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Read twice and referred to the Committee on Small Business and Entrepreneurship. (text of measure as introduced: CR S16027-16029)
November 25, 2003
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Introduced in Senate
November 25, 2003
Sponsor introductory remarks on measure. (CR S16025-16027)
November 25, 2003
Read twice and referred to the Committee on Small Business and Entrepreneurship. (text of measure as introduced: CR S16027-16029)
November 25, 2003
Floor Debate
22 membersWhat members said about S. 1977 on the floor
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Floor Debate
22 membersWhat members said about S. 1977 on the floor
Mr. President, today I am pleased to introduce the United States-Mexico Transboundary Aquifer Assessment Act. This bill is the result of a field hearing I conducted in Las Cruces, NM two years ago…
Mr. President, today I am pleased to introduce the United States-Mexico Transboundary Aquifer Assessment Act.
This bill is the result of a field hearing I conducted in Las Cruces, NM two years ago during my tenure as the Chairman of the Energy and Natural Resources Committee. The focus of the hearing was water resource issues that were developing along the U.S.-Mexico border-- particularly the area encompassing Las Cruces, El Paso, Texas, and Juarez, Mexico.
There had long existed an ongoing effort to address water quality issues and waste-water infrastructure needs in the border region, but I was concerned that issues regarding the availability of future water supplies were growing. The testimony at that hearing made clear that there exists little consensus on how growing communities in the border region will address their future water needs. In particular, I was struck by the lack of agreement on the long-term viability of future groundwater sources, many of which involve aquifers underlying communities in both the United States and Mexico. Given the rapid population growth along the U.S.-Mexico border and the increasing demand for water, there is a strong need to gain a common understanding of the limits of our shared groundwater resources. A thorough understanding of the resource is the first step to avoiding conflicts similar to those that have arisen between the United States and Mexico over shared surface waters--e.g. the Rio Grande.
The United States-Mexico Transboundary Assessment Act is intended to address the lack of binational consensus regarding the source and availability of future water supplies along the border. It will do this by establishing a scientific program, involving entities on both sides of the border, to comprehensively assess priority transboundary aquifers. The information and scientific tools developed by this program will be extremely valuable to State and local water resource managers in the border region. This effort is to be led by the United States Geological Survey (USGS) working closely with the border states and local entities. Over the last several years the USGS has been working with key stakeholders in the border region to design this technical program.
I understand that establishing this scientific program and accurately assessing our shared water resources is just a step towards developing the long-term plans and solutions that will help avoid future international disputes concerning scarce water supplies. This small step, however, is an important one, and is recognized by a number of organizations familiar with the need for cooperative efforts between the United States and Mexico on shared water resources. In its 6th Report on the U.S.-Mexico Border Environment, the Good Neighbor Environmental Board, an independent federal advisory committee managed by the U.S. Environmental Protection Agency, recommended the initiation of a ``border-wide groundwater assessment program to systematically analyze priority trans-boundary aquifers.'' Also, the Center for Strategic and International Studies, in a January 2003 report of its U.S.-Mexico Binational Council, included as one of its recommendations that Mexico and the United States ``improve data collection, information gathering, and transparency as the first step to developing a long-term strategy for water management.''
Ultimately, the necessary long-term strategy will have to be developed by the communities and other water users who reside along the border. Working with each other and their state water resource agencies, I believe successful strategies can be developed so long as the information that is the basis for the plans is the most accurate possible. In that respect, the USGS has a strong and important role to play. This bill will ensure that the USGS will be able to fulfill this role which, in turn, will enhance the prospects for our border communities to plan for their future and manage their growth in a manner that ensures their long-term viability and prosperity.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I want to speak for just a few minutes today on an issue on which I have introduced a bill. The bill is S. 1966. It is a bill to require a report on the detainees being held at Guantanamo Bay, Cuba.
The purpose of this legislation is to shed some light on the process that is being used by this administration to determine the status of so-called enemy combatants who are held by our Government at Guantanamo Bay Naval Base. It has now been nearly 2 years since the first detainees arrived at Guantanamo as prisoners of the United States. Yet these individuals are still being held in what most would refer to as legal limbo.
My colleagues will recall that on July 16, I urged the Senate to adopt an amendment to the Defense appropriations bill. That amendment was tabled 52 to 42. It is essentially the same provision--it contained the same provisions I have now put into S. 1966, this freestanding legislation I have introduced.
The day after that amendment was defeated I sent a letter to Secretary Rumsfeld expressing my concern over the apparent lack of any kind of legal process being extended to the detainees being held at Guantanamo. Only recently I received a reply from the Department of Defense. In that letter, the Department of Defense maintains that it:
. . . reviews on a regular basis the continued detention of
each enemy combatant and assesses the appropriate disposition
of each individual case.
According to the Defense Department, at the time they wrote back to me, they said that the review had resulted in the release of 64 detainees who were determined to no longer pose a threat to the United States, and more releases were expected.
However, the letter fails to address the more important question, which is whether the Department's review of these detainees is being done in accordance with any recognized civilian or military legal process.
I ask unanimous consent to have the letter printed in the Record at the conclusion of my remarks.
What prompted me to come to the floor of the Senate today was an article I saw in the morning paper. This appeared in various papers around the country, but the one I have here in front of me is from the Boston Globe. It says:
The U.S. military sent home 20 ``enemy combatants'' last
weekend who were being held without trial at Guantanamo Bay
Naval Base in Cuba, only to replace them with the same number
of new prisoners.
It has a quotation from a spokesperson for the military saying:
We cannot talk about any of the individuals that may have
departed the island due to security concerns.
According to this article, all those transferred last week have been returned, many of them to Pakistan, and all of those transferred last weekend, according to representatives from the countries they are citizens of, said they will be released once they have arrived in those countries.
The figure now, as I understand it, is there are 88 suspects who have been transferred out of Guantanamo Bay. Four were released, 4 were handed over to Saudi Arabia, and the remaining 650 or 700 are still there. As this article indicated, we continue to add additional people to this prison we are operating there at Guantanamo.
There are various complaints described in the article by foreign diplomats about the process we are following. There is a statement by the attorney for one of the human rights organizations that has complained bitterly about the improvisational policy decisions and the arbitrary power over prisoners at the base.
My motives for offering this legislation are very simple. While I obviously have concerns about judicial treatment and the failure of any kind of legal process being followed in the treatment of these detainees in Guantanamo, I am even more concerned about the implications of this treatment we are affording these individuals for our own fighting forces as well as our international reputation.
The bill I filed here in the Senate today requires the Secretary of Defense to report on the status of these detainees, including the process that was utilized to determine that status for those who have already been released from Guantanamo. The bill requires the Secretary to provide information related to this release, how long they were detained, the conditions of their release, if any, the explanations of why the Department of Defense has now determined these individuals could be released after what has in many cases been a very long detention.
For the remaining detainees--those who are still at Guantanamo--the administration has still refused to provide ``access to an impartial tribunal to review whether any basis exists for [detainees] continued detention.'' The detainees have not been allowed to speak with their families or their counsel, nor have they been informed of any charges against them, as far as I am informed.
The bill I filed requires that within 90 days of its enactment the Secretary of Defense provide the Senate with information related to the process used to categorize and hold these detainees. It does not call for release of the detainees. It does not in any way, shape, or form require the release of any classified information other than to the chairman and vice chairman of the Senate and House committees. The amendment merely seeks to clarify for the Senate and for the Congress the process by which the detainees' status is determined.
Like most Americans, I have always thought that what distinguished our country in the history of the world was our commitment to individual freedom and to the rule of law; that the bedrock of a free society is the obligation taken by the Government to afford individuals with certain legal protections, and as a Nation committed to these principles we have been instrumental in the formulation and enforcement of international law, particularly when it came to the treatment of prisoners of war. For over 75 years, the United States has adhered to the Geneva Convention. Even during conflicts with insurgents and irregular forces, we have adhered to the Geneva Convention. Whenever our Nation has gone to war, we have taken pride in going above and beyond the requirements of international law as set out in the third Geneva Convention of 1929. In fact, the Department of Defense has adopted its own detailed regulations and doctrine and field manuals built on the provisions of the Geneva Convention which have guided our military through many conflicts regardless of size and scope and duration.
These regulations we have in our own military, like international law, do not contemplate the legal limbo we are holding these detainees in at Guantanamo. Neither the Geneva Convention nor the established military regulations define or use the term the President is using here. This term, unlawful combatant, is a new term which has come up in order to sidestep the requirements both of the Geneva Convention and of our own military regulations. Army Regulation 190-8 provides an effective and efficient process to
categorize the detainees on the battlefield. According to that provision, detainees must be classified either as an enemy prisoner of war, a recommended retained person entitled to enemy prisoner-of-war protections, an innocent civilian who should be immediately returned to his or her home or released, or a civilian internee who, for reasons of operational security, or probable cause incident to criminal investigation, should be retained. Such internees have the right to appeal the order directing their internment by challenging the existence of imperative security reasons that led to their detention.
The President's unilateral determination of the detainee's status at Guantanamo Bay signals a significant departure from the spirit of the Geneva Convention and a significant departure from the letter of established military regulations. In stark contrast to our Government's previous commitment to adherence to the rule of law and human rights, this administration has adopted a position that once the President designates that a person is a so-called enemy combatant or unlawful combatant, a term created by the administration, that person can be locked up and held incommunicado as long as the President desires, with absolutely no legal rights; no right to review of that decision. This means even if the administration makes a mistake or is given faulty information, it is virtually impossible for the person involved to prove his or her innocence because not only can they not talk to a lawyer or to family members, but they do not have the right even to know what they are being charged with.
The U.S. Supreme Court has agreed to consider the narrow question of whether the Federal courts have the power to hear challenges to the detainees' imprisonment. This is a significant move towards restoring the system of checks and balances, which needs to be restored--the system of checks and balances our Founders felt was essential to preserving liberty in the country. Similarly, the bill I have filed begins to fulfill Congress's constitutional responsibility to oversee what the executive branch does. It calls on the administration to tell us whether its actions are in accordance with military regulations and doctrine.
Our goal is to bring transparency to the issue and to fulfill Congress's constitutional role of oversight of the executive. We should know what process the administration is using to determine the status of these detainees.
My concern is much broader than what happens to these particular detainees. I am concerned about the impact of our treatment of these detainees on the treatment of our own military personnel who are captured in future conflicts. Former U.S. diplomats and judge advocate generals and even former U.S. prisoners of war filed ``friend of the court'' briefs in the Supreme Court questioning the legality and wisdom of the administration's policy of open-ended detentions at Guantanamo. Some of those briefs were extremely thoughtful, in my view. One former diplomat wrote:
It has been the experience of each of us that our most
important diplomatic asset has been this Nation's values. . .
. The hint that America is not all that it claims, that it .
. . can accept that the Executive Branch may imprison whom it
will and do so beyond the reach of due process of law demeans
and weakens this Nation's voice abroad.
In their brief, former judge advocate generals, the military's legal prosecutors and those most familiar with the law as it applies to enemy prisoners of war, strongly argue:
To be sure, this is a perilous time, as the President has
stated. But that does not justify indefinite confinement
without any type of hearing or judicial review. The United
States played a major role in the development and adoption of
the Geneva Conventions. The requirements of those
Conventions. The requirements of those Conventions are
incorporated directly into American Military Regulations.
American failure to provide foreign prisoners with the
protections of the Geneva Conventions may well provide
foreign authorities, in current or future conflicts, with an
excuse not to comply with the Geneva Conventions with respect
to captured American military forces.
Just as compelling are the stories told in the ``friends of the court'' brief filed by former prisoners of war. They argue that as a result of their own experience as prisoners of war, the United States has an interest ``in fostering the development, acceptance and enforcement of international norms pursuant to which prisoners of war and others captured during armed conflicts will be treated humanely and in accordance with the rule of law.'' They emphasize, that in particular, they ``wish to ensure that the treatment by the Untied States of foreign detainees . . . is such that the United States and former American POWs retain the moral authority to demand fair and humane treatment for any future Americans detained by foreign governments.''
However, nothing more clearly demonstrates this point than the actual stories themselves. Leslie H. Jackson, Edward Jackfert, and Neal Harrington are former prisoners of war. Mr. Jackson was captured by the Germans, who adhered to the Geneva Conventions. Mr. Jackfert and Mr. Harrington were held by Japan, which had not ratified and did not purport to follow international law.
If you will allow me to read them their brief:
Mr. Jackson was captured by the German Army on April 24,
1944, when his B-17 bomber crashed. Jailed and interrogated
for approximately one week, he was then transported to Stalag
17, a converted concentration camp. In his 13 months of
captivity, Mr. Jackson was granted the bare necessities:
shelter, minimal food, and the ability to socialize with
other American POWs. While the experience was harsh and
unpleasant, Mr. Jackson was never tortured or otherwise hurt
by the German guards. To follow the terms of the Geneva
Conventions of 1929, to which Germany was a party, Mr.
Jackson's German captors placed the appropriate Geneva
Convention signage in the barracks, permitted the
international Red Cross to ship basic necessities to POWs,
and allowed a Geneva inspector to survey the premises. Mr.
Jackson believes that his survival and relatively good health
while in captivity are the result of the German Army's
adherence to the 1929 Geneva Conventions.
The experiences of Mr. Jackfert and Mr. Harrington in the
custody of Japan, which had not ratified and did not purport
to follow the 1929 Geneva Conventions, offer a sharp
contrast. Both men were serving with the U.S. Army in the
Philippines when it surrendered to the Japanese in 1942, and
both subsequently served several years of hard captivity
beyond the reach of any Geneva Convention protections. Both
were part of the Bataan Death March and its well-documented
horrors. Mr. Harrington was forced into slave labor in a
Japanese coalmine, and saw his compatriots starved, beaten
and killed. Mr. Jackfert was also forced into slave labor
and suffered the extreme effects of heavy labor, cruelty
and inadequate nourishment, going from 125 pounds to 90
pounds in a matter of months. There was no Geneva signage,
no recognition of prisoner rights, and virtually no Red
Cross access.
Nor were the experiences of Mr. Harrington and Mr. Jackfert
atypical. Studies have determined that the death rate of U.S.
Military personnel interned by Japan was as high as 40
percent while the death rate of personnel captured and
interned by Germany was little more than 1 percent. . . .
Moreover, while it was rare for American POWs detained in
Germany to be tortured, the opposite was true for American
POWs in Japan. No one can adequately impart the suffering
most allied prisoners endured [in Japan]. . . . They were
beaten, kicked, robbed . . . and were buried alive. . . .
[T]he overwhelming majority endured ``hell on earth.''
Again, let me say, I am in no way suggesting that the detainees are not being treated humanely. In fact, from all information I have received, they are being treated humanely. But what I and these briefs that were filed in the Supreme Court are suggesting is that our failure to adhere to some recognized legal process in determining the status of these detainees opens the door for other countries to refuse to adhere to any legal process as well. It may very well result in arbitrary confinement and harsh treatment or other inhumane practices applied to our own citizens.
This bill will help Congress fulfill its duties and obligations as outlined in the Constitution and in U.S. law and regulation.
I hope we can quickly pass this legislation when we return for the second session of the Congress in January.
I yield the floor.
Exhibit 1
[From the Boston Globe, Nov. 25, 2003]
US Releases 20 Detainees, Transfers 20 More to Cuba
(By Charlie Savage)
Washington.--The U.S. military sent home 20 ``enemy
combatants'' last weekend who were being held without trial
at Guantanamo Bay naval base in Cuba--only to replace them
with the same number of new prisoners.
The prisoner transfer, the first such movement since mid-
July, followed a determination by senior military and
intelligence officials that the outgoing group ``either no
longer posed a threat to U.S. security or no longer required
detention by the United States,'' according to a statement
the Department of Defense released yesterday.
``We can't talk about any of the individuals that may have
departed the island due to security concerns,'' said
Lieutenant Colonel Pamela Hart, a spokeswoman for the
isolated facility at which the United States detains and
interrogates suspected terrorists.
But a high-ranking Pakistani official, who said yesterday
that at least five of the outgoing transferees were Pakistani
citizens, offered a chilly reaction to the Pentagon's news.
``The government is happy, but this is too damn late,''
said Imran Ali, second secretary of the Pakistan Embassy,
adding that 21 Pakistanis have been released from Guantanamo,
but another 37 are still there.
``Their lives have been destroyed. Their families have gone
through psychological trauma, since they were not terrorists;
they were just low-level Taliban fighters.''
The Pakistani official's reaction illustrated the pressure
on the United States to resolve the situation--especially
from allies in the war on terrorism who have expressed
concern for their citizens who are among the 660 prisoners
from 42 countries being held at the base.
Although the State Department has been negotiating with a
number of countries to continue the detention of some, all
those transferred last weekend will be released by their
countries, U.S. officials said.
The Pentagon statement said that ``at the time of their
detention, these enemy combatants posed a threat to U.S.
security.'' It offered little information about the new
arrivals, except that they were transferred from U.S. Central
Command in the Middle East.
Navy Lieutenant Commander Barbara Burfeind, a Pentagon
spokeswoman, said none of the new detainees were captured in
Iraq.
The weekend transfers of the detainees bring to 88 the
number of Al Qaeda or Taliban suspects who have been
transferred out. Of those, 84 were released and four were
handed over to Saudi Arabia.
Ruth Wedgwood, an international law professor at Johns
Hopkins University, said the arrival of the 20 new detainees
follows a flare-up of fighting by Taliban insurgents in
Afghanistan.
Wedgwood has defended the Bush administration's position
that the rules of the Geneva Conventions do not apply to the
detainees because they were not soldiers of a regular Afghan
army.
``Dismayingly, the Taliban have become very active again in
the southern area, so really . . . the war isn't over in that
area,'' she said.
Not among those who were transferred for release, according
to a senior Pentagon official, were the three ``juvenile
enemy combatants''--Afghans ages 13 to 15 who were captured
fighting alongside the Taliban and whose detention at the
prison has attracted particularly intense international
criticism. The commander of Guantanamo operations, Major
General Geoffrey Miller, had recommended that they be sent
home in August.
U.S. officials say they have been coordinating with UNICEF
in the event that the young fighters are released. UNICEF, a
United Nations agency that has offered to handle the juvenile
combatants, runs a program to ease the reintegration of
former child soldiers back into their home societies.
``The State Department and UNICEF will make sure that if
they're returned to Afghanistan, they won't just be plopped
down,'' a Pentagon official told The Boston Globe last week.
Ken Hurwitz of the Lawyers Committee for Human Rights, a
New York-based organization, said that the surprise release
reflected the military's ``improvisational'' policy decisions
and its arbitrary power over the prisoners at the base.
``It's the rule of law that's the point,'' he said.
``They're saying, `Trust us, and we'll do the right thing.'
But there is no right thing unless it's pursuant to some kind
of ordered, lawful proceeding.''
Challenges to the detentions that have been filed in
federal court have so far been dismissed because the base is
located on Cuban soil--it has been leased and controlled by
the United States for a century--and outside the jurisdiction
of U.S. sovereignty. Two weeks ago, the Supreme Court said it
would review the question of whether federal court
jurisdiction may extend there.
In a related development, the lawyer for Army Captain James
``Yousef'' Yee, the former Muslim chaplain at Guantanamo who
was arrested in September in the alleged mishandling of
classified material, sent a letter to President Bush
yesterday asking that his client be released from pretrial
detention for Thanksgiving and his daughter's birthday.
``These charges do not warrant pretrial confinement of any
kind,'' Eugene Fidell wrote in the letter. ``While military
sources initially reported a wild laundry list of suspected
offenses, such as spying or aiding the enemy, these have now
been reduced to two relatively minor [charges]. . . .
Nonetheless, he is being treated as if the original laundry
list of charges was the legal basis for his confinement. This
is totally wrong and unfair.''
Sean McCormack, a spokesman for the National Security
Council, said he would look into the letter, but had no
comment on the president's behalf.
Mr. President, I rise today to introduce legislation with Senators Domenici, Murray, Jeffords, Cantwell, Akaka, Reed, Chafee, and Inouye entitled the ``Children's Health Equity Technical Amendments Act of 2003.''
Since the passage of the Children's Health Insurance Program, or CHIP, in 1997, a group of States that expanded coverage to children in Medicaid prior to the enactment of CHIP have been unfairly penalized for that expansion. States are not allowed to use the enhanced matching rate available to other States for children at similar levels of poverty under the act. As a result, a child in the States of New York, Florida, and Pennsylvania, because they were grandfathered in the original act or in Iowa, Montana, or a number of other States at 134 percent of poverty is eligible for an enhanced matching rate in CHIP but that has not been the case for States such as New Mexico, Vermont, Washington, Rhode Island, Hawaii, and a number of others, including Connecticut, Tennessee, Minnesota, New Hampshire, Wisconsin, and Maryland.
As the health policy statement by the National Governors' Association reads, ``The Governors believe that it is critical that innovative states not be penalized for having expanded coverage to children before the enactment of S-CHIP, which provides enhanced funding to meet these goals. To this end, the Governors support providing additional funding flexibility to states that had already significantly expanded coverage of the majority of uninsured children in their states.
For six years, our group of States have sought to have this inequity addressed. Early this year, I introduced the ``Children's Health Equity of 2003'' with Senators Jeffords, Murray, Leahy, and Ms. Cantwell and we worked successfully to get a compromise worked out for inclusion in S. 312 by Senators Rockefeller, and Chafee. This compromise extended expiring CHIP allotments only for fiscal years 1998 through 2001 in order to meet budgetary caps.
The compromise allowed States to be able to use up to 20 percent of our State's CHIP allotments to pay for Medicaid eligible children about 150 percent of poverty that were part of our State's expansions prior to the enactment of CHIP. That language was maintained in conference and included in H.R. 2854 that was signed by the President as Public Law 108-74. Unfortunately, a slight change was made in the conference language that excluded New Mexico and Hawaii, Maryland, and Rhode Island needed specific changes so an additional bill was passed, H.R. 3288, and signed into law as Public Law 108-107, on November 17, 2003. This second bill included language from legislation that I introduced with Senator Domenici, S. 1547, to address the problem caused to New Mexico by the conference committee's change.
Unfortunately, one major problem with the compromise was that it would allow the 10 States flexibility with its CHIP funds for allotments between 1998 and 2001 and not in the future. Therefore, the inequity continues with CHIP allotments last year, this year, and into the future. This legislation would address that problem and ensure that all future allotments give these 11 States the flexibility to use up to 20 percent of our CHIP allotments to pay for health care services of children above 150 percent of poverty in our respective state Medicaid programs.
This rather technical issue has real and negative consequences in States such as New Mexico. In fact, due to the CHIP inequity, New Mexico has been allocated $266 million from CHIP between fiscal years 1998 and 2002, and yet, has only been able to spend slightly over $26 million as of the end of last fiscal year. In other words, New Mexico has been allowed to spend less than 10 percent of its federal CHIP allocations.
With the passage of H.R. 2854 and H.R. 3288, that situations will improve somewhat. Unfortunately, the change was not made permanent and does not apply to future CHIP allotments. This legislation would correct this problem.
It is important to note that this initiative includes strong maintenance of effort language as well as incentives for our State to conduct outreach and
enrollment efforts and program simplification to find and enroll uninsured kids because we feel strongly that they must receive the health coverage for which they are eligible.
The bill does not take money from other States's CHIP allotments. It simple allows our States to spend our States' specific CHIP allotments from the Federal government on our uninsured children--just as other States across the country are doing.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I thank the Senator from West Virginia for his comments. He has been my good friend for a long time. He and I have worked together now through my 36 years in the Senate, and as he…
Mr. President, I thank the Senator from West Virginia for his comments. He has been my good friend for a long time. He and I have worked together now through my 36 years in the Senate, and as he states, we have not always agreed, but we have always been able to work together in the spirit of friendship and real understanding. I really have great admiration for the Senator from West Virginia.
This is my swan song. I had expected to stand before the Senate and be proud of the product we have before us. I consider what happened in terms of the staff mistake a stain upon my service as the chairman.
Mr. President, H.R. 4818, the Foreign Operations Appropriations bill was the legislative vehicle for the fiscal year 2005 Omnibus appropriations bill.
The conference report includes $388.4 billion in discretionary funding for the following nine appropriations bills: Agriculture, Commerce-Justice-State, Foreign Operations, Interior, Energy and Water, Labor-HHS, Legislative Branch, Transportation-Treasury, and VA-HUD.
Our fiscal year 2005 spending will be within the $821.9 billion discretionary cap.
The conference report includes an across-the-board cut of 0.8 percent for each appropriations bills.
This bill will provide the needed funds to keep this Government going for this fiscal year.
As my chairmanship of our Appropriations Committee draws to a close, I want to take a few minutes to acknowledge and commend some close friends and some of the hardest-working and most dedicated staff I have had the privilege to work with.
Let me begin with my good friend from West Virginia, our committee's ranking member, Senator Byrd, who has been a member of the committee since 1958. He and I have worked together throughout my 36 years in the Senate and it has been an honor to lead this committee with him since 1997. We have not always agreed, but we have always been able to put our differences aside and work toward the common good. I especially want to thank him for his efforts over the past year. We both had hoped and worked toward getting our appropriations bills across the floor on an individual basis. But, this was not possible. And, I want my good friend to know how much I personally appreciate his and his staff's cooperation in recent days as we've brought this process to a close. I will miss the partnership we have shared on this committee.
Chairman Bill Young of Florida has been my partner across the Rotunda since 1999. He has become a good friend and ally in our steadfast efforts to complete our work. He, too, is stepping down from his chairmanship and I want to take this opportunity to thank him and his staff for their assistance and perseverance in getting our work completed. Bill has great respect for the institution that we serve and for his beloved House Appropriations Committee. His heart continues to be with the men and women of our Armed Forces. After the House recesses, he and his wife Beverly regularly visit wounded soldiers up at Walter Reed Medical Center. I hope Bill Young will be returning as chairman of the Defense Appropriations Subcommittee. We will continue to work as a team dealing with modernization of our weapons systems, our military personnel programs, and the national security of this great country.
Over the years, I have had opportunity to work with Dave Obey as both chairman and ranking member of the House Appropriations Committee. Congressman Obey and I have been on opposite sides of a number of issues, but I know of few Members who have his great intellect and passion. Dave Obey is a truly dedicated Member of Congress who cares about the institution, and the legislative process. He is a realist who gives his all in debate, but understands compromise and the need to move the business of Government forward.
I ask unanimous consent to have a chart printed in the Record.
Now, I would like to turn to the clerks of our subcommittees.
Pat Raymond has worked for me for more than three decades in the Senate and will be retiring at the end of the year. Pat began as my scheduler on my personal staff. She has supported me on the Governmental Affairs, Rules, and Appropriations Committees.
From flextime, to postal reform, to the Federal retirement system, and as staff director on this Agriculture Subcommittee, and earlier on the Treasury Subcommittee, Pat has never lagged in her dedication to hard work. Always thorough and precise, always a stickler for details, Pat's also well-known as a quick study.
Even more important than the attributes I have mentioned, has been Pat's loyalty to me personally, to this institution, and to our Nation. As an Alaskan, she understands the true ``can do'' pioneer spirit that has made it possible for her to accomplish even the toughest of challenges.
The Energy and Water Appropriations bill, in particular, was put together in record time. The product represents a truly remarkable accomplishment. It is comprehensive, yet elegant in its simplicity. It sets out an ambitious course for the Corps of Engineers, Department of Energy, and Related Agencies. With few words, it cuts through years of red tape. After reading the bill, the phrase ``the Secretary shall'' has become one of my favorite phrases in the English language.
Tammy Cameron, our majority staff director, Drew Willison, our minority staff director, and their able staff worked on a bipartisan basis and negotiate a bill with the House in 48 hours. They pulled a rabbit out of a hat I thought was long dead. Tammy just took on this new assignment 2 years ago having worked with Senator Campbell on the Treasury Subcommittee. She has learned a complex subject matter in a very short time, and has earned the respect of the highest ranking generals in the Army. On behalf of Senator Byrd and the entire full committee, I want to congratulate Tammy and the entire staff and extend my heartfelt thanks. And, I hope when these proceedings are concluded, they will all go home to bed and sleep for a week.
Scott Gudes is one of those staffers who has become a member of my family. He keeps moving back into the
house. Scott began with me on the Defense Appropriations Subcommittee working with Sean O'Keefe, where he learned with a real master. And he has used what he learned with Sean ever since.
He served for almost 5 years as deputy under secretary for Oceans and Atmosphere at NOAA, and worked as the acting NOA administrator under secretary in 2001. 1 worked closely with him to resolve the Stellar sea lion crisis which threatened to close down Alaska's fisheries, and almost closed down the Senate. As many of my colleagues will recall, while others were drinking eggnog, Congress remained in session until days before Christmas while we resolved that crisis. Scott was instrumental in that effort, and helped administer the resolution we adopted.
He formerly worked for Fritz Hollings on the Commerce-Justice-State Subcommittee as well as on the House Foreign Operations Subcommittee. He has a reputation as a fair, even-minded problem solver, and has a heart for the world's oceans. As NOAA administrator, he had a reputation for rolling up his sleeves and working as crew on research vessels, and he has rolled up his sleeves for us.
The senior Senator from Pennsylvania often refers to Bettilou Taylor as the 101st, and for good reason. She has helped me craft new initiatives in Alaska to address health care, labor, and education. Just yesterday, I got a report on the Denali Commission clinic effort, a program Bettilou created. To give an example of the difference just one person can make, since she instituted this program, there are now 41 new health care clinics in remote villages in Alaska that had none, and another 67 in the planning stage and another 26 under construction. Because of Bettilou and her staff, thousands of rural Alaskans now have health care where they had none before.
She is hard driving, but fair; creative but down to earth; demanding yet caring. She knows health policy and education probably better than any single person in the Senate including her subcommittee chairman, and she can run circles around her adversaries. The word ``can't'' is not in her vocabulary. I once described one of her bills as a ``work of art.'' She is truly one of the Mona Lisa's of the Senate.
Mary Dietrich began with me on the Labor/HHS Subcommittee. She has worked now for several years as the clerk on the DC Subcommittee, and I think it is no small coincidence that the District's finances turned around about the same time Mary showed up. She has worked closely with the City government in helping them shepherd the city toward financial solvency, and has taken a particular interest in programs for children and the arts. At the staff level, she almost single handedly pushed through the DC voucher program that no one else thought had a chance of succeeding. But she persevered, and today hundreds of poor children are attending some of the cities best private schools. They will never know who Mary Dietrich is and will never be able to thank her, but today I say thank you on their behalf and on behalf of the Senate.
While Bono has led the public effort to address the worldwide crisis of AIDS/HIV, there is another rock star behind the scenes who has shaped our Nation's response to that crisis. Paul Grove has drafted dozens of provisions to improve the lives of people around the world-- from people living with AIDS and TB to children without limbs who receive wheelchairs. Together we have created a new program to bring fresh water to dozens of African villages which has changed thousands of lives each day.
Paul is a child of the Foreign Service and has lived across the globe, including 2 years with the International Republican Institute in Cambodia. Paul is quietly competent, but his actions speak loudly about the kind of person Paul is and the difference he has made in the world.
Rebecca Davies is a woman who has found her moment in history. Tough and uniquely qualified, Rebecca Davies has undertaken the task of helping create a whole new department of the government with the most important role of our time, protecting our Nation from terrorism. She formerly served as Deputy of the Appropriations Committee with service on the Budget Committee. I can probably count on one finger the number of people who have the knowledge of the Federal budget process that Rebecca Davies carries in her head.
She has worked on the Treasury Subcommittee, Agriculture Subcommittee and each time left her mark. Together we created a series of programs for rural America while she was at Agriculture from rural water and sewer programs to funding to reduce the high cost of energy to funds to address public facilities in poor rural communities. As a result of her efforts, the honey bucket, what used to be the primary sewer system in Alaska, will soon be the subject of a museum exhibit.
I rest better each night knowing that Rebecca Davies is looking out for our Nation's homeland.
Bruce Evans began his career on the Alaska scene with my former colleague, Slade Gorton. A product of the Senate, Bruce is known by all as a practical problem solver with a great wit and a ``can do'' attitude. Of all the subcommittees I have worked with, I have probably thrown as much at Bruce Evans as any staffer on my committee. From timber harvest to oil and gas development, if I am working on a controversial issue, you can bet Bruce Evans is finding the solution.
With Bruce's insight and quiet competence, together we have improved the lives of Alaska Natives from health clinics to alcohol treatment to fire fighting to save villages from destruction. And while I don't have a public reputation as an environmentalist, Bruce has worked quietly on my behalf to protect Alaska's wildlife. He created the State wildlife grant program funded this year at about $70 million, provided resources for research on wildlife from walrus to polar bears, provided the funds to take the Aleutian Canada goose off the endangered list, and restored Alaska's fisheries. Denali National Park is often called the crown jewel of the national park system. Bruce Evans is one of the crown jewels of the Appropriations Committee.
Carrie Apostolou began her career with me on the VA-HUD Subcommittee. Intensely organized and detail oriented, ``slipping through the cracks'' is something you never have to worry about with Carrie. She has shepherded the Capitol Visitor Center through the process, and is responsible for the unprecedented security improvements we all see everyday. When the Capitol Visitor Center opens in 2006, it will be a testament to Carrie's persistence.
Dennis Ward, came to our committee 2 years ago with a strong and wide ranging military background. He served in the Air Force as an officer for 18 years, taught political science at the U.S. Air Force Academy, and was a political affairs officer at the Ballistic Missile Defense Organization. He is diligent and tenacious and his abilities were evident to all of us when he worked fervently to complete action on the Military Construction Appropriations bill earlier this year. I look forward to a continued close working relationship with Dennis, as I continue my work on defense issues.
Jon Kamarck is one of the leading public housing experts in the Congress. He is known as a tough adversary, but kind and compassionate. He has exercised the committee's oversight responsibilities with vigor, and many an agency has trembled in its boots when Jon finds indifference or incompetence. He has a reputation for demanding compliance with the laws he helps write, because he is as passionate about good Government as he is about helping people. There is a kinder, gentler side of Jon Kamarck agencies don't always see but I have seen as he meets with Eskimo people with no running water or works with low income people living in squalor. If ever there was a staffer who embodied my personal motto it is Jon Kamarck: ``to hell with the politics, just do what's right.''
And last of all, but first among equals is Sid Ashworth. Sid knows more about the Department of Defense than just about any one I know. She is responsible for the largest annual budget of any department, and has overseen revolutionary changes in our national defense from smart bombs to stealth bombers. She has the daily burden of reading intelligence reports, living every day with the knowledge of the threats that plague us. A former Defense civilian from Hawaii, Sid has
forged a close working relationship with Charlie Houy that mirrors my own relationship with Dan Inouye. Sid is a woman who operates in what is sometimes viewed by some as a man's world. She has broken through stereotyped, and is universally revered by secretaries and generals alike. She is innately fair, intensely dedicated, and fiercely loyal. I am glad I have her by my side every day.
I also want to acknowledge a few of the hardworking staff from the other side of the aisle. Terry Sauvain, Senator Byrd's staff director on our committee, has worked tirelessly along side of my staff to get our work done for the year. Terry has long been known as someone who is able to effectively work on both sides of the aisle. He is known as the master of West Virginia and my staff has learned a great deal from him since I became chairman in 1997.
Chuck Keiffer, Senator Byrd's minority staff director, also deserves my thanks. He came to the Appropriations Committee 4 years ago from the Office of Management and Budget and has vast experience on the fiscal issues. I want to acknowledge him and thank him for his assistance and service during my tenure as chairman.
And finally, I want to thank Charlie Houy, the minority clerk for the Defense Appropriations Subcommittee. Charlie has been with the Appropriations Committee for nearly 20 years, working for both the minority and majority. He is a consummate expert on defense issues and is well respected by those at the Department of Defense and his colleagues on the Hill. As chairman of the Defense Subcommittee, I look forward to continuing to work with Charlie and thank him for all of the hard work he has put in over the past year. I am proud to say he is my friend.
Mr. President, we deal with a lot of important and controversial issues in this body. Maybe nowhere is that more the case than on this Senate Appropriations Committee.
I have been fortunate to have had the opportunity to chair this committee with so much history and tradition. Senator Byrd has often reminded us of the historical context of this committee and our role which was specified by our Founding Fathers in the Constitution. And, I would be remiss if I did not note that I and all our members have been fortunate to have been supported by such outstanding professional staff.
I remember when Senator John C. Stennis was preparing to leave the Senate in 1988. And he attributed his long and distinguished career to just a few things. The first, was good staff.
So, I want to take a minute to recognize one such individual, our committee staff director, Jim Morhard. Jim is a consummate professional. He has truly done it all here on appropriations. He joined the committee after a career in the Navy Comptroller's office, and then in the Senate under Senators Wilson and Kasten. Jim staffed the military construction bill as both the minority and majority staff director. Jim worked on Defense Subcommittee and with some reluctance, answered my request for him to take over the Commerce-Justice-State Subcommittee. This is considered by many the most difficult of our 13 subcommittees to handle.
At Commerce-Justice-State, Jim Morhard distinguished himself working as ``clerk'' or staff director under Senator Judd Gregg. Jim dealt with a variety of issues from Securities and Exchange Commission fees to NOAA fisheries programs to small business technical assistance. Long before September 11, 2001, Senator Gregg and Jim sought to wake up the Justice Department and FBI and enhance our counterterrorism programs. On September 11, many of those first responders had taken part in training in counterterrorism exercises that were put forward by our Commerce-Justice-State Subcommittee.
In early 2003, I asked Jim to move up and become staff director for the entire committee. There was no staff that I considered more capable or prepared. Jim has always carried out his tasks with tact, fairness and bipartisan spirit. He has great expertise at the technical aspects of the appropriations job. He can make ``the numbers work'' and draft the bill and report language. And, he has the creativity to critically analyze programs and policies and come up with compromises that move the institution forward.
I think about the same day Jim came on board, we began work on the first of two Iraq/Afghanistan supplementals. I think he has been working tirelessly ever since, shepherding through these bills and helping me get the 2004 and this 2005 omnibus appropriations bills through the Senate, through conference and to the President for signature.
The executive branch has countless programs to recognize employees and excellence. Unfortunately, we here in the legislative banch do not. But, one should not assume that we do not recognize personal and professional excellence when we see it. And, I want to express my appreciation to Jim on behalf of the committee and the entire Senate for a job well done.
the bering sea nonpollock groundfish fisheries buyback program
Mr. President, as part of the fiscal year 2005 Consolidated Appropriations conference report there is a section that provides for a vessel buyback program for the Bering Sea/Aleutian Islands nonpollock groundfish fisheries. Senator Murray, is it your intention that section 219 of Title II of the 2005 Consolidated Appropriations conference report is only to provide for a non-pollock groundfish fishery capacity reduction program for catcher processor vessels engaged in these fisheries in the Bering Sea/Aleutian Islands?
It is my understanding that the North Pacific Fishery Management Council will develop the fishery management plans for the Bering Sea/Aleutian Islands non-pollock groundfish fisheries and nothing in this section should be construed to impede or change the council's development of these plans. Is this your understanding?
Senator Murray, there is language in this section that states that future amendments to the fishery management plans in the Bering Sea/Aleutian Islands should not ``penalize'' members of any catcher processor subsector for achieving capacity reduction under this act or any other provision of law. Could you explain in greater detail what this means? In particular, I want to make sure that nothing in this act would preclude the North Pacific Fishery Management Council from accommodating CDQ interests in future Bering Sea and Aleutian Islands non-pollock fishery management plans.
That is correct. Section 219 is intended to provide a vessel buyback program to be financed through a capacity reduction loan for this fishery. Yes. This section should not be interpreted as…
That is correct. Section 219 is intended to provide a vessel buyback program to be financed through a capacity reduction loan for this fishery.
Yes. This section should not be interpreted as requiring the North Pacific Fishery Management Council to rationalize these fisheries. In fact, nothing in this section should interfere with the council process with respect to development of fishery management plans for this fishery or any ongoing work of the council on fishery management plans or ``rationalization'' of other fisheries.
Yes. This language does not prevent the North Pacific Fishery Management Council, National Marine Fisheries Service, or any other agency from enforcing any Federal law with respect to any member of this sector, including the conservation and management provisions of the Magnuson-Stevens Act. The act shall not prevent the council from raising the CDQ share of the harvest for this fishery consistent with past Bering Sea and Aleutian Islands rationalization efforts or as part of any eventual rationalization process. And finally, this reference to penalties should never be construed to prevent the council from implementing initiatives to reduce bycatch in this sector, which has historically had the highest bycatch rates in the Bering Sea/Aleutian Islands.
Mr. President, over the last several hours, much debate has taken place regarding section 222 of division H of this omnibus appropriations bill. I wish to associate myself with the remarks of many of my colleagues that have insisted that this egregious provision be removed. And, I wish to thank the majority leader and minority leader for establishing a path forward that will ensure that this provision will never become law.
Under the agreement announced earlier by the majority leader, the entire
conference report on the omnibus appropriations bill, once passed by the Senate, will be held at the desk and will not be forwarded to the President for his signature until the House has passed a correcting resolution that will nullify section 222. That correcting resolution will also be passed by the Senate today.
With that guarantee in place, and with the knowledge that section 222 of division H of the omnibus bill will never become law, I am pleased to vote in favor of the bill so that the people of my State and all other States can reap the benefits of the important programs funded in this bill.
Mr. President, I am pleased to see that Section 219 of Title 2 of this Act includes the statutory language necessary to authorize and implement a Non-Pollock Groundfish Fishing Capacity Reduction Program for the catcher processor sector of the Bering Sea and Aleutian Islands SAI This program represents a positive step forward for the Puget Sound-based commercial fishing industry. Passage of this Act concludes more than a year-long effort to craft an appropriate capacity reduction program for the catcher processor sector of the BSAI non-pollock groundfish fisheries.
Reducing capacity in these fisheries will improve the ability of the North Pacific Fishery Management Council to manage the groundfish stock and contribute to the long term economic viability of the many businesses and people involved in the harvesting, processing and delivery of the highest quality seafood products to consumers. This is important not just to the fishermen who take such great risks up in the frigid waters of the North Pacific, but to the myriad of small businesses throughout the Puget Sound region that support this industry: ship repair yards, equipment suppliers, insurance brokers, transportation companies, and marketers.
My predecessor, Warren Magnuson, set out 24 years ago to put in place a system to Americanize and manage our nation fishery resources. His hard work and vision, championed also by a young Senator from Alaska, Ted Stevens, led to the innovative regional council structure we know today. I am proud that the North Pacific Council has managed the fisheries in its jurisdiction so successfully that it is singled out in this country as a model for maintaining sustainable fisheries.
Despite the success of the North Pacific Council in maintaining healthy fish stocks, there have been problems in the region as a result of overcapacity in the fishing fleets. The North Pacific Council has addressed many issues to help prevent overcapitalization, including license programs and limited entry requirements, but once there are too many fishing vessels it becomes a very challenging problem. These are situations where development of fisheries has outpaced the ability of the resource to support, either biologically or economically, the fleets of fishing vessels built to harvest this national resource. There is a Federal nexus here, when overcapitalization is the result of Federal programs or Federal management decisions. Congress has a record of stepping in when needed to assist in resolving these problems, and this Act follows the American Fisheries Act, the West Coast Groundfish Buyback, and the Crab Buyback in the North Pacific.
I disagree with those who say that this is a problem caused by the fishermen alone, and that they should bear the brunt of any economic consequences of an overcapitalized fishery. Yes, they do have responsibilities, and this bill makes them part of the solution. It is the remaining fishermen who will be responsible for repaying the loans used to reduce capacity in the fleets. That is an investment from them to preserve their future in these fisheries, and it will contribute to the broader economic stability of the Puget Sound region.
I must add that fisheries legislation is never easy to draft. It is a very technical subject overlaid with the very lively history of participants in the fisheries. As Maggie noted on the eve of passage of the original fisheries management act:
We cannot satisfy everybody. I know fishermen pretty well.
They are pretty hard to get to agree on a lot of things. They
are independent people.
This sentiment remains very much true today. We have worked hard to accommodate a variety of perspectives in this bill, and I am satisfied that the results are positive.
The Non-Pollock Groundfish Fishing Capacity Reduction Program for the catcher processor sector of the BSAI authorized in this Act is a legitimate use of Federal resources to restore balance in these fisheries and to promote their long term viability. I look forward to working with the people in the fishery and representatives from the National Marine Fisheries Service and the North Pacific Council to implement this program consistent with the intent of Congress.
The purpose of this program is to reduce excess harvesting capacity in the catcher processor sector of the BSAI non-pollock groundfish fisheries. Reducing excess harvesting capacity will contribute to the future rationalization and long term stability of these fisheries. This statement is intended to clarify certain provisions contained in the Act and to facilitate its prompt implementation.
Subsection (a) provides definitions relevant to this Act and defines the four subsectors participating in the capacity reduction program: AFA trawl catcher processors, longline catcher processors, non-AFA trawl catcher processors, and pot catcher processors.
Subsection (b) authorizes a $75 million capacity reduction program for the BSAI non-pollock groundfish fisheries.
Subsection (c) allocates the $75 million in loan authority among the four catcher processor subsectors to reflect their relative participation in the non-pollock groundfish fisheries: $36 million to the longline catcher processor subsector; $31 million to the non-AFA trawl catcher processor subsector; $6 million to the AFA trawl catcher processor subsector; and $2 million to the pot catcher processor subsector. In the event any of the subsectors does not use the funds allocated to them by January 1, 2009, then any remaining funds roll over to a fund available to all four subsectors.
Subsection (d) establishes the basic contractual relationship between members of a subsector who choose to participate in a capacity reduction plan by agreeing to sell their license, their vessel, or both, to the Federal Government. Before the Secretary may disburse funds, a seller must enter into a binding reduction contract with the Federal Government, subject only to approval of a capacity reduction plan pursuant to a referendum described in subsection (e). The binding reduction contract must include provisions governing revocation of all Federal fishing licenses, fishing permits, and area endorsements issued for a vessel, and if relevant, the scrapping of a vessel, that is purchased through a capacity reduction plan authorized by this Act. It is intended that licenses currently attached to a vessel and all associated vessel catch history will be retired.
It is anticipated that the subsectors will use their loan authority to reduce both active and latent capacity. The importance of encouraging the elimination of latent licenses is to prevent the re- capitalization of the fishery from within the fleet. The August 2004
Department of Commerce report on addressing overcapitalized fisheries, U.S. Action National Plan of Action for the Management of Fishing Capacity, identifies latent capacity as a serious problem to be addressed in capacity reduction programs. The report cautions that simply targeting active vessels with large catch histories may result in ctivating the latent boats and licenses, and frustrating the intent of the buyback effort. Unless latent capacity is addressed, the goal of the Non-Pollock Groundfish Fishing Capacity Reduction Program will be undermined.
When dealing with active capacity, a participant will sell both a vessel and its qualified licenses. However, when eliminating latent capacity, there may be circumstances where only a license is purchased through the capacity reduction program. This could occur when a vessel has sunk or was otherwise destroyed by fire or accident, and is not presently active in the BSAI non-pollock groundfish fisheries. There also will be circumstances where vessels have little or no catch history, but have qualified for a license. In this situation such vessels and licenses represent another form of latent capacity and should be targeted in specific capacity reduction plans. In some cases there may be no current vessel named on a qualified license. The price paid to purchase such licenses associated with a sunk or destroyed vessel is expected to be less than the price paid for an active vessel and its licenses.
Subsection (e)(1) establishes a framework within which individual subsectors may develop capacity reduction plans. This includes a fee system that will repay the full amount of a capacity reduction loan amount in a timely fashion. The subsectors may use negotiations, bidding systems, a reverse auction, or other methods appropriate for identifying excess capacity to be reduced. This flexible approach is intended to utilize the knowledge and incentives of the participants in a subsector to develop capacity reduction programs that maximize the elimination of excess fishing capacity at the least cost and in the shortest time.
Subsection (e)(2) authorizes the Secretary of Commerce to review and approve capacity reduction plans devised by each subsector. Once a subsector completes its capacity reduction plan, it is submitted to the Secretary for review to determine consistency with this Act. Subsection (e)(2)(A-E) sets forth the requirements for Secretarial approval. To approve a subsector capacity reduction plan, the Secretary must determine that plan is consistent with the requirements of subsection (b) of section 312 of the Magnuson-Stevens Act, with certain exceptions spelled out in this Act. Each subsector plan must include a fee system for full and timely repayment of the loan, and must achieve the maximum sustained reduction in fishing capacity for the least cost in the minimum amount of time. Maximum sustained reduction may be demonstrated through a showing that the vessels and licenses to be purchased will achieve the greatest reduction in harvest capacity through use of the loan authority available to a subsector. Data related to vessel catch history and performance capabilities may be used to satisfy this provision.
Subsection (e)(2)(E) expressly allows subsectors covered by this Act to upgrade their vessels to achieve efficiencies in fishing operations. This provision does not alter the existing statutory or regulatory restrictions on vessel length, tonnage or horsepower. The North Pacific Council retains authority to tailor vessel upgrades to meet the goals of fisheries management plans within its jurisdiction.
Subsection (e)(3) authorizes the Secretary to oversee referenda by each subsector to approve capacity reduction plans and requires the Secretary to notify subsector participants of an upcoming referendum. Following secretarial review and approval of a subsector capacity reduction plan, the Secretary is required to notify, to the extent practicable, all members of the subsector affected by such plan. The Secretary notice will include information on the proposed fee system, the schedule, procedures, and eligibility requirements for participation in a subsector referendum, and an estimate of the capacity to be reduced. This is purely a notice requirement--not a rulemaking--and it is not required to be published in the Federal Register.
Subsection (e)(4)(A) authorizes the Secretary to implement the individual subsectors capacity reduction plans. Within 90 days after a successful referendum, the Secretary is required to publish in the Federal Register a notice that includes the specific terms and conditions governing the purchase of licenses and vessels and a description of the fee system established for repayment of the loan. This is not a rulemaking. The purpose of this notice is to provide a public record of what has been purchased and how the loan is to be repaid.
Subsection (e)(4)(B) expresses the intent of Congress that Section 312(e) of the Magnuson-Stevens Act not apply to the capacity reduction plans governed by this Act.
Section (e)(5) establishes the authority of the Secretary to collect fees from the remaining members of a subsector necessary to repay the debt obligations incurred as a result of an approved capacity reduction plan. It is intended that the Secretary exercise this authority through regulations that will govern the fee collection system and ensure that the Federal Government can collect such fees. These regulations will bind the remaining members of a subsector and obligate them to repay the capacity reduction loan. Revenues to cover the loan repayment fees will be derived from the sale of fish harvested in the BSAI non-pollock groundfish fisheries.
Subsection (f) establishes the required actions by entities other than the Secretary to impose restrictions on vessels, revoke licenses and associated fishing rights, and scrap vessels. Subsection (f)(1)(A) requires the National Vessel Documentation Center, at the request of the Secretary, to revoke any fishery endorsements issued to a vessel under section 12108 of Title 46, U.S.C. It is expected that the National Vessel Documentation Center will annotate each buyback vessel documentation with language provided by the Secretary to notify future purchasers that they will not be able to receive any fishery endorsements. Subsections (f)(1)(B and C) require the Maritime Administration to restrict a vessel to U.S. flag status and refuse to grant approval for foreign registration or operation under foreign authority by such vessel. Subsection (f)(2) requires that vessels purchased under this Act designated for scrapping conform to the procedures established for a reduction vessel under section 600.1011(c) of Title 50, CFR. Scrapping of vessels pursuant to this provision shall be overseen by the National Oceanic and Atmospheric Administration-- NOAA--and performed consistent with NOAA requirements. The cost to scrap a vessel will be paid by the buyback participant.
Subsection (g)(1) specifies the eligibility criteria for participation in the BSAI Non-Pollock Groundfish Fishing Capacity Reduction Program. It also limits participation in the BSAI non-pollock groundfish fishery to ensure the goal of capacity reduction is achieved.
Subsection (g)(2) expresses the sense of Congress that the North Pacific Council continue with its efforts to rationalize the BSAI non- pollock groundfish fisheries. This statement is intended to reinforce the Council commitment to adopt such management measures necessary to promote stability in these fisheries. This includes final action in a timely fashion on Amendments 80a and 80b, and the development and approval of sector allocations for the BSAI Pacific cod fishery. It is the understanding of Congress that the North Pacific Council will take final action on Amendments 80a and 80b by the fall of 2005, and adopt BSAI Pacific cod sector allocations by the end of 2005. Amendments 80a and 80b are particularly important to the non-AFA trawl catcher processor subsector as this fleet seeks to comply with the North Pacific Council pending Improved Retention/Improved Utilization--IR/ IU--requirements. It is essential that the North Pacific Council take final action on Amendments 80a and 80b prior to implementing new IR/IU requirements.
Subsection (g)(2)(B) makes clear that subsectors who eliminate excess capacity through a capacity reduction plan authorized by this Act not be penalized by the North Pacific Council. This provision is intended to discourage the Council from reducing a subsector
BSAI non-pollock groundfish allocations as a result of that subsector reduction of fishing effort through programs authorized under this Act. This does not preclude the North Pacific Council from exercising its authority to manage these fisheries, including taking actions to address bycatch concerns or changes in stock levels. In addition, this Subsection would not prevent the North Pacific Council from raising the CDQ share of the harvest for this fishery consistent with past Bering Sea and Aleutian Islands rationalization efforts or as part of any eventual rationalization process.
Subsection (h) requires the Secretary to report annually to the relevant Congressional oversight committees on the implementation of this Act. Reports shall include details on the individual capacity reduction plans, an assessment of their cost-effectiveness, and the achievement of the goals set forth in section 312(b) of the Magnuson- Stevens Act.
Mr. President, I comment on the portion of the Consolidated Appropriations Act of 2004 that reauthorizes the Small Business Administration. Of particular importance to me is the inclusion of many…
Mr. President, I comment on the portion of the Consolidated Appropriations Act of 2004 that reauthorizes the Small Business Administration. Of particular importance to me is the inclusion of many aspects of my prior bills, the Small Business Administration 50th Anniversary Reauthorization Act of 2003, S.1375, which was approved by the Senate on September 26, 2003 by unanimous consent, and of my more recent SBA bill, the Small Business Reauthorization and Manufacturing Assistance Act of 2004, S.2821. These provisions reauthorize for 2 years the programs administered by the Small Business Administration under the Small Business Act and the Small Business Investment Act of 1958, and contain significant improvements to the SBA's lending and technical assistance programs.
For over a year, I have worked with the House Small Business Committee and the administration, making numerous attempts to accommodate my colleagues and to resolve outstanding issues that blocked the passage of a comprehensive bill. Various forms of my original bill have been introduced over this period in order to help move the other body's stalled legislation, while in the meantime our Nation's small businesses have waited to receive the benefits of improved SBA services that are contained in this bill.
The vast majority of businesses in each State in this country are small businesses. In Maine, 98 percent of businesses are small businesses. By enacting these provisions Congress is fulfilling its obligation in helping our entrepreneurs reach their American dream.
The SBA is a vital resource not only for our Nation's 25 million small businesses, but also for the millions of Americans relying upon small business ownership as an alternative to the ``traditional workplace'' where corporate America once offered life-long futures for workers.
The SBA's fundamental purpose is to ``aid, counsel, assist, and protect the interests of small-business concerns.'' The methods for carrying out Congress mandates include a wide array of financial, procurement, management, and technical assistance programs tailored to encourage small business growth and expansion. As the economy continues to recover and grow, it is essential that Congress send a message that affirms long-term stability in the programs the SBA provides to the small business community.
In the 50-year period since the establishment of the SBA, there have been many revisions and additions to the methods and organizational structure used by the SBA to respond to the evolving needs of small business. This bill builds upon those changes creating a stronger foundation for the SBA to deliver its programs.
Since 1953, nearly 20 million small business owners have received direct or indirect help from one of the SBA's lending or technical assistance programs, making the agency one of the government's most cost-effective instruments for economic development.
The SBA current loan portfolio of more than 200,000 loans, worth more than $45 billion, makes it the largest single supporter of small businesses in the country. Last year alone, lenders have made 83,912 loans to small businesses in the SBA's two major loan programs, with a total value of $16.5 billion.
Moreover, the SBA Small Business Investment Company program's current portfolio of more than 16,900 financings with an initial investment amount of $17.2 billion makes it the largest single equity-type backer of U.S. businesses in the Nation. Since 1958 the venture capital program has put more than $42.3 billion into the hands of small business owners, and this year it has produced investments of more than $2.6 billion in small businesses.
The SBA estimates that in the last fiscal year its loan and venture capital programs have provided small businesses with $19.7 billion in various forms of financing, enabling small businesses to create or retain 716,144 jobs.
In my home state of Maine alone, almost 2,500 SBA loans have been provided since 1999, for a total of over $288 million, to small businesses that might not have qualified for loans through alternative channels. These loans are critical to providing capital to small businesses in every state and now more will be available to them for supplying this country with additional production, jobs, and income.
Through a great deal of hard work, many aspects of S.1375 that improved the SBA's largest loan program--the 7(a) program--were included in the omnibus package. To give you some examples, a National Preferred Lenders Pilot Program will be created, in which lenders already operating as Preferred Lenders in the 7(a) program in many districts can be granted Preferred Lender status on a nation-wide rather than district-by-district basis, thereby greatly increasing the program's efficiency. The maximum size of 7(a) Express loans have been increased from $250,000 to $350,000 and the maximum 7(a) guarantee is increased from $1 million to $1.5 million.
The SBA 504 loan program, which supports real estate and machinery investments, will also benefit. The maximum 504 guarantee, previously $1 million, is increased to $1.5 million for a general 504 guarantee and $4 million for a guarantee that supports a manufacturing project. For a loan that supports one of the nine ``public-policy'' goals named in the Small Business Investment Act of 1958, the maximum guarantee is increased from $1.3 million to $2 million.
Let me share some additional highlights of the provisions that are included.
As Chair of the Senate Committee on Small Business and Entrepreneurship, co-chair of the Senate Task Force on Manufacturing, and Senator from a state with a rich manufacturing history, I am keenly aware that our nation's economy and security depends on our industrial base.
Unfortunately, manufacturing jobs in the United States have declined since their historic peak in 1979 and that loss has accelerated in recent years. Small business manufacturers constitute over 98 percent of our nation's manufacturing enterprises. It is impossible to overstate the role of small manufacturers within the overall manufacturing industry and our nation's economy.
The bill includes a section that derives from S. 1977, the Small Manufacturers Assistance, Recovery, and Trade, SMART Act, which I and original cosponsor Senator George V. Voinovich introduced on November 25, 2003. Specifically, it establishes a Small Business Manufacturing Task Force within the Small Business Administration, charged with ensuring that the administration is properly addressing the particular needs of small manufacturers.
I am also particularly pleased that the Omnibus bill contains $109 million for the Manufacturing Extension Partnership, a cost-effective, public-private partnership that helps small and medium-sized American manufacturers modernize to compete in the demanding global marketplace.
The MEP's funding had been drastically reduced in 2004, dropping to $39.6 million from a previous level of $106 million. Those drastic cuts threatened to destroy the MEP program, which is relied upon by small manufacturers across our nation.
At a time when these manufacturers are facing an unprecedented level of competition from across the globe, it is vital that we continue to provide them the tools and resources that allow them to remain competitive and to
continue to provide well paying jobs to millions across our country.
For our veterans who give so much to our nation and who continue to take risks on the battlegrounds of the business world, the bill includes language that I originally included in S. 1375, extending the Advisory Committee on Veterans Affairs as a separate entity to continue its functions through September 30, 2006.
The Advisory Committee responsibilities include providing better assistance and support to veterans who are forming and expanding small businesses, and providing advice to Congress and the Small Business Administration on policy initiatives to promote veteran entrepreneurship.
With this legislation, Congress is also taking important steps towards fulfilling its promises to pry open the doors of public procurement for small businesses. Small entrepreneurs continue to face persistent barriers in accessing government prime contracts and subcontracts. Many of these barriers have been erected in the middle of the very programs designed to assist small entrepreneurs who are socio- economically disadvantaged or who do business in Historically Underutilized Business Zones. Therefore, it has been no surprise that the Federal Government has never come close to satisfying its statutory HUBZone prime contracting goals.
Among other items taken from my earlier SBA bill, S.2821, this bill expands the definition of HUBZone-eligible firms to promote inflow of capital to HUBZone areas, tap the potential of small agricultural cooperatives, and place tribally-owned HUBzone firms on equal footing with other participants. It also extends the HUBzone program to military base closure areas such as the former Loring Air Force Base and protects companies located in rural HUBZone areas like Aroostook County, ME, from losses of their HUBZone status due to area redesignations. Duplicative paperwork burdens imposed on 8(a) firms trying to do business with state and local governments are also being lifted.
Mr. President, I would also like to comment on the funding levels provided for the SBA in this bill. Since FY 2001, funding for the SBA has decreased by more than 32 percent, the largest decrease of any agency funded with discretionary spending. I understand the need to be particularly fiscally responsible this year, given the size of the deficit, but such a large cut to programs that focus on creating jobs is a mistake.
The funding included for the SBA Microloan program will provided entrepreneurs with a source of financing when no other options are available. With over $27 million in loan provided through this program last year, I am satisfied that the bill closely reflects my funding request.
I am pleased with the funding levels provided for the SBA technical assistance programs, especially the funding provided for the Women's Business Center program. During this Congress, I worked with the administration and the House of Representatives to pass legislation that would sustained funding for the most experienced centers.
With women-owned firms generating almost $2.5 trillion in revenues and employing more than 19 million workers, they are the fastest growing segment of today's economy. In my home state of Maine alone, more than 63,000 women-owned firms generate more than $9 billion in sales. The funding included in this bill for these centers ensures that there are resources available to continue creating success stories for America's women entrepreneurs.
I am deeply concerned that the final Omnibus bill did not reflect the Senate bill and include funding for the SBIR and STTR programs of $2 million and $250,000 respectively. These programs facilitated over $1.5 billion in government research and development grants to small businesses. Moreover, since the inception of the program in 1982, SBIR firms have produced more than 4,100 patents. Without the funding for these programs not only do our small businesses suffer but so does our nation. These programs capitalize on the small business sector's innovative potential. Technological innovation creates jobs, improves our way of life, and helps American companies maintain their competitive advantage.
I applaud America's small businesses that continue to rise to the challenge of keeping this country innovative and strong. Three to four million new business start-ups each year and 1 in 25 adult Americans accept the risks of starting a business. Today's small business owners are making plans for tomorrow, including decisions that will create approximately two-thirds of all net new jobs helping to sustain local communities, according to a recent National Federation of Independent Business survey.
Over the last 5 years the SBA's programs and services have helped create and retain over 6.2 million jobs. According to the SBA, the $65.5 billion awarded to small businesses in Federal prime and subcontracts in FY 2003 will create or retain close to 500,000 jobs. This bill should bring about similar or even greater results in the next few years.
Too much was at stake for small businesses, and the economy as a whole, to allow SBA reauthorization to languish. It was time for Congress to find essential agreement and fulfill its obligation to America's small businesses. Clearly, if we strove for anything less, we'd have failed to support the backbone of our economy, our hope for innovation and new technology, and our small firms that employ millions across the nation.
Again, I thank my colleagues who joined me in supporting this crucial legislation, thereby bolstering American small businesses and protecting Americans' dreams.
Mr. President, Division K of H.R. 4818, the Consolidated Appropriations Act for 2005, contains the Small Business Reauthorization and Manufacturing Assistance Act of 2004. Since the Act was incorporated directly into the Consolidated Appropriations Act for 2005, no committee report accompanies the legislation.
As Chair of the Senate Committee on Small Business and Entrepreneurship, I am submitting for insertion in the Record, the attached explanation of Division K. I would expect the administrator of the Small Business Administration, in implementing the provisions of this act, to accord the enclosed explanation the same weight in divining congressional intent that the administrator would give to language in a conference report. This expectation is particularly appropriate in this circumstance because the provisions were negotiated and agreed to in cooperation with my counterpart in the United States House of Representatives.
The Small Business Administration 50th Anniversary Reauthorization Act of 2003, S.1375, is a bill to reauthorize most programs at the SBA for Fiscal Years 2004, 2005, and 2006. Additionally, the bill makes changes to various existing programs and authorizes several new pilot initiatives. S.1375 was adopted by the Senate Committee on Small Business and Entrepreneurship by a unanimous vote of 19-0.
S. 1375 was the product of a series of hearings and roundtable discussions that the committee held in 2003 on a wide spectrum of issues and SBA programs.
The committee completed its series of hearings and roundtables on SBA reauthorization with a hearing on June 4, 2003, that included SBA Administrator Hector Barreto. This hearing provided an additional opportunity for the agency to respond to issues raised during the previous roundtable discussions, discuss its legislative package that was submitted to the Committee for review, and comment on the President's fiscal year 2004 budget submission. The hearing also examined a number of agency management issues including the SBA's efforts to obtain a clean audit opinion on financial statements, implementation of a loan monitoring system, and workforce transformation plans.
In addition to containing sections from the Small Business Administration 50th Anniversary Reauthorization Act of 2003, the Omnibus includes sections that derive from S. 1977, the Small Manufacturers Assistance, Recovery, and Trade (``SMART'') Act, offered by Senator Snowe and original cosponsor Senator George V. Voinovich, introduced on November 25, 2003.
Examples of provisions from the SMART Act contained in the Omnibus are sections that increase manufacturers' access to capital, and a provision that creates a Small Business Manufacturing Task Force, within the SBA,
charged with ensuring that the SBA is properly addressing the particular needs of small manufacturers.
Throughout the hearings and roundtables, the Committee's objectives have been to single out the SBA programs that work well, identify the reasons for their superior performance, and apply those principles to programs that need improvement. The voluminous amount of information that the Committee collected through the hearings and roundtable discussions held this year and in the previous Congress as well as information received directly from small business stakeholders has contributed greatly to achieving that goal and the results are reflected in the bill.
While not all of the provisions of S.1375 are contained in Division K of H.R. 4818, I believe that by providing appropriate authorization levels, updating and improving SBA lending and technical assistance programs, and introducing new initiatives to assist America's 21st Century entrepreneurs, this bill will provide a sound foundation for the agency to begin its next 50 years of even greater service.
I ask unanimous consent that immediately following these remarks an explanatory statement describing the small business provisions of H.R. 4818 be printed in the Congressional Record.
Mr. President, I rise today to introduce the ``Small Manufacturers Assistance, and Trade (SMART) Act,'' which responds to the needs of America's small manufacturers. This bill offers a new emphasis…
Mr. President, I rise today to introduce the ``Small Manufacturers Assistance, and Trade (SMART) Act,'' which responds to the needs of America's small manufacturers. This bill offers a new emphasis on programs and services within the Federal Government that will provide small companies a better opportunity to survive in these challenging times and compete in our global economy. The SMART Act introduces new resources, improves existing programs, and expands those programs that work to serve a larger constituency. It is critical that we revitalize our country's manufacturing base and establish an environment for economic growth and job creation.
Small manufacturers constitute over 98 percent of our Nation's manufacturing enterprises, employ 12 million people, and supply more than 50 percent of the value-added U.S. production. It is a sector we cannot afford to ignore. In addition, no industry has witnessed a more profound erosion of jobs.
The damage manufacturing has sustained is nothing short of alarming. Since July 2000, almost 2.8 million U.S. manufacturing jobs have been eliminated. New England alone lost more than 214,000 jobs between June 1993 through June 2003, with 78 percent of those losses, 166,000 jobs, occurring since January of 2001.
In my home State of Maine, we've been shedding jobs at a startling rate over the past decade--and even more so in the past 2 years. Between July 2000 and June 2003 an astounding 17,300 manufacturing jobs were lost.
The bottom line is that we must bolster our manufacturing industry, especially with the current 6.0 percent unemployment rate in the United States. To ensure that the road to recovery is robust, we have a special obligation to provide the investment to allow small companies to grow. In fact, it has been reported that for every dollar of final manufacturing output, an additional $1.26 is created in other industry sectors such as suppliers of raw materials, marketing, and retail industries.
Looking even more broadly, a healthy manufacturing base is essential to the preservation of our Nation's security and its status as a world power. We must end the trend of becoming increasingly dependent upon other countries for the products we use and rely upon. Now is the crucial time for everyone--industry representatives, Congress, the President, Republicans and Democrats alike--to work together toward the common goal of revitalizing this industry.
As the Chair of the Committee on Small Business, I have been focusing considerable attention on the concerns of small business manufacturers and efforts to aid in their recovery. Last month, I held a field hearing on this critical subject in Lewiston, ME. I invited Grant Aldonas, Under Secretary for International Trade of the Commerce Department, and Pamela Olson, Assistant Secretary for Tax Policy of the Treasury Department, to participate and explored with them ways to strengthen and expand this vital industry. Their testimony and comments confirmed that we cannot delay and must act quickly to support our small manufacturing base.
Additionally, I heard from a number of small businesses in the manufacturing industry. Their testimony confirmed the damage sustained by our country's manufacturing sector, and the sense of urgency that we need to act immediately to assist them. The SMART Act is a vital first step toward helping them do what they do best--create jobs.
The bill I introduce today starts by establishing a strong and influential voice for manufacturers within the Federal Government through the creation of an Assistant Secretary for Manufacturing within the U.S. Department of Commerce. The new Assistant Secretary will be responsible for identifying and addressing the concerns of small manufacturers at the highest level of our Federal Government. Senator Voinovich has introduced S. 1326, which similarly creates an Assistant Secretary for Manufacturing. I support that bill and Senator Voinovich's efforts to assisting our country's manufacturers.
To ensure that the government acts on the needs of manufacturers, the SMART Act creates an Interagency Manufacturing Task Force (IMTF). The mission of the IMTF will be to encourage the Federal departments and agencies to coordinate their efforts by identifying and addressing manufacturing concerns collectively. The IMTF will
be chaired by the Commerce Department's new Assistant Secretary for Manufacturing and will be comprised of representatives from the Federal departments and agencies that directly affect this sector of our economy. In addition, the IMTF will be tasked with the duty of submitting an annual report on their findings and recommendations to the President and the Senate and House Small Business Committees.
In conjunction with this government-wide task force, the SMART Act also continues to improve the Federal infrastructure supporting the industry by establishing a Small Business Manufacturing Task Force (SBMTF) within the Small Business Administration (SBA). The SBA has a wide spectrum of programs and services available to small manufacturers. The mission of the new SBMTF will be to refocus the agency's programs and services to ensure that they respond to the particular needs of small manufacturers while still serving all aspects of the small business community.
Adding to the information gained from the Committee's hearing, we have reviewed the SBA's programs and services that are geared specifically toward manufacturing and international trade. I was alarmed to learn, during this hearing, that small manufacturers were unfamiliar with the SBA programs that can assist them. These findings revealed that the SBA needs to realign its efforts specifically to include manufacturers in the delivery of the agency's program and services.
In order to improve existing SBA small business development programs, the agency needs to take its services beyond the traditional small business enterprise. The SMART Act improves the SBA's entrepreneurial development programs and services so that small manufacturers can grow their business operation, expand their facilities, and purchase new equipment--all of which will result in creating jobs throughout the industry and its supply chain.
Partnerships developed between SBA related organizations and non-SBA related entities will be an additional asset for these producers. The SMART Act directs the SBA to develop partnerships with the Manufacturing Extension Partnership (MEP), community economic development organizations, and the agency's resource partners--such as Small Business Development Centers and SCORE--to create new outreach and training programs for small manufacturers and small businesses in the manufacturing supply chain.
The SMART Act requires SCORE, with its long established expertise in counseling, to extend its reach to small manufacturers and exporters through its online counseling services and its community based offices. The Act also directs SCORE to recruit more counselors with manufacturing and international trade expertise and increase its partnerships with manufacturing and exporting related organizations, which will help increase the marketing capabilities of these small producers and exporters.
I have also learned that small and medium sized companies are often hesitant to engage in the export of their product as a way to grow their small business, because they are often fearful of the many unfamiliar intricacies involved in doing business in a foreign market. Small businesses currently account for almost $300 billion of yearly export sales--nearly one-third of total U.S. exports. However, according to an Administration survey through the SBA's Export Trade Assistance Partnership, approximately 30 percent of non-exporting small businesses are interested in exporting their products and services. These businesses hold the potential to be a major source for even more economic activity and job growth.
The SBA is a pivotal resource in delivering financial and business development tools to businesses seeking to export. The SMART Act improves the SBA's international trade and exporting programs to assist small businesses and manufacturers expand into the export market and play an even greater role in the balance of U.S. trade.
The SMART Act also requires the SBA to establish annual goals that are linked to its trade promotion activities, and to develop programs that will help small businesses compete against imports. This objective will be more easily obtained by incrementally increasing the number of SBA representatives at the U.S. Export Assistance Centers (USEACs) over the next 3 years. To ensure that all States have the same services available, the SBA Office of International Trade will have at least one financial specialist dedicated to the international loan programs and providing oversight of trade financing issues.
The SBA's financing programs have helped American small businesses create and retain jobs, even as other sources of financing have become more scarce. This bill provides improvements to the SBA's 7(a), 504, and Surety Bond programs.
From Fiscal Year 1999 through Fiscal Year 2002, the 7(a) loan program helped small businesses create more than 1.3 million new jobs by making $37.7 billion in financing available to more than 182,000 small businesses. This bill increases the maximum size of 7(a) loans for small exporters from $2 million to $2.6 million by increasing the maximum amount guaranteed by the SBA from $1 million to $1.3 million.
During that same period, the 504 loan program provided more than 20,000 new loans to small businesses, allowing those businesses to create or retain almost 450,000 jobs. The SMART Act increases 504 loan sizes in two ways. First, the bill increases the maximum loan size for manufacturing projects by increasing the SBA's maximum guarantee, which is 40 percent of the total loan size, from $1 million to $4 million. Second, for loans to exporters, the bill increases the maximum loan size from $3.25 million to $5 million by increasing the SBA's maximum guarantee from $1.3 million to $2 million.
Finally, the bill clarifies that under the SBA's Surety Bond Guarantee Program, the SBA may guarantee bonds for specific contracts of $2 million or less, even if the total range of affiliated contracts may exceed $2 million.
These SBA financing programs have helped to create millions of jobs in America, and manufacturers and exporters have been an important part of that success. This bill will increase small companies' and exporters' ability to obtain vital capital that will help them compete in a very difficult international environment and enable them to create more jobs for American workers.
I am drawing these provisions from another bill I have authored, the Small Business Administration 50th Anniversary Reauthorization Act of 203 (S. 1375), which the Committee and the Senate unanimously approved earlier this year. While we are waiting for the House of Representatives to pass an SBA reauthorization bill, I believe that given the importance of these financing provisions, they must be included in this bill as well to increase their chance of being signed into law.
Because Federal assistance for small manufacturers should extend beyond the SBA, the SMART Act will also establish a new Assistant United States Trade Representatives for Small Business within the Office of the United States Trade Representatives (USTR). This office will be tasked with focusing on small businesses', including small manufacturers, concerns in trade negotiations and promoting their exports.
There are currently 21 Assistant USTRs covering issues from services to telecommunications to labor. While small businesses face many of the same issues that serve as barriers to trade as many of the largest multinational corporations, they do not have the same resources to overcome these barriers, thus blocking them from reaping the benefits of international trade. In particular, small businesses do not have the resources necessary to settle private trade disputes in a timely and cost effective fashion, meet physical presence requirements in other countries, conform to complex customs procedures, or meet off-set exclusions in government procurement. By establishing a new Assistant U.S. Trade Representative, we will ensure that the views and concerns of small businesses will have an appropriate seat at the negotiating table and help secure the competitiveness of our small exporters abroad.
The Small Manufacturers Assistance, Recovery, and Trade Act answers the call for help that I have heard too often of late from small manufacturers in this country. These improvements to existing resources within the Federal
government will give these companies a better opportunity to survive in these challenging times and compete in the global economy.
This bill is a critical starting point to revitalize our country's manufacturing base and create an environment that allows them to grow and create jobs again. We must help these businesses access the global marketplace through expanded exporting opportunities and assistance. I intend to work with all groups and interested parties that are committed to improving and passing this bill. There are still many needs that face our Nation's manufacturers--and this is just the beginning.
I look forward to working with my colleagues in the Senate to ensure that the provisions of this bill are enacted so that these companies can continue to grow and reach their full potential.
Mr. President, I ask unanimous consent that the text of the bill and a section-by-section analysis be printed in the Record.
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Mr. President, I rise today to introduce the ``Small Manufacturers Assistance, and Trade (SMART) Act,'' which responds to the needs of America's small manufacturers. This bill offers a new emphasis…
Mr. President, I rise today to introduce the ``Small Manufacturers Assistance, and Trade (SMART) Act,'' which responds to the needs of America's small manufacturers. This bill offers a new emphasis on programs and services within the Federal Government that will provide small companies a better opportunity to survive in these challenging times and compete in our global economy. The SMART Act introduces new resources, improves existing programs, and expands those programs that work to serve a larger constituency. It is critical that we revitalize our country's manufacturing base and establish an environment for economic growth and job creation.
Small manufacturers constitute over 98 percent of our Nation's manufacturing enterprises, employ 12 million people, and supply more than 50 percent of the value-added U.S. production. It is a sector we cannot afford to ignore. In addition, no industry has witnessed a more profound erosion of jobs.
The damage manufacturing has sustained is nothing short of alarming. Since July 2000, almost 2.8 million U.S. manufacturing jobs have been eliminated. New England alone lost more than 214,000 jobs between June 1993 through June 2003, with 78 percent of those losses, 166,000 jobs, occurring since January of 2001.
In my home State of Maine, we've been shedding jobs at a startling rate over the past decade--and even more so in the past 2 years. Between July 2000 and June 2003 an astounding 17,300 manufacturing jobs were lost.
The bottom line is that we must bolster our manufacturing industry, especially with the current 6.0 percent unemployment rate in the United States. To ensure that the road to recovery is robust, we have a special obligation to provide the investment to allow small companies to grow. In fact, it has been reported that for every dollar of final manufacturing output, an additional $1.26 is created in other industry sectors such as suppliers of raw materials, marketing, and retail industries.
Looking even more broadly, a healthy manufacturing base is essential to the preservation of our Nation's security and its status as a world power. We must end the trend of becoming increasingly dependent upon other countries for the products we use and rely upon. Now is the crucial time for everyone--industry representatives, Congress, the President, Republicans and Democrats alike--to work together toward the common goal of revitalizing this industry.
As the Chair of the Committee on Small Business, I have been focusing considerable attention on the concerns of small business manufacturers and efforts to aid in their recovery. Last month, I held a field hearing on this critical subject in Lewiston, ME. I invited Grant Aldonas, Under Secretary for International Trade of the Commerce Department, and Pamela Olson, Assistant Secretary for Tax Policy of the Treasury Department, to participate and explored with them ways to strengthen and expand this vital industry. Their testimony and comments confirmed that we cannot delay and must act quickly to support our small manufacturing base.
Additionally, I heard from a number of small businesses in the manufacturing industry. Their testimony confirmed the damage sustained by our country's manufacturing sector, and the sense of urgency that we need to act immediately to assist them. The SMART Act is a vital first step toward helping them do what they do best--create jobs.
The bill I introduce today starts by establishing a strong and influential voice for manufacturers within the Federal Government through the creation of an Assistant Secretary for Manufacturing within the U.S. Department of Commerce. The new Assistant Secretary will be responsible for identifying and addressing the concerns of small manufacturers at the highest level of our Federal Government. Senator Voinovich has introduced S. 1326, which similarly creates an Assistant Secretary for Manufacturing. I support that bill and Senator Voinovich's efforts to assisting our country's manufacturers.
To ensure that the government acts on the needs of manufacturers, the SMART Act creates an Interagency Manufacturing Task Force (IMTF). The mission of the IMTF will be to encourage the Federal departments and agencies to coordinate their efforts by identifying and addressing manufacturing concerns collectively. The IMTF will
be chaired by the Commerce Department's new Assistant Secretary for Manufacturing and will be comprised of representatives from the Federal departments and agencies that directly affect this sector of our economy. In addition, the IMTF will be tasked with the duty of submitting an annual report on their findings and recommendations to the President and the Senate and House Small Business Committees.
In conjunction with this government-wide task force, the SMART Act also continues to improve the Federal infrastructure supporting the industry by establishing a Small Business Manufacturing Task Force (SBMTF) within the Small Business Administration (SBA). The SBA has a wide spectrum of programs and services available to small manufacturers. The mission of the new SBMTF will be to refocus the agency's programs and services to ensure that they respond to the particular needs of small manufacturers while still serving all aspects of the small business community.
Adding to the information gained from the Committee's hearing, we have reviewed the SBA's programs and services that are geared specifically toward manufacturing and international trade. I was alarmed to learn, during this hearing, that small manufacturers were unfamiliar with the SBA programs that can assist them. These findings revealed that the SBA needs to realign its efforts specifically to include manufacturers in the delivery of the agency's program and services.
In order to improve existing SBA small business development programs, the agency needs to take its services beyond the traditional small business enterprise. The SMART Act improves the SBA's entrepreneurial development programs and services so that small manufacturers can grow their business operation, expand their facilities, and purchase new equipment--all of which will result in creating jobs throughout the industry and its supply chain.
Partnerships developed between SBA related organizations and non-SBA related entities will be an additional asset for these producers. The SMART Act directs the SBA to develop partnerships with the Manufacturing Extension Partnership (MEP), community economic development organizations, and the agency's resource partners--such as Small Business Development Centers and SCORE--to create new outreach and training programs for small manufacturers and small businesses in the manufacturing supply chain.
The SMART Act requires SCORE, with its long established expertise in counseling, to extend its reach to small manufacturers and exporters through its online counseling services and its community based offices. The Act also directs SCORE to recruit more counselors with manufacturing and international trade expertise and increase its partnerships with manufacturing and exporting related organizations, which will help increase the marketing capabilities of these small producers and exporters.
I have also learned that small and medium sized companies are often hesitant to engage in the export of their product as a way to grow their small business, because they are often fearful of the many unfamiliar intricacies involved in doing business in a foreign market. Small businesses currently account for almost $300 billion of yearly export sales--nearly one-third of total U.S. exports. However, according to an Administration survey through the SBA's Export Trade Assistance Partnership, approximately 30 percent of non-exporting small businesses are interested in exporting their products and services. These businesses hold the potential to be a major source for even more economic activity and job growth.
The SBA is a pivotal resource in delivering financial and business development tools to businesses seeking to export. The SMART Act improves the SBA's international trade and exporting programs to assist small businesses and manufacturers expand into the export market and play an even greater role in the balance of U.S. trade.
The SMART Act also requires the SBA to establish annual goals that are linked to its trade promotion activities, and to develop programs that will help small businesses compete against imports. This objective will be more easily obtained by incrementally increasing the number of SBA representatives at the U.S. Export Assistance Centers (USEACs) over the next 3 years. To ensure that all States have the same services available, the SBA Office of International Trade will have at least one financial specialist dedicated to the international loan programs and providing oversight of trade financing issues.
The SBA's financing programs have helped American small businesses create and retain jobs, even as other sources of financing have become more scarce. This bill provides improvements to the SBA's 7(a), 504, and Surety Bond programs.
From Fiscal Year 1999 through Fiscal Year 2002, the 7(a) loan program helped small businesses create more than 1.3 million new jobs by making $37.7 billion in financing available to more than 182,000 small businesses. This bill increases the maximum size of 7(a) loans for small exporters from $2 million to $2.6 million by increasing the maximum amount guaranteed by the SBA from $1 million to $1.3 million.
During that same period, the 504 loan program provided more than 20,000 new loans to small businesses, allowing those businesses to create or retain almost 450,000 jobs. The SMART Act increases 504 loan sizes in two ways. First, the bill increases the maximum loan size for manufacturing projects by increasing the SBA's maximum guarantee, which is 40 percent of the total loan size, from $1 million to $4 million. Second, for loans to exporters, the bill increases the maximum loan size from $3.25 million to $5 million by increasing the SBA's maximum guarantee from $1.3 million to $2 million.
Finally, the bill clarifies that under the SBA's Surety Bond Guarantee Program, the SBA may guarantee bonds for specific contracts of $2 million or less, even if the total range of affiliated contracts may exceed $2 million.
These SBA financing programs have helped to create millions of jobs in America, and manufacturers and exporters have been an important part of that success. This bill will increase small companies' and exporters' ability to obtain vital capital that will help them compete in a very difficult international environment and enable them to create more jobs for American workers.
I am drawing these provisions from another bill I have authored, the Small Business Administration 50th Anniversary Reauthorization Act of 203 (S. 1375), which the Committee and the Senate unanimously approved earlier this year. While we are waiting for the House of Representatives to pass an SBA reauthorization bill, I believe that given the importance of these financing provisions, they must be included in this bill as well to increase their chance of being signed into law.
Because Federal assistance for small manufacturers should extend beyond the SBA, the SMART Act will also establish a new Assistant United States Trade Representatives for Small Business within the Office of the United States Trade Representatives (USTR). This office will be tasked with focusing on small businesses', including small manufacturers, concerns in trade negotiations and promoting their exports.
There are currently 21 Assistant USTRs covering issues from services to telecommunications to labor. While small businesses face many of the same issues that serve as barriers to trade as many of the largest multinational corporations, they do not have the same resources to overcome these barriers, thus blocking them from reaping the benefits of international trade. In particular, small businesses do not have the resources necessary to settle private trade disputes in a timely and cost effective fashion, meet physical presence requirements in other countries, conform to complex customs procedures, or meet off-set exclusions in government procurement. By establishing a new Assistant U.S. Trade Representative, we will ensure that the views and concerns of small businesses will have an appropriate seat at the negotiating table and help secure the competitiveness of our small exporters abroad.
The Small Manufacturers Assistance, Recovery, and Trade Act answers the call for help that I have heard too often of late from small manufacturers in this country. These improvements to existing resources within the Federal
government will give these companies a better opportunity to survive in these challenging times and compete in the global economy.
This bill is a critical starting point to revitalize our country's manufacturing base and create an environment that allows them to grow and create jobs again. We must help these businesses access the global marketplace through expanded exporting opportunities and assistance. I intend to work with all groups and interested parties that are committed to improving and passing this bill. There are still many needs that face our Nation's manufacturers--and this is just the beginning.
I look forward to working with my colleagues in the Senate to ensure that the provisions of this bill are enacted so that these companies can continue to grow and reach their full potential.
Mr. President, I ask unanimous consent that the text of the bill and a section-by-section analysis be printed in the Record.
Mr. President, as the world's largest economy, I believe the United States must have the fairest, most transparent and efficient financial markets in the world. Our financial services companies must…
Mr. President, as the world's largest economy, I believe the United States must have the fairest, most transparent and efficient financial markets in the world. Our financial services companies must live up to the highest standards of accountability. This is critical to ensure that the United States remains strong, competitive and safe in the global economy. Unfortunately, recent reports of late trading and market timing have brought into question whether mutual fund companies have lived up to the highest standards of accountability. They have also shown that the Bush Administration failed to provide effective oversight and examination of mutual fund companies, while poorly enforcing our securities laws. The inaction of the Bush Administration has dangerously eroded the trust and confidence of the American people in mutual funds and may have allowed mutual fund companies and big investors to engage in fraudulent behavior against individuals and pension funds.
New York and Massachusetts regulators have uncovered a scheme in which some of America's top mutual fund companies let big investors profit illegally at the expense of small investors with so-called ``late trades'' and ``market timing.'' The scam appears to be widespread. Today, roughly half of all American households own mutual funds either directly or through a retirement account or pension fund. It's been reported that as much as one quarter of mutual fund companies may be involved in late trading and market timing and that such schemes may cost investors as much as $5 billion annually.
In a late trade, big investors purchase mutual fund shares after the close of the market but at the closing price, allowing them to take advantage of late-breaking financial news. A mutual fund manager might allow a big investor to buy shares in a technology fund at the 4 p.m. close price after learning at 5 p.m. that a major technology company has reported unexpectedly strong earnings. The investor is almost guaranteed a profit when the market opens the following day and share prices climb. In return for this illegal access, the big investor might pledge to continue to invest in the fund.
Market timing exploits the unique way that mutual funds set their prices. While it is not illegal, most mutual fund companies assure investors that they discourage such practices and that they are working to prevent fund timing. Under a market timing trade, big investors trade in and out of certain mutual funds in order to exploit the inefficient way mutual funds price their shares and ensure a profit.
In 2002, individuals who invested in mutual funds paid approximately $70 billion in advisory and management
fees, an average of more than $700 per investor. There is a significant disparity between the rate of advisory fees charged to mutual fund investors and the rate paid by institutional investors, even though they provide the similar services. Currently, mutual fund managers are under no obligation to negotiate advisory and management fees that are in the best interest of their shareholders. In some instances, mutual fund managers has a financial relationship with the contractor which receives a no-bid contract from the same mutual fund.
In a September 2003 complaint, New York Attorney General Spitzer alleged that Canary Capital Partners, a New Jersey hedge fund, engaged in illegal and unethical trading in mutual funds, such as late trading and market timing. After the New York State complaint, the SEC ordered a preliminary investigation, which found that half of the 88 mutual fund companies and brokerage firms had arrangements to make market- timing trades. These arrangements occurred even though about half of the fund companies have policies specifically barring market timing. Other investigations of mutual fund companies have begun, and it appears as though many mutual fund companies have been involved directly or indirectly in late trading and market-timing schemes.
I am very concerned that the actions of the SEC in response to the State investigations of late trading and market timing have been inadequate and show a bias in favor of mutual fund companies at the expense of small investors.
For example, earlier this year the SEC conducted a four-month investigation of Putnam Investments' record keeping, internal controls, and ability to comply with Federal securities laws. During that review, a Putnam employee informed the SEC that the company had failed to stop improper market-timing trades. Despite the tip, SEC examiners did not identify any problems with market timing in its report on Putnam. The Putnam employee, after being rejected by the SEC, brought the same information to the Massachusetts Secretary of State's office, which began an investigation. Only after the Commonwealth of Massachusetts began an investigation did the SEC begin its own investigation of market timing at Putnam. In October, both the Commonwealth of Massachusetts and the SEC charged Putnam with securities fraud, only months after the SEC gave Putnam a clean bill of health. Only a few weeks later, Putnam reached a partial settlement of the securities fraud charges with the SEC which did not include the Commonwealth of Massachusetts. Under the settlement, Putnam agrees to make restitution only for losses to investors attributable to excessive short-term and market-timing trading by its employees and to make structural reforms. Under the agreement, Putnam neither admitted nor denied wrongdoing and the SEC still has not investigated whether outside investors were engaged in market-timing activities. New York Attorney General Eliot Spitzer said that Putnam's agreement with the SEC does not address crucial issues involving restitution to fund holders, fees and penalties. William Galvin, the Massachusetts Secretary of State said that the agreement clearly demonstrates that the SEC is more interested in protecting the mutual fund industry than the average investor.
These actions by the SEC highlight a fundamental problem in the Bush Administration's hands-off approach to regulating financial markets and the danger it poses to small investors and the national economy.
Compounding this danger and lack of responsible leadership, President Bush has repeatedly nominated individuals to important economic positions notable for their corporate sympathies. The President selected a lobbyist for financial deregulation as the chief regulator of the federal mortgage lender Freddie Mac. His first SEC chairman was an accounting industry who was forced to resign in a storm of public outrage over his lenient treatment of his former business.
Even after the accounting scandals that felled Enron and WorldCom, it was last year's Democratic Senate that pushed to enact an historic corporate reform law and the President who joined the effort only once its passage was all but ensured. It was state attorneys general who exposed dubious conflicts of interest at brokerage houses. And when energy companies gauged ratepayers in the West through questionable trades, the Administration sat on its hands for months.
The message from the White House to the regulatory agencies, in actions if not words, is don't ask and don't tell when it comes to protecting investors and consumers.
Justice demands that we fully prosecute Wall Street insiders that steal from Americans saving for retirement, education or simply a brighter future. And we can only hope to revive our economy if we restore investor confidence in the markets so that capital flows to business growth and job creation.
To stop the erosion of trust in our financial markets and to help restore the American investor's faith in the mutual fund industry, I am introducing the Mutual Fund Investor Protection Act to update federal securities laws to curb late-trading and market-timing abuses and institute new limits on mutual fund fees paid by investors.
The actions by the SEC show that it is incapable of protecting investors from securities fraud by mutual fund companies and will not prosecute this type of fraud to the full extent of the law. Therefore, we must take the day-to-day oversight of mutual funds away from the SEC and develop a new Mutual Fund Oversight Board to provide oversight, examination and enforcement of mutual funds. This new board will be similar to the Public Company Accounting Oversight Board developed in the Sarbanes-Oxley Act. It will be charged with identifying potential problems in the mutual fund industry and ensuring that fund boards are actively addressing these problems--before they spread. It would promulgate guidance regarding current regulatory issues and best practices regarding how to deal with them, and it would examine mutual funds to ensure that they are taking necessary steps to protect shareholders. The Board itself would determine how to provide an adequate and reliable source of funding for its investigations.
I believe that every investor has the right to know how much their mutual fund takes away from their investment to pay for advisory, management, and investment service fees. Under this legislation, each investor will receive in their statement a regular accounting as to what types of fees they are paying to invest in their mutual fund. This will help investors shop around and find the mutual funds that have the lowest fees. Mutual funds will have to respond to the changing marketplace and only charge fees that are absolutely necessary to the management of the fund. Also, this legislation requires mutual fund managers to negotiate fee contracts that are reasonable and in their investors' best interest and to report on any significant or material business or professional relationship with companies that the mutual fund provides contracts. Finally, the bill requires each mutual fund to hire a compliance officer to ensure that the mutual fund complies with all relevant laws and makes sure that they provide any information on scams to the independent mutual fund directors to stop abuse. Taken together, these provisions will help investors by making it much more difficult for mutual funds to charge unreasonable and unnecessary fees.
Today, mutual funds are valued once a day, called the Net Asset Value or NAV, usually at 4 p.m. EST, when the New York market closes. The bill will require that all mutual fund companies receive an order prior to the time the fund sets a share price or NAV for an investor to receive that day's price. This will make it much more difficult for big investors to use brokers to send in trades after the 4 p.m. deadline.
We should include late-trading laws as an offense under the Racketeer Influenced and Corrupt Organization (RICO) provisions of the criminal code. First used to prosecute the Mob, RICO should now be used to stop and punish organized crime on Wall Street. This will help limit mutual fund employees and big investors from attempting to defraud small investors. It will also help investors who lose money due to late- trading schemes to recover treble damages, costs and attorneys' fees.
The SEC recently found that many mutual fund companies and brokerage
firms had arrangements with big investors allowing them to make market- timing trades even though these fund companies have policies specifically barring market timing. My legislation bars mutual fund employees from engaging in market timing trades. It requires each mutual fund prospectus to explicitly disclose market-timing policies and procedures to stop abuse. Then, it increases penalties for mutual funds which do not follow their own policies and procedures to limit abuse.
In order to help stop mutual fund abuse, this legislation increases the penalties and jail time for current securities laws including: defrauding the offer or sale of securities, failing to keep current and appropriate records of brokerage transactions, and not selling or redeeming fund shares at a price based on current Net Asset Value (NAV). These changes will make criminals think twice before committing violations of securities laws. The proceeds of the additional fines collected by this legislation will be put into a fund to assist the victims of their crimes.
Today, individual mutual funds are effectively dominated by their advisers. My legislation strengthens the influence of independent directors on fund boards by requiring that independent directors comprise at least three-quarters of the board. It will also require mutual funds to have an independent chairman with the authority and ability to demand and receive all information from the fund advisory and management companies. This will increase the voice investors have in fund management and limit mutual fund abuses.
By developing a new structure to provide appropriate oversight and enforcement mechanisms to fight abuse in the mutual fund industry, this legislation restores the confidence of investors in mutual funds. Ultimately, investor confidence will increase investment and enhance economic growth. I ask all my colleagues to support this legislation.
Mr. President, I rise today to join Senators Hollings, Collins, Specter, Jeffords and Lautenberg in introducing ``ARRIVE 21,'' the American Railroad Revitalization, Investment, and Enhancement Act of…
Mr. President, I rise today to join Senators Hollings, Collins, Specter, Jeffords and Lautenberg in introducing ``ARRIVE 21,'' the American Railroad Revitalization, Investment, and Enhancement Act of the 21st Century. ARRIVE 21 is a comprehensive proposal that creates a new public/private partnership to fund rail infrastructure development, reauthorizes and improves Amtrak, and enhances Federal and State rail policy and planning efforts.
As our Nation faces a mobility crisis of staggering proportions, with freight movements expected to double and our highways and airways already overburdened with congestion, ARRIVE 21 will give our States a new and powerful tool to unlock the potential of intercity passenger rail, bringing high-speed rail to viable corridors across the country while providing capital funding for freight rail projects that deliver public benefits. Today's passenger and freight railroads are already essential components of our surface transportation system and I believe that greater use of rail offers one of the best opportunities to augment the capacity of our existing transportation network, while benefiting the environment and reducing our dependency on foreign oil.
Historically, railroads have been built, maintained and operated outside of the publicly funded programs that finance our other transportation modes, relying almost exclusively on the private sector to fund their infrastructure. However, today's railroads face restricted access to capital and capacity constraints that limit service quality and expansion, all the while facing ever-growing modal competition financed by federally funded trust funds. If rail is to remain viable or increase its share of the intercity passenger and freight markets--necessary developments if we are to reach other transportation and public policy goals including highway infrastructure preservation, highway and air congestion relief, energy efficiency, environmental stewardship and smart growth development--then the pubic sector, through arm's length voluntary partnerships with private railroads, must play a more active role in financing the development of freight and passenger rail infrastructure, as it has with all other modes.
Today, America's freight railroads carry 16 percent of the nation's freight by tonnage and intercity passenger rail carriers roughly 23 million passenger annually. But, the ability of our passenger and freight rail systems to generate the sufficient investment capital needed to maintain this market share, or expand it to handle the expected increases in passenger and freight traffic over the next 20 years, is limited or in jeopardy. According to the America Association of State Highway and Transportation Officials' (ASSHTO) ``Freight Rail Bottom Line Report,'' the nation's freight railroads will need an additional $2.65 billion of public sector annual capital investment over the next 20 years above and beyond what they can finance themselves just to maintain their current share of the freight tonnage.
Without this additional investment, freight traffic is likely to shift from rail to our highways, resulting in an additional 450 million tons of freight and 15 billion truck VMT (Vehicle Miles Traveled) on our roads and $162 billion in increased shipper costs, $238 billion in increased highway user costs, and approximately $20 billion in direct additional highway infrastructure costs. Alternatively, ASSHTO has concluded that with a public investment of $4 billion annually in freight rail infrastructure over the next 20 years, freight rail's tonnage share would increase 1 percentage point to 17 percent. This shift would thereby relieve our highways of an estimated 600 million tons of freight traffic and 25 billion VMT, while saving shippers $239 billion and highways users $397 billion, and reducing direct highway infrastructure costs by $17 billion.
For intercity passenger rail, ASSHTO similarly concludes that roughly $3 billion in annual public sector investment over the next 20 years is needed to expand intercity passenger rail services and advance the many viable high speed rail corridors that could reduce highway and aviation congestion. The Texas Transportation Institute's ``2003 Urban Mobility Report,'' which looks at transportation mobility in 75 cities of varying sizes, concludes that the average annual transportation delay time per person climbed from ``16 hours in 1982 to 60 hours in 2001'' due to the congestion of our surface system.
High-quality and high-speed intercity passenger service, especially in intercity corridors of 500 miles or less where rail can offer competitive trip times, offers a tremendous opportunity to relieve such congestion by shifting travelers who current drive and fly onto trains. Today, roughly 80 percent off all trips of more than 100 miles are less than 500 miles in length. Successful rail corridors in California, the Pacific Northwest, and in the Northeast have shown that rail can be viable option for travelers in such markets, capturing significant market share and in same cases becoming the dominate mode when frequent and high-quality service
is offered. Where intercity passenger rail is successful, congestion in our airports and on our highways is reduced, smart development is induced, jobs are created and citizens' safety and quality of life are improved.
Theses facts lead to the obvious conclusion that leveraging modest public investment in our rail system will reap benefits to our entire surface transportation system and to our Nation as a whole. In my State of Delaware, we have clearly seen the value that high-quality passenger and freight rail service brings and we have made significant investments to upgrade both Amtrak facilities and infrastructure and enhance freight capacity for the railroads that serve Delaware industries. But despite of all the good reasons to invest in our railroad infrastructure, Delaware and other States are limited in what they can do on there own without the benefit of the financing partnership that our Federal Government provides the State for all other transportation investments. ARRIVE 21 is designed to change that.
ARRIVE 21 will empower our States to make rational investments in our rail system when such investments provide significant pubic benefits. Through the creation of the Rail Infrastructure Finance Corporation (RIFCO) a non-profit, non-Federal, congressionally-chartered corporation that can issue $30 billion in tax-credit bonds over 6 years, States will have a new partner to assist them in undertaking rail capital projects. RIFCO will award, using a portion of the proceeds from the bond issuance, discretionary capital matching grants to States and Amtrak for high-speed rail and intercity passenger rail projects and State formula matching grants for freight capital projects. Prior to issuing grants, a portion of the bond proceeds will be deposited in a secure and continually monitored repayment fund managed by the RIFCO investment trust to retire the debt over the life of the bonds.
Passenger and freight rail projects eligible for funding through RIFCO include planning and environmental review, rail line rehabilitation, upgrades and development, safety and security projects, passenger equipment acquisition, station improvements, and intermodal facilities development. In order to receive grants, States must prepare a State rail plan and provide a 20 percent non-Federal match to RIFCO, thereby replicating the cost sharing relationship our States currently have for investments in other modes.
ARRIVE 21 will promote jobs and economic growth through the rehabilitation and expansion of rail infrastructure, the manufacture and procurement of new rail equipment and the enhancement of mobility and development in and around or cities and towns. Our bill provides a total $42 billion investment in U.S. rail infrastructure and service to expand high-speed passenger rail in congested corridors, strengthen Amtrak, and improve freight mobility. Such investment will revitalize the U.S. rail supply industry and create thousands of jobs. According to U.S. Transportation Secretary Mineta, every $1 billion invested in transportation infrastructure creates roughly 47,500 jobs. That means ARRIVE 21 stands to create roughly 2 million jobs, if enacted.
ARRIVE 21 reauthorizes and reforms Amtrak. Designed to improve upon Amtrak's current congressional and State funding processes, our bill authorizes approximately $1.5 billion annually for 6 years to Amtrak for the basic capital and operating needs required to run and maintain the current system. In addition to these funds, the States and Amtrak can pursue major capital improvements and equipment acquisition through RIFCO, with reductions in Amtrak's capital authorizations for projects funded through RIFCO capital grants. Through this process, the amount needed for annual Amtrak appropriation for capital will be reduced over the life of the reauthorization, as RIFCO begins to finance a growing share of Amtrak's capital needs. As is the case today, operating costs on long distance trains will be covered by Amtrak's annual appropriation, while States will share the costs with Amtrak for operations of short distance corridors.
For such shot distance corridors, ARRIVE 21 infuse fairness into the current system by requiring parity between Amtrak and all States for cost sharing, putting an end to disparate treatment among the States that contract with Amtrak to provide corridor service. Furthermore, it authorizes a study of new methodologies to determine Amtrak routes and services while defining the national passenger rail system based on existing service and high-speed rail corridors. ARRIVE 21 also requires a whole host of new reforms including accounting transparency measures, the establishment of a quarterly grant process for Amtrak through the U.S. Department of Transportation to ensure accountability, and the creation of new service metrics that will improve the monitoring and quantification of Amtrak service performance and quality.
ARRIVE 21 helps to coordinate rail-planning efforts across the U.S. at the national and State level and increases the Federal Railroad Administration's advocacy role in promoting a safe, secure, efficient, environmentally sound rail transportation system nationwide. The bill directs the Federal Government to develop a national rail plan in coordination with State rail plans and creates a rail cooperative research program through the National Academies of Sciences. It also authorizes additional funds for planning of high-speed rail projects through the U.S. Secretary of Transportation and addresses rail safety needs by authorizing funding for emergency passenger safety improvement projects. In light of the security risks facing our railroads, ARRIVE 21 authorizes $515 million in 2004 for rail security threat assessments and grants through the Department of Homeland Security.
In total, ARRIVE 21 provides the needed funding for the more than $5 billion annual shortfall in U.S. rail infrastructure investment cited by AASHTO Bottom Line Report without involving the Highway Trust Fund or sapping funds away from other important transportation priorities. This bill will provide our States and the Nation with a fiscally responsible and innovative opportunity to enhance our entire transportation system. We owe it to the American people to support this bill and move towards the type of high-quality, high-speed intercity passenger rail service that Americans desire and deserve, while meeting the ever-growing demands that trade and our economy are placing on our freight system. I ask my colleagues to join me in supporting ARRIVE 21.
Mr. President, I rise today to introduce the Mexican Agricultural Trade Compliance Act. This bill directs the U.S. Trade Representative to retaliate against Mexico over that country's de facto…
Mr. President, I rise today to introduce the Mexican Agricultural Trade Compliance Act. This bill directs the U.S. Trade Representative to retaliate against Mexico over that country's de facto prohibition on the importation of U.S.-produced high fructose corn syrup.
I introduce this bill reluctantly. For months I have made it clear, through letters, floor statements, a hearing, and a trade roundtable, that if the Mexican Congress did not lift its illegal 20 percent tax on soft drinks containing high fructose corn syrup, I would be forced to consider introducing retaliatory legislation, such as this ``tequila tariff'' which also covers other agricultural products.
We're at the end of our legislative session and there has been no action by the Mexican Congress. So, I'm faced with no alternative but to introduce this bill.
Let me explain how we got to where we are today. Mexico was formerly the largest export market for U.S.-produced high fructose corn syrup. But since 1997, Mexico has engaged in a concerted effort to restrict U.S. imports of this product. Throughout this time, Mexico has consistently violated its NAFTA and WTO commitments.
Let me give you a short history of Mexico's unjustified actions. In February 1997, Mexico initiated an antidumping investigation of U.S. high fructose corn syrup, followed by the imposition of an antidumping order the following year. The United States challenged Mexico's antidumping order under the NAFTA. On two different occasions, NAFTA panels determined that Mexico's actions violated its NAFTA obligations.
The United States also challenged Mexico's antidumping order at the Wortd Trade Organization. On two separate occasions, the Dispute Settlement Body of the WTO held that Mexico's actions violated its international trade commitments.
But Mexico continued to ignore its NAFTA and WTO obligations. In fact, Mexico went one step further and in effect threw gasoline onto the fire. On January 1, 2002, in a transparent attempt to evade the NAFTA and WTO determinations against it, Mexico imposed a 20 percent tax on soft drinks containing high fructose corn syrup. The intent and effect of this tax was to continue Mexico's antidumping order on U.S. produced high fructose corn syrup by other means.
In April 2002, with its tax now in place, and in a continuous event with the imposition of this tax, Mexico lifted its antidumping order on high fructose corn syrup. These actions enabled Mexico to make the disingenuous claim that it had come into compliance with the findings adopted by the NAFTA and the WTO regarding its antidumping order.
The effects of the import restrictions of Mexico's antidumping order continue, with even more egregious results. Because of Mexico's tax, U.S. exports of high fructose corn syrup to Mexico are now at almost zero levels.
This is an extraordinary situation. Mexico lost under the NAFTA, and it lost at the WTO commitments, Mexico responded by imposing a de facto ban on imports of U.S. high fructose corn syrup. Mexico is not only violating its international trade commitments, but also causing significant harm for Iowa's corn farmers. Iowa's producers of high fructose corn syrup are suffering as well. I know of no other U.S. agricultural product that has been shut out of its largest export market for so long.
The United States has worked diligently, and patiently with Mexico on this issue. U.S. Trade Representative Robert Zoellick and Ambassador Allen Johnson, our Chief Agricultural Negotiator, have put in countless hours trying to convince Mexico to come into compliance with its trade obligations regarding high fructose corn syrup. But still, the tax remains in place. My colleagues on both sides of the aisle, and
in both the Senate and the House, have repeatedly contacted Mexican officials reminding them of Mexico's trade commitments with regard to this issue. But still, the tax remains in place.
I too have worked hard, since the beginning, to try to convince Mexico to lift its de facto ban on the sale of U.S.-produced high fructose corn syrup. As I have mentioned, I've written letters to Mexican officials, delivered floor speeches, conducted a Finance Committee hearing, and held an agricultural roundtable, all in an effort to convince Mexico to lift its de facto ban on imports of U.S. high fructose corn syrup. During a hearing of the Finance Committee on September 23, I stated clearly that if the Mexican tax on soft drinks containing high fructose corn syrup was not lifted--and soon--I would be forced to consider introducing retaliatory legislation. But still, the tax remains in place.
So now, at the end of our legislative session, I see no alternative but to introduce the Mexican Agricultural Trade Compliance Act.
The Mexican Agricultural Trade Compliance Act establishes that the Government of Mexico has engaged in a pattern of activity that has continuously denied the rights of U.S. exporters of high fructose corn syrup under existing trade agreements. Further, the denial of these rights is unjustifiable and burdens or restricts U.S. commerce. Therefore, Mexico's actions meet the statutory criteria under section 301 of the Trade Act of 1974 for retaliatory action.
The Mexican Agricultural Trade Compliance Act requires the U.S. Trade Representative to retaliate, pursuant to section 301, against imports from Mexico within 60 days of enactment of the Act. However, the U.S. Trade Representative shall not take such action if he certifies, within 30 days after enactment of the Act, that Mexico has eliminated its tax on soft drinks containing high fructose corn syrup and is according the U.S. high fructose corn syrup industry the benefits of all applicable trade agreements.
I fully hope that prior to the return of the U.S. Senate in January, the Mexican Congress will act rationally and bring Mexico into compliance with its international trade obligations regarding high fructose corn syrup. If it does not, I'll work hard to advance the Mexican Agricultural Trade Compliance Act through the Senate. Given the large number of unjustified barriers imposed by Mexico over the past months against imports of U.S. agricultural products, Mexico has not been earning goodwill with Members of the Senate. I expect that my legislation will receive broad support.
I also intend to work with the U.S. Trade Representative to designate Mexican products upon which retaliatory duties will be imposed. The products on this list will consist first and foremost of Mexican agricultural products that are prospering on account of their access to the U.S. market. These Mexican products will likely include bottled tequila, tomatoes, bell peppers, avocados, limes, asparagus, mangos, papayas, watermelons, honey, pecans, and shrimp and prawns. The total amount of duties imposed on these Mexican products will equal the lost sales being experienced by U.S. producers of high fructose corn syrup on account of Mexico's de facto ban of this product, an amount which-- according to U.S. industry--could be as high as $465 million annually.
Let me conclude by stating that I know that some in Mexico are working constructively to try to resolve this issue. Earlier this month President Fox of Mexico sent to the Mexican Congress a formal request to repeal the tax on high fructose corn syrup. I hope that his request becomes law. I appreciated the offer of Mexico's Secretary of Agriculture, Javier Usabiaga, to speak with me regarding the tax, and I regret that our schedules have not permitted us to meet personally. I also note that U.S. and Mexican private sector representatives have been negotiating over access for U.S. high fructose corn syrup to the Mexican market.
Regardless of these efforts, Mexico's de facto ban on imports of U.S. high fructose corn syrup remains in place. Meanwhile, Iowa's corn growers and Iowa's high fructose corn syrup producers continue to suffer on account of Mexico's NAFTA and WTO illegal actions. Again, I strongly hope that Mexican legislators will remove Mexico's tax on soft drinks containing high fructose corn syrup prior to the return of the U.S. Senate next January. But if this tax is not repealed by January, I have every intention of working to advance this legislation through the Senate.
I'm a strong believer in free trade. I fought hard for passage of the NAFTA. I did so because I know free trade benefits farmers in Iowa and other states. U.S. agriculture certainly benefits from the NAFTA, as does Mexican agriculture. But Mexico has engaged in a blatantly illegal act against U.S. agriculture for too long. Mexico's action is having a particularly negative impact on my State of Iowa. If we are to maintain support for free trade in this country, we must ensure that our trading partners live up to their obligations. If they do not, we must take action. I hope the introduction of this bill sends a strong message to my Mexican counterparts that we are ready and willing to stand up for U.S. agriculture. I sincerely hope that they will do the right thing and repeal their illegal tax on high fructose corn syrup.
I hope they repeal their illegal tax to demonstrate their commitment to living up to the letter and spirit of Mexico's promises under NAFTA and the WTO. I hope they repeal their illegal tax to improve relations between the United States and Mexico and to bring the benefits of free trade to consumers and producers in both countries. And, Mr. President, I hope they repeal their illegal tax so the Mexican Agricultural Trade Compliance act is no longer needed. But, if that's what it takes, then that's what we should do.
Mr. President, today we introduce a bill to fight tax fraud. I am not talking about just moving around a few numbers on a tax return. Today we will begin closing the loop holes that have created millions of gallon and billions of dollars of missing fuel and missing tax dollars. This problem not only robs the U.S. Treasury it also robs the American Taxpayer.
We rely on these tax dollars to fund not only the Highway Trust Fund, which is charged with constructing and maintaining our national transportation system, this also robs money from our Airport Trust Fund.
In light of investigations completed since September 11th, the safety and soundness of maintaining our nation's transportation infrastructure is now more than ever of the utmost importance. These issues are not just tax fraud--not only are we concerned with the tax loss, but where else is this money going--is it being used to fund terrorism? We need to know where all of this fuel is going. What makes us think that if we cannot find the fuel to collect the tax, that we could find the fuel to stop the terrorists acts. A missing barge could hold ninety tanker truck loads of fuel, that's about $500,000 in Federal and State excise taxes left uncollected, its also hundreds of thousands of gallons that we cannot account. That cannot happen, and this bill should help our enforcement officers close the loop holes and collect the tax that builds our highways.
Mr. President, I rise today to introduce the American Railroad Revitalization, Investment, and Enhancement Act of the 21st Century, better known as ``ARRIVE-21.'' This legislation is of vital…
Mr. President, I rise today to introduce the American Railroad Revitalization, Investment, and Enhancement Act of the 21st Century, better known as ``ARRIVE-21.'' This legislation is of vital importance to rail transportation because it provides steady, dependable funding for our beleaguered national passenger rail system. It also provides funding for infrastructure investment in the railroad industry as a whole, including freight railroads. And it establishes a financing mechanism to ensure that our rail system benefits from a steady stream of funding, just like our airline industry, our transit systems, and our national highway system.
For the past 30 years, Amtrak has provided us with a valuable public service, even though it was forced year after year to come beg for money from the Congress. And year after year, the Congress gave it just enough money to barely survive another 12 months. Sometimes Congress didn't appropriate even enough money to last 12 months, and Amtrak had to come back and beg for a supplemental appropriation just to remain in business until the end of the fiscal year. Never mind having enough money to grow the railroad; never mind having enough money to run a first-class passenger railroad. And never mind having enough money to keep the infrastructure in a state of good repair. All Amtrak has been able to do for 30 years is stay alive. It's time to give Amtrak the tools and funding it needs to do the job we keep asking it to do.
Last year I introduced the National Defense Rail Act of 2002 which was approved by the Senate Commerce Committee by a vote of 20-3. We have shown that bipartisan support exists for authorizing a strong rail program, however the main obstacle we have faced has been securing funding to live up to the authorized amounts. This legislation attempts to address the lack of a guaranteed revenue stream for passenger rail programs and establishes a framework to address freight needs where there is a clear public benefit.
It's a foregone conclusion that transportation development requires money. We somehow figured this out a long time ago with regard to every other mode of transportation. We federally funded the development of the interstate highway system; we subsidized airport construction; we dredged harbors and channels; and we built locks and dams. And the result of all that investment is that our citizens and our goods can move across the country, from big cities and from small towns, efficiently and relatively cheaply. We have today a national transportation system with many impressive components.
You might even say we have been a little too successful with these modes of transportation because many of them are now strained to capacity in many areas of the country. This situation presents not only an economic dilemma, but also a genuine security risk. The atrocious events of September 11th, and the aftermath that followed, exposed the vulnerability of our society and our economy when transportation choices become limited and our mobility is diminished. Effective transportation security means that, as a Nation, we nurture all transportation options and we do not allow ourselves to be overly dependent on only one or two particular modes. In effect, that's what we have done by favoring highways and aviation, where we have directed the flow of billions of dollars. Ironically, rail passenger service is more environmentally-friendly, more fuel-efficient, and more capable of mitigating the impacts of population congestion to help foster regional economic growth than any of the other modes. But in the process of shoring up those other transportation modes for all those years, we lost our focus on passenger rail and we sadly neglected investing in its development.
For passenger rail to be successful, its infrastructure must be developed through the kind of bold Federal leadership we exercised for our other modes of transportation. That's why my colleagues and I are pleased to introduce this landmark piece of legislation designed to change the way we think
about financing passenger rail service and designed to grow our passenger rail system into the world-class system it should be. The bill creates Federal/State and public/private partnerships to promote infrastructure development for both freight and passenger rail. It provides $20-$25 billion in grants over six years to States and State compacts for rail capital projects to provide for a safe, secure, and efficient rail transportation system. It enhances Federal and State rail transportation policy, and it promotes intermodal transportation investment.
ARRIVE-21 creates a non-profit Rail Infrastructure Finance Corporation (RIFCO) to issue $30 billion in tax-credit bonds over six years for the purpose of providing grants to States for capital investment in freight and passenger rail infrastructure and facilities. RIFCO will establish a trust account made up of bond proceeds and contributions from States that receive RIFCO grants. Bond proceeds and State contributions in excess of the amount required to maintain the trust account will then be available for grants to the States through a competitive process.
Although my first choice would be to fully fund the needs authorized in this legislation by straight federal spending, it has become clear that over the last thirty years that there is no pot of gold at the end of the rainbow when it comes to Amtrak. There is not enough money in the scant pot available for discretionary spending on transportation programs. We have established dedicated trust funds for the airlines with their ticket taxes, and we have the trust fund for the highways and transit programs which are funded through the gas tax, but when it comes to passenger railroads, there is no such revenue stream. The establishment of RIFCO was not my first choice to finance the publicly needed improvements of the railroad system, but it is an option for the Congress to debate and consider as we attempt to address what we need the rail system to do for this country.
RIFCO is set up to assist the States fund both passenger and freight projects that benefit the public on a State, regional or national basis. State or State compacts may apply for RIFCO funds for discretionary and formula funds for capital projects in four categories: State Intercity Passenger Rail Corridor Development, including equipment, stations, and facilities. State Freight Rail Infrastructure Development Projects, including capital projects that primarily benefit freight rail transportation. States may use a percentage of these formula funds to manage State rail programs. National System Improvement Projects, including projects that significantly benefit the national passenger rail system, Amtrak- sponsored projects and Northeast Corridor projects. High Priority Projects, including projects with major public policy benefits to the national rail system or significantly expand rail intermodal capacity in connection with maritime, aviation, and highway facilities.
Eligible capital projects would include new rail line development, planning and environmental reviews, track upgrades and restoration, highway-rail grade crossing improvements and eliminations, relocation of track, infrastructure and facilities, construction of intermodal facilities and passenger rail stations, tunnel and bridge repairs, communication and signaling improvements, environmental impact mitigation, acquisition of passenger rail equipment, and security improvements. Projects to receive discretionary funding would be selected by RIFCO according to selection criteria contained in the bill. The projects would require a 20 percent non-Federal contribution paid to RIFCO for bond repayment.
ARRIVE-21 also directs the Federal Railroad Administration to develop a National Rail Plan and to work with States in developing State rail plans, so that we have a comprehensive and coordinated long-range plan for rail development for the whole country. The bill also directs the Office of Intermodalism in the Department of Transportation to create a ``50-Year Blueprint'' for the development of a national intermodal transportation system and provide a vision of emerging trends and opportunities for the future of passenger and freight rail transportation.
Before I close, I would be remiss if I did not recognize the work of Nancy Lummens Lewis, a detailee from the Federal Railroad Administration, who has worked on the Commerce Committee since January. We have appreciated her professionalism, competency, and her willingness to work and share her time with us. I thank Nancy for her time spent on this bill, as well as her efforts on the reauthorization of the Transportation Equity Act of the 21st Century, The Federal Railroad Safety Improvement Act, and The Surface Transportation Board Act of 2003. We wish her well in her future endeavors.
ARRIVE-21 presents a smart and efficient solution to a very important transportation dilemma. I am joined by several of my colleagues, including Senators Collins, Specter, Carper and Jeffords, in introducing this bipartisan legislation. As we have passed legislation this week providing approximately $15 billion annually for aviation for the next 4 years, and plan to take up a highway bill next year which will spend $40 to $60 billion annually on highways and transit over six years, we must not leave rail out. It is critical that the Senate take this bill up, and pass it, to ensure that our railroad transportation system, especially our passenger rail system, can grow and develop to meet our current and future transportation needs.
Attached is an amendment that the sponsors of ARRIVE-21 intend to offer during floor consideration of the bill. I ask unanimous consent that the amendment and the text of the bill be printed in the Record.
Mr. President, I rise along with my colleague from Connecticut, Senator Dodd, to introduce the Mutual Fund Investor Confidence Restoration Act of 2003, a bill that would improve the oversight of the…
Mr. President, I rise along with my colleague from Connecticut, Senator Dodd, to introduce the Mutual Fund Investor Confidence Restoration Act of 2003, a bill that would improve the oversight of the mutual fund industry, enhance fund governance, and protect the millions of Americans who invest in these funds.
Mutual funds are the primary means for investors to participate in the market. Approximately 95 million Americans invest in mutual funds, and investments total near $7 trillion dollars. The industry, one of our oldest and most-revered, is entrusted by those shareholders with their dreams of a comfortable retirement, the ability to pay their children's college tuition, buy a first home or pursue other life-long dreams.
It's not a stretch to say that in many ways the mutual fund industry has been the standard bearer for ethical behavior, strong oversight and governance committed to investor protection in our capital markets. Few, if anyone, would dare to have suggested that our mutual fund industry could become fertile ground for the types of `infectious greed' we witnessed during the governance and accounting scandals a few years ago.
But that is just what has happened.
Today, the mutual fund industry faces its own litany of scandals centered on allegations of investor fraud,
flawed corporate governance, financial conflicts of interest and outright investor abuse. Names like Putnam and Canary Capital have become synonymous with Enron, Tyco and WorldCom in terms of the financial harm inflicted upon investors, undermining their confidence and trust in America's financial markets.
The vast majority of those who work in this industry are decent, hard-working individuals who make a significant contribution to the betterment of our nation.
Unfortunately, there are also far too many associated with this profession--including some investment advisors, fund board members, and those in fund company management--who are all too willing to disregard their fiduciary obligation to shareholders in order to pursue their own personal self-enrichment.
Investors should not perceive that the deck is stacked against them. They should not think that there are different rules--one that applies to them and a different and considerably less stringent set that applies to wealthy industry insiders.
The legislation we are introducing today, The Mutual Fund Investor Confidence Restoration Act will make sure that the playing field stays level.
This bill has five primary themes: improving mutual fund governance; enhancing cost, fee and other important disclosures to shareholders; preventing abusive mutual fund practices such as late trading and market timing; strengthening mutual fund industry oversight; and promoting fund shareholder literacy.
Let me give a more detailed summation of what this legislation would do and why it is so important.
Boards of directors for mutual funds have been criticized recently for the high number of directorships that members hold, the lack of board independence from fund management and the failure of several to fulfill their fiduciary responsibility to shareholders. This legislation would strengthen fund governance by establishing truly independent mutual fund boards, chairmen, nominating committees and independent audit committees that conform to Sarbanes-Oxley Act requirements for those at publicly traded companies.
The bill would also improve fund governance by requiring Sarbanes- Oxley-like ``certification'' from Board Chairmen and newly-designated Chief Compliance Officers that shareholders safeguards are in place within the fund.
Also, it would ensure that accurate disclosures to shareholders, including cost and fee information, are contained in the prospectus.
The legislation includes other `certifiable' requirements for board chairmen and chief compliance officers, including disclosures that internal controls, a code of ethics and personnel designated to ensuring adherence to stated polices and compliance with relevant securities laws, including measures preventing market-timing and late trading abuses, are in place at the fund and with the investment adviser. Additionally, the legislation calls for the disclosure of insider transactions by mutual fund managers and Board notification of Securities and Exchange Commission (SEC) deficiency letters.
Another issue of concern with the mutual fund industry is the inadequate and confusing disclosure provided to shareholders regarding expenses. Fund shareholders are responsible for paying various fees and costs related to the operation and trading activity of the fund. While funds provide investors with certain fee-related disclosure, shareholders are largely in the dark about many other costs that impact the value of their fund's assets.
The legislation includes numerous provisions aimed at improving the cost, fee and other disclosures shareholders receive from mutual funds. These would include requirements that funds disclose the actual cost borne by each shareholder for the operating expenses of the fund and the estimated expenses paid for costs associated with management of the fund that reduces the fund's overall value, including brokerage commissions, revenue sharing and directed brokerage arrangements, transactions costs another fees.
The legislation would require a breakdown of these respective costs to be displayed graphically, in order to provide shareholders with the requisite information to compare the costs associated with owning shares of various mutual funds.
In addition these requirements, the legislation would require fund companies and investment advisers to fully disclose certain sales practices, including revenue-sharing and directed brokerage arrangements, shareholder eligibility for breakpoint discounts and the value of research and other services paid for as part of brokerage commissions, directing the SEC to study so-called ``soft-dollar'' arrangements.
As I mentioned earlier, Mr. President, this bill includes measures aimed at preventing abusive mutual fund practices, such as late trading and market timing, that diminish the shareholders' assets of a particular fund. First, the legislation seeks to ensure that fund companies and investment advisers have adequate shareholder safeguards in palace, and that they `certify' these internal control procedures. Those would include establishing a code of ethics, improving the accurate disclosure of fund company policies, and ensuring compliance efforts are overseen by the chief compliance officer.
The bill also would also take steps aimed at directly preventing abusive practices and conflicts of interest. The recent scandals surrounding mutual funds primarily focus on brokers and fund officials that have engaged in the improper trading of mutual fund shares through late trading and market timing. Late trading refers to the practice of placing orders to buy or sell mutual fund shares after 4 p.m., and market timing is short-term trading in and out of stocks in the hope of exploiting an inefficiency in the fund's share price.
To address the issue of market timing, the legislation requires the SEC to ensure that fund companies are in compliance with the Investment Company Act rules requiring them to use fair value calculation to determine the net asset value a fund company's securities when market quotations are otherwise unavailable or do not accurately reflect the companies fair market value. This provision would eliminate the stale pricing that allows market timers to profit, often illicitly, from the inaccurate pricing of a fund's shares.
The legislation would also require the SEC to establish a rule requiring fund companies and investment advisers to develop and disclose formal policies related to market timing and short term trading. Certification by fund company management would further ensure that policies are being adhered to.
To address late trading, the bill requires the SEC to issues rules and establishes guidelines for trades in fund securities that go through newly established ``permitted intermediaries'', such as broker- dealers. The rules would allow these permitted intermediaries to execute trades of a fund after the funds net asset value has been derived, if the intermediary has; a policy in place that the company does not permit late trades, mechanisms in place to detect late-trades and if that intermediary make those procedures available for inspection by the SEC. Non-permitted intermediaries would be required to submit their transactions to the fund company prior to market close.
To reduce other conflicts, the legislation would prohibit mutual fund managers from jointly managing a hedge fund, and would prohibit short- term trading by fund and investment company management and requires disclosure of insider transactions.
In seeking to bolster mutual fund industry oversight, this legislation would require the SEC to review the allocation of the resources it has dedicated to industry oversight and the General Accounting Office (GAO) to study the feasibility of establishing a new, independent regulator--the Mutual Fund Oversight Board. The bill also would direct the SEC to establish incentives and protections for whistleblowers and would require the GAO to independently review and report to Congress on the coordination of enforcement efforts between the SEC, its regional offices, and state regulators.
Finally, this bill calls for a study into ways in which we can improve and promote financial literacy among mutual fund shareholders. And the legislation, through its enhanced disclosures to shareholders, already makes a significant contribution to improving
shareholder understanding of the policies of the fund and the costs associated with its management and operation.
Mr. President, we are now in day 51 of the fiscal year. In order to finally bring the fiscal year 2005 appropriations season to a close, the Senate has before it a $388 billion, nine bill, 3,016-page…
Mr. President, we are now in day 51 of the fiscal year. In order to finally bring the fiscal year 2005 appropriations season to a close, the Senate has before it a $388 billion, nine bill, 3,016-page monstrosity of a bill. Here it is, right here on the desk. Take a look at it.
Of the nine appropriations bills in the bill, only two were ever debated in the Senate. The conference report includes a miscellaneous division that contains 32 unrelated provisions, most of which have never been considered by the Senate.
There is not a single Member in this body who can say that he or she has read this bill. It contains complex and controversial matters. It contains an across-the-board cut of eight-tenths of 1 percent that arbitrarily reduces veterans medical care programs, health care programs, highway construction, and global AIDS programs.
At midnight last night, a 64-page small business reauthorization bill was put in the bill without consultation. It contains controversial matter that was not in the freestanding bill that the Senate debated over a year ago.
During the development of the appropriations bills this year, the House and Senate reviewed the President's budget carefully and, in some cases, approved provisions that moved the Nation in a different direction from that which the White House wanted. The White House issued veto threats on several of these issues.
The Senate provision to block the administration's overtime regulation which could eliminate overtime pay for 6 million Americans is dropped from the bill.
Provisions that were in both the House and Senate bills concerning Cuba trade are all gone.
The Senate provisions to overturn the Mexico City family planning policy and modify the Kemp-Kasten rules for funding the U.N. Population Fund have disappeared.
At midnight last night, at White House insistence, and through the intervention of the House Republican leadership, the language that would have required a fair competition before Federal jobs are contracted out was pulled from the bill.
Yet here we are on a Saturday, 51 days into the fiscal year, forced to vote on this monstrosity in the form of a $388 billion unamendable, unread conference report.
The bill is entitled ``Consolidated Appropriations Act, 2005.'' It should be entitled ``Lame Appropriations Act, 2005.''
The Federal fiscal year started on October 1. While we have been waiting for the Republican leadership to bring appropriations bills to the floor, the country's schools, the country's hospitals, the veterans seeking health care, the FBI agents fighting terrorism, the construction workers wanting to build bridges and highways, the farmers, and the scientists across America have had to wait.
Why the delay? First, despite the fact that we have a Republican President, a Republican House, and a Republican Senate, our Republican Government could not produce a budget. We had a record deficit for fiscal year 2004 of $413 billion. This Bush deficit exceeded the deficit record that he set for fiscal year 2003 of $375 billion.
Yesterday the President signed a bill to increase the debt limit to a record $8.2 trillion--$8.2 trillion of debt, and yet we do not have a budget. Without a budget, the appropriations process was delayed. We are living in a land of make-believe.
For months, the Senate pushed aside work on appropriations bills to focus on political debates. We pushed aside the people's interest so party interests could take center stage before the elections, but in doing so we failed, once again, to get our job done. This is a lameduck Congress, but the lame politicking in this Senate started long before this week.
Time after time, we have put a hold on the investments in this Nation that every Senator knows we must make in order to put points on a political scoreboard, like this is some big game. But when we play games like these, the real losers are the American people.
Fifty-one days into the fiscal year and, once again--this is not the first time--once again, we have a mammoth, unamendable omnibus conference report in front of us. Sadly, it has become almost an annual ritual that we shackle ourselves with these omnibus monstrosities. It is not good--not good for the Senate, not good for the American people, not good for your political system. We did in 1996, 1997, 1999, 2000, 2001, 2003, and 2004.
When I was chairman from 1989 to 1994 and again in 2001, we produced 13 individual bills annually.
That is the way to protect Congress's power of the purse. That is the way to protect the American people. That is the way to respect Members' rights to debate important legislation. We should not go down this road again next year. The woolly mammoth became extinct ages ago. I hope one day that the same will be said for such mammoth appropriations bills.
The fact that we have such massive legislation on our desks tonight is not the fault of the chairman of the Appropriations Committee, the senior Senator from Alaska, Ted Stevens. He would have moved Earth and sky if it had meant finishing 13 individual appropriations bills on time. But not even his Herculean efforts could change the plain and honest truth of this Senate. Namely, when it comes to this Senate today, politics wins every time.
I would be remiss if I did not thank my chairman, my colleague, my friend, Senator Ted Stevens. This will be the final appropriations conference report that Senator Ted Stevens will guide through this Chamber, and how we will miss that fine, steady hand at the helm. While he does not leave the Appropriations Committee, thank God, he does leave the chairmanship after this session.
I thank him for his unflinching friendship over the years. We do not always agree, Senator Stevens and I. No. I respect his views. I hope he respects mine. And the same can be said of the chairmen and ranking members of the appropriations subcommittees, both when this side is under control of the Senate and when this side is in the minority. At the end of the day, we always know that party is not the most important aspect of life. Faith in God, love of family, the Constitution and the country, Senator Stevens knows, as I do, that these are far more important than the fate of a partisan agenda.
Because of the limitations placed on the Congress by the administration, more veterans will go without medical care. I have to say that this administration meddles in the appropriations process more than any other administration I have ever seen in my 46 years as a Senator, and as my 52 years as a Member of the Congress.
Fewer children now will receive the educational services promised by this President and this Congress in the No Child Left Behind Act. Scientists will be left scrambling for research dollars. Families living in rural America will see their clean water pushed off for another year. This bill shortchanges America's future, and I say to all Senators that because of the President's arbitrary limits on discretionary spending, $8 billion worth of increases above the President's budget request that were contained in the bipartisan Senate appropriations bill were eliminated.
Now, that is the White House meddling, a White House that does not seem to recognize that there is a Constitution of the United States; a White House that does not seem to recognize that there is a separation of powers; a White House that does not seem to remember that the legislative branch is not indeed subordinated to the executive branch. Relative to the Senate bills, title I education for the disadvantaged is cut by $661 million; special education by $658 million; the National Institutes of Health by $537 million; EPA clean and safe drinking water grants are cut by $312 million; VA medical care by $235 million; $975 million in cuts in public housing; $277 million is cut from the National Science Foundation and the effort to help communities to hire new police officers; the COPS program is cut by $154 million.
These are big numbers. Honestly, they probably do not mean much to people, but behind each dollar is an American citizen. Cuts to special education mean that fewer children with disabilities will receive the specialized services they need. Cuts to title I mean that young people living in poor school districts will have fewer classroom opportunities to brighten their paths to their future. Fewer dollars for COPS means fewer officers on the streets, the very time when crime is up and the terrorist threat is very real across America.
That brings us to where we are today. The legislation before us includes some increase above the President's request for such programs as veterans medical
care, highways, low-income home energy assistance, State and local law enforcement, the manufacturing extension program, Amtrak and Corps of Engineers construction. However, I cannot vote for this Omnibus appropriations bill, and I extend my sincere apologies to my colleague, Ted Stevens. I honor him and I will always remember him as one of the very finest chairmen of the Appropriations Committees under whom I have served in my 46 years in this body, but I cannot vote for this Omnibus appropriations bill.
I intended this morning to vote for it. Omnibus bills bring the White House to the table and put them in charge. I have said that time and time again. Let me say it again. Omnibus bills bring the White House to the table and put them, the White House, in charge. Omnibus bills allow the White House to set arbitrary ceilings on spending. Omnibus bills preclude Members' rights to debate significant issues. Omnibus bills produce bad legislation, such as the ill-conceived language on giving staff authority to review tax returns.
Need I say more? No, I shall not say more. I will vote no.
I yield the floor.
Mr. President, over the last several years as the economy came down from the high of the 1990s, we have seen how devastating it can be for workers when their companies declare bankruptcy. From the…
Mr. President, over the last several years as the economy came down from the high of the 1990s, we have seen how devastating it can be for workers when their companies declare bankruptcy. From the enormous Enron bankruptcy at the end of 2001 to the bankruptcies of Wheeling-Pitt and then Weirton Steel in my own home State, every bankruptcy has brought heartache for workers who had dedicated themselves to their employers. In many cases, employees and retirees have very limited ability to recover the wages, severance, or benefits they are due when their companies seek protection from creditors.
Workers deserve better. So today I am introducing the Bankruptcy Fairness Act to strengthen workers' rights in bankruptcy and to provide greater authority to bankruptcy courts to ensure a fair distribution of assets. Specifically, my bill will do three things. It will ensure that retirees whose promised health insurance is taken away receive at least some compensation for their lost benefits. Second, my legislation would allow employees to recover more of the back-pay or other compensation that is owed to them at the time of the bankruptcy. And lastly, I would provide bankruptcy courts the authority to recover company assets in cases where company managers flagrantly paid excessive compensation to favored employees just before declaring bankruptcy.
I am proposing this legislation as a way to start a dialogue about how we can better protect workers whose companies file for bankruptcy. I do not pretend to have all the answers. But I do know that we must do a better job of easing the burden that bankruptcy imposes on employees and retirees. And I believe that we can do so in creative ways that do not make it more difficult for companies to successfully reorganize and emerge from bankruptcy. I look forward to the ideas and suggestions of my colleagues.
In the simplest economic terms, employees sell their labor to their companies. They toil away in offices, plants, factories, mills, and mines, because they are promised that at the end of the day they will receive certain compensation. One of the most important types of compensation that workers earn is the right to enjoy certain benefits when they retire. Pensions, life insurance, or health care coverage are earned by workers in addition to their weekly paychecks. Yet, sadly we have seen many companies in the last few years abandon these promises when they declare bankruptcy.
More and more we see companies taking the easy road to profitability by abandoning commitments that they made to workers. For retirees who have planned for their golden years based on the benefits they have earned, losing health insurance can be a devastating blow. Retirees must have the right to reasonable compensation if the company seeks to break its promise to provide health insurance. Under current law, these retirees receive what is called a general unsecured claim for the value of the benefits they lost. As any creditor will tell you, a general unsecured claim is essentially worthless in most bankruptcies. It means you are at the end of the line, and there are not enough assets to go around. This law allows companies to essentially rescind compensation that retirees have earned with virtually no cost to the company. Of course that is a great deal for the company, but it is spectacularly unfair to the retirees.
Recognizing that so-called legacy costs are often an impossible burden for a company that is trying to emerge from bankruptcy, my legislation would still allow companies in some circumstances to alter the health coverage offered to retirees. However, it would require that the company pay a minimum level of compensation to retirees. Under this bill, each retiree would be entitled to a payment equal to the cost of purchasing comparable health insurance for a period of 18 months. Of course, 18 months of health insurance coverage is a lot less than many of these retirees are losing, but it can ease the transition as retirees make alternative plans, and it will discourage companies from thinking that terminating retiree health coverage is an easy solution. The retirees would still be entitled to a general unsecured claim for the value of the benefits lost in excess of this one time payment. This change would ensure that retirees, while still not being made whole on lost benefits, will at least receive some compensation for the broken promises.
Many active workers, too, have a difficult time recovering what is owed to them by their employer when the company files bankruptcy. Under current law, employees are entitled to a priority claim of up to $4,650. But that figure is usually not enough to cover the back-wages, vacation time, severance pay, or benefit payments that the employees are owed for work done prior to the bankruptcy. Congress needs to update the amount of the priority claim to ensure that more workers are able to receive what is rightfully theirs. The Bankruptcy Fairness Act would establish a priority claim for the first $15,000 of compensation owed to an employee.
In most cases, employees have been working their hardest to help the company avoid the nightmare of bankruptcy, only to find that they will not be compensated for their services as promised. As we saw so clearly with the Enron case, employees are often left holding the bag when their company declares bankruptcy. In that case, employees were owed an average of $35,000 in back-wages, severance, and other promised compensation. They deserved to recover more than a mere $4,650 of what was owed them. Let me be clear, this bill does not establish any new obligation for a company to pay severance or other compensation to employees caught up in a company's bankruptcy. It merely ensures that employees can recover more of what is already owed to them through the bankruptcy process.
I understand that many creditors or investors are not able to recover what is rightfully owed to them in bankruptcy, but employees deserve protection that recognizes the unique nature of their dependence on their employer. Any smart investor diversifies his or her portfolio so that a bankruptcy at one company does not bankrupt the investor. Likewise, suppliers and creditors that do business with a company typically have many other clients. This is not the case with workers. They cannot diversify away from the risk of working for a bankrupt company, and the financial hardship a bankruptcy brings is more devastating to the average worker than the average creditor or supplier.
Now, I know that some of my colleagues listening to this may be worrying that this legislation is insensitive to the needs of companies that are trying to reorganize in order to emerge from bankruptcy and go forward as successful businesses. I am fully aware that sometimes, too often in the real world, the bankruptcy process can help companies stay open and maintain jobs by restructuring obligations to creditors. Too many companies in West Virginia have had to go through the painful process of Chapter 11 reorganization. I completely understand the need to keep the factories open. And I have always worked side by side with companies to help them recover.
I will continue that important work, and I have included a provision in this bill to help bankrupt companies that are struggling to survive to recover assets that have been pilfered from the corporate coffers. In too many cases, company executives reward themselves even as their companies careen toward bankruptcy. The most egregious recent example is at Enron in 2001. In the days and weeks leading up to the bankruptcy filing, executives granted large bonuses to themselves and their favored employees. Millions of dollars were paid to a select group of employees just before the company declared bankruptcy. It is unconscionable that executives would grant themselves undeserved bonuses and then weeks later claim that the company did not have the resources to pay its rank and file employees.
My legislation provides bankruptcy courts greater authority to recover excessive compensation that was paid just prior to the bankruptcy filing. If
the court finds that compensation was out of the ordinary course of business or was unjust enrichment, the court can recover those assets for the bankrupt company, ensuring that more creditors, employees, and retirees can receive what is rightfully owed to them by the company.
The reforms I have outlined are modest. They will not take the sting out of bankruptcy. By definition a bankruptcy is a failure, and it is painful for the company's employees, retirees, and business partners. But the Bankruptcy Fairness Act I am introducing today would make progress toward ensuring that bankruptcies are more fair to the workers who gave their time and energy and sweat to the company in exchange for certain promised compensation. And by helping a company recover assets that should not have been paid out as undeserved bonuses just before bankruptcy the bill ensures that more of a company's assets are paid to the employees, retirees, and creditors who are rightfully owed.
It is my hope that this legislation will receive serious consideration from my colleagues, and that this can open an important debate about how workers and retirees can be better protected from the ugly side of prolonged economic downturns.
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Mr. President, I rise today, with my colleague from New Jersey, to introduce a measure that is critical to improving the investing public's faith in our capital markets. This legislation, the…
Mr. President, I rise today, with my colleague from New Jersey, to introduce a measure that is critical to improving the investing public's faith in our capital markets. This legislation, the ``Mutual Fund Investor Confidence Restoration Act'' will fundamentally strengthen protections for the millions of investors who rely on mutual funds for their financial security.
America is the land of opportunity. Millions of Americans and countless others around the world seek the opportunity to participate in the economic life of our nation. Mutual funds are a principal pathway through which most investors achieve financial security. Mutual funds have in the past not only lived up to, but in many cases exceeded, the grand expectations of investors. They are a true success story of our securities markets and our system of securities regulation.
However, in recent months, a series of revelations has shaken investor confidence in the promise of mutual funds. We must restore the faith of investors in mutual funds and those who manage them. This legislation is designed to address some of the abuses and shortcomings which have received so much recent attention.
There are five broad areas which this legislation addresses: corporate governance, disclosures to investors, late trading and market timing, increased regulatory oversight, and financial literacy.
This legislation significantly improves corporate governance standards at mutual funds. Investors have begun to lose faith that their hard earned savings are not being managed with their best interests in mind. Mutual fund boards must have greater independence from fund managers and be more accountable to shareholders of the fund. Directors and chairmen must exercise greater oversight to ensure that funds are run in the interest of their shareholders--and be accountable to shareholders for failing to do so. Additionally, this legislation directs the SEC to determine whether directors and chairmen need additional tools to carry out that job.
This legislation mandates that corporate governance requirements created in the Sarbanes-Oxley Act, such as director independence requirements, financial expertise, and certification measures apply to mutual funds. Of particular note, this legislation mandates that funds employ a chief compliance officer to ensure that internal controls, policies and procedures are met by the fund in the interest of shareholders.
We need to improve the disclosures to investors about the fees and costs associated with mutual funds. Current disclosures are inadequate in providing investors the information necessary to understand the true costs of investing through mutual funds. The current expense ratio by no means includes all of the fund's expenses.
This legislation requires that currently unaccounted for expenses, such as brokerage commissions, advertising fees and research costs, among others, are fully disclosed.
Additionally, the legislation requires the breakout of these respective costs to be displayed as a graph provided to shareholders that will enable them to compare the costs associated with owning shares of different mutual funds. The ability to compare the total costs of mutual funds with each other will drive competition and lower costs for investors.
Investors deserve to know if their broker has a financial incentive to steer them into particular mutual funds. This legislation mandates greater disclosure of financial incentives provided to intermediaries and requires fund companies and investment advisers to fully disclose certain sales practices, including revenue-sharing and directed brokerage arrangements and disclose the value of research and other services paid for as part of brokerage commissions.
The recent abuses that we have seen with respect to late trading and market timing must be stopped to restore investors faith in mutual funds. Insider dealings at mutual funds must never recur. Fund insiders must be prohibited from trading against their own shareholders' interest. Neither fund insiders nor preferred customers must enjoy privileges like market timing that are denied to the millions of average mutual fund investors.
Late trading is already illegal, but we now know it isn't isolated. The system for prohibiting late trading in mutual funds must be strengthened, so all mutual fund investors are treated fairly. This legislation creates new requirements for intermediaries and funds to ensure that illegal late trading activities are stopped.
As a result of the recent widespread scandals in this area, we must rededicate our regulatory oversight of the mutual fund industry. Due to the tremendous size of mutual funds and how critical of an investment tool they are to small investors, this legislation directs the General Accounting Office to consider the value of creating a new self regulatory body and/or independent regulator for mutual fund oversight.
Lastly, this legislation calls for improved efforts to promote financial literacy among mutual fund shareholders. Ensuring that investors have the resources available to them to understand the benefits and costs of mutual funds is a fundamental importance.
The Mutual Fund Investor Confidence Restoration Act is an important step in the right direction of restoring the integrity of the mutual fund industry and will greatly improve the basic protections given to investors who rely upon these investment vehicles for their economic security.
Mr. President, I rise today to introduce important legislation designed to ensure that corporate wrongdoers are held fully responsible for their illegal actions and that investors are given fair compensation for such actions.
As most of my colleagues are aware, in April of this year, 10 large securities firms agreed to pay a total of $1.4 billion in fines and payments for giving their investment clients tainted and misleading advice--advice which cost those clients hundreds of millions of dollars.
The ``global settlement'' was initially lauded as a historic victory against corporate wrongdoers. And indeed, thanks to the efforts of Federal and State securities regulators, and New York State Attorney General Eliot Spitzer, the settlement has the potential to fundamentally change pervasive business practices that were so harmful to so many.
But the settlement's impact could be significantly weakened by a loophole that would allow the firms to avoid paying taxes on nearly $900 million of the penalties--by deducting them as standard business costs.
Only one-third of the total settlement is specifically prohibited by law from being tax-deductible. If the firms are able to write off the remainder of the costs as business expenses, then the total price tag of the settlement will be much smaller than advertised.
However, there is much more at stake. America's financial markets are the most vibrant in the world for one reason--investor confidence. The securities laws of the 1930's built the foundation for the deepest, most liquid markets in the world. They have created a public trust in our markets among investors worldwide who know that we have a zero- tolerance policy towards corporate malfeasance.
If we allow firms to write off fines as the cost of doing business, then we will perpetuate the idea that fraud is no longer a crime, but an accepted business practice. And we will compromise the very principles on which our markets are based--credibility, honesty, and responsibility.
We need to send the strongest possible message to corporate America that defrauding people of their life savings can never, under any circumstances, be considered ``business as usual.'' Our tax code should not reward these practices--it should discourage and punish them, to the greatest extent possible. Otherwise, the victims of corporate misconduct will include not only individual investors, but the credibility of our capital markets. And if our markets suffer, so will America's place in the world economy.
That is why I rise today to introduce my legislation. This legislation takes two important steps towards fixing this problem. First, it expressly prohibits any tax deduction on payments for violations of securities laws, including those required by the global settlement. Second, it directs all of the tax revenues gained from those payments into existing funds administered by the Securities and Exchange Commission which repay money to defrauded investors. Under my bill, the perpetrators of corporate misdeeds will be fairly punished, and the victims will be fairly compensated.
Everyone agrees that restoring investor confidence is a crucial part of getting our economy back on the right track. The vitality of 10 largest securities firms represent an important piece of this puzzle. But Americans will only be willing to entrust them with their hard- earned money if they can be sure that they are being dealt with ethically and honestly.
The global settlement represents a tremendous opportunity to help mend the tattered relationship between corporate America and the American people. We can't afford to lose that opportunity in a tax loophole. We need to show Americans that corporate fraud is a real crime--not business as usual. I urge my colleagues to support this bill.
Mr. President, I oppose this omnibus appropriations bill. It has become something of an annual event to consider these massive, must-pass measures. Because this particular bill has come to us in the…
Mr. President, I oppose this omnibus appropriations bill. It has become something of an annual event to consider these massive, must-pass measures. Because this particular bill has come to us in the form of a conference report, we are unable to even offer an amendment to the legislation. Those who crafted this measure are, of course, fully aware that this bill is completely shielded, and as a result they were free to include numerous provisions that would certainly have generated amendments were they to come to the body in an amendable vehicle.
There are many questionable provisions, all of them safe from the scrutiny that the amendment process affords. There will be a few editorials written lamenting some of these provisions, but that will be it. Absent some extraordinary action by Congress, they will become law along with the rest of this measure.
Others will detail the billions of dollars of unauthorized, earmarked spending included in this bill. Let me just note that these questionable provisions come at a very real cost. First and foremost, by approving these provisions, Congress shirks its duty as stewards of the taxpayers' money. We have an obligation to our constituents to ensure that the money we levy in taxes is spent wisely.
Beyond that, by providing funding for these unauthorized, earmarked programs, we are diverting funds from areas that our constituents have told us are true priorities. I am deeply concerned, for example, about the level of funding provided for the National Institutes of Health, NIH. Providing an increase of less than 3 percent is not sufficient to maintain the current pace of biomedical research.
I am pleased to have supported successful recent efforts to double the NIH budget, and abruptly slowing the growth of the NIH will undermine the progress that has been made through this doubling. It is important that we provide NIH with the funding it needs to ensure that we receive the extraordinary health and economic benefits that this vital biomedical research provides.
At a time when our country is facing increases in the number of people diagnosed with serious, costly diseases such as cancer, Alzheimer's disease, heart disease and diabetes, as well as an ever- present bioterrorism threat, biomedical research needs to be a national priority, and as such it needs to be adequately funded.
Devoting billions of dollars to unauthorized special interest earmarks also means less funding for our children. Again this year, Congress and the administration have underfunded elementary and secondary education programs. As schools around our country settle in to their third year under the No Child Left Behind Act, NCLB, we will pass an appropriations measure that does not give states and districts the funding that we promised them in exchange for higher accountability standards. The law requires that States and districts comply with NCLB as a condition of receiving funding, yet we are not providing them the promised resources that will help them to succeed. And I am concerned that the NCLB accountability structure will sanction schools that fail to meet adequate yearly progress despite the fact that Congress is not providing these important resources.
In addition, just 1 day after the Senate and the House passed the conference report reauthorizing the Individuals with Disabilities Education Act, we will pass an omnibus spending bill that underfunds the fiscal year 2005 authorization level contained in that very conference report.
Again we are failing to provide the full 40 percent of special education costs promised to the States when IDEA was enacted in 1975, and, ironically, we are doing it 1 day after telling States that the IDEA conference report puts them on the path to full funding in 6 years. The IDEA reauthorization conference report authorized $12.3 billion for fiscal year 2005, and the omnibus spending bill before us contains $11.5 billion for this purpose. Thus, before the ink on the IDEA conference report is even dry, we are already breaking a promise contained in it to the tune of more than $800 million.
I regret that the Senate missed an opportunity earlier this year to make
special education spending mandatory, and I regret that the well- intentioned authorization levels in the IDEA conference report are becoming little more than an empty promise 24 hours after the Senate and the House agreed to these funding levels.
As bad as what is in this omnibus appropriations bill is what is not in it. The administration was again successful in blocking language included in the both the House bill and the committee-passed bill in the Senate that would have reversed the harmful provisions of the Department of Labor's new overtime rule. Despite repeated bipartisan opposition to this rule in both houses of Congress, the small group of Members who drafted the omnibus conference report stripped out these provisions, which would have prevented millions of workers from losing their overtime benefits under the Bush Administration's rule. I am disturbed that--for the second year in a row--an omnibus appropriations conference report was used as a vehicle to override the will of a majority of Members of both houses with respect to this harmful rule.
And, I am disappointed that the conferees chose to delete language that would have halted the administration's campaign to contract out additional Federal jobs to the private sector. Federal employees should have the right to compete for their jobs on a level playing field.
In addition, I continue to oppose the Administration's efforts to reclassify thousands of jobs that are critical to our national security as not ``inherently governmental'' in nature in order make these jobs eligible to be contracted out.
I also want to especially note that because this omnibus appropriations bill comes to us in an unamendable form, there will not be a rollcall vote on the automatic, back door Member pay raise. As my colleagues know, that issue is germane to the Treasury-Transportation Appropriations bill and thus an amendment forcing a vote on the Member pay raise can be offered to that bill without being subject to a point of order. But, because the Treasury-Transportation bill has been folded into this omnibus package, no one will be able to offer an amendment to force a vote on what will be a roughly $4,000 pay raise that is scheduled to go into effect in January.
This is not the first time the Member pay raise has been shielded in this manner. In one instance, the Treasury-Postal bill was slipped into the conference report on the Legislative Branch appropriations bill, and thus completely shielded from amendment. And during 2002, the Senate did not consider the Treasury-Postal bill at all.
This makes getting a vote on the annual congressional pay raise a haphazard affair at best. And it should not be that way. No one should have to force a debate and public vote on the pay raise. On the contrary, Congress should have to act if it decides to award itself a hike in pay. This process of pay raises without accountability must end. I have introduced legislation to do just that, but until that legislation is enacted, Senate leadership should not shield the Treasury-Transportation appropriations bill from amendments.
Finally, let me join others in expressing my concern about inclusion of a provision in this bill that could reduce access to the full spectrum of reproductive health services. This provision is far too controversial to be shoved into a must-pass Government spending bill, especially when the committee with jurisdiction did not have a chance to consider it and the Senate did not have a chance to debate it.
Mr. President, the appropriations process needs reform. I have been pleased to join the Senator from New Mexico, Mr. Domenici in advocating biennial budgeting, and certainly we need to seriously consider that reform. I have also joined with my good friend, the Senator from Arizona, Mr. McCain, in advocating a change to Senate rules that would permit points of order to be raised against many of these extraneous, unauthorized earmarks, and this body should seriously consider that reform as well.
The Senate needs to act on those reforms and others before we consider another one of these giant, must-pass omnibus appropriations bills.
Mr. President, today, I am proud to introduce the HOPE Youth Pregnancy Prevention Act. While teen pregnancy rates in the United States have dropped significantly in the last decade, we still have one…
Mr. President, today, I am proud to introduce the HOPE Youth Pregnancy Prevention Act.
While teen pregnancy rates in the United States have dropped significantly in the last decade, we still have one of the highest rates among industrialized nations. American teens are twice as likely to become pregnant as teenagers in Great Britain and four times more likely than teens in Sweden and France. At the same time, the teen pregnancy rates for Hispanic and other minority teens in the United States are significantly higher than the national average.
The HOPE Youth Pregnancy Prevention Act would provide resources to help prevent teen pregnancy among at-risk and minority youth.
Specifically, my bill would provide grants to States, localities, and non-
governmental organizations for teenage pregnancy prevention activities targeted to areas with large ethnic minorities and other at-risk youth. These grants could be used for a number of activities, including youth development, work-related interventions and other educational activities, parental involvement, teenage outreach and clinical services. The bill would authorize $30 million a year for five years for these grants.
The bill would also provide grants to States and non-governmental organizations to establish multimedia public awareness campaigns to combat teenage pregnancy. These campaigns would aim to prevent teen pregnancy through TV, radio and print ads, billboards, posters, and the Internet. Priority would be given to those activities that target ethnic minorities and other at-risk youth. The bill would authorize $20 million a year for 5 years.
Over the past 10 years, we have made progress reducing teen pregnancy. But out work is not done. We need to strengthen our efforts, especially among Hispanic and other minority youth. I encourage my colleagues to support this effort.
Mr. President, last summer I visited Del Norte County--in the most northern part of my State. Del Norte County has been hit particularly hard during these tough economic times. Unemployment in the county tops 7.6 percent. Local officials are working hard to revitalize the economy, and one of their top priorities is to renovate Del Norte County's airport. And they would like federal assistance.
However, under the federal Airport Improvement Program, federal grants must be matched with local funds. In general, I support that policy. But, for communities facing severe economic problems, this match is prohibitive. It's a bit of a Catch-22. The Federal funds that would help the local economy rebound are not available because the local economy is in such bad shape that the community can't match the federal grants.
The bill that I am introducing today would address this by eliminating the match required under the Airport Improvement Program for economically depressed communities.
To be considered an economically depressed community, a community would have a variety of ways to quality. First, for the last two years, the unemployment rate could be one percent higher than the nation's unemployment rate. Second, the per capita income of the community could be 80 percent or less of the nation's per capita income. Or third, the Secretary of Transportation could decide that a particular community had a special needs. These criteria are consistent with other provisions of federal law.
I believe that by waiving the matching grant in communities that have a high unemployment rate or low per capita income, we will help to rejuvenate their business climate and reinvigorate their local economies.
With a little bit of help, I am very optimistic about the future of Del Norte County and other areas in California and across the Nation that are facing tough economic times. This bill will provide that little bit of help.
Mr. President, I am pleased to join Senator Specter in introducing the Wireless 411 Privacy Act of 2003.
About 150 million Americans subscribe to wireless telephone service. They rely on wireless service to stay in touch with friends, family, and the workplace. As a cellular phone user myself, I value the privacy of my wireless number. I want to have control over who can reach me on my cell phone.
However, the wireless phone industry is planning to list customers in a wireless phone directory starting sometime next year. The Specter- Boxer bill would protect consumers by providing them with the right not to have their cell phone number listed in the directory and the right not to be charged a fee for being unlisted.
As we saw with the strong consumer support for the right to keep a cell phone when you switch carriers, consumers consider their cell phone number their property. It is not the property of the carrier to hand out to whomever the carrier wishes, and the carrier should not be allowed to charge consumers for the right to keep that number private.
This is especially important when you consider that wireless users pay for both their incoming and outgoing calls. Having your number listed could easily lead to receiving calls that you did not want but for which you will have to pay. That seems wrong to me.
To date, the wireless phone industry has been unclear on how they will address these valid concerns when they move forward with their directory plans next year. To avoid any confusion or uncertainty, Congress must make clear to the cell phone companies that the rights of consumers to keep their cell phone numbers private is paramount.
Mr. President, today, I am introducing the ``Small Business State Mandated Health Insurance Assistance Act.''
The legislation would provide a tax credit to small businesses in states where the law mandates that they provide health insurance to their employees. The credit would be for 50 percent of the amount the employer spends providing health insurance for his or her employees.
In California 6.4 million people are uninsured. That's more than 18 percent of the state. To deal with the issue, the state legislature recently passed a law mandating that employers provide their workers with health insurance.
Many smaller businesses have told me that they do not object to the law itself, but that they will have a hard time financially complying with the mandate--especially in these tough economic times. Furthermore, there is concern that neighboring States without such a mandate will recruit our small businesses entrepreneurs to move to their states where they would not have to provide insurance for their workers.
While businesses can currently deduct from federal taxes, as costs of doing businesses, the costs of the health insurance provided to their employees, this assistance is simply not large enough to provide the help that small businesses truly need. That is why I am introducing this bill today. I encourage my colleagues to join me in this effort.
Mr. President, I rise today to introduce the Manufacturing Opportunities to Revitalize our Economy's JOBS Act, or the MORE JOBS Act. We are facing a manufacturing job crisis in this country, and that…
Mr. President, I rise today to introduce the Manufacturing Opportunities to Revitalize our Economy's JOBS Act, or the MORE JOBS Act. We are facing a manufacturing job crisis in this country, and that is why I am introducing this bill to help our U.S. manufacturers to create manufacturing jobs here at home.
Since January of 2001, the State of Michigan has faced devastating losses in the manufacturing sector. While the U.S. has lost 3.3 million private sector jobs--2.5 million in the manufacturing sector, Michigan has lost 162,300 manufacturing jobs. That is 18 percent of the state's manufacturing employment. In other words, 1 in 6 Michiganians has lost their manufacturing job in the last 2 years.
It is an unfortunate fact that Michigan is one of the leading states in the country in manufacturing job loss. Indeed, while the U.S. employment rate is around 6 percent, Michigan's unemployment rate is currently around 7.6 percent. In some parts of Michigan, the unemployment rate is as high as 12 percent.
The people of Michigan and the people of the United States need relief to help revitalize our economy. In the midst of these troubling times, we are faced with a new challenge: complying with a World Trade Organization (WTO) decision finding that our Foreign Sales Corporation (FSC) and Extraterritorial Income (ETI) tax code must be reformed to meet international trade law requirements. I understand that our colleagues on the Senate Finance Committee have been and continue to work diligently on this issue. Our country is one that plays by the rules and we will ultimately fix our tax code.
The tax benefits of the FSC and ETI, however, are valued at nearly $50 billion over 10 years. We cannot just take away these benefits to our American manufacturers without creating new tax relief for them. The practical effect of that would be a $50 billion tax increase. And, that is why we must create a new tax credit for our U.S. manufacturers.
The MORE JOBS Act that I am introducing today lays out a vision on how I believe we should reform the code. First of all it, it phases out the non-compliant FSC/ETI tax code over the next three years.
Then, to help our U.S. manufacturers, the bill creates a Manufacturers' Tax Credit for domestic companies. A company, under my proposal, would be allowed to deduct 9 percent of its domestic production income before it has to figure its tax liability. In effect, this would result in a new tax rate for our U.S. manufacturers that are 3 percent lower--32 percent instead of 35 percent. And, my bill would make this effective immediately, not phased in as others have suggested.
The credit would be extended to a wide array of companies: small businesses, large businesses and agricultural cooperatives. So whether it is a small furniture manufacturer in western Michigan, a tool and die company in Grand Rapids, or one of our automakers in metro Detroit, companies will be rewarded for their domestic production. And, our farmers will benefit, too.
I often say that we in Michigan pride ourselves on what we make and what we grow. These two activities are vital to a strong economy, and our farmers would also benefit under my bill.
Farmers themselves, if they have at least one employee, will directly benefit under my bill, since they qualify for the tax benefit as manufacturers. In addition, agricultural cooperatives would also receive this tax benefit. Farmers often belong to an agricultural cooperative which is covered under my bill. Agricultural cooperatives do the processing, handling, storing, and marketing for their members. For example, a farmer will sell his specialty crop to the cooperative. The cooperative then takes the farmer's crop and puts it with other farmers' produce and then stores and prepares the produce for sale to a food processing company. The coop passes its profits on to the members of the cooperative based on the amount of business each member does with the cooperative. So the tax benefits for the cooperative can be passed-through to farmer members of the coop.
Finally, one of the cornerstones of my legislation is that my bill would create incentives for companies to keep jobs in the U.S. and to bring more jobs to our country. The MORE JOBS Act would encourage companies to keep their manufacturing in the U.S. by basing the amount of their tax credit on how much of their manufacturing is done in the U.S. Companies that have all of their manufacturing in the U.S. would receive the full 3 percent tax credit. Companies that have much their manufacturing outside of the U.S. would receive a reduced credit in proportion to their U.S. manufacturing. While other proposals being circulated eventually eliminate this incentive, my bill would make this incentive permanent.
Why would we want to reward companies if they send their jobs overseas? We want to reward those who are contributing to our economy and putting Americans to work here at home.
I want to work closely with my colleagues to reform our manufacturing
tax code. In doing so, we will make our country stronger, our economy more resilient, and we can create millions of new good jobs in the manufacturing and agricultural sector. But we must do it carefully and with a priority on our U.S. manufacturing base. I urge my colleagues to support the MORE JOBS Act.
Mr. President, I have frequently reiterated my conviction that investment in transportation is a means to an end. Our national transportation policy must be designed to serve the public good. In my…
Mr. President, I have frequently reiterated my conviction that investment in transportation is a means to an end. Our national transportation policy must be designed to serve the public good. In my view, the outcomes we seek are a strong economy, safe and healthy communities, and a clean environment. A balanced transportation system, including a strong freight and passenger rail system, is necessary for us to attain these goals.
As ranking member of the Committee on Environment and Public Works, I have been highly involved in the Senate's effort to reauthorize the nation's surface transportation program. Over the past two years, I have traveled around the country, visiting local examples of national transportation challenges. I have heard critiques and suggestions from dozens of transportation officials, users, and advocates.
In order to best serve the needs of this country, we must redouble our investment in an efficient, intermodal transportation system. I have often expressed my view that the success of our surface transportation program rests on four fundamental `pillars':
First, asset management. We must maintain and preserve existing infrastructure. Second, we must enhance access and mobility, particularly for Americans living in our most congested urban areas.
The third pillar is freight and trade. We need new and improved facilities to accommodate the quantity of goods moving through our system.
Fourth, I believe that rail is the final component of a successful surface transportation system. We are not currently meeting the nation's freight and passenger rail needs. We must invest in a modern national rail system, comparable to our highway and aviation systems. The bill that we are introducing today will help us achieve that goal.
The American Railroad Revitalization, Investment, and Enhancement
Act of the 21st Century (ARRIVE 21) strives to provide sustainable, meaningful, and continuous funding opportunities for states that want to improve and expand their rail systems. Currently, the federal government provides few funding sources to assist states in their efforts to maintain and improve freight and passenger rail service. This bill creates a nonprofit, public-private partnership--the Rail Infrastructure Finance Corporation (RIFCO)--with the authority to issue $30 billion in tax-credit bonds over six years. With the resulting revenue, RIFCO will award capital grants to states and to Amtrak.
My State of Vermont has long displayed a commitment to maintaining an effective and efficient freight and passenger rail system. This legislation would provide Vermont a significant new source of revenue to fund capital projects such as rail line rehabilitation, safety and security projects, and development of intermodal facilities. In fact, grants awarded by RIFCO could be used to reimburse States for the capital investments they've already made, a provision that is particularly helpful to States, like Vermont, that have invested State money into eligible projects.
For Amtrak, this legislation introduces financial and policy commitments to dramatically improve passenger rail service in this country. We envision a future that includes a healthy and efficient passenger rail system and provide the resources to move Amtrak in that direction.
ARRIVE 21 authorizes approximately $1.5 billion per year, for six years, for capital and operating expenses. We have under-funded Amtrak for too long. This funding level will provide Amtrak the resources it needs to address urgent infrastructure needs and system-wide service improvements.
Amtrak will also benefit from provisions in this bill that encourage long-term sustainability and enhanced operations. ARRIVE 21 requires improved accounting procedures and oversight. Additionally, states that currently share responsibility with Amtrak for supporting services through or within their states will see changes to equalize their cost burden. This bill requires that Amtrak, in collaboration with the Department of Transportation, adopt fair and uniform standards for cost sharing on short-distance services that states contract with Amtrak to provide.
ARRIVE 21 also directs an independent study to research Amtrak's current and past procedures for determining intercity passenger rail routes and services. The study will recommend changes to that process to improve the efficiency, accessibility, and effectiveness of our national rail service.
I have long been a strong advocate for rail. I firmly believe that nation-wide investment in freight and passenger rail infrastructure will invite rewards in the form of reduced congestion, improved environmental quality, and improved mobility options for our nation's travelers. ARRIVE 21 encourages States, and the Federal Government, to more fully integrate freight and passenger rail into the surface transportation system. Improved rail planning policy, at both the Federal and State levels, will enhance the efficiency and longevity of our transportation system and will promote safe, efficient, and environmentally sound transportation options.
Mr. President, today I am introducing legislation to bolster efforts to restore the Anacostia River. Joining me in sponsoring this measure are my colleagues Senators Landrieu, Mikulski and Allen. A…
Mr. President, today I am introducing legislation to bolster efforts to restore the Anacostia River. Joining me in sponsoring this measure are my colleagues Senators Landrieu, Mikulski and Allen. A companion bill has also been introduced in the House, sponsored by Representative Eleanor Holmes Norton and other members of the Washington metropolitan area Congressional Delegation.
Mr. President, the Anacostia River is a resource rich in history and with tremendous natural resources and recreational potential. It is homes to 43 species of fish, some 200 species of birds, as well as more than 800,000 people whose neighborhoods border the watershed. Flowing through Montgomery and Prince George's Counties in Maryland and emptying into the Potomac at the District of Columbia, the watershed consists of a 176-square-mile drainage area. One of the most urbanized watersheds in the United States, the Anacostia suffers a series of problems including trash, toxic pollution from urban runoff, sewage pollution from leaking sewer lines and combined sewer overflows, sediment pollution from erosion, and loss of fish and wildlife and recreational resources. It is a resource that has long been abused and neglected, but one that, in my view, can and must be protected and restored.
Efforts to begin rejuvenating the Anacostia watershed began formally in 1987 when the State of Maryland, Montgomery and Prince George's Counties, and the District of Columbia signed an Anacostia Watershed Restoration Agreement. The agreement authorized the Washington Area Council of Governments, COG, to manage the restoration program and the Interstate Commission on the Potomac River Basin, ICPRB, to protect the resources and facilitate public participation. COG created an Anacostia Watershed Restoration Committee, AWRC, to coordinate and implement restoration projects throughout the watershed. Since that time, local, State, and Federal Government agencies, as well as the Anacostia Watershed Society, the Anacostia Citizens Advisory Committee and other environmental organizations and dedicated private citizens have contributed significant resources toward re-establishing the Anacostia watershed ecosystem.
Thanks to this cooperative and coordinated Federal, State, local and private effort, we are beginning to make some progress in restoring the watershed. A Six Point Action Plan was signed in 1991 setting ambitious and broad-reaching goals for the river's restoration. In 1993 we celebrated the successful restoration of 32 acres of emergent tidal wetlands by the Army Corps of Engineers at Kenilworth marsh. The project has shown significant results in improving tidal water flow through the marsh, and reducing the concentration of nitrogen and phosphorus in the area and demonstrates what can be achieved in urban river restoration. There have been other success stories as well in urban stream restoration in Montgomery and Prince George's counties, removing barriers to fish passage and reforestation efforts throughout the watershed, to name only a few. In 1999, a new Anacostia Watershed Agreement was signed to strengthen the regional governmental commitment to Anacostia restoration. There are today more than 60 local, State and Federal agencies involved in Anacostia watershed restoration. And more than $100 million has been spent cleaning up the river. There is clearly much for which we can all be proud. But the job of restoring the Anacostia watershed is far from complete. The Anacostia is still one of North America's most endangered and threatened rivers. It is designated one of three ``regions of concern'' for toxics in the Chesapeake Bay watershed.
The legislation which we are introducing authorizes more than $200 million in Federal assistance over the next 10 years to restore the Anacostia. Of these funds, $170 million is authorized to address the biggest pollution problems in the watershed--stormwater runoff and failing wastewater infrastructure. As the builder of much of the original infrastructure and a major user, the Federal Government has an important responsibility to help stem the flow of this pollution and comply with the Clean Water Act. The remaining funds will allow the administrator of EPA, working together with an ``Anacostia Watershed Council'' of State and local officials, to develop a comprehensive environmental protection and resource management plan for the watershed, for several Federal agencies to join in the implementation of the plan.
Mr. President, the Anacostia River suffers from centuries of impacts and changes. Once a healthy, thriving river, it is today severely degraded. This legislation is urgently needed if we are to achieve the goal of making the Anacostia and its tributaries swimmable and fishable again. I urge my colleagues to join me in supporting this measure and ask unanimous consent that a section-by-section analysis of the legislation be printed in the Record.
Mr. President, it wasn't all that long ago that a good education consisted of providing our children with a strong background in reading, writing and arithmetic skills, mixed with an understanding of…
Mr. President, it wasn't all that long ago that a good education consisted of providing our children with a strong background in reading, writing and arithmetic skills, mixed with an understanding of history and a good hard look at civics and how our government works. We thought, if our sons and daughters had taken courses in those subjects and mastered them, they were as prepared as they could be to face the real world, get good jobs, and one day, live happily ever after. Unfortunately, we left one vital skill out of the mix.
As an accountant, I have become increasingly concerned about the lack of knowledge we have as a society, and especially, the lack of insight we share with our children about money and how to properly handle it, budget it, and use it to plan for their retirement. The numbers are quite startling when you take a close look at how many of our children are leaving college already saddled with credit card debt and school loans that need to be repaid. It wasn't like that when many of us were in college. School didn't seem to cost nearly as much as it does now, and the scourge of a strong economy, easily available credit, hadn't reached the ranks of our schools yet.
This is a problem at the present time, but if we don't act quickly to make sure our Nation's young people receive the advice and education they need on handling money and planning their finances for the future, we will have a disaster on our hands. Young men and women, in their prime earning years, are facing a mountain of personal debt at high interest rates, with little hope of paying it off anytime soon. Clearly, that is something we must take every action to help future generations of students avoid.
That is why I am introducing the Financial Literacy in Higher Education Act with my colleague, Senator Akaka. Senator Akaka and I share many of the same ideas with respect to the importance of financial literacy and ensuring our children have a grasp of the implications of their actions when they use the credit they have been extended by banks eager to make quick loans at high interest rates. Senator Akaka and I worked together on language included in the No Child Left Behind Act to ensure elementary and secondary students would have more access to financial literacy training that we hope will make our children wiser and better users of consumer credit.
This bill builds on the activities we helped authorize in No Child Left Behind. It emphasizes financial literacy for students enrolled in institutions of higher education, or students who will soon be enrolled. With the training and real life advice they will receive in these courses we will be able to reduce the number of our children who leave high school and head out into the world on their own with little or no preparation for the demands that will be placed on their limited incomes.
Our legislation would include financial literacy and personal finance in the list of permissible activities of several programs authorized under the Higher Education Act. These programs are set up to support students, and I believe financial literacy should be an important aspect of the support process. Attending college is a necessary step that must be taken if our young adults are to succeed in the work force, and learning how to make a personal budget and meet individual financial obligations should be a priority in that process.
Our bill would also emphasize financial literacy in exit counseling for college students receiving federal student financial assistance. Today's undergraduate students are leaving school with an average of nearly $17,000 in student loan obligations. This can be a large burden to bear, but it becomes impossible to address if a young man or woman is unable to successfully manage their own finances.
The answer to this challenge is to start educating students before they experience financial difficulty. Students who are faced with the possibility of accruing larger and larger levels of debt must be taught the full meaning and significance of concepts as simple as compound interest, credit scores, and minimum payments. That way, when they leave school with their lives before them, they will be able to plan how to pay back their student loans, and keep credit card debt to a minimum. Taking the initiative while these students are in school will help them avoid some of the serious problems that can develop when someone has little or poor financial skills. These problems can literally have lifelong implications for those who overextend their resources or fail to learn to live within the limits of a budget.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I rise today to introduce the Wireless Consumer Privacy Protection Act. As every Senator is aware, consumers today rely on their wireless telephones as a vital and important means of…
Mr. President, I rise today to introduce the Wireless Consumer Privacy Protection Act.
As every Senator is aware, consumers today rely on their wireless telephones as a vital and important means of communication. Wireless telephones enable families to stay connected, permit commerce to be conducted anywhere at any time, and provide a vital link in the event of an emergency. Some people have even abandoned traditional telephones and now use their wireless phones as their primary phone service. In fact, just this month, the Federal Communications Commission began requiring number portability for wireless phones so that consumers, if they wish, can make their wireless phone their only phone.
The wireless industry is on the verge of introducing a ``wireless white pages'' service, and though this step could have positive benefits, it raises concerns about how consumers' expectation of privacy will be protected. The
legislation I am introducing today along with Senator Boxer ensures that consumers expectations will be preserved.
An important reason that Americans increasingly trust their cell phone service is that they have a great deal of privacy on their cell phone numbers. For more than 20 years of cellular service, consumers have become accustomed to not having their wireless phone numbers available to the public. The protection of wireless telephone number is important. For example, wireless customers are typically charged for incoming calls. Without protections for wireless numbers, subscribers could incur large bills, or use up their allotted minutes of use, simply by receiving calls they do not want--from telemarketers and others. Because consumers often take their cell phones with them everywhere, repeated unwanted calls are particularly disruptive, and may even present safety concerns for those behind the wheel.
It may surprise my colleagues that today, no federal or state law or regulation prohibits a carrier from divulging your wireless telephone number. And with the industry poised to introduce wireless director assistance services, it is important for Congress to act now to preserve the expectation of privacy that consumers have in their wireless phone numbers. Because wireless directory assistance offer great benefits as well as posing significant privacy concerns, the legislation I am introducing today strikes an important balance. It enables those consumers who want to be reached to be accessible, while providing privacy protections that are important to consumers.
First, this legislation permits wireless subscribers to choose not to be listed in wireless directory assistance databases. This feature gives consumers the ultimate ability to keep their numbers entirely private. Second, for those in the directory assistance database, the bill requires wireless providers to use systems that give users privacy protections and control over the use of their wireless numbers. These services must not divulge a subscriber's wireless number (unless the subscriber consents to disclosure), the service must provide identifying information to the wireless subscriber so that the subscriber knows who is calling through the forwarding service, and the service must give a subscriber the option of rejecting or accepting each incoming call. Finally, this legislation prohibits wireless carriers from charging any special fees to consumers who wish to receive the privacy protections provided by the bill. Customers should not have to pay extra for the privacy protections that they have come to expect. There should be no ``privacy tax'' for consumers to continue the privacy protection they have long enjoyed, and this bill ensures that will be the case.
I urge my colleagues to join me in supporting this important legislation. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I am proud to be a cosponsor of ARRIVE-21. I believe rail is a vital component of our national transportation system, and investment in our Nation's rail infrastructure is necessary…
Mr. President, I am proud to be a cosponsor of ARRIVE-21. I believe rail is a vital component of our national transportation system, and investment in our Nation's rail infrastructure is necessary for our economy, our security, and the effective and safe movement of people and goods in our country.
The importance of rail service became apparent in the Northeast long ago, as we dealt with the myriad transportation planning and congestion issues that many other States are now just facing. These States are joining us Northeasterners in looking to the Federal Government to provide the leadership needed to ensure that passenger rail is given the priority it deserves.
It took Federal money, not just gasoline taxes, to build the Dwight D. Eisenhower Interstate Highway System. It took Federal money to build our national aviation system.
Here in the Northeast, the first part of the country to become densely populated, we faced congestion problems long ago, and passenger rail service became a mainstay. In the Northeast, we rely heavily on Amtrak's high-speed service between Boston and Washington, D.C. The Northeast Corridor serves cities with four of the Nation's seven most congested airports: Logan, LaGuardia, Newark, and Reagan National. Amtrak carries more passengers between New York and Washington than all of the airlines combined and, unlike airline passengers, rail travelers are able to stop in Trenton and Newark, New Jersey, and in other places along the way.
Next month, New Jersey Transit will open for service a new rail station in Secaucus, NJ. As a result of this opening, more than 15,000 cars will be diverted from our roads each day by 2010. That will reduce carbon monoxide emissions by nearly 277,000 pounds each year. New Jersey riders who switch to rail because of this one station will cut their gasoline consumption by 1.3 million gallons each year.
Also, in this post-9-11 environment we have a new perspective about the national security interest in ensuring that there is more than one way to get from here to there, and this includes passenger rail. September 11 underscored just how important passenger rail is to America's economy and security.
New Jersey's economy is so dependent on passenger rail and mass transit as a result of being the most densely populated State in the Nation. New Jersey needs federal assistance for passenger rail infrastructure. But New Jersey is not alone. As metropolitan areas across the country continue to swell with people, our roads and airports become more and more congested. I think the prudence of increasing our investment in another way to move people--passenger rail--has become more and more obvious. And ARRIVE-21 provides this investment opportunity.
The benefits of rail service are not limited to urban areas. In rural towns across America, passenger trains may be the only option for intercity travel for many people.
From 1987 through 2000, I was the Chairman or Ranking Member of the Senate Appropriations Subcommittee on Transportation. During that time, I helped to secure 10.3 billion dollars in operating funds for AMTRAK and an additional 2.2 billion dollars in tax-advantaged financing for capital improvements. Unfortunately, during that time, we have not been able to make the capital investments necessary to bring Amtrak's infrastructure up to a state of good repair.
ARRIVE-21 gives the Federal Government the impetus to step up and take charge with a strong program to invest in our rail infrastructure. The States are interested, the traveling public is interested. This kind of investment will lay the tracks for the future of all Americans to have travel options, provide a national security role, and support our economy.
For these reasons, I am proud to cosponsor ARRIVE-21.
Mr. President, unfortunately, in the Omnibus bill, the Republican leadership blocked Senator Harkin's amendment to repeal the administration's rule that denies overtime protections to 6 million…
Mr. President, unfortunately, in the Omnibus bill, the Republican leadership blocked Senator Harkin's amendment to repeal the administration's rule that denies overtime protections to 6 million workers. Bipartisan majorities in the House and Senate strongly supported the Harkin amendment and it was part of our Senate bill.
In fact, the Senate has voted four times to block the Bush overtime rule, and the House has voted twice to block it. Yet, the Republican leadership keeps refusing to accept the will of Congress and the will of the American people. Instead, it continues its unfair assault on America's workers and their right to overtime pay.
In today's economy, workers are obviously concerned about losing their jobs, their pay, their health benefits, their retirement benefits, and their unemployment checks. Now more than 6 million employees also have to worry about losing their higher pay for working overtime.
These men and women are nurses. They are police officers. They are school teachers. They are long-term care workers. They are assistants in mental health facilities.
Make no mistake, overtime cuts are pay cuts. When workers lose their overtime pay protection, they still work longer hours, but they get no extra pay for doing so, even though they have had the right to time- and- a-half pay for overtime work ever since the 1930s.
Clearly, we need a policy to create more jobs, not eliminate jobs. By taking away workers' right to overtime, the administration's rule undermines job creation, since it allows businesses to require employees to work longer hours for no extra pay, rather than hire new workers.
Pure and simple, denying overtime is a thinly veiled cut in workers' pay and boost employers' profits. In this troubled economy, it makes no sense to ask any workers anywhere in America to give up their overtime pay.
Instead of making hard-working men and women work longer hours for less pay, businesses should create new jobs by hiring more employees to do the work.
We know that employees across America are already struggling hard to balance their family needs and their work responsibilities. Requiring them to work longer hours for less pay will impose an even greater burden in this daily struggle.
According to the Families and Work Institute, two of the most important things that children would most like to change about their parents are that they wish their parents were less stressed out by their work, and they wish they could spend more time with their parents.
The General Accountability Office says that employees without overtime protection are twice as likely to work overtime as employees covered by the protection. In other words, businesses don't hesitate to demand longer hours, as long as they don't have to pay higher wages for the work.
Protecting the 40-hour workweek is vital to protecting the work- family balance for millions of Americans in communities in all parts of the Nation. The last thing Congress should be doing is to allow the new antiovertime rule to make the balance worse for workers than it already is.
Congress cannot look the other way while more and more Americans lose their jobs, their livelihoods, their homes, and their dignity. Denying overtime pay rubs salt in the wounds of this troubled economy. Denying the will of Congress and the American people in this Omnibus bill doesn't settle the issue. This battle is far from over. The fight will continue until workers' overtime rights are restored.
Mr. President, by adopting the Medicare Conference Report today, the Senate has done great harm to one of our most successful and important social programs. As I have said over the past week, I…
Mr. President, by adopting the Medicare Conference Report today, the Senate has done great harm to one of our most successful and important social programs. As I have said over the past week, I believe that this will not be the end of the issue. I believe this is just the end of the first chapter.
And I predict that the call from beneficiaries and future beneficiaries to repair this damage will be so loud that Congress will be compelled to act. We are hearing already from seniors in South Dakota and all across the country. For that reason, I am introducing today the Medicare Preservation and Drug Price Fairness Act. It is only a first step in addressing some of the many problems in the Republican Medicare bill--but it is an important step.
This summer, the Senate passed a prescription drug bill. It was not perfect. But it was a start at providing the most necessary reform Medicare needs--covering prescription drugs for the program's 41 million beneficiaries. And I reluctantly supported it.
What came back from the Conference was no longer a bill to add a drug benefit to Medicare. It was a vehicle for Republicans to harm Medicare under the guise of ``reforms.''
I am introducing a bill today to address some of the main weaknesses in the Conference bill. It will not be the last of these bills introduced. And it does not repair all of the damage done to Medicare by the Conference bill.
The bill I introduce today is simply an initial effort to carve out some of the more egregious provisions of the Conference bill. It does not address the critical issues of the 2.7 million retirees who will lose their good coverage or the 6 million of the lowest-income seniors who will be worse off than they are now. It does not address the inadequacy of the drug benefit itself. We will come back to those issues in the near future.
The Medicare Preservation and Drug Price Fairness Act is a start toward righting the wrongs done to Medicare today. It repeals the language in the Republican bill that prohibits Medicare from negotiating lower prices on behalf of beneficiaries. It repeals the highly controversial ``premium support'' demonstration projects that would force beneficiaries who do not want to join an HMO to pay higher premiums. It ensures that the guaranteed Medicare fallback is triggered whenever there are not two stand-alone drug plans available in an area so that seniors are not forced to join an HMO if the one that is available to them is priced too high. It repeals the $12 billion slush fund giveaway to HMOs and the $6 billion tax shelters for the wealthy and healthy. And, unlike the Republican bill, it allows Americans to obtain US-made drugs at lower prices safely from other industrialized countries.
I noted earlier today when we voted on the Conference Report that there were few, if any, seniors looking on expectantly from the gallery. And in fact, we have heard from them in large numbers that they do not support the Conference bill. In contrast, the lobbies were full of well-tailored lobbyists--and the big drug companies and the HMOs are the ones celebrating the passage of the Conference bill. The Republicans got it backwards. The Medicare Preservation and Drug Price Fairness Act is a first step toward the bill Congress should have passed--a bill that truly benefits America's seniors.
Bill Text
Latest available legislative text
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1977 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1977
To promote the manufacturing industry in the United States by
establishing an Assistant Secretary for Manufacturing within the
Department of Commerce, an Interagency Manufacturing Task Force, and a
Small Business Manufacturing Task Force, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 25, 2003
Ms. Snowe (for herself and Mr. Voinovich) introduced the following
bill; which was read twice and referred to the Committee on Small
Business and Entrepreneurship
_______________________________________________________________________
A BILL
To promote the manufacturing industry in the United States by
establishing an Assistant Secretary for Manufacturing within the
Department of Commerce, an Interagency Manufacturing Task Force, and a
Small Business Manufacturing Task Force, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Small
Manufacturers Assistance, Recovery, and Trade Act'' or ``SMART Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--MANUFACTURING AND TRADE REPRESENTATIVES AND TASK FORCE
Sec. 101. Assistant Secretary of Commerce for Manufacturing.
Sec. 102. Interagency Manufacturing Task Force.
Sec. 103. Assistant United States Trade Representative for Small
Business.
TITLE II--SMALL BUSINESS ADMINISTRATION
Subtitle A--Manufacturing and Entrepreneurial Development
Sec. 201. Small Business Manufacturing Task Force.
Sec. 202. Entrepreneurial development programs and services.
Subtitle B--Small Business Loan Programs
Sec. 211. Increased loan amounts for exporters.
Sec. 212. Debenture size.
Sec. 213. Job creation or retention standards.
Sec. 214. Clarification of maximum surety bond guarantee.
Subtitle C--International Trade
Sec. 221. Office of International Trade.
TITLE I--MANUFACTURING AND TRADE REPRESENTATIVES AND TASK FORCE
SEC. 101. ASSISTANT SECRETARY OF COMMERCE FOR MANUFACTURING.
(a) Establishment.--There shall be in the Department of Commerce,
in addition to the Assistant Secretaries of Commerce provided by law as
of the date of enactment of this Act, 1 additional Assistant Secretary
of Commerce, to be known as the Assistant Secretary of Commerce for
Manufacturing, who shall--
(1) be appointed by the President, by and with the advice
and consent of the Senate; and
(2) be compensated at the rate of pay provided for under
level IV of the Executive Schedule (5 U.S.C. 5315).
(b) Duties.--The Assistant Secretary of Commerce for Manufacturing
shall--
(1) identify and address the concerns of manufacturers;
(2) represent and advocate for the interests of United
States manufacturers;
(3) aid in the development of policies that promote the
vitality and expansion of United States manufacturing;
(4) review policies that adversely impact manufacturers;
(5) identify and address issues that are unique to small
manufacturers and those that are exacerbated by the size or
limited capital of small manufacturers; and
(6) perform such other duties as the Secretary of Commerce
may prescribe.
(c) Reporting Requirements.--The Assistant Secretary of Commerce
for Manufacturing shall submit to Congress an annual report that
contains--
(1) an overview of the state of the manufacturing sector in
the United States;
(2) a forecast of the future state of the manufacturing
sector in the United States; and
(3) an analysis of current and significant laws,
regulations, and policies that adversely impact the
manufacturing sector in the United States.
(d) Technical and Conforming Amendment.--Section 5315 of title 5,
United States Code, is amended by striking ``Assistant Secretaries of
Commerce (11)'' and inserting ``Assistant Secretaries of Commerce
(12)''.
SEC. 102. INTERAGENCY MANUFACTURING TASK FORCE.
(a) Establishment.--There is established an Interagency
Manufacturing Task Force (referred to in this section as the ``IMTF'')
for the purposes of--
(1) maximizing the efforts and resources of Federal
agencies in assisting the manufacturing industry;
(2) improving interagency cooperation in their efforts to
assist the manufacturing industry;
(3) encouraging additional efforts to assist United States
manufacturers;
(4) coordinating the agencies' efforts to assist the
manufacturing industry; and
(5) identifying and addressing collective manufacturing
concerns.
(b) Membership.--The IMTF shall be composed of 14 members,
including--
(1) the Assistant Secretary of Commerce for Manufacturing,
who shall serve as chair of the IMTF;
(2) a representative of the Department of the Treasury, to
be designated by the Secretary of the Treasury;
(3) a representative of the Department of Defense, to be
designated by the Secretary of Defense;
(4) a representative of the Department of Education, to be
designated by the Secretary of Education;
(5) a representative of the Department of Energy, to be
designated by the Secretary of Energy;
(6) a representative of the Department of Health and Human
Services, to be designated by the Secretary of Health and Human
Services;
(7) a representative of the Department of Homeland
Security, to be designated by the Secretary of Homeland
Security;
(8) a representative of the Department of Labor, to be
designated by the Secretary of Labor;
(9) a representative of the Environmental Protection
Agency, to be designated by the Administrator of the
Environmental Protection Agency;
(10) a representative of the Office of the United States
Trade Representative, to be designated by the United States
Trade Representative;
(11) a representative of the Small Business Administration,
to be designated by the Administrator of the Small Business
Administration;
(12) a representative of the Executive Office of the
President, to be designated by the President; and
(13) 2 additional members, to be designated by the
President.
(c) Duties.--Under the direction of the Assistant Secretary of
Commerce for Manufacturing, the IMTF shall--
(1) provide advice and counsel to the President and
Congress on matters of importance to manufacturers;
(2) monitor, coordinate, and promote the plans, programs,
and operations of the departments and agencies of the Federal
Government that may contribute to the growth of the United
States manufacturing industry;
(3) develop and promote new public sector initiatives,
policies, programs, and plans designed to foster the
manufacturing industry;
(4) review, monitor, and coordinate plans and programs
developed in the public sector, which affect the ability of
manufacturers to obtain capital, credit, and access to
technology;
(5) identify and address regulations that are needlessly
burdensome on manufacturers; and
(6) design a comprehensive plan for a joint public-private
sector effort to facilitate the growth and development of the
United States manufacturing industry.
(d) Meetings.--
(1) Frequency.--The IMTF shall meet not less than 4 times
per year to perform the duties under subsection (c).
(2) Quorum.--A majority of the members of the IMTF shall
constitute a quorum to approve recommendations or reports.
(e) Personnel Matters.--
(1) Compensation of members.--
(A) Federal employees.--Each member of the IMTF who
is an officer or employee of the Federal Government
shall serve without compensation in addition to that
received for services rendered as an officer or
employee of the United States.
(B) Other members.--Each member of the IMTF who is
not an officer or employee of the Federal Government
shall be compensated at a rate equal to the daily
equivalent for level IV of the Executive Schedule (5
U.S.C. 5315) for each day (including travel time)
during which such member is engaged in the performance
of the duties of the IMTF.
(2) Travel expenses.--The members of the IMTF shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of Federal
agencies under subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or regular place of
business in the performance of services for the IMTF.
(3) Detail of federal employees.--Any employee of the
Federal Government may be detailed to the IMTF without
reimbursement, and such detail shall be without interruption or
loss of civil service status or privilege.
(f) Reports.--
(1) Findings and recommendations.--Not later than 1 year
after the date of enactment of this Act, and annually
thereafter, the IMTF shall submit a report containing the
findings and recommendations described in paragraphs (1)
through (5) of subsection (c) to--
(A) the President;
(B) the Committee on Small Business and
Entrepreneurship of the Senate; and
(C) the Committee on Small Business of the House of
Representatives.
(2) Growth plan.--Not later than 1 year after the date of
enactment of this Act, the Assistant Secretary of Commerce for
Manufacturing shall submit the plan prepared pursuant to
subsection (c)(6) to--
(A) the President;
(B) the Committee on Small Business and
Entrepreneurship of the Senate; and
(C) the Committee on Small Business of the House of
Representatives.
SEC. 103. ASSISTANT UNITED STATES TRADE REPRESENTATIVE FOR SMALL
BUSINESS.
Section 141(c) of the Trade Act of 1974 (19 U.S.C. 2171(c)) is
amended by adding at the end the following:
``(6)(A) There is established within the Office the position of
Assistant United States Trade Representative for Small Business, which
shall be appointed by the United States Trade Representative.
``(B) The Assistant United States Trade Representative for Small
Business shall--
``(i) promote the trade interests of small businesses,
including manufacturers;
``(ii) identify and address foreign trade barriers that
impede small business exporters;
``(iii) enforce existing trade agreements beneficial to
small businesses;
``(iv) maintain an open line of communication with the
Small Business Administration concerning small business trade
issues;
``(v) ensure that small business concerns are considered in
trade negotiations and agreements; and
``(vi) perform such other duties as the United States Trade
Representative may direct.
``(C) The Assistant United States Trade Representative for Small
Business shall be paid at the level of a member of the Senior Executive
Service with equivalent time and service.''.
TITLE II--SMALL BUSINESS ADMINISTRATION
Subtitle A--Manufacturing and Entrepreneurial Development
SEC. 201. SMALL BUSINESS MANUFACTURING TASK FORCE.
(a) Establishment.--The Administrator of the Small Business
Administration (referred to in this subtitle as the ``Administrator'')
shall establish a Small Business Manufacturing Task Force (referred to
in this section as the ``Task Force'') to address the concerns of small
manufacturers.
(b) Membership.--
(1) In general.--The Task Force shall be composed of a
representative from--
(A) the Office of Capital Access;
(B) the Office of Entrepreneurial Development;
(C) the Office of Administration and Management;
(D) the Office of Government Contracting and
Business Development; and
(E) any other employee of the Small Business
Administration, on a temporary basis, as determined
necessary by the Administrator to carry out the goals
of the Task Force.
(2) Chair.--The Administrator shall assign a member of the
Task Force to serve as chair of the Task Force.
(c) Duties.--The Task Force shall--
(1) evaluate and identify whether programs and services are
sufficient to serve the needs of small manufacturers;
(2) ensure that the Small Business Administration
implements the small business manufacturing training programs
established under section 202;
(3) actively promote the programs and services of the Small
Business Administration that serve small manufacturers; and
(4) identify and study the unique conditions facing small
manufacturers and develop and propose policy initiatives to
support and assist small manufacturers.
(d) Meetings.--
(1) Frequency.--The Task Force shall meet not less than 4
times per year, and more frequently if necessary to perform its
duties.
(2) Quorum.--A majority of the members of the Task Force
shall constitute a quorum to approve recommendations or
reports.
(e) Personnel Matters.--
(1) Compensation of members.--Each member of the Task Force
shall serve without compensation in addition to that received
for services rendered as an officer or employee of the United
States.
(2) Detail of sba employees.--Any employee of the Small
Business Administration may be detailed to the Task Force
without reimbursement, and such detail shall be without
interruption or loss of civil service status or privilege.
(f) Report.--Not later than 1 year after the date of enactment of
this Act, and annually thereafter, the Task Force shall submit a report
containing the findings and recommendations of the task force to--
(1) the President;
(2) the Committee on Small Business and Entrepreneurship of
the Senate; and
(3) the Committee on Small Business of the House of
Representatives.
SEC. 202. ENTREPRENEURIAL DEVELOPMENT PROGRAMS AND SERVICES.
(a) Manufacturing Outreach and Training Programs.--The Office of
Entrepreneurial Development of the Small Business Administration shall
develop new outreach and training programs for small manufacturers and
small businesses in the manufacturing supply chain, in partnership with
1 or more of the following:
(1) The Manufacturing Extension Partnership.
(2) Community economic development organizations.
(3) Small Business Development Centers.
(4) The Service Corps of Retired Executives.
(5) Women's Business Centers.
(b) Reporting Requirement.--The Small Business Administration shall
include ``manufacturing'' as a category on the scorecard that tracks
the goals of the Small Business Administration on its annual
performance report to Congress.
(c) Manufacturing Workshops.--The Office of Entrepreneurial
Development of the Small Business Administration, in consultation with
manufacturing and economic development organizations, shall develop
workshops to be conducted by district offices, in conjunction with the
entities listed in paragraphs (1) through (5) of subsection (a),
addressing--
(1) product design and testing;
(2) the patent process;
(3) prototype demonstrations;
(4) product production;
(5) market research; and
(6) business financing.
(d) SCORE.--The Service Corps of Retired Executives shall--
(1) make their counseling services available to small
manufacturers and exporters through their on-line counseling
services and community-based offices;
(2) recruit counselors with manufacturing and international
trade expertise; and
(3) develop additional partnerships with manufacturing and
exporting organizations.
(e) Entrepreneurial Development Program Improvements.--The Office
of Entrepreneurial Development of the Small Business Administration
shall develop programs and services to strengthen small business
vendors and suppliers that participate in the manufacturing supply
chain.
(f) Simplified Reporting Requirements.--The Small Business
Administration shall review and simplify, as appropriate, its reporting
requirements for the Small Business Development Centers, the Service
Corps of Retired Executives, and Women's Business Centers so that these
organizations can maximize the time spent assisting their clients.
(g) District Offices.--The Small Business Administration shall
provide district offices with adequate resources, including budget
allocations for travel and materials used to conduct outreach and
training activities.
Subtitle B--Small Business Loan Programs
SEC. 211. INCREASED LOAN AMOUNTS FOR EXPORTERS.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is
amended--
(1) in paragraph (3)--
(A) in subparagraph (A), by inserting before the
semicolon at the end the following: ``and paragraph
(14)''; and
(B) in subparagraph (B), by striking ``$1,250,000''
and inserting ``$1,300,000''; and
(2) in paragraph (14), by adding at the end the following:
``(D) The total amount of financings under this paragraph
that are outstanding and committed (by participation or
otherwise) to the borrower from the business loan and
investment fund established under this Act may not exceed
$1,300,000 and the gross loan amount under this paragraph may
not exceed $2,600,000.''.
SEC. 212. DEBENTURE SIZE.
Section 502(2) of the Small Business Investment Act of 1958 (15
U.S.C. 696(2)) is amended--
(1) by striking ``$1,300,000'' and inserting
``$2,000,000''; and
(2) by inserting before the period at the end the
following: ``, and loans for which the loan proceeds will be
directed toward manufacturing projects, which shall be limited
to $4,000,000 for each such identifiable small business
concern''.
SEC. 213. JOB CREATION OR RETENTION STANDARDS.
Section 501 of the Small Business Investment Act of 1958 (15 U.S.C.
695) is amended by adding at the end the following:
``(e) Job Creation or Retention for Manufacturing Projects.--A
manufacturing project being funded by the debenture is deemed to
satisfy the job creation or retention requirement under subsection
(d)(1) if the project creates or retains 1 job opportunity for every
$100,000 guaranteed by the Administration.''.
SEC. 214. CLARIFICATION OF MAXIMUM SURETY BOND GUARANTEE.
Section 411(a)(1) of the Small Business Investment Act of 1958 (15
U.S.C. 694b(a)(1)) is amended by striking ``contract up to'' and
inserting ``total work order or contract amount at the time of bond
execution that does not exceed''.
Subtitle C--International Trade
SEC. 221. OFFICE OF INTERNATIONAL TRADE.
Section 22 of the Small Business Act (15 U.S.C. 649) is amended--
(1) by striking ``Sec. 22'' and inserting the following:
``SEC. 22. OFFICE OF INTERNATIONAL TRADE.'';
(2) in subsection (a)--
(A) by inserting ``Establishment.--'' after
``(a)''; and
(B) by inserting ``(referred to in this section as
the `Office'),'' after ``Trade'';
(3) in subsection (b)--
(A) by striking ``The Office'' and inserting the
following:
``(b) Trade Distribution Network.--The Office, including United
States Export Assistance Centers (referred to as `one-stop shops' in
section 2301(b)(8) of the Omnibus Trade and Competitiveness Act of 1988
(15 U.S.C. 4721(b)(8)) and as `Export Centers' in this section),''; and
(B) by amending paragraph (1) to read as follows:
``(1) assist in maintaining a distribution network using
regional and local offices of the Administration, the Small
Business Development Center network, the Women's Business
Center network, and Export Centers for--
``(A) trade promotion;
``(B) trade finance;
``(C) trade adjustment;
``(D) trade remedy assistance; and
``(E) trade data collection.'';
(4) in subsection (c)--
(A) by redesignating paragraphs (1) through (8) as
paragraphs (2) through (9);
(B) by inserting before paragraph (2), as
redesignated, the following:
``(1) establish annual goals within the Office relating
to--
``(A) enhancing the exporting ability of small
business concerns and small manufacturers;
``(B) facilitating technology transfers;
``(C) enhancing programs and services to assist
small business concerns and small manufacturers to
compete effectively and efficiently against foreign
entities;
``(D) increasing the access to capital by small
business concerns;
``(E) disseminating information concerning Federal,
State, and private programs and initiatives;
``(F) ensuring that the interests of small business
concerns are adequately represented in trade
negotiations;'';
(C) in paragraph (2), as redesignated, by striking
``mechanism for'' and all that follows through ``(D)''
and inserting the following: ``mechanism for--
``(A) identifying subsectors of the small business
community with strong export potential;
``(B) identifying areas of demand in foreign
markets;
``(C) prescreening foreign buyers for commercial
and credit purposes; and
``(D)''; and
(D) in paragraph (9), as redesignated--
(i) by striking ``full-time export
development specialists to each Administration
regional office and assigning'';
(ii) by striking ``office. Such
specialists'' and inserting ``office and
providing each Administration regional office
with a full-time export development specialist,
who'';
(iii) in subparagraph (D), by striking
``and'' at the end;
(iv) in subparagraph (E), by striking the
period at the end and inserting a semicolon;
and
(v) by adding at the end the following:
``(F) participate jointly with employees of the
Office in an annual training program that focuses on
current small business needs for exporting; and
``(G) jointly develop and conduct training programs
for exporters and lenders in cooperation with the
United States Export Assistance Centers, the Department
of Commerce, Small Business Development Centers, and
other relevant Federal agencies.'';
(5) in subsection (d)--
(A) by inserting ``Export Financing Programs.--''
after ``(d)'';
(B) by redesignating paragraphs (1) through (5) as
subparagraphs (A) through (E); and
(C) by striking ``To accomplish this goal, the
Office shall work'' and inserting ``To accomplish this
goal, the Office shall--
``(1) designate at least 1 individual within the
Administration as a trade financial specialist to oversee the
international loan programs and assist Administration employees
with trade finance issues; and
``(2) work'';
(6) in subsection (e), by inserting ``Trade Remedies.--''
after ``(e)'';
(7) by amending subsection (f) to read as follows:
``(f) Reporting Requirement.--The Office shall submit an annual
report to the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives that contains--
``(1) a description of the progress of the Office in
implementing the requirements under this section;
``(2) the destinations and benefits to the Administration
and to small business concerns of travel by Office staff; and
``(3) a description of the participation by the Office in
trade negotiations.'';
(8) in subsection (g),byinserting``Studies.--''
after ``(g)''; and
(9) by adding at the end the following:
``(h) Export Assistance Centers.--
``(1) Additional centers.--The Administration, in
accordance with the March 29, 2002, agreement with the
Department of Commerce and the Export-Import Bank, shall assign
not less than 4 additional employees to Export Centers during
each of the fiscal years 2004 through 2006.
``(2) Placement.--The Administration shall use the resource
allocation methodology, used by the Department of Commerce as
of the date of enactment of this subsection, to strategically
assign Administration employees to all Export Centers based on
the needs of exporters.
``(3) Goals.--The Office shall work with the Department of
Commerce and the Export-Import Bank to establish shared annual
goals for the Export Centers.
``(4) Oversight.--The Office shall designate an individual
within the Administration to oversee all activities conducted
by Administration employees assigned to Export Centers.''.
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