Gasoline Free Market Competition Act of 2003
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Sponsor introductory remarks on measure. (CR S3317)
March 30, 2004
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Introduced in Senate
October 15, 2003
Sponsor introductory remarks on measure. (CR S12621)
October 15, 2003
Read twice and referred to the Committee on the Judiciary.
October 15, 2003
Sponsor introductory remarks on measure. (CR S2836-2839)
March 22, 2004
Sponsor introductory remarks on measure. (CR S3317)
March 30, 2004
Floor Debate
19 membersWhat members said about S. 1737 on the floor
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Floor Debate
19 membersWhat members said about S. 1737 on the floor
Mr. President, last week I took the floor of the Senate to note the decision which has been made by National Public Radio concerning the host of Morning Edition with Bob Edwards. It was announced in…
Mr. President, last week I took the floor of the Senate to note the decision which has been made by National Public Radio concerning the host of Morning Edition with Bob Edwards. It was announced in the Washington Post that National Public Radio management had decided after some 24 years to relieve Mr. Edwards of his responsibility as host of the morning show. There was not much given by way of explanation, and it was clear from comments by Bob Edwards that it wasn't his decision.
It has been interesting since I took the floor and noted my disappointment over that decision the response which I received from my colleagues in Congress. It turns out Members of Congress on both sides of the aisle feel as I do--that this decision by National Public Radio is the wrong decision; that Bob Edwards, who has been not only a host of this program but the most successful morning voice in America, is being moved away from this assignment in a situation and in a circumstance that is almost impossible to understand.
Many of my colleagues have come to me and asked, What can we do? Can we go after the appropriations of NPR? I don't recommend that at all. I think National Public Radio is such an important institution more than any single individual that we should do this in a positive and constructive fashion.
What I encourage my colleagues to do is to remember that National Public Radio is, in fact, public radio; that all of us who enjoy it so much, who rely on it so much, and who contribute to it from our own individual finances, have a responsibility if we disagree with this decision by the management. I have encouraged my friends and those who feel as I do to get onto their Internet and e-mail, and to e-mail NPR.org, to do it immediately and let them know that their decision to remove Bob Edwards at the end of this month of April is the wrong decision. I have done it myself.
I have received a reply from Mr. Kernis which, frankly, I find very troubling. When asked why they think this man who has become such an institution in America should be removed, the response is nothing short of gobbledygook. They talk about bringing someone who has depth and experience. But who else would you turn to rather than Bob Edwards?
I would like to make part of the Record at the end of my statement a series of columns and editorials from across the United States from those who enjoy Bob Edwards in the morning and can't imagine public radio without him. Some of these, starting with the Chicago Tribune, were published recently as the news reached that city of the decision by National Public Radio.
As they said in this editorial in the Chicago Tribune, people do not understand why this decision was made. Here is what they concluded in the Tribune editorial about Bob Edwards:
In contrast to their audience, though, NPR executives seem
to have forgotten about the public part of their title. In
commercial broadcasting, a beloved host who had presided over
huge ratings gains would almost never be nudged aside. Public
broadcasting is valuable precisely because it is relatively
free from such worldly concerns. But it is also, effectively,
a public trust, and for the public to continue to trust it,
this institution needs to do a better job of explaining its
momentous decisions. This is not the only newspaper, by far.
In the St. Louis area, Linda Ellerbee, known to many of us because of her news reporting and posting of programs wrote: ``Time and Age: NPR Tossing Out Bob Edwards.'' Linda Ellerbee should know. She was moved away from a television network position because they thought for a woman she was too old. She says:
But we're not aging the way our parents did. We're
reinventing the process. Besides, there are a lot of us out
here.
The point she made in her article about Bob Edwards is at his advanced age of 56--which I still consider very young--he speaks not only to people of my generation but so many older and younger. If it is the marketing belief of NPR they need to have a new, fresh voice, they are missing the big picture.
For 24 years every morning when my clock radio goes on, I hear Bob Edwards. I know whether times are bad, dangerous, or peaceful. I can count on him. I have done it this morning. I have done it so many mornings. I cannot imagine ``Morning Edition'' without him.
There is also a comment from the Washington Post, Richard Cohen. He tells about the same experience.
Now the news from NPR is that Edwards will soon be gone.
He talked about the fact he may just decide to start listening to Mozart on disk, rather than turning on ``Morning Edition.'' He says:
NPR Executive Vice President Ken Stern told the Washington
Post that the firing of Edwards was part of a ``natural
evolution,'' that had ``to do with the changing needs of our
listeners.'' What ``natural evolution''? What does that mean?
And what is ``changing needs''?
Mr. Cohen goes on to say to the Washington Post:
Listen, Ken, my needs haven't changed. I still want news in
the morning. I still want smart features. I do not want
interviews with airheaded celebrities a la Matt and Katie or,
worse, interviews with the latest humorousless person Donald
Trump has just fired from ``The Apprentice.''
He concludes:
But the firing-cum-transfer of Edwards (he may become a
senior correspondent) is nonetheless disquieting. Maybe my
fear is misplaced and maybe the end of the Edwards era will
turn out not to be a bad thing. Still, it will be jarring to
wake up in the morning with a stranger.
He closes by saying:
Goodbye, Bob. Get some sleep. You've earned it.
Mr. Cohen may have given up, but I haven't. I still believe the people across America should be contacting National Public Radio, npr.org. Send them your e-mail that Bob Edwards, ``Morning Edition'' is important to you. As a Senator, as a citizen, he is important to me.
The San Diego Union-Tribune in an editorial entitled ``NPR Show Is a Big Hit, So It Must Need Fixing?'' by Robert Laurence:
This story makes no sense.
As such, it's the kind of story that can only happen in the
topsy-turvy Orwellian world of public broadcasting.
It's this: The host of a hugely successful morning radio
show, a show where ratings have done nothing but climb for
years, a man whose skill as an interviewer is unexcelled
in the world of broadcasting, whose very voice helps
millions of Americans get their day grounded, is being
evicted from a seat in the studio.
Mr. Laurence goes on to say:
That's Bob Edwards, since November 1979 the host of
National Public Radio's ``Morning Edition . . . ''
He goes on to talk about the explanations from NPR management, explanations he and I both find wanting. And Scripps Howard, Bill Maxwell and the St. Petersburg Times, entitled ``A Morning Voice That Will Be Missed:''
All good things must come to an end.
And so it is with the ouster of Bob Edwards . . .
To say that Edwards is the end of an era is an
understatement.
He continues:
Thanks in large part to ``Morning Edition,'' when I report
to the St. Petersburg Times editorial board each morning at
9:30, I know what's going on in the Nation and the rest of
the world.
Millions of us would say the same thing.
Columbus Dispatch, Tim Feran: ``Shame On NPR For Axing Edwards Before Big Date.''
The big date, of course, is the 25th anniversary on the air. I agree with Mr. Feran.
The Cleveland Plain Dealer: ``Not a Good Way To Start The Day,'' a title from Connie Schultz, a columnist. She writes:
The man I've been waking up with is leaving me.
She talks about her disappointment and how hard it is to understand why NPR is making this decision.
Turning to the Seattle Post Intelligencer, Bill Radke, a columnist, writes: ``Mornings Without NPR's Colonel Bob.''
He starts:
Bob Edwards has been canned, and there seem to be two types
of people in the world: The ones saying, ``You've ruined my
life, Bob's life, and the lives of everyone I know,'' and the
ones saying, ``Who is Bob Edwards?'' Those who did not listen
to Bob Edwards may now never know. Those who do, understand
full well.
The Hartford Courant, in Connecticut, by Jim Shea:
It's not often that you can use the words National Public
Radio and stupid in the same sentence but such an occasion
has arisen:
National Public Radio's decision to replace ``Morning
Edition'' host Bob Edwards is just plain stupid. What are you
bozos who run NPR thinking? You know, we've really got to do
something about the fabulous ratings we have.
Bob Edwards is not just the bright, witty, urbane,
insightful and immensely likable host of ``Morning Edition,''
he is for the program's 13 million weekly listeners the voice
of the morning.
There is something soothing, something comforting,
something reassuring about stumbling from slumber into the
gentle embrace of Edwards' mellifluous baritone that makes
morning bearable.
He speaks for many people when he writes that.
Finally, on salon.com, Alexandra Marshall makes many of the same points about the importance of Bob Edwards' ``Morning Edition.''
Those who are following this debate may be puzzled as to why a Senator would stand up in this Chamber to make an issue over the replacement of a man who is, by all measures, just another voice in the morning. But Bob Edwards is not another voice in the morning. He is the voice we have counted on and the voice we rely on.
If he is as important to you as he is to so many of us, please, understand National Public Radio exists because of people like us who listen to it and contribute to it out of our own pockets, love it, and want it to continue to be the great institution which it is today. Those who are shareholders of National Public Radio by virtue of our contributions, if we disagree with this decision, have an obligation to tell the management right now.
I encourage those who feel as I do that the replacement of Bob Edwards is wrong, to do two things: First, go to your Internet, e-mail npr.org and let them know what you think; and second, call your local affiliate of the National Public Radio system and let them know this is a sad and sorry decision.
I yield the floor.
Mr. President, I thank the Senator from New Jersey for his leadership on this and so many issues. He expresses the feelings I have heard from soldiers returning from Iraq who are in Walter Reed Hospital recuperating, who are still strong in spirit and still dedicated to our country and hoping that we will help them win this battle and let them come home safely. There is a lot more we can and should do. I thank the Senator from New Jersey for his leadership in this area.
Dietary Supplements
Mr. President, there has been an issue I have worked on now for almost 2 years relative to dietary supplements in America. We passed a law called the Dietary Supplement and Health Education Act in 1994. In passage of that legislation, we attempted to establish a standard for the legal treatment and regulation of dietary supplements. They are known to many Americans. It is a multibillion-dollar industry.
There are many of us who take vitamins and minerals and believe they are good for our health. I took one this morning. I hope it helps me. I don't think it will hurt me. For a lot of Americans, it is something they rely on.
There is another category that goes beyond ordinary vitamins and minerals, which are products known as dietary supplements. In many respects,
what they consist of are herbal extracts, so-called natural products that are put in combination and sold in stores with many claims about whether they can help you from a health viewpoint.
Most Americans who walk into a drugstore, pharmacy, or nutritional supplement store believe the products on the shelf being sold to them are, in fact, safe. They may believe they have been tested. They may believe the proper clinical evaluation has been done. They may believe the Government is monitoring whether there is something wrong with the drug that causes a bad health event. Those beliefs are right and true and accurate, when it comes to prescription drugs. They have to go through extensive testing before they are ever put on the market. The FDA and many agencies look at them carefully to make certain they are both safe and effective--in other words, that they will not harm you and, in fact, will do what they are supposed to do and help you. That happens for prescription drugs, and it is what happens to the key ingredients in over-the-counter drugs.
When you walk into a dietary supplement store, a health store, that is not the case at all. What you see on the shelves there are products which, by and large, have never, ever been tested. Never tested. The law we passed said the makers of those products, unlike the pharmaceutical companies that make prescription drugs and some over- the-counter drugs, have no responsibility to test their products for safety before they are sold to the public. In fact, the burden is shifted 180 degrees. The Food and Drug Administration of the Government has the burden to prove that what is sold on the shelf is unsafe.
Think about that for a moment. Think of the hundreds, thousands, tens of thousands or more dietary supplements for sale in the U.S., and you come to the obvious conclusion that there is no Government agency large enough to test every possible combination that can be included in a dietary supplement. So the simple fact is very few are tested.
This week, Consumer Reports magazine reported on the issue of dietary supplements. I think a lot of this magazine. I have subscribed to it over the years. I think what they present is done in a very dispassionate and objective fashion. In this issue, they identify the problem we face in America with dietary supplements. They note the fact that U.S. consumers, since passage of the law I mentioned earlier, have literally spent billions of dollars on dietary supplements. They say it is interesting that for 10 years, although the FDA had the authority to remove an unsafe dietary supplement from the shelf, they never did. I will quote:
Yet, until very recently, the U.S. Food and Drug
Administration had not managed to remove a single dietary
supplement from the market for safety reasons.
After seven years of trying, the agency announced a ban on
the weight-loss aid ephedra in December of 2003. And in March
2004 it warned 23 companies to stop marketing the body-
building supplement androstenedione (andro).
That is a steroid precursor. Here we have it on the books for 10 years, with thousands of products that fall under its purview, and only two have been removed. Frankly, what it comes down to is described later by Bruce Silverglade, legal director of the Center for Science in the Public Interest, a Washington, DC, consumer advocate group:
The standards for demonstrating a supplement is hazardous
are so high that it can take the FDA years to build a case.
Years--while the product is still being sold. How many people at the FDA are responsible for monitoring dietary supplements, a multibillion- dollar industry, with thousands of products? Their supplement division consists of about 60 people with a budget of only $10 million to police a $19.4 billion-a-year industry.
Consumer Reports goes on to draw this comparison:
To regulate drugs, annual sales of which are 12 times the
amount of supplement sales, the FDA has almost 43 times as
much money and almost 48 times as many people.
So it is very clear this agency is not prepared and staffed and, frankly, doesn't have the authority to protect the American consumer. So what happens? People unsuspectingly go into these health food stores, vitamin stores, and see the dietary supplements with all sorts of claims on them; they buy them, they use them, and the consumers of America become the guinea pigs.
We are the ones who are testing these products to see if they are dangerous. You might say, if they are dangerous, if they hurt someone, clearly then the Government will take them off the shelf, right? No, I am sorry, that is not right because understand that the law we passed at the request of the industry does not require dietary supplement manufacturers to report to the Government when people are literally dying from the products they sell.
I am sure many people listening to this debate say that cannot be true. It is true.
Let me give a specific example. Metabolife International, a leading ephedra manufacturer, did not let the Food and Drug Administration know it had received 14,684 complaints of adverse events associated with ephedra products. But Metabolife 356, which you may remember, in the previous 5 years had received notice of 18 heart attacks, 26 strokes, 43 seizures, and 5 deaths. Under the law of the United States of America, Metabolife had no legal responsibility to tell the Government a product it was selling was killing people.
People listen to that and say that cannot be true, but it is. It is a fact.
When a Harris poll surveyed 1,000 Americans about what they thought the law was, they found 59 percent of them said they believe supplements must be approved by a Government agency before they can be sold. They went on to say 68 percent said the Government requires warning labels on a supplement's potential side effects or dangers, and 55 percent said supplement manufacturers cannot make safety claims without solid scientific support.
Sadly, every single response by the overwhelming majority of Americans was plain wrong. There is no Government regulation of the products, there is no requirement for warning labels, and these companies can make safety claims without solid scientific support. That is a fact.
It seems the Institute of Medicine has decided it is time for a change, a change I believe is long overdue. Today the Institute of Medicine released this report. It is a framework for evaluating the safety of dietary supplements. In the fall of 2000, the Food and Drug Administration contracted with the Institute of Medicine to develop a scientific framework for safety evaluation of dietary supplements within the confines of the law. They also asked them to test their framework on six commonly used dietary supplements. The report took more than a year longer to complete than was expected, but it is comprehensive and thorough. It contains many observations we need to scrutinize closely.
First, their framework depends on the collection of data that is not required to be turned over to the FDA by supplement manufacturers, namely adverse event reports.
The IOM report states that the first step in the process for reviewing safety is to look for signals of safety problems, including adverse events. What do I mean by an ``adverse event''? Does it mean if you have an upset stomach from a vitamin you have to report it to the Food and Drug Administration? Does it mean if you get dizzy from taking any kind of supplement, from garlic to fish oil, you have to call the Food and Drug Administration? No.
What I believe the standard should be is serious adverse health events. If you pass out, have a stroke, or heart attack, or die-- serious things that can occur.
Lest you think this is something that does not happen, let me tell you the story of a young man, 16 years old, who lived a few miles from my home in Springfield, IL. Sean Riggins of Lincoln, IL, a 16-year-old high school student, played on the football team. He had a big game coming up. He went over to the local gas station--gas station, mind you--and saw a product on the shelf called Yellow Jackets. It was an ephedra product. Yellow Jackets were supposed to give him energy. This man thought: I need energy; I am going to play football. He purchased this product over the counter at a gas station in Lincoln, IL, washed it down with a Mountain Dew, which happens
to be loaded with caffeine, and started feeling sick. When he got to the football game, he didn't feel good at all. The next day, his mom and dad took him to the hospital, and later that morning he died from a dietary supplement with ephedra. Under the law as it is written, if the parents of Sean Riggins called the company that made Yellow Jackets and said, ``Your product just killed my son,'' that company would not be required under law to even report that to the Government. That is not right.
The Institute of Medicine report we are looking at today recommends that that change. Metabolife misled the Government. Companies that make products such as Yellow Jacket sadly are not much better.
Let me tell you about another company called Rexall Sundown. It marketed an ephedra product called Metab-o-lite described by the Government as having adverse event reports. In other words, people were getting sick who took this product. We heard about it and requested the company provide us with information about the adverse reports, about people getting sick after they took this product.
The response I received was truly astonishing. The company said Rexall Sundown was a new company and had never sold ephedra products. Therefore, it never had any adverse event reports in their possession. They used the oldest trick in the book to shield themselves from liability for the dangerous products they sold. They had dissolved their old company, started a new one with the same name, and tried to escape any liability for the life-threatening products they had been selling. We tried to get more information from them and failed, but we will continue that effort.
Let me also say to people who said, ``Thank goodness, ephedra is off the market, so you can stop worrying,'' that is not the case. The same Consumer Reports magazine that is coming out has a table which I commend to everyone who takes dietary supplements. It is impossible to read this chart, I am sure, on television. I will summarize a few points of it for those who would like to understand what Consumer Reports, an objective magazine, says about 12 supplements. They said you should avoid these supplements.
A supplement that is ``definitely hazardous'' is aristolochic acid. This is something that is sold under a variety of names. They say it is a potent human carcinogen. It can cause cancer potentially, kidney failure, sometimes requiring transplant. The Food and Drug Administration warned consumers and the industry in April 2001. It has been banned in seven European countries and Egypt, Japan, and Venezuela. But it is still being sold in the United States. Aristolochic acid is also known as birthwort, snakeroot, snakeweed, sangree root, and so forth.
Then they list another group of ``very likely hazardous'' products banned in other countries where we have a warning from the FDA: Comfrey, which includes blackwort, bruisewort, and so many other herbal names.
Incidentally, let me say at this moment how difficult it is for consumers to follow this because they change the names on these bottles in the dietary supplement store, and you have no idea what you are buying. The Food and Drug Administration advised the industry take it off the market in July 2001, but it is still being sold. It creates abnormal liver function or damage, often irreversible, causing death.
Androstenedione, I mentioned this earlier. The FDA finally banned it in supplements.
Chaparral is another product which is sold under a variety of names. It causes abnormal liver function or damage, often irreversible. FDA warned consumers in December 1992.
Germander is another product banned in France and Germany.
Kava is an ingredient in a variety of products. FDA warned consumers in March 2002 to avoid it. It is banned in Canada, Germany, Singapore, South Africa, and Switzerland, but it can still be sold legally in the United States because the Food and Drug Administration does not have the power and the authority to police this kind of dangerous product.
Under ``likely hazardous'' products there is one I would like to speak to, bitter orange, citrus aurantium. You will find this in Metabolife Ultra. When they took ephedra out, they put bitter orange in, and there are a lot of other products, diet products, energy products. It can cause high blood pressure and increased risk of heart arythmia.
We wrote to seven companies that make supplements that contain citrus aurantium and asked them: What kind of tests did you engage in to determine whether citrus aurantium, which is now replacing ephedra, is safe? One of the CEOs wrote back and said: We have a scientific study to prove our product is safe. So we looked at the study. The study did not have anything to do with citrus aurantium or bitter orange. It was about the safety of using orange juice--orange juice--in drug metabolism studies.
We then contacted one of the scientists involved in this study and asked: Do you realize this company that is selling thousands of products worth millions of dollars is claiming your scientific study says citrus aurantium is safe?
This scientist came back to us and said: That is an improper use of that study to justify the sale of that product.
So there is no scientific basis for the safety that CEO asserted. These manufacturers are literally putting together dangerous and sometimes lethal combinations of chemicals and selling them under the banner of dietary supplements to unsuspecting American consumers.
For some consumers, it is a waste of money. For others, it is much more dangerous.
There are other products that are mentioned here. I am probably going to fail to pronounce many of them properly: organ/glandular extracts, Lobelia, Pennyroyal oil, Scullcap and Yohimbe. When one goes through these, they will find many of these have been banned in other countries.
One of the conclusions from the Institute of Medicine, after looking at dietary supplements, is unreasonable risk does not mean the Food and Drug Administration has to prove the supplement is harmful.
The report concludes, given the limited amount of data available, definitive statements judging safety of these products may be difficult to completely substantiate scientifically.
The committee determined that concluding a supplement presents an unreasonable risk does not require complete evidence a dietary supplement causes a serious adverse event. In other words, the unreasonable risk standard that is written in the DSHEA law is a standard which frankly is going to be a very difficult one for the FDA or others to prove.
So what they are suggesting at the Institute of Medicine is we look to a different and more reasonable standard. They also talk about premarket review of some of these products, which I think is something that needs to be done.
I particularly believe stimulants should be subject to premarket review so we have some testing to make sure they are safe so many of these products here, such as bitter orange, citrus aurantium, which cause an increase in blood pressure--and, frankly, I believe what they are suggesting in the Institute of Medicine report kind of parallels legislation which I have introduced--to try to bring some sanity to this industry.
This has been a battle which I have been engaged in for almost 2 years now. I know what happens when one takes on a giant industry in America, a multibillion-dollar dietary supplement industry. If one walks into most vitamin stores around America, they will find my name, not in a praiseworthy fashion. They are passing out leaflets saying: Write to Durbin and tell him to stop taking away your vitamins and minerals.
It is a scare tactic. It is a scare tactic from an industry that should be running scared. There are good actors in this industry and there are bad actors, but unfortunately the bad actors are being protected by the good ones.
Right now I believe Americans should be able to buy vitamins and minerals which have been tested and proven, make their own choices about their own health, but I also believe this industry has a responsibility when it sells products that can be dangerous to Americans to do two things.
First, if they are selling stimulants they should be tested in advance so we
do not have another ephedra which is going to take the life of an innocent young boy in Lincoln, IL, or a major league baseball player like Steve Bechler of the Baltimore Orioles.
Second, I believe all of these dietary supplement manufacturers should have a legal obligation to report to the Food and Drug Administration when people get seriously ill or die as a result of taking their products. I think that is the least we should demand.
I am happy to see the Institute of Medicine creating momentum for Congress to finally make a decision. I am happy to see the administration, after more than a year of urging, finally banning ephedra, but more has to be done. Today as we speak, innocent children and consumers across America are buying products which they presume to be safe and they are not.
We have an obligation to American consumers to set a standard of care so they know when they make a purchase, whether it is in a drugstore or in a vitamin store, they are buying a product that is more likely to help them than hurt them. Sadly, the DSHEA law which currently exists does not meet that standard.
I yield the floor, and I suggest the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, in the last couple of hours since we had our vote today, I have been asked by a couple of press…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, in the last couple of hours since we had our vote today, I have been asked by a couple of press people who are lingering in the hallways about the issue of obstructionism. Apparently, there are some who suggest there is obstruction going on in the Senate.
It is interesting to me that there are charges of obstructionism to the Senate's business. We are not voting today, really. We voted once on a cloture vote. We did not vote yesterday. Apparently, we are not voting now until next Wednesday.
Why is that the case? Because there was an amendment offered to increase the minimum wage, and the majority party did not want to vote on the amendment.
It seems to me if there is obstruction around here, it is obstructing the ability to have a vote on an amendment to
increase the minimum wage. The people at the bottom of the economic ladder in this country have not had an increase in the minimum wage for years. It is perfectly appropriate for us to consider that in the context of welfare reform.
So an amendment is offered; but because the majority does not want it to be voted on, business essentially is stopped dead on the floor, and there are no votes, and we are at parade rest for 4 or 5 days. If anybody is obstructing, I would say it is those who brought the welfare reform bill to the floor and then decided they did not want to vote on anything, and we go, day after day, with no votes. And those who create that situation now accuse others of obstructing.
I think it is a curious thing to do, but maybe there is a language here I have not yet learned and do not yet understand. But there is certainly no obstruction on the part of those of us who want to have a vote on the amendments we offered.
Outsourcing of American Jobs
Mr. President, we are going to be turning, we think, in the next week or two back to a piece of legislation that was on the floor of the Senate that was also pulled from consideration because they did not want a vote on an amendment that was pending. When that bill comes back that deals with the issue of tax incentives for foreign sales--when that bill comes back to the floor, I intend to offer an amendment dealing with an issue that has been discussed recently, and that is the movement of jobs from this country to overseas.
We talk a lot about the concern of the outsourcing of jobs. This country, as you know, has lost over 3 million jobs in recent years, the last 3 years or so, 3\1/2\ years, and we are now down a net roughly 2.5 million jobs. We gained a few jobs back, but we are about 2.5 million jobs less than we were 3\1/2\ years ago.
So the question is, will this economy create new jobs? We need them desperately. The other question is, why are we having policies in place that remain in place that actually incentivize the movement of jobs overseas?
Let me describe one of them I intend to fix with an amendment as soon as I have the ability to offer the amendment on the floor of the Senate.
Assume, for a moment, there are two businesses. Both produce garage door openers. They are both located in the United States. They both manufacture garage door openers, and they sell them in the United States. One of them decides they will move to China, so they move their plant to China. They fire their American workers. They hire workers in China. They make the same garage door opener in China and ship it back to our country.
There is one substantial difference now between those two firms, and that is the taxes they will pay on the profits they earn. The company that has moved to China to produce the product to ship back into this country will pay a lower U.S. income tax. In fact, they will largely pay no U.S. income tax.
We have a tax incentive in our law books that says: If you move your plant overseas and produce there for the purpose of shipping back into our country, we will give you a tax cut.
You talk about perversity, this is it. Our country says: We will reward you if you shut down your American company, your American business, move it to China, move it to another country, and ship the product back into our country.
Well, at a time when we are losing jobs and desperately need jobs in our country, the very least we should do--at least the baby step we ought to take--is to shut down the perverse incentive in our Tax Code that says: Ship your jobs overseas and we will give you a big break.
We will have an opportunity to vote on that. The Senate voted on that, actually, in an amendment I offered some years ago, and my amendment came up short. Perhaps having lost now 2.5 million net jobs in the last 3\1/2\ years, the Senate will come to a different conclusion. I hope that is the case because this issue of jobs is critically important.
Trade Agreements
Mr. President, I have spoken often on the floor of the Senate about the subject of international trade. I will do so again briefly, just to say we have recently negotiated two free trade agreements, negotiated by the trade ambassador. I do not expect either, frankly, to come to the floor of the Senate this year. Why? Because I do not expect the administration, which negotiated these trade agreements, will want to have a debate on them: the Central American Free Trade Agreement and the Australian Free Trade Agreement. Why don't they want to have a debate on them? Because, like most recent trade agreements, they are not mutually beneficial; that is, beneficial to us and those with whom we negotiated the treaty. In most cases, they will end up costing this country lost jobs and large trade deficits.
I will not go into great discussion about the so-called CAFTA, Central American Free Trade Agreement, or to go back and talk about NAFTA, the North American Free Trade Agreement, both of which are terrible agreements, or the recent bilateral agreement we did with China, which is an awful agreement, or the agreement with Australia that really shortchanges us in terms of what we should have required to have happen with state trading enterprises. I will not do that. But suffice it to say, I do not expect there to be brought to this floor a debate on this trade agreement by the administration because that is the last thing they want between now and this election, because it will be a significant debate about jobs and whether these trade agreements cost us jobs or gain jobs. The record is quite clear, we are losing jobs as a result of these many trade agreements.
We have the highest trade deficit in the history of this country, by far: a $470 billion trade deficit. Every single day--every single day-- almost $1.5 billion in trade deficit; that is, goods we are importing in excess of goods we are exporting. Someday, someone has to pay the cost of that trade deficit.
Now let me describe my concern about this trade. I am not concerned about expanding trade. I happen to believe it is largely beneficial to expand trade. I think countries that engage in activities because of natural resources, and other things, where they have a natural advantage, that it makes sense for us to trade with them, and for those countries to trade with us in circumstances that are the reverse.
But that is not the case with most trade agreements today. In fact, the case is we have not a doctrine of comparative advantage, as Ricardo used to talk about nearly 200 years ago. The doctrine of comparative advantage is irrelevant. It is a natural advantage that becomes a political advantage by countries that create circumstances of production that are fundamentally unfair with respect to free trade.
An example: A country says: We will not allow workers to organize. If they try to organize, we will fire them. And, oh, by the way, we will not require the payment of any kind of a minimum wage. You can hire workers for 16 cents an hour, if you wish. And, by the way, there is no age issue with respect to child labor, so if you want to pay 16 cents an hour, and hire a 12-year-old kid to do it, that is fine as well. And, also, we will not require the workplace be safe. If you want to hire 12-year-olds, pay them 12 cents an hour, and put them in an unsafe workplace, that is all right, too. By the way, when you do it, and you have a 12-year-old working in an unsafe plant, working 12 hours a day, 7 days a week, you can dump the chemicals into the air and the water from that plant, and that is just fine as well.
Now if countries decide that is the condition of production in their country, and plants move to those countries to hire those workers so they can produce a product to ship back into our country, is that what we should aspire to have American workers compete with? The answer is, no, of course not. Yet that is exactly what is happening today. You think I am wrong? Check the facts. I am not saying in every factory they are hiring 12-year-olds, but I am saying it is happening in many parts of the world. I will give you one example I have used on the floor of the Senate previously to describe in more specific terms the way this works.
This is a picture of a Huffy bicycle. Most people know about Huffy bicycles--20 percent of the American marketplace. You can buy them at K-Mart, you can buy them at Wal-Mart, and you can buy them at Sears. Huffy bicycles used to be made in Ohio. They
were made by workers who made $11 an hour. They would get up and go to their jobs. I am sure they were proud of their jobs. They worked $11- an-hour jobs in Ohio to make Huffy bicycles. Right between the handlebars and the front fender they had a little insignia, a little metal insignia of the American flag.
Well, Huffy bicycles are no longer made in America. They are now made in China. The workers who made Huffy bicycles in Ohio were fired because $11 an hour was too much to pay someone to make a bicycle. Huffy bicycles are now made in China by workers who work 7 days a week, 12 to 14 hours a day, and are paid 33 cents an hour. In fact, Huffy bicycles no longer have the decal of the American flag between the handlebar and the front fender. They have a decal of the globe, descriptive, it seems to me, of what is happening to the elements of production and the manufacturing base in this country.
The question is this: Is it fair competition to ask workers in Ohio, making $11 an hour, to compete with workers in China who work 7 days a week, and make 33 cents an hour? Does that represent fair competition? Is that what we aspire to do? Or is this driving to the bottom the wages of American workers? And is it exporting the manufacturing expertise and base of the U.S. economy?
Globalization has happened quickly. The rules of globalization have not kept pace. We know that we don't want the product of Chinese prison labor to come in and hang on a store shelf in an American store and represent that as fair competition. Most all in the Chamber would probably agree the product of Chinese prison labor ought not be sold in this country because it is not fair competition. But then what about someone in Indonesia who works for 16 cents an hour? Is that fair competition for an American worker? Should we aspire to have an American worker compete in a circumstance where someone works 12 hours a day, sleeps in a bunker, 12 to a room, works 7 days a week in a plant that is unsafe?
The question of outsourcing of American jobs and the question of what is fair trade are questions that this Congress ultimately will have to answer because, if not, we will see a continued exodus from this country of jobs.
The economists, the so-called big thinkers who wear small glasses, tell us we are only talking about the outsourcing of low-tech, low- skill, low-wage jobs. That is absolutely untrue, flat out false. If those economists are still giving opinions and still making money, they should not be. I won't name the economists, but the economists who told us what would happen with the United States-Mexico trade agreement who were dead, flat out wrong. They said with that agreement we will import from Mexico the product of low-skilled, low-wage labor, and we will, therefore, benefit from that. It won't cost us high-skill, high-wage labor in the United States.
That is not true. The three largest exports from Mexico are automobiles, automobile parts, and electronics--the product of high- skilled labor. It has cost dearly American jobs.
There are so many elements to this that almost defy description. Part of it is the start of this process, when we negotiate the trade agreement. Let me give you one of the most idiotic provisions in an agreement I have ever seen. It was done a couple years ago. I have no idea which unnamed and unseen negotiator negotiated this, but we negotiated a bilateral trade agreement with China. And we have with China a very large trade deficit, now nearly $130 billion a year. So this is what our side agreed to: we will put a 2.5-percent tariff on Chinese automobiles shipped to the United States, and the Chinese will impose a tariff 10 times higher on any U.S. cars that we aspire to sell in China.
How would one come to that agreement with a country with whom we have such a large trade deficit? I have no idea. It is fundamentally incompetent to negotiate treaties that so undermine the basic manufacturing interests of our country.
Another example of automobiles--I don't come from a State that produces automobiles--is the country of Korea. I have a chart that shows what is happening with Korea. We import a substantial number of cars from Korea. Most people know the names of those cars. They buy those cars. We have ships coming across the ocean loaded with Korean cars. In fact, in a recent year, we had 618,000 Korean cars shipped in the U.S. marketplace for sale. Do you know how many cars we sold in Korea? Two thousand eight hundred. So there were 618,000 cars coming from Korea to the United States and 2,800 cars from the United States to Korea.
Why is that the case? Is it because Korean consumers don't want to buy American cars? No. It is because the Korean government has put up barrier after barrier to try to stop such sales. That is why you have a ratio of 217 to 1 Korean cars sold in the United States to U.S. cars sold in Korea. Why do we put up with it? It is because this country lacks the backbone and the spine and the will to demand fair trade and stand up for our products. If our producers can't compete, shame on us. Then we lose. But requiring our producers to compete when the game is rigged, saying our producers ought to compete, when foreign markets are closed to us, is fundamentally wrong. Yet that is what is happening. Japan, Europe, Korea, China--you can go right down the list.
I have mentioned a number of times that we have a trade regime in this country and people who work in that area seem to lack the stiff backbone that is necessary to stand up for our own economic interests. There is no evidence that we ever get tough with anybody, no matter the circumstances, because most of our trade policy is mushy-headed, foreign policy rather than sound, sensible economic policy.
We had a dispute with Europe on about beef trade, because Europe will not allow U.S. beef into its market. The WTO, for a change, ruled that the United States was right, and that we could retaliate on Europe for blocking our exports. And what do we do? We put tariffs on Roquefort cheese, goose liver, and truffles. That is going to scare the devil out of somebody, scare them with tariffs on Roquefort cheese, goose liver, and truffles, won't it?
Our country's trade officials don't have the foggiest idea how to deal with trade problems, whether it is standing up for beef interests in this country or standing up for manufacturers or the interests of workers. Our trade officials simply have been AWOL.
There is much to talk about with respect to international trade and jobs. The discussion about all of this relates to whether we have a job base to allow those who aspire to go to work to find a job. We have seen 2.5 million fewer jobs now than 3\1/2\ years ago, and at least a part of that is because we are outsourcing and seeing jobs move from this country to other countries.
At least two of the reasons for that are, one, we have a perverse Tax Code that actually rewards companies that move their jobs out of this country, and we ought to do something about that. And, second, we have basically incompetent trade agreements that fail to stand up for this country's economic interests.
My hope is that we could have a debate on trade in the Senate this year. It appears to me we are going to have a debate on virtually nothing. The minute someone offers an amendment, the others pack up their duffel bags and leave town. I don't understand it. Day after day we have no votes. Why? Because someone dared come to the floor to say, after 6 or 8 years, maybe we should have an increase in the minimum wage.
What does that do? It fills up airplanes leaving Washington, DC, because nobody wants to vote. And while they are out of town, they tell the press that those who offered the amendment are obstructionists, forgetting, of course, that the obstruction is really the refusal to give a vote to those who offered a very sensible amendment to the bill.
Most of us came here because we want to do serious things about serious issues. It would be good if, in the interest of this country, we could, in a spirit of some cooperation, decide here is the legislation we want on the floor, offer your amendments, have reasonable time agreements, have votes, and move on. Whatever the will of the Senate is, that is what we ought to do.
But instead, especially recently, we have seen a regrettable situation of the Senate deciding, if there is a controversial amendment that is offered, the majority doesn't like it, we will just stop working.
There is a lot to do. This country has an economy that regrettably at this point, while producing some growth, is not producing jobs. I just finished reading an article by an economist from the Reagan administration, Paul Craig Roberts, who was one of the architects of the economic strategy back in the 1980s. Paul Craig Roberts has it about right. He said this may well be an economic recovery without new jobs--a jobless recovery. And if that is the case, we are in trouble.
We need to search for ways to begin to create these jobs. If we have a recovery and no new jobs being created, we face some pretty difficult times. The American people want to go to work. These kids coming out of college want jobs. They want opportunity and hope. They want a good future. You do that by having an economy that produces jobs. There is no social program we discuss in the Congress that is as important or as productive as a good job that pays well.
That is what allows people to have a good life, provide for their family, and do the things they want to do. So the question for us is, what happened here? Why the disconnect? Why is an economy that is growing not producing jobs?
One answer is that we are seeing jobs moving to Sri Lanka, Bangladesh, China, Mexico--you name it. They are leaving. As they leave, a part of that departure is to be rewarded with a reverse tax cut, a tax incentive that says we will reward you while you leave.
We ought to close that now. We ought to go back and look at some of these trade agreements and decide whether it is in this country's interests not to be protectionist but to demand that the rules of trade be fair. If we are unwilling to do that, we are not going to see the creation of the kind of jobs that are necessary to restore the 2\1/2\ millions jobs that were lost and provide the additional jobs an increase in population requires year by year.
Mr. President, there are no votes today, tomorrow, Monday, or Tuesday. I guess the Senate comes back with perhaps a vote on Wednesday. I hope that perhaps we can start over and decide to treat seriously those things that are serious. There is such a tendency here to treat lightly those things that are serious and treat seriously those things that should be treated lightly. We never get to where we should be with respect to the interests of this country.
I yield the floor and suggest the absence of a quorum.
Mr. President, gasoline prices are soaring to the highest levels ever and once again the response of the Federal Government is to do nothing. I have come to the floor today because I believe the…
Mr. President, gasoline prices are soaring to the highest levels ever and once again the response of the Federal Government is to do nothing. I have come to the floor today because I believe the gasoline consumer is about to be hit by a perfect storm, a combination of refinery cutbacks that boost profits, the fact that oil is being moved into the Strategic Petroleum Reserve with no plan to protect the consumer from resulting shortages, and the prospect of even higher OPEC prices when OPEC cuts production possibly in June, just at the start of the high travel season. I want to discuss this today because inaction in the face of spiraling gas prices is the worst possible response Congress and the administration could have at this time.
Higher oil and gasoline prices act like attacks on our consumers, causing them to defer spending in order to pay for gasoline. Right now, consumer spending is the principal ingredient driving our economy. If consumer spending declines, economic recovery is going to be delayed and there is the chance of the economy sliding further into a recession.
I know gasoline prices are already as high as they have ever been, and the perfect storm I see coming in the days ahead is going to soak consumers for even more money at the pump with the prices already staggering.
According to the American Automobile Association, the national average price of gasoline is $1.72 per gallon. That is just 2 cents short of the alltime high set last August and, of course, it is not even the peak driving season. California prices are consistently way over $2 per gallon. The prices in my State are consistently in the ballpark of $1.80. I will outline this afternoon
why I believe it is likely to get even worse.
One major oil company, Shell, has announced it is deliberately shutting a 70,000-barrel-per-day refinery in Bakersfield, CA. This refinery is critical to the entire West Coast market. The fact is, when Shell permanently constricts gasoline supplies and drives up prices along the West Coast, our area, which already has staggeringly high unemployment, is going to be hit very hard.
Earlier this month, at a Senate Energy Committee hearing, I asked the Administrator of the Energy Information Administration whether the closing of Shell's Bakersfield refinery could boost West Coast prices even higher. That day he agreed that could be the result of that refinery shutting down. Yet, in the face of these kinds of problems, the response of the Federal Government is simply to sit on the sidelines.
Shell's announcement of its decision to close the Bakersfield refinery claimed in a statement that there is simply not enough crude supply to ensure the viability of the refinery in the long term. Recent news articles have reported that both Chevron/Texaco and State of California officials estimate that in that valley where the Bakersfield refinery is located, there is a 20- to 25-year supply of crude oil remaining. In fact, Bakersfield, CA, reported on January 8 of this year that Chevron/Texaco plans on drilling more than 800,000 new wells in the valley, which is 300 more new wells than last year. The fact that Texaco, Shell's former partner in the Bakersfield refinery, is increasing drilling in the area calls into question this claim by Shell that a lack of available oil supply is the real reason for closing the Bakersfield refinery.
Shell also claimed that its decision was not made to drive up profits, but the company admitted to the Wall Street Journal that there will be an impact on the market. Of course, the impact is going to be to drive up prices even higher. The question for the Senate, and why it is so important for us to act now, is, How much are these prices going to go up and when is the Senate going to finally stand with those who have to make these gasoline purchases?
In 2001, I revealed internal oil company documents that showed major oil companies pursued efforts to curtail refinery capacity as a strategy for stifling competition and boosting their profits. These documents raised significant questions about whether American oil companies are trying to pull off a financial triple play: Boosting profits by reducing refinery capacity, tagging consumers with higher pump prices, and then going out and arguing for environmental rollbacks and additional financial incentives.
I say, and I want to use this to make clear why I think it is important the Senate should act, that I believe these practices I described in 2001 are still ongoing today as gasoline prices rise even higher and consumers suffer even more. In memos detailed in a report I issued then, oil companies articulated a desire to reduce oil and gas supply.
One document from Texaco reads:
Significant events need to occur to assist in reducing
supplies and/or increasing the demand for gasoline in order
to increase prices and grow profit margins. Oil company
competitors also discussed--
Discussed with each other, Mr. President--
mutual opportunities to control oil and gas supply, thus
keeping markets tight.
In one case, they were trying specifically to prevent the restart of a closed refinery in southern California. One company document revealed if the refinery in question, Powerine, was restarted, the additional gasoline supply on the market could bring down gas prices and refinery prices by 2 cents to 3 cents per gallon and it called for a ``full court press'' to keep the refinery down. The Powerine refinery's capacity was 20,000 barrels per day. The Bakersfield company Shell wants to shut down has a capacity of 70,000 barrels a day. If oil companies in the mid-1990s thought a much smaller shutdown would raise the price of gas by 2 cents to 3 cents, you can't tell me the shutdown of a refinery with 3\1/2\ times the capacity will not have an even larger impact on prices at the pump.
What makes Shell's decision to close its Bakersfield refinery especially curious is it seems the company has done virtually nothing proactively to find a buyer. But, to date, in spite of my requests and the requests of others, the Federal Trade Commission has made no effort to stop or even slow plans for Shell's refinery closure. The Federal Trade Commission has been arguing they can only prosecute if they find out-and-out blatant collusion, setting out a standard that is virtually impossible to prove against these very savvy oil interests. But in this case the Federal Trade Commission has the authority to act because the Agency allowed two megamergers to go through that directly affect the refinery Shell now plans to shut down. The Federal Trade Commission had a chance to act when it allowed Shell to acquire full ownership of the Bakersfield refinery in 2001 from a Shell-Texaco partnership.
The Federal Trade Commission had another chance to act when it allowed Shell to acquire Pennzoil-Quaker State in 2002. Then last November, when Shell announced it was closing the Bakersfield refinery, the Federal Trade Commission had a third chance to act, using its continuing authority to reexamine these earlier mergers.
I say it is time to get the Federal Trade Commission off the sidelines and onto the side of the consumer who is getting shellacked at gasoline pumps all across America. Today I am calling on the Federal Trade Commission to exercise its continuing authority over these past mergers and to either block the shutdown of Shell's Bakersfield refinery or to otherwise keep refineries in that area viable. That set of decisions will affect the entire west coast gasoline market. At a time when our economy is being hit so hard, it is absolutely critical to the public interest.
The Energy Department ought to be doing more to address the problem of high gasoline prices, but at a minimum the Energy Department should not be making the problem worse. When Secretary Abraham was asked recently about the problem of rising gasoline prices, he told reporters he was extremely concerned but did not specify the Department would do anything. One thing that could be done by the Department that would help address the problem is the Energy Department could stop making the current supply situation worse by taking oil from the tight U.S. market to fill the Strategic Petroleum Reserve without any protections for the consumer.
On February 12, as crude and gasoline prices were spiking up, the Bush administration awarded five new long-term contracts to fill the Strategic Petroleum Reserve. These new contracts will run from April through the summer, the very time period where prices typically shoot upward. If the Bush administration were concerned about high gasoline prices, the Energy Department could have either delayed awarding these long-term contracts or arranged to defer the delivery of oil to the Strategic Petroleum Reserve, as was done last winter, to minimize the impact on the market and on the consumer. But now the administration is taking oil off the market and moving it into the Strategic Petroleum Reserve with no concrete plan to protect consumers from the higher prices this action will cause.
Earlier this month, Guy Caruso of the Energy Information Agency told me OPEC would be making up the difference in supply for oil that is being moved into America's Strategic Petroleum Reserve. So you have a situation where the administration, through the Energy Information Agency, is telling people to not really sweat these OPEC decisions. But now OPEC is telling us they are going to cut production by 1 million barrels a day. This morning we hear they might hold off until June instead of making cuts in April. But even if they do that, the OPEC production cuts would come at the beginning of the summer travel season. So certainly OPEC is engaged in some doubletalk. For some time they have not kept their promise to hold oil prices within their own target price range. In fact, some members of OPEC just want the price range increased.
Some in OPEC say they are concerned prices are too high. Yet this cartel is taking oil off the market. Others are saying they see a glut of oil on the market, justifying the production cut. These are mixed signals, but the message for our consumers is clear: OPEC is certainly going to do what is
best for OPEC, not what is best for the American consumer.
My bottom line is the Federal Government certainly is challenged, in terms of stopping OPEC from cutting production. But certainly the Federal Government can take steps and take steps immediately to make sure there is competition in our gasoline markets so consumers are not getting ripped off at the pump.
Today I am calling for Congress to take action on a specific, concrete package of procompetition initiatives to help consumers at the Nation's gas pumps. First, Congress needs to direct the Government regulators to act to eliminate anticompetitive practices that currently siphon competition out of gasoline markets. Scores of communities, including those in my home State, have few if any choices for the consumer. Nationwide, the gasoline markets in Oregon and in at least 27 other States are now considered to be tight oligopolies, with 4 companies controlling more than 60 percent of the gas supply. In California, where Shell's Bakersfield refinery is located, 4 oil companies control 70 percent of the market. In these tightly concentrated markets, numerous studies have found oil company practices have driven independent wholesalers and dealers out of the market. One practice they employ, called redlining, limits where independent distributors can sell gas. As a result, independent stations have to buy their gas directly from the oil company, usually at a higher price than the company's own brand-name stations are paying. With these higher costs the independent stations can't compete.
Last year I sponsored legislation, S. 1732, that would give the Federal Trade Commission additional tools to promote competition in these areas that are essentially small monopolies. Under my bill, in these very highly concentrated markets you would have consumer watch zones. In these zones there would be greater monitoring of anticompetitive practices by the Federal Trade Commission. The Federal Trade Commission would also be empowered to issue cease-and-desist orders to prevent the companies from gouging the consumer, and Congress would stipulate certain anticompetitive practices like redlining and zone pricing are, per se, anticompetitive and oil companies engaging in these anticompetitive practices that manipulate supply or limit competition would have the burden of proof to show these anticompetitive practices are not harming consumers.
There is a vehicle right now. Right today there is a vehicle, S. 1737, Congress could use to address the problem of skyrocketing gasoline prices, because the companies admit the market is not going to solve the problem on its own.
Last August, a report by the RAND Corporation revealed even oil industry officials are predicting more price volatility in the future. This means consumers can expect more frequent and larger price spikes in the next few years.
Last November, the Energy Information Agency also issued a report on the causes of last summer's record high gas prices. The Energy Information Agency found, ``There is continuing vulnerability to future gasoline price hikes.'' The industry and the Bush administration both agree gasoline price spikes are going to be a continuing and significant problem. But neither, as of today, is willing to step in and work with the Congress on a bipartisan basis to do anything about the problem. I am here to say the Congress needs to act now. This is legislation to act now before gasoline shoots up to $3 per gallon, as some oil industry analysts are predicting.
The reasons Congress ought to act are twofold. Aside from the obvious cost to the consumer at the pump, there are hidden costs to the price manipulation. There is a huge economic impact that will only worsen as prices rise. When gasoline costs more, the costs for our businesses in the transportation area go up. Our businesses see their profits go down. So we have one of two things--either the prices of the goods they sell to consumers have to go up or the number of people they employ is going to plummet. Higher gasoline prices either means bigger costs for consumer goods or fewer jobs in our economy. And certainly in our home State, we cannot afford to see that. This isn't high economic theory. This is basic math.
Just this month, the New York Times quoted a truck driver from Wisconsin saying eventually the added cost of transporting household goods and snacks and other items will once again come back and clobber the consumer. You have a double whammy. Consumers get socked at the pump in person, and then get hit again with higher prices for the goods they buy. That is not acceptable to me, and I don't believe it is acceptable to the American people.
The challenge now is for the Congress to stand up to the status quo in the oil industry. I understand--and certainly nobody would minimize this--this will be a hard row to hoe in terms of taking on these very powerful interests.
When I first introduced legislation that now can be used to protect the consumer from gasoline prices going up to $3 per gallon, various oil interests and Bush administration officials voiced great consternation and argued vociferously that the legislation I believed will protect the consumer was unacceptable to the oil industry and the administration.
I still believe the proposals which I have put forward in legislation and on which the Congress could move now would protect competition and free markets. My legislation doesn't involve big expenditures from Government. It doesn't involve setting up new agencies. It involves bringing some competition and free market forces back to this country and to the gasoline business--particularly in those States where we have these quasi-monopolies.
But for those who disagree with my legislation, S. 1737, which I believe would protect the consumer who is getting clobbered at the gasoline pumps, I issue a challenge. If they think they have a better approach than my legislation for bringing competition and free market forces back to the gasoline market, they have an obligation to come forward at a time when our consumers are being hit so hard at the pump. Unless people who are opposing my legislation are prepared to say the record high gasoline prices aren't a problem, they have an obligation to come forward with their proposals to promote competition. Put an alternative on the table and stand up for the consumer.
I also think Congress needs to address the growing gap between consumer demand for gas and what the oil companies can produce. When supplies are tight and there is no spare gasoline in inventories, consumers are especially vulnerable to supply shortages and price spikes. That frequently causes severe price spikes when refineries shut down unexpectedly or a pipeline breaks, as happened last summer. Congress should ensure consumers are not left stalled by the side of the road or being pounded at the pump by taking steps to keep supplies available in an emergency. One option would be to require major oil companies to maintain minimum inventories to address unexpected supply crunches.
Alternatively, the Federal Government can create a strategic gasoline reserve to provide supplies during refinery or pipeline shutdowns. This proposal would build on the strategic reserves that already exist for petroleum and heating oil supplies.
It seems to me what it all comes down to is the American people deserve better, and they deserve better than the Federal Government being AWOL when our consumers are facing skyrocketing gasoline prices across the country. With a new energy bill expected to come before the Senate in the next several weeks, this is an opportunity to put the Government on the side of the American consumer when they are filling their tanks at the pumps across the land.
I conclude by again commenting on the role of the Federal Trade Commission. This is the agency that is charged by Congress with promoting competition and free markets. Again and again in the energy field they have either sat on the sidelines or simply looked the other way in the face of increasing concentration in this critical sector of our economy. With gasoline prices already soaring at the highest level at this particular time, it seems to me it is absolutely critical for the Federal Trade Commission to reverse its present
course, get on the side of the consumer, and promote marketplace forces and competition in the gasoline business.
I intend to use my seat on the Senate Commerce Committee at every possible opportunity to force the Federal Trade Commission to do the job it has been charged by the Congress to do. It ought to start with looking seriously into the shutdown in Bakersfield, which is going to, in my view, have calamitous consequences for the entire west coast gasoline market. But it also should include a broader look at the implication of concentration in the gasoline business.
I am hopeful that ultimately the Federal Trade Commission will support my legislation, S. 1737, which would promote more competition in the gasoline business. And if they disagree with it, the head of that agency, Mr. Timothy Muris, ought to propose his own alternative.
I yield the floor.
Mr. President, I very much appreciate the distinguished Senator from Massachusetts coming to the floor because he has done so much to help the consumer in this area. My concern--and I would be interested in the Senator's reaction--is I think the consumer is about to get hit by a perfect storm with the combination of failure to push OPEC, as the Senator has said, to try to help on the production issue, plus the refinery cutbacks that apparently are primarily to boost profits, plus filling the strategic petroleum reserve. With these factors coming together, it seems to me a perfect storm is going to push the consumers' gasoline price at the pump to $3 a gallon.
I would be interested in the Senator's reaction, and I am anxious to work with him in this effort to push the administration to go after
Mr. President, I am pleased to join Chairman Hatch in introducing the Gang Prevention and Effective Deterrence Act of 2003, a bill to give law enforcement additional tools to fight the scourge of…
Mr. President, I am pleased to join Chairman Hatch in introducing the Gang Prevention and Effective Deterrence Act of 2003, a bill to give law enforcement additional tools to fight the scourge of gang violence and to fund prevention programs to stop the cycle of gang violence.
I thank and commend my good friend and colleague, Chairman Hatch, for his hard work in helping to develop this legislation. Since 1996, he and I have worked together to address the problem of gang violence in this country.
We have now introduced legislation in each of the last four Congresses--the 104th, 105th, 106th, and 107th. None of that legislation became law. But we have not given up.
The legislation we are introducing today addresses the many aspects of gang violence by focusing on new criminal offenses and increased penalties for individuals who engage in gang violence. Specifically, this legislation targets gang members who participate in criminal street gang by committing gang crimes like murder, sexual assault, robbery, and drug offenses to name a few, or by employing others to do so; recruit and use minors in gang crimes; commit violent crimes in furtherance of gang or drug trafficking activity; or travel in interstate commerce to intimidate and retaliate against witnesses.
This legislation also makes it easier to prosecute certain 16 and 17- year-olds as adults if they are engaging in violent gang activity.
We have also worked to provide for more cooperation between Federal and local law enforcement officials, and to make it easier for prosecutors to go after gang members who commit serious or violent crimes on behalf of their gangs.
We offer this comprehensive legislation because the problem of gang violence continues to get worse. I concur in the sentiments expressed by Los Angeles Police Department Chief William Bratton when he stated, ``There is nothing more insidious than these gangs. They are worse than the Mafia. Show me a year in New York where the Mafia indiscriminately killed 300 people. You can't.''
In 2002, there were over 650 homicides in Los Angeles, half of which were gang related. This year the Los Angeles Police Department reports approximately 400 murders and almost one-half of those murders are the result of gang violence.
The United States Attorney in Los Angeles testified before the Judiciary Committee last month about the gang problem in her city. She stated that in Los Angeles County alone, conservative estimates put street gangs at about 1,000 in number. The number of individual gang members in those street gangs is 150,000.
In addition, there are approximately another 20,000 gang members in Orange County, Ventura and San Bernardino Counties.
I am often struck by how vicious gang crimes can be, and how damaging they are to the victims and to the surrounding community.
Let me give a couple of examples from my own home city of San Francisco.
In 2000, two rival gangs had a shoot out in San Francisco's Mission District. An innocent bystander was caught in the crossfire and shot through both legs.
A brave eyewitness gave law enforcement the name of the shooting suspect, who was then arrested. The gang then tracked down the witness, put a 9 millimeter automatic to his head, and threatened to kill him for cooperating with the police.
And just recently, on September 28, 2003, 7-week-old Glenn Timmy Maurice Molex was killed in his home during a drive-by shooting in a Bayview district neighborhood in San Francisco. Law enforcement believe that gang members may have been involved in the shooting.
But this problem is not limited to any one city, of course.
In 1980, there were gangs in 286 jurisdictions. Today, they are in over 1,500 jurisdictions.
In 1980, there were about 2,000 gangs. Today, there are over 26,000 gangs.
In 1980, there were about 100,000 gang members. Today, there are more than 750,000 gang members.
I would like to explain how this legislation will help deter and punish gang-related crimes, and why Congress should act quickly to pass it.
First, the bill includes tough 10-year sentences for gang recruitment. This will serve to punish anyone who recruits a member to join--or forces a member to stay in--a criminal street gang with the intent to have that person commit a serious violent crime or a drug crime.
Second, if the person who was recruited was a minor, the offender will serve a mandatory minimum sentence of 3 years.
The purpose of this provision is to deter criminal gang recruitment. It is also to punish those who use minors to commit their crimes. And gangs specifically do go after juveniles because they know that, if the child is caught, he or she will probably receive lighter punishment than an adult.
I believe that we need to punish gang recruitment of children very severely. This bill would do that.
This legislation would also make it a crime for three or more people who work together to commit predicate gang crimes which are listed in the bill. Gang members who commit two or more predicate gang crimes or employ another individual to commit a gang crime would be punished under this new statute by up to 30 years in prison. If the predicate gang crime carries a greater penalty, the maximum would increase. If the gang member has previously been convicted of a predicate gang crime, that gang member's sentence would also increase.
And because juveniles are being used to commit these gang crimes, if the gang member employs a minor to commit the gang crime, the gang member would face a mandatory minimum sentence of 10 years.
The predicate gang crimes are felony crimes and include murder, attempted murder, manslaughter, gambling, kidnapping, robbery, extortion, arson, obstruction of justice, tampering with or retaliating against a witness, victim or informant, burglary, sexual assault, carjacking, or selling or possessing a controlled substance, firearm offenses, and illegal transportation of an alien.
The offenses that are listed as predicate gang crimes are those commonly pursued by gangs.
One study of gangs in various countries found that law enforcement reported that 55 percent of gang members were involved in aggravated assaults; 33 percent in robberies;
Fifty-eight percent in burglary and breaking and entering;
Fifty-two percent in motor vehicle theft; and
Seventy-two percent in drug sales.
Numerous gangs illegally launder their illicit drug profits. These include Russian and West African criminal gangs as well as street gangs such as the Bloods, Crips, Gangster Disciples, and Latin Kings.
This bill also allows property derived from gang crimes to be forfeited.
Third, the bill creates a new, RICO-like, anti-gang law to help prosecutors target the more serious gangs and gang members. In response to the problems of mafia-violence, the racketeering statute was created to punish violent crimes that are in furtherance of a racketeering enterprise. This legislation will do the same for violent crimes that are in furtherance of gang activity or drug activity.
The gang and drug crimes are those which I have described earlier-- murder, carjacking, drug distribution, robbery, firearms violations, and sexual assault. These crimes represent the heart of gang activity and those who commit them must be met with tough penalties.
The penalties range from a maximum of 10 years to the death penalty if death results from the crime.
This legislation also expands the Travel Act.
The Travel Act allows Federal prosecutors to charge certain interstate crimes such as extortion, bribery, and arson, and for business enterprises involving gambling, liquor, drugs, or prostitution.
This statute was passed in 1961 also with mafia-related criminal activity in mind.
Now criminal street gangs travel interstate for another purpose which strikes at the heart of our system of justice--intimidating and retaliating against witnesses, jurors, informants, and victims.
This bill would make it a crime to travel across state lines for that purpose and would allow for a sentence up to life imprisonment for someone who commits that crime.
Defendants who violate the Travel Act and kill someone will also face a possible death sentence for such actions.
This bill should ensure that prosecutors can use the Travel Act to act against crimes caused by the new Mafia: criminal street gangs.
The bill also amends several criminal statutes to address violent crimes frequently or typically committed by gangs.
These crimes include carjacking, assault, manslaughter, racketeering, illegal gun transfers to drug traffickers or violent criminals, the use of firearms in drug trafficking and violent crimes, and murder-for- hire.
These amendments make it easier for prosecutors to prove these crimes by eliminating or modifying the intent requirement for the crimes or by increasing the penalties for violations.
This legislation also changes the venue statute for capital cases so that capital cases can be brought where the murder occurs or where the racketeering conspiracy, drug conspiracy, or criminal street gang operates. So, if the gang, commits the bulk of its crimes in one State but commits a capital crime in another State, all of the crimes can be tried in the same State where the gang focused its criminal activity and the government can seek the appropriate punishment for that crime. The jury will then get the whole picture of how the gang operated and what they did.
Where a 16-year-old or 17-year-old has committed a Federal serious violent felony, this legislation facilitates Federal prosecution of such offenders. Surveys in 1996 and 1999 showed that 37-50 percent of gang members were under the age of 18. This legislation also calls upon the United States Sentencing Commission to create new sentencing guidelines for juvenile offenders who are charged as adults to address concerns specific to offenders of that age.
The bill permits the Attorney General to designate high intensity interstate gang activity areas, HIIGAs, and authorizes $100,000,000 for each of 5 years for these task forces.
These provisions are modeled after similar provisions creating high intensity drug trafficking areas, HIDTAs.
HIDTAs are joint efforts of local, State, and Federal law enforcement agencies whose leaders work together to assess regional drug threats, design strategies to combat those threats, and develop initiatives to implement the strategies.
HIDTAs are based on an equal partnership between different law enforcement agencies.
HIDTAs are based on an equal partnership between different law enforcement agencies.
HIDTAs integrate and synchronize efforts to reduce drug trafficking.
They eliminate unnecessary duplication of effort and maximize resources.
And they improve intelligence and information sharing both within and between regions.
HIDTAs are necessary because drug trafficking tends to be ``head quartered'' in certain areas of the country, from which it spreads to other areas.
Moreover, drug traffickers have been highly organized and developed sophisticated interstate and international operations.
These points are also true for many criminal gangs. So we have erected a new program of cooperation between law enforcement agencies to attack the gang problem like we attack the drug problem.
This bill authorizes $75 million over the next 5 years for the hiring of Federal prosecutors to identify and prosecute significant gangs within their districts under the Project Safe Neighborhoods program. Across the Nation, 94 Project Safe Neighborhoods Task Forces are working to implement the coordinated strategy to reduce gun violence, led by the U.S. Attorney in each of the Federal judicial districts. U.S. Attorneys have been working side by side with all law enforcement participants in their communities to identify the most pressing crime problems and attack those problems both through prevention and aggressive prosecution.
Finally, this legislation would authorize $100 million dollars over the next 5 years for States to update their technology, create and fund gang prevention and community prosecution programs, and create and expand witness protection programs.
Witness protection is a critical part of reducing gang violence. The president of the National District Attorneys Association, Robert McCulloch, who is also the district attorney in St. Louis, testified last month before the Judiciary Committee. He said that while his office is able to put witnesses in motels for a couple of days or a week or is able to send them on a bus ride to a relative's house, the solutions are not long-term. And as a result, the witnesses come back and are at risk. That is not acceptable. If witnesses are not confident that they will remain safe, they will not talk to law enforcement. It is as simple as that. We must give local and State law enforcement the tools to keep witnesses alive.
While criminal street gangs flourish in certain urban areas such as Los Angeles and Chicago, they typically use these cities as bases to invade more rural locales.
And the characteristics of a criminal street gang are extremely diverse. While some criminal street gangs are looser-affiliations of violent individuals who work together in furtherance of their gang, there are also some very highly disciplined, hierarchical ``corporations,'' often encompassing numerous jurisdictions.
MS-13, an international gang with roots in El Salvador's civil war has spread to at least 28 States and includes more than 8,000 members. In this gang there is no real command structure or national charter.
And in the Washington, D.C. metropolitan area, criminal street gangs are largely neighborhood-based associations of lifelong friends. They use no flashy names or symbols, but they bank together to commit crimes and sell drugs.
In the past three years, members of just three neighborhood-based gangs in Washington, D.C., called the 1-5 Mob, the K Street Crew and Murder Inc. by prosecutors, have been convicted of 57 murders and dozens of assaults and weapons offenses for gang crimes committed over the past ten years.
On the other hand, there are some very organized and structured ruthless gangs in this country.
The Gangster Disciples Nation, for example, has a chairman of the board, two boards of directors, one for prisons and one for streets), Governors, regents, area coordinators, enforcers, and ``shorties,'' youth who staff drug-selling sites and help with drug deals.
From 1987 to 1994, this gang was responsible for killing more than 200 people. Moreover, one-half of their arrests were for drug offenses and only one-third for nonlethal violence.
And just like MS-13, these gangs pop up all across the country.
In 1996, the Gangster Disciples Nation and other Chicago-based gangs were in 110 jurisdictions in 35 states.
Members of the Los-Angeles based 18th Street Gang have migrated outside of California into the southwest border up into the Pacific Northwest, out to New Jersey, Mexico, and El Salvador. Los Angeles gang members have been tracked to Indianapolis, Oklahoma, Omaha, Raleigh and St. Louis.
This bill is a necessary measure to target increasingly violent, increasingly sophisticated, and increasingly national gangs. This is not just a California problem, or a Chicago problem, or a District of Columbia problem--this problem is a nationwide in its scope, and we must craft a nationwide solution. This legislation will tackle that problem head-on. We simply cannot wait any longer.
I look forward to working with my colleagues to enact the Gang Prevention and Effective Deterrence Act of 2003.
Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, the Presiding Officer and I are new Members of the Senate, but we learn our lessons pretty…
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, the Presiding Officer and I are new Members of the Senate, but we learn our lessons pretty quickly. One of the things you learn here is if you want to have an impact in the Senate, you have to put a focus on something you care about and then keep after it.
The Senator from Louisiana has done that. In her first term here she focused on the great American outdoors. Working with others, she came pretty close to passing an important piece of legislation 3 years ago.
There were some problems in it for Members of the Senate. It is my goal, working with her this year, and we hope with many others of our colleagues on the Energy and Natural Resources Committee and others of our colleagues on both sides of the aisle, to solve those problems and come up with legislation that represents the conservation majority, the huge conservation majority that exists in the United States of America.
The conservation majority of this country does not have a line down the middle with chairs on each side. It exists on both sides of every aisle and has broad support. We are good legislators, and if we are as good as we hope we are, we will be able to work and represent what our constituents would like us to do. So it is a privilege for me to work with Senator Landrieu. We both serve on the Energy and Natural Resources Committee. We are fortunate under Chairman Pete Domenici and ranking member Jeff Bingaman that we, most of the time, are able to work in a bipartisan way. So we are off to a good start in terms of fashioning a piece of legislation that will gain the support of our colleagues.
We are deliberately today not offering legislation. We want to discuss it first with members of our committee. We want to discuss it next with others, such as the Presiding Officer of the Senate, who has a long interest in conservation matters. We want her ideas and those of others. Then, perhaps in 3 weeks, after the recess, we will be able to come forward with a piece of legislation that has broad bipartisan support.
As the Senator from Louisiana said, this morning Congressman Young of Alaska and George Miller of California introduced the GO Act, the Get Outdoors Act of 2004. I believe they used it to emphasize we might do some work on this obesity problem that is really worrying us, in terms of health, if more of us spend a little more time walking outdoors, playing outdoors, and taking advantage of our country.
As the Senator from Louisiana said, the bill therefore will provide, I believe, about $3 billion in guaranteed annual funding for outdoor recreation purposes. It would be paid for, as she described, by what I think of as a conservation royalty. This is the way I think of it. It is a royalty on the revenues from oil and gas drilling on offshore Federal lands. After the royalties are paid to the landowner and after the royalties are paid to the State, this conservation royalty would be paid to a trust fund which would then spend the money for the benefit of conservation. Then, after that, the rest of the Federal revenues would go into the regular Federal appropriations process.
That is the way I like to think about it and I hope that is the way a majority of the Members of the Senate will want to think about it as well.
As the Senator said, we will be discussing these concepts that she so well outlined with our colleagues. And we hope they will join us as cosponsors. As she said, our bill will be similar to that which was introduced this morning in the House of Representatives, but it will not be the same.
In addition, it will be similar to the so-called CARA legislation that Senator Landrieu and many others worked hard on 3 years ago, but it will not be the same. There are some lessons that we need to learn from what happened 3 years ago.
For example, the cost of the Senate legislation may not be as much as the cost of the legislation offered in the House. That is yet to be determined.
In addition, as the Senator said, we intend to discuss with our colleagues whether States should have the option, for example, of spending the Federal share of the Land and Water Conservation Fund for maintenance of Federal lands rather than for acquisition.
I have learned over the years that there is a big difference of opinion between Senators from the West and Senators from the East about the acquisition of Federal lands. In North Carolina and Tennessee, we don't have much Federal land. So a lot of us--even many of us conservative Republicans--would be glad to have a little more. Out West there are a lot of people who think the Federal Government not only has enough but it has too much, and they don't want to see legislation that would acquire more.
We need to take that into account as we develop a piece of legislation that will represent the conservation majority but do it with respect for those States that are already largely owned by the Federal Government.
Our legislation, like that proposed in the House, will ensure that State and Federal parts of the Land and Water Conservation Fund will fulfill the intention that Congress originally envisioned. It will provide for wildlife conservation. That will benefit hunters and fishermen. There are more hunters and fish people with hunting and fishing licenses in Tennessee than there are people who vote. I am not sure that is a statistic to admire, but it is a fact, and it is one to which I pay attention. Bird watchers and all Americans who enjoy outdoor recreation will benefit from this legislation. It will provide funds to establish city parks so the children in and around our metropolitan areas can have decent, clean places to play; so families can have decent places to go; and so senior Americans can have decent, safe places to walk.
Someone once said Italy has its art, England has its history, and the United States has the Great American Outdoors. Walt Whitman wrote, ``If you would understand me, go to the heights or watershores.''
Our magnificent land, as much as our love for liberty, is at the core of the American character. It has inspired our pioneer spirit, our resourcefulness, and our generosity. Its greatness has fueled our individualism and optimism and has made us believe that anything is possible. It has influenced our music, literature, science, and language. It has served as the training ground of athletes and philosophers, of poets and defenders of American ideals.
That is why there is a conservation majority--a large conservation majority--in the United States of America.
That is why so many of us, as the Senator from Louisiana said, feel a responsibility in our generation to ensure to the next generation the inspiration of the dignity of the outdoors, its power, its elemental freedom; the opportunity to participate in the challenges of its discovery and personal involvement; and the fulfillment that is to be found in the endless opportunities for physical release and spiritual release.
Some of the words I just used came from the preamble of President Ronald Reagan's Commission on American Outdoors, which I chaired in 1985 and 1986.
In 1985, President Reagan asked a group of us--I was then the Governor of Tennessee--to look ahead for a generation and see what needed to be done for Americans to have appropriate places to go and what they wanted to do outdoors.
Our report, issued in 1987--very nearly a generation ago--recommended
that we light a prairie fire of action to protect what was important to us in the American outdoors and to build for the future. We focused on the importance of a higher outdoors ethic, suggested an ``outdoor corps'' to improve recreational facilities. We examined the role of voluntarism. We pointed out that the park most people like is the park closest to where they live and how important it is, therefore, to have urban parks as well as great national parks. We warned of how the liability crisis and runaway lawsuits threatened our outdoor activities and called for a new institution or set of institutions to train leadership for outdoor recreation.
We formed State commissions, such as Tennesseans Outdoors, which went to work with the same objectives in our own State that we had in our national Commission.
We envisioned a network of greenways, scenic byways, and shorelines. Most of the action we suggested was not from Washington, DC, but was community by community by community.
But we also acknowledged the important role the Federal Government has to play in providing outdoor recreation opportunities. Of course, we must have clean air and clean water, and we must protect and enhance recreation opportunities on Federal lands and waters.
Almost all of us on the Commission called for the creation of a $1 billion fund to fully fund the Land and Water Conservation Fund--both the State share and the Federal share. This is a way of balancing our need for more oil and gas with our need for recreational opportunities in the outdoors.
As I mentioned earlier, I think of these annual payments from the revenues derived from offshore drilling for oil and gas on Federal land as a royalty payment. Pay the owner a royalty, pay the State its royalty, then pay a conservation royalty for the use of that resource. Then the rest of those revenues go into the Federal Treasury to be appropriated. Pay a $3 billion annual conservation royalty--that is the number that the House bill uses--before it ever gets to the Federal appropriations process. Then appropriate the rest.
I believe this legislation will have broad bipartisan support in the Senate.
I look forward to working with Senator Landrieu, Chairman Domenici, with our colleagues on the Energy and Natural Resources Committee, and with all of our colleagues on both sides of the aisle to fashion legislation that is good legislation, that represents the overwhelming conservation majority in the United States of America, and which can pass the Senate and the House of Representatives this year.
I thank the Chair.
Madam President, I thank the Senator from Louisiana.
Her comments make me think of this report. Let me hold this up. So staff will not worry, I will not ask to put this in the Congressional Record. There is a summary I will bring to the Senate when we introduce the bill. This is the report of President Reagan's Commission on Americans Outdoors, published in 1987. It is a very good resource and backup for many of the ideas we envision being part of this legislation.
I learned very quickly as Chairman of this Commission that most of the decisions we have to deal with in environmental and conservation matters involve balance. Senator Landrieu and I know, because of our service on the Energy and Natural Resources Committee, as we work hard to try to develop a national energy policy, that we are having a difficult time as a country compromising, creating balance between our need to produce and our need to conserve.
I certainly do not want to draw into this discussion all of those arguments. I will say very little more about it except it would be nice to find in this contentious Presidential year, in this time when we have so much disagreement about energy production and conservation, one area where we could show we are skilled enough as legislators to properly represent the huge conservation majority in the United States.
Most Americans, as President Reagan's Commission thought and almost all Members thought, of course, we have to drill for oil and gas; otherwise our natural gas prices are going through the roof; our jobs will be in Mexico; our lights will be out. Of course we have to do that.
Is that an insult to the environment? Yes, it is. What do we do about it? Shut down the wells? No, one thing we can do is take some of that money--actually a lot of this money--and pay a conservation royalty, compensate for that by creating a conservation benefit on the other side. This idea of the land and water conservation fund has been endorsed by politicians of both parties for a long time. What we are trying to do today is assure a steady stream of revenue to the State and Federal side of the conservation fund, plus a number of other conservation areas, in a way that respects each of our States. We can do it. There is enough of a majority; we can do that.
President Reagan's Commission on Americans Outdoors from 1985, 1986, and 1987, and the work that Senator Landrieu and the majority in both Houses did, form a wonderful beginning. We will see in the next few weeks if we are wise enough to take that to a successful conclusion.
I suggest the absence of a quorum.
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Madam President, I ask unanimous consent that the order for the quorum call be rescinded. I ask unanimous consent to speak for not more than 15 minutes as in morning business. Madam President, I have…
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
I ask unanimous consent to speak for not more than 15 minutes as in morning business.
Madam President, I have spoken in the last 3 days about the current price crisis this country is experiencing with the critical resource energy. The American consumer is going to the pump in their local community today to refuel their car and paying record high prices; in fact, the highest ever recorded on average in our history. I would hope they are beginning to ask the question why, why is this happening and why am I having to pay another $5 or $6 per tank of gas, an average of maybe $15 or $20 or $30 a month more.
In fact, I and the chairman of the Energy Committee, Pete Domenici, and others, held a press conference to speak to the issue of energy and why the Senate was not yet debating a comprehensive energy bill that is ready for us to debate once again and vote on.
At that time I mentioned the average consumer today will pay, as an individual, $300 or $400 more a year for the price of energy, and collectively, as a family, they may well pay more than that. When you consider their electrical bills and space heater bills, the average family is going to pay considerably more this year. That is money that won't come as a result of having a pay raise and, therefore, having the money to offset those costs. Those are dollars and cents that are going to come directly out of the family budget this year. It will have a substantial impact on that family's ability to do what they did a year ago, whether it was providing food for the table, clothes for their children, or maybe the family vacation, or the recreational value they place on a certain activity that would cost them a certain amount of energy.
I mentioned some days ago that I think probably families are already, if they own a motor home, recalculating whether they will actually be able to take that home and go someplace in the country this summer because of the potential cost, additional cost that 15 or 20 cents on a gallon of gas will mean this year. Those are all very real issues and some that clearly this Senate ought to address.
I have said for that average consumer who is asking the question why, I have an answer. The answer is that the Senate of the United States has refused to bring out and pass and set on our President's desk a comprehensive energy bill that addresses those and other issues that in the long term will get us back into the business of producing energy for our country and becoming less dependent on foreign supplies and, therefore, certainly dependent upon ourselves more than others. It is an important issue that we have before us today.
We have even seen it now break into Presidential politics, as Senator Kerry speaks of ways he can propose to bring down those prices. I have noticed he has not talked about production. He has not talked about increasing production. So there are going to be a lot of schemes. I use the word ``scheme'' because some are scheming at this moment as to how they might turn this to their political advantage, tragically enough; that is, the price of energy at this moment.
Why don't they just stop and ask the Senate why they can't pass a comprehensive national energy policy for our country? We have been 14 years without any new directions or new ideas as it relates to energy production, and it is clearly time we speak to that. There is a proposal that has just been brought forth. It is called the Gasoline Free Market Competition Act of 2003. Each time we see something like this as an idea, it is important that we put it in the right context. Each time a government agency investigates gasoline prices--and there have been 29 such investigations by Federal and State agencies over the past several decades--the findings literally have been all the same. The market controls the price of energy, not some unscrupulous producer. It is the market forces that ultimately produce the price at the pump.
The purpose for antitrust law is to protect the interests of the consuming public, not to increase the profit of any level or type of distributions, which is what happens in the legislation I have mentioned, which is S. 1731. That particular legislation would try to dictate refiners' distribution practices. I don't think our Government ought to ever get into the micromanagement of a marketplace. Our goal-- and it always should be our goal--is to create transparency in the markets so all of the parties involve can understand them.
As noted in a recent economic study on ``The Economics of Gasoline Retailing,'' a Dr. Andrew Kleit, professor of energy and environmental economics at Penn State University, puts it this way:
There is a difference between protecting competition and
protecting competitors. Protecting competition means moving
to provide consumers with the lowest sustainable prices, not
protecting the profits of any level of production or any
individual firm.
Professor Kleit's analysis shows that eliminating the ability of refiners to restrict where their brands can be distributed, as proposed in S. 1737, would likely reduce refiners' investment in distribution outlets and ultimately harm consumers.
From a competitive point of view, Professor Kleit says, ``these calls [for this type of distribution concepts in legislation] are [clearly] misguided.''
The strategy at issue is the result of competition between various forms of distribution in gasoline marketing. This competition promotes efficiencies which benefit consumers by bringing products to market for less cost. My fear is S. 1737 would not protect competition, only some of the competitors.
That is clearly where we ought not be going. But what I think S. 1737 really does is it tries to speak to a market today that is a product of Government interference in the past. By that I mean standards and new standards that do not allow the normal marketplace to flow and that, ultimately, confuse the process and create dislocations, whereas a more free market approach certainly would allow that to happen.
As we have seen in recent years, the Federal Trade Commission has carefully studied many of the proposals about mergers within the industry. In many instances, the FTC has required
companies to sell assets to new competitors as these mergers occur. Let me give some examples.
For example, the Exxon Mobil merger in 1999 resulted in the largest retail divestiture in FTC history--the sale or assignment of approximately 2,431 Exxon Mobil gas stations in the Northeast and mid- Atlantic, some 1,740; California stations, some 360; Texas stations, 319; and in Guam, 12; and the sale of Exxon refineries in California, terminals, a pipeline and other assets.
So my point is, while we may try to micromanage and use that as an excuse or an attempt to help the marketplace, what the FTC has done relating to these mergers has in part done that. In other words, we have given them the authority to do so.
Similarly, when British Petroleum merged with Amoco in 1998, they agreed to make certain divestitures to free up more than 1,600 gas stations in 30 markets in order to satisfy FTC concerns that their merger would substantially lessen competition in certain wholesale gasoline markets.
Let's stop passing the buck on energy prices.
Let's stop attempting to tinker with the energy bill and apply untested concepts and theories in the hope that we can create the perfect bill while our citizens are being crushed by high energy prices.
Let's pass the energy bill and implement the energy policies included in that bipartisan piece of legislation.
Let's stop the partisan rancor and do what our constituents sent us here to do--protect their jobs, protect their quality of life, and protect their security by passing this energy bill.
While many Senators may come to the floor well meaning in the next several months to find some political safe haven in which to address the issue of high energy prices, there really are not any. Nobody is scheming today. Nobody is glutting the marketplace. The reality is a problem of supply and demand. While I am quite sure you will have some State attorneys general out there calling for investigations, the problem is supply and demand. It clearly is that, and there is no other argument that can really fit or begin to explain why we have record high gas prices.
This Senate needs to pass a comprehensive energy bill, and we have one. It is ready to come to the floor. We are being denied that opportunity to bring it to the floor. All I am saying is use due caution as it relates to all kinds of new ways to argue the problem in the marketplace. But when you don't have enough supply of product or crude to go around, when you have world demands and us now depending on a world market for our supply of crude, we have a problem. This Senate refuses to address that problem.
I hope in the coming days as gas prices continue to spike, consumers will ask the question why, and turn to the Senate and say very simply: Do something. Pass a national energy policy. Put it on the President's desk and allow this country to get back into the business of production and meeting the supply to the market, instead of trying to find a scheme or another excuse that will only be a short, limited political ground on which to stand.
I believe there is no place to hide today and no Senator can have that opportunity. The vote has been on the record. Let's change the record and improve the record by the passage of a national energy policy that will once again put our country in the business of energy production.
Madam President, I suggest the absence of a quorum.
Mr. President, I rise to reiterate how important it is that Congress and the administration act to protect the American people from rising gas prices. I call on the Bush administration to stop its…
Mr. President, I rise to reiterate how important it is that Congress and the administration act to protect the American people from rising gas prices. I call on the Bush administration to stop its campaign of inaction on this critical consumer issue.
This week the Organization of Petroleum Exporting Countries, OPEC, will vote on whether to cut their cartel's production by 1 million barrels a day. This vote comes at a time when the American Automobile Association tells us that the national average price of gasoline is the highest it has ever been. Of course, we know it is not yet the peak driving season. In California, consumers consistently pay over $2 a gallon. In my home State, it is $1.80, and in some towns, $1.85, such as Eugene and Medford. Consumers in Oregon are getting clobbered.
The vote OPEC will be making comes at a time when according to the Associated Press private gasoline inventories are already down by 2.5 million barrels. The vote comes at a time when, in spite of these very low supplies, the Bush administration stubbornly persists in filling the Strategic Petroleum Reserve instead of steps that I and others favor, which are to put more oil on the market.
In my view, it is imperative that the United States push OPEC in every possible way not to cause further harm to our already injured gasoline market and to vote against any further production cuts. The Lundberg Survey tells us that even if OPEC were to agree this week not to cut production, we would still face skyrocketing prices. Here is how I read that: If OPEC doesn't agree not to cut production, the problem will be that much worse.
When oil prices were high in September of 2000, then-candidate George W. Bush blasted former President Clinton for not pushing OPEC to increase production. Prices at that time were not as high as they are today. And at least the administration at that time was making some efforts to wring some relief out of OPEC. But still then Texas Governor Bush said:
We need to be mindful of the power of strong and consistent
diplomacy. We need to start playing with chips we have earned
in the past on behalf of American consumers.
If anybody has chips to play now in order to get a fair shake for the consumer, it is this President. Certainly he has chips to play with the domestic oil producers who enjoy the tax breaks he favors and environmental breaks and help when those companies are having difficulty supplying their refineries.
With regard to the OPEC vote, we ought to be clear. I hope the President of the United States will follow the advice he gave years ago. I hope he will do everything possible to push those OPEC countries now, telling them they should not allow the gas problem in this country to worsen with yet another production cut. Pushing OPEC to stop a planned production cut is the very least this administration could do for the gasoline consumer. It would be the least that could be done, but at least it would be something. At least it would end the weeks' long, months' long campaign of inaction that this administration has waged as gasoline prices have crept higher and higher and clobbered consumers in every part of the United States.
For several weeks now OPEC's per barrel price has been well above their target per barrel price range of $22 to
$28. OPEC committed to keeping prices in this range. They long ago discarded that commitment, and yet nobody has heard anything from the administration until just in the last week or so, as I and others started calling for answers.
We sure heard from the White House last week when OPEC prices dropped to $35.51 per barrel. They said: Well, we are making progress. But the fact is, that amount is more than $7 higher than the top of OPEC's target price range. So any pressure this administration has put on OPEC is a day late and more than $7 short. Taking credit after the fact for a pittance of accommodation from OPEC is not going to solve this Nation's gasoline price problems, and it certainly is not going to provide the consumer any real relief.
I will tell you what else is not going to help American consumers. That is for the administration to continue to turn a blind eye to the rampant anticompetitive and anticonsumer practices that are plaguing our country's gasoline markets. Scores of communities, including those in my State, have few if any choices for the gasoline consumer. Nationwide the gas market in Oregon and at least 27 other States is considered tight oligopolies where four companies control more than 60 percent of the gasoline at the pump. In these tightly concentrated markets, numerous studies have found oil company practices have driven the independent wholesalers and detailers completely out of the market. They use red lining and zone pricing. The fact is, with these and other practices, the independent stations can't compete. They go out of business, and the oil companies can widen their net to grab even more cash from the consumers.
The Federal Trade Commission, when they have looked at these practices in the past, have admitted that they are anticompetitive and drive prices higher. They just say they don't have the power to do much about it. I don't think that is true. To be fair, the past administration didn't do a whole lot either when it came to going to bat for the consumer to stop these oil company anticompetitive practices. But this administration has proven that if they want to make something happen administratively, they certainly can do it. They have done that in area after area.
It seems to me that if the administration will end its campaign of inaction to stop the price-pumping shenanigans of private oil companies, they could certainly take steps now to help the American consumer.
In December of 2002, they stepped in to stop filling the Strategic Petroleum Reserve to keep more oil on the market, when the oil companies couldn't keep their refineries full. But now when American consumers are paying $2 a gallon at the pump, we don't see any effort to stop filling the Strategic Petroleum Reserve. So the fact is, what this administration is unwilling do for the driving public, they are willing to do for big oil.
What ought to be done in the face of this campaign of inaction? Certainly, you can make a start by having congressional action. I sponsored S. 1737, which would give the Federal Trade Commission additional tools to promote competition in these very tight markets. They would have the power to issue cease and desist orders to prevent companies from gouging consumers. That is a vehicle that can be used right now to help the American consumer. We are certainly going to have problems in the days ahead. And even the oil companies admit that the market won't solve the problems on its own.
Last August a report by the Rand Corporation revealed that even oil industry officials are predicting more price volatility in the future. Last November the Energy Information Administration also issued a report on the causes of last summer's record high gas prices.
They said--and this is the position of the Federal Government-- ``There is continuing vulnerability to future gasoline price spikes.''
The Congress needs to act now before gasoline rises to $3 per gallon, and we are hearing that from some independent oil industry analysts.
The administration, however, has the power to act now. They need to be on the phone. They need to be pushing OPEC today. They need to get off the dime at the Federal Trade Commission, where action can be taken administratively. Rising gas prices don't just hit families in the pocket during the weekly fill-up; those rising gasoline prices are producing a disturbance and causing ripples throughout our economy. There are huge consequences of this price manipulation.
When gasoline costs more, businesses' transportation costs go up. Their profits go down. So either the price of the goods they sell to consumers has to go up, or the number of people they employ must plummet. So higher gas prices either mean bigger costs for consumer goods, or fewer jobs in an economy that certainly cannot afford to lose any more.
Let me close by saying that I hope my legislation, S. 1737, will pass in the days ahead. Right now, consumers are getting socked at the pumps in person. That is not acceptable to me and should not be acceptable to any Member of the Senate. It is time to stand up to the status quo.
It is time for the Bush administration to take the lead. They ought to do it with OPEC and with the Federal Trade Commission. If the administration doesn't support the proposals I offer today, they ought to end their campaign of inaction and offer their own. I hope we will have a chance to debate this on the floor of the Senate.
I yield the floor.
Madam President, I rise with my colleague from Tennessee, to recognize the introduction of legislation in the House of Representatives today by Congressmen Don Young of Alaska and George Miller of…
Madam President, I rise with my colleague from Tennessee, to recognize the introduction of legislation in the House of Representatives today by Congressmen Don Young of Alaska and George Miller of California. The Get Outdoors Act is similar to an effort that many of us in the House and Senate were involved in during the 106th Congress.
I am particularly pleased to be joined by Senator Alexander to announce our intention to introduce similar legislation in the Senate in the coming weeks.
The principles and concepts within this legislation from the 106th Congress were then and continue today to be one of the most significant conservation efforts ever considered by Congress. Our goal is to provide a steady, reliable stream of revenue to fund some of the most urgent conservation needs in the country.
The Get Outdoors Act, or GO Act, as the House bill will be referred to, is almost identical to the legislation considered by the House and Senate in the 106th Congress. That legislation had overwhelming bipartisan support. It was a landmark, multi-year commitment to conservation programs benefitting all 50 States.
The legislation we will be introducing uses a conservation royalty earned from the production of oil and gas off the Outer Continental Shelf for the protection and enhancement of our natural and cultural heritage, threatened coastal areas and wildlife habitat. It also reinvests in our local communities and provides for our children and grandchildren through enhanced outdoor recreational activities.
By enacting this legislation, we can ensure that we are making the most significant commitment of resources to conservation ever and ensure a positive legacy of protecting and enhancing cultural, natural, and recreational resources for Americans today and in the future.
As many of our colleagues will remember, during the 106th Congress the House of Representatives passed almost identical legislation by a vote of 315 to 102 and the Senate Committee on Energy and Natural Resources reported a similar version that had the support of both the Chairman and Ranking Member.
In addition, in September of 2000, a bipartisan group of 63 Senators sent a letter to the majority and minority leaders indicating their support to bring the bill to the floor. The effort was supported by Governors, Mayors and a coalition of over 5,000 organizations from throughout the country.
Unfortunately, despite that tremendous and unprecedented network of people who came together in support of the legislation, our efforts were cut short before a Bill could be signed into law. Instead a commitment was made by those who opposed the legislation to guarantee funding for these programs each year through the appropriation process.
However, as we have painfully witnessed since then, that commitment has not been honored. What has happened is exactly what those of us who initiated the effort always anticipated. Each of these significant programs has been shortchanged and a number of them have left out altogether or forced to compete with each other for scarce resources. So, today, the House has taken a great step to introduce similar legislation. The principle of the bill Senator Alexander and I will soon introduce provides a reliable, significant and steady stream of revenue for the urgent conservation and outdoor recreation needs of our rapidly growing cities.
If we were to look at a map of the country and put lights where most of the population is, we would see a bright ring around the country because two-thirds of our population reside within 50 miles of our coasts. As a Senator from a coastal State, I understand the pressures that confront many of our coastal communities.
Today, with the price of oil near a 13-year high we should channel some of those revenues and re-invest them in our natural resources.
Some of the programs in the legislation we plan to introduce will include: impact assistance, coastal conservation and fishery enhancement for all coastal States and eligible local governments and to mitigate the various impacts of producing States that serve as the ``platform'' for the crucial development of Federal offshore energy resources from the Outer Continental Shelf. It does not reward drilling, but it does acknowledge the impacts to and the contributions of States that are providing the energy to run the country; flexible and stable funding for the State and Federal sides of the Land and Water Conservation Fund while protecting the rights of private property owners and with a particular emphasis on alleviating the maintenance backlog confronting our national parks; wildlife conservation, education and restoration through the successful program of Pittman- Robertson; urban parks and recreation recovery to rehabilitate and develop recreation programs, sites and facilities enabling cities and towns to focus on enhancing the quality of life for populations within our more densely inhabited areas by providing more green-spaces, more playgrounds and ball fields for our youth and the parents and community leaders that support them; historic preservation programs, including full funding of grants to the States, maintaining the National Register of Historic Places and administering the numerous historic preservation programs that are crucial to remember our proud past and fully funding the Payment In Lieu of Taxes program, or PILT, in order to compensate local governments, predominantly out west, for
losses to their tax bases because the Federal Government owns so much land in a number of those States.
While we confront the challenges of a war, budget deficits and a struggling economy, I believe it would be wise and we would show good stewardship to take this opportunity to set aside a small portion of the oil and gas royalties to our States and localities for initiatives such as outdoor spaces or recreation facilities where our children can play. The essence of this legislation, the American Outdoors Act, is to take the proceeds from a non-renewable resource for the purpose of reinvesting a portion of these revenues in the conservation and enhancement of our renewable resources.
We wanted to come to the floor today to share these ideas with our colleagues, to encourage their input and ask them to be a part of this unique conservation effort.
I would also like to add how much I appreciate the leadership of Senator Alexander. I think we will make a great team and thank him for his cosponsorship as we attempt to move this legislation through the process.
Madam President, I commend my colleague, the Senator from Tennessee, for his leadership--as I said, for not just this year and the years he has been in the Senate but for his years of service in Tennessee, and as Chairman of this important Commission that outlined some of the principles we are talking about and searching for solutions to today; and for his eloquence in reminding us that even more than good stewardship is required.
One particularly fresh idea that he has brought to this effort is the conservation royalty.
I think we can begin to see that the companies are not only paying a royalty to the Government, but they are paying a royalty to future generations through conservation. I think it is royalty they would gladly pay. We are not asking them to pay more than they are today. But a portion of what they pay today.
I thank the Senator for his leadership, and I look forward to getting, as we said, ideas from our colleagues, taking it to the Energy Committee and developing broad bipartisan support. Even in these days of tight budgets, we can think about setting aside a portion of these revenues which are not insignificant. As you know, last year we generated $6 billion off the coast primarily of Louisiana, Texas, Mississippi, and Alabama, while still honoring the moratorium that is in place along the western coasts the eastern coasts and Florida. Even honoring the moratorium in place, we still were able to generate billions of dollars. Hopefully through this legislation we can dedicate that conservation royalty, a portion, to the worthy causes.
I thank the Senator.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I suggest the absence of a quorum.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, in the last 3 years, America has lost nearly 3 million private-sector jobs, including nearly 2.9…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, in the last 3 years, America has lost nearly 3 million private-sector jobs, including nearly 2.9 million good manufacturing jobs.
The Bureau of Labor Statistics says there are 8.2 million Americans out of work today.
But that doesn't include the millions of ``discouraged workers'' who have stopped looking for jobs. And it doesn't include millions more who are under-employed.
All together, nearly 15 million American workers today are unemployed, under-employed, or have given up looking for work.
A month ago, the President's Council of Economic Advisors released its annual report on the economy. It predicted that the economy would create 3.8 million new jobs this year.
The President's own Labor and Commerce secretaries refused to endorse that prediction. Then the President himself backed away from those numbers.
After 3 years of promising jobs that never materialized, the Bush administration won't even predict anymore how many jobs their policies will create.
Last month, the economy added only 21,000 new jobs--every one of them in government. 21,000 new jobs. That is one job for every 389 Americans who need jobs.
All over America, people who have lost jobs are draining their savings accounts, tapping their 401(k)s, and running up expensive credit card debt to try to make ends meet.
The average length of unemployment is at a 20-year high.
When people finally find work, it often involves a substantial cut in pay. Jobs in growing industries pay, on average, 21 percent less than the jobs in industries that are shrinking.
We have a jobs crisis in this country. And it is not just unemployed workers who are feeling the pain.
With wages stagnant or falling, and health care and child care costs rising, many parents are working longer and harder than ever--and it's still not enough.
Consumer debt is at an all-time high. Home mortgage foreclosures, car repossessions, and credit card debt are all at record levels.
Millions and millions of American families are just one health crisis, one pink slip, or one bad break away from financial disaster.
You would never know any of this to look at the agenda of the Bush administration and Congressional Republicans.
The President and Congressional Republicans tell us, ``don't worry, the economy is getting stronger.''
Getting stronger for whom?
Not the millions of Americans who are unemployed and underemployed. Not the workers whose jobs are being shipped overseas with help--help-- from this administration.
Not the 43 million Americans who can't afford health insurance and are living with the daily dread that one serious illness or accident could put them in a financial hole they will never dig their way out of.
America's families need jobs. And workers who have lost their jobs need help until they get back on their feet.
They need unemployment insurance, job training, and health care until they can find their next job.
Yet, this week, instead of just ignoring the economic stress so many American families are under, the Bush administration is knowingly, deliberately, increasing that stress.
Yesterday, the Federal unemployment insurance program expired.
Despite repeated Democratic efforts to extend the program, the Bush administration and Congressional Republicans have refused.
As a result, over one million workers have seen their unemployment benefits expire over the past 3 months, and nearly one million more will see their benefits expire in the next 3 months.
Last week, the President's Commerce Secretary said President Bush would sign an extension of the Federal unemployment program if Congress passed it.
So I urge President Bush to use his powers of persuasion to convince the Members of his own party to extend unemployment benefits.
It is wrong to punish workers who can't find jobs in a jobless recovery.
There is something else the President should do.
President Bush should make it clear that he will not strip overtime pay protections from one American worker. Not one.
Any day now, the Labor Department is expected to issue new regulations that could deny 8 million American workers their right to overtime pay. Those regulations were expected to be released yesterday, but they have now been delayed for some reason.
Bipartisan majorities in the House and the Senate voted last year to overturn the Bush regulations stripping workers of their overtime protections.
But the White House worked behind closed doors with Republican leaders in Congress to push the regulations through anyway.
If they have their way, up to 8 million workers--including firefighters, nurses, store supervisors and others--will lose their overtime pay.
Overtime pay isn't for luxuries; it is essential family income that's needed to pay mortgages, tuition, grocery bills, utility bills, health insurance premiums, and prescription drug costs.
For eligible workers, overtime pay makes up, on average, 25 percent of their income.
Last week, Republican leaders in the Senate actually pulled the JOBS bill to avoid voting on a Democratic amendment that would have preserved the overtime rights of American workers.
The Bush administration would rather force American companies to pay tariffs on the goods they sell in Europe than protect the overtime pay of American workers.
That shows how deeply out of touch this administration and its allies in Congress are with the real needs of average working Americans.
There are other signs as well. Two days ago, the Senate voted overwhelmingly to increase child-care funding in the welfare bill so that mothers who are moving from welfare to work won't have to leave their children home alone or with strangers.
Even though States are slashing funding for child care, the Bush administration insisted that no more money for child care is needed. If their view prevails, 450,000 children would be forced out of child care. That is how out of touch they are with this economy.
This administration has also refused, repeatedly, to raise the minimum wage.
It has fought to deny the earned income tax credit for low-income parents--at the same time it insists on more and bigger tax cuts for the wealthiest one percent.
The President's economic advisors even suggested re-classifying Burger King jobs as manufacturing jobs to try to disguise how many manufacturing jobs America is losing.
I have some advice for them: Forget about creating better-sounding statistics and figure out how to create better-paying jobs here in America.
Millions of Americans are hurting and need help.
I urge the President and the members of his administration, and Republican leaders in Congress, to listen to them and extend the federal unemployment insurance payments, stop this effort to deny working people overtime pay, work with us in a bipartisan way to create and keep good jobs here in America and make affordable health care and child care available for working families.
Mr. President, it's time to bring competition back into our Nation's gasoline markets. Across America, gasoline prices have recently soared to the highest levels ever. Right now, gasoline costs 12…
Mr. President, it's time to bring competition back into our Nation's gasoline markets. Across America, gasoline prices have recently soared to the highest levels ever. Right now, gasoline costs 12 cents more than it did at this time last year. In my home State of Oregon, folks are paying a whopping 32 cents more per gallon than in October of last year.
Proven price manipulation is siphoning competition out of the gasoline markets and stealing money from Americans' wallets. It's time that government regulators opened their eyes to reality of rampant price manipulation by gas companies and protected American consumers from getting pummeled at the pump. That's why today I am introducing the Gasoline Free Market Competition Act.
Every extra penny Americans spend on the artificially inflated price of gasoline is a penny they aren't spending on other things--like clothes, groceries, or other consumer items. The difference is that buying a new washer dryer helps create jobs; paying extra for gas only creates a fatter bottom line for oil companies, nothing more.
With people losing their jobs and the economy in sorry shape, Congress should act right now to protect the American people from oil company price gouging. Artificially inflated gas prices hurt American families three ways: it steals dollars from their pocketbooks, slows down job creation, and often raises the price of the goods families need to buy due to increased transport costs.
Folks are looking to Congress to address gasoline price spikes and industry pricing policies that can't always be explained away by the market. But as the American people have called out for relief, the Federal government has stayed silent--refusing to respond in any meaningful way to the gas price crisis.
The Secretary of Energy says he's conducting an informal investigation to look into the issue. But under current law, the Department of Energy has no power to do anything about gasoline prices.
On the other hand, the Federal Trade Commission (FTC) does have the power to protect consumers from gas price manipulation. Yet they've done almost nothing. They turned aside evidence of serious, documented anti-consumer practices--such as redlining and zone price--that inflate gas prices. They've argued that they can only prosecute if they find out-and-out collusion, setting out a standard that is almost impossible to prove against savvy oil interests.
You can see the results of the FTC's inaction at gas stations in Oregon and all across America. Nationwide, gasoline markets in Oregon and at least 27 other States are now considered to be ``tight oligopolies'' with 4 companies controlling more than 60 percent of the gasoline supplies. The problem is particularly dire in the West, where California, Oregon, Washington and Idaho are four of the top six States for high gas prices today.
In these tightly concentrated markets, numerous studies have found oil company practices are driving independent wholesalers and dealers out of the market. One practice they employ, called ``redlining,'' limits where independent distributors can sell their gasoline. As a result, independent stations must buy their gasoline directly from the oil company, usually at a higher price than the company's own brand- name stations pay. With these higher costs, the independent stations can't compete.
Redlining is just the tip of the iceberg. Investigations have also found oil companies controlling not just stations' buying choices, but also distributors' selling prices. Companies engage in a practice called zone pricing, basing prices not on the cost of producing gasoline, but on the maximum a neighborhood will pay. They have squeezed out smaller refineries that could increase supply and introduce new competitions. They have exported gasoline and oil to Asia at rock-bottom prices, making up their profits by sticking West Coast consumers with the difference. So, stopping one anti-competitive practice, by itself, won't get the job done.
The solution is to update antitrust law to prohibit anti-competitive practices by single companies in concentrated markets. The current standard of collusion is unenforceable. Smart oil companies will never hole up in a room and collude to set prices; they don't need to.
Chevron/Texaco's North American President David Reeves admitted to a congressional panel that the West Coast gasoline market is so dominated by a limited number of large committed refinery/marketers whose individual actions can have significant market impact.
Here's how the Gasoline Free Market Competition Act would tackle the problem. First, the Federal Government would establish consumer watch zones for concentrated gasoline markets. Where control is concentrated, supplies can be manipulated, and competition restricted with ease. Where that capability is ready-made, the FTC should watch markets more carefully.
Oil companies employing anti-competitive practices in consumer watch zones should have to prove they're not hurting consumers. The whole litany of anti-competitive practices should be considered presumptively illegal. That includes exporting at a discount and pressuring independents--all the practices that manipulate supply or limit competition.
Consumer watch zones would also be empowerment zones for quick action by the FTC. In these zones, the agency could issue cease and desist orders to companies participating in these anti-competitive practices, forcing them to stop gouging consumers.
These legislative proposals are first steps toward bringing back competition to the Nation's gasoline markets. Congress should act now to address the problem of skyrocketing gasoline prices--because even the oil companies admit the market won't solve the problem on its own. Last month, a report by the Rand Corporation revealed that even oil industry officials are predicting more price volatility in the future. That means consumers can expect more frequent and larger price spikes in the next few years.
I have spent years documenting unethical and anti-competitive practices in this country's gasoline markets--practices that have driven prices up and driven consumers crazy at the pump. The American people deserve relief from high gas prices and the Congress should act on their behalf.
Mr. President, it's time to bring competition back into our Nation's gasoline markets. Across America, gasoline prices have recently soared to the highest levels ever. Right now, gasoline costs 12…
Mr. President, it's time to bring competition back into our Nation's gasoline markets. Across America, gasoline prices have recently soared to the highest levels ever. Right now, gasoline costs 12 cents more than it did at this time last year. In my home State of Oregon, folks are paying a whopping 32 cents more per gallon than in October of last year.
Proven price manipulation is siphoning competition out of the gasoline markets and stealing money from Americans' wallets. It's time that government regulators opened their eyes to reality of rampant price manipulation by gas companies and protected American consumers from getting pummeled at the pump. That's why today I am introducing the Gasoline Free Market Competition Act.
Every extra penny Americans spend on the artificially inflated price of gasoline is a penny they aren't spending on other things--like clothes, groceries, or other consumer items. The difference is that buying a new washer dryer helps create jobs; paying extra for gas only creates a fatter bottom line for oil companies, nothing more.
With people losing their jobs and the economy in sorry shape, Congress should act right now to protect the American people from oil company price gouging. Artificially inflated gas prices hurt American families three ways: it steals dollars from their pocketbooks, slows down job creation, and often raises the price of the goods families need to buy due to increased transport costs.
Folks are looking to Congress to address gasoline price spikes and industry pricing policies that can't always be explained away by the market. But as the American people have called out for relief, the Federal government has stayed silent--refusing to respond in any meaningful way to the gas price crisis.
The Secretary of Energy says he's conducting an informal investigation to look into the issue. But under current law, the Department of Energy has no power to do anything about gasoline prices.
On the other hand, the Federal Trade Commission (FTC) does have the power to protect consumers from gas price manipulation. Yet they've done almost nothing. They turned aside evidence of serious, documented anti-consumer practices--such as redlining and zone price--that inflate gas prices. They've argued that they can only prosecute if they find out-and-out collusion, setting out a standard that is almost impossible to prove against savvy oil interests.
You can see the results of the FTC's inaction at gas stations in Oregon and all across America. Nationwide, gasoline markets in Oregon and at least 27 other States are now considered to be ``tight oligopolies'' with 4 companies controlling more than 60 percent of the gasoline supplies. The problem is particularly dire in the West, where California, Oregon, Washington and Idaho are four of the top six States for high gas prices today.
In these tightly concentrated markets, numerous studies have found oil company practices are driving independent wholesalers and dealers out of the market. One practice they employ, called ``redlining,'' limits where independent distributors can sell their gasoline. As a result, independent stations must buy their gasoline directly from the oil company, usually at a higher price than the company's own brand- name stations pay. With these higher costs, the independent stations can't compete.
Redlining is just the tip of the iceberg. Investigations have also found oil companies controlling not just stations' buying choices, but also distributors' selling prices. Companies engage in a practice called zone pricing, basing prices not on the cost of producing gasoline, but on the maximum a neighborhood will pay. They have squeezed out smaller refineries that could increase supply and introduce new competitions. They have exported gasoline and oil to Asia at rock-bottom prices, making up their profits by sticking West Coast consumers with the difference. So, stopping one anti-competitive practice, by itself, won't get the job done.
The solution is to update antitrust law to prohibit anti-competitive practices by single companies in concentrated markets. The current standard of collusion is unenforceable. Smart oil companies will never hole up in a room and collude to set prices; they don't need to.
Chevron/Texaco's North American President David Reeves admitted to a congressional panel that the West Coast gasoline market is so dominated by a limited number of large committed refinery/marketers whose individual actions can have significant market impact.
Here's how the Gasoline Free Market Competition Act would tackle the problem. First, the Federal Government would establish consumer watch zones for concentrated gasoline markets. Where control is concentrated, supplies can be manipulated, and competition restricted with ease. Where that capability is ready-made, the FTC should watch markets more carefully.
Oil companies employing anti-competitive practices in consumer watch zones should have to prove they're not hurting consumers. The whole litany of anti-competitive practices should be considered presumptively illegal. That includes exporting at a discount and pressuring independents--all the practices that manipulate supply or limit competition.
Consumer watch zones would also be empowerment zones for quick action by the FTC. In these zones, the agency could issue cease and desist orders to companies participating in these anti-competitive practices, forcing them to stop gouging consumers.
These legislative proposals are first steps toward bringing back competition to the Nation's gasoline markets. Congress should act now to address the problem of skyrocketing gasoline prices--because even the oil companies admit the market won't solve the problem on its own. Last month, a report by the Rand Corporation revealed that even oil industry officials are predicting more price volatility in the future. That means consumers can expect more frequent and larger price spikes in the next few years.
I have spent years documenting unethical and anti-competitive practices in this country's gasoline markets--practices that have driven prices up and driven consumers crazy at the pump. The American people deserve relief from high gas prices and the Congress should act on their behalf.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. I ask unanimous consent to speak as in morning business for up to 10 minutes. Mr. President, in these…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
I ask unanimous consent to speak as in morning business for up to 10 minutes.
Mr. President, in these challenging times, it is always nice to rise to the floor of the Senate to speak about some good things, about the accomplishments of some of the folks from your State that elicit a great sense of pride.
Minnesota is the home to more than 15,000 lakes. It says on our license plates ``10,000 Lakes,'' but there are more than 10,000 lakes. Judging from the performance of our homegrown college athletes this winter, there might be something very special in the water. I congratulate Coach Laura Halldorson and the University of Minnesota Golden Gophers Women's Ice-Hockey team, which claimed its first NCAA championship this Sunday with a convincing 6-to-2 victory over Harvard University.
Finishing with a record of 30 wins, 4 losses, and 2 ties, a conference championship, and the top seed in the NCAA tournament, the Gophers did what so many No. 1 seeds often fail to do, they finished the job and they brought home the hardware.
I think Americans love an underdog, but we also enjoy marveling at excellence, and the women Gopher hockey team achieved this and they deserve our congratulations, they deserve our plaudits.
I wish to highlight the recent progress of women's hockey for a moment.
Hockey is to Minnesota what basketball is to Indiana or football is to Texas. Minnesota has been the center of the hockey universe for almost 100 years. Until very recently, women's college hockey was dominated by Eastern schools. In fact, Augsburg College was the first Minnesota school to field a women's hockey team in 1995. I can proudly say that since the inception of a NCAA Division I National Championship in 2001, no school outside Minnesota has won the national title.
The first three tournaments were won by the University of Minnesota- Duluth, which I had the pleasure of meeting last year.
The hockey rinks of Minnesota--and almost every town has at least one--have always been full of young ring rats wearing hockey jerseys with the names of Minnesota legends such as Broten, Bonin, Pohl, and Gaborik. Today, however, it is as common to see young ring rats skating around the ice with ponytails coming out of their helmets. I got my 14- year-old daughter her first pair of Betty hockey skates this winter, and she uses them proudly. They have the ponytails coming out their helmets. They are wearing names such as Brodt, Darwitz, Wendell, and Potter on their backs. Minnesota has always been the State of men's hockey. Now, thanks to the pioneers of women's hockey such as the women who just won the national championship, Minnesota can rightly claim to be the State of all ice hockey.
Switching from the hockey rink to the basketball gym, the story that has all of Minnesota abuzz right now is the Minnesota Golden Gophers women's basketball team's appearance in the NCAA Final Four. After earning a seventh seed in the regional tournament, Minnesota defeated the No. 3 seed, the No. 2 seed, and finally top-ranked Duke, 82 to 75, on Tuesday night. Prior to this year, the Gophers had never made it past the Sweet Sixteen in three previous NCAA tournaments. Now the Gophers will be the highest seed to play in a Final Four since No. 9 Arkansas in 1998. I believe they are the first No. 7 seed to play in the Final Four.
I had a chance to watch--not watch, I watched here in Washington--the game against UCLA with my daughter in Minnesota who, in addition to wanting to be a hockey player, wants to be a basketball player. On the phone, play by play, as we were talking about it, I just loved the sense of excitement.
I was unable to watch the game against Duke the other night; I had a speaking engagement at the time of the game. But I was anxious, when I checked my cell phone as soon as that speaking engagement was over, to hear first a message from my daughter, with just a couple of minutes left, that we were ahead and then this excited message that we won. We won. It is great to see young kids, young women look at other young women and look at their sense of accomplishment, athletic accomplishment and say, Boy, I would like to be like that. It is great to have role models, and we have them at the University of Minnesota now, led by second year coach Pam Borton and Most Valuable Player Lindsay Whalen, a young woman who broke her wrist and was out for a while and I believe the first game back in the tournament scored 31 points.
The Gopher women will face the University of Connecticut at 8:30 Minnesota time. I wish the team all the best of luck, and the thanks of millions of Minnesotans who will be glued to the television, cheering you on, including me and my daughter.
The University of Minnesota women's ice hockey and basketball teams have made all Minnesotans proud. A source of intense pride for all Minnesotans is that these championship teams are overwhelmingly comprised of Minnesota-grown young women. Eleven of the 14 players on the Gopher basketball team, and 12 out of 20 on the hockey team, are from Minnesota. These young women represent cities from corners of Minnesota, such as Fosston, Marshall, Stewartville, Moorhead, Hibbing, and the Twin Cities.
Congratulations to the University of Minnesota Golden Gophers women's ice hockey and women's basketball teams for their athletic success, and for, really, making all of Minnesota proud, doing such a fabulous job of representing Minnesota on the national stage.
Mr. President, I yield the floor. I suggest the absence of a quorum.
Mr. President, I rise today to introduce with my colleague, Senator Feinstein, a comprehensive bipartisan bill to increase gang prosecution and prevention efforts. This legislation, the Gang…
Mr. President, I rise today to introduce with my colleague, Senator Feinstein, a comprehensive bipartisan bill to increase gang prosecution and prevention efforts.
This legislation, the Gang Prevention and Effective Deterrence Act of 2003, authorizes approximately $650 million over the next 5 years to support law enforcement and prevention efforts. Of the $650 million, $450 million would be used to support Federal, State and local law enforcement efforts against violent gangs, and $200 million would be used for intervention and prevention programs for at-risk youth. The bill also increases funding for the Federal prosecutors and FBI agents needed to conduct coordinated enforcement efforts against violent gangs.
Additionally, this bill will create new criminal gang prosecution offenses, enhance existing gang and violent crime penalties to deter and punish illegal street gangs, enact violent crime reforms needed to prosecute effectively gang members, and implement a limited reform of the juvenile justice system to facilitate Federal prosecution of 16 and 17-year-old gang members who commit serious violent felonies.
I want to take a moment here and commend my dear friend Senator Feinstein for her long-time commitment to this issue. She has been a leader in California and in the Senate in the war against gangs and gang violence. She and I have worked together for many years on this important issue, and I look forward to our joint effort to enact meaningful legislation.
The problem of gang violence in America is not a new one, nor is it a problem that is limited to major urban areas. Once thought to be only a problem in our Nation's largest cities, gangs have invaded smaller communities.
The problem of gang violence is of great concern to the citizens of my State. According to the Salt Lake Area Gang Project, a multi- jurisdictional task force created in 1989 to fight gang crime in the Salt Lake area, there are at least 250 identified gangs in our region with over 3,500 members. What is perhaps most troubling, the juvenile gang members in Utah account for over one-third of the total gang membership.
Gangs now resemble organized crime syndicates who readily engage in gun violence, illegal gun trafficking, illegal drug trafficking and other serious crimes. All too often we read in the headlines about gruesome and tragic stories of rival gang members gunned down, innocent bystanders--adults, teenagers and children--caught in the crossfire of gangland shootings, and family members crying out in grief as they lose loved ones to the gang wars plaguing our communities.
Recent studies confirmed that gang violence is an increasing problem in all of our communities. Based on the latest available National Youth Gang Survey, it is now estimated that there are more than 25,000 gangs, and over 750,000 gang members who are active in more than 3,000 jurisdictions across the United States. The most current reports indicate that in 2002 alone, after five years of decline, gang membership has spiked nationwide.
While we are all committed to fighting the global war on terrorism, we must redouble our efforts to ensure that we devote sufficient resources to combating this important national problem--the rise in gangs and gang violence in America. I have been--and remain--committed to supporting Federal, State and local task forces as a model for effective gang enforcement strategies. Working together, these task forces have demonstrated that they can make a difference in our communities.
In Salt Lake City, the Metro Gang Multi-Jurisdiction Task Force has for years demonstrated its critical role in fighting gang violence in Salt Lake City. We must act in a bipartisan fashion to ensure that adequate resources are available to all of our communities to expand and fund these critical task force operations to fight gang violence.
I also am mindful of the fact that to be successful in reducing gang violence, we must address not only effective law enforcement strategies, but we must also take steps to protect our youth--so that the next generation does not all into the abyss of gang life, which so often includes gun violence, drug trafficking, and other serious crimes. The young people of our cities need to be steered away from gang involvement. We need to ensure that there are sufficient tools to intervene in the lives of these troubled youth. Federal involvement is crucial to control gang violence and to prevent new gang members from replacing old gang members.
We must take a proactive approach and meet this problem head on if we wish to defeat it. If we really want to reduce gang violence, we must ensure that law enforcement has adequate resources and legal tools and that our communities have the ability to implement proven intervention and prevention strategies, so that gang members who are removed from the community are not simply replaced by the next generation of new gang members.
I strongly urge my colleagues to join with me and Senator Feinstein in promptly passing this important legislation.
I ask unanimous consent that an analysis of the bill be printed in the Record.
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Mr. President, I rise today to introduce the State Court Interpreters Grant Program Act of 2003. This bill would create a modest Federal grant program to support the State court interpreter services.…
Mr. President, I rise today to introduce the State Court Interpreters Grant Program Act of 2003. This bill would create a modest Federal grant program to support the State court interpreter services. Currently, court interpreting services vary greatly by State--some States have highly developed programs, others are trying to get programs running but lack adequate funds, and still others have no program at all. This inconsistency creates the potential for poorly
translated court proceedings, or court proceedings that are not translated at all. It is critical that we protect the constitutional right to a fair trial by funding State court interpreter programs.
According to the 2000 Census, 18 percent of the population over age five speaks a language other than English at home. As these individuals with limited English proficiency come into the court system to seek redress or to defend themselves against allegations of civil or criminal wrongdoing, it is critical to the fair administration of justice that they be able to understand their court proceedings.
At the Federal level, court interpreting services are provided as needed by trained and certified interpreters. Similarly, some States have robust and effective court interpreter programs in their State courts. These States recruit, train, test and certify individuals in all necessary languages. However, many States have limited programs which may test and certify interpreters for only one language. Such States may have only a small number of interpreters certified to interpret courtroom proceedings. Still other States have no program at all. We have heard horror stories of ``amateur'' interpreters attempting to translate courtroom events. For example, the Philadelphia Inquirer reports: ``In one juvenile court, a juvenile defendant had to interpret for his parents. In a Monroe County [Pennsylvania] court, a member of an anti-domestic violence group was asked to interpret for an alleged victim, despite having a clear bias.''
The skills required of a court interpreter differ significantly from those required of other interpreters or translators. Legal English is a highly particularized area of the language, and requires special training. Although anyone with fluency in a foreign language could attempt to translate a court proceeding, the best interpreters are those that have been tested and certified as official court interpreters.
A lack of qualified interpreters can create serious problems in the justice system. For example, a poorly interpreted trial may be appealed on the grounds that justice was not administered fairly. Those appeals clog up the courts. In addition, where there are inadequate resources available, interpreters may not be able to keep up with the caseload and trials may be delayed unreasonably and in violation of a defendant's right to a speedy trial.
This is not just a State issue. First and foremost, the right to a fair trial is a federally protected right under the Constitution. The Federal Government therefore has a role to play in ensuring that State courts are holding fair trials. In addition, State budget crises have reduced the ability of the courts to pay for interpreter services. At the same time, requests for interpreter services have skyrocketed over the past several years all around the country. Although Spanish is by far the most requested language to be translated in courtrooms, court officials report regular or occasional need for Russian, German, French, Mandarin, Cantonese, Japanese, Taiwanese, Korean, Vietnamese, Afghani, Armenian, Punjabi, Hindi, Arabic, Somali, Polish and many other languages. The coincidence of budget cuts and increased demand threatens federally-guaranteed due process and justifies Federal assistance.
This legislation addresses this problem by authorizing $15 million for each of the next five fiscal years for a grant program to the States. Those States that apply would be eligible for a $100,000 base grant allotment. In addition, $5 million would be set aside for States that demonstrate extraordinary need. The remainder of the money would be distributed on a formula basis determined by the percentage of persons in that State over the age of five who speak a language other than English at home.
Support for this legislation comes from State court administrators across the country. In fact, the Conference of Chief Justices and Conference of State Court Administrators this summer adopted a resolution urging Congress to establish a national program to assist State courts in providing court interpreters services.
I hope my colleagues will help the court systems in their States to provide critical court interpreting services to their constituents.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I rise today with Senator Enzi and others to introduce legislation to address the long-standing issue of how to see that the sales and uses taxes which are owed on remote sales, i.e.,…
Mr. President, I rise today with Senator Enzi and others to introduce legislation to address the long-standing issue of how to see that the sales and uses taxes which are owed on remote sales, i.e., items bought from companies outside of the State in which the purchaser lives, can be fairly collected. The Simplified Sales and Use Tax Act which we introduce today will allow the States to require collection only after they have dramatically simplified their sales and use tax systems.
Collecting a sales tax in a face-to-face transaction on Main Street or at the mall is a relatively simple process. The seller collects the tax and remits it to the State or local government. But with remote sales--such as catalog and Internet sales--it's more difficult. States cannot require a seller to collect a sales tax unless the business has an actual location or sales people in the State. So most States, and many localities, have laws that require the local buyer to send an equivalent ``use tax'' to the State or local government when he or she did not pay taxes at the time of purchase.
The reality, of course, is that customers almost never do that. It would be a major inconvenience, and people are not accustomed to paying sales taxes in that way. So, despite the legal requirement, most simply don't do it, and the tax, which is already owed, goes unpaid. For years, State and local governments could accept this loss because catalog sales were a relatively minor portion of overall commerce. But, as e-commerce continues to grow so does the competitive divide between those businesses with and without the collection burden and the local governments who are losing an ever larger share of sales tax revenues.
In fact, it appears as if local governments are facing a perfect storm of dwindling economic activity, and a growing migration of commerce from Main Street to the Internet. As online consumer purchases have nearly doubled in the last 2 years estimates are that States and localities lost at least $13.5 billion in uncollected sales and use tax revenues in 2002, and that number is expected to grow to $45 billion by 2006.
Internet and catalog sellers correctly argue that collecting and remitting sales taxes would be a significant burden. Understandably, they contend that, unless things change, it would be difficult for them to have to comply with tax laws from thousands of different jurisidictions--46 States and thousands of local governments--with different tax rates and all of the idiosyncrasies regarding what is taxable and what is non-taxable.
This is a legitimate complaint, and I understand why the Supreme Court agreed with them when it decided that companies have to have a physical presence in a State before being required to collect sales taxes.
But, in so ruling the Court did two things: (1) it told the States to simplify their sales and use tax systems, and (2) it invited Congress to define how much simplification will be needed so that collection will no longer be an impermissible burden on interstate commerce.
The States have since responded to the Court's ruling with the ``Streamlined Sales and Use Tax Agreement.'' Approved by 34 States and the District of Columbia after extensive discussions with the business community this unprecedented agreement will dramatically simplify and streamline how State sales taxes are identified and collected. And, by harmonizing State sales tax rules, bringing uniformity to definitions of items in the sales tax base, significantly reducing the paperwork burden on retailers, and incorporating a seamless electronic reporting process the agreement will significantly reduce the burden of collection on all sellers. Once adopted by 10 States with at least 20 percent of the population, the Simplified Sales and Use Tax Act would give those States the authority to collect sales or use taxes equally from all retailers.
I understand that some have raised questions about how the small business exemption included in this legislation will be applied, and I intend to work with those interested parties to try to address this matter. However, sales and
use tax simplification is an important issue that Congress must address sooner rather than later. The legislation we introduce today is workable and strikes a fair balance between the interests of consumers, local retailers and remote sellers.
Mr. President, I urge my colleagues to support this much-needed bipartisan legislation.
Mr. President, I would like to express my support as a cosponsor for S. 1737, the Gasoline Free Market Competition Act. Over the past few months, oil prices have skyrocketed $40 per barrel, the…
Mr. President, I would like to express my support as a cosponsor for S. 1737, the Gasoline Free Market Competition Act. Over the past few months, oil prices have skyrocketed $40 per barrel, the highest price since 1990. High gasoline prices are inextricably linked to high crude oil prices. And these high oil and gas prices hurt Americans across the Nation and from all walks of life. Farmers, teachers, and small business owners across the country and in Wisconsin in particular are getting hit hard by these outrageous costs.
The statistics are staggering. For gasoline, the increases in crude oil prices have resulted in an average national price of $1.96 per gallon. In Wisconsin, the current average price for a gallon of self- service regular unleaded gasoline in Wisconsin is $1.821, according to AAA's Fuel Gauge Report. The current average is 7.1 cents higher than a month ago at this time and 23.6 cents higher than a year ago at this time. These are the highest gas prices we have seen in 13 years.
Unfortunately, under current law, the Department of Energy can conduct investigations into gasoline prices, but it does have the power to enforce the law or sanction companies for price manipulation. On the other hand, the Federal Trade Commission, FTC, does have the power to protect consumers from gas price manipulation. The FTC is supposed to promote competition and free markets, but all too often, the FTC has not actively overseen energy markets to prevent price fixing and market manipulation.
Congress needs to direct the FTC to eliminate anticompetitive practices that currently cause a chokehold on the competitiveness of independent gas distributors and gas station owners. That is why I am supporting the Gasoline Free Market Competition Act, S. 1737. This legislation would modernize antitrust law to prohibit anti-ompetitive practices by single companies in the concentrated gasoline markets. The gasoline market in Wisconsin and at least 27 other States are now considered to be ``tight oligopolies'' with four companies controlling more than 60 percent of the gasoline supplies. We need to ensure that these concentrated markets are not subject to manipulation.
S. 1737 would address two major problems tied to gasoline price- fixing called ``redlining'' and ``zone pricing.'' In tightly concentrated markets, numerous studies have found oil company practices are driving independent wholesalers and dealers out of the market. One anticompetitive practice is called ``redlining,'' which limits where independent distributors can sell their gasoline. As a result, independent stations must buy their gasoline directly from the oil company, usually at a higher price than the company's own brand-name stations pay. With these higher costs, the independent station cannot compete. Investigations have also found large consolidated oil companies control not just the buying choices of local gas stations, but also the selling prices of gasoline distributors. This anti- competitive practice is called zone pricing. The company bases prices not on the cost of producing gasoline, but on the maximum a neighborhood will pay.
The Gasoline Free Market Competition Act, S. 1737, will do three things to address this problem. First, the bill would establish ``consumer watch zones'' for concentrated gasoline markets like Wisconsin. Where a few companies control a large part of the market, they can manipulate supplies and restrict competition with ease. Therefore, the FTC should watch consolidated markets more carefully.
The Gasoline Free Market Competition Act also shifts the burden of proof for price-fixing. If the FTC finds that an oil company is employing anticompetitive practices in a consumer watch zone, the company should have to prove it is not hurting consumers. Redlining and zone pricing would be presumptively illegal. Oil companies that engage in anticompetitive practices that manipulate supply or limit competition would have to prove these practices do not hurt consumers.
Finally, the act gives the FTC clear ``cease and desist'' authority to stop price-fixing. In consumer watch zones, the FTC could issue ``cease and desist'' orders to companies participating in these anticompetitive practices, forcing them to stop gouging consumers. The Congress needs to act now to ensure that anticompetitive practices do not lead to further gas price increases, as many energy analyst are predicting.
Mr. President, it is time for the Bush administration to end its campaign of inaction on gasoline price hikes. Tomorrow, OPEC will vote on whether there should be additional production cuts, and this…
Mr. President, it is time for the Bush administration to end its campaign of inaction on gasoline price hikes. Tomorrow, OPEC will vote on whether there should be additional production cuts, and this very morning, the Saudi oil minister said OPEC should go ahead with its scheduled production cut in the month of April.
If they do, that is going to take 1 million barrels of oil off the market per day, when U.S. private oil supplies are already millions of barrels low and when U.S. gasoline prices are at record highs.
Folks on the west coast of the United States are getting clobbered by these gasoline price hikes. People in California pay considerably more than $2 a gallon. Folks in my home State of Oregon are close behind, paying an average of more than $1.80 in some of our towns.
There is a perfect storm coming with respect to these gasoline price hikes. The combination of the Bush administration filling the Strategic Petroleum Reserve at the wrong time, the fact we have these refinery cutbacks on the west coast that seem as much to boost profit as anything else, the Federal Trade Commission turning a blind eye to anticompetitive profits, and the shenanigans of OPEC are the factors that are coming together to create what I think could be a perfect storm with gasoline prices of $3 a gallon.
On the OPEC issue, less than a month ago the head of the Energy Information Agency told me OPEC would make up the difference for the oil the U.S. Energy Department is putting in the Strategic Petroleum Reserve. I have to tell you, Mr. President, if you think OPEC is going to be looking out for the American gasoline consumer, you have to think Colonel Sanders is looking out for the chickens. It simply does not add up.
For the life of me, I cannot understand the administration's insistence on continuing to swipe oil out of the private U.S. market and squirrel it away in the Strategic Petroleum Reserve at a time when the American consumer is getting clobbered each week at the gasoline station. The Bush administration needs to stop filling the Strategic Petroleum Reserve. The administration is spending American tax dollars to buy oil at record high prices and put it in the reserve, and apparently they are saying they will not stop it. But, in fact, they did stop filling the reserve when it helped the oil companies. They stopped filling the reserve in December 2002 when the oil companies needed more supply for refineries.
It seems to me the message today is what the administration is willing to do for the big oil companies they ought to do for the American consumer, and particularly the ones I represent on the west coast of the United States.
There is no substitute for leadership when American families are hurting financially and getting shellacked by these gasoline price hikes. It is interesting to note that when the President was a candidate in 2000, he said the President ought to be using his bully pulpit to jawbone OPEC. This administration is not doing that.
Last week, they took credit for oil coming down about $1 a barrel. The fact was, that was a day late and $7 a barrel short because the price is still way above the OPEC price target level.
We come to the floor today to say when the American people are hurting, there needs to be Presidential leadership. These gas prices are hurting my constituents. They are devastating to businesses and to consumers on the west coast, and they are driving up prices for goods and transportation in this country.
We have a proposal. It is to stop filling the Strategic Petroleum Reserve, No. 1. No. 2, it is for the Federal Trade Commission to get off the dime and look at these anticompetitive practices. I have introduced legislation, S. 1737. If the Bush administration does not like that bill, I would like to hear their proposal. Let's hear what they are going to do to stand up for the west coast consumer.
It seems the administration is busy filling the Strategic Petroleum Reserve with no regard for rising gas prices. They are busy with their campaign of inaction that seems to help nobody but the oil companies and will not direct the Federal Trade Commission to take steps now to protect the consumer. I think the American people deserve better.
I yield the floor.
Mr. President, I rise today to introduce the Streamlined Sales and Use Tax Act, a bill that will make it easier for American consumers and businesses to conduct sales from remote locations. Our bill…
Mr. President, I rise today to introduce the Streamlined Sales and Use Tax Act, a bill that will make it easier for American consumers and businesses to conduct sales from remote locations. Our bill will also help states begin to recover from years of budgetary shortfalls.
This bill is not a disguised attempt to increase taxes or put a new tax on the Internet. Consumer are already supposed to pay sales and use taxes in most States for purchases made over the phone, by mail, or via the Internet. Unfortunately, most consumers are unaware they are required to pay this use tax on purchases for which retailers choose not to collect sales tax at the time of purchase.
That means consumers who buy products online are required to keep track of their purchases and then pay outstanding use tax obligation on their State tax forms. Most people do not know this or comply with the requirement. As such, States are losing millions of dollars in annual revenue.
Our legislation will help both consumers and States by reducing the burden on consumers and providing a mechanism that will allow States to systematically and fairly collect the taxes already owed to them.
This bill is not about new taxes. Simply put, if Congress continues to allow remote sales taxes to go uncollected and electronic commerce continues to grow as predicted, other taxes--such as income or property taxes--will have to be increased to offset the lost revenue. I want to avoid that. That's why we need to implement a plan that will allow States to generate revenue using mechanisms already approved by their local leaders.
This bill is about economic growth. Sales and use taxes provide critical revenue to pay for our schools, our police officers, firefighters, road construction, and more. It will bring more money-- money that is already owed--into rural areas that are struggling economically. It will also help businesses comply with the complicated States sales tax systems. That means the business resources that have historically been spent on tax compliance could be used, among other things, to hire new people and buy new equipment.
This bill is about tax simplification. As the Supreme Court identified in the Quill versus North Dakota decision in 1992, the complicated State and local sales tax systems across this country have created an undue burden on sellers. Our bill will help relieve this burden by requiring States to meet the stringent simplification standards outlined in the Streamlined Sales and Use Tax Agreement. This bill requires States to implement and maintain these simplification measures before they can require any seller to collect and remit sales tax.
The Streamlined Sales and Use Tax Agreement includes dramatic simplification in almost every aspect of sales and use tax collection and administration, especially for multi-state sellers. Areas of simplification include exemption processing, uniform definitions, State level administration of local taxes, a reduced number of sales tax rates, determining the appropriate tax rate, and reduced audit burdens for sellers using the state-certified technology.
I firmly believe this bill, coupled with the Agreement, will facilitate a change to our taxing system that benefit local and State governments, Main Street and online businesses, and consumers. I recognize that this legislation may not be perfect, but I welcome the opportunity to continue working with retailers, local and State lawmakers and my colleagues to address any remaining concerns. Our intention is to close the sales tax loophole for remote sales, and I am ready and willing to engage in discussions to ensure that this bill fairly accomplishes that objective.
I thank my colleague, Senator Dorgan, for his tireless efforts on this issue. He has been instrumental in drafting this critical legislation, and I appreciate his insight and thoroughness. I would also like to thank my colleagues on both sides of the aisle who have agreed to be original cosponsors--Senators Dorgan, Breaux, Bingaman, Chafee, Bob Graham, Hagel, Hutchison, Johnson, Ben Nelson, Rockefeller, Voinovich, and my esteemed fellow Senator from Wyoming, Senator Thomas.
Mr. President, I would like to take a minute to express my outrage and the outrage of Americans across this country in seeing the mutilation and the horrible attack on the Americans who were serving,…
Mr. President, I would like to take a minute to express my outrage and the outrage of Americans across this country in seeing the mutilation and the horrible attack on the Americans who were serving, not in the military but serving their country nevertheless, and the gleeful crowd gathered around.
We have to remember that it was a relatively small group of people. But nevertheless, the deed was so horrendous that it is hard for those of us who live in a democratic environment, as we do, who live with the respect that we have for other human beings, to look at this and in any way understand what is happening.
So we send our condolences to those families who lost someone they cared about, and to lose them in some kind of atrocious assault we hope will serve as a reminder to all of us of what responsibility we took on when we entered Iraq and the things we should have tried to contemplate before we got to the point that we are.
One cannot criticize our military. I was in Iraq a couple weeks ago. Most of my colleagues have been there at one time or another to see the courage and the willingness to serve that we have with our wonderful young people there. I talked to them. I especially met with those service people who come from New Jersey, men and women. I was very impressed with the quality of their thinking, their education, their view of life and country.
I served in World War II. We were some 14 million in uniform. I enlisted when I was 18. I remember the associations and friendships I made in the small unit in which I served in Europe during the war. When I saw the young people who are serving us today, I was truly impressed with the quality of those who wore that uniform.
We now see the situation in Iraq is a very grim one. I am not sure that the turnover on July 1 to a ruling council, a governing counsel, can stem the tide of violence or reduce the volume of our responsibility. But I wish all of our people well and make a pledge here that I would like to carry back the message that I got from my conversations with some soldiers there.
I asked them to be frank with me and tell me what, if anything, they thought they needed. And they were reluctant at first. I asked whether the food was all right, the shelter was OK. Oh, yes.
But one young captain finally felt comfortable enough to speak. And he said: Yes, I will tell you what we could use, Senator.
He said: The flack jacket that is the best available out there is being worn by members of the coalition in some places, and we don't have those. They are lighter, they are more efficient, and I don't understand why we don't have them.
Fair enough. He said: You see this rifle?
I think it was an M-16, but they have changed considerably from the time I carried a weapon in World War II.
He said: I see members of the coalition with lighter, better aiming mechanisms than we have on these guns. They are easier to work with at any time. We don't have them, and I don't understand why.
When he talked about armored vehicles, he said they don't have enough of them. I was almost dumbstruck. I didn't know what to say because I know we have allocated lots and lots of funds. We have placed over $160 billion into the effort in Iraq, and we are about ready to place a lot more with a special allocation, a supplemental allotment. I asked our military leadership to tell us what it is that prevents us from delivering the kinds of tools, protections, and instruments that our people need to conduct their duty there.
I saw something in the paper last week that said much of the material we would like to have there is not sent because we don't have the transportation available. I think we ought to get after that problem. I pledge to do whatever I can to search out the reasons and make sure we expedite the process of getting our courageous service people, who serve us so well, the equipment and the support that is needed.
Mr. President, I yield the floor.
Mr. President, I rise today in support of the Senator Wyden's amendment to the PRIDE Act that provides States the option to extend current TANF waivers and create additional waiver authority.…
Mr. President, I rise today in support of the Senator Wyden's amendment to the PRIDE Act that provides States the option to extend current TANF waivers and create additional waiver authority.
Virginia has been a leader in many important national reform movements throughout the history of our country. In February of 1995, during my tenure as Governor of the Commonwealth, Virginia enacted one of the most principled, tough, comprehensive welfare reform measures in the United States. It was a tough fight to get this measure passed by a Democrat led General Assembly.
Many other States enacted successful reforms and our approach and that of Wisconsin and Massachusetts served as a model for the entire Nation and encouraged self-sufficiency, the dignity of work and the pride of independence rather than dependence.
The ``Virginia Independence Program'' transformed an outdated welfare system that was failing taxpayers, sapping initiative from welfare recipients, and breaking up families. I have had many former welfare recipients thank me for ending the downward cycle of dependency and despair.
Unlike the Federal work requirement outlined in the 1996 law, able- bodied recipients in Virginia were required work within 90 days, the State had a 2-year limit on benefits, with transition assistance in the third year and promoted individual responsibility by allowing no increase in State benefits for recipients who have more children while receiving welfare.
Vital reforms were made for children. Virginia ended the marriage penalty, increased enforcement of child support by suspending professional and driver's licenses for ``deadbeat'' parents, required mothers to identify the father to receive benefits, or receive no benefits--this led to 99 percent identification and more child support.
Finally, the law required that minor-age mothers having children while on welfare must live with a parent or guardian and stay in school, more commonly referred to as ``Learnfare''.
These reforms resulted in a 60 percent decrease in welfare rolls, and saved more than $357 million in taxpayer funds in Virginia which were used for other priorities in education and law enforcement. Ultimately, I measure our success not by how many people are receiving welfare checks, but rather by how many people are leading independent, self- reliant lives.
Virginia's trailblazing welfare reform has been extremely successful in setting the stage for Federal welfare overhaul, significant declines in welfare roles nationwide, and increasing the number of former welfare recipients getting back to work. Virginia's waiver from Federal law has enabled much of the success in requiring able-bodied men and women to work for their benefits.
With the passage of the Federal welfare reform in the fall of 1996, Congress intended to give the States flexibility with the law. Flexibility through these waivers has allowed States the ability to develop innovative programs that best serve their citizens. Fifteen other States opted for waivers. Indeed, Virginia has far exceeded the goal of the Federal welfare legislation offering Virginians the best tools to provide for themselves and their families.
As of June 2003, Virginia's welfare waiver expired. It is imperative that the PRIDE Act, a continuation of welfare reform started in 1996, include waivers for States that have taken the initiative to make comprehensive welfare reforms. We need to ensure that States can continue to encourage independence through work, promote families and marriage and guarantee child-support enforcement.
I urge my colleagues to support this amendment so that States can maintain these positive results and successful welfare reforms.
unemployment compensation
Mr. President, I rise today in support of the extension of the temporary extended unemployment compensation program, which expires today. I support this effort because, in my view, we still face an…
Mr. President, I rise today in support of the extension of the temporary extended unemployment compensation program, which expires today. I support this effort because, in my view, we still face an extremely serious problem of unemployment in the United States, specifically as it relates to the number of workers who have exhausted their unemployment insurance benefits and are still unable to find work.
The Democrats have tried to extend this program through unanimous consent at least a dozen times this winter and the effort has been rejected by Republican leadership every time. We tried in February of this year. We tried in January of this year. And we tried a number of times in November 2003. Each time the other side of the aisle said the program was no longer needed. Even worse, they said that extension of the program would only give incentives to workers to stay home instead of look for work. This is a very different view of American workers than I have.
According to the latest data from the Department of Labor, between December and February there will be at least 781,000 workers that will have exhausted their regular State benefits and will go without additional Federal unemployment assistance. Based on extrapolations from that analysis, the Center for Budget and Policy Priorities argues that with each week that goes by, another 80,000 workers will be added to this list. In no other comparable data on record has there been this many ``exhaustees.''
In my State of New Mexico, it is estimated that 4,300 workers have exhausted their benefits from December 2003 through March 2004. Through September 2004, it is estimated that 7,200 workers will have exhausted their benefits. In a State where the most recent unemployment rate is 5.7 percent and jobs are very difficult to come by, this is hardly an encouraging figure.
The Bush administration has argued that extension of the TEUC program is not necessary because the unemployment rate is low and the economy is growing. They suggested again and again that we are on the verge of an economic recovery and jobs are being created. I respectfully disagree.
In 2001, the Bush administration claimed that their tax cuts would create at least 800,000 jobs by 2002. That did not happen. In 2002, the Bush administration claimed that 3 million jobs would be created in 2003. That did not happen. In February, the Bush administration claimed in their economic report that 2.6 million jobs will be created in 2004, but everyone in the administration quickly backed away from that number. No one truly believes that this will happen.
Given the lack of coherent or comprehensive policy proposals by the administration, I say it is time we in Congress act to address job creation and help the victims of their failed policies. Extending the temporary emergency unemployment compensation program is, in my view, the least we can do for Americans that have been attempting to find work but cannot do so. As a practical matter, this means workers can continue to get unemployment insurance benefits while they continue to search for work.
So I want to add my voice to the others today and say that we must pass this legislation before it expires. American workers deserve to be dealt with in a fair and equitable manner, especially in this time of need. They need a lifeline, and it is up to us to provide it.
I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I watched with horror yesterday as the media displayed the images of crowded streets, in Fallujah--and burning…
I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I watched with horror yesterday as the media displayed the images of crowded streets, in Fallujah--and burning bodies in the center of that horrific celebration. In the middle of that city that is part of the volatile Sunni Triangle, four Americans were attacked, executed, and then burned as a mob of Iraqis danced around the corpses.
I found it hard to believe I was watching a news program, given that the scene playing out before my eyes looked far more like a gruesome movie than tragic reality.
Sadly, it was a reality--and that reality continues today. Families have been notified that their loved ones were among the four casualties and are mourning the loss of these brave souls.
My home state of North Carolina grieves today as well. The four men who were brutally assassinated yesterday were employees from Blackwater Security Consulting, based in a city in northeastern North Carolina. Preliminary reports tell us that three had been Navy SEALs and one had been an Army Ranger.
The four contractors were stationed in Fallujah to provide a convoy of security--the very purpose of their presence was to protect the lives of Iraqi men and women and they in turn were subjected to such barbaric and despicable acts.
Yesterday's attack on these innocent men only further illustrates the evil influence Saddam Hussein still has over so many Iraqis. We are told that the 150,000 residents of Fallujah are being held captive by a brutal regime that wants nothing more than to return to the past days of tyrannical rule and streets of violence. The perpetrators of these ghastly acts hate freedom, loathe democracy and wish to turn back the clock--it is important to say now more than ever that we will not let this happen.
Mr. President, the horrific slaughters yesterday will not weaken the American resolve to bring order, democracy, and peace to this war torn nation. The criminal who orchestrated these murders are few--and the Iraqis who stand firm against such violence are the men and women we are seeking to serve as the Coalitional Provisional Authority acts to establish stability in the middle of chaos.
As peace and order are brought to all regions of Iraq, may justice arrive alongside them. It is my sincere hope that those responsible for these attacks will not escape punishment. Let our response be swift and just.
While I wish there were more I could offer to the families who grieve the horrific loss of their loved ones, my condolences and my prayers are all I have. My heart aches for the tears of so many--and my earnest prayer is that we see the end of these tragedies as brave Americans continue their work in Iraq. I deeply believe in their mission and in the cause of democracy, freedom, and peace.
I suggest the absence of a quorum.
Mr. President, I rise today to introduce a bill that is critical to rural America and long overdue. My bill would help to ensure that our rural communities continue to thrive and flourish by…
Mr. President, I rise today to introduce a bill that is critical to rural America and long overdue. My bill would help to ensure that our rural communities continue to thrive and flourish by guaranteeing a safe, reliable water supply.
There is no comprehensive program in existence that rural communities can tap into to meet increasing demands for rural water infrastructure. My bill will remedy this problem by creating such a program within the Department of the Interior, specifically in the Bureau of Reclamation. My bill authorizes the Secretary of the Interior to undertake a competitive program to plan, design, and construct rural water supply projects in conjunction with non-Federal local entities.
To date, there is no Federal program specifically in place with the purpose of meeting the rural water needs of communities and tribes. As a result, we either offer piece meal help through EPA grants or communities turn to other programs that were originally designed for other purposes.
In the State of New Mexico alone, there are numerous projects that would benefit from a program such as the one I propose in this bill. Let me just share one example with you--the community of Chimayo, NM. Chimayo is in northern New Mexico tucked in the foothills of the beautiful Sangre de Christo Mountains. This historic and picturesque community is over 400 years old. Today, the small community of less than 3000 people is forced to haul water because they lack adequate infrastructure to service their homes. I know that other States in the west have communities with similar needs.
My bill requires the Secretary to look at whether or not a community has an urgent and compelling need, whether construction of a rural water system would help alleviate future water supply shortages, whether it would help improve health of water quality to name just a few. Additionally, my bill is based on the communities capability to pay. Again, I will speak about New Mexico where many of these communities are among the poorest. Yet, I don't believe that should preclude them from the most basic resource--a safe and reliable drinking water supply.
I know that many are aware of the on-going drought conditions in the west. Our best experts have predicted that this will only get worse. Many of America's rural communities are being hit the hardest by these worsening drought conditions. I believe my bill goes a long way in helping these already struggling communities. This issue is of such huge importance to me, that I intend to ask Senator Murkowski to hold a Water and Power Subcommittee hearing on this bill as early as next week. We have critical needs that need to be addressed and I urge my fellow Senators to help ensure that we can indeed meet them.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, before I make comments on a different subject matter, I commend my friend and colleague for addressing the issue of energy--energy production and energy costs--while he is still on the…
Mr. President, before I make comments on a different subject matter, I commend my friend and colleague for addressing the issue of energy--energy production and energy costs--while he is still on the floor. We have probably close to 200,000 American troops in the gulf area to protect and preserve the countries in those regions. It seems to me it would not be asking too much of our President to jawbone those leaders to increase production. We can see what an increase of production of 1 million barrels per day and 2 million barrels a day would mean. It would have a dramatic impact and effect on consumers in this country. It is difficult for me to understand why we should not expect that kind of leadership from the President of the United States when every day we learn young Americans are losing their lives in that region, and tens of thousands of troops have been serving over in that region for years in order to protect the security of those nations.
Now we come to an issue of enormous need in our country--an important part of that because of our responsibilities in meeting the defense needs and security needs for our forces overseas. We have silence by the administration when they are asked why they aren't jawboning these countries in the Middle East.
I don't know whether the Senator could make some comment on that, just briefly. I listened with great interest to his other comments. I hope the Senate as a whole will take him to heart.
The Senator is sounding the alarm. I think his predictions are self-evident. Thankfully, he is providing the leadership before the full impact of these different events, the confluence of these different events taking place. Clearly, they will take place over the course of late spring or early summer.
I commend the Senator for bringing this to our attention. It is an enormous service, not only to the people of his State but the people of my State and the people all over this country. As we are coming into the late spring and summer, constituents will be wondering where we have been as representatives in dealing with this issue. The Senator from Oregon has outlined a very critical problem and made splendid recommendations. I look forward to working with the Senator to achieve these recommendations.
Bill Text
Latest available legislative text
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1737 Introduced in Senate (IS)]
1st Session
S. 1737
To amend the Clayton Act to enhance the authority of the Federal Trade
Commission or the Attorney General to prevent anticompetitive practices
in tightly concentrated gasoline markets.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 15, 2003
Mr. Wyden introduced the following bill; which was read twice and
referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend the Clayton Act to enhance the authority of the Federal Trade
Commission or the Attorney General to prevent anticompetitive practices
in tightly concentrated gasoline markets.
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 ``Gasoline Free Market Competition Act
of 2003''.
SEC. 2. RESTRAINT OF TRADE.
The Clayton Act (15 U.S.C. 12 et seq.) is amended by adding at the
end the following new section:
``SEC. 27. RESTRAINT OF TRADE REGARDING GASOLINE MARKET ANTICOMPETITIVE
PRACTICES.
``(a) In General.--It shall be unlawful for any person engaged in
commerce, in the course of such commerce, directly or indirectly--
``(1) to impose any condition, restriction, agreement, or
understanding between a refiner and distributor that limits or
prevents the distributor from supplying branded gasoline to
independent retailers in a highly concentrated market, unless
the limitation can be proven not to injure, destroy, or limit
competition;
``(2) if that person is a refiner, to sell the same brand
of gasoline to retailers owned or controlled by that refiner in
a highly concentrated market at different prices than the
refiner sells to its independent dealers, or to sell to
independent dealers in the same relevant geographic market at
different prices if those dealers are located in a highly
concentrated market; or
``(3) to engage in any other practice that the Commission
determines by regulation, after notice and opportunity for
public comment, would be likely to reduce supply or increase
the price of gasoline in a highly concentrated market.
``(b) Consumer Watch Zone.--
``(1) Notice.--Not later than 90 days after the date of
enactment of this section, the Commission or the Attorney
General shall provide notice to each refiner, distributor, and
retailer doing business in a highly concentrated market that
the highly concentrated market is a consumer watch zone and
subject to the conditions of paragraph (2).
``(2) Conditions.--In a consumer watch zone the following
conditions shall apply to a refiner, distributor, or retailer:
``(A) Shift of burden of proof.--If the Commission
or the Attorney General makes a prima facie case of a
violation of subsection (a) against a refiner,
distributor, or retailer, the burden of proof of
proving a benefit to the consumers shall shift to the
refiner, distributor, or retailer. A refiner,
distributor, or retailer may rebut the prima facie case
by showing that the action that is the basis of the
alleged violation was taken to lower gasoline price in
a good faith effort to meet an equally low price of a
competitor.
``(B) Cease and desist.--The Commission or the
Attorney General may issue a cease and desist order
under this section for a violation of subsection (a).
``(c) Evaluation of Oil Merger.--In evaluating whether any
combination of refiners violates the antitrust laws, the Commission or
the Attorney General shall not approve any combination that would
create a highly concentrated market that would injure, destroy, or
limit competition.
``(d) Action by State Attorney General.--Any attorney general of a
State may bring a civil action in the name of such State in any
district court of the United States having jurisdiction of the
defendant to secure relief for a violation of subsection (a) or (b) as
provided in section 4C.
``(e) Definitions.--In this section:
``(1) Highly concentrated market.--The term `highly
concentrated market' means a gasoline market where the 4
largest refiners control 70 percent or more of the gasoline
market in a relevant geographic market area.
``(2) Other terms.--The terms `distributor', `refiner',
`retailer', and `relevant geographic market area' have the same
meanings given those terms in section 101 of the Petroleum
Marketing Practices Act (15 U.S.C. 2801).''.
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