts which exist today is unacceptable. Injured workers need certainty even more than businesses and insurers.
One basic test of fairness is how a compensation system treats the most seriously injured victims. S. 2290 fails this test miserably. Those who meet the medical criteria for the most serious illnesses would still not be fairly compensated.
Mesothelioma is a horrible disease which is usually fatal. There is no question that it is caused by asbestos exposure. In the current system, mesothelioma victims often receive multi-million dollar settlements. This bill will limit them to much less.
The gravest injustice done by the bill is to lung cancer victims. We all understand how devastating lung cancer can be. The issue with lung cancer is causation. If a worker had substantial asbestos exposure and was a non-smoker, his primary lung cancer was almost certainly caused by asbestos. Yet the bill would pay these victims as little as $225,000. In many instances, that will not even cover their medical expenses. They are currently receiving much higher judgments in the courts, and fairness requires far more compensation for their life threatening diseases than this bill offers.
If the worker smoked--and unfortunately most of these workers did-- the combination of tobacco and asbestos exposure dramatically increases the likelihood of contracting lung cancer.
Workers who smoke and have been exposed to asbestos are over four times more likely to get lung cancer than smokers with no asbestos exposure. Asbestos is clearly a major contributor to their lung cancers. Yet, this bill would give them next to nothing. Under the terms of this bill, they would receive between $25,000 to $75,000. That is outrageous. These victims, who must have at least 15 weighted years of asbestos exposure, deserve much more--they deserve a level of compensation that reflects the reality of their conditions and their families' needs.
Even when the worker's lungs show specific evidence of asbestos disease, raising the probability that the asbestos exposure significantly contributed to the lung cancer to a virtual certainty, the legislation would pay them as little as $150,000. That is incredibly low. These lung cancer victims have literally had their lives shattered by asbestos. They must be fairly compensated in any legitimate national trust proposal. They are not in the Frist proposal.
To make matters even worse, the legislation would actually allow workers' compensation and health insurance companies to seek reimbursement out of the meager amounts these seriously ill workers receive from the asbestos trust. Thus, the worker and his family may literally end up with nothing despite his undeniable injuries. At the very least, the bill should protect the compensation paid to a worker by the trust from subrogation claims.
Proponents of this bill argue that in the tort system too much money is going to victims who are not really impaired and not enough is going to those who are truly sick. But their self-proclaimed concern for the truly sick certainly is not reflected in this bill. Lung cancer victims are ``truly sick'' by anyone's definition. In fact, a large percentage of them will have their lives cut short by this disease. Yet even in these cases, the most compelling cases, S. 2290 provides grossly inadequate compensation. I am deeply troubled by the way this legislation treats even the sickest of the sick.
Not only does this bill not provide adequate levels of compensation, but it does not even contain sufficient funding to pay the compensation levels contained in the bill. According to a CBO analysis, it is underfunded by over $25 billion dollars. CBO's cost estimate is $140 billion.
Furthermore, there is no guarantee that this bill will raise even the $109 billion which the sponsors say is necessary. The bill establishes contribution tiers for defendant corporations of various sizes and asbestos histories. However, the Senate has no hard information about the number of companies which will fall in each tier. Thus, the aggregate amount which will be raised to fund the asbestos trust is highly speculative. Under the proposed funding plan--some corporations--such as Halliburton and WR Grace--can escape accountability for their wrong-doing by paying only a small percentage of
the amounts they are currently responsible to pay. As long as companies such as Halliburton and Grace are permitted to pay billions of dollars less than their fair share, it will be extremely difficult--if not impossible--to fund the trust at a level sufficient to fairly compensate those who have been poisoned by asbestos.
Similarly, the manner of determining the amount that individual insurers and reinsurers will contribute to the trust is also questionable. It appears to unfairly benefit some companies at the expense of others. The way it has been structured, it may actually create unintended legal obstacles to the expeditious payment of billions of dollars into the trust by reinsurers with the largest asbestos exposure.
These funding concerns seriously jeopardize the financial viability of the trust and its capacity to compensate injured workers in the manner promised. In fact, there is no guarantee that the dollars will be there to fully pay all eligible victims what the legislation promises they will receive.
If the asbestos trust does become insolvent, workers will have to wait years before they can return to the tort system. Under the Biden amendment adopted by the Judiciary Committee, if the trust was unable to fully pay claims in a timely manner, injured workers would immediately regain their right to seek compensation in the courts.
Unfortunately, that right--so essential to fundamental fairness--has been removed in the Frist bill. Victims will have to wait as long as 7 years after the trust becomes insolvent before they can take their claim to court. Many of them will be dead by then. And, if they do return to court, the workers will not have the same rights that they do today. Under the Frist bill, seriously ill workers can find themselves in an intolerable legal limbo through no fault of their own. All of us should find that unacceptable.
The danger that the asbestos trust, as structured in this legislation, will be unable to meet its financial obligations to the victims is very real. There is a serious risk of a substantial shortfall in the early years, when nearly 300,000 pending cases will be transferred to the newly created national trust for payment. The trust may not have the resources to pay those claims in a timely manner. Payments to critically ill people may be delayed for years, and the trust itself may become insolvent.
The best way to reduce the enormous financial burden on the trust in the early years would be to leave many of those pending cases in the tort system, especially cases which were close to resolution. That would be fair to the parties in those cases and it would greatly improve the financial viability of the trust. Unfortunately, the Frist bill would do just the opposite. It fails to respect stare decisis even in cases where substantial judicial determinations have already been made. In many cases, it would actually abrogate jury verdicts and existing settlements, requiring the injured workers to start from scratch. That is terribly unfair. It will also greatly increase the burden on the asbestos trust.
Unfortunately, there is so much wrong with this legislation that I could literally discuss the shortfalls for hours. However, that would serve no purpose. Clearly, the issues are too complex and too interrelated to fix in a few days on the Senate floor. For that reason, the Senate should reject the motion to proceed to S. 2209 and send the parties back to the drawing board. The only way to produce an acceptable bill is to seriously address the legitimate concerns of injured workers as well as the concerns of the corporate defendants.
The Frist bill clearly fails that test. It is not a bill which reduces the high transaction costs in the current system, and thus puts more money in the pockets of injured workers while reducing the costs to businesses and their insurers. That would be a real solution.
It is a bill which merely shifts more of the financial burden of asbestos-induced disease to the injured workers by unfairly and arbitrarily limiting the liability of defendants. Sick workers would receive lower levels of compensation than they receive on average in the current system, and payment of even those lower levels of compensation would not be guaranteed. That is no solution at all.
I suggest the absence of a quorum.
Would the Senator be good enough to yield?
The Senator has appropriately pointed out the explosion of increased costs of tuition for the sons and daughters of middle- income families. This is basically a middle America working-class family issue. As the Senator has pointed out so well and so eloquently, it is at the heart of the hopes and dreams of every family in this country.
I am sure the Senator would agree with me, when we talk about education, we are not only talking about a better educated society; we are talking about individuals who are going to be the stewards of our democratic institutions and also the individuals who are going to be able to lead this country in terms of the international global economy and beyond that; individuals who are going to be able to be in the Armed Forces of this country.
The Senator is mentioning the increases in tuition. The Senator pointed out the costs to families: in many families, the children cannot go to college. And if they are able to go, they experience increased debt.
I understand the Advisory Committee on Student Financial Assistance has said as a result of the increase in tuition, there are almost 200,000 young individuals, young men and women, sons of working class families in this country, who effectively have been priced out of the opportunity to continue in higher education. And reports point out the enormous increase in indebtedness of even those who are going to schools. We know that over the last 10 years, indebtedness has actually almost doubled. The average debt families have when they graduate is some $17,000.
I am wondering if the Senator remembers that it was a few weeks ago the Senate passed a $2.4 trillion budget. We had an opportunity to provide a helping hand to students in this country who come from working families, by increasing the Pell grants for the young people in this country. It was the judgment and the decision of this body and the Republican administration, the Bush administration, to effectively say no, we will not increase the Pell grants, in spite of the fact--I know the Senator remembers this--that this President, when he ran for the Presidency of the United States, said in the final days of the campaign in the State of New Hampshire, that he was committed to increasing the Pell grants to $5,100. He said, in the State of New Hampshire on August thirtieth, in the year 2000: Pell grants significantly affect the ability of a child to stay in college or to stay in school. The future of a child eligible for a Pell grant will be affected by the size of the Pell grant. I am going to ask Congress to bolster first year aid from $3,300 to $5,100.
Does the Senator from Connecticut remember when we had an opportunity to do something about helping middle-class families in this country, to provide some help and assistance to them, to ease the burden of the increase in tuition, whether there was any effort from the Republican side to increase the Pell grants to provide this important help and assistance to these qualified young students who are seeking to continue their education?
Does the Senator agree with me that at one time we, as a nation, made a commitment to every child in this country that if they were qualified to get into any institution of higher learning based upon their academic standing, a series of grants and loans would be available to them so they would be able to go to the school, the college to which they were admitted?
We saw over the period of time going back to the 1970s, going back to the time this whole program, the Pell grants and the Stafford loans were established, a balance between grants and loans so young people of talent could go to the schools and universities to which they were admitted.
Now if I could direct the attention of the Senator from Connecticut, what we have seen is a complete abdication of that commitment in the fact of the declining purchasing power of the Pell grants, and in the reduction of the Work-Study Program. Fundamentally we are saying to the young people, and particularly to their parents: You are on your own. Go on out there and borrow, and pay a good deal for that additional $5 billion you will borrow. And
there is just going to be paying the interest and indebtedness for those young people in the years ahead.
Would the Senator be good enough to indicate whether he agrees with me, that the whole pattern in the recent years under Republican leadership has been to reduce the purchasing power, the value of the Pell grant, and to require the students to borrow a good deal more, which has meant an increase in indebtedness to these students? And would he not agree with me, when you visit schools and colleges and you meet with these young people around recess time or lunchtime, they are talking about their loans rather than talking about their books?
Madam President, if I may ask the Senator, we have talked about higher education. Does the Senator not agree with me that we have seen cutbacks in support for K- 12 as well? We have seen the failure of funding No Child Left Behind, which has left 4.6 million children behind. So we are leaving the children behind in higher education. We are leaving them in No Child Left Behind.
I would like to ask the Senator from Connecticut as well whether he is not concerned, as I am, about the failure to fund the Head Start Program which reaches out and helps 4-year-olds and 5-year-olds prior to the time they enter kindergarten, to give them skills and help in building confidence so they can gain knowledge and understanding in their early years in school.
Would the Senator not agree with me that what we are talking about is basically failing almost a whole generation? There are 54 million elementary and secondary school students across this country, and then we have the millions of children going on to college. And now we are talking about the millions who are eligible for the Head Start Program, who failed to receive the support they need.
Would the Senator agree with me that money isn't everything, but it is a pretty clear indication of a Nation's priorities? We make choices about what the Nation's priorities are. What we are doing now, with the conclusion of the budget which we passed here, is failing the children in higher education. We have failed children with No Child Left Behind. We are failing the children with the funding of the Head Start Program. What does that say about the commitment of this Nation in terms of the young people? And to their families, hard-working American families, what does that say about our willingness to reach out a helping hand to these families to make sure the education system is going to be the best that it can be?
If the Senator will yield for a final question, I think the Senator from Connecticut has the floor. Before we leave this discussion, I have heard the resolution of the Senator from Connecticut, his determination. I would like to ask him whether he intends to battle with the rest of us in the remaining days of this session to try to provide that kind of help to these working families in these areas of education. Does he not agree with me that this ought to still be a priority, and that even as we are coming into the critical times of the appropriations committees, we will have some opportunity to continue this battle and call Senators to account to find out whether they believe it is the responsibility of this institution to continue to invest in the children of our country and to continue the opportunities of education, and that is the highest priority we have here? Do I hear from the Senator that he will join in that battle and continue to fight for those children?
Mr. President, I rise today to introduce a bill to prevent unnecessary hardship for ranching families in the Sierra Nevada Mountains. This summer, restrictions imposed for the Yosemite Toad and…
Mr. President, I rise today to introduce a bill to prevent unnecessary hardship for ranching families in the Sierra Nevada Mountains.
This summer, restrictions imposed for the Yosemite Toad and willow flycatcher will force about fifteen to thirty ranchers off the land that they have long used for grazing.
This bill requires the Forest Service to explore all the options available to avoid this outcome. For example, the bill makes it easier for the Forest Service to offer ranchers suitable alternative grazing land.
Besides alternative grazing arrangements, the Forest Service should look at fencing, active management of the cattle, and other options. If none of these alternatives are feasible, the bill provides relief for the most seriously affected ranchers.
The bill would allow ranchers to keep using 15 parcels of land during this calendar year where Yosemite Toad and willow flycatcher restrictions would otherwise make grazing unworkable. For many other ranches, where grazing and the species could coexist with some adjustments, environmental protections would fully remain in place.
I urge the Forest Service to quickly devise a long-term strategy to promote the coexistence of ranchers and the species. The Forest Service should work proactively with the Fish and Wildlife Service to establish a conservation plan for the species--with the goal of avoiding the need for any listing of it.
I believe that if the regulatory agencies collect better information on the Yosemite Toad and the willow flycatcher, we can find ways to protect the species without completely shutting down long-term ranching operations. I am committed to expediting these long-term solutions.
Mr. President, I rise to introduce the ``Unaccompanied Alien Child Protection Act of 2003,'' bipartisan legislation to reform the way the Federal Government treats unaccompanied alien children who are in Federal immigration custody. I am pleased to be joined by my colleagues, Senators Brownback, Voinovich, Kennedy, Cantwell, DeWine, Feingold, and Lautenberg in introducing this important measure.
Approximately 5,000 foreign-born children under the age of 18 enter the United States each year unaccompanied by parents or other legal guardians. These children are among the most vulnerable of the immigrant population.
Many have often entered the country under traumatic circumstances. They are young and alone, subject to abuse and exploitation. They are often unable to articulate their fears, their views, or testify to their needs as accurately as adults can.
Despite these facts, U.S. Immigration laws and policies have been developed and implemented without regard for their effect on children, particularly on unaccompanied alien children.
Under current immigration law, these children are forced to struggle through a system designed primarily for adults, even though they lack the capacity to understand nuances legal principles and procedures. Children who may very well be eligible for relief are often vulnerable to being deported back to the very life-threatening situations from which they fled--before they are even able to make their cases before the Department of Homeland Security or an immigration judge.
Prior to March 1, 2003, the Immigration Naturalization Service, INS, had responsibility for the care, custody, and treatment of unaccompanied alien children. Too often, the INS, fell short in fulfilling the protection side of these responsibilities.
The legislation that I am introducing today builds on Section 462 of Public Law 107-296, the ``Homeland Security Act of 2002'', which provided for the transfer of responsibility for the care
and placement of unaccompanied alien children from the now-abolished INS to the Office of Refugee Resettlement, ORR, within the Department of Health and Human Services. This provision was based on S. 121, comprehensive legislation relating to unaccompanied alien children that I introduced at the beginning of the 107th Congress.
With the enactment of the Homeland Security Act, we set into motion the centralization of responsibility for the care and custody of unaccompanied alien children in the Office of Refugee Resettlement. The first phase of this transfer of responsibility occurred on March 1, 2003. Once the transition is completed, we have finally resolved the conflict of interest inherent in the former system.
I am pleased that the provision transferring responsibility for the care and custody of unaccompanied alien children was contained in the Homeland Security Act. Its inclusion in the new law was an important first step in reforming the way unaccompanied alien children are treated. It was a key provision for two reasons: First, it will help ensure that the Secretary of Homeland Security is not burdened with policy issues unrelated to the threat of terrorism. The new Department has a huge and important mission and its attention should be focused on that mission. Second, it recognizes that the Federal Government has a special responsibility to protect these children who are in federal custody. The INS did not always live up that responsibility.
But, the transfer of authority to the ORR--by itself--is not enough to ensure that these children are properly treated. Congress now has a responsibilty to go beyond the simple transfer and set the priorities for ORR and its new jurisdiction over unaccompanied foreign-born minors.
A number of other important reforms that were contained in last year's S. 121 were left out of the Homeland Security Act. Enactment of these reforms will be crucial if we truly are to reform the manner in which these children are treated. As I mentioned, the Unaccompanied Alien Child Protection Act of 2003 builds on the Homeland Security Act in two ways: First, it would make a number of technical and conforming changes in law to bring about the smooth transfer of the INS's unaccompanied alien child-related functions to ORR. Second, it would make a number of more substantive reforms in law with respect the respect to the treatment of these children--reforms that are designed to ensure that such children are treated with fairness and compassion.
Other provisions include those that would keep children who are criminals or who pose a threat to national security under the custody of the Department of Homeland Security rather than transfer responsibility of them to the ORR.
I first became involved in this issue when I heard about a young 15- year old Chinese girl who stood before a U.S. immigration court facing deportation proceedings. She had found her way to the United States as a stowaway in a container ship captured off of Guam, hoping to escape the repression she had experienced in her home country.
She had been placed on a boat bound for the United States by her very own parents, fleeing China's rigid family planning laws, Under these laws, she was denied citizenship, education, and medical care. She came to this country alone and desperate.
And what did our immigration authorities do when they found her? The INS detained her in a juvenile jail in Portland, OR, for 8 months before her asylum hearing, and 4 months after she was granted asylum.
At her asylum hearing, the young girl stood before a judge, unrepresented by counsel, confused, and unable to understand the proceedings against her. She could not wipe away the tears from her face because her hands were chained to her waist. According to a lawyer who later came to represent her, ``her only crime was that her parents had put her on a boat so she could get a better life over here.''
While the young girl eventually received asylum in our country, she unnecessarily faced an ordeal no child should bear under our immigration system. This young Chinese girl represents only one of 5,000 foreign-born children who, without parents or legal guardians to protect them, are discovered in the United States each year in need of protection. This, is unacceptable treatment. We have a responsibility to do better than this.
Central throughout the Unaccompanied Alien Child Protection Act of 2003 are two concepts: 1. The United States Government has a fundamental responsibility to protect unaccompanied children in its custody; and 2. in all proceedings and actions, the government should have as a high priority protecting the interests of these children, most of whom are unable to understand the nature of the proceedings in which they are involved.
This bill would ensure that children who are apprehended by immigration authorities are treated humanely and appropriately by: ensuring that eligible unaccompanied alien children are promptly placed in the custody of Office of Refugee Resettlement after they are encountered by immigration officials; ensuring that the children have counsel to represent them in immigration proceedings and matters; authorizing the Director of ORR to provide guardians ad litem for the children to look after their interests; establishing clear guidelines and uniformity for detention alternatives such as shelter care, foster care, and other child custody arrangements; establishing minimum standards for detention and alternative settings that take into account the special needs of children; improving such children's access to existing options for permanent protection when U.S. immigration and child welfare authorities believe such protection is warranted; setting forth procedures that immigration officers should follow when apprehending unaccompanied alien children at the United states border or at United States ports of entry; establishing procedures to ensure that the true age of an alien who claims to be under the age of 18 is determined; ensuring that the Department of Homeland Security, rather than the Office of Refugee Resettlement, maintain custody over children who are either criminals or threats to national security; and establishing procedures to ensure that certain unaccompanied alien children from Mexico or Canada, encountered along the United States border, are returned to their homes, subject to formal agreements between the United States and those countries providing for their safe return without undue delay.
Without enactment of my legislation, none of these important parameters would be placed on the Office of Refugee Resettlement or the Department of Homeland Security.
This bill also includes provisions that provide for the safety of the significant number of unaccompanied alien children who are victims of smuggling or trafficking rings. For example, 2 years ago, Phanupong Khaisri, a 2-year old Thai child, was brought to the United States by two individuals falsely claiming to be his parents, but who were actually part of a major alien trafficking ring.
The INS was prepared to deport the child back to Thailand. It was not until Members of Congress and the local Thai community had intervened, however, that the INS decided to allow the child to remain in the United States until the agency could provide proper medical attention and determine what course of action would be in his best interest.
The Unaccompanied Alien Child Protection Act aims to prevent situations like this from recurring. Moreover, the legislation would ensure that children are released into safe and humane environments while awaiting a determination of their status when that is appropriate, and it would ensure that the children are protected from smugglers, traffickers, or others who might exploit them.
Further, it would require the ORR to take steps to ensure that unaccompanied alien children are protected from smugglers or others who may wish to do them harm, and authorizes reimbursement for State and local expenses associated with caring for unaccompanied alien children.
Children, even more than adults, have incredible difficulty understanding the complexities of the immigration system without the assistance of counsel. Despite this reality, most children in immigration custody are overlooked and unrepresented. Without legal representation, children are at risk of being returned to their home
countries where they may face further human rights abuses.
The Unaccompanied Alien Child Protection Act of 20032 would require that all unaccompanied alien children in Federal custody by reason of their immigration status have counsel to represent them in any immigration proceedings involving them. It would vest in the Director of ORR responsibility for ensuring that the children have counsel, and it would provide the Director power to establish an infrastructure for developing a system to recruit and support pro bono counsel who can represent these children without cost to them or to the government.
It provides, as a last resort, that counsel could be provided for the children at government expense, capping the fees that such counsel could charge in the event that the government pays for such counsel.
This bill would authorize, but not mandate, the Director of ORR to put into place a system of guardians ad litem who would help the court in determining the best interests of children in U.S. custody.
The vast majority of unaccompanied alien children have been forced to maneuver the immigration system without any representation or without any assistance. This is unacceptable. It results in many children participating in a system without any understanding of the process they are undergoing or the ramifications of their situation.
Under this section, the guardian ad litem would not be working ``for the child.'' Nor would he or she be working for the Department of Homeland Security. Instead, he or she would be an impartial observer reporting to the court and to the Office of Refugee Resettlement on what he or she thinks is in the best interest of the child.
The guardians ad litem system could be modeled after any of a number of systems already existing in juvenile courts throughout the American juvenile justice system. This system is not a novel legal concept, but one that is trusted and already in place in every state in proceedings involving juveniles.
Imagine the fear of a foreign-born child, in the United States alone without a parent or guardian. Imagine that child being thrust into a system she did not understand, given no legal aid, placed in jail that housed juveniles with serious criminal convictions. Mr. President, I find it hard to believe that our country would have allowed innocent children to be treated in such a manner.
That is why my colleagues and I are introducing this legislation today. The Unaccompanied Alien Child Protection Act of 2003 will help our country fulfill the special obligation to these children.
I am proud to have the support of the United States Conference of Catholic Bishops, the Women's Commission on Refugee Women and Children, the Lutheran Immigration and Refugee Service, the American Bar Association, the United National High Commissioner for Refugees, and many other organizations with whom I have worked closely to develop this legislation.
I urge my colleagues to join me by cosponsoring this important measure and ensuring that these reforms are finally enacted.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I rise today to offer legislation to provide lawful permanent residence status to Esidronio Arreola-Saucedo, Maria Elena Cobian Arreola, Nayely Bibiana Arreola, and Cindy Jael Arreola, Mexican nationals who live in the Fresno area of California.
Mr. and Mrs. Arreola have lived in he United States for nearly 20 years. They are the parents of Nayely and Cindy, who also stand to benefit from this legislation. The Arreolas also have three United States citizens children: Roberto, who is 11 year old; Daniel, who is 8; and Saray, their youngest daughter, who is six-years old. Today, Mr. and Mrs. Arreola, and her children face deportation.
The story of the Arreola family is quite compelling and I believe they merit Congress' special consideration for humanitarian relief. The Arreolas are in uncertain situation in part because of grievous errors committed by their previous counsel, who has since been disbarred. In fact, the attorney's conduct was so egregious that it compelled an immigration judge to write the Executive Office of Immigration Review seeking his disbarment for the legal detriment he caused his immigrant clients.
Mr. Arreola has lived in the United States since 1986. He was an agricultural migrant worker in the fields of California for several years, and as such would have been eligible for permanent residence through the Seasonal Agricultural Workers, SAW, program had he known that he could apply for it. Mrs. Arreola was living in the United States at the time she became pregnant with her daughter Cindy, but returned to Mexico to give birth to Cindy to avoid any problems with the Immigration and Naturalization Service. It is quite likely that the family would have qualified for cancellation of removal but for the conduct of their previous attorney.
Perhaps one of the most compelling reasons for permitting the family to remain in the United States is the devastating impact their deportation would have on their children: three of whom are U.S. citizens; the other two have lived in the United States virtually all of their lives. This country is the only the country they really know.
Nayely, the oldest child, is a junior in high school. She is an outstanding student with a 3.91 Grade Point Average who ranks fourth in her class of approximately 300 students. At her relatively young age, Nayely has demonstrated a strong commitment to the ideals of citizenship in her adopted country. She has worked hard to achieve her full potential both in her academic endeavors and through the service she provides her community.
Nayely is a member of Advancement Via Individual Determination, AVID, a college preparatory program in which students commit to determining their own futures through achieving a college degree. Nayely is also President of the key Club, a community service organization. She helps mentor freshmen and participates in several other student organizations in her school. Perhaps the greatest hardship to this family if she is forced to return to Mexico will be her lost opportunity to realize here dreams and further contribute to her community and to this country.
As the principal of her high school wrote, ``[s]he epitomizes what we seek to instill in all of our students. She has accepted the challenges and has made a commitment to better her future, to better her life, and to better herself through education.''
It is clear to me that Nayely feels a strong sense of responsibility for her community and country. By all indication, this is the case as well for all of the members of her fine family.
I understand that the Arreolas also have other family who are lawful permanent residents here in the United States. Mrs. Arreola also has three brothers who are U.S. citizens and Mr. Arreola has a sister who is a U.S. citizen. It is my understanding that they do not have any family to whom they might return in Mexico.
According to immigration authorities, this family has never had any problems with law enforcement. I am told that they have filed their taxes for every year from 1990 to the present. They have always worked hard to support themselves. As I previously mentioned, Mr. Arreola was previously employed as a farmworker, but now has his own business repairing electronics. His business has been successful enough to enable him to purchase a home for his family.
It seems so clear to me that this family has embraced the American dream and their continued presence in our country would do so much to enhance the values we hold dear. Enactment of the legislation I have introduced today will enable the Arreolas to continue to make significant contributions to their community and to the United States as well.
I ask unanimous consent that the letter of Xavier De La Torre, Principal of Granite Hills High School, as well as the numerous letters of support our office has received from members of the Porterville community be entered into the Record. I also ask unanimous consent that Nayely's essay entitled ``If I Could Change the World,'' which she wrote at age 15, be printed in the Record.
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Mr. President, I ask unanimous consent the order for the quorum call be rescinded. Mr. President, might I inquire as to how much time I would have to speak on the floor now? Mr. President, last week…
Mr. President, I ask unanimous consent the order for the quorum call be rescinded.
Mr. President, might I inquire as to how much time I would have to speak on the floor now?
Mr. President, last week the Labor, Health, and Human Services Subcommittee of Appropriations held a hearing in my State of Iowa. I wanted to learn more about the medical and financial ramifications of chronic conditions such as obesity, tobacco use, mental illness, and lack of physical activity. I come away from that hearing and other hearings that we have had in Washington, and others we have had going back probably over a dozen years, even more convinced that we need to refocus our health care system toward wellness and prevention. I am convinced now more than ever that we really do not have a health care system in America. We have a ``sick care system'' in America. I will say more about that in a moment.
At the hearing and at others before that, we heard the familiar litany of grim statistics associated with these chronic conditions. But we also heard from Iowans, students and adults, who are taking matters into their own hands, doing innovative things to promote wellness and healthier living in their communities.
In the United States we spend in excess of $1.5 trillion a year on health care. Fully 75 percent of that total is accounted for by chronic diseases, such as heart disease, cancer, diabetes. What these diseases have in common is, in so many cases, they are preventable. In the United States we fail to make an up-front investment in prevention, so we end up spending hundreds of billions on hospitalization, treatment, and disability.
This is foolish, and clearly is unsustainable. We need a new paradigm in American health care. We need a prevention paradigm. As I said, right now we have a sick care system in the United States. If you get sick, one way or another you get care, either through health insurance or through Medicaid, Medicare, or something like that. Of course we know we have 43 million uninsured who do not have access, even, many times, to our sick care system. But what we need is a genuine health care system, a system focused on wellness and prevention, a system focused on keeping you healthy in the first place.
Consider the cost of major chronic diseases, diseases that in many cases are preventable. The annual costs for cardiovascular disease are about $352 billion; for obesity, $117 billion a year; for diabetes, $132 billion a year; for smoking, more than $75 billion a year; and for untreated mental illness, $79 billion a year. Indeed, major depression is the leading cause of disability in the United States.
If I bought a new car and I drove that car off the lot and I never maintained it, I never checked the oil, I never changed the oil, I never checked the transmission fluid, never got it tuned up, I just drove it, you would think I was crazy, not to mention grossly irresponsible. The commonsense principle with an automobile is: Pay a little now, keep it maintained, or you are going to pay a whole lot later for a new engine.
It is the same with our national health priorities. Right now our system is in a downward spiral. We are not paying a little now so we are paying a whole lot later. If we are serious about bringing down health care costs, we must get people access to preventive care. We must give people the tools they need to stay healthy. We must build incentives throughout the entire society, incentives for prevention and wellness. This will take a sustained commitment from government, schools, communities, employers, health officials, and of course the food industries. But this can have a huge payoff for individuals and families, for employers, for society, and for the economy at large.
One condition in particular is fast becoming our Nation's leading public health threat: being overweight and obesity. Several weeks ago a new study came out that confirms what many of us already know. Obesity, unhealthy diets, and lack of physical activity have made us a nation at risk. The Centers for Disease Control and Prevention did a study that determined that poor diet and lack of physical activity are now the second leading cause of death in the United States, contributing to at least 400,000 deaths annually.
I think this chart shows the startling statistics very clearly. This is from the Centers for Disease Control and Prevention. The actual cause of death in the United States in 1990 from tobacco was 400,000. By the year 2000 the cause of death by tobacco was 435,000. But look at this. Poor diet and physical inactivity, in 1990: 300,000 deaths; by 2000, 400,000 deaths. So while the cause of death from tobacco use had gone up less than 10 percent in 10 years, the cause of death from poor diet, obesity, and physical inactivity went up 33 percent in one decade. It is now the second leading cause of death in the United States.
One of the authors of this study was the Director of the Centers for Disease Control and Prevention, Dr. Julie Gerberding. The media and the American public increasingly recognize this growing crisis. Seemingly every day I open the paper and read about the public health impacts of chronic disease. A recent cover of the Economist magazine hit the nail on the head. If we don't act now and act aggressively, the progress we have made in promoting health and fighting disease, all of the public health gains we have made in the last couple of hundred years, will be totally wiped away.
I thought this illustration from the Economist showed the progress of humankind as we became more and more like modern man--and then here we are, descending into obesity and overweight. That was the cover of the Economist last December entitled ``The Shape of Things to Come.'' Of course, here he is, drinking his supersized soft drink, walking down the road to chronic illness and disease.
In 1990, 1997, and 2002, the Centers for Disease Control and Prevention did a State-by-State obesity prevalence study. I am going to show three charts which are startling in how they depict what is happening just in the last 14 years in the United States. The first chart I will put up is obesity in the United States among adults in 1990. In 1990, the dark shaded areas here are obesity rates between 10 percent and 14 percent. The light blue areas are States where we have less than 10 percent incidence of obesity. For the white States we just didn't have data. But as you can see, in 1990 no State had a prevalence of obesity over 15 percent--not one. All of the States were less than 15 percent or less than 10 percent. That was in 1990.
Now let's take a look at 1997. By 1997, here we have some orange States coming up now which we didn't see in 1990. The orange States mean that the prevalence of obesity is over 15 percent. Now we have these States with a prevalence of obesity over 15 percent. Remember all those blue States that were less than 15 percent? It is now 15 to 20 percent. So all of the dark areas are now over 15 percent. And only a few States here are from 10 percent to 15 percent, but no State has an incidence of less than 10 percent now. That is just in less than 7 years. That is 1997. Keep in mind now we have these three States, and the majority of the States now are between 15 and 20 percent.
Let's take a look at what happened in 2002. Here is the real shocker. Look at all the orange States. These are the States now where the incidence of obesity is 20 percent to 24 percent. Now we have three red States where the incidence is over 25 percent. We have a few States here below 20 percent. Now we have no States less than 15 percent.
If I could have the first chart of 1990, I want to show the comparison. Here we have in 1990 no States with an incidence of obesity of over 15 percent. By 2002, according to the Centers for Disease Control and Prevention, three States are over 25 percent, the vast majority of States are over 20 percent, and the rest of the country over 15 percent. In 1990, we didn't have one State that fit the pattern we see in the United States now. That is what has happened in 14 years. Now we see even some States exceeding 25 percent. We see the trend.
Actually, the story is even worse than this. The data on these charts is based on self-reported weight, which tends to be significantly understated, as you might imagine. As catastrophic as this chart of 2002 appears, it actually understates the extent of the obesity epidemic. If you use reported data rather than self-reported, obesity rates are much higher. In fact, using this scientific approach, we learned that almost two out of every three Americans are either overweight or obese. Think about that. Right now, only one in three Americans is within their weight range for their height.
Obesity takes a terrible toll on a person's health. It can lead to diabetes, heart disease, high blood pressure, cancer, and numerous other chronic diseases. Incredibly, obesity causes more chronic conditions than either smoking or alcoholism.
This is what this chart shows. This is again from the Centers for Disease Control. We have a higher incidence of the number of chronic conditions associated with health behavior. The No. 1 incidence of chronic condition is aging. The older you get, the more liable you are to get a chronic condition. Aging from 30 to 50 has the highest incidence of a chronic disease. Second only to that is obesity, and it is almost the same. Being obese is like aging from 30 to 50. If you are 30 years old and you are obese, you might as well be 50 years old in terms of susceptibility to a chronic disease.
Here is smoking. It is down here quite a ways. Just being overweight is down here. Drinking, past smoker, and obesity. In fact, right now obesity is, as I said, the second largest killer of people in this country.
Thus far, Congress has not been willing to adequately take on the challenge of obesity and the challenge of encouraging healthy choices and lifestyles. It is time for the Senate to lead in a new direction by encouraging wellness and prevention.
To that end, I am currently working with others on several initiatives to create a healthier workplace and a healthier environment for our Senate family. In March, I sent a letter to the Senate Rules Committee to request that signs be placed next to elevator buttons and at the entrances to stairwells and at the base of escalators encouraging people to use the stairs. Just the other day, I heard someone on the elevator say they wanted to use the stairs, but they didn't because they couldn't find them.
The other day I happened to visit Secretary Thompson down at HHS. They have signs right there by the elevators and the doors encouraging people to take a flight of stairs rather than riding the elevator.
I have also been in discussions with the Senate cafeteria on the matter of food labeling. To their credit, they already have food labeling available on their Web site. But I would like to see the Senate cafeteria go the next step by including nutrition information on menus or handouts that customers can pick up when they enter one of the Senate restaurants. If Ruby Tuesday's can do it and put all of the information
on their menus, why can't we in the Senate cafeterias?
I have also developed what I called the ``Harkin Health Challenge'' to promote wellness for my staff here and back in Iowa. This is a comprehensive workplace wellness program that addresses stress management, nutrition, physical, wellness screenings, and, of course, smoking cessation.
Some believe there should be no role for the government in curbing obesity. Some believe this is a matter of personal responsibility. I don't agree. We can take steps to encourage and facilitate healthy lifestyles. We can make sure ordinary Americans have the tools and information they need to make informed healthy choices and be more responsible for their own health.
We are about to pass a highway bill of approximately $300 billion for highways, roads, and bridges. We tried to get an attachment to that bill to promote bike paths along our highways. I saw a figure the other day about how much less young people ride bikes today than they did 15 or 20 years ago. Ask yourselves as you drive down one of our busy thoroughfares or streets: Would you ride a bike down there during rush hour traffic? Of course not. You look to the side and there are no bike paths. There are no walkways for people to have access. We have streets now that do not even have sidewalks by them, let alone a bike path. I think when we invest taxpayers' money to build highways, roads, and bridges, we ought to mandate that, as a part of that, there ought to be an access for bike and/or walking paths next to those streets.
I have already introduced legislation that would require menu labeling in chain restaurants, but I can already hear objections that this will be too expensive. It will be a burden on businesses, for example, to put all of their information on menus. I mentioned that Ruby Tuesday's already announced plans to implement food labeling in its restaurants. Clearly they don't consider this to be too expensive. They made a hardheaded corporate decision that it was both doable and good for business.
I remember the same objections which were raised when Congress first passed the Nutrition Labeling and Education Act to require labeling of retail foods and packaged foods. But lo and behold, years later, the sky has not fallen. To the contrary, consumers like labeling. When they go into the grocery store, they pick up boxes, cans, and packages and they read the nutrition labeling. They rely on those labels to help them make informed healthy choices.
Consumers say they want nutrition information available when they make menu selections at restaurants. Yet, while they have access to excellent nutrition information at supermarkets when they go to buy packaged foods, when they go to a restaurant, consumers have to resort to guessing and estimating.
What about our special responsibility to the children? The food industry spends more than $12 billion a year bombarding our kids with advertisements through television, movies, magazines, and the Internet. I don't have to tell you that they are not advertising broccoli and apples and orange juice. The majority of these ads are for candy and fast food--foods that are higher in sugar, salt, fat, and calories.
Today, specialty marketing firms have made a science out of influencing children to buy a particular candy or to go to a particular fast-food restaurant. Yes, parents have a responsibility to shield their kids from harmful influences of all kinds. But what about corporate responsibility? What about corporate ethics? What about our Government's responsibility to make sure our children have a healthy environment?
Children, especially those under 8 years of age, don't always have the ability to distinguish fact from fiction. The number of TV ads that kids see over the course of their childhood has doubled from 20,000 to 40,000; meanwhile, the percentage of children who are overweight or obese has also doubled. The percentage of overweight or obese teens has, in fact, tripled. The United States right now has a higher percentage of overweight teens than any other industrialized country.
We also need to take steps to reduce the junk food that our children are getting at schools. The GAO found that 43 percent of elementary schools, 74 percent of middle schools, and 98 percent of high schools have vending machines, school snack bars, or other food sources outside of the school lunch and school breakfast programs. We know that when kids have access to vending machines and snack bars and a la carte lines at school, bad things happen. Kids' consumption of milk, fruits, and vegetables goes down, and their intake of sodas and fried foods skyrockets. This is one more area where Congress has a responsibility to intervene to protect our children.
I had this brought home to me the other day when it was pointed out that a 20-ounce size soft drink--Coke, Pepsi, all the soft drinks--has the equivalent of 15 teaspoons of sugar. I ask: As a parent, would you send your kid to school during the day and say, Here are 15 teaspoons of sugar, please eat this. No parent would want to do that. Yet when that kid goes to school and buys a 20-ounce soft drink, that is exactly what they are getting. And they will probably have two of them during the day. That is 30 teaspoons of sugar in 1 day.
Go home, take 15 teaspoons of sugar, put it in a cup and see if you would like to eat that. Or do 30 teaspoons, the equivalent of what a lot of kids are drinking today. No wonder obesity among teenagers has tripled. No wonder our teenagers in this country are more obese than teenagers in any other industrialized country in the world.
We have a responsibility; parents have a responsibility; schools have a responsibility. But it is Congress that funds the school lunch and school breakfast programs and the nutrition programs. This year we will reauthorize the nutrition program, school lunches and school breakfasts. We will reauthorize that this year.
What will we do as Senators and Congressmen to help promote healthier eating and healthier lifestyle choices among our kids in school? Do we have a responsibility? You bet we do. I hope we will step up to that responsibility when the nutrition reauthorization bill comes through the committee to the Senate.
In the coming months, I will be announcing a package of bills and initiatives focusing on wellness, focusing on preventing chronic diseases. The emphasis will be on nutrition, physical activity, mental health, tobacco cessation. It will stress prevention, consumer awareness, responsible marketing practices, and wellness programs in schools, communities, and the workplace.
We face an obesity epidemic. We face an explosion of largely preventable chronic diseases. We face health care costs and health insurance premiums that are skyrocketing. All of these things are related. We have to meet our responsibilities. We as Senators must set a good example: Walk more, use the stairs more, have information on all of our menus in all of our Senate cafeterias so we know exactly how much trans fats, calories, sodium we are getting with each meal ordered, and also to do what we can in our official capacity to help support wellness and to support healthy lifestyles among our kids in school and at daycare centers. That is where it starts. If we can get the kids and teach them healthier lifestyles, healthier eating choices early on, chances are that is what they will follow when they grow older.
It seems to me the golden rule of holes is this: When you are in a hole and you find it is getting up to your shoulders or up to your head, stop digging. We have dug one whopper of a hole in health care in this country by failing to emphasize prevention and wellness. It is time to stop digging. It is time to focus our attention on healthy lifestyle, prevention, wellness, providing incentives for businesses.
I hear about tax incentives for business to do this, and that we need more tax incentives for businesses to provide wellness and prevention programs at the worksite for people who work in small and large businesses. We need to provide the kind of support for our public schools to provide better choices for our kids, also.
I thank the indulgence of the Chair. I wanted to take this time to talk about this and to alert my fellow Senators that I will be introducing a package of wellness bills and I have been working with the majority leader, a doctor, Senator Frist, on some of
these items, especially about getting signs posted about trying to use the stairs more often, about getting Senators wearing pedometers and doing more walking, for us to set a good example for the rest of the country.
I am hopeful we can also use the nutrition reauthorization bill this year to make some changes in how we approach how kids eat and what they eat at school and what is available to them in terms of vending machines, soft drinks, sugar, salt, that type of thing, and to get them eating healthier at an early age.
I yield the floor and suggest the absence of a quorum.
Mr. President, today I rise to introduce legislation to do what should have been done decades ago: fully ban asbestos in the United States. I am introducing the Ban Asbestos in America Act of 2003 to…
Mr. President, today I rise to introduce legislation to do what should have been done decades ago: fully ban asbestos in the United States. I am introducing the Ban Asbestos in America Act of 2003 to prohibit this known carcinogen from being used to manufacture products in this country. The bill also bans imports of asbestos products from other countries where asbestos is still legal. I am pleased that Senators Baucus, Boxer, Cantwell, Dayton, Jeffords and Leahy are original cosponsors of this important legislation.
The primary purpose of the Ban Asbestos in America Act of 2003 is to require the Environmental Protection Agency, EPA, to ban the substance within two years. Most people think that asbestos has already been banned. In fact, in 1989 EPA finalized regulations to phase out and ban the substance by 1997. But in 1991, the 5th Circuit Court of Appeals overturned EPA's ban, arguing that EPA did not ``first evaluate and then reject the less burdensome alternatives'' under the Toxic Substances Control Act. Unfortunately, the first Bush Administration did not appeal the decision to the Supreme Court. While new uses of asbestos were banned, existing ones were not.
As a result, it is still legal in 2003 to construct buildings in the United States with asbestos cement shingles and to treat them with asbestos roof coatings. It is still legal to construct new water systems using asbestos cement pipes imported from other countries. It is still legal for cars and trucks to be made and serviced with asbestos brake pads and clutch facings.
Asbestos is still not banned, and as a result, we're still using it. According to the U.S. Geological Survey, in 2001, businesses in this country consumed 26 million pounds of chrysotile asbestos to make roofing products, gaskets, friction materials and other products. Last month, my staff walked into a local home improvement store and bought off the shelf roofing sealants made with asbestos. In addition, we are still importing asbestos products from other countries, many of which have less stringent environmental and public health standards.
Everyone knows that asbestos is harmful. The term asbestos, like arsenic, lead, mercury or DDT, is synonymous with poison. Asbestos may well be the most regulated toxic substance that federal and state agencies have ever dealt with. At least eleven different Federal statutes address asbestos. The EPA, Occupational Safety and Health Administration, OSHA, Mine Safety and Health Administration and Consumer Product Safety Commission are only some of the Federal agencies tasked with implementing rules to protect workers and consumers from the dangers of this substance.
But the sheer volume of rules and regulations in place does not guarantee that public health and the environment are being adequately protected. We have significant evidence suggesting that because asbestos is still not banned, we're still not safe from its dangers. I'd like to highlight some of this evidence for my colleagues.
First, workers in this country are still being exposed to dangerous levels of asbestos. According to OSHA, ``An estimated 1.3 million employees in construction and general industry face significant asbestos exposure on the job. Heaviest exposures occur in the construction industry, particularly during the removal of asbestos during renovation or demolition. Employees are also likely to be exposed during the manufacture of asbestos products, such as textiles, friction products, insulation, and other building materials, and during automotive brake and clutch repair work.''
It is important to remember that there is no known safe threshold level of asbestos exposure. OSHA's permissible exposure limit of 0.1 fibers per cubic centimeter is based on technical measurement limitations. OSHA's limit assumes that workers exposed to this concentration have a lifetime exposure risk of 3 to 5 in 1,000 for cancer and 2 in 1,000 for asbestosis. This is a very high risk compared to the cancer risk levels that are considered acceptable for some environmental cleanups.
The extent to which workers are exposed to dangerous levels of asbestos is especially troublesome when one considers the frequency with which OSHA's standards are violated. On July 31, 2001, I chaired a Senate Health, Education, Labor and Pensions hearing on asbestos and workplace safety. At the hearing I learned from OSHA that since 1995, the agency had cited employers for violations of its asbestos standards 15,691 times. This is astounding given the known dangers of asbestos and the high risks of disease even when OSHA's exposure limit is being met.
As follow-up to the hearing, I asked OSHA to provide more information about asbestos-related violations. In an October 17, 2001 letter to me, Mr. John Henshaw, Assistant Secretary for Occupational Safety and Health, wrote that between fiscal year 1996 and fiscal year 2001, OSHA conducted a total of 190,971 inspections generating a total of 427,786 violations. Of these, 3,000 inspections and 15,691 violations involved asbestos. According to Mr. Henshaw, about 2 percent of inspections and 4 percent of violations were asbestos-related. In his letter to me, Mr. Henshaw wrote, ``OSHA does not consider any level to be an acceptable noncompliance level. We strive for 100 percent compliance.'' Despite OSHA's best intentions, workers are still being exposed to dangerous levels of asbestos.
It is also important to consider that the vast majority of workplaces where asbestos exposure occurs, such as construction jobs and auto repair shops, are not regularly inspected by OSHA. The Administration conducts inspections only in response to complaints or as a result of referrals from law enforcement or the media. Many more violations of the standard occur in the real world than are actually recorded by regulators. Many employees likely do not contact OSHA about potential asbestos exposure on the job because they think asbestos has been banned long ago and is no longer a problem.
But asbestos in the workplace is clearly still a problem. Recent news investigations provide more evidence that workers are being exposed to dangerous levels of this mineral. According to an article in the Seattle Post-Intelligencer on November 16, 2000, ``During the past three months, the P-I collected samples of dust from floors, work areas and tool bins in 31 brake-repair garages in Baltimore, Boston, Chicago, Denver, Richmond, Seattle, and Washington, D.C. Asbestos, almost exclusively chrysotile, which has been used for decades in brakes, was detected in 21 of the locations. The amount of asbestos in the dust ranged from 2.26 percent to 63.8 percent.''
When dust with these concentrations of asbestos in them is disturbed, airborne concentrations of asbestos occur that are well above OSHA's permissible exposure limit of 0.1 fiber per cubic centimeter. Under current OSHA regulations, if airborne asbestos concentrations exceed this level, employers must conduct air monitoring, take measures to reduce asbestos emissions, post warning signs and record concentrations of airborne asbestos. Workers are supposed to wear respirators and protective clothing and are required to undergo long term medical monitoring.
Now I recognize that much of the exposure to asbestos in the workplace comes from asbestos products installed years, and in many cases, decades ago. By one estimate, about 30 million tons of asbestos was used in this country between 1900 and 1980. Asbestos in place, in our buildings, schools and homes, will be with us for decades to come.
But given the known dangers of this mineral, why are we still using it? Why are we still adding it to products on purpose when there are perfectly acceptable substitutes? In retrospect, it is tragic that asbestos was so widely used during the 20th century, for the
economic and public health impacts have been disastrous. One very important step in overcoming the problems caused by asbestos is to stop adding to the problem--however incrementally--by continuing to use this dangerous mineral in products on purpose.
I'd like to point out some additional evidence supporting the need to ban asbestos in the United States and to raise awareness about this issue. Most of my colleagues are familiar with the tragedy in Libby, MT, where hundreds of workers and their families suffer from asbestos- related diseases caused by exposure to asbestos-tainted vermiculite.
For decades, the W.R. Grace mine in Libby supplied about 80 percent of the vermiculite used in this country. W.R. Grace very successfully marketed its product, without any warning labels, even though the company was well aware its product was contaminated with this known carcinogen. Asbestos-contaminated ore was shipped to more than 300 sites around the country for processing and use in industrial and consumer products. According to the EPA, 14 of these sites are so contaminated with asbestos that they still need to be cleaned up, even though the Libby mine closed in 1990. While this is a problem that came from a small mining town in Montana, the ramifications and consequences are clearly national in scope.
In addition, vermiculite from Libby is still around and is still a threat to public health. It is estimated that tens of millions of homes, schools and businesses contain insulation made with Libby vermiculite, known as Zonolite. A recent study conducted for EPA, entitled Asbestos Exposure Assessment for Vermiculite Attic Insulation, found that Zonolite in homes today contains up to 2 percent asbestos. This study included tests on Zonolite insulation from Seattle Public Utilities and from a home in Washington State. It found that when this insulation was disturbed, airborne concentrations of 3.3 asbestos fibers per cubic centimeters were measured. In other words, handling Zonolite asbestos can cause levels of asbestos in the air that significantly exceed OSHA's exposure limit for workers. Even more troubling, perhaps, the study found ``vermiculite that tests non-detect for asbestos by bulk analysis can still generate airborne asbestos concentrations when disturbed.'' When vermiculite without significant amounts of asbestos in bulk was disturbed, concentrations of asbestos in the air up to 0.5 fibers per cubic centimeters were detected. This means that even vermiculite with only trace amounts of asbestos in bulk can generate unhealthy concentrations of asbestos in the air.
Yesterday EPA launched a national consumer education campaign warning people not to disturb Zonolite attic insulation if they have it in their homes. The agency also warned people not to let their children play in attics with vermiculite for fear of asbestos exposure. EPA has developed a consumer education brochure and has created an asbestos hotline for people to call for more information. The Agency for Toxic Substances and Disease Registry and National Institute for Occupational Safety and Health have joined EPA in this education effort by creating materials to educate consumers and workers about the dangers of asbestos-contaminated vermiculite.
While we need to ensure that we are no longer adding asbestos to our products on purpose, we also need to ensure that asbestos in harmful concentrations isn't ending up in our consumer products by accident. I am glad EPA, ATSDR and NIOSH are now proactively reaching out to consumers and workers to warn them to stay away from vermiculite attic insulation. This is an important first step in dealing with just one aspect of the legacy created by W.R. Grace in Libby.
There is another important reason to ban asbestos that I would like to share with my colleagues. As I mentioned previously, the United States is still importing products that contain asbestos. Unfortunately, we do not have precise statistics on which products coming into this country contain the deadly mineral. The Department of Commerce's import database does not distinguish between asbestos- containing products and products containing asbestos substitutes. According to the U.S. International Trade Commission, in 2002 this country imported more than 44,000 tons of asbestos-cement products, some of which may have contained cellulose instead of asbestos.
With increased globalization and international trade, U.S. imports of asbestos containing consumer and industrial products will continue to rise--unless we prohibit these products from crossing our borders in the first place.
Although we do not have accurate numbers for the extent to which asbestos products are flowing across our borders, we do know that asbestos is being heavily marketed to developing countries. According to an August 2, 1999 USA Today article, ``As asbestos demand has plummeted in the industrialized world the past 25 years, it has soared in many developing nations and formerly communist countries. Its use in these countries is largely unregulated, haphazard and deadly.''
A more recent editorial in the Canadian Medical Association Journal compares the asbestos industry to the tobacco industry. The February 20, 2001 article by Doctors Joseph LaDou, Philip Landrigan, John C. Bailar III, Vito Foa and Arthur Frank reads:
``The commercial tactics of the asbestos industry are very similar to those of the tobacco industry. In the absence of international sanctions, losses resulting from reduced cigarette consumption in the developed countries are offset by heavy selling to developing nations. In a similar fashion, the developed world has responded to the asbestos health catastrophe with a progressive ban on the use of asbestos. In response, the asbestos industry is progressively transferring its commercial activities and the health hazards to the developing countries.''
Banning asbestos in the United States sends an important message to the rest of the world. The asbestos industry will no longer be able to justify its marketing to developing countries by pointing out that asbestos is still legal in the U.S., and therefore, it must be safe. More than 30 countries have already banned asbestos, and it is time for this country to follow suit. It is our moral responsibility as the world's strongest economy, the most powerful Nation and a leader in environmental protection and public health to ban this harmful substance.
That is why today I am introducing the Ban Asbestos in America Act. The legislation has five main parts. First, this bill protects public health by doing what the EPA tried to do 14 years ago: ban asbestos in the United States. The legislation requires EPA to ban it within two years of passage of the Act. As under the regulations EPA finalized in 1989, companies may file for an exemption to the ban if there is no substitute material available.
Second, the bill requires EPA to convene a Blue Ribbon Panel on asbestos policy and to have the National Academy of Sciences conduct an asbestos study. In response to the 2001 EPA Inspector General's report on Libby, Montana, the EPA promised to convene a Blue Ribbon Panel on asbestos and non-regulated fibers. But instead of convening a high level panel, EPA hired a non-profit organization, the Global Environment and Technology Foundation, to develop an asbestos policies focus group. Just yesterday EPA released GETF's Asbestos Strategies Report. I am very pleased that the Report recommends several aspects of the Ban Asbestos in America Act, including that Congress pass legislation to ban asbestos.
While the recommendations are certainly helpful in providing guidance to EPA, Congress and other federal agencies on the next steps to address asbestos, the GETF report does not replace a full fledged Blue Ribbon Panel. The Ban Asbestos in America Act codifies creation of a Blue Ribbon Panel as EPA first committed to in 2001. The panel will include participation from the Department of Labor and the Consumer Product Safety Commission. It will review the current laws and rules in place to protect workers and consumers, and make recommendations for improving protections within 2 years of passage of the Act.
In addition, the bill calls for EPA to have the NAS conduct a study on the current state of the science relating to the human health effects of exposure to asbestos and other durable fibers. The NAS study shall also include recommendations for a uniform system of asbestos exposure standards and for a uniform system to create protocols to
detect and measure asbestos. As I mentioned previously, asbestos is regulated under multiple statutes. There are different standards within EPA and across Federal agencies, and agencies rely on different protocols to identify the substance. The NAS shall be required to submit the study to EPA, other federal agencies and Congress within 18 months of passage of the Act.
Third, the legislation requires a survey to determine which products contain asbestos, either on purpose or as a contaminant. EPA will be required to conduct this review with input from the Department of Labor, the Consumer Product Safety Commission and the International Trade Commission.
The bill directs the EPA to conduct a survey on the status of asbestos-containing products, such as roofing materials, brake pads and gaskets, which contain asbestos on purpose. EPA must also study contaminant-asbestos products, such as some insulation and horticultural products, which contain asbestos as a contaminant of another substance. The study will examine how people use these products and the extent to which people are exposed to harmful levels of asbestos. The study must be finalized within 18 months to inform the Blue Ribbon Panel and the education campaign.
Fourth, based on the results of the study, EPA shall conduct a public education campaign to increase awareness of the dangers posed by asbestos-containing products and contaminant-asbestos products, including those in homes and workplaces. The agency shall give priority to those products posing the greatest risk, as determined by the study required by the bill. The education campaign must be conducted within 2 years of passage of the bill.
EPA and the Consumer Product Safety Commission shall still be required to conduct a national education campaign about vermiculite insulation within 6 months of passage of the Act. As many as 35 million homes and businesses may contain asbestos-contaminated insulation made with vermiculite from Libby. This requirement is still in the bill despite EPA's recent announcement of an education campaign about vermiculite attic insulation. This will ensure EPA's long-term commitment to educating the public.
Finally, the Ban Asbestos in America Act increases the federal commitment to finding new treatments for the terrible diseases caused by asbestos. At least 2,000 people per year die from mesothelioma, a deadly cancer of the lining of the lungs and internal organs caused by exposure to asbestos. The legislation would direct the head of NIH to ``expand, intensify and coordinate programs for the conduct and support of research on diseases caused by exposure to asbestos.'' The Centers for Disease Control would be required to create a National Mesothelioma Registry to improve tracking of the disease, which in many cases goes undiagnosed and thus unrecorded. In addition, the bill creates 10 mesothelioma treatment centers around the country to improve treatments for and awareness of this fatal cancer.
Our hope is that by continuing to work together, we will build support for the Ban Asbestos in America Act. If we can get this legislation passed, fewer people will be exposed to asbestos, fewer people will contract asbestos diseases in the first place, and those who already have asbestos diseases will receive treatments to prolong and improve quality of life. I urge my colleagues to support this important legislation.
In the meantime, we should do all we can to ensure that the rules in place to protect workers, consumers and schoolchildren from asbestos are followed and are strengthened if necessary. We also need to make sure that Federal agencies are given adequate resources to fully implement Congress' many mandates.
I ask unanimous consent that the text of the Ban Asbestos in America Act of 2003 be printed in the Record.
Mr. President, today I rise to introduce legislation to do what should have been done decades ago: fully ban asbestos in the United States. I am introducing the Ban Asbestos in America Act of 2003 to…
Mr. President, today I rise to introduce legislation to do what should have been done decades ago: fully ban asbestos in the United States. I am introducing the Ban Asbestos in America Act of 2003 to prohibit this known carcinogen from being used to manufacture products in this country. The bill also bans imports of asbestos products from other countries where asbestos is still legal. I am pleased that Senators Baucus, Boxer, Cantwell, Dayton, Jeffords and Leahy are original cosponsors of this important legislation.
The primary purpose of the Ban Asbestos in America Act of 2003 is to require the Environmental Protection Agency, EPA, to ban the substance within two years. Most people think that asbestos has already been banned. In fact, in 1989 EPA finalized regulations to phase out and ban the substance by 1997. But in 1991, the 5th Circuit Court of Appeals overturned EPA's ban, arguing that EPA did not ``first evaluate and then reject the less burdensome alternatives'' under the Toxic Substances Control Act. Unfortunately, the first Bush Administration did not appeal the decision to the Supreme Court. While new uses of asbestos were banned, existing ones were not.
As a result, it is still legal in 2003 to construct buildings in the United States with asbestos cement shingles and to treat them with asbestos roof coatings. It is still legal to construct new water systems using asbestos cement pipes imported from other countries. It is still legal for cars and trucks to be made and serviced with asbestos brake pads and clutch facings.
Asbestos is still not banned, and as a result, we're still using it. According to the U.S. Geological Survey, in 2001, businesses in this country consumed 26 million pounds of chrysotile asbestos to make roofing products, gaskets, friction materials and other products. Last month, my staff walked into a local home improvement store and bought off the shelf roofing sealants made with asbestos. In addition, we are still importing asbestos products from other countries, many of which have less stringent environmental and public health standards.
Everyone knows that asbestos is harmful. The term asbestos, like arsenic, lead, mercury or DDT, is synonymous with poison. Asbestos may well be the most regulated toxic substance that federal and state agencies have ever dealt with. At least eleven different Federal statutes address asbestos. The EPA, Occupational Safety and Health Administration, OSHA, Mine Safety and Health Administration and Consumer Product Safety Commission are only some of the Federal agencies tasked with implementing rules to protect workers and consumers from the dangers of this substance.
But the sheer volume of rules and regulations in place does not guarantee that public health and the environment are being adequately protected. We have significant evidence suggesting that because asbestos is still not banned, we're still not safe from its dangers. I'd like to highlight some of this evidence for my colleagues.
First, workers in this country are still being exposed to dangerous levels of asbestos. According to OSHA, ``An estimated 1.3 million employees in construction and general industry face significant asbestos exposure on the job. Heaviest exposures occur in the construction industry, particularly during the removal of asbestos during renovation or demolition. Employees are also likely to be exposed during the manufacture of asbestos products, such as textiles, friction products, insulation, and other building materials, and during automotive brake and clutch repair work.''
It is important to remember that there is no known safe threshold level of asbestos exposure. OSHA's permissible exposure limit of 0.1 fibers per cubic centimeter is based on technical measurement limitations. OSHA's limit assumes that workers exposed to this concentration have a lifetime exposure risk of 3 to 5 in 1,000 for cancer and 2 in 1,000 for asbestosis. This is a very high risk compared to the cancer risk levels that are considered acceptable for some environmental cleanups.
The extent to which workers are exposed to dangerous levels of asbestos is especially troublesome when one considers the frequency with which OSHA's standards are violated. On July 31, 2001, I chaired a Senate Health, Education, Labor and Pensions hearing on asbestos and workplace safety. At the hearing I learned from OSHA that since 1995, the agency had cited employers for violations of its asbestos standards 15,691 times. This is astounding given the known dangers of asbestos and the high risks of disease even when OSHA's exposure limit is being met.
As follow-up to the hearing, I asked OSHA to provide more information about asbestos-related violations. In an October 17, 2001 letter to me, Mr. John Henshaw, Assistant Secretary for Occupational Safety and Health, wrote that between fiscal year 1996 and fiscal year 2001, OSHA conducted a total of 190,971 inspections generating a total of 427,786 violations. Of these, 3,000 inspections and 15,691 violations involved asbestos. According to Mr. Henshaw, about 2 percent of inspections and 4 percent of violations were asbestos-related. In his letter to me, Mr. Henshaw wrote, ``OSHA does not consider any level to be an acceptable noncompliance level. We strive for 100 percent compliance.'' Despite OSHA's best intentions, workers are still being exposed to dangerous levels of asbestos.
It is also important to consider that the vast majority of workplaces where asbestos exposure occurs, such as construction jobs and auto repair shops, are not regularly inspected by OSHA. The Administration conducts inspections only in response to complaints or as a result of referrals from law enforcement or the media. Many more violations of the standard occur in the real world than are actually recorded by regulators. Many employees likely do not contact OSHA about potential asbestos exposure on the job because they think asbestos has been banned long ago and is no longer a problem.
But asbestos in the workplace is clearly still a problem. Recent news investigations provide more evidence that workers are being exposed to dangerous levels of this mineral. According to an article in the Seattle Post-Intelligencer on November 16, 2000, ``During the past three months, the P-I collected samples of dust from floors, work areas and tool bins in 31 brake-repair garages in Baltimore, Boston, Chicago, Denver, Richmond, Seattle, and Washington, D.C. Asbestos, almost exclusively chrysotile, which has been used for decades in brakes, was detected in 21 of the locations. The amount of asbestos in the dust ranged from 2.26 percent to 63.8 percent.''
When dust with these concentrations of asbestos in them is disturbed, airborne concentrations of asbestos occur that are well above OSHA's permissible exposure limit of 0.1 fiber per cubic centimeter. Under current OSHA regulations, if airborne asbestos concentrations exceed this level, employers must conduct air monitoring, take measures to reduce asbestos emissions, post warning signs and record concentrations of airborne asbestos. Workers are supposed to wear respirators and protective clothing and are required to undergo long term medical monitoring.
Now I recognize that much of the exposure to asbestos in the workplace comes from asbestos products installed years, and in many cases, decades ago. By one estimate, about 30 million tons of asbestos was used in this country between 1900 and 1980. Asbestos in place, in our buildings, schools and homes, will be with us for decades to come.
But given the known dangers of this mineral, why are we still using it? Why are we still adding it to products on purpose when there are perfectly acceptable substitutes? In retrospect, it is tragic that asbestos was so widely used during the 20th century, for the
economic and public health impacts have been disastrous. One very important step in overcoming the problems caused by asbestos is to stop adding to the problem--however incrementally--by continuing to use this dangerous mineral in products on purpose.
I'd like to point out some additional evidence supporting the need to ban asbestos in the United States and to raise awareness about this issue. Most of my colleagues are familiar with the tragedy in Libby, MT, where hundreds of workers and their families suffer from asbestos- related diseases caused by exposure to asbestos-tainted vermiculite.
For decades, the W.R. Grace mine in Libby supplied about 80 percent of the vermiculite used in this country. W.R. Grace very successfully marketed its product, without any warning labels, even though the company was well aware its product was contaminated with this known carcinogen. Asbestos-contaminated ore was shipped to more than 300 sites around the country for processing and use in industrial and consumer products. According to the EPA, 14 of these sites are so contaminated with asbestos that they still need to be cleaned up, even though the Libby mine closed in 1990. While this is a problem that came from a small mining town in Montana, the ramifications and consequences are clearly national in scope.
In addition, vermiculite from Libby is still around and is still a threat to public health. It is estimated that tens of millions of homes, schools and businesses contain insulation made with Libby vermiculite, known as Zonolite. A recent study conducted for EPA, entitled Asbestos Exposure Assessment for Vermiculite Attic Insulation, found that Zonolite in homes today contains up to 2 percent asbestos. This study included tests on Zonolite insulation from Seattle Public Utilities and from a home in Washington State. It found that when this insulation was disturbed, airborne concentrations of 3.3 asbestos fibers per cubic centimeters were measured. In other words, handling Zonolite asbestos can cause levels of asbestos in the air that significantly exceed OSHA's exposure limit for workers. Even more troubling, perhaps, the study found ``vermiculite that tests non-detect for asbestos by bulk analysis can still generate airborne asbestos concentrations when disturbed.'' When vermiculite without significant amounts of asbestos in bulk was disturbed, concentrations of asbestos in the air up to 0.5 fibers per cubic centimeters were detected. This means that even vermiculite with only trace amounts of asbestos in bulk can generate unhealthy concentrations of asbestos in the air.
Yesterday EPA launched a national consumer education campaign warning people not to disturb Zonolite attic insulation if they have it in their homes. The agency also warned people not to let their children play in attics with vermiculite for fear of asbestos exposure. EPA has developed a consumer education brochure and has created an asbestos hotline for people to call for more information. The Agency for Toxic Substances and Disease Registry and National Institute for Occupational Safety and Health have joined EPA in this education effort by creating materials to educate consumers and workers about the dangers of asbestos-contaminated vermiculite.
While we need to ensure that we are no longer adding asbestos to our products on purpose, we also need to ensure that asbestos in harmful concentrations isn't ending up in our consumer products by accident. I am glad EPA, ATSDR and NIOSH are now proactively reaching out to consumers and workers to warn them to stay away from vermiculite attic insulation. This is an important first step in dealing with just one aspect of the legacy created by W.R. Grace in Libby.
There is another important reason to ban asbestos that I would like to share with my colleagues. As I mentioned previously, the United States is still importing products that contain asbestos. Unfortunately, we do not have precise statistics on which products coming into this country contain the deadly mineral. The Department of Commerce's import database does not distinguish between asbestos- containing products and products containing asbestos substitutes. According to the U.S. International Trade Commission, in 2002 this country imported more than 44,000 tons of asbestos-cement products, some of which may have contained cellulose instead of asbestos.
With increased globalization and international trade, U.S. imports of asbestos containing consumer and industrial products will continue to rise--unless we prohibit these products from crossing our borders in the first place.
Although we do not have accurate numbers for the extent to which asbestos products are flowing across our borders, we do know that asbestos is being heavily marketed to developing countries. According to an August 2, 1999 USA Today article, ``As asbestos demand has plummeted in the industrialized world the past 25 years, it has soared in many developing nations and formerly communist countries. Its use in these countries is largely unregulated, haphazard and deadly.''
A more recent editorial in the Canadian Medical Association Journal compares the asbestos industry to the tobacco industry. The February 20, 2001 article by Doctors Joseph LaDou, Philip Landrigan, John C. Bailar III, Vito Foa and Arthur Frank reads:
``The commercial tactics of the asbestos industry are very similar to those of the tobacco industry. In the absence of international sanctions, losses resulting from reduced cigarette consumption in the developed countries are offset by heavy selling to developing nations. In a similar fashion, the developed world has responded to the asbestos health catastrophe with a progressive ban on the use of asbestos. In response, the asbestos industry is progressively transferring its commercial activities and the health hazards to the developing countries.''
Banning asbestos in the United States sends an important message to the rest of the world. The asbestos industry will no longer be able to justify its marketing to developing countries by pointing out that asbestos is still legal in the U.S., and therefore, it must be safe. More than 30 countries have already banned asbestos, and it is time for this country to follow suit. It is our moral responsibility as the world's strongest economy, the most powerful Nation and a leader in environmental protection and public health to ban this harmful substance.
That is why today I am introducing the Ban Asbestos in America Act. The legislation has five main parts. First, this bill protects public health by doing what the EPA tried to do 14 years ago: ban asbestos in the United States. The legislation requires EPA to ban it within two years of passage of the Act. As under the regulations EPA finalized in 1989, companies may file for an exemption to the ban if there is no substitute material available.
Second, the bill requires EPA to convene a Blue Ribbon Panel on asbestos policy and to have the National Academy of Sciences conduct an asbestos study. In response to the 2001 EPA Inspector General's report on Libby, Montana, the EPA promised to convene a Blue Ribbon Panel on asbestos and non-regulated fibers. But instead of convening a high level panel, EPA hired a non-profit organization, the Global Environment and Technology Foundation, to develop an asbestos policies focus group. Just yesterday EPA released GETF's Asbestos Strategies Report. I am very pleased that the Report recommends several aspects of the Ban Asbestos in America Act, including that Congress pass legislation to ban asbestos.
While the recommendations are certainly helpful in providing guidance to EPA, Congress and other federal agencies on the next steps to address asbestos, the GETF report does not replace a full fledged Blue Ribbon Panel. The Ban Asbestos in America Act codifies creation of a Blue Ribbon Panel as EPA first committed to in 2001. The panel will include participation from the Department of Labor and the Consumer Product Safety Commission. It will review the current laws and rules in place to protect workers and consumers, and make recommendations for improving protections within 2 years of passage of the Act.
In addition, the bill calls for EPA to have the NAS conduct a study on the current state of the science relating to the human health effects of exposure to asbestos and other durable fibers. The NAS study shall also include recommendations for a uniform system of asbestos exposure standards and for a uniform system to create protocols to
detect and measure asbestos. As I mentioned previously, asbestos is regulated under multiple statutes. There are different standards within EPA and across Federal agencies, and agencies rely on different protocols to identify the substance. The NAS shall be required to submit the study to EPA, other federal agencies and Congress within 18 months of passage of the Act.
Third, the legislation requires a survey to determine which products contain asbestos, either on purpose or as a contaminant. EPA will be required to conduct this review with input from the Department of Labor, the Consumer Product Safety Commission and the International Trade Commission.
The bill directs the EPA to conduct a survey on the status of asbestos-containing products, such as roofing materials, brake pads and gaskets, which contain asbestos on purpose. EPA must also study contaminant-asbestos products, such as some insulation and horticultural products, which contain asbestos as a contaminant of another substance. The study will examine how people use these products and the extent to which people are exposed to harmful levels of asbestos. The study must be finalized within 18 months to inform the Blue Ribbon Panel and the education campaign.
Fourth, based on the results of the study, EPA shall conduct a public education campaign to increase awareness of the dangers posed by asbestos-containing products and contaminant-asbestos products, including those in homes and workplaces. The agency shall give priority to those products posing the greatest risk, as determined by the study required by the bill. The education campaign must be conducted within 2 years of passage of the bill.
EPA and the Consumer Product Safety Commission shall still be required to conduct a national education campaign about vermiculite insulation within 6 months of passage of the Act. As many as 35 million homes and businesses may contain asbestos-contaminated insulation made with vermiculite from Libby. This requirement is still in the bill despite EPA's recent announcement of an education campaign about vermiculite attic insulation. This will ensure EPA's long-term commitment to educating the public.
Finally, the Ban Asbestos in America Act increases the federal commitment to finding new treatments for the terrible diseases caused by asbestos. At least 2,000 people per year die from mesothelioma, a deadly cancer of the lining of the lungs and internal organs caused by exposure to asbestos. The legislation would direct the head of NIH to ``expand, intensify and coordinate programs for the conduct and support of research on diseases caused by exposure to asbestos.'' The Centers for Disease Control would be required to create a National Mesothelioma Registry to improve tracking of the disease, which in many cases goes undiagnosed and thus unrecorded. In addition, the bill creates 10 mesothelioma treatment centers around the country to improve treatments for and awareness of this fatal cancer.
Our hope is that by continuing to work together, we will build support for the Ban Asbestos in America Act. If we can get this legislation passed, fewer people will be exposed to asbestos, fewer people will contract asbestos diseases in the first place, and those who already have asbestos diseases will receive treatments to prolong and improve quality of life. I urge my colleagues to support this important legislation.
In the meantime, we should do all we can to ensure that the rules in place to protect workers, consumers and schoolchildren from asbestos are followed and are strengthened if necessary. We also need to make sure that Federal agencies are given adequate resources to fully implement Congress' many mandates.
I ask unanimous consent that the text of the Ban Asbestos in America Act of 2003 be printed in the Record.
Mr. President, I rise today with my colleague, Ms. Snowe, to introduce the Fishing Quota Act of 2003, legislation to establish national criteria governing the use of individual fishing quota IFQ…
Mr. President, I rise today with my colleague, Ms. Snowe, to introduce the Fishing Quota Act of 2003, legislation to establish national criteria governing the use of individual fishing quota IFQ systems. Work began in earnest on this bipartisan bill in the Commerce Committee last spring, as the expiration of the national moratorium on the use of IFQs approached, and small boat fishermen voiced concerns that existing legislative criteria governing the use of IFQs would not offer sufficient protection to communities. I would like to thank Subcommittee Chair Snowe for her efforts to work with me and with other members of the Commerce Committee on this legislation, which draws from separate IFQ legislation that both Senator Snowe and I introduced beginning in the 106th Congress.
The IFQ moratorium established under the 1996 Sustainable Fisheries Act was set to expire September 30, 2000. Senator Snowe and I supported a 2-year extension of that moratorium to allow for hearings and full consultation with affected groups on the issues surrounding IFQs. Our discussions focused on the need to provide regional flexibility to use IFQs as a management tool, while providing national ``rules of the road.'' Such rules of the road would ensure IFQ systems developed after expiration of the moratorium are adopted with the support of the fishery, allocate quota fairly and equitably, address region-specific needs, further the conservation and management goals of the Magnuson- Stevens Act, prevent consolidation of quota, address the needs of small fishing communities, and recognize both the public nature of the resource and that issuance of an IFQ does not give rise to a compensable property right.
To develop such rules, we worked with fellow Commerce Committee members, including Senators Breaux, Lott, Boxer, Stevens, and Cantwell, consulted with interested groups, and obtained technical advice from the National Marine Fisheries Service. While New England has historically been opposed to IFQs, other regions are interested in utilizing IFQ programs in certain fisheries. I believe the resulting bill provides a balance between the need to provide national policy guidance that considers the concerns of communities and harvesters, but allows for development of IFQ systems, where appropriate, on a fishery- by-fishery basis. This preserves the balanced regional approach to fishery management that Congress intended in the Magnuson-Stevens Act. I also want to clarify that this bill does not authorize the establishment of ``processor quota,'' and relates only to issuance of harvester quota.
The bill Senator Snowe and I are introducing today sets forth a set of national criteria that councils wishing to adopt IFQs would follow. Importantly, this bill contains a provision that directs councils to consider the use of community or area-based approaches and strategies that would preserve the vitality of small fishing communities, including the allocation of quota to a fishing community. It also directs councils to consider use of other management measures, including those that would facilitate formation of fishery cooperative arrangements, taking account of the dependence of coastal communities on these fisheries.
This bill addresses many of the concerns raised by fishermen, and I understand the many concerns of small fisherman in New England regarding the use of IFQs. I believe this bill gives fishermen the power to decide whether to implement an IFQ program and ensures that those who do will operate under a fair system. First, no region could implement an IFQ system without approval of a two-thirds majority of eligible permit holders through a referendum process run by the Secretary of Commerce. In addition, any IFQ system developed under the legislation would have to meet a set of national criteria. These national criteria would include: (1) ensuring a fair and equitable initial allocation of quota, including the establishment of an appeals process for qualification and allocation decisions, taking into account present and historic participation in the fishery; (2) establishing limits necessary to prevent inequitable concentration of quota share; (3) preventing any person from acquiring an ``excessive share''; (4) considering allocation of a portion of the annual harvest specifically to small fishermen, skippers, crew members, fishing communities, or categories of vessels or gear types; and (5) providing for revocation of quota if the owner is no longer an active fisherman.
I also believe this bill responds to concerns that IFQ systems would undermine the national interest in conserving fishery resources held in the public trust. In order to respond to those concerns, the bill would: (1) specify that an IFQ is a permit under the Magnuson-Stevens Act and does not confer any right of compensation or any right, title or interest to any fish before it is harvested; (2) established that the quota expires after 10 years, unless extended by a fishery management plan; (3) require that the systems promote management measures to improve the conservation and management of the fishery, including reduction of bycatch; (4) provide for regular review and evaluation of the system, including specifying actions to be taken for any failure to meet the criteria; (5) require that the systems provide for effective enforcement, monitoring, and management, including use of observers; and (6) require that quota be revoked from individuals found to be subject to civil penalties under section 308 of the Magnuson- Stevens Act.
The bill also would require a 5-year recurring independent review of IFQ systems by the National Research Council, to: (1) evaluate the effectiveness of such systems and determine who the systems contribute to improved management, conservation and safety; (2) evaluate the social, economic and biological consequences of the systems, including economic impacts on fishing communities; (3) evaluate the costs of implementation; and (4) provide recommendations to ensure the systems meet Magnuson-Stevens Act requirements and the goals of the plans.
I believe this legislation provides guidelines for the use of IFQs that will help ensure the health of our marine fisheries. During the last reauthorization of the Magnuson-Stevens Act, our
Nation's fisheries were at a crossroads, and action was required to remedy our marine resource management problems, to preserve the way of life in our coastal communities, and to promote the sustainable use and conservation of our marine resources for future generations and for the economic good of the Nation. We must stay the course, and this bill will help us do just that. I remain committed to the goal of establishing biologically and economically sustainable fisheries so that fishing will continue to be an important part of the culture and economy of coastal communities throughout Massachusetts, as well as the economy of the Nation.
Mr. President, there are now nearly 200,000 American veterans today who are forced to wait at least 6 months for their first visit with a Department of Veterans Affairs physician. Despite having served their country and been promised health benefits, these veterans are receiving deferred and rationed health care because of chronic underfunding and bureaucratic red tape. It amounts to a broken promise with men and women who have served in our armed forces. To help ensure that our veterans receive the care they need and have been guaranteed, today I am pleased to introduce the Veterans' Prescription Drug Reform Act of 2003.
Veterans enrolled in the VA health care program are entitled to a prescription drug benefit. This is an essential benefit given the importance of pharmaceuticals in health care today. However, there's a bureaucratic catch: the benefit only applies to prescriptions written by a VA physician, and there are nearly 200,000 veterans who now wait 6 months or longer for their first visit with a VA physician. For those veterans in need of medicine and waiting months on end to see a VA physician, the benefit has little value.
The VA has reported to Congress that, while it has no exact figure, it estimates that tens of thousands of the veterans now on the waiting list are there primarily to access their prescription drug benefit. In many of these cases, veterans have already seen a private physician and have a prescription. But in order to use the VA pharmacy and receive their prescription benefit, these individuals must duplicate their health care visits and see a VA physician. This delays health care benefits for far too many veterans.
The Veterans' Prescription Drug Reform Act of 2003 would permit veterans already on the waiting list to fill a prescription written by a private physician at the VA pharmacy.
Specifically, the Veterans' Prescription Drug Reform Act of 2003 would give the Secretary of Veterans Affairs the authority to permit veterans on the waiting list for their first appointment with a VA physician at the date of enactment to use the VA pharmacy to fill prescriptions written by a private physician. It would also preserve the core healthcare mission of the VA by limiting this initiative only to those currently waiting for their first appointment. The proposal calls for a report to Congress in 1 year so that its potential expansion can be evaluated.
The Secretary of Veterans Affairs has told Congress that he would support such a proposal, and I look forward to working with Senator Harkin, who joins me in sponsoring this legislation, and my other colleagues in the Senate on this common-sense approach to reducing the lengthy wait-lines for veterans' healthcare.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I am pleased today to join with my colleagues, Senators Johnson and Smith, as well as the cosponsors of our legislation, Senators Akaka, Baucus, Bingaman, Cantwell, Daschle, Murray, and Stabenow in introducing the Native American Small Business Development Act.
As many of my colleagues are aware, last Congress the Committee on Small Business and Entrepreneurship unanimously passed nearly identical legislation, S. 2335, yet the bill was not taken up by the full Senate. Today, Senator Johnson, Senator Smith and I are reintroducing this bill because we recognize that there is an even a greater need for this legislation on tribal lands across the Nation. The economy continues to slump, access to capital is even more limited, and state funding for small business initiatives is being pulled back.
According to a report released by the U.S. Census Bureau, the ``three year average poverty rate for American Indians and Alaska Natives [from 1998-2000] was 25.9 percent. Higher than for any other race groups.'' With an unemployment rate well above the national average and household income at just three-quarters of the national average, Native American communities need a commitment from the Federal government that we will help them, particularly during these difficult economic times. To reaffirm this commitment, the Johnson-Kerry-Smith bill provides Native Americans the resources they need to take advantage of the opportunities of entrepreneurship.
Mr. President, this legislation bears the same name as legislation that recently passed the House, H.R. 1166, which was reintroduced by Congressman Tom Udall, a recognized leader in promoting the interests of American Indians. I would like to thank Congressman Udall for his work in stewarding the Native American Small Business Development Act through the House, this Congress and last, and for his assistance in working with Senators Johnson and Smith and me in drafting the Senate version of our legislation. And I would specifically like to thank Senator Smith for his continued support on this issue.
I would again like to thank the National Indian Business Association, the National Center for American Indian Enterprise Development, the Association of Small Business Development Centers, the Oregon Native American Business Entrepreneurial Network (ONABEN), Native American Management Services, Inc., and all of the tribes that met with us or provided information to help in the drafting of this legislation.
The Senate version of the Native American Small Business Development Act, while incorporating the heart of the Udall legislation, is more comprehensive and provides greater assistance to Native American communities. Senator Johnson, who serves on the Indian Affairs Committee, and I, as the lead Democrat on the Senate Committee on Small Business and Entrepreneurship, were able to combine the resources and experiences of our committees in developing this legislation.
Mr. President, our need to fashion a more comprehensive business assistance package for Native American small businesses stems in part from a growing lack of commitment from the Small Business Administration (SBA) to our Native American communities under this Administration.
While I applaud the Bush Administration for responding to congressional requests by including $1 million in the Administration's FY 2003 budget request for Native American outreach, I was disappointed that it did not seek the full level of $2.5 million requested in a letter I sent with my colleagues Senators Daschle, Wellstone, Johnson, Bingaman and Baucus. Our request specifically sought funding for the SBA's Tribal Business Information Center (TBIC) program, an initiative started and successfully operated under the Clinton Administration. The TBIC program was designed to address the unique conditions faced by American Indians when they seek to start or expand small businesses.
Mr. President, I am disappointed that the Administration has eliminated all funding for Native American outreach in FY2004. With an average unemployment rate on reservations as high as 43 percent, it is inconceivable that two years of outreach is sufficient to have met our shared goal of building sustainable economic opportunities in those communities.
Mr. President, I do not believe that anyone in this Congress would dispute that economic development in Indian Country has often been difficult to achieve and that one important way to help American Indians who live on reservations is to provide them with assistance to open and run their own small businesses. Helping Native Americans open and run small businesses not only instills a sense of pride in the owner and his or her community, it also provides much-needed job opportunities, as well as other economic benefits.
Although underfunded, the TBIC program has provided assistance to a number of small businesses on Indian reservations. TBICs have the support of the American Indian communities they serve because they provide desperately
needed, culturally tailored business development assistance in those communities. The Administration should be seeking to strengthen its commitment to programs that assist Native American communities. Unfortunately, the SBA cut off TBIC funding on March 31, 2002, and now 14 months later, has not met a request by a bipartisan group of Senators to begin the reprogramming process in order to keep the TBICs open.
The Native American Small Business Development Act will ensure that the SBA's programs to assist Native American communities cannot be dissolved by making the SBA's Office of Native American Affairs (ONAA) and its Assistant Administrator permanent. Our legislation would also create a statutory grant program, known as the Native American Development grant program, to assist Native Americans. It would also establish two pilot programs to try new means of assisting Native American communities and require Native American communities to be consulted regarding the future of SBA programs designed to assist them. In short, this legislation will ensure that our Native American communities receive the adequate assistance they need to help start and grow small businesses.
The ONAA will be responsible for helping Native Americans and Native American communities start, operate, and grow small businesses; develop management and technical skills; seek out Federal procurement opportunities; increase employment opportunities through the start and expansion of small business concerns; and increase their access to capital markets.
To be selected to serve as the Assistant Administrator for ONAA, a candidate must have knowledge of Native American cultures and experience providing culturally tailored small business development assistance to Native Americans. Under our legislation, the Assistant Administrator would be statutorily required to consult with Tribal Colleges and Tribal Governments, Alaska Native Corporations (ANC) and Native Hawaiian Organizations (NHO) when carrying out responsibilities under this legislation, which would give Native American communities a true voice within the SBA. The Assistant Administrator for ONAA would be responsible for administering the Native American Development program and the pilot programs created by the Native American Small Business Development Act.
The Native American Development program is designed to be the SBA's primary program for providing business development assistance to Native American communities. To offer this support, to the SBA will provide financial assistance in establish and keep Native American Business Centers (NABC) in operation. Financial assistance under the Native American Development program would be available to Tribal Governments and Tribal Colleges. Unlike the SBA's TBIC program, however, ANCs and NHOs would also be eligible for the grants.
NABCs would address the unique conditions faced by reservation-based American Indians, as well as Native Hawaiians and Native Alaskans, in their efforts to create, develop and expand small business concerns. Grant funding would be used by the NABCs to provide culturally tailored financial education assistance, management education assistance, and marketing education assistance.
The first pilot program under the legislation establishes a Native American development grant. This grant is modeled after the Udall legislation and is designed to bring the expertise of SBA's Small Business Development Centers (SBDC) to Native American Communities. Additionally, any private nonprofit organization, which has members of an Indian tribe comprising a majority of its board of governors or is an NHO or an ANC, may also apply for the grant. Nonprofits were included in the Senate version thanks to the thoughtful input of Senator Cantwell. Many American Indian communities in Washington state are served by an organization called ONABEN, which provides SBDC-like services to Native American communities in Washington, Oregon, Idaho, and California. Organizations like ONABEN, which also has the strong support of Senator Smith, should be encouraged to continue their good work assisting Native American communities, and including them in the grant program available to SBDCs was an important addition to the legislation.
Finally, our legislation establishes a second pilot program to try a unique experiment in Indian Country. Grant funding would be made available to establish American Indian Tribal Assistance Centers. These centers will consist of joint entitles, such as a partnership between an NABC, a Native American development center (which receive grants from the Department of Commerce) and possibly an SBDC. The purpose of this grant is to coordinate experts from various entities to provide culturally tailored business development assistance to prospective and current owners of small business concerns on or near Tribal Lands.
Mr. President, I would again like to thank Senators Johnson and Smith and all of the cosponsors of this important legislation to assist our Native American communities. I would also, again like to thank Congressman Udall for taking the lead in the House on providing critical assistance for small businesses in Native American communities. I would urge all of my colleagues to cosponsor this legislation to help us fulfill our commitment to Native American communities.
Madam President, what is the business before the Senate? Madam President, I want to take a few minutes and talk about an issue off the pending matter, if I may, before the Senate. While it may not be…
Madam President, what is the business before the Senate?
Madam President, I want to take a few minutes and talk about an issue off the pending matter, if I may, before the Senate. While it may not be germane to the subject matter before the Senate, the matter I want to talk about is extremely germane to the American public and what they are interested in. That is education. I particularly want to focus for a few minutes on higher education.
We are now coming into the months of April and May when students will be wrapping up their academic year and taking exams. Those who are in their last year will be graduating and going out into the private sector or graduate school.
As we focus on graduation and the termination of an academic year, I think it is important to take stock of the financial availability of most students to access higher education in this country, and what we are doing about it as we conclude this academic year. It is also important to ask what will be available next year to students who are either starting higher education or are continuing their higher education.
What are the economic challenges these individuals and their families face as it relates to affording college? I want to spend a couple of minutes describing what the present situation is as it relates to college cost, how important it is to have access to college, and where we are today in our ability to try to make college more accessible and more affordable.
In the 21st century we must have the best educated and best prepared generation of Americans we have ever produced if we are going to be highly competitive in a global marketplace and have a growing and expanding economy to produce goods and services of increasing value; that is, more technology and more sophistication to offer the 95 percent of the population which lives outside the United States all over this globe.
We have seen tuition and fees at public colleges and universities go up 26 percent over the last 38 months. Since President Bush took office on January 20 of 2001, tuition and fees at public colleges and universities has gone up more than 25 percent--close to 26 percent in 38 months.
Last year alone, on average, tuition at a public university rose 14 percent, and over 10 percent in my own State of Connecticut. The average total cost of attending a public 4-year college is now over $9,000, and for private colleges the average cost is $24,000.
As tuition rates increase, so does the portion of a family's income needed to pay tuition. On average, 29 percent of a family's income goes toward public university tuition and 41 percent goes toward private university tuition. Just think about that: almost 30 percent of a family's income paying a public college tuition and more than 40 percent to go to a private university or college. In comparison, a family's mortgage payment represents 32 percent of annual income. Education is now eating up more of a family budget than a home mortgage--the largest single investment most families ever make is owning their own home.
It is estimated that approximately 200,000 college-ready high school graduates will not pursue higher education this year because they do not have the resources to do it and don't have access to the various programs that may provide them some assistance.
Apart from initial affordability, students also often graduate with huge
amounts of debt. In Connecticut, the average student graduates in 4 years $15,000 in debt. The numbers are rather clear.
We are seeing a tremendous economic burden growing with each and every passing year, for families and individuals who wish to go on and get that absolutely critical higher education they need and we need them to have.
Pell grants are such a great cornerstone of the Federal financial aid system, but they are shrinking in value. Pell grants originally covered 80 percent of the cost of attending a public university. Today, at $4,050, they cover only 30 percent; and at a 4-year private college, 16 percent. Imagine that, from 80 percent down to 34 percent.
The maximum Pell amount remains stagnant at a time when tuition is going up, people are losing jobs and extra income, and when higher education is increasingly the ticket to a better life not only for the students but for us, as well.
Today, the average low-income student has an annual unmet need of almost $4,000 in college expenses, costs not covered by grants, loans, work, or family savings. These are the students that an increase in the Pell grant would most directly help.
What are we doing about this? The President's budget is clearly not in the best interest, at all, of serving this critical need that, by all accounts, we admit is necessary. I don't know of anyone who does not go back to their respective States and talk about the importance of education, the importance particularly of higher education, that people have the ability to earn that degree.
I am sure every one of my colleagues has said exactly the words I am about to share, or something similar: No one ought to be denied a higher education because they lack the financial resources. It goes to the depth of a person's drive, the depth of their character, the depth of their ambition. It ought not be the depth of their parents' or their pockets that determines whether someone can have access to a higher education. I am sure we all feel that way.
I am happy to yield to my colleague.
In response to my colleague, I very clearly remember supporting the senior Senator from Massachusetts and his amendment that would have increased the higher education budget, including, obviously, an increase in the Pell grants to meet exactly what the commitment of the President had been on this subject matter. We were unable to get that.
It is important to point out to people the effects. We have now had a freeze in Pell grants over the last 3 years, despite the President's campaign promise to raise them. I mentioned earlier that a Pell grant now pays about 34 percent of the cost of public higher education. It was at 80 percent when it was originally passed.
Let me also state what shrinking resources and rising costs have done. My colleague from Massachusetts has pointed out that the average student now finishes college in excess of $17,000 debt. As a result of freezing the Pell grant over the last 3 years, and the administration's proposal to raise freshman loan limits, we are now told that student debt could increase nationally by almost $5 billion. If we take student debt, that will now grow as a result of not having Pell grants trying to keep some pace with the increased cost of education, if students have to take out more loans, we will have student debt amount to $5 billion more nationally than presently is the case.
The President's budget also froze funding for work-study programs in addition to Pell grants. We watched, over the last 38 months, tuition costs go up at public universities 26 percent. Costs go up and the President's budget says: No, no, I am not going to give you a nickel more for Pell grants. Freeze work-study. Freeze Pell grants. Not a penny more for higher education despite costs going up and here is $5 billion more debt to shoulder as you leave higher education to go out and try to get a job, get into the workforce, raise a family.
I don't know of anyone who believes that is a sound investment in the 21st century. I thank my colleague for raising those points.
Madam President, the Senator, again, is exactly correct. As I noted earlier, we are talking about families who are middle-income families, who are lower middle-income families who are out there struggling to make ends meet. As I pointed out, the increased cost of a public education, as well as a private education, in 38 months has gone through the ceiling, outpacing the cost of anything else. Inflation has been relatively flat in the last number of months with the economy where it is. But yet in the midst of all that, we have seen a 26- percent increase in the cost of going to a private college or university, and a 14-percent increase to go to a public institution.
So we have seen this tremendous increase in a family's income going toward education and tuition. As I pointed out earlier, 29 percent of a family's income goes to pay for public university tuition; 41 percent goes to pay for private university tuition.
The debt these kids are faced with, their families are faced with, is an additional strain on families who are already paying so much to see to it their kids can get the education they need. And we know so clearly the importance of education. You find yourself almost wondering why you have to say this. I don't know of anyone who believes that for a single second this country's ability to maintain itself in a leadership position economically and politically can be sustained without the proper education. Thomas Jefferson said, 200 years ago this year, in 1804, any nation that ever expects to be ignorant and free expects what never was and what never possibly could be.
If you believe that had validity in 1804, you certainly must believe that in 2004 it has even more validity, not only in terms of embracing and supporting our constitutional principles, but also as to the importance of being able to get the education to produce the goods and services of high value which 5 percent of the world's population, which lives in this country, will be able to market to the 95 percent of the world's population which lives outside this country.
Anyone who believes for a single second that you can deny 200,000 young people, as you will this year--almost a quarter of a million young people--the opportunity to go on to higher education because we cannot come up with a few extra bucks to put into a Pell Grant Program or a Work-Study Program--if you think America benefits from that, then you are deluding yourself. This will be the first generation where the older generation is actually cutting back on its commitments in its attempts to provide access to higher education for people in this country.
I hope in the coming days as we move through the appropriations process and the like, our colleagues will find it possible to break this freezing of the budgets to make it possible for students who are completing this academic year and thinking about next year, or thinking about graduate school, or leaving high school and wanting to go on to college--that the Congress of the United States, the President of the United States, would stand up and say: We are going to do what we can. We are going to meet that promise I made in New Hampshire in the fall of 2000 when I promised I would increase Pell grants to more than $5,000 per child. I am going to meet that promise before this term is over.
My hope is we will achieve that particular result.
I see my colleague from Rhode Island.
Yes.
Madam President, I thank my colleague from Rhode Island. He very appropriately points out he succeeded Claiborne Pell, whom the Senator from Massachusetts and I had the great privilege of serving with. The Senator from Rhode Island knows the wonderful contribution he made to millions of young Americans, Americans of all ages, but particularly young Americans.
I was not aware of what my colleague from Rhode Island told me. I think that is extremely important information. I would hope, as I am sure he does, the conferees and the American public would let conferees and the leadership here in Congress know this shortfall must not be allowed to exist if we are going to have any hope at all of meeting some of the obligations we have.
I might ask my colleague from Rhode Island, give us some indication how that is working now. Does he believe that is going to be the case? And what would be the implications of that?
Madam President, I believe the Senator has the floor.
Madam President, I am responding to a question. Without yielding my right to the floor, I am asking my colleague from Rhode Island to respond to a question.
Again, Madam President, I am very grateful to my colleague from Rhode Island for pointing out matters I had not addressed; that is, these other areas of higher education.
This is an assault on higher education. But more importantly, it is an assault on young people in this country who are going to provide the well-being. I always like to point out this
Nation historically, even during times of our most significant crises, has found a time and a place to support higher education. I have often pointed out one of the first acts of Congress in 1789, as we were still struggling to get on our feet, was the Northwest Ordinance, which set aside lands for education. It was a rather remarkable accomplishment. Think of all the things the first Congress had to deal with. Education was one of the top priorities on their list.
Then right in the middle of the Civil War--imagine the country divided, wondering whether we would survive as a nation--the Congress of the United States passed something called the Morrill Act, which was the land grant colleges. I believe the University of Rhode Island--I know the University of Connecticut got started as a land grant college, and I know colleges all across this country got their start because of the Morrill Act. Congress found the money during the great Civil War to fund higher education.
Even before the end of World War II, before the defeat of nazism and the Japanese empire, the Congress passed the GI Bill. And think, if you will, of the investment made in those years, coming off the war years, and how we have benefitted, when you consider a generation of Americans which was able to get an education and go on, and how we have been paid back a thousandfold by the contributions of a generation of young Americans who fought in World War II, who were able to get an education, and then provide the kind of innovation and creativity and jobs and incomes that has helped us grow to the great Nation we are in terms of economic strength.
So there was the Northwest Ordinance, the Morrill Act, the GI bill, generations that understood the importance of investing in education. Here we are in the 21st century, we have a President that not only doesn't have an idea about how to increase resources for higher education, he wants to cut back on what we have. How do you explain that to the American people when we are trying to increase the opportunities for higher education?
I thank my colleagues.
I would say to my colleague, he has hit the nail on the head in talking about elementary and secondary education, beginning with, obviously, Head Start and preschool efforts. He has cited the numbers, and he is absolutely correct. But more than the numbers, when you start to talk about the dollar amounts, I think you can probably see the eyes of even the most determined listener to glaze over. When I talk about an $8.6 billion shortfall to No Child Left Behind this year alone, shortchanged more than $26 billion since passage, I am disturbed. It is the children and the families themselves that feel the shortfalls. Families lacking the kinds of investments that we know make a difference in their children's educational lives.
We know categorically, after more than a quarter of a century of watching, the benefits of the Head Start Program. It gives them that even start. When they enter kindergarten or the first grade, it puts them on a level playing field with other children who come from slightly more advantaged situations than they may have.
We know that getting Title I money into our school districts has made a huge difference to schools, and certainly we need to be doing far better on special education. But to give some idea of what these shortfalls mean, this year alone over 7,500 school districts are going to see their elementary school funding cut this July. Millions of disadvantaged children will be left behind because of inadequate resources in Title I. More than 1.3 million children won't receive afterschool services because of funding freezes that have occurred. Teacher quality, English language acquisition, impact aid, rural education all have been frozen in this country despite the increasing demands that have occurred.
The President's budget eliminates 38 programs in areas such as arts education, school counseling, small school support, dropout prevention. You don't need to tell the American public about the importance of these things. They make a difference every day. The fact is that we are just decimating these significant efforts, many of which were achieved and were created through bipartisan effort and support.
I am deeply concerned about what is happening to these younger people as they enter the school system, where we want them to have an equal opportunity to learn, where they get uncertified teachers and old textbooks, some that say today maybe one day we will land a man on the moon. We actually have children using textbooks that predate 1969 when we landed a man on the moon. Imagine in 2004, you discover your child has a science book that says that. That happens today. Or that your child walks into a biology class or chemistry class in elementary school and almost 35 percent of them in poor rural districts and poor urban districts do not have a certified teacher who is teaching.
This is the United States of America. If you want us to grow and be stronger, you are going to have to make the investments.
I thank my colleague from Massachusetts for raising these issues about both elementary and secondary education as well as higher education. The American public needs to know this.
Madam President, I commit to my colleague and to others as well. This has been an ongoing effort. It will be a continuing one. Nothing is more important. I have often said, if you can only solve one issue, I would choose this one. I don't think there is any more important problem to solve. Not that others are not important, but if we fail to address the education question effectively, then we leave every other issue in jeopardy, to chance.
That goes to the heart of endorsing and supporting our constitutional principles, our values system, as well as our economic growth.
I am not minimizing other issues. I am often asked, as we all are, what is the single most important issue we have to deal with. Obviously issues of going to war, sending young men and women into harm's way, amending the Constitution, confirming a justice to the Supreme Court are high on that list. I would place education as the No. 1 priority, a substantive issue that ought to be on every one of our lists.
I thank the Senator for taking a few minutes out of today to talk about this. There will be other opportunities to raise these concerns and these questions, and I hope that before this session of Congress ends, we will have a more effective result for the American people.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, it is the poet T.S. Eliot who reminds us, as if we needed to be reminded, that ``April is the…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, it is the poet T.S. Eliot who reminds us, as if we needed to be reminded, that ``April is the cruelest month.'' How prescient his words ring this April 2004, as we reflect upon the deepening crisis and the steadily mounting death toll in Iraq. This April, this month in which millions of Americans marked the holiest season of the Judeo-Christian calendar, has been an unholy nightmare for American military forces and American policy in Iraq.
April 2004, 11 months after the President proclaimed the end of major combat operations in Iraq, has proved to be the deadliest month for American forces in Iraq since the onset of the war more than a year ago. Major combat operations may have ended--let me repeat that: major combat operations may have ended--as President Bush asserted nearly 1 year ago, but major combat casualties have not. The ``Mission Accomplished'' banner under which President Bush spoke so confidently on May 1, 2003, has come back to haunt us and to taunt us many times over.
In the weeks and months leading up to the war, Americans were assured by President Bush and his cadre of top advisers--most particularly Vice President Richard Cheney--that we would be greeted as liberators in Iraq, our path to victory strewn with cheers and flowers. Those flowers, it now appears, are less like rose petals tossed at the feet of liberators and more like Eliot's mournful April lilacs--``Lilacs out of the deadland, mixing Memory and desire, stirring Dull roots with spring rain.''
April--April--has indeed become the cruelest month. Memory and desire cannot supplant reality in Iraq. More than 100 American military personnel have been killed in Iraq so far this month, the highest number of deaths in a single month since the beginning of the war. In all, more than 700 American military members have died in Iraq since the beginning of combat. Today, more than 1 year after the fall of Baghdad, America's military forces are being greeted in too many quarters of Iraq, not with flowers--not with flowers, not with flowers--but with gunfire, not with cheers but with jeers, nor as liberators but as occupiers--occupiers--oppressors.
In the harsh glare of hindsight, it is now clear that the President's preconceived notions of the war and the aftermath of the war in Iraq were profoundly flawed. Even the President's Secretary of Defense--one of the supreme architects of the war in Iraq--has been forced to admit that the battle has not gone according to the plan, that the level of casualties, continuing so long after the fall of Baghdad, was neither anticipated nor planned for before the invasion.
And yet President Bush refuses to admit any flaws in his grand strategy to invade Iraq to overthrow the regime of Saddam Hussein without giving adequate consideration to the potential perils awaiting America in the seething streets and towns of post-war Iraq. Despite the fact that debate over the war in Iraq rages worldwide, despite the fact that the American occupation is reeling from unexpected opposition from the very people it was intended to liberate, still the President is hard pressed under questioning to come up with any mistakes that he might have made in dealing with Iraq. What a sad, sad commentary.
In his press conference last week, President Bush acknowledged ``tough weeks'' in Iraq, but he clung to his oft-repeated assertion that Iraq is mostly stable, and shrugged off the violence of recent weeks as the work of a small faction of fanatical ``thugs'' and terrorists bent on imposing their will over the popular will of Iraq.
In this assessment, I hope and pray that the President is right.
For the sake of America's military families, for the sake of the mothers and fathers, for the sake of the wives and children who have had to bear the burden of the increased violence in Iraq, I hope the President is right.
I hope that Iraq achieves stability and security soon. For while Iraq and the world may indeed be better off with Saddam Hussein behind bars, alas--alas--I do not believe that an Iraq in turmoil is either a boon to the Middle East or an asset to the security of the United States.
Instead of reflecting candidly on the current challenges in Iraq, President Bush would prefer to focus on his grandiose, grandiloquent vision for reforming the Middle East. In this he speaks in ideological, almost messianic, cadences as he paints a picture of Iraq as a central front not just in the war on terror but also in a battle of Biblical proportions pitting ``good'' against ``evil.''
President Bush is a man of absolutes. Either we stay the course in Iraq or we cut and run. Those are the two choices: stay the course or cut and run. Either we fight terrorists on the streets of Iraq or we fight them on the streets of New York or Washington, DC. Either we support President Bush's policies absolutely or we give aid and comfort to the enemy. Those are the two choices. Do you believe it? I don't.
No, no, no, a thousand times no. Either-or propositions like those invoked by the President to describe the war in Iraq are nothing more than politically inspired slogans like last year's ill-advised ``Mission Accomplished'' banner, designed to whip up emotions while masking the complexity of national security considerations.
Fighting in the streets of Iraq has not prevented terrorists from striking in Saudi Arabia or Bali or Madrid. Are you with me? And there is no guarantee--none--that it will prevent them from striking again in the United States. Just this week, Homeland Security Secretary Tom Ridge disclosed the formation of a Federal task force to respond to heightened threats that al-Qaida will strike again in the United States, sometime before the November election. Significant events, including the dedication of the World War II Memorial in Washington and the political conventions in New York and Boston, are among those viewed as prime targets for a new al-Qaida offensive.
This is the sobering reality. Osama bin Laden remains at large, and his minions appear to be multiplying, not diminishing. That is sobering. That ought to curl your hair.
If anything, the war in Iraq has served as a rallying cry for anti- American and antidemocratic extremists in the Middle East and beyond. Sadly, given the distraction from the war on terror that the war in Iraq has proved itself to be, the capture or killing of Osama bin Laden, when and if it comes, is likely to be an anticlimactic footnote to a widening and ever more deadly surge in independent national terrorism. Mark my words.
Despite the often invoked and patently misleading conclusion drawn by the Bush administration, cutting and running is not the only alternative to staying the course in Iraq, especially when that course is fraught with disaster. Altering a flawed and dangerous course of action, seeking meaningful support from the international community, is another alternative, one that this President is loathe to acknowledge but evidently more than willing to embrace in the face of the calamity that has befallen his own roadmap for Iraq.
For months, I and others have implored the President to return to the United Nations and to seek a greater role for the U.N. in the occupation, administration, and reconstruction of Iraq. Hear me. Hear me. Long before the war, we begged--didn't we? Yes--we begged the President to seek the support of the United Nations Security Council before invading Iraq. Were our pleas heeded? No. Our pleas fell upon deaf ears.
This administration was confident that it could go it alone. And it said so, did it not? Yes. It said: If you don't do it, we will. This administration was confident it could go it alone with only a threadbare coalition of the willing to paper over its unilateral action. How hollow that confidence now rings. In the face of disaster, in the face of mounting doubts among members of the coalition, the President has now been forced to seek shelter--Help me, Cassius, or I sink--under the wings of the United Nations. The Iraqis have rejected every plan for transition of power put forward by the President's Coalition Provisional Authority. Our only hope left is that they will embrace a plan put forward by the United Nations, the very body the United States spurned when the President chose to invade Iraq without the support of the U.N. Security Council. Irony scarcely begins to describe the current state of affairs.
The fact is, while espousing hard-line rhetoric and ironclad resolve, this administration has ducked and bobbed and weaved at every opportunity. In the administration's ever-shifting explanation for the war in Iraq, the face of our enemy has ricocheted over the past 12 months from Saddam Hussein and his Republican Guard to disgruntled Baathist dead-enders to foreign terrorists taking advantage of the unrest in Iraq to pursue their agenda of jihad to today's vague assortment of thugs and fanatics opposed to democracy for Iraq.
We hear the refrain. We hear the refrain: Stay the course. Stay the course. Stay the course. Well, exactly what course is it we are supposed to be staying in Iraq? Is it to furnish more boys as cannon fodder? What is meant by stay the course? Is it to furnish more of our young men and women as cannon fodder to die in the streets of Iraq? Is that what is meant when we hear the refrain: We shall stay the course, we must stay the course?
The President failed to explain what that is supposed to mean to the American people at his press conference. How did we get from protecting the United States from the threat of weapons of mass destruction to the vague notion of fighting extremists opposed to democracy in Iraq? The President failed to explain that fact as well. Where were those extremists before the invasion? Why is it that they are emerging in force only now, a full year after the fall of Baghdad? Could it be that this administration has created America's own worst nightmare because of its colossal arrogance, its clumsy mistakes, and its painful misjudgments on virtually every aspect of the war in Iraq?
These are not the questions of an unpatriotic or reckless opposition. Where are the voices today in this Senate? It is not unpatriotic to ask questions. It is not unpatriotic to voice opposition to the policies of this administration. These are not questions intended to demoralize America or to hearten our enemies. Rather, these are the questions that a free and open society--the kind of society that the President envisions for Iraq--is expected to pose of its leaders. These are the kind of questions that a democratic nation's leader is beholden to answer. Dogmatic admonitions and grandiose allusions will not suffice. In a democratic society, the people demand and the people deserve the simple and unvarnished truth. So do the people's representatives in Government. They, too, demand, they are entitled to, and they deserve the simple and unvarnished truth. Congress also demands and deserves the simple and unvarnished truth from the executive branch.
This is a coequal branch of Government, Mr. Bush. As a coequal branch of Government, as the body in which the Constitution vests the power of the purse, Congress requires the truth from the President, from the executive branch, from the Pentagon, from the Defense Department, from the State Department, from the White House. This is what makes recent allegations in Bob Woodward's new book regarding the redirection of appropriated funds into clandestine appropriations for the war on Iraq so disturbing, and the American people ought to be disturbed. The American people ought to ask questions, and their representatives in this body ought to ask questions. If the President, as alleged in this book, made the decision to wage war against Iraq and secretly spent appropriated funds to prepare for that war without prior consultation with Congress, then the letter of the law, the intent of the law, the spirit of the law, and the constitutional power of the purse have been subverted This would be not only a very grave breach of trust on the part of the executive branch, on the part of the administration, but also a very grave abuse of power.
Mr. President, I hope with all my heart that Iraq will emerge from the current chaos to become a free and democratic nation. I hope with all my heart that the sacrifices that America's military forces have endured in Iraq will be validated by reality, and not justified merely on the basis of wishful thinking. The path forward is not yet clear, but this I know: President Bush led America into a preemptive war that was neither dictated by circumstances nor driven by events. President Bush led America into a war of choice, a war that might well have been avoided with patience and prudence. Would that we could read that ``April is the cruelest month'' without reflecting on the cruel and terrible toll that the war on Iraq has taken on America's men and women in uniform in Iraq during this bloody and sorrowful month of April.
It is said in the King James version of the Holy Bible that of those to whom much is given, much is required. Mr. President, much is required of this administration and this President with regard to Iraq. The American people expect answers, the American people expect a judicious strategy, and the American people expect a well-thought-out military and diplomatic campaign. On all fronts, the American people have been let down. A President who wages war and manages the aftermath of war by the seat of his pants is not what the American people either expect or deserve. I fear that is what they are seeing in Iraq.
This President, having blundered into this war in Iraq, does not have much time left to get the stabilization of Iraq right. We have spent our blood and treasure in Iraq, and it is now time--past time--to aggressively explore ways in which the burden on Americans can be mitigated. It is time to abandon the go-it-alone attitude, the go-it- alone, cocky, arrogant attitude established by this President.
It is time--long past time--for the President to admit to mistakes made, to forsake his divisive either/or rhetoric, and to seek a way out of the deepening morass of Iraq with the full partnership of the United Nations, the region, and the international community.
President Bush needs to drop all pretensions that the war in Iraq and the battle for stability are going according to plan. Only by accepting the fact that a bold new direction is needed to untangle the mess in Iraq can this President extricate the United States from what is fast becoming a quagmire. It is time for the President to set aside his pride and to convene an international summit on the future of Iraq, composed of representatives of the Iraqi people, their Arab neighbors, NATO, and the United Nations. Then and only then will the Iraqi people be in a position to chart their own future with the help of the international community. Then and only then will the United States be able to relinquish ownership of the tiger that it now holds by the tail.
America must alter its course in Iraq to deal with the volatile vacuum left by the fall of Saddam Hussein's regime. America must be prepared to fight terrorism wherever it rears its ugly head and not be lulled into the false belief that attacking terrorists overseas will stop them from attacking America on its homefront. Above all, Americans must never be cowed into believing that questions are somehow ``unpatriotic'' or that Presidents, even wartime Presidents, are ever above answering them. And finally, Americans must remember that in this country there are no kings.
Mr. President, I yield the floor and suggest the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I rise today to talk about S. 2290, the pending bill on asbestos legislation before the Senate.…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I rise today to talk about S. 2290, the pending bill on asbestos legislation before the Senate. Like many of my colleagues before me, I also want to express great frustration because it does not seem as though we are moving the ball down the field on something that I think a lot of us believe is a very important issue. It is one that demands to be addressed and looks for a legislative solution that we are all trying to find.
Among the many issues that I hear about from my constituents, this is one that very frequently shows up in our discussions and at townhall meetings. A lot of people have suffered devastating injuries after exposure to asbestos. Families have lost loved ones. It is a real deal in people's lives.
I have heard from companies, CEOs, and people who are trying to manage their company's liabilities, and it is a real problem. Insurance companies, many of which are headquartered in my State, have spoken about this issue and my old industry, the financial industry, is concerned about the penalties and its implications in the capital markets that are imposing very severe costs on defending companies and insurers because of the crisis. This is something that we ought to address.
Unfortunately, our current system is not working, and that is a reality for those who need it. It is not working for the defendant companies that want certainty for their business planning. It is not working for insurance companies that face accelerating claims, and it is certainly not working for asbestos victims. We need to make sure those who are truly injured receive the compensation they deserve in a timely fashion and on a basis that is fair to all involved. It needs to be done. We need to address it.
Decades of asbestos use and a coverup of its health effects have resulted in a massive occupational and environmental health crisis. By the way, we are still having exposure developed by a lot of the imports that we are now receiving into our Nation, where some of those who manufacture abroad are not dealing with the issues we have begun to deal with. It is a real killer, a silent killer, physically but also emotionally debilitating to many people across America.
Medical costs associated with asbestos-related diseases are astronomical. They are off the charts. It is not a matter of millions. It is billions and it is an annual affair and it cries out to be addressed.
Hundreds of thousands of workers and their family members have suffered and died from asbestos-related cancer and lung diseases. I think the number is about 10,000 die each year. Approximately 24 million have been exposed. In my home State of New Jersey, which is an old manufacturing State, 2,700 people have been killed by asbestos since 1979, and two of our counties in New Jersey are in the top 10 in the Nation in those asbestos-related deaths. That is Camden and Somerset Counties. So this is a real deal for us. We would like to see this addressed.
We cannot ignore the tragedy of these asbestos deaths and injuries. We can and we should be able to come up with a workable solution. As I said, like many of my colleagues, I would like to see a national trust fund to compensate victims through a no-fault system, ensuring that those who are most injured receive a just award as quickly as possible. It should not be going on for 5 or 10 years. I hope we can agree that we need to focus on paying those who are truly sick and that we must pay those people fairly.
That is why I was pleased last year when the Judiciary Committee held bipartisan hearings on the issue, had bipartisan negotiations, and seemed to be making progress towards arriving at a fair and balanced solution. Unfortunately, last year the Judiciary Committee reported out a bill that did not have broad bipartisan support and was not, in my view at least, balanced in its approach to the issue.
The bill before us has gotten worse. Good amendments that were added in committee have been dropped, and the size of the fund, frankly, is at the low end of anyone's expectations of what is appropriate.
I will take a few moments to discuss what I see are some of the most glaring flaws in the bill that we are debating and reasons, at least right now as it stands, I cannot support it. First, the size of the fund is quite simply out of touch with reality. I hear estimates of anywhere from $100 billion to $300 billion as the cost of settlement that people would expect for the probability of the associated problems with asbestos, and we have picked the low end of that number as the basis on which we are going to deal with it. The bill that was reported out of committee would have had $153 billion, and we have come up with $109 billion, absolutely at the very low end of any of the national estimates, any of the academic estimates of objective outside observers. We are starting at the wrong place in the negotiation.
In addition to the anemic overall funding, the bill has other weaknesses. For example, the Hatch substitute deprives victims of exposure adequate compensation. Awards just remain far too low for many victims with serious diseases that are an outgrowth of this. Funding would not pay for victims' medical bills, let alone compensate their families for any type of hardships.
To give an example, a worker with 15 years of asbestos exposure and lung cancer would be guaranteed only $25,000 in compensation. I do not see how that relates to the risk of life that individuals would be taking in that context.
In another example, victims with asbestos who lose 20 to 40 percent of breathing capacity or are disabled from work will receive only $85,000 for lost wages and medical costs. These numbers do not fit the circumstance. Now, $25,000 barely gets a family of four above the poverty line, and we are talking about $25,000 and $85,000 in lost wages and medical costs that accrue to those things. We are not in the right ballpark.
The pending bill also guts a Biden amendment adopted in the committee with strong bipartisan support to protect victims' rights in the event of fund insolvency. It would allow that once the fund was insolvent, if that $109 billion was not enough, then bring claims back into State court. That was overwhelmingly supported in committee.
Given the low level of funding in this bill, insolvency obviously is a problem. I believe it is unfair to ask the victims to give up their rights to enter into a fund without knowing that fund would have sufficient assets to cover the claims, and where do they go in those circumstances. So it is another major problem.
The pending bill would also treat victims with pending claims unfairly. This one is really hard to swallow. It would wipe out the claims of more than 300,000 people who have claims pending in the current system, even those who have already received jury awards.
We are looking back into history and changing history. I don't understand why, when we have had a judicial process, we have come to a conclusion or we are even in the process of that, we want to stop, start all over and move people into another system. It does not strike me as consistent with a commonsense sense of fairness. If you have an award, it ought to go through.
In addition, the bill significantly weakens key provisions that would protect victims without an effective remedy during the transition to a new system. The bill also lacks transparency with regard to companies and insurers and how they are going to contribute to the fund and in what amounts, which makes it difficult to determine whether companies are paying their fair share.
By the way, there is a lot of hooting and hollering among the insurance companies. A lot of them oppose this because they don't know what their deal will be. There is no certainty here, either for the victims or for a lot of the people who are going to participate here in funding this trust fund. That doesn't make sense and I think it is a real problem that also needs to be addressed. We need to amend it.
It also contains a windfall for certain companies. While we are taking it away from some folks, we are certainly giving it to others. It contains this windfall with regard to Halliburton, which has an estimated $4.8 billion in asbestos liability, but would only have to pay $1.2 billion under the Hatch-Frist bill. Why them? Why are they getting such a break, particularly after a judgment has already gone through? It is sort of the reciprocal or the reverse of what we already were talking
about with a lot of individuals. They are going to get slammed and somebody here is going to get the advantage. They are going to apply it in a way that is very uneven and lacking in balance. That should be addressed.
This is not a fair and balanced approach to this problem. It is not fair to the injured victims or the families of those who died, and it is not fair to companies that want relief from the growing problem, and it doesn't provide for the certainty and planning I think corporate America is looking for.
Let me take a moment to discuss what I think is also a misleading claim by supporters of the bill. This one is actually hard to understand, how this gets any circulation at all. Unfortunately, this administration, as a lot of us have talked about on other occasions, has been weak in the record of creating jobs. I don't have to go through the litany of 2 million lost jobs, 8.4 million unemployed Americans, 2.6 million private sector jobs lost. That was the only period of time, actually, since the Depression an administration has more than likely overseen a period of decline in job growth in the country. But somehow we have decided this is a jobs bill; somehow this is going to create jobs.
There are those who will argue many of the asbestos companies have been forced into bankruptcy and that cost has seriously damaged the American economy, particularly as it relates to jobs. The facts don't meet the description. This is sometimes a fact-free arena. We make assertions and do not necessarily follow through. But if anybody does any serious analysis of what goes on in these companies that have gone through these reorganizations under chapter 11 protection, they will know they have been able to use this device as a means to manage through their obligations and they are able to pay out some of their responsibilities but it has kept their companies going. The truth is, they have not gone out of business, many of them--most of them. Some are doing better than ever.
Let's take Halliburton, since I mentioned it once before. Halliburton has agreed to compensate the innocent victims and companies poisoned with a settlement of more than $4 billion. That is, of course, unless we pass this legislation, then only $1.2 billion. In order to pursue this settlement Halliburton has agreed to put two of its companies into chapter 11 temporarily until a court approves a trust arrangement to compensate asbestos victims.
Meanwhile, Halliburton on its own Web site is telling its customers that it:
. . . will continue in business and will continue to provide
all the excellent services our customers expect from us. In
other words, outside the asbestos and silica settlement, it
will be business as usual.
In what kind of shape are these companies that have chosen chapter 11 reorganization? The answer can be found in a new analysis conducted by Professor George Benston of Emory of the seven largest asbestos companies that sought chapter 11 bankruptcy reorganization protection in 2000 and 2001. This is a real study by someone trying to bring an objective perspective. Professor Benston studied the asbestos companies and compared them to companies in their business that did not declare bankruptcy reorganization in order to determine how successful their operations would be under the supervision of the bankruptcy court. He concluded:
On the whole, they essentially have increased or stabilized
their sales, assets, employment, and profitability, and have
projected increases. It is fair to say they are viable and
likely to be increasingly successful companies that should
generate funds to exit bankruptcy significantly stronger than
when they went in.
We are doing this because this is a jobs bill, when it is fair to say they have increased or stabilized their sales, assets, employment, and profitability, and have projected increases. Somehow or another, objective evidence doesn't seem to match with the claims. This is hardly a jobs bill. The argument falls apart on the surface of it, as far as I can tell.
So while I am sympathetic to the corporations that generally want to fulfill their obligations with respect to asbestos victims and certainly I have an appreciation for their desire for serious financial planning, if this asbestos bill is the best we can do, the administration can do, the leadership--Senator Frist and Senator Hatch--can do to create jobs in our country and address this problem, then I think we have a lot higher objectives for which we need to set our standards.
That is why I think we ought to have a full debate. We ought to have a lot of votes on amendments that will actually address a number of these problems we talked about. I hope we can get back to those bipartisan negotiations, away from this floor, where we can talk about the size of the trust fund, we can talk about some of this ex post facto analysis about who is benefiting and who is not; where we can make sure the general awards to victims are actually higher and there is some serious backstop if the fund doesn't actually have the resources to be able to deal with these issues.
We sure the heck ought to stop talking about this in a context that makes no sense in economic reality, that this is a jobs bill. I go back to this. This is one of those things I think Americans across the board want to see Congress act on. This is not something that has a Republican or Democratic label. We want to find a resolution. I want to find a resolution. We have to do that in a fair and balanced manner. I thought the Judiciary Committee made a lot of progress on this on the bill they reported out. That is not what we are working on.
I don't understand why we don't turn the clock back just a little bit and get on with some of the hard work that was done when we came up with some of these bipartisan approaches to deal with this very thorny issue. On the basis of offering a helping hand to many victims and their families, for companies that need to have stability in their balance sheet and the ability to make plans for the future, to reduce the caseload we have in our court system, there are a lot of reasons we ought to be moving in this area. We are not pulling together, sitting down and negotiating a transaction formulation of legislation that makes sense for everybody.
Everyone is going to have to give a little bit, but this is something that could be done if we wanted to go to work to make it happen. The will is there. Certainly the demand is there. I think there is a lot of ground for positive, constructive dialog.
I yield the floor and I suggest the absence of a quorum.
Mr. President, I have sought recognition to comment on legislation I am introducing today to provide a cost-of-living, COLA, adjustment for certain veterans' benefits programs. This COLA adjustment…
Mr. President, I have sought recognition to comment on legislation I am introducing today to provide a cost-of-living, COLA, adjustment for certain veterans' benefits programs. This COLA adjustment would affect payments made to nearly 3 million Department of Veterans Affairs, VA, beneficiaries, and would be reflected in beneficiary checks that are received in January 2004, and thereafter.
An annual cost-of-living adjustment in veterans benefits is an important tool which protects veterans' cash-transfer benefits against the corrosive effects of inflation. The principal programs affected by the adjustment would be compensation paid to disabled veterans, and dependency and indemnity compensation, DIC, payments made to the surviving spouses, minor children and other dependents of persons who died in service, or who died after service as a result of service- connected injuries or diseases.
The President's budget anticipates inflation to be at a two percent level at the close of this year as measured by the consumer price index, CPI, published by the Department of Labor's Bureau of Labor Statistics. If inflation is held to the 2 percent level, that will be the level of COLA adjustment under this legislation since it ties the increase directly to the CPI increase as measured by the Department of Labor. Whatever the CPI increase eventually turns out to be, however, veterans' and survivors' benefits payments must be protected by being increased by a like amount. The Congress already concurred with that judgment with the recent passage of the budget resolution; that resolution sets aside the funds necessary to finance the COLA increase envisioned by this legislation.
I ask my colleagues to support this vital legislation.
I yield the floor, and I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I have sought recognition to comment on legislation I have introduced today to further honor the sacrifices made by the family members of those who were killed or injured in service to our country. As we celebrate the victory won on the battlefield in Iraq, we must remember that the loss of American lives-- even a relative few--was a sobering price to pay.
The loss of life in service is most acutely felt by the spouses and children left behind. For them, we must make every effort--however inadequate that effort might be in comparison to the enormity of their loss--to recognize their needs. This bill attempts to do so by increasing educational assistance benefits for survivors, by providing additional dependency and indemnity compensation payments for
bereaved families, by authorizing a remarried spouse to be buried in a national cemetery with his or her deceased veteran-spouse, and by providing health, training and compensation benefits to children of certain veterans who served in or near the Korean demilitarized zone, DMZ, in the late 1960s, and who were born with Agent Orange-induced spina bifida.
The legislation I introduce today would increase the rate of monthly Survivors' and Dependents' Education Assistance, DEA, benefits from $680 to $985. DEA benefits are provided to the spouses and children of veterans who were killed, or profoundly wounded, in service. The increase I propose today would create parity between DEA benefits and veterans' educational assistance, Montgomery GI Bill, benefits. Such parity was recommended by a recent Department of Veterans Affairs, VA, program evaluation and is dictated by the common sense observation that college tuition is no less expensive for widows and orphans than it is for veterans.
Under this legislation, DEA-eligible survivors, like Montgomery GI Bill beneficiaries, would receive an aggregate of $35,460 worth of education benefits--$985 monthly for a total of 36 months. Thus, both veterans and survivors would have the resources necessary to meet the average cost of tuition, fees, and room and board at four-year, public institutions of higher learning. As was stated by VA's Deputy Secretary, Dr. Leo Mackay, at a Committee on Veterans Affairs hearing on June 28, 2001, VA ``believe[s] it is only fair that these benefits should be at the same level as those provided to veterans.'' VA estimates that a monthly benefit at that level will entice 90% of eligible persons to use the benefit.
This legislation would also put into effect a key policy recommendation made by a VA-contracted study examining the adequacy of survivors' Dependency and Indemnification Compensation, DIC, benefit. The 2001 study called for the DIC benefit--the basic rate of which is now set at $948 per month--to be increased by $250 per month during the 5-year period following the death of a veteran to further ease the transition of surviving spouses with dependent children. The contractor study based its recommendations on the reported income needs and expenses of DIC recipients; it found that spouses with children reported higher levels of unmet need than spouses without children-- even though spouses with dependent children already receive an additional $237 in monthly DIC benefits per child. In short, the contractor found that while widows with children are already afforded additional DIC benefits, they need more.
In July 2001, VA estimated that there were approximately 14,500 surviving spouses with dependent children. Reading the profiles of some of the young men and women who lost their lives in Iraq, I know that several spouses will, sadly, be added to that number. This provision of my bill is a small way to further recognize the needs of families based on an objective assessment of what those needs are.
Section four of this bill would codify a practice that VA routinely allows through a waiver process. Under current practice, when the remarried widow of a deceased veteran dies, her second husband must grant VA permission before VA will allow, under a waiver process, the widow to be buried in a national cemetery with her deceased veteran- husband. A woman, for example, who was married for 50 years to a World War II veteran and who remarries late in life after her first husband dies should not have to depend on a waiver process to ensure burial with her first husband. Remarried spouses whose second marriages end due to death or divorce have a statutory right to burial with their deceased veteran-spouse. The same statutory right should be afforded to remarried spouses who, though married at death, never lost their desire to be united with a prior spouse already at rest in a national cemetery.
Finally, my legislation would provide benefits to spina bifida children of veterans who served in or near the Korean DMZ between 1967 and 1969. Benefits would be provided on the same basis, and under the same rationale, as they are to children of Vietnam veterans who are born with spina bifida. In 1996, Congress authorized benefits for Vietnam children born with spina bifida based on evidence reported by the Institute of Medicine of an association between exposure to Agent Orange and the appearance of the birth defect spina bifida in a veteran's offspring. The same contaminant found in Agent Orange-- dioxin--was also used to clear brush in and near the Korean DMZ during the late 1960s. Indeed, veterans who served near the Korean DMZ during that time are already presumed by VA to have been exposed to herbicides, unless military records demonstrate otherwise, and they are, accordingly, already awarded compensation on a presumptive basis if they fall ill from conditions presumed by law to be presumptively service-connected for Vietnam veterans. VA, however, exercises no such latitude in addressing the needs of the children of Korean DMZ veterans born with spina bifida. It should--and this bill would direct VA to do so.
I first learned of this inequity from Mr. John Ruzalski, a resident of Hawley, PA. Mr. Ruzalski is a Korean DMZ veteran whose 27-year-old son suffers from spina bifida. I am grateful to Mr. Ruzalski for his service in Korea, and for bringing this matter to light, and am hopeful that the Congress can reward his vigilance on behalf of his son. Clearly, it makes no sense for VA to presume that Korean DMZ veterans should be treated like Vietnam veterans for purposes of compensating the veteran's service-related illnesses and yet treat their spina bifida children differently.
In summary, the provisions of this legislation will make a difference in the lives of those who fallen servicemembers loved even more than country--their families. I ask my colleagues for their support.
I ask unanimous consent that the text of this bill be printed in the Record.
Mr. President, as Chairman of the Committee on Veterans' Affairs, I have today introduced, at the request of the Secretary of Veterans Affairs, S.1133, the proposed ``Veterans Programs Improvement Act of 2003.'' The Secretary of Veterans Affairs has submitted this proposed legislation to the President of the Senate by letter dated April 25, 2003.
My introduction of this measure is in keeping with the policy which I have adopted of generally introducing--so that there will be specific bills to which my colleagues and others may direct their attention and comments--all Administration-proposed draft legislation referred to the Committee on Veterans' Affairs. Thus, I reserve the right to support or oppose the provisions of, as well as any amendment to, this legislation.
I ask unanimous consent that the text of the bill be printed in the Record, together with the transmittal letter and a section-by-section analysis which accompanied it.
Mr. President, as Chairman of the Committee on Veterans' Affairs, I have sought recognition today to introduce legislation that would restate, revise and update the Soldiers' and Sailors' Civil Relief Act of 1940, SSCRA.
The SSCRA, in summary, suspends some of the legal obligations incurred by military personnel prior to entry into the service so that they might give their full attention to military duty. As was stated by the Supreme Court in LeMaistre v. Leffers, 333 U.S. 1, 6, 1948, SSCRA is to be read ``with an eye friendly to those who dropped their
affairs to answer their country's call.'' With operations in Iraq now wrapping up, it is an appropriate time for a review of this World War II-vintage legislation to see how it might be modified to better address the needs of 21st Century servicemen and women.
I should mention at this point that I am aware that a bill to revise the SSCRA, H.R. 100, is currently pending in the House, and that my colleague from Georgia, Senator Zell Miller, has introduced companion legislation in the Senate as S. 792. My legislation is similar to H.R. 100 and S. 792, but it contains modifications and additions to those bills as suggested by reservists and their families, the Department of Defense, and by other groups. It is my intention to work with Senator Miller to craft legislation that incorporates the best features of the two bills.
This legislation would rename SSCRA the ``Servicemembers' Civil Relief Act'' to reflect that the Armed Forces are made up now of more than just soldiers and sailors, and keep in place the core protections that have been features of SSCRA for decades: stays of civil proceedings during a person's period of military service; an interest rate cap of 6 percent on debts incurred before active duty; protection from eviction and termination of pre-service residential leases; and legal residency protection. But it would also add several new provisions to this core.
Currently, the Higher Education Act of 1965 prohibits the SSCRA's 6 percent interest cap from applying to Federally-insured student loans. This bill would remove that prohibition. It would also require institutions of higher education to permit students who are called to active duty to return and complete classes at no additional cost.
In addition, SSCRA now precludes evictions from premises occupied by servicemembers having a monthly rent $1200 or less. This $1200 ceiling was set in 1991; it has not been adjusted since. This legislation would raise the rent ceiling to $1950 or the amount of a servicemember's basic allowance for housing, whichever is higher. It would thereby take post-1991 inflation into account, and avoid the need for frequent amendments to the law since housing allowances are adjusted annually based on housing costs in the area where the servicemember is assigned.
When the SSCRA was originally enacted in 1940, automobiles were not commonly leased. That, of course, has changed; many people now choose leasing as a way to finance their personal transportation needs. This legislation would protect servicemembers who have leased cars--just as it does those who had chosen the more traditional form of auto financing--in two ways. First, it would prohibit lessors, like purchase financers, from repossessing personal property for nonpayment or breach without court action. Second, it would allow servicemembers called to active duty to terminate automobile leases just as they can real property leases.
This bill also takes steps to offer some protection to professionals and small business owners who are called to active duty. It would include the practice of law among the ``professional services'' for which professional liability insurance obligations could be suspended subject to mandatory reinstatement. It would also authorize the Secretary of Defense to designate other professional callings that would be subject to these protections. And it would protect the assets of small business owners during military service if the servicemember is personally liable for trade or business debts.
Since 1940, the Soldiers' and Sailors' Civil Relief Act has provided important protections to the men and women who wear the uniform. But 60-plus years later, it is time for Congress to take a critical look at this law and revise it to reflect changes in our society since it was originally enacted. With the assistance of the Department of Defense, the National Guard Bureau, the Enlisted Association of the National Guard, and the Small Business Administration, the staff of the Committee on Veterans' Affairs, most notably Mr. David Goetz, the Committee's Associate Counsel, has undertaken the painstaking review that has yielded this rather extensive bill. It is my intention to seek further comment and then guide this important reform legislation to enactment.
I ask unanimous consent that the text of the bill be printed in the Record.
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Mr. President, I rise today to introduce the Trade Adjustment Assistance for Communities Act of 2003. This legislation is co-sponsored by Senators Baucus, Rockefeller, Daschle, Murray, Cantwell,…
Mr. President, I rise today to introduce the Trade Adjustment Assistance for Communities Act of 2003. This legislation is co-sponsored by Senators Baucus, Rockefeller, Daschle, Murray, Cantwell, Dayton, Lieberman, Lincoln, and Feinstein.
Companion legislation will be introduced in the House by Congressman Sander Levin tomorrow.
I first introduced Trade Adjustment Assistance legislation in the last Congress, and I was very pleased when that legislation--the provisions relating to both individuals and communities--passed the Senate as part of the Trade Act of 2002. I would like to take this opportunity to thank all of my colleagues for their efforts in making this happen. But I would like to thank Senator Baucus in particular for making Trade Adjustment Assistance one of his priorities last session and pushing on it to the very end. And I would also like to thank Senator Grassley for understanding the importance of Trade Adjustment Assistance to the ongoing trade debate, and his decision to make it part of the trade package that went through Congress.
But I also have to express my disappointment with the way the process ended. In spite of the bi-partisan consensus that formed around Trade Adjustment Assistance during the negotiations last year and the efforts of my colleagues, I regret to say that the provisions related to communities did not make it out of conference. I can not tell you why this happened. However, I can tell you that it is incredibly naive to ignore the problems that are occurring right now across the country and not understand what it means for our country's long-term economic interests. Look at the newspaper and you will see that in many communities, people are pretty much out of work for good, at least when you look at the jobs they had and the wages they were making. And as the lay-offs have expanded, the impact the lay-offs have had on entire communities have become more pronounced. Now it is not just the individuals who are struggling, but the communities in which hundreds or thousands of people live, all because a company or a group of companies have closed their doors for good.
From what I can tell from statements some of my colleagues have made in committee or on the floor of the Senate, this is really nothing more than tough luck. This is the way markets work and you simply make do with what you have. I disagree completely. From where I sit you can't just let individuals who have worked their whole life at a company, who have played by the rules for their entire life, who have committed their entire life to keeping their communities intact, be reduced to little more than hope that something will change for the better. They deserve more than that. You also can't let the communities where these people live just die, because they form the foundation of what we are as a society. These are the networks that have lasted generations, that connect us, and define who we are. I firmly believe we need to do everything we can for these folks and the communities where they live, simply because we owe them something for what they have given us and our country. I believe we have a responsibility to give these communities a shot at a new future. The legislation I am introducing today does just that.
Let me make it clear that writing this legislation is not an abstract exercise. For me, this is about my friends and neighbors that I have known for years. Right now, in my hometown of Silver City, NM, I have folks that I grew up with, wondering what they are going to do next.
Over the last few years the copper mines closed, and then the businesses that supported the copper mines closed, and then the tax base began to disappear, and then services started to be cut, and it seems to everyone like the whole community has been caught in a downward spiral. In spite of what some of my colleagues might claim, this is not because of lack of effort on the part of the people of Silver City. These people are not content with the way things are. On the contrary, they are trying desperately to change direction. They have ideas about where they want to go and what they need to do to make things better. They have acted on these ideas to the best of their ability. And I want to commend them for that. But right now they are stuck because there is no money available to get things started, to take the first step so other steps can be taken afterward.
And this is the way it is across the country in a good many communities just like Silver City. I strongly believe this has to change. We have let things stand just the way they are for far too long. The status quo is not acceptable, and it is time for Congress to make a serious effort to change how we manage these kinds of problems.
My interest in Trade Adjustment Assistance actually began in November, 1997 when Levi-Strauss announced its decision to close most of its plants in the United States and transfer production to other countries. Levi-Strauss decided to close two plants in New Mexico one in Albuquerque and one in Roswell--with the Roswell facility alone losing close to 600 workers. This number didn't even include the contract workers and other folks that relied on Levi Strauss for their living. They lost their jobs as well. 600 plus individuals would be a significant blow in any town, but in a town of 50,000 people--which is what Roswell--is with a workforce of only 25,000 people, this lay-off was truly devastating. What exactly were these people going to do? Where could they go to get work so they could pay their mortgage, pay for health care, pay for their kids' education? Sure, some of them could be re-trained through Trade Adjustment Assistance, but the question that was on everyone's mind was: retrained for what? What do you re-train 600 people for when there are no other jobs available in town, and no new companies coming into town?
The questions surrounding what happened in Roswell--actually, what should have happened in Roswell if we had more effective Trade Adjustment Assistance policies in place--combined with other plant closures across the country in towns just like Roswell, made me ask what actually could be done to help individuals and communities adapt to this kind of collective crisis. In cooperation with Senators Roth and Moynihan, who were the Chair and Ranking Member of the Finance Committee at the time, I requested studies from the General Accounting Office on the over-all efficacy of Trade Adjustment Assistance program. I also asked them to study how communities across the country had responded to the changes that derive from international trade agreements and globalization.
I have to say that the answers we got back from the General Accounting Office were not very encouraging. To begin with, the Trade Adjustment Assistance for individuals program suffered from inconsistencies, incoherence, and a general lack of accountability. Some states managed their programs well, but others--my home State of New Mexico being one--did not. There was no Trade Adjustment Assistance for Communities program at the time, but in analyzing how particular communities responded to economic crises, the General Accounting Office report clearly stated that government funds available for economic recovery efforts were limited and the road to real recovery was difficult even when funds were available. There were no ``best practices'', no obvious answers, to refer to because success had been so limited. In most cases, there was no way out of the downward spiral at all.
But over time some individual lessons appeared, and interestingly enough, those lessons were very similar to the ones we learned in Roswell. Among other things, technical assistance is needed early on in the process to ensure that a community-wide recovery strategy can be developed. Funding needs to be made available to assist in strategic planning. Individual and institutional differences need to be bridged in the community so there is a tangible collective interest in the strategic plan. Short-term, medium-term, and long-term funding needs to be available for communities to use as they pursue their economic strategy. U.S. government agencies need to cooperate to ensure that their efforts are not duplicative or contradictory. State governments need to be involved in the recovery process to encourage cooperation where there has been none before.
I admit that it is very difficult to make sure all these things happen, especially in communities that are struggling to stay on an even keel. Clearly much of the burden for the activities fall on communities, because they are the ones that have to decide what is best for them. And that is the way it should be. But Congress can play a role in helping communities attain the
goals they have set for themselves, and I believe the bill I am introducing today offers a very good start. The key components of the legislation are as follows: First, the legislation establishes a Trade Adjustment Assistance for Communities Program at the Department of Commerce, signaling that communities that are negatively impacted by trade are deserving of a separate stream of funds to help them through their economic crisis. Ideally this program will be located at the Economic Development Administration, which has the expertise and experience to manage a program of this type.
Second, the legislation establishes a U.S. government inter-agency Trade Adjustment Assistance for Communities working group, the goal being to ensure that agencies work in cooperation to assist communities negatively impacted by trade, integrating personnel, activities, and resources as they respond to existing or anticipated problems.
Third, the legislation provides funding for strategic planning and development grants for communities negatively impacted by trade. As written, there is no limit on the funds that a community can receive. Instead, the level of funding is determined by the individual needs of each community, the coherence of their strategic plan, and the cooperation that exists among the stakeholders applying for the grant.
Fourth, the legislation allows funding from programs at other agencies to be used in concurrence with Trade Adjustment Assistance for Communities funding, and, furthermore, allows Federal funding to be used to fulfill most non-Federal matching requirements that exist. In the past, some economic development efforts have been stopped in their tracks because communities don't have the matching funds necessary to get grants. This legislation would give communities that are now suffering under serious financial constraints some initial flexibility in their effort to get funding.
Fifth, the legislation gives preference to rural communities in funding guidelines, since these are the communities that have the fewest options available to them as they attempt to respond to trade related problems.
Sixth, the legislation authorizes $350 million per year for the Trade Adjustment Assistance for Communities program, essentially doubling the funds that are currently available for economic adjustment in the United States. I believe this amount is consistent with the needs that we see of communities across the United States.
Seventh, the legislation establishes a lookback to January 1998, allowing communities that were negatively impacted by trade and have yet to overcome their problems an opportunity to obtain funds and begin their recovery.
Finally, the legislation establishes a set of new triggers for eligibility that are designed to help not only communities that have been negatively impacted by trade, but also communities that have experienced some negative impacts but want to set a new course so any future impacts will be limited. This approach is far different than anything that has been done before in Trade Adjustment Assistance legislation--far different even than the legislation that my colleagues and I introduced last year--and is designed specifically to avoid the criticism that Trade Adjustment Assistance is really nothing but ``death insurance''.
The inclusion of the category of ``affected domestic producers'' as a trigger, for example, would allow certain companies to work with their communities to create a coherent strategic plan to renovate or construct basic or advanced infrastructure, diversify the local economy, attract new investment, and encourage long-term economic stability and global competitiveness--all this before a company is closed and the entire community is affected. The inclusion of TAA for firms as a trigger would allow restructuring at a firm to occur in tandem with restructuring in a community. The inclusion of TAA for workers as a trigger would allow funds to be directed into a community at the initial onset of problems at a company--at the moment when lay- offs are first occurring--not when the problems are so far down the line that there is very little that can be done about it.
Let me say straight out that this legislation cannot be considered a substitute for a strong trade or manufacturing policy. But I do believe this legislation is complementary to those policies. From where I sit, there will always be individuals and communities negatively impacted by trade, and it is incumbent upon Congress to ensure that these individuals and communities are treated with the respect they deserve and with the strategic economic interests of our country in mind. The economic ideology that suggests we just let things take their course and things will work out the way they are supposed to is, from my perspective, wrongheaded and misguided. The fact is we must look very carefully at the changes that are occurring to our national economy as a result of globalization and position ourselves to do better than we are now.
This legislation carves out an area of real need and addresses it in a coherent, comprehensive, and innovative fashion. If enacted, it will have an immediate, concrete, and important impact on communities across the country. Every State in the country would benefit from the legislation. It will allow communities to take charge of the future and contribute to the economic welfare of the Nation. It is a practical approach that is designed to keep our communities intact and our country competitive and strong. I urge my colleagues to support it.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I have to admit that I do not read the New York Times cover to cover each day. But from time to…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I have to admit that I do not read the New York
Times cover to cover each day. But from time to time, items in that paper do catch my attention. For instance, when a group runs a full- page advertisement, one cannot help but at least glance at the ad.
A couple weeks ago, one such advertisement caught my attention. It was a full-page advertisement placed in the New York Times by two special interest groups: the Natural Resources Defense Council and Moveon.org. These two special interest groups are especially vocal and devoted solely to disparaging the environmental record of the Bush administration.
I have an enlarged version of that advertisement that ran in the New York Times. It is chart 1. As you can see, it states, in large print: ``First Arsenic, Now Mercury.'' It has pictures of President Bush alongside a powerplant billowing with smoke. The ad makes such claims as: the President's policies are the source for mercury contamination in fish and that the President is simply following the wishes of industry contributors. The ad makes direct statements such as: ``So why is President Bush trying to weaken controls on mercury pollution?''
I am chairman of the Environment and Public Works Committee, so this ad was of particular interest to me for at least a couple reasons. To anyone reading this advertisement, the reader would naturally assume there must be some already existing controls on mercury emissions from powerplants because the ad explicitly claims that President Bush is trying to weaken those controls.
How can you weaken controls if there are no controls to start with? So it is assuming there are controls existing. This claim is completely false. I believe this chart demonstrates that. The NRDC's lobbying claim is that the President is weakening controls on mercury emissions from powerplants. The facts, however, are very different.
On December 15, 2003, this President proposed the first ever controls on mercury emissions from utilities. Now, keep in mind, there were no controls before, none whatsoever. How can you weaken controls if there are no controls there?
The Clinton administration had 8 years to propose such controls and did not. In nearly 3,000 days as EPA Administrator, how many mercury regulations on powerplants did former EPA Administrator Carol Browner issue? Zero. Instead, in the last month of the eighth year of the Clinton administration, Carol Browner deftly handed a regulatory lemon to the Bush administration that she was unwilling to impose during the Clinton administration. What a courageous move.
I am very proud that President Bush and his EPA Administrator, Mike Leavitt, have shown leadership where President Clinton and Carol Browner fumbled and failed. In fact, Administrator Leavitt testified before the Environment and Public Works Subcommittee on Clean Air in a hearing on April 1, 2004. In questioning, the Administrator ably drew the line between fact and fiction regarding the President's proposals regulating mercury from powerplants. I want to read to you one of his quotes. The Administrator explained:
One fiction is that the EPA does not view mercury as a
toxin. The fact is mercury is a toxin and it needs to be
reduced. Another fiction is that somehow the agency is
seeking the Administration to roll back standards. The fact
is there has never been a standard, this will be the first
time that we will have regulated mercury from power plants in
our Nation's history and we want to do it right.
Now, that is what Administrator Leavitt said, reemphasizing there has been no regulation on mercury.
Why shouldn't we propose the right mercury rule based on sound science? There are no existing control standards for utility mercury emissions, so how can President Bush weaken a control standard for mercury that does not exist? That simply does not make sense.
The NRDC has been a prominent national special interest group for many years. So why would the NRDC run such an ad that is completely false? I believe the answer to that question leads me to the second reason this ad was of particular interest to me.
I had this advertisement enlarged to highlight one particular part of it. Keep in mind, this was a full-page ad that cost, as I understand it, around $110,000 for 1 day.
This is what was on the bottom, if you will notice the perforated block at the end of the full-page ad circled in red. I especially wanted to highlight this portion of the ad pictured on the chart because this block is the reason why this ad ran. This perforated block is a contribution form. The contribution form states:
Yes, I want to join the Natural Resources Defense Council
and help thwart President Bush's plan to weaken controls on
toxic mercury.
This is the most important part:
Here is my tax deductible gift of $ [blank].
The form further states to ``make your check payable to the NRDC and mail it to the NRDC mercury campaign.''
I believe it is bad enough to run a false advertisement, but to solicit charitable contributions based on that false advertisement is especially troubling. The New York Times is widely distributed in my home State of Oklahoma, as it is throughout the rest of the country. It would be very disturbing to learn that based on a false ad, people are scared into contributing.
For the past several years, my State of Oklahoma has been rated in the top 25 percent of States for charitable contributions per gross income. It would greatly trouble me if even one of these contributors was misled by any charitable solicitation.
The Council for Better Business Bureaus, a national organization, compiles a Wise Giving Alliance report authorizing a seal of approval to charities that meet the organization's standards. One of the standards the council has established to measure charities deals with solicitations by those charities. Part C of those standards states the following:
1. Solicitations and informational materials, distributed
by any means, shall be accurate, truthful and not misleading,
both in whole and in part.
2. Soliciting organizations shall substantiate on request
that solicitations and informational materials, distributed
by any means, are accurate, truthful and not misleading in
whole or in part.
The NRDC, describing itself as a charity, should substantiate this false advertisement. The President has proposed the first controls on mercury emissions from powerplants, the first ever. The Better Business Bureau should hold the NRDC accountable for their purposefully misleading statements. However, NRDC's irresponsibility is sanctionable in other manners as well.
Solicitations by charitable organizations are regulated in part by Federal statutes and case law. However, the solicitation of charitable contributions is mainly regulated by individual State law, and violations of solicitation statutes can be prosecuted under state law. Solicitation by charitable organizations is strictly regulated against fraud and misleading advertisement under the Oklahoma statutes. Oklahoma State law reads in relevant part:
Any person [or organization] who attempts to solicit any
contribution as a charitable organization by means of
knowingly false or misleading advertisement shall lose its
status as a tax exempt organization and upon conviction be
guilty of a felony.
This criminal liability extends to all officers and agents of the charity involved in the solicitation. We take this very seriously in Oklahoma. At least 40 other States have just as strict statutes against soliciting contributions by misleading advertising.
Arguably this ad by NRDC may be unlawful in as many as 40 other States that also have charitable solicitation statutes. This advertisement by the NRDC and MoveOn.org explicitly states the President is weakening mercury standards while they are trying to swindle contributions from people all across the country who may see this advertisement. I don't know what else this ad represents, but specifically NRDC, which describes itself as a charitable organization on its Web site, soliciting contributions by making knowingly false statements to cheat people out of contributions--in Oklahoma, that could make you a felon.
The most shocking part of this is not even that NRDC is running a completely false ad or NRDC is running a completely false ad simply to fleece people for contributions; the most shocking part is the American taxpayer subsidizes the NRDC hundreds of thousands of dollars each year to conduct this type of activity. Public IRS
records for the last several years demonstrate NRDC regularly receives thousands of Federal grant dollars each year. In 2002, the NRDC received more than a half million dollars in government grants. In 2003, the NRDC was additionally awarded more than half a million dollars again in government grants. The cycle continues year after year after year.
The Environment and Public Works Committee has oversight jurisdiction over several Federal agencies. I believe my committee has the obligation to ensure Federal funds allocated to these agencies are used responsibly.
One agency in particular under the jurisdiction of the committee I chair, the Committee on the Environment and Public Works, is the Environmental Protection Agency. The committee has the responsibility to assure American taxpayers their money is going toward accomplishing the EPA's mission of protecting human health and the environment.
On March 3, my committee held its first hearing into the matter in which EPA allocates grants each year. The EPA is a granting agency, allocating more than half of its $8 billion annual budget in grants to State, local, tribal governments, educational institutions, nonprofit organizations, and a variety of other recipients. I announced at the hearing the committee was going to take its oversight responsibilities seriously in regard to grants management, and I intend to take this responsibility seriously until real changes are made in grants management.
The committee heard testimony of problems with grants management. I am confident we will begin to make real changes with the leadership of the Bush administration and Administrator Leavitt.
However, the NRDC, for example, has made it a matter of doing business to apply for Federal grant awards that I believe help subsidize it to run ads such as this one. It costs more than $110,000 a day to run a full-page ad in the New York Times. The NRDC and MoveOn.org are spending thousands of dollars to purposely misrepresent the Bush environmental record and scare people into contributing based on those false representations.
I am announcing that I am sending letters today to the two largest judicial jurisdictions in Oklahoma and requesting those district attorneys to investigate the legality of this advertisement in Oklahoma. I am also sending a letter to the Better Business Bureau requesting that organization to more carefully consider this false advertisement in their rating of the NRDC in awarding their Wise Giving Alliance seal and ask that it formally request NRDC to substantiate its baseless claim.
I ask unanimous consent that all three letters be printed in the Record.
A couple years ago, I read a series of articles in the Sacramento Bee highlighting the facade of many environmental groups. The article made the point that today's environmental groups, like NRDC, are more about their own prosperity than environmental protection. I still have those articles in my office. I thought one particular quote was especially fitting.
The author wrote of environmental groups:
Competition for money and members is keen. Litigation is
blood sport. Crises, real or not, is a commodity, and slogans
and sound bites masquerade as scientific fact.
That quote was written in 2001. It is still more true today in 2004. But it is not something new. That quote captures the way NRDC and its cohorts have been doing business for years. They should be responsible. They should be truthful. This type of activity goes beyond what the NRDC does with Federal tax dollars, but I intend to explore what NRDC and groups like it are also publishing and the extent of the rampant false claims made by these groups the American taxpayers help to fund each year.
We are not going to allow this to continue. They are getting into the types of discretionary grants we are dealing with through the EPA and other agencies. It is shameful that it is going on. We are now in a position, with the committee I chair, to do something about it. We intend to do that.
I suggest the absence of a quorum.
Mr. President, I rise today in support of the Trade Adjustment Assistance for Communities Act of 2003. I want to commend Senator Bingaman for introducing this bill today. He has been a strong…
Mr. President, I rise today in support of the Trade Adjustment Assistance for Communities Act of 2003.
I want to commend Senator Bingaman for introducing this bill today. He has been a strong advocate of Trade Adjustment Assistance and a strong voice for communities that need a helping hand facing the challenges of the global economy.
Trade and trade-opening policies create benefits for our country. But that fact should not keep us from acknowledging that the benefits of trade are seldom evenly distributed. In fact, there can be losers from trade, even when the economy as a whole is better off.
In 1962, President Kennedy said that ``those injured by . . . trade competition should not be required to bear the full brunt of the impact.'' ``There is an obligation,'' he said, for the Federal Government ``to render assistance to those who suffer as a result of national trade policy.''
That year, President Kennedy and a bipartisan majority of Congress created Trade Adjustment Assistance--a program designed to help those who are displaced by trade policy to retrain and get back on their feet.
Last year, with help of another bipartisan majority of Congress, we passed the Trade Adjustment Assistance Reform Act of 2002--a historic expansion of the TAA program.
The Trade Adjustment Assistance for Communities Act continues to build on this important tradition by creating a new TAA program for communities.
In a recent study, the General Accounting Office found that, even with TAA benefits available to displaced workers, the loss of a major employer can have ripple effects on the local economy.
In addition to the direct job losses, local economies can experience reduced tax revenues, reduced sales by the closed plant's supplier firms and by local retailers, and rising social services costs. Until they can attract well-paying new jobs, these communities can face extended periods of economic distress.
This is especially true in smaller and rural communities, such as we have in Montana. These communities may not have a lot of job opportunities for displaced workers, even with TAA retraining. Indeed, one of the main criticisms of the current TAS program has been that it does nothing to make sure there are jobs for workers at the end of the retraining process.
There are a number of Federal programs out there that might offer some help. They are all over the map--in Commerce, Treasury, Labor, Agriculture, HUD and the SBA, just to name a few. But these communities have no way to start, no go-to person or resource to guide them through this maze of potential help. And the Federal Government doesn't make it any easier. There is very little coordination of response among the various agencies. Finally, even if communities can find
these Federal resources, most existing programs are not tailored to the special needs of trade-impacted communities.
This bill tries to make Federal economic assistance work better for trade-impacted distressed communities in a few simple ways.
It creates a single office responsible for coordinating the Federal response.
It creates a simple trigger process to identify potentially eligible communities and bring appropriate resources to their attention.
It gives communities the technical assistance they need to develop a strategic plan--basically a roadmap for economic recovery. That helps ensure that Federal resources are being used in the most coordinated and cost-effective way possible.
Finally, it makes sure that there are expertise and resources tailored to the special needs of trade-impacted communities.
I am pleased to be a cosponsor of this bill. I hope we will be able to consider it in the Finance Committee this year.
Mr. President, I rise today to introduce the Trade Adjustment Assistance for Firms Reorganization Act.
The Trade Adjustment Assistance for Firms program assists hundreds of mostly small and medium-sized manufacturing and agricultural companies in Montana and nationwide when they face layoffs and lost sales due to import competition. Qualifying companies develop adjustment plans and receive technical assistance to become more competitive, so they can retain and expand employment.
The program is very cost effective. It requires the firms being helped to match the Federal assistance with their own funds, and it pays the government back in Federal and State tax revenues when the firms succeed.
Currently, TAA for Firms clients receive assistance preparing petitions and adjustment plans from twelve Trade Adjustment Assistance Centers, which are Commerce Department contractors. Program and policy decisions are made by a small Headquarters staff in Commerce's Economic Development Administration. This organizational structure is efficient and has served the program well for many years.
For example, TAA for Firms is helping Montola Growers from Culbertson, Montana, to develop cosmetic applications for its rapeseed oil. The program is helping Pyramid Mountain Lumber of Seeley Lake, MT to upgrade its production process and train employees to use new process controls. And it is helping Porterbilt Company of Hamilton to expand its product line.
Last year, in the Trade Act of 2002, a bipartisan majority of Congress voted to reauthorize this important program for seven years and to increase its authorized funding level. The program seemed headed toward some years of smooth sailing. But it turns out that is not the case.
For reasons unrelated to TAA for Firms, EDA is about to move all its Headquarters program operations to its six regional offices, with a policy office in Washington. For TAA for Firms, that means clients will get the same local services from the TAACs, but decisions will be made in six regional offices and the national policy office--a net increase in layers of government. The likely result is more personnel needed to run the program, less centralized and consistent decision making, and less accountability--all without any likely improvement in customer service.
The organizational structure of TAA for Firms is not broken and it doesn't need to be fixed. This bill preserves the existing efficient management structure of the TAA for Firms program. Instead of moving the program out of Commerce Headquarters entirely, it simply moves the program to a different part of the Commerce Department. That way it can continue to be centrally managed with a minimal staff.
Under this bill, administration of TAA for Firms will move from the Economic Development Administration at the Department of Commerce to DOC's International Trade Administration.
Relocating the program to ITA makes a lot more sense that dividing it up among seven different EDA offices, for several reasons. First, ITA has experience running this program, which was located there prior to 1990. Second, relocating TAA for Firms to ITA will result in fewer layers of government and more centralized and accountable program management. It also creates synergies by allowing better coordination of the TAA for Firms program with other trade and trade remedy programs administered by ITA. And it enhances the ability of the Finance Committee to carry out its oversight responsibilities for this program and for trade policy in general.
I want to thank Senators Rockefeller, Bingaman, Dayton, and Murray who have joined me in co-sponsoring this bill. This is a simple matter of good, sensible government and I encourage more of my colleagues to lend it their support. I urge Chairman Grassley to take up this bill in the Finance Committee as soon as possible.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I rise today to introduce, on behalf of my self and Senator McCain, the Middle East Trade and Engagement Act of 2003.
For more than a thousand years, the most important trade route in the world ran through the heart of the
Middle East. The Silk Road that linked the Western world with China wound its way through what is today Egypt, Iraq, Jordan, Turkey, and a host of other countries in the Middle East.
Merchants who traveled either direction along the Silk Road brought with them not only their goods for sale, but also their ideas and culture. In this way, all peoples from the West through the East were enriched with both money and knowledge.
But in modern times, the countries of the Middle East have retreated from their historically critical role in world trade. Today, few countries in the Middle East engage fully in the global trading system.
Many are not members of the World Trade Organization. Many have high barriers to international trade and investment. Their economies have suffered as a result. A declining share of world trade and investment has led to decades of deepening poverty and slow job creation in the countries of the Middle East.
At the same time, they have been experiencing population growth rates among the highest in the world. That means that a growing number of young people will be entering the workforce to look for jobs that don't now exist.
The United States cannot stand idly by as a generation of young people in the Middle East grows up to discover that there is no meaningful work for them, and that they have no way to provide for a family of their own.
The problem will only get worse if we don't act now. As the rest of the world continues to liberalize its trade, the countries of the Middle East will only be left further behind.
That is why we're today introducing the Middle East Trade and Engagement ACt of 2003. Under this Act, countries in the Middle East will be given preferential access to the U.S. market.
This is not a one-way street. Countries must meet certain conditions. They must support our war on terrorism, and they must pursue economic reforms. Only then will they reap the benefits of this legislation.
Our proposal can have an immediate impact. Opening our markets to the countries of the Middle East will encourage higher levels of trade and direct investment in those countries. And we know it can be a success because if has worked before in other regions. Our bill is modeled on successful programs that increased economic development in sub-Saharan Africa and the Andean countries.
This legislation will do the same for the countries of the Middle East. Increased economic development in that region means jobs for the young and the unemployed, some of whom may otherwise be recruited by our enemies in the war on terrorism.
By helping to strengthen these economies, we also increase the number of people who can afford to purchase American products and services. That means increased export opportunities for American businesses and more jobs for American farmers and workers.
President Bush recently announced an initiative to create a free trade area for the United States and the countries of the Middle East by the year 2013. This is a good long-term goal. But the people in the Middle East need our help now. They need jobs now, not ten years from now.
The Middle East Trade and Engagement Act would bring the benefits of trade to the people of the countries in the Middle East in a much shorter time. It would also help those countries make the economic reforms they'll need to make before a free trade area can become a realistic option.
And just as trade in the time of the Silk Road allowed the exchange of ideas and culture as well as goods, increased trade now can strengthen ties between the United States and the countries in the Middle East.
Now, in the Aftermath of the war in Iraq, the whole world's attention is focused on the Middle East. It is the ideal time for the United States to engage these countries in a comprehensive way and help bring them more fully into the global trading system.
I hope that my colleagues will join Senator McCain and me in cosponsoring this important legislation, and I hope we will have a change to consider this in the Finance Committee this year.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I want to express my appreciation to the distinguished chairman of the Judiciary Committee. He has served in this Senate for many years. He is himself a superb lawyer, a constitutional…
Mr. President, I want to express my appreciation to the distinguished chairman of the Judiciary Committee. He has served in this Senate for many years. He is himself a superb lawyer, a constitutional scholar, and has been through many of these debates.
I remember on one night after 11 o'clock at night when the chairman met with everybody who had a problem. He urged them to come forward. He compromised and compromised.
Frankly, sometimes I think maybe the bill has gone too far--really seriously. We need to talk about that, offer amendments to fix it. We ought bring the bill to the Senate floor and start to discuss that.
But Senator Hatch has bent over backwards to make sure this legislation which is critically needed for America passes. It is critically needed for people who are sick from asbestos and those who fear they might get sick from it. I thank the chairman for his leadership. I have not known any effort that I have seen in which a chairman has gone further to try to win the support of other members in the committee and the Senators who might be dubious, to get their support. And the Senator continues to get it.
I thought we had the bill completed. I thought we had everybody signed up. I yield to the chairman.
I thank the chairman. I agree with his comments. I thank him for doing all that humanly could be done to win the support necessary for this bill.
I had a brief period of time in which I filed plaintiffs' lawsuits for individuals who had asbestos injuries. These individuals were sick; asbestos is a debilitating disease. They had been heavily exposed to asbestos. One individual worked in a submarine, where the air inside was thick with asbestos fibers. He was severely debilitated as a result of that. I believe people who are injured ought to be compensated.
It was discovered that manufacturers of asbestos knew at some point before they told people who were working on it that it was dangerous. And they should have told them it was dangerous and their health was at risk and they did not do so. That is the fundamental cause of the litigation.
I filed my asbestos litigation in the 1970s. I eventually turned it over to a group of lawyers who were experts in this matter. They took the case. I was not able to do it. They did a lot of work. They had to break down barriers, win the liability questions, and prove knowledge on the part of the companies. They overcame legal objections such as whose asbestos did you breathe.
Most plaintiffs' lawyers today involved in litigation are not proud of what has happened with asbestos. The companies have been tagged. The companies are stuck. They admit they did wrong. They are willing to compensate, as they are able to compensate. There is only so much money. We are talking about billions of dollars, maybe $54 billion already paid out.
I was there as a lawyer and earned part of a fee out of the litigation. I didn't know how it would come out or what the statute of limitation was. Maybe my claim has expired. But things have changed. The companies are willing to pay. Some victims are sick and need compensation. They need it now. They do not need to have a big chunk of what they are entitled to paid to lawyers or to experts or testing companies. They need to be paid. It is a blight on the legal system.
I see the distinguished assistant Democratic leader. He is a superior lawyer, and would do an admirable job in court, no doubt. But, these cases are not going to trial. It is a process. These cases are filed and settled, and sometimes victims are paid. Certain defendants do not have money, so they cannot pay. Sixty asbestos companies are in bankruptcy today because they cannot pay or cannot fully pay all the claims. Thousands of new claims are being filed on a regular basis.
The new trend is that people not sick are filing. They may have been exposed to asbestos, and there may be some showing of asbestos in the pleura or their lungs, but it has not had a debilitating effect or not caused cancer or anything like that, and they are filing by the tens of thousands, saying they might get sick. But they are not sick yet.
What do you do? It is perfectly appropriate that this Congress act. We do it with workmens' compensation. A person is injured on the job, they get compensation under certain circumstances. It is a lot easier to get it, but it is limited and you do not have to pay so much expenses and it works pretty well. That is all by regulation. We do not leave everything totally to juries, judges, and lawyers to settle.
I believe in the principle of the Congress stepping in, when necessary. The fundamental reason I believe, is that, in my view, in the history of the most magnificent legal system we have, the Anglo- American heritage of law, we have ever had a system that has been as abused. Sixty percent of the money paid out by the defendant companies, over half of it, 60 percent according to testimony we had a number of years ago in the Judiciary Committee, does not get to the people who are sick. It does not get to any plaintiff. It is eaten up by court costs, lawyer fees, expert witnesses, and testing companies. That is not right.
It is not right when the defendants themselves admit they are wrong and are willing to pay. In fact, they do pay and they agreed to pay and they have trusts that are supposed to pay, but the trusts are getting drained of money. Companies are going into bankruptcy and fewer and fewer victims are getting paid.
If we care about the rule of law, if we care about decency, fundamental fairness, if we respect law, if we love the law, we should not allow a situation to continue where the defendant companies are willing to pay, and the plaintiffs, some of them desperately need payment, but the plaintiff only ends up getting 40 percent of what is paid out. The defendant companies have to hire lawyers, too, whole law firms. They file papers and disclosures and depositions and expert witnesses. This is just chewing up money, money, money, money.
Now, if somebody has mesothelioma, a cancer that causes death, they ought to be paid. They do not need 60 percent of what they are entitled to, to go to some lawyer, some defense lawyer or some expert witness or court cost. And they ought not to die before they get it.
Under this bill, if you file a claim and you have mesothelioma--which is tied directly to asbestos--it is caused very few times other than by asbestos, and you can demonstrate exposure to asbestos and mesothelioma, you get $1 million. That is what the latest figure is. And you do not need a lawyer at all. You get it now. Under the current system, they file lawsuits, months go by before anything results. The plaintiff wants $25 million. The defendant wants to pay $500,000.
They go along and along, and all the time the families are suffering, the plaintiffs are suffering, and maybe even dying. That is not good. Then, when it is paid, finally, some of the companies do not have the money. Some insurance companies say they are not liable for this part of the claim, and it goes on and on and on.
I deeply believe we need to end this spasm. This is not good. It is not something any lawyer can be proud of. In fact, I think everybody is embarrassed by it.
Let me read from Justice Ruth Bader Ginsburg of the Supreme Court, a former member of the ACLU--one of the more liberal Justices. This is what she wrote in 1997:
The argument is sensibly made that a nationwide
administrative claims processing regime would provide the
most secure, fair and efficient means of compensating victims
of asbestos exposure. Congress, however, has not adopted such
a solution.
In 1997 she wrote that; and we have been battling this ever since. Every effort has been made.
Now we have proposed a $100 billion fund--not millions--$100 billion, set aside for payment of these claims. That is apparently not satisfying everyone. In Ortiz v. Fiberboard Company, in 1999, Justice Souter--another one of the liberal members of the Supreme Court--said:
The elephantine mass of asbestos cases defies customary
judicial administration and calls for national legislation.
To date, Congress has not responded.
We have people here who are filibustering this bill from even coming up, saying they are being rushed. This bill and this idea and this concept of creating a nationwide claims processing regime, as Justice Ginsburg called it, is overdue by decades. It is wrong what we are doing. It is being blocked, I can only conclude, by a partisan special interest effort. The only people who have an interest in continuing this despicable regime are a few lawyers who are getting absolutely rich from it--$54 billion, and you have a 40-percent contingency fee.
Senator Hatch said, when this thing is over, lawyers would make $100 billion. And don't think it is a lot of them. It is not a lot of them. It is not the basic plaintiff bar. These lawyers have 10,000, 20,000, 30,000 cases they are handling. It is not right. It is wrong. The people who are blocking this need to be ashamed of themselves.
The Supreme Court Justices have called for reform. It is threatening our economy. They develop schemes now where companies that had even the most tangential connection to asbestos are getting sued. If you can just ever tap them. If a company bought a company that dealt in asbestos, and that company had ceased dealing with asbestos for 10 years, they can be bankrupted because they have become liable for the company they bought, their actions 10, 15 years before they bought it. Do you think that is not possible? It is possible. It is happening right now.
These companies and the insurance companies and the reinsurance companies have come together and put up $100 billion--$100 billion. All we need to do is set up an administrative claims processing system where persons who are sick, who have any disability, really any health defect can file a claim. Those who are not ready, those who do not have a claim, who fear they might be sick at some time in the future, can file their notice and will be given a constant monitoring of their health. If they do get sick, they can be compensated fully.
So we would be getting money to the people who are sick. We would be reducing the need for these huge, outrageous legal fees from the plaintiffs' lawyers. We would be eliminating all the lawyers' fees paid by the asbestos companies.
There are companies that bought asbestos companies, and people who sold brake shoes, and anybody who had anything to do with asbestos, who are being sued. Now there are 8,400 companies being sued. Most of them never produced asbestos, never knew anything about asbestos, never dealt with asbestos. So these people are willing to put up $100 billion.
We simply ought to be able to establish a system by which sick people can be paid, and paid promptly, without these costs. If we do not, who is going to lose most? The plaintiffs are going to lose. These companies are going into bankruptcy. It is hurting this economy. It will continue to hurt America's economy.
I thank the Presiding Officer. I appreciate the opportunity to share these remarks. I think it is important. I hope the Senate will move forward.
I yield the floor.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, there has been some discussion on the floor, as there should be, about the very serious…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, there has been some discussion on the floor, as there should be, about the very serious situations, challenging situations that our Nation and other nations fighting against terrorism and for freedom are facing now in Iraq and Afghanistan.
In the company of the distinguished senior Senator from Alaska, Mr. Stevens, and the senior Senator from South Carolina, Mr. Hollings, I visited those two countries just four weeks ago. Senator Hollings, Senator Stevens, and I had an opportunity to discuss with the heads of state and government and our military leaders the situation, and we also visited with our troops. We visited Jordan. We visited Iraq. We visited Kuwait. We visited, of course, Pakistan. We went into Afghanistan, and we came back through Paris where we had, I thought, a very interesting and lengthy opportunity to discuss our views with President Chirac of France.
Today I would like to discuss some of these issues that were discussed on the floor today. I do so by expressing that the past few weeks have been particularly challenging for the citizens of the United States of America and, indeed, the citizens of other coalition countries fighting bravely with us in those theaters of war, namely, Afghanistan and Iraq.
We are ever mindful the risks our troops face every day and the sacrifices made by the families and the communities that support them as those who have been removed from power seek to delay their inevitable defeat as terrorists lash out against the loss of yet another haven, both in Afghanistan and in Iraq, where terrorism has been spawned to spread worldwide.
We mourn every loss of life of these brave men and women in uniform and salute those who serve and their families for their bravery, their commitment, and their sacrifice. We are at a critical juncture for the coalition operations in both of these theaters. The brilliant military victories achieved by our forces, together with coalition partners, have presented an opportunity to fully defeat violence and terror in both Iraq and Afghanistan, nations whose previous rulers had perpetrated violence and terror on their own populations, neighbors, and, indeed, the world.
The cycle of violence that has gripped this part of the world must end if we are to win the global war on terrorism and to make America and the world a safer place. Deviation from our current course will only embolden--embolden--those who are intent on causing instability and anarchy in these regions of the world.
We have achieved extraordinary success in a relatively short period of time. In Iraq, Saddam Hussein and the threat he posed are gone, and now he, I think, to the credit of the Iraqi people, is likely to face a court of law and be judged by his own peers for his frightful administration over a period of over 30 years in that country and the hardships he imposed.
We must continue, however, to send a strong message of resolve to the people of Iraq, to our troops, to our coalition partners, and to the rest of the world that we, the United States of America, will stay the course and get the job done. As President Bush stated last week:
Now is the time and Iraq is the place in which the enemies
of the civilized world are testing the will of the civilized
world. We must not waiver.
I take great encouragement by listening to that strong statement. I have supported the President throughout these operations. As I said, I recently visited both of those areas, and I have done it three or four other times. It has been an opportunity for me, as chairman of our Armed Services Committee, to follow these operations very carefully.
President Bush has set a course that calls for the return of political sovereignty to the Iraqis on June 30. It is critical that we end our status as an occupying power and give the Iraqis an increased stake in what happens in their nation.
I would like to pause on that point. Yesterday, in the course of our series of hearings before the Armed Services Committee, at which time we had the benefit of the testimony of the Deputy Secretary of Defense, Mr. Wolfowitz, and the Chairman of the Joint Chiefs of Staff and Under Secretary of State for Political Affairs, Ambassador Gross, I raised a question about the use of the term ``sovereignty.'' I have watched
carefully as all those in positions of authority have begun to discuss what takes place on the 30th of June.
It has been referred to, and I do not say this out of disrespect but just factually, somewhat loosely. People have said we are going to convey sovereignty, as I have just read from these remarks. Others say it is a conveyance of power to a new Iraqi interim form of government. I shall address that later.
In the hearing yesterday, through questioning by myself and other colleagues, it was clearly established that the security of Iraq must be maintained by the coalition forces until such time as the Iraqis can put in place, whether it is police, a national guard, an army, or a combination of all of those forces, a force such that we can turn over to them completely the operations that must take place to repel the insurgents and otherwise maintain security in that country.
The question is, Since that must be maintained and the document that the Iraqi Governing Council and the Coalition Provisional Authority put together--the Transitional Administrative Law--specifically states that the Iraqi security forces, as they come along, will be under the unified command of a U.S. led multinational force that is authorized by UN Security Council Resolution 1511. This resolution goes into some detail with regard to how the security will continue to be maintained under the auspices of the coalition military leadership. The security will still emanate from the President of the United States, the Prime Minister of Great Britain, and others who are now directing, through their military commanders, the security operation in Iraq. Those forces are going to stay.
If we look at the pure definition of ``sovereignty,'' one must say: Wait a minute. The very heart of being a sovereign nation is providing security of one's borders, of one's internal situation, and security against anyone attacking one's nation. That is the very heart of what I believe is sovereignty. But that authority simply does not pass, as I said, because of the Transitional Administrative Law and related orders enacted by the Iraqi Governing Council and the Coalition Provisional Authority, which are the current authority in Iraq, and by United Nations Security Council Resolution 1511. So I think as we use the term ``sovereignty'' with reference to what passes on June 30, we should be very careful to say limited sovereignty passes.
A great deal of responsibility will be transferred to this new entity, but the security function is going to remain under the control of those I have just described until such time--presumably with the combined judgment of the coalition forces and the governing body of Iraq--there is a sequential series of governing bodies that take place, and until that time we are going to be very active in continuing to support a security framework so that government can work.
Again, I return to the date of June 30. This date was endorsed by the U.N. special representative, Mr. Brahimi. Mr. Brahimi and the U.N. are playing an important and growing role in this transition of the government and will continue to play a critical role, hopefully, in helping Iraq on its path to democracy.
The President's appointment earlier this week of the trusted international statesman and current U.S. Ambassador to the U.N., John Negroponte, as the first U.S. Ambassador to a free and democratic Iraq is another important step in the process. I have known Mr. Negroponte for a number of years, and I have the highest regard for his professional capabilities and his character.
Continued U.S. commitment to the June 30 transition date is of enormous importance to the Iraqi people and to the region, for it will be the day Iraq takes its place in the community of free nations and the day Iraqis assume responsibility for their future. A free, democratic Iraq means defeat for the forces of terrorism and instability in Iraq.
Clearly, the recent surge of violence in Iraq is related to the imminent transfer of sovereignty. Those who fear democracy are trying to delay its arrival. Those who incite terror realize their days are numbered. Opponents of a free and democratic Iraq are desperate and will become even more desperate, we all fear--at least I do, and I think some others--in the weeks to come until June 30.
It is my hope, but I certainly do not want to raise expectations, but I do have a hope that once the realization, after June 30, settles in among the Iraqi people that at long last the first of a series of steps to give them total sovereignty is occurring, that 80 to 90 percent of Iraqi citizens want this program to succeed and the coalition forces to finish their work. Those people will help us in establishing a greater degree of security in Iraq.
We must be prepared, however, for such violence as does continue to occur between now and June 30 and afterwards. There is not going to be a cliff, an abrupt drop-off. It is likely to continue for a period of time, but our coalition forces are resolute to maintain that security.
Some greater detail was shared with this body by the Deputy Secretary of Defense and the Under Secretary of State yesterday during our hearing outlining these first steps towards democracy, including: formation of an Iraqi Interim Government, with the assistance of the U.N., and extensive consultation with the Iraqi people, to accept limited sovereignty on June 30, 2004; the organization of elections for a representative national assembly and transitional government, to be held no later than January 31, 2005; the drafting and ratification of a constitution by October 2005; and, elections and formation of a constitutional Iraqi government by the end of December 2005. During this interim and transitional period, considerable effort will be made by U.S. and coalition forces to select, train, equip and mentor the various components of the Iraqi security forces, so as to be able to assume increasing responsibility for the internal security and external defense of Iraq.
This is a good plan--a realistic plan--that has received the support of Ambassador Brahimi, the special representative of the U.N. Secretary General, Kofi Annan. This plan, and what additional support may be required from the U.N., are the subject of ongoing discussions at the
Mr. President, I am pleased today to introduce the Settlement Encouragement and Fairness Act of 2003. This bill provides that when plaintiffs bring a lawsuit that acts as a catalyst for a change in…
Mr. President, I am pleased today to introduce the Settlement Encouragement and Fairness Act of 2003. This bill provides that when plaintiffs bring a lawsuit that acts as a catalyst for a change in position by the opposing party, they will be considered the ``prevailing party'' for purposes of recovering attorneys' fees under Federal law. The bill will help ensure that people who are the victims of civil rights, environmental and worker rights' abuses can obtain legal representation to enforce their rights.
Over the course of our history, Congress has often enacted laws encouraging private litigants to implement public policy through our court system. An integral part of many such laws are provisions that help individuals obtain adequate legal representation by providing that the defendants will pay the plaintiffs' attorneys fees in cases were the plaintiff prevails. In laws involving public accommodations, housing, labor, disabilities, age discrimination, violence against women, voting rights, pollution and others, Congress has acted over and over again to empower private litigants in their pursuit of justice. Presently, there are over two hundred statutory fee-shifting provisions that allow for some sort of payment of attorneys' fees to a prevailing plaintiff.
Until 2001, in interpreting these fee-shifting statutes in cases where a settlement was reached before trial, nine circuit courts of appeals embraced the ``catalyst theory'' to determine whether attorneys' fees could be obtained. The catalyst theory required the payment of fees where the lawsuit caused a change in the position or conduct of the defendant. Only one circuit court, the Fourth Circuit, applied a more narrow definition of prevailing party, requiring a judgment or a court approved settlement in order for a plaintiff to obtain attorneys' fees.
In Buckhannon Board of Care & Home Inc. v. West Virginia Department of Health and Human Services (2001), a case arising out of the Fourth Circuit, the U.S. Supreme Court ruled, in a 5-4 decision, that plaintiffs may recover attorneys' fees from defendants only if they have been awarded relief by a court, not if they prevailed through a voluntary change in the defendant's behavior or a private settlement. The Buckhannon ruling eliminated the catalyst theory for all fee shifting statutes in federal law.
The bill I introduce today restores the catalyst theory that the vast majority of courts had approved prior to the Buckhannon decision as a basis for seeking attorneys fees under Federal fee shifting statutes. It provides a new definition of ``prevailing party'' for all such statutes to encompass the common situation where defendants alter their conduct after a lawsuit has commenced but without waiting for a court order requiring them to do so. This critical change in the definition of ``prevailing party'' will allow attorneys representing clients who cannot otherwise afford to hire a lawyer to recover their costs and to be paid a reasonable rate for their work.
The Buckhannon case itself illustrates the need for this legislation. Buckhannon Board and Care Home in West Virginia, an operator of assisted living residences, failed a state inspection because some residents were incapable of ``self-preservation'' as defined by state law. After receiving orders to close its facilities, Buckhannon sued the state seeking declaratory and injunctive relief that the ``self- preservation'' requirement violated the Fair Housing Amendments Act and the Americans with Disabilities Act. While the lawsuit was pending but before the court ruled, the state legislature eliminated the ``self- preservation'' requirement.
Imagine how the plaintiffs felt when they learned that their lawsuit had forced a change in the law not only for their own case but also for all of the other individuals who had been subject to the improper self- preservation doctrine. If ever there was a complete and total victory caused by litigation, this was it. But, as Casey Stengall once said, ``It ain't over 'til it's over.'' Once the state legislature changed the law, the District Court granted defendant's motion to dismiss the case as moot and denied Buckhannon's request for attorneys' fees. The court ruled that the legislative action did not amount to a judicially required change in position that would permit Buckhannon to be considered a ``prevailing party'' in the case. On appeal, the Court of Appeals for the Fourth Circuit and then the U.S. Supreme Court denied attorneys' fees for the plaintiffs, ruling that because the change in the defendants' conduct was voluntary rather than ordered by the court, Buckhannon was not a prevailing party.
I believe the narrow definition of ``prevailing party'' endorsed by the Buckhannon decision will result in many injustices going unchallenged. Indeed, in calculating whether to take a case, an attorney for a plaintiff will have to consider not only the chances of losing, but the chances of winning too easily. If businesses or individuals are able to engage in egregious conduct, refuse to change their behavior without a lawsuit being filed against them, and then avoid paying attorneys' fees by changing their conduct on the eve of trial, the effect will be that
some lawyers will decide they cannot afford to take a case even if the claims are very strong.
Imagine a case involving a legitimate claim of housing discrimination where, after many months, perhaps even years of work, as the attorney who labored for the plaintiff prepares into the evening for opening statements, the attorney learns that the defendant has admitted its wrongful conduct and offered substantial compensation and a promise to change its practices. This offer came about only because of the spotlight the lawsuit put on the defendant and the possibility of a large jury verdict. This would be a complete victory for the plaintiff, but under Buckhannon, the attorney who labored for years to bring about this result may not be paid. Later, if the same defendant returns to discriminatory practices, the next plaintiff might very well not be able to find competent counsel who will take the case.
Ironically, the failure to correct the Buckhannon decision could lead to plaintiffs' attorneys dragging out law suits far beyond a point in time where the parties could reach a fair settlement, in order to insure that they meet the Buckhannon definition of ``prevailing party.'' This will increase the costs of litigation and discourage settlement. Simply put, Buckhannon creates unnatural tensions between attorneys and clients and may even push attorneys to not act in the best interest of their clients.
Certainly we can do better. Congress has passed important laws to protect the public in the work place and in our communities; we must ensure that these laws can be enforced, when necessary, in court. The Settlement Encouragement and Fairness Act of 2003 will help insure that all our citizens have the ability to meaningfully challenge injustice.
Mr. President, today I introduce the ``Involuntary Bankruptcy Improvement Act,'' along with Senator Leahy, the ranking member of the Judiciary Committee, and my colleague Senator Kohl, the senior Senator from Wisconsin. This bill addresses the growing problem of the use of involuntary bankruptcy petitions as a means to harass public officials. A similar bill has been introduced in the other body by the Chairman of the House Judiciary Committee. I believe this bill should be enacted on its own as soon as possible or, if necessary, be a part of any bankruptcy-related legislation that goes through the Congress this year.
Involuntary bankruptcy petitions are a rarely used, but legitimate, creditor tool to prevent the wasting of an asset that would otherwise be available to satisfy creditor claims. Unfortunately, tax protestors and others with real or imagined grievances against the government have filed fraudulent involuntary bankruptcy petitions against government officials as a way to harass and harm them. This problem came to my attention recently because of a case in my home State of Wisconsin.
In that case, a man named Steven Magritz undertook a vendetta against thirty-six Ozaukee County officials after the County pursued a foreclosure action against him for failing to pay taxes by filing involuntary bankruptcy petitions against those officials. Although the petitions were ultimately dismissed and Magritz was convicted of criminal slander and sentenced to five years in prison, the petitions had, and are still having, an impact on the credit ratings of the officials.
Current law provides for punitive damages to be assessed against someone who files an erroneous petition of this kind. But because bankruptcy filings are public records and credit reporting agencies include information in their reports for ten years, erroneous or fraudulent filings can have a devastating impact on the credit ratings of the individuals involved even if the perpetrator is punished. The local government officials that were the subject of this vendetta have had great difficulty in obtaining loans or refinancing their homes.
Although a comprehensive study of this problem has not been done, I understand that fraudulent involuntary bankruptcy petitions have been filed against federal district court judges in Ohio and Maine, a U.S. Attorney in Maine, and IRS agents in Ohio. A district in California reported that over 10 percent of the involuntary bankruptcy petitions filed in recent years were likely filed in bad faith.
The bill I am introducing today will address this problem in two ways. First, it requires the bankruptcy court on motion of the debtor to expunge from the court's file all records relating to the filing of an involuntary petition and any references to such petition, if 1. the debtor is an individual; 2. the petition is dismissed; and 3. the petition is false or contains a materially false, fictitious, or fraudulent statement.
Second, the bill authorizes a bankruptcy court to prohibit credit reporting agencies from issuing a consumer report that contains any information relating to an involuntary bankruptcy petition or to the case commenced by such petition where the debtor is an individual and the court has dismissed the petition.
These steps will retain involuntary bankruptcy as a legitimate tool to preserve debtor assets, but will allow the courts to address the real harm that can befall an innocent victim of harassment. I urge my colleagues to support this reasonable and necessary reform of the bankruptcy laws. I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I preface my remarks by saying my thoughts are with the victims of asbestos exposure, those families that have lost loved ones, and those that have to live with the debilitating…
Mr. President, I preface my remarks by saying my thoughts are with the victims of asbestos exposure, those families that have lost loved ones, and those that have to live with the debilitating illness caused by asbestos. They are at the forefront of my mind and in my heart as I discuss this issue of asbestos liability.
I want to be sure the legislation we pass today will ensure that those truly sick individuals are allowed fair and just compensation. Without the passage of this legislation, they will not be compensated. As hundreds of companies will cascade into bankruptcy, we will lose thousands of good-paying jobs and see the pensions of thousands of retirees evaporate.
Most people would agree that the issue of asbestos litigation and its aftermath is presenting a crisis in our country. With roughly 70 companies already in bankruptcy and a slew of bankruptcies soon to follow, the U.S. Supreme Court had it right when they called this an elephantine mess.
People need to understand this mess has far-reaching effects and ripples and they are being felt way beyond corporate boardrooms. They are being felt intensely by middle America, people from States such as Ohio, in the form of job loss. We have lost over 2.7 million manufacturing jobs in the United States. In my State alone, in July, there were 1 million manufacturing jobs in 2000, but by October 2003 that fell to 840,000, 17.6 percent of our State's manufacturing employment, a loss of more than 1 out of every 6 Ohio factory jobs. These numbers represent a crisis for Ohio's economy. Already, roughly 70 companies have been forced into bankruptcy with between 52,000 and 60,000 jobs lost as a result.
Shattered families and communities. The statistics are only the beginning as thousands of jobs were subsequently lost in industries dependent on those bankrupt firms. In fact, a recent study by Financial Institutions for Asbestos Reform and conducted by Navigant Consulting details the hidden cost of this crisis and shows how passage of Federal asbestos legislation would provide a tremendous boost to the economy and create jobs. Dr. William Kerr, author of the study, said the failure to enact legislation would reduce economic growth by $2.4 billion per year. Failure to enact legislation could reduce economic growth by $2.4 billion per year, costing more than 30,000 jobs annually. Extended over a 27-year frame, as contemplated, this means the loss of more than 800,000 jobs and $64 billion in economic growth.
Another study, entitled The Secondary Impacts of Asbestos Liabilities, conducted by NERA Economic Consulting for the U.S. Chamber of Commerce, shows how asbestos lawsuits
can cause secondary harm to businesses, governments, communities, and individuals. The study found the ripple effects of plant closures and mass layoffs, such as causing local real estate values to fall, per capita income to decline, and tax coffers to dwindle. The study estimates the total cost to taxpayers of unemployment insurance benefits to displaced workers for asbestos-related bankruptcies at $80 million. The study put the indirect cost of the company closing due to asbestos liability at as much as $2.1 billion. If nothing is done to resolve what has been described as the elephantine mess of asbestos litigation, scores, if not hundreds, of additional businesses will be forced into bankruptcies and tens of thousands of additional workers will find themselves unemployed. Retiree and workers who spent decades working for retirement will see their life savings vanish.
This crisis can really be felt in my home State of Ohio. In fact, Ohio is the fifth biggest State in the country in terms of asbestos claims hanging around our court. In Cuyahoga County, more than 41,000 asbestos cases have swamped the court system. At least 20 large Ohio companies, representing more than 80,000 employees, are the targets of asbestos litigation. Of course, over the past few years the circle of liability has expanded to pull in more and more solvent companies, many of which never manufactured or installed asbestos.
There are numerous examples of Ohio companies negatively impacted by this crisis. Take the case of Federal Mogul, a company that employs over 1,200 in six cities through my State. Employees held 16 percent of the company stock. That stock lost 99 percent of its value. Current employees and also retirees feel the effects of the bankruptcies. Many retirees depend on company stock and dividends for income, and as this value heads south, retirees feel it immediately.
Another company which does a lot for the Toledo area is Owens Corning. As Governor, I worked hard to get Owens Corning to put the new corporate headquarters in downtown Toledo to help facilitate the city of Toledo renaissance. Owens Corning, unfortunately, went bankrupt in 2000. In the 2 years preceding this bankruptcy, the stock lost 97 percent of its value. Fourteen percent of the stock was owned by company employees.
Another Ohio company spoke with me off the record about its growing asbestos liability. When this company announced it had limited asbestos liability, the stock dropped by about 20 percent and its debt rating was lowered. This began a chain-reaction ripple effect that included the loss of over 100 jobs, the sale of assets, a 50-percent cut in capital investments, and a huge cut in the amount of contributions to the surrounding community.
As a former mayor, I know firsthand the impact of what happens when companies go bankrupt. Many of us forget that these companies make a significant contribution to the tax revenues of the cities in which they are located, including their philanthropic contributions, such as United Way, arts, education, health care, and many other forms of community involvement. As I have said before, companies such as this one make up the backbone of the Ohio economy. They do not want to shirk their responsibility to those victims who will become sick truly because of asbestos exposure; they want to know that they are not compensating those individuals who are unimpaired.
Ohio feels the crisis most acutely. It has so impacted my State of Ohio that the State legislature has decided to act where the Federal legislature has failed to do so. On December 11, 2003, the Ohio House of Representatives approved a bill to make Ohio the first in the Nation to block suits by people exposed to potentially deadly asbestos but who have yet to fall ill. The bill would adopt State medical standards for such litigation, allowing lawsuits to be filed by those who have yet to develop cancer or suffer measurable loss of lung function to be placed on hold until they do actually develop the symptoms.
I applaud the State of Ohio for recognizing the true magnitude of the threat to Ohio citizens and for not waiting for Washington to act. With the passage of this bill, Ohioans who are sick from asbestos exposure will go to the top of the court dockets where they belong. Finite resources will be available for those who need compensation most. The people who are now sick will be able to file claims.
Now, if we could only get something done here. I have been working on this issue since I was elected to the Senate, and I have been a cosponsor to several pieces of legislation, including the Asbestos Tax Fairness Act and both versions of the Fairness in Asbestos Injury Resolution Act. I have testified twice before the Judiciary Committee on the need for this legislation. I have lobbied my colleagues in the administration on the need to see this bill passed.
If we want to get something done, we need to do it now. Now is the time. We passed the FAIR Act out of the Judiciary Committee last summer and have spent the time between then and now negotiating to try to find a solution that everyone can support. That is almost a year that we have been negotiating back and forth trying to figure out something we think will be fair to everyone. The time has come for action. We cannot afford any more delays. The ever rising tide of corporate bankruptcies affect victims' compensation so that the truly sick asbestos victims in too many cases and more and more frequently only receive pennies on the dollar. In addition, employees of bankrupt companies suffer as they watch their jobs disappear and their pensions in 401(k) plans decrease dramatically. Again, we have to do something now, not later. Passage of this legislation will get us well on our way. And we have never come closer to resolving the asbestos litigation crisis than this legislation.
This bill provides for a privately funded, no-fault, national asbestos victims compensation fund that will replace the broken tort system and ensure that individuals who are truly sick receive compensation quickly, fairly, and efficiently. It retains the bipartisan agreement on medical criteria that was approved unanimously by the Judiciary Committee. These criteria form the basis of a no-fault victims' compensation fund that will stop the flow of resources to the unimpaired and ensure that the truly ill will be paid quickly and fairly.
The bill contains many improvements made to its predecessor and reflects the product of the last several months of extensive negotiations by the stakeholders in this debate--all of the stakeholders.
I urge my colleagues to vote for cloture on this very important piece of legislation.
On a broader scale, the litigation crisis in this country is like a tornado ripping its way through our economy. The American Tort Reform Association published a study in 2002 on the impact of litigation in Ohio and found that it costs every Ohioan $636 per year--that is every Ohioan, all 11.5 million. That is $636 a head. A large part of it is due to the issue that we have before us today, asbestos. We need to move immediately on this issue.
In my opinion, passing responsible asbestos reform legislation to ensure that the truly injured receive fair and just compensation, and to prevent more companies from sliding into bankruptcy, will do far more for Ohio's economy than many other stimulus proposals we have been talking about on the floor of the Senate or in our respective committees.
The consequences of inaction are grave. As previously mentioned, a large swath of corporate America is at risk, jeopardizing the jobs of thousands of employees, impoverishing retirees, and shattering families and communities. America's clear national interest lies in making sure asbestos funds are available for those who become sick and lifting an ominous cloud of litigation from our troubled economy.
Mr. President, I suggest the absence of a quorum.
Mr. President, I rise in support of the motion to invoke cloture on the asbestos bill. I say to my good friend from Nebraska, with whom I agree on so many issues, and work so very closely with, I…
Mr. President, I rise in support of the motion to invoke cloture on the asbestos bill. I say to my good friend from Nebraska, with whom I agree on so many issues, and work so very closely with, I think this bill is ready because it is a bill we have been negotiating for months and months and months, and a bill on which great compromises have been made on both sides of the issue. I do think it is time we invoke cloture, that we bring this bill to the floor, and that it be open for whatever amendments may be necessary by those who disagree with it, but let's have a vote on it.
Asbestos-related bankruptcies have inflicted a staggering toll on the American workforce. Companies that have declared bankruptcy because of asbestos-related litigation employed more than 200,000 workers before their bankruptcies. So far, asbestos-related bankruptcies have led to the direct loss of as many as 60,000 jobs, while each displaced worker will lose an average of $25,000 to $50,000 in wages over his or her career. For example, when Federal Mogul declared bankruptcy in 2001, employees reportedly lost more than $800 million in their 401(k) plans.
The AFL-CIO has testified before Congress that:
Uncertainty for workers and their families is growing as
they lose health insurance and see their companies file for
bankruptcy protection.
There is no question that the escalating claims and costs are a threat to workers' jobs and retirement savings. The AFL-CIO further testified that ``the tort system is damaging business far more than it is compensating victims'' when it comes to asbestos-related cases.
One economic study found that, considering the multiplying effect of private investment, failure to enact asbestos legislation could reduce economic growth by $2.4 billion per year, costing more than 30,000 jobs annually. Extended over a 27-year timeframe--which is the timeframe of this bill--this would translate into the loss of more than 800,000 jobs and $64 billion in economic growth. Another study concluded that 423,000 new jobs will not be created due to asbestos litigation, and $33 billion in capital investment will not now be made, unless we bring this bill to the floor and pass this asbestos litigation bill.
Asbestos-related bankruptcies threaten American workers' jobs, incomes, job-related benefits, and retirement savings. To date, approximately 70 or more companies--35 since the year 2000--have been driven into bankruptcy as a result of asbestos litigation. Forty-seven States have had at least one asbestos-related bankruptcy.
How does this translate into lost jobs? As I have already said, these bankruptcies have led to the direct loss of at least 60,000 jobs. Many of the affected companies are highly unionized. If this direct impact is not bad enough, we have plenty of additional collateral damage from these lost jobs. It is estimated that for every 10 jobs lost as a direct result of an asbestos-related bankruptcy, an additional 8 jobs are lost. Each worker who has lost a job as a result of bankruptcy will lose an estimated $25,000 to $50,000 in wages because of periods of unemployment and/or lower wages in subsequent employment. Moreover, each worker loses, on average, at least 25 percent of the value of their 401(k) retirement account as a result of their company's bankruptcy.
While we are on the subject of retirement savings, asbestos-related bankruptcies have an adverse impact on the retirement savings of millions of Americans. We have already seen how badly these bankruptcies impact the retirement savings of individual investors. We have seen the devastation to employees of bankrupt companies whose 401(k) retirement accounts hold
their employers' stock. And we have seen the damage to those whose pension funds have invested in companies driven into bankruptcy as a result of asbestos-related cases.
All one has to do is look at a couple of examples to get a sense of the dramatic negative impact that asbestos-related bankruptcies have had and will continue to have on retirement savings.
Owens Corning stock, 14 percent of which was owned by its employees in their 401(k) accounts, lost 96 percent of its value, dropping from $1.8 billion to $75 million in the 2 years before its bankruptcy filing in October of 2000.
Then there is the example of Federal Mogul. At the time of Federal Mogul's bankruptcy in October 2001, 22,000 of its employees owned 16 percent of the company's stock, stock that lost 99 percent of its value or more than $70 million. Between January 1999 and the time of its bankruptcy, Federal Mogul's market capitalization dropped from $4 billion to only $49 million. And by the way, Federal Mogul never, ever produced asbestos. It simply acquired a company with asbestos liability. Federal Mogul's stock, which once traded for more than $70 a share, now sells for pennies. Company retirees who once had secure retirement nest eggs must now work minimum wage jobs to survive.
One Federal Mogul retiree told the Detroit News he managed to salvage most of his retirement savings by selling the company's shares before the bottom fell out. But unfortunately, his 82-year-old former colleague was not as fortunate. Because he held on to his Federal Mogul stock, his $1 million retirement plan evaporated to $22,000. As a result, this individual now works as a greeter at a Wal-Mart store--a very credible job, but he didn't take the job because he wanted to meet people. He simply needed to eat.
The runaway asbestos litigation crisis must be brought to an end. The economic data we have seen is troubling because it shows that asbestos litigation creates job losses. American workers and retirees cannot afford to continue shouldering the weight of Congress's failure to act. In fact, we create a class of economic victims by our inaction as companies go into bankruptcy and people lose their jobs.
What I find truly ironic is my colleagues on the other side of the aisle who have repeatedly stressed the importance of protecting American jobs want to block us from considering a bill that squarely addresses this very objective. If protecting American jobs is a priority, then I strongly urge my Democratic colleagues to rethink their position on the Frist-Hatch-Miller asbestos bill or at least vote for cloture on Thursday so we can get an up-or-down vote on the merits of the bill and in the process we can consider what amendments they think might be proper.
I have not been one to pound on my former colleagues in the trial bar. During my 26 years of practicing law, I engaged in plaintiffs' work as well as defense work, and they are very noble parts of our great legal profession. This bill is not directed at trial lawyers, as some have indicated. This bill is directed at two different segments of our society and our economy. First of all, at those companies who are now struggling because of the asbestos-related cases facing them; they are facing bankruptcy if we don't act. We are going to continue to see the loss of jobs directly attributable to the failure on the part of this body to act. The second class of folks this bill is directed to are the victims. Under this bill, the way it is crafted, these victims don't have to file a lawsuit. They don't have to go through the long, drawn-out discovery process that is a necessary part of every lawsuit. They don't have to go through a trial by jury and let a jury of their peers determine what their compensation ought to be. They are compensated directly and immediately when their injury is brought forward.
The fund we establish is a fund that is going to be here forever and ever. We started out with a demand, as the Presiding Officer knows, since he is also a member of the Judiciary Committee, from the folks on the other side of this bill, that we have a trust fund that has $107 billion in it. We resisted that early on. We started out with about an $86 billion proposal. That $86 billion steadily grew until we not only got to $107 billion, we exceeded $107 billion. The trust fund that is set forth in this bill before the Senate today is set at $114 billion. In addition, we have a 10-percent overage fund that can come into play if need be, if that $114 billion is exhausted.
Beyond that, even if all of that money is exhausted in asbestos- related claims, anyone who has a true asbestos-related injury can then go back to the process that is now in force, the legal system we have. So nobody stands to lose in the process. The American worker stands to gain. The injured asbestos victims stand to gain by the passage of this bill.
I urge my colleagues on Thursday to join those of us who are strong supporters of the legislation and vote to invoke cloture. Let's bring the bill to the floor. Let's debate it. And then let's have an up-or- down vote on the bill. Let's compensate those victims who so badly need it.
I yield the floor.
Mr. President, today I am re-introducing legislation that will improve the effectiveness of one of the most successful programs we have to help Americans get affordable housing, the Low-Income…
Mr. President, today I am re-introducing legislation that will improve the effectiveness of one of the most successful programs we have to help Americans get affordable housing, the Low-Income Housing Tax Credit. I am proud to be joined in this effort by my esteemed colleagues, Senators Hatch and Jeffords.
The need for affordable housing is as great today as ever. The generally accepted definition of affordability is for a household to pay no more than 30 percent of annual income on housing. Today, twelve million renter and homeowner households pay more than 50 percent toward housing costs. In fact, nowhere in the country can a family with one minimum wage worker afford the rent on a two-bedroom apartment.
The Low-Income Housing Tax Credit was created in 1986 to attract private sector capital to the affordable housing market. It has been the major engine for financing the production of low-income multi- family housing. The program offers developers and investors in affordable housing credit against their federal income tax in return for their investment. Since its inception, the Low-Income Housing Tax Credit has assisted in the development and availability of roughly 850,000 new and rehabilitated units of affordable housing.
In the fall of 2000, the Internal Revenue Service isssued its first guidance in the program's 16-year history. That guidance was issued in the form of several technical advice memoranda, or TAMs, and specified which development costs will be eligible and ineligible for the credit, known as eligible basis.
TAMs are not official guidance, reviewed by the Treasury Department, but instead, are IRS legal opinions providing direction to IRS agents conducting audits. They are not citable in court proceedings because they are not official guidance. In the absence of official guidance, TAMs could be taken as the official government position. In fact, that is exactly what is happening.
The problem is that the IRS's position is contrary to common industry practice, and eliminates many reasonable, legitimate and necessary costs from the tax credit. This has caused uncertainty among investors as to whether the credits for which they have paid, will be realized. Moreover, these guidelines could adversely affect the ability of States to target affordable housing to those who need it the most.
It is important to understand, this legislation will not increase the pool of low-income housing tax credits. The Internal Revenue Code sets the maximum amount of credits that States may allocate to developers of affordable housing properties. Thanks to legislation that we enacted in 2000, the amount available to each State has increased from $1.50 to $1.75 times the State's population. That 40 percent increase is expected to produce about 30,000 more units a year. Since the unmet demand for affordable housing is many times greater than what can be built with the help of the credit, our legislation should not affect revenues. In fact, the only way for this legislation to have a revenue impact is if the legislation makes it easier for the states to use the credits we intend for them to have under present law.
What this legislation does do, however, is very important. To understand its importance, it may be useful to have a little background on how the low-income housing tax credit works.
In economic terms, the credit is equity financing which replaces a portion of debt that would otherwise be necessary to finance a property. By replacing debt, credits work to reduce interest costs. This allows a property owner to offer lower rents than otherwise would be the case.
The most unique feature of the program is that state housing finance agencies award Federal tax credits to developers of rental housing. Since these agencies have considerable flexibility in how they distribute the credits, developers compete for the limited number of tax credits by submitting project proposals. The agencies rate the proposals, and allocate credits to individual properties based on criteria provided in the Internal Revenue Code, and on the state's particular housing needs and priorities.
The Internal Revenue Code also limits the amount of credits a state may allocate to a particular property. The limit is determined as percentage of the basis of a property. The basis is, generally speaking, the cost of constructing a building that is part of an affordable housing project. Non-federally subsidized new construction may receive a 9 percent credit. Existing buildings and new buildings receiving other federal subsidies may get a 4 percent credit.
The IRS takes the position that certain construction costs should not be included in basis. This position makes a large number of affordable housing properties financially unfeasible, and weakens the economics of those that still pass minimum underwriting requirements. The loss of equity would surely affect the properties that serve the lowest income tenants, provide higher levels of service, or operate in high cost areas. The reason that this is problematic is simple. Reducing the amount of credits does not reduce the development costs. It merely alters the source of financing from equity to debt, forcing either higher rents or lower quality construction.
Apparently, the Treasury Department and Internal Revenue Service agree that this is an issue worthy of review, as both agencies have included it in their business plan. Last year, the IRS issued new guidance on one of the items addressed by the TAMs, but there does not appear to be a full review of the effect of the positions set forth in the TAMs anytime soon.
This legislation would amend the Internal Revenue Code to specify that certain associated development costs are to be included in eligible basis. In many cases, the largest item excluded from eligible basis under the TAMs is ``impact fees.'' Impact fees are fees required by the government ``as a condition to the development'' and considered ineligible because they are one- time costs, unlike building permits that need to be renewed each time a building is built. These fees cover a wide range of infrastructure improvements including sewer lines, schools, and roads. Certainly, whether or not they are includable in basis for the purpose of calculating the amount of tax credit, these costs will be incurred and will impact the economics of the property. As I mentioned previously, the IRS has recently addressed the inclusion of impact fees in eligible basis, but not other costs directly related to building construction.
Other items that would be severely restricted or excluded from eligible basis under the interpretations expressed in the TAMs are site preparation costs, development fees, professional fees related to developing the property, and construction financing costs. The legislation we are introducing today will clarify that any cost incurred in preparing a site which is reasonably related to the development of a qualified low-income housing property, any reasonable fee paid to the developer, any professional fee relating to an item includable in basis, and any cost of financing attributable to construction of the building is includable in basis for the purpose of calculating the maximum amount of credit a state may allocate to a low- income housing property.
The intent of these clarifications is simply to codify common industry practice before the issuance of the TAMs. Not only will the legislation allow the low-income tax credit program to provide better quality hosing at lower rental rates than would be possible if the positions taken in the TAMs are followed, but clarification will help simplify administration of the credit by giving both taxpayers and the Internal Revenue Service a clearer statement of the standards that apply in calculating credit amounts.
Our economy is not doing as well as we would like, and there is a significant likelihood that we are going to need even more affordable housing in
the not too distant future. We should be proud that we increased the amount of low-income housing tax credits that will be available to help finance this housing. What we need to do now is to make sure that these credits are used as efficiently as possible to provide housing for those who need it the most. The legislation we are introducing today will help achieve that goal.
I ask unanimous consent that the text of this bill be printed in the Record.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I appreciate this opportunity to speak today regarding the Fairness in Asbestos Injury…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I appreciate this opportunity to speak today regarding the Fairness in Asbestos Injury Resolution Act. As debate draws to a close on the motion to proceed to consideration of this bill, I take a few minutes to express my appreciation to those who have worked so hard over the past several years to find a solution to what has become an enormous--and continues to grow every day--problem. I offer my views as to how this process can be revived and lead to a satisfactory resolution yet this year.
First, a bit of history will be helpful. Soon after I arrived in the Senate in 2001, I approached then-Chairman Leahy of the Judiciary Committee and indicated to him that I thought legislation was necessary to come up with a solution to compensate asbestos victims; if we worked on it in an appropriate fashion, it could be passed. I knew the process would be long and difficult, but I thought it was worth pursuing. If we did not begin, we would never conclude that solution. Senator Leahy very graciously agreed and held hearings to explore the feasibility of this approach.
Following the elections of 2002, Chairman Hatch continued those efforts and began formulating a legislative proposal. I agreed to cosponsor that legislation, not because I supported everything in the bill, but because I believed it would provide an incentive for those with a major stake in the resolution of this issue to begin discussions aimed at solutions.
That strategy worked. Discussions began, the major issues were framed, the Judiciary Committee held 4 long
days of markup, and a bill was reported out. However, there were problems with the bill. Still, the process was moving forward. Sometimes it felt like one step forward, two steps backward. But stakeholders continued to negotiate.
Senator Specter, to his credit, brought the parties together and worked on the array of issues other than values and dollar amounts. That process was also extremely helpful in bringing us to the point where we are today.
The majority leader has now incorporated a number of the elements of the Specter-Judge Becker negotiations into the bill before the Senate. Unfortunately, the bill before the Senate is not complete. It still lacks a consensus among the major stakeholders. That is why I have chosen not to cosponsor this substitute amendment when I was asked to do so. It simply, in my judgment, is not ready. Several major issues have not been resolved. I don't believe this is a bill that can be written on the floor of the Senate.
I do believe a solution can still be achieved yet this year if the leaders will make a renewed commitment to continue the process. With a very limited time agreement, no more than 2 or 3 weeks at the most, and with active involvement by leadership, I believe we can reach a solution. It may inevitably be a solution that is least objectionable, but at the very least we can arrive at a solution that almost every stakeholder can accept.
As a matter of information, a constituent of mine by the name of Warren Buffett--some of you may have heard of him--expressed to me his view that there probably is not anything more important that the Congress can do for the economy than to resolve this issue which continues to overhang our economy. The economic impact is important.
Of course, the most compelling reason to find a solution is not simply to provide certainty to the economy; it is, in fact, to provide relief to the many victims of the debilitating and deadly illnesses caused by asbestos.
I know my colleagues understand the scope of the problem before the Senate. The suffering of the victims and their families has been brought home to each of us. We all have many examples of those unfortunate victims and their situations. But I would like to personalize it for my colleagues.
When I served as Governor, I had the pleasure of appointing an Omaha attorney by the name of Mike Amdor to the Nebraska District Court bench. Mike Amdor was a very good friend. I had known him and his family for years. His father had gone to law school with my late father-in-law. I knew his mother when she was alive and worked with his father in the insurance business.
I appointed him to the Nebraska District Court bench. He was a bright and vibrant lawyer, and he came to be a trusted and respected jurist. But more important, he was a consummate family man, a devoted husband, a father of five young children.
In late 1999, he began to experience serious health problems and was soon diagnosed with mesothelioma. Despite a courageous and painful fight with the disease--and it looked at times as though he might be able to beat the odds and survive--he, unfortunately, passed away on November 28, 2002. Mike had been exposed to asbestos as a young man working his way through college and law school. We all know that virtually the only cause of mesothelioma is exposure to asbestos.
Mike's family pursued legal action against those responsible for his exposure and obtained a series of settlements totaling $655,000. However, to date, his widow and five children have realized a total of $56,463.76 on those judgments. Fifty-six thousand dollars and change: less than 10 cents on the dollar because the defendants were bankrupt. Under the terms of the trust fund legislation, which we are debating and working to achieve, his widow and family could receive $1 million.
Mr. President, I ask unanimous consent to have printed in the Record the letter which I received yesterday from Judge Mike Amdor's widow.
Mr. President, it is imperative we get this resolved. This legislation, unfortunately, is not complete. But it could be completed, and completed relatively quickly, with the right approach. And the right approach is to put the stakeholders in a room, with guidance from the leadership on both sides of the aisle, with a firm deadline, and with a firm charge to come to a resolution. It can be done, and, moreover, it should be done.
The judge's case is a tragedy, but it does not stand alone, unfortunately. There are hundreds, yet thousands, of cases similar to Mike and Cathy Amdor's. There will be future victims who will not receive compensation because there will not be anybody left to collect from. I am committed to the trust fund approach because I believe it represents the best opportunity for those who are sick, and those who will become sick, to obtain reasonable compensation for their suffering. I remain optimistic that it can be done if we demonstrate the resolve, the determination, to put politics aside and get it done.
We are now on the threshold of floor action on the bill. I urge the leadership to renew their commitment to a process which I and others on both sides of the aisle believe can still work. Fair treatment for thousands of asbestos victims is at stake, and we have come too far to quit now. We must make the final push to reach consensus.
Again, I commend the hundreds of people who have spent thousands of hours working towards a solution. Those who have struggled with this issue have worked in good faith, determined to find the mechanism to compensate those victims and those who will in the future fall victim to asbestos. I still believe we can do this, and I know with absolute certainty, though, that we must.
Mr. President, I appreciate this opportunity to address the body today. I hope my colleagues will join together in asking our leaders to work together to come up with a solution that will meet the needs and will meet the opportunities that this legislation represents. But I think it has to be other legislation. This legislation is not yet ready to be passed. But with a very brief period of intense negotiation and working, with the support of the leaders, I do believe it can be. In the final analysis, it must be.
Thank you, Mr. President.
Mr. President, today, I am proud to introduce, along with my colleagues Senator DeWine and Senator Feinstein, legislation which will make our roads safer and last longer. Anyone who has ever shared…
Mr. President, today, I am proud to introduce, along with my colleagues Senator DeWine and Senator Feinstein, legislation which will make our roads safer and last longer. Anyone who has ever shared the road with a large tractor trailer truck has wondered whether the truck driver is aware of the smaller vehicles around the truck. Anyone who has seen the third trailer on a triple-trailer truck swinging around like the tail end of a snake knows that these trucks are to be avoided.
The State of New Jersey sees its share of the Nation's truck traffic, but, incidentally, not its share of federal highway dollars. We are concerned about these 53-foot, 80,000-pound vehicles on our highways and the pressure from other states to increase weight and length limitations to allow bigger trucks to come through our State. This
makes truck safety even more important to New Jersey drivers.
Twelve years ago, I got a provision into the highway reauthorization bill we call ``ICE-TEA'' to ban triple-trailer trucks and other so- called ``longer combination vehicles'', LCVs, from New Jersey and most other States. At that time and ever since, the trucking industry has fought to defeat and repeal this ban, under the guise of arguments for ``states' rights'' and ``unfair re-distribution of business to railroads.'' But these are not rational arguments for allowing bigger and heavier trucks as well as triple-trailer trucks on our roads. Additionally, the trucking industry's proclaimed hardships have not materialized. In fact, the trucking companies have survived the current laws quite well, and trucks have refined their role in our national freight transportation system.
Our bill, the ``Safe Highways and Infrastructure Preservation Act, will extend the current limited ban which only applies to our 44,000- mile Interstate Highway System to the entire 156,000-mile National Highway System, NHS. This extension will make more roads safer and will further reduce the wear and tear of our highways and bridges.
Bigger trucks are not safe. The U.S. Department of Transportation has determined that multi-trailer trucks are likely to be involved in more fatal crashes--11 percent more--than today's single-trailer trucks. By expanding the limits on triples and other longer combination vehicles to the entire NHS--including more than 2,000 miles of highway in New Jersey--the Safe Highways and Infrastructure Protection Act will save lives and prevent further deterioration of our roads and bridges.
Triple-trailers and other LCVs do more damage to our roads and bridges but don't come close to paying associated maintenance and repair costs. The fees, tolls and gasoline taxes paid by the operator of a 100,000-pound truck only covers 40 percent of the cost of the damage that truck does to our roads and bridges. The rest of the taxpayers make up the difference. I believe that motorists should not have to share the road with these dangerous behemoths and pay for the extra damage they cause.
I thank my colleagues Senator DeWine and Senator Feinstein for joining me in sponsoring this important legislation, and I look forward to working with my colleagues in the Congress to improve the highway safety and increase the remaining life of our country's roads and bridges.
Mr. President, today Senator Mike DeWine of Ohio and I are helping to make a big stride in re-arming our country in the war against drunk driving. Together, we have introduced two pieces of legislation which will help reduce the number of civilian casualties in this war by arming our government safety officials with the weapons they need to keep drunk drivers off of our roads.
First, I am proud to be a cosponsor of Senator DeWine's legislation on improving enforcement of drunk driving laws. There are some good drunk driving laws on the books and they should not be ignored. Since September 11, 2001, much of our country's law enforcement focus has been on ensuring the security of citizens from terrorist attack. This legislation will ensure that efforts to reduce drunk driving are not given short shrift. Almost 18,000 people died last year in alcohol- related motor vehicle traffic crashes, and we must not neglect the safety of our highways. This bill provides needed resources for law enforcement and will deter people from drinking and driving to begin with.
Second, I am proud to introduce, along with Senator DeWine, legislation targeting higher-risk drivers. This includes repeat offenders and drivers with blood alcohol concentration levels of 0.15 percent or higher. Once these offenders are caught, we need to make sure they don't fall through the cracks in the legal system. These criminals should not be behind the wheel--I believe they are a menace to our society, and we should not tolerate their existence.
I have long been interested in making our roads and highways safer. During my previous tenure, I saw to it that the Federal government took responsibility for reducing the number of fatalities due to drunk driving. I authored laws to increase the minimum drinking age for alcoholic beverages from 18 to 21, and to encourage States to establish .08 percent as the blood alcohol concentration standard for drunk driving nationwide. These laws have made our roads and highways safer and my hope is that they have saved many precious lives.
I feel that the Federal Government needs to take a strong leadership role to reduce alcohol-impaired driving. States cannot deal with these problems in a comprehensive manner. We have passed legislation encouraging states to establish tougher standards for highways safety and drunk driving, but: 32 States still don't have a primary enforcement safety belt law; 11 States still have not adopted the .08 percent Blood Alcohol Content (BAC) standard; 24 States still don't have an open container law; and 27 States still don't have a repeat offender law for drunk driving offenses.
I am particularly disappointed that my home State of New Jersey has not yet adopted the .08 percent BAC standard. At risk are millions of dollars in Federal highway funding that our State desperately needs to repair and improve our roads and bridges. Here in Congress, I fight desperately for this funding. But the State puts this funding at risk rather than make a sensible safety choice and adopt a .08 percent BAC standard. This is why I feel that the Federal Government needs to take a leadership role in setting policies that will save lives by reducing drunk driving.
I feel that States need stronger ``encouragement'' to address these important highway safety issues. We have already tried threatening withholding highway construction funds, but if we allow a loophole for States to recover the funds within 4 years; maybe that still is not enough encouragement.
Now it is time to take the next step in getting drunk drivers off our roads. I look forward to working with Senator DeWine and the rest of my colleagues in the Senate to reduce the 18,000 alcohol-related traffic fatalities that occur each year. I urge my colleagues to join me and Senator DeWine in supporting both of these important pieces of legislation.
Bill Text
Latest available legislative text
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1115 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1115
To amend the Toxic Substances Control Act to reduce the health risks
posed by asbestos-containing products.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 22, 2003
Mrs. Murray (for herself, Mr. Dayton, Ms. Cantwell, Mr. Baucus, Mr.
Leahy, Mrs. Boxer, and Mr. Jeffords) introduced the following bill;
which was read twice and referred to the Committee on Environment and
Public Works
_______________________________________________________________________
A BILL
To amend the Toxic Substances Control Act to reduce the health risks
posed by asbestos-containing products.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ban Asbestos in America Act of
2003''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the Administrator of the Environmental Protection
Agency has classified asbestos as a category A human
carcinogen, the highest cancer hazard classification for a
substance;
(2) there is no known safe level of exposure to asbestos;
(3)(A) in hearings before Congress in the early 1970s, the
example of asbestos was used to justify the need for
comprehensive legislation on toxic substances; and
(B) in 1976, Congress passed the Toxic Substances Control
Act (15 U.S.C. 2601 et seq.);
(4) in 1989, the Administrator promulgated final
regulations under title II of the Toxic Substances Control Act
(15 U.S.C. 2641 et seq.) to phase out asbestos in consumer
products by 1997;
(5) in 1991, the United States Court of Appeals for the 5th
Circuit overturned portions of the regulations, and the
Government did not appeal the decision to the Supreme Court;
(6) as a result, while new applications for asbestos were
banned, asbestos is still being used in some consumer and
industrial products in the United States;
(7) the United States Geological Survey has determined that
in 2000, companies in the United States consumed 15,000 metric
tons of chrysotile asbestos, of which approximately 62 percent
was consumed in roofing products, 22 percent in gaskets, 12
percent in friction products, and 4 percent in other products;
(8) available evidence suggests that--
(A) imports of some types of asbestos-containing
products may be increasing; and
(B) some of those products are imported from
foreign countries in which asbestos is poorly
regulated;
(9) many people in the United States incorrectly believe
that--
(A) asbestos has been banned in the United States;
and
(B) there is no risk of exposure to asbestos
through the use of new commercial products;
(10) the Department of Commerce estimates that in 2000, the
United States imported 51,483 metric tons of asbestos-cement
products;
(11) banning asbestos from being used in or imported into
the United States will provide certainty to manufacturers,
builders, environmental remediation firms, workers, and
consumers that after a specific date, asbestos will not be
added to new construction and manufacturing materials used in
this country;
(12) asbestos has been banned in Argentina, Australia,
Austria, Belgium, Chile, Croatia, the Czech Republic, Denmark,
Finland, France, Germany, Iceland, Ireland, Italy, Latvia,
Luxembourg, the Netherlands, Norway, Poland, Saudi Arabia, the
Slovak Republic, Spain, Sweden, Switzerland, and the United
Kingdom;
(13) asbestos will be banned throughout the European Union
in 2005;
(14) in 2000, the World Trade Organization upheld the right
of France to ban asbestos, with the United States Trade
Representative filing a brief in support of the right of France
to ban asbestos;
(15) the 1999 brief by the United States Trade
Representative stated, ``In the view of the United States,
chrysotile asbestos is a toxic material that presents a serious
risk to human health.'';
(16) people in the United States have been exposed to
harmful levels of asbestos as a contaminant of other minerals;
(17) in the town of Libby, Montana, workers and residents
have been exposed to dangerous levels of asbestos for
generations because of mining operations at the W.R. Grace
vermiculite mine located in that town;
(18) the Agency for Toxic Substances and Disease Registry
found that over a 20-year period, ``mortality in Libby
resulting from asbestosis was approximately 40 to 80 times
higher than expected. Mesothelioma mortality was also
elevated.'';
(19)(A) in response to this crisis, in January 2002, the
Governor of Montana requested that the Administrator of the
Environmental Protection Agency designate Libby as a Superfund
site; and
(B) on October 23, 2002, the Administrator placed Libby on
the National Priorities List;
(20)(A) vermiculite from Libby was shipped for processing
to 42 States; and
(B) Federal agencies are investigating potential harmful
exposures to asbestos-contaminated vermiculite at sites
throughout the United States;
(21) the Administrator has identified 14 sites that have
dangerous levels of asbestos-tainted vermiculite and require
cleanup efforts; and
(22) although it is impracticable to eliminate exposure to
asbestos entirely because asbestos is a naturally occurring
mineral in the environment and occurs in several deposits
throughout the United States, Congress needs to do more to
protect the public from exposure to asbestos and Congress has the power
to prohibit the continued, intentional use of asbestos in consumer
products.
SEC. 3. ASBESTOS-CONTAINING PRODUCTS.
(a) In General.--Title II of the Toxic Substances Control Act (15
U.S.C. 2641 et seq.) is amended--
(1) by inserting before section 201 (15 U.S.C. 2641) the
following:
``Subtitle A--General Provisions'';
and
(2) by adding at the end the following:
``Subtitle B--Asbestos-Containing Products
``SEC. 221. DEFINITIONS.
``In this subtitle:
``(1) Asbestos-containing product.--The term `asbestos-
containing product' means any product (including any part) to
which asbestos is deliberately or knowingly added or in which
asbestos is deliberately or knowingly used in any
concentration.
``(2) Contaminant-asbestos product.--The term `contaminant-
asbestos product' means any product that contains asbestos as a
contaminant of any mineral or other substance, in any
concentration.
``(3) Distribute in commerce.--
``(A) In general.--The term `distribute in
commerce' has the meaning given the term in section 3.
``(B) Exclusions.--The term `distribute in
commerce' does not include--
``(i) an action taken with respect to an
asbestos-containing product in connection with
the end use of the asbestos-containing product
by a person that is an end user; or
``(ii) distribution of an asbestos-
containing product by a person solely for the
purpose of disposal of the asbestos-containing
product in compliance with applicable Federal,
State, and local requirements.
``(4) Durable fiber.--
``(A) In general.--The term `durable fiber' means a
silicate fiber that--
``(i) occurs naturally in the environment;
and
``(ii) is similar to asbestos in--
``(I) resistance to dissolution;
``(II) leaching; and
``(III) other physical, chemical,
or biological processes expected from
contact with lung cells and other cells
and fluids in the human body.
``(B) Inclusions.--The term `durable fiber'
includes--
``(i) richterite;
``(ii) winchite;
``(iii) erionite; and
``(iv) nonasbestiform varieties of
crocidolite, amosite, anthophyllite, tremolite,
and actinolite.
``(5) Fiber.--The term `fiber' means an acicular single
crystal or similarly elongated polycrystalline aggregate
particle with a length to width ratio of 3 to 1 or greater.
``(6) Person.--The term `person' means--
``(A) any individual;
``(B) any corporation, company, association, firm,
partnership, joint venture, sole proprietorship, or
other for-profit or nonprofit business entity
(including any manufacturer, importer, distributor, or
processor);
``(C) any Federal, State, or local department,
agency, or instrumentality; and
``(D) any interstate body.
``SEC. 222. NATIONAL ACADEMY OF SCIENCES STUDY.
``The Administrator shall enter into a contract with the National
Academy of Sciences to study and, not later than 18 months after the
date of enactment of this subtitle, provide the Administrator, and
other Federal agencies, as appropriate--
``(1) a description of the current state of the science
relating to the human health effects of exposure to asbestos
and other durable fibers; and
``(2) recommendations for the establishment of--
``(A) a uniform system for the establishment of
asbestos exposure standards for workers, school
children, and other populations; and
``(B) a uniform system for the establishment of
protocols for detecting and measuring asbestos.
``SEC. 223. ASBESTOS POLICIES PANEL.
``(a) Panel.--
``(1) In general.--The Administrator shall establish an
Asbestos Policies Panel (referred to in this section as the
`panel') to study asbestos and other durable fibers.
``(2) Membership.--The panel shall be comprised of
representatives of--
``(A) the Secretary of Labor;
``(B) the Secretary of Health and Human Services;
and
``(C) the Chairman of the Consumer Product Safety
Commission;
``(D) nongovernmental environmental, public health,
and consumer organizations;
``(E) industry;
``(F) school officials;
``(G) public health officials;
``(H) labor organizations; and
``(I) the public.
``(b) Duties.--The panel shall--
``(1) provide independent advice and counsel to the
Administrator and other Federal agencies on policy issues
associated with the use and management of asbestos and other
durable fibers; and
``(2) study and, not later than 2 years after the date of
enactment of this subtitle, provide the Administrator, other
Federal agencies, and Congress recommendations concerning--
``(A) implementation of subtitle A;
``(B) grant programs under subtitle A;
``(C) revisions to the national emissions standards
for hazardous air pollutants promulgated under the
Clean Air Act (42 U.S.C. 7401 et seq.);
``(D) legislative and regulatory options for
improving consumer and worker protections against
harmful health effects of exposure to asbestos and
durable fibers;
``(E) whether the definition of asbestos-containing
material, meaning any material that contains more than
1 percent asbestos by weight, should be modified
throughout the Code of Federal Regulations;
``(F) the feasibility of establishing a durable
fibers testing program;
``(G) options to improve protections against
exposure to asbestos from asbestos-containing products
and contaminant-asbestos products in buildings;
``(H) current research on and technologies for
disposal of asbestos-containing products and
contaminant-asbestos products; and
``(I) at the option of the panel, the effects on
human health that may result from exposure to ceramic,
carbon, and other manmade fibers.
``SEC. 224. STUDY OF ASBESTOS-CONTAINING PRODUCTS AND CONTAMINANT-
ASBESTOS PRODUCTS.
``(a) In General.--In consultation with the Secretary of Labor, the
Chairman of the International Trade Commission, the Chairman of the
Consumer Product Safety Commission, and the Assistant Secretary for
Occupational Safety and Health, the Administrator shall conduct a study
on the status of the manufacture, processing, distribution in commerce,
ownership, importation, and disposal of asbestos-containing products
and contaminant-asbestos products in the United States.
``(b) Issues.--In conducting the study, the Administrator shall
examine--
``(1) how consumers, workers, and businesses use asbestos-
containing products and contaminant-asbestos products that are
entering commerce as of the date of enactment of this subtitle;
and
``(2) the extent to which consumers and workers are being
exposed to unhealthful levels of asbestos through exposure to
products described in paragraph (1).
``(c) Report.--Not later than 18 months after the date of enactment
of this subtitle, the Administrator shall submit to the Committee on
Energy and Commerce of the House of Representatives and the Committee
on Environment and Public Works of the Senate a report on the results
of the study.
``SEC. 225. PROHIBITION ON ASBESTOS-CONTAINING PRODUCTS.
``(a) In General.--Subject to subsection (b), the Administrator
shall promulgate--
``(1) not later than 1 year after the date of enactment of
this subtitle, proposed regulations that--
``(A) prohibit persons from manufacturing,
processing, or distributing in commerce asbestos-
containing products; and
``(B) provide for implementation of subsections (b)
and (c); and
``(2) not later than 2 years after the date of enactment of
this subtitle, final regulations that, effective 60 days after
the date of promulgation, prohibit persons from manufacturing,
processing, or distributing in commerce asbestos-containing
products.
``(b) Exemptions.--
``(1) In general.--Any person may petition the
Administrator for, and the Administrator may grant an exemption
from the requirements of subsection (a) if the Administrator
determines that--
``(A) the exemption would not result in an
unreasonable risk of injury to public health or the
environment; and
``(B) the person has made good faith efforts to
develop, but has been unable to develop, a substance,
or identify a mineral, that--
``(i) does not present an unreasonable risk
of injury to public health or the environment;
and
``(ii) may be substituted for an asbestos-
containing product.
``(2) Terms and conditions.--An exemption granted under
this subsection shall be in effect for such period (not to
exceed 1 year) and subject to such terms and conditions as the
Administrator may prescribe.
``(c) Disposal.--
``(1) In general.--Except as provided in paragraph (2), not
later than 3 years after the date of enactment of this
subtitle, each person that possesses an asbestos-containing
product that is subject to the prohibition established under
this section shall dispose of the asbestos-containing product,
by a means that is in compliance with applicable Federal,
State, and local requirements.
``(2) Exemption.--Nothing in paragraph (1)--
``(A) applies to an asbestos-containing product
that--
``(i) is no longer in the stream of
commerce; or
``(ii) is in the possession of an end user;
or
``(B) requires that an asbestos-containing product
described in subparagraph (A) be removed or replaced.
``SEC. 226. PUBLIC EDUCATION PROGRAM.
``(a) In General.--Not later than 2 years after the date of
enactment of this subtitle, and subject to subsection (c), in
consultation with the Chairman of the Consumer Product Safety
Commission and the Secretary of Labor, the Administrator shall
establish a program to increase awareness of the dangers posed by
asbestos-containing products and contaminant-asbestos products in homes
and workplaces.
``(b) Greatest Risks.--In establishing the program, the
Administrator shall--
``(1) base the program on the results of the study
conducted under section 224;
``(2) give priority to asbestos-containing products and
contaminant-asbestos products used by consumers and workers
that pose the greatest risk of injury to human health; and
``(3) at the option of the Administrator on receipt of a
recommendation from the Asbestos Policies Panel, include in the
program the conduct of projects and activities to increase
public awareness of the effects on human health that may result
from exposure to--
``(A) durable fibers; and
``(B) ceramic, carbon, and other manmade fibers.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
(b) Vermiculite Insulation.--Not later than 180 days after the date
of enactment of this Act, the Administrator of the Environmental
Protection Agency and the Consumer Product Safety Commission shall
begin a national campaign to educate consumers concerning--
(1) the dangers of vermiculite insulation that may be
contaminated with asbestos; and
(2) measures that homeowners and business owners can take
to protect against those dangers.
SEC. 4. ASBESTOS-CAUSED DISEASES.
Subpart 1 of part C of title IV of the Public Health Service Act
(42 U.S.C. 285 et seq.) is amended by adding at the end the following:
``SEC. 417D. RESEARCH ON ASBESTOS-CAUSED DISEASES.
``(a) In General.--The Secretary, acting through the Director of
NIH and the Director of the Centers for Disease Control and Prevention,
shall expand, intensify, and coordinate programs for the conduct and
support of research on diseases caused by exposure to asbestos,
particularly mesothelioma, asbestosis, and pleural injuries.
``(b) Administration.--The Secretary shall carry out this section--
``(1) through the Director of NIH and the Director of the
CDC (Centers for Disease Control and Prevention); and
``(2) in collaboration with the Administrator of the Agency
for Toxic Substances and Disease Registry and the head of any
other agency that the Secretary determines to be appropriate.
``(c) Mesothelioma Registry.--Not later than 1 year after the date
of enactment of this section, the Director of the Centers for Disease
Control and Prevention, in cooperation with the Director of the
National Institute for Occupational Safety and Health and the
Administrator of the Agency for Toxic Substances and Disease Registry,
shall establish a mechanism by which to obtain data from State cancer
registries and other cancer registries, which shall form the basis for
establishing a Mesothelioma Registry.
``(d) Authorization of Appropriations.--In addition to amounts made
available for the purposes described in subsection (a) under other law,
there are authorized to be appropriated to carry out this section such
sums as are necessary for fiscal year 2004 and each fiscal year
thereafter.
``SEC. 417E. MESOTHELIOMA RESEARCH AND TREATMENT CENTERS.
``(a) In General.--The Director of NIH shall provide $1,000,000 for
each of fiscal years 2004 through 2008 for each of up to 10
mesothelioma disease research and treatment centers.
``(b) Requirements.--The Centers shall--
``(1) be chosen through competitive peer review;
``(2) be geographically distributed throughout the United
States with special consideration given to areas of high
incidence of mesothelioma disease;
``(3) be closely associated with Department of Veterans
Affairs medical centers to provide research benefits and care
to veterans, who have suffered excessively from mesothelioma;
``(4) be engaged in research to provide mechanisms for
detection and prevention of mesothelioma, particularly in the
areas of pain management and cures;
``(5) be engaged in public education about mesothelioma and
prevention, screening, and treatment;
``(6) be participants in the National Mesothelioma
Registry;
``(7) be coordinated in their research and treatment
efforts with other Centers and institutions involved in
exemplary mesothelioma research; and
``(8) be focused on research and treatments for
mesothelioma that have historically been underfunded.
``(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2004 through 2008.''.
SEC. 5. CONFORMING AMENDMENTS.
The table of contents in section 1 of the Toxic Substances Control
Act (15 U.S.C. prec. 2601) is amended--
(1) by inserting before the item relating to section 201
the following:
``Subtitle A--General Provisions'';
and
(2) by adding at the end of the items relating to title II
the following:
``Subtitle B--Asbestos-Containing Products
``Sec. 221. Definitions.
``Sec. 222. National Academy of Sciences Study.
``Sec. 223. Asbestos Policies Panel.
``Sec. 224. Study of asbestos-containing products and
contaminant-asbestos products.
``Sec. 225. Prohibition on asbestos-containing products.
``Sec. 226. Public education program.''.
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