Public Good IRA Rollover Act
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Sponsor introductory remarks on measure. (CR S4945-4946)
April 8, 2003
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Introduced in Senate
February 4, 2003
Sponsor introductory remarks on measure. (CR S1885)
February 4, 2003
Read twice and referred to the Committee on Finance.
February 4, 2003
Sponsor introductory remarks on measure. (CR S4945-4946)
April 8, 2003
Floor Debate
22 membersWhat members said about S. 283 on the floor
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Floor Debate
22 membersWhat members said about S. 283 on the floor
Mr. President, I rise today to discuss the CARE Act and my concerns regarding the implementation of President Bush's faith- based initiative. Like many of my colleagues, I am a person of faith. I…
Mr. President, I rise today to discuss the CARE Act and my concerns regarding the implementation of President Bush's faith- based initiative.
Like many of my colleagues, I am a person of faith. I support the good work that religious organizations undertake every day. I agree with President Bush and the sponsors of this legislation that there is an important role for the Federal Government to play in encouraging religious organizations to do more for the good of society.
In fact, I support many of the provisions of the CARE Act before us today. For example, I have been an original cosponsor of the Charitable IRA Rollover Act and a cosponsor of the Good Samaritan Hunger Relief Tax Incentive Act in the last two Congresses. I also
support the increased funding for the Social Services block grant.
However, when I read the specific details of how the President is implementing his faith-based initiative, I am concerned that the good intentions behind this proposal may be lead to troubling, unintended consequences.
It appears that what the President wants to achieve with this initiative is to fundamentally change the historic balance in the relationship between government and religion that our founding fathers struck over 200 years ago.
I believe and many of my colleagues agree: this Senate debate is historic. With our deliberations, we will test Constitutional principles regarding the place of religion in America in a way they have never been tested.
That is why many Senators joined me in insisting that the Senate take all deliberate time and attention to carefully review this bill and to add language to clarify and improve the bill.
Since the Senator from Pennsylvania has agreed not to add language that would raise concerns with respect to church and state, I have joined with Senator Jack Reed of Rhode Island in agreeing not to offer our amendments at this time. However, I would like to take this opportunity to express my concerns regarding the President's implementation of his faith-based initiative which, if offered at a later time, I hope will be subject to a vigorous, important, and historic debate in the Senate.
We should begin this debate at the beginning. The opening words of our Bill of Rights state that:
Congress shall make no law respecting an establishment of
religion, or prohibiting the free exercise thereof.
For over two centuries, those 16 words have served us well and have protected religious freedom in America.
We must continue to respect the diversity of belief in America and remember that freedom from government interference was one of the few principles that early Americans, with a variety of religious backgrounds, could agree on.
In fact, many of the settlers who colonized America fled from religious persecution by government officials in their native countries and they still do.
James Madison recognized that this history of religious persecution was based upon Government involvement in establishing official churches. He believed that Government support of certain religions could threaten the liberty of every citizen to hold his or her own religious convictions.
Madison suggested that the Government support of religion differs only in a matter of degree, and he vehemently opposed the payment of taxes in support of any religion.
Before the American Revolution, the State of Virginia rescinded a tax in support of the Anglican Church, which was their so-called established church, and instead granted its citizens religious liberty. However, in 1784, Patrick Henry became concerned with the moral decline of Virginians and he proposed a bill to restore the tax to support ``teachers of the Christian religion.''
Madison responded to this proposal with his ``Memorial and Remonstrance against Religious Assessments.'' This document--written 16 years before the Bill of Rights was adopted--reveals the earliest origins of the concepts behind the first amendment: Madison expressed his opposition to Government involvement in religion because he believed such involvement would interfere with citizens' right of free exercise. Madison also believed that the right of religious freedom was as important as freedom of the press, trial by jury, and the right to vote.
According to Madison, his Memorial was so widely accepted that Henry's proposal failed and Virginia instead enacted Thomas Jefferson's ``Bill for Establishing Religious Freedom in Virginia.''
In this bill, Jefferson expressed his belief that religious liberty is necessary to ensure that individuals are not forced to support religious opinions with which they disagree, to practice faiths they find abhorrent, or to voice allegiance to one faith over another, and:
To compel a man to furnish contributions of money for the
propagation of opinions which he disbelieves and abhors is
sinful.
During their Presidencies, Jefferson and Madison had the opportunity to illustrate their understanding of the first amendment to the Constitution.
In 1801, the Danbury Baptist Association wrote a letter to President Jefferson because it feared that the State of Connecticut would establish the Congregationalist Church as the official religion.
Jefferson responded to the Danbury Baptist Association with a letter on January 1, 1802, in which he reaffirmed his belief that each individual has the right to hold whatever opinion he or she may choose and that the Government should not interfere in religion. This reply contained his now-famous view that the purpose of the first amendment was to build a--in Jefferson's words--``wall of separation between church and state.''
President Madison, in his 8 years in office, vetoed only seven bills--two of which he believed violated the Establishment Clause of the first amendment.
In 1811, Congress passed a bill entitled ``An act incorporating the Protestant Episcopal Church in the town of Alexandria in the District of Columbia.'' This bill would have enacted the rules of the church as a matter of law, thereby giving legal force to the provisions of the church's constitution.
Madison believed that even supporting churches in their charitable functions would give religious organizations too much power in public and civic affairs. He wrote that the bill would be ``precedent for giving to religious societies as such a legal agency in carrying into effect a public and civic duty.'' Think of those words in the context of the proposal before us.
Madison also vetoed a bill ``An act for the relief of Richard Tervin, William Coleman, Edwin Lewis, Samuel Mims, Joseph Wilson, and the Baptist Church at Salem Meeting House, in the Mississippi Territory.'' This bill would have given a Baptist Church specific Federal Government property for the church's use.
Madison believed that:
reserving a certain parcel of land of the United States for
the use of said Baptist Church comprises a principle and
precedent for the appropriation of funds of the United States
for the use and support of religious societies, contrary to
the article of the Constitution which declares that
``Congress shall make no law respecting a religious
establishment.''
Thanks to Jefferson and Madison, first amendment protections have made America the most tolerant society in the world--a tolerance many of our critics around the world neither understand nor accept. They live in nations where government and religious belief are so closely entwined that diversity of creed is officially discouraged, if not prohibited.
Each of us, when we return home, can drive through our cities and see a Protestant church down the street from a Catholic church, next to a Jewish synagogue which is not too far from a Muslim mosque, and perhaps across the street from a Sikh Gur-dwala. Some churches even share their facilities with congregations from other religious and ethnic groups. To me, this is proof positive that the wisdom of the first amendment is alive and well in America today.
Although some may argue that the faith-based initiative does not ``establish a religion,'' the Supreme Court has ``long held that the First Amendment reaches more than classic, 18th century establishments.''
Indeed, the Supreme Court has examined the history of the first amendment and has come to the same conclusion that I have reached:
For the men who wrote the Religion Clauses of the First
Amendment the `establishment' of a religion connoted
sponsorship, financial support, and active involvement of the
sovereign in religious activity.
That comes from the case of Walz v. Tax Commission in 1970.
This is one principle that President Bush seems to be willing to accept. I am heartened that the White House publication Guidance to Faith-Based and Community Organizations on Partnering with the Federal Government is clear that faith-based organizations cannot use any part of a direct Federal grant to fund religious worship, instruction, or proselytization. Such activities must be separate in time or location.
The President also agrees that faith-based organizations cannot discriminate against beneficiaries or potential beneficiaries of a social service on the basis of religion.
However, one area where we clearly diverge is the issue of employment discrimination on the basis of religion.
The Civil Rights Act of 1964 prohibits most public and private employers with 15 or more employees from discriminating in their employment practices on the basis of race, color, national origin, sex, and religion.
However, religious employers have an exemption with respect to religious discrimination, which was expanded in 1972.
I will read the current exemption:
This subchapter shall not apply . . . to a religious
corporation, association, educational institution, or society
with respect to the employment of individuals of a particular
religion to perform work connected with the carrying on by
such corporation, association, educational institution, or
society of its activities.
In 1987, the Supreme Court upheld this title VII religious exemption in the case of Corporation of Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints v. Amos.
I support this right of religious organizations to use religious criteria in hiring people to carry out their religious work. I have no quarrel with the title VII religious exemption. It makes sense for people of common faith to work together to further their religion's mission.
At the same time, I recognize that discrimination ``on the basis of religion'' can often include discrimination based on other factors that are prohibited by civil rights laws, such as race, ethnicity, and sex.
Dr. Martin Luther King, Jr., observed that the hour of worship is one of the most segregated hours in American society. Sadly this is still true today, but many people of similar racial or ethnic backgrounds do prefer to worship together, and there are churches throughout this Nation that target only certain races or ethnic groups.
So, unfortunately, allowing religious organizations to hire only members of their own religion, in many cases, can also mean hiring only members of a certain race or ethnic background.
For example, if employment is limited to the co-religionists of the recipients, how many African Americans will be hired by Orthodox Jewish groups? How many white people will the Nation of Islam employ as security guards in public housing? And what of the many Protestant groups that are overwhelmingly White or overwhelmingly Black or overwhelmingly Hispanic?
The courts also have read the title VII exemption very broadly to allow discrimination on the basis of religion to include the religion's ``tenets and teachings.'' This broad reading has resulted in situations where people of faith who do not necessarily follow the accepted lifestyle or private behavior of that religion have lost their jobs.
Here are some examples of how this law discriminates against people's everyday behavior in addition to their religious beliefs:
In the case of EEOC v. Presbyterian Ministries, Inc., a Christian retirement home fired a Muslim receptionist after she insisted on wearing a head covering as required by her faith.
The Church of Jesus Christ of Latter-Day Saints fired several employees because they failed to qualify for a ``temple recommend,'' that is, a certificate that they were Mormons who abided by the church's standards in such matters as regular church attendance, tithing, and abstinence from coffee, tea, alcohol, and tobacco.
This exemption, unfortunately, has had a particularly harsh impact on women and people of different sexual orientation. Here are some examples of how courts have interpreted this exemption to allow employment discrimination against women and gays under the current title VII exemption:
Numerous Christian schools fired female teachers for having extramarital sex or committing adultery; upheld by the court. A Catholic school fired a teacher who remarried without seeking an annulment of her first marriage in accord with Catholic doctrine; upheld by the court. A Catholic school fired a teacher for marrying a divorced man; upheld by the court. A Catholic university refused to hire a female professor because her views on abortion were not in accord with Catholic teaching; upheld by the court. A Baptist nursing home fired a student services specialist after she was ordained a minister in a gay and lesbian church that advocated views on homosexuality ``which were inconsistent with the [school's] perception of its purpose and mission''; upheld by the court. A church terminated the employment of an organist on the grounds that his homosexuality conflicted with the church's belief; upheld by the court.
I regret that these may be unintended discriminatory consequences today under the title VII exemption where religious organizations hire people using money raised by the church from its own congregation. But what of the case we are discussing? We are not talking about a situation where churches are spending their own money for their own religious purposes and following their own employment codes and practices under the title VII exemption. We are talking about opening up a new world where tax dollars are taken from the treasury and given to these same churches. What if the money is not raised by the congregation or coreligionists, but the money is being raised from the taxpaying public? What standard should we use?
Most scholars agree it is an open legal question as to whether a religious organization can take taxpayer money and use it to discriminate in hiring employees on the basis of religion. It would seem to me that the obvious answer to this question is no. Any other response would result in taxpayer-funded discrimination. I will return to this question and the reasons for my answer after examining asking how this issue fits into the broader picture of the President's faith- based initiative.
The faith-based initiative has been marketed as a proposal to ``level the playing field'' for religious organizations that seek government funds to pay for social service programs. However, it appears that the supporters of the initiative do not want to level the playing field; they want to create a special set of rules for religious organizations which would result in special treatment that other nongovernmental organizations do not currently enjoy.
President Bush has demonstrated, through his Executive orders and agency regulations, that his faith-based initiative goes far beyond religious icons, religious names, religious language in chartering documents or religious criteria for membership on governing boards. I do not object to any of those stated goals which I have heard from the Senator from Pennsylvania and the Senator from Connecticut as well as the President. I have seen the enforcement of rules and standards which I think have gone way too far.
I can think of my own hometown of Springfield where there is a long- simmering controversy still brought up regularly about whether a teacher could come in and teach a driver training course at the Catholic high school if that teacher were paid for out of public school funds and that Catholic high school and its classroom had a crucifix on the wall. It rubbed a lot of people of my Catholic religion the wrong way, that people would argue that the mere presence of that crucifix was somehow offensive or violated the law. That argument goes to the extreme. I do not hold those views. I support the position stated time and again by the Senators from Pennsylvania and Connecticut that we ought to draw a more reasonable line. The House of Representatives, with mottos on the walls ``In God We Trust,'' with our currency reflecting that, with chaplains in the House and Senate, we can state a reasonable standard that does not violate the basic freedom of religion or establishment clause of our Constitution. But I do object to the administration bypassing Congress to write one set of rules for secular organizations and another for religious organizations.
For example, all recipients of government grants currently are required to abide by a host of regulatory requirements, including filing IRS documentation and complying with all State and local laws. Supporters of the faith-based initiative would like to exempt religious organizations from complying with these important regulations, such as those dealing with health and safety. Explain that for a moment.
If in the State of Illinois or my city of Springfield someone wants to run a daycare center and we have decided, for the safety of the children in the
daycare center, there should be perhaps a sprinkler system, a fire alarm, or a fire escape, certain doors so that kids can get out in case of emergency, why, if this becomes a faith-based childcare center, should we reduce or limit that same application of health and safety standards? It doesn't make sense. One of the amendments which needs to be offered as part of this conversation on faith-based initiatives will address that.
Take a look at the Teen Challenge substance abuse program which President Bush has mentioned many times. In 1995, the Texas Commission on Alcohol and Drug Abuse threatened to close Teen Challenge after issuing a 49-page list of violations of State health and safety codes. The list included unlicensed counselors, food preparation that created a health hazard, a broken smoke detector system, and exposed wires and electrical outlets. Then-Governor Bush responded by exempting faith- based drug treatment programs from all of the State health and safety regulations that were followed by their secular counterparts.
I don't know how you could reach that conclusion. It is one thing to be imbued with a religion; it is another thing to ignore the obvious. If there is a terrible accident or fire or some disaster, children in faith-based institutions deserve the same level of legal protection as those in institutions run as businesses.
This special treatment was not limited to drug treatment programs. Faith-based childcare centers and residential children's homes could use an alternative accreditation program that would exempt them from State licensing. The special treatment for these alternatively accredited facilities was that there were no unannounced inspections of the facilities as required by State law. As a result, the rate of confirmed abuse and neglect at alternatively accredited facilities was 25 times higher than that of State-licensed facilities. Whom are we doing a favor for by exempting the faith-based charity from standards of unannounced inspections to make certain that they are living up to the letter of the law?
The complaint rate at alternatively accredited facilities was 75 percent compared to 5.4 percent at State-licensed facilities. Due to these staggering outcomes, this accreditation program sunset in 2001 and has never been renewed.
The White House has also given indications it may provide special treatment to religious organizations by exempting them from State and local laws addressing employment discrimination. I have a great deal of respect for the Salvation Army. They do wonderful work, not only in the United States but around the world. But they had a rather embarrassing incident in July of 2001 when an internal report was discovered that stated their group had received a ``firm commitment'' from the Bush White House to protect religious charities from State and local laws regarding sexual orientation discrimination and domestic partner benefits. I hope that is not the goal of the Bush White House in pushing this faith-based initiative.
Over the past 2 years, President Bush and his faith-based initiative have repeatedly eroded 200 years of carefully protected separation between church and state. In what the Washington Post called ``faith- based by fiat,'' President Bush signed Executive Order 13279, in December of 2002, to overturn principles of nondiscrimination in Federal contracts that have stood for over 60 years.
The House of Representatives is currently considering the reauthorization of the Workforce Investment Act. The legislation has been marked up in the House, and it would repeal 20 years of civil rights protections against religious discrimination. The House also has held hearings regarding the reauthorization of the Corporation for National and Community Service, known as AmeriCorps. In its proposed legislation, the House would repeal a decade of civil rights protections against religious discrimination in employment that were signed into law by President Bush's father.
Finally, the Department of Housing and Urban Development has proposed rules to allow religious organizations to use Federal funds to build centers where religious worship is held as long as parts of the building are also used for social services.
Supporters of the faith-based initiative want to know why we are raising these issues now, when Congress included charitable choice provisions in legislation we passed as far back as 1996. The difference is this: Then-President Clinton made it clear, as part of the technical corrections package to the welfare reform bill, that nothing included therein would change the fundamental protections against religious discrimination which were currently in the law. President Clinton did that as well in the reauthorization of Community Services Block Grant Programs in 1998 and the reauthorization of the Substance Abuse Mental Health Services Act in 2000. Unfortunately, in this debate, that same assurance has not been given.
I want to go to a point which really gets to the heart of the issue. It is a difficult one. It is one for which I don't have an answer. When you talk about faith-based initiatives, you are talking about religion in America. The obvious and important question is: What is a religion? There are many that we readily will recognize as being established religions of all different denominations. But when it comes to the definition of religion, many people self-define their beliefs and activities as religion.
Jim Jones led people to a mass suicide in Guyana, and David Koresh and his Branch Davidians in Waco, TX, have become scarred in the American memory as tragic reminders of what happens when people are blindly led by fanatics who use the guise of religion for their own personal, violent agenda. I represent a State which is the home of the so-called World Church of the Creator, which has to be one of the most perverted extremist groups in America that I know of, which claims itself to be a religion. On its Web site, the so-called ``Reverend'' Matt Hale--who graduated from law school but was not allowed to be licensed under the rules and practices of the bar in Illinois--proudly welcomes visitors, saying:
We are a religious, nonprofit organization, with our world
headquarters in the State of Illinois. At the time of this
writing, we have 24 regional and local branches of the church
and members all over the world.
What are the tenets of his church and religion, of this World Church of the Creator? Here is what he says in his own words:
After 6,000 years of recorded history, our people finally
have a religion of, for, and by them. Creativity is that
religion. It is established for the survival, expansion, and
advancement of our white race exclusively. Indeed, we believe
that what is good for the white race is the highest virtue,
and what is bad for the white race is the ultimate sin.
I cannot think of any more hateful rhetoric spewed in the name of religion. That is exactly what is happening today. Recently someone challenged their dismissal of employment because they were members of this church. The court came back and said it is a religion and has to be treated as such for the purpose of the Civil Rights Act of 1964.
So here we come to a point where we are talking about giving Federal dollars to those who call themselves religions for the purpose of performing social services. What is the threshold question we should ask? Is this truly a religion or is this something else in the guise of a religion? What are we doing with taxpayer dollars? Would we want to spend $1 supporting the racist views of the World Church of the Creator because they tell the Federal Government they have a program to deal with drug abuse or to provide childcare services in central Illinois? I hope not. But once you have opened this door and start talking about Federal dollars given to religion for social services, you open up a can of worms, a set of questions and great challenges that we have not faced for many years, if ever.
I am worried as I look across the various religions of the world, not just those purporting to be Christian but some who are members of different religions that have taken what in fact are extreme views.
It was only a little more that a year ago that the people of Afghanistan were still suffering under the violent and oppressive regime of the Taliban, which suppressed and punished its people in the name of Islamic fundamentalist religious beliefs.
Thanks to the leadership of the United States and our military, we
have now liberated the Afghan people from the Taliban, which, like Al Qaeda, had distorted the peaceful religion of Islam for their own destructive purposes.
The leaders of the Taliban were trained in ``madrassas,'' which are characterized as religious schools. But those familiar with these institutions often call many of them ``jihad factories'' because of the extreme nature of their ``religious'' indoctrination and the militancy they train.
At madrassas, the Taliban preached that freedom afforded to women is the main reason for social degradation, and that the best place for women was inside the four walls of their homes--cut off from education and cut off from opportunity.
They also preached that television is the ``spark of hell'' responsible for moral degradation, and watching it or listening to music was un-Islamic and sinful. And when they came to power, the Taliban put all of these distorted lessons to practice against their own people.
The Taliban is perhaps the most recent example of extremism in the name of religion that we have witnessed.
But since the 1979 Islamic revolution in Iran, we have seen numerous radical Islamic fundamentalists utilize their religious ideology as the driving force behind the most active Middle Eastern terrorist groups and state sponsors.
For example, Hizballah of Lebanon calls itself the ``Party of God'' although there is nothing godly about its terrorist activities.
Hizballah was founded in 1982 as a faith-based organization by Lebanese Shiite clerics who were inspired by the Islamic ideology of Iran's Ayatollah Khomeini. Its original goal was to establish an Islamic republic in Lebanon. But many of the Shiite Muslims who rule Hizballah studied in Iran's theological seminaries while receiving terrorist training there as well.
The trainings paid off as this terrorist group became responsible for the detention of most, if not all, American and other Western hostages held in Lebanon during the 1980s and early 1990s. Eighteen Americans were held hostage during that period, three of whom were killed.
Hizballah is also suspected in the April 1983 suicide truck bombings of the U.S. Embassy in Beirut and the U.S. Marine barracks in October 1983 that killed 220 Marine, 18 Navy and 3 Army personnel.
And Hizballah is also suspected to have been behind the hijacking of TWA Flight 847 in 1985, and the killing of a Navy diver, Robert Stethem, who was on board.
Hamas, Al-Jihad, Abu Sayyaf, and Islamic Movement are some of the other better-known extremists that argue their organizations are based on Islamic religious beliefs.
There are radical Jewish groups as well, such as Kach and Kahane Chai. These two Jewish movements seek to expel all Arabs from Israel and expand Israel's boundaries to include the occupied territories and parts of Jordan. Founded by extremist Rabbi Meir Kahane, these groups also argue for strict implementation of Jewish law in Israel.
I do not mean to suggest here that the President's faith-based initiative will necessarily lead to such religious extremism.
At the same time, I want to make it clear that this is not an easy question. To dismiss it simply as a question about whether or not we are tolerant of religion is one thing, but the question of whether we are going to subsidize religious belief that reaches the extreme is really something else.
The important message we must send is that religious organizations that take taxpayers' money should not be able to use those funds to discriminate in hiring employees on the basis of religion. The American people have been asked their opinion on this issue. The response is interesting.
According to the Washington Post, in a 2001 survey conducted by the Pew Research Center:
When people were asked whether ``religious groups that use
Government funds [should] be allowed to hire only those who
share their religious beliefs,'' 78 percent said ``no'' and
18 percent said ``yes''--a degree of objection that so
surprised researchers that they repeated the question three
different ways. . . .
They received the same answer time and time again. On the other hand, the Bush administration believes that Government-funded discrimination in hiring on the basis of religion is acceptable.
According to a U.S. Department of Justice Office of Legal Counsel memorandum on June 25, 2001:
We conclude, for the reasons set forth more fully below,
that a faith-based organization receiving direct Federal aid
may make employment decisions on the basis of religion
without running afoul of the Establishment Clause.
In the only case that directly addressed whether the Title VII exemption applies to a position funded by government funds, the Southern District Court of Mississippi ruled that it did not.
In the 1989 case Dodge v. Salvation Army, Jamie Dodge was employed by the Salvation Army in its Domestic Violence Shelter as the Victims Assistance Coordinator.
After the Director of the shelter saw Ms. Dodge using the Salvation Army's copy machine, Ms. Dodge admitted that she had made copies of manuals and information on Wiccan rituals.
Soon after making these admissions, Ms. Dodge was terminated.
She filed a complaint that because the shelter where she worked received substantial federal and state funds, the Title VII exemption could not be applied to her.
The District Court ruled that ``even though the religious exemption does permit the Salvation Army to terminate an employee based on religious grounds, the fact that the plaintiff's position as Victims' Assistance Coordinator was funded substantially, if not entirely, by federal, state, and local government, gives rise to constitutional considerations which effectively prohibit the application of the exemption to the facts in this case.''
Furthermore, the Court held that ``Based on the facts in the present case, the effect of the government substantially, if not exclusively, funding a position such as the Victims' Assistance Coordinator and then allowing the Salvation Army to choose the person to fill or maintain the position based on religious preference clearly has the effect of advancing religion and is unconstitutional.
Despite this ruling, the issue is considered an open legal question because the case was not considered beyond the District Court and there are several other cases which at least partially address this question.
However, this is not just a legal question or a hypothetical line we are drawing in the sand.
One of the cases I would like to point out is a case that really talks about discrimination firsthand. It is the case of Alan Yorker and his experience with United Methodist Children's Home in Decatur, GA. The children's home, which receives almost half of its money from Government sources, provides residential group foster care for 70 young people, many of whom are in State custody.
Mr. Yorker responded to an advertisement in the Atlanta Journal- Constitution for a position at the home. As a psychotherapist with over 20 years experience counseling young people and their families and over a decade of experience teaching in Emory University professional schools, the home determined that his credentials placed him among the top candidates for the position. He was rushed in for an interview, where he was required to disclose in an application form his religious affiliation, his church and minister. Mr. Yorker, a Jew, supplied the names of his synagogue and rabbi. During the interview, an administrator noted that Mr. Yorker was Jewish and told him that this children's home doesn't hire people who are Jewish. He was shown the door.
Let me tell you that this didn't happen decades ago; this is of recent vintage. The same administrator told another employee that it is the home's practice to throw the resumes of applicants with Jewish- sounding names in the trash. The Yorker name got past her.
Ironically, Yorker has not always been the family name. Alan Yorker's Jewish paternal grandfather, Harry Monjesky, spent many years as a conductor on the New York Central Railroad. When the railroad began to face tough times, Jewish and African-American workers were singled out for layoffs first, regardless of their seniority.
Mr. Monjesky was fired and left without a livelihood. Several years later, when Alan's father reached adulthood, he changed his name to Yorker. He wanted to make sure that his children would be judged by their merit and not by their surname or private religious beliefs.
That is how Alan Yorker's resume landed at the top of the pile instead of the home's trash bin. And nearly a century after his grandfather was turned away by the Railroad because of his religion, Alan Yorker faced the same discrimination when applying for a government-funded position.
I will conclude by saying that these are examples of what is being done in the name of religion. For it to be done by a religious organization to achieve a religious goal, with funds raised by co- religionists, is certainly allowed in title VII of the Civil Rights Act. To say, however, that we are going to open the Federal Treasury and provide millions of dollars to religions for social services, and then approve of their discriminatory activity in the name of religion, is branching out in a direction that our Founding Fathers could never have considered, let alone condoned.
In light of this complex constitutional issue, I think it is fair to ask why we even need a faith-based initiative. President Bush believes it is necessary because ``people should be allowed to access money without having to lose their mission or change their mission.'' However, current law already permits groups that are affiliated with religious entities to provide social services with Government funding.
Catholic Charities, Lutheran Social Services, Jewish Federations, and many other religious organizations have received--and continue to receive--taxpayer funds from the Government to provide much-needed services that our Government is often unable and unavailable to provide.
These organizations access Federal funds without changing their missions. For example, Catholic Charities has a publication entitled ``10 Ways Catholic Charities are Catholic.'' At the same time, Catholic Charities in Chicago, which I am proud to represent, also issues the following statement on its Web site:
Catholic Charities employs more than 3,000 dedicated,
compassionate and professional men and women, regardless of
race, religion, or ethnic background.
Many Catholic Charities across the Nation have similar equal opportunity statements.
As thousands of Americans visit our Nation's Capital, many will stop at the Jefferson Memorial and read the following inscription, in the words of Thomas Jefferson:
No man shall be compelled to frequent or support any
religious worship ministry or shall otherwise suffer on
account of his opinions in matters of religion.
These words, from Jefferson's ``Bill for Establishing Religious Freedom in Virginia,'' are as relevant now as they were in 1785. Although we don't debate the faith-based initiative proposal in its entirety today, I look forward to the opportunity to continue to protect our historic balance in the relationship between church and state.
I yield the floor.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I thank the Senator from Iowa, the chairman of the Finance Committee, for his kind words and his…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I thank the Senator from Iowa, the chairman of the Finance Committee, for his kind words and his cooperation. I thank the ranking member of the committee for his cooperation.
There are some things in this legislation that he is not particularly enamored with, but he was most cooperative and helpful in moving the legislation forward. We are now at a point where we are within 24 hours of passing the legislation. Most of all, I thank my colleague from Connecticut, Senator Lieberman, who has been a faithful partner--to use a play on words--a faithful partner in putting this initiative together.
We have worked together closely with the President, who has been truly the motivating force to try to provide some ammunition to the armies of compassion out there on the front lines every day, fighting for hope and opportunity for the millions of Americans who have yet to realize their dreams in dealing with the problems that confront them.
The President has, through his faith-based initiative, been very clear in the role of charitable organizations, particularly people of faith within those organizations, to heal many of the ills that confront society. We are a society that, while very prosperous by any measure, even at a time of economic downturn that we are experiencing right now, we are still the wealthiest country in the history of the world. With that great wealth comes responsibility. So many people have taken up that responsibility, trying to meet and serve those who in a society of great wealth have experienced a multitude of problems in trying to achieve, both from the economic perspective but again, as I said before, pursuing their dreams.
This piece of legislation, while it is not everything the President requested--it is not all of his faith-based initiative--certainly gets at one of the most important components which is the one funding organizations which do charitable purposes or have charitable purposes.
No. 2, there is a provision called the Compassionate Capital Fund which is grants to small organizations with less than six employees or less than $\1/2\ million in funding, to go out and be able to, for the first time, compete for Federal funds.
A lot of these small organizations, most of which are faith based in nature, have not been successful in applying for government grants principally because they don't have the resources or the expertise to do so. When you are running a food pantry with one or two people, most of whom are part-time employees and many volunteers, you don't have the expertise to apply for Federal grant dollars or any other kind of grant dollars. You try to do what you can to make ends meet. This provides the kind of technical assistance necessary for a lot of smaller, mostly inner-city organizations that right now do not take advantage of the money available through the Federal Government, again, whether they are faith based or not.
Most of these organizations are faith based in nature so there is a faith component to this. As I will show later, many of the provisions in the act will have a disproportionate benefit to
charitable organizations which are faith based.
It doesn't accomplish a couple of the things the President set out to do. The issue Senator Durbin spoke of earlier having to do with equal treatment, even though it is not in this legislation, let me address it very briefly and then maybe in more detail later on.
The whole concept of equal treatment is to allow those who have some element of faith within their organization--and there is a whole range across the charitable organization horizon. There is a whole range of faith, how much faith is integrated into those organizations--some are, to use the term, ``saturated'' or completely faith based in nature and expressively faith based in their programs, to the whole range of the other side which are those that are exclusively secular and even to some degree hostile to faith. In between there are gradations.
What the President has tried to do is instead of, as we do right now, as we did prior to the 1996 welfare reform, which allowed for charitable choice, in other words, for some government programs to go, these dollars to go to faith organizations, we sort of eliminated all these people of faith and all these organizations that have faith as a component of their mission or their vision or their program and left it to a very rather narrow category.
We, in 1996, on the Senate floor, with President Clinton signing it, said we would stop that discrimination against people of faith who wanted to act based on their faith to help their fellow man, as long as they didn't do certain things such as use it for faith worship or proselytizing, things that are not delivery of service.
We expanded greatly the range of faith organizations and nonfaith organizations. We expanded greatly those who can participate in government funds. When you do that, you run into some problems, some questions.
We have seen tremendous success and very few cases where problems have arisen, but in the areas where they have, there have been questions as to what government statutes apply, what provisions or regulations apply to faith organizations as opposed to nonfaith organizations.
One of the principal questions has to do with people's religious liberties and their ability to practice their faith bumping up against other rights. The one that the House of Representatives dealt with and the Senator from Illinois referred to had to do with the issue of employment and whether religious organizations which are provided with government funds can say that someone cannot work for that organization or they can refuse to hire someone who works for that organization who doesn't share that organization's values with respect to tenets and teaching of the faith which is expressed through their program.
One of the things I believe is essential to a lot of faith organizations, one of the reasons that faith organizations should be and need to be included in providing social services, is that a lot of these faith-based organizations don't just treat the symptom. They don't just treat the hunger, if it is someone who comes in for food assistance, or they don't just treat the dependency on drugs or alcohol, if someone comes in for addiction treatment. It doesn't just treat the problem of a lack of a GED or education, if someone comes in for education and training. What they do, because of their mission, they treat the mind. They treat the spirit and they treat the emotional well-being of this person. They treat the whole person. That is one of the keys to success in trying to truly turn people's lives around in a way that brings them back into productive life in America.
The key to these faith organizations is having people who have this mission they share out there teaching and bringing people in based on a certain core value structure. My argument is, we should not discriminate against people who have programs that are value laden-- those values may be based on Scripture, the Old or New Testament or some other book--as opposed to saying we are going to discriminate against you because the values you have are based upon a religious belief, as opposed to an organization that is secular and its values are not based on a religious belief. I don't understand the reason for the discrimination. I don't believe it should exist.
I have had this discussion in brief, and we can talk more about it. I am sure we will. But having said all that, none of that is in this bill. We decided not to have this issue before us today because the need of getting resources out to the charitable organizations meeting human service and educational and other needs is, frankly, too urgent.
While we will debate this--and I am sure others will want to debate this issue--the true debate will wait for another day. That will be when the welfare reauthorization comes up. That is where this whole conversation of charitable choice and allowing faith-based providers to participate in government grants came about, back in 1996. And it is where we should continue that debate. I pledge to you that whether we get that bill or have that amendment in committee, or whether we bring it to the floor, this will be a topic of discussion and one I encourage all Members to think about and participate in.
But the charitable crisis is real, and that is why I agreed--and my colleagues in the House have been more than cooperative in putting together, hopefully, a compromise we can quickly get to the President's desk. We understand the crisis is real. Adjusted for inflation, charitable giving 2 years ago, in 2001, was 2.3 percent lower than in 2000. You have to remember at the end of 2001, unfortunately, we had to deal with the aftermath of 9/11, where there was a tremendous outpouring of giving. Even with that outpouring of giving, because of the sluggish economy, charitable giving fell again last year. Corporate giving fell again between 2000 and 2001 by 14.5 percent.
Again, we don't have the final numbers for 2002, but it was supposed to be off again last year. We saw the American Red Cross--I'll give a couple of examples. Their contributions declined anywhere from 20 to 60 percent; Salvation Army, off 5 to 10 percent; United Way, off 4 to 5 percent. We can go on and on. Colleges and universities saw a decline in the amount of charitable giving to their organizations, too.
So what we are doing is trying to respond in a comprehensive way. When I say that, I mean if you look at this bill, it is carefully crafted to provide incentives for all different types of givers-- corporate, foundations, and individuals who don't itemize on their tax forms. By the way, if those with IRA rollovers want to give money to charitable organizations, they can do so without having to pay taxes under this legislation. So whether it is the small giver to, hopefully, the retiree, or someone who has a large IRA, or corporations who may want to give more money--all the way down the line to food donations, which is another area where the Senator from Indiana, Senator Lugar, has a provision in this legislation that I think is very important, we have a provision that will encourage literally billions of dollars of additional food donations over the next several years by providing a tax incentive for corporations; but for the first time, partnerships, individual proprietors, and S corporations will be able to take the fair market value of their donation as a deduction--it is up to twice the cost of the basis of that food item--as a deduction for giving to charitable purposes.
We have about a billion pounds of food donated right now to people in America to help feed the hungry in America. It feeds about 26 million people. There are 96 billion pounds of food wasted in America. That is just an enormous amount. It is almost incomprehensible that we are talking about that amount. When you consider the fact that roughly 1 billion pounds of food donated helps feed 26 million, can you imagine, if we just increase it by a very small percentage, the amount of donated food there could be and how many people we could feed in America?
Senator Lugar's legislation is included. We believe it will make a dramatic impact on hunger in America. There are a lot of other provisions.
I see my colleague from Indiana, Mr. Bayh. I will be on the floor for a while. I want to give him the opportunity to share with us some of the things he has been active with. He has a provision in the legislation he has shepherded through the process. I will have him talk about that. He has also been a champion and strong supporter of this legislation and the entire package from day one. I thank him for his support,
and I appreciate him coming to the floor to talk about this issue.
I yield the floor.
Mr. President, I see the Senator from Indiana. I yield to him as much time as he may consume.
Mr. President, I thank the Senator from Indiana for his overly kind words with respect to my participation in this legislation. The Senator from Indiana has been truly one of the people out front and has been very supportive. I cannot count the number of press conferences I have asked the Senator from Indiana to be at trying to keep this ball rolling, and at times with a very busy schedule. He has always found time to associate himself with this cause and to continue to make sure it was on track in a bipartisan way.
That is how we get things done around here. I am very happy to have him as one of the prime cosponsors of this legislation. I again appreciate very much his kind words, but even more so appreciate his tremendous effort on making this legislation a reality.
I see the Senator from Rhode Island. If he is on a time schedule, I will be happy to yield the floor to provide him an opportunity to speak.
Mr. President, I thank the Senator from Rhode Island for his kind remarks with respect to the compromise that Senator Lieberman and I have engaged in to move this legislation forward. I appreciate his support of this legislation, as I do that of all of my colleagues.
As he stated, and he is correct, I do take issue with his perspective on the issue of charitable choice and the funding--allowing of government funds to be used by organizations that have some element of faith within their structure, whether it has been the guiding principles of the organization or with the programs that they administer.
I do not believe it violates the ``separation of church and state.'' I do believe organizations of faith should not
be discriminated against. We should not be in the business of just funding a set of organizations that have no faith component in them at the expense of those that do--for a lot of reasons, not the least of which is there is a lot of evidence out there, most of which is anecdotal I understand, but a growing body of evidence that organizations of faith are much more effective in dealing with problems, particularly the more systemic problems that we have.
But I object to the underlying premise of this argument that somehow or another we are violating the Founding Fathers' understanding of the separation of church and state.
I talk at a lot of schools. I ask kids: What words are in the Constitution, ``the free exercise of religion'' or ``separation of church and state''? Usually about 75 to 80 percent of the kids say, ``separation of church and state'' is in the Constitution, which of course it is not.
The Senator from Rhode Island talked about the genesis of that in referring to one of the Founding Fathers, referring to the establishment clause as erecting a wall of separation between church and state. But what were they talking about? They were talking about certainly the country from which they came, which was England, which had an established church. The Government funded the church, as many European countries did historically, for long periods of time. Certainly prior to the Reformation, the Catholic Church was intertwined very much so with the state. After the Reformation, each reform church had its own country and was funded in many cases.
People came to this country for religious freedom. They did not want an established religion. But even at the time in America there were certain colonies that had affinities for different religions. Maryland, for example--neighboring Maryland was considered more of a Catholic colony. Pennsylvania was home to the Quakers--on down the line.
There was a concern that that could come over here to this country, so they put in this clause that we should not have an established religion.
The difference is between the constitutional provisions that allow for the free exercise of religion and the prohibition against the establishment of religion. But this is really about freedom of religion; in other words, to practice whatever religious tenets you want and for the government not to get in your way in doing so.
What some are really arguing is freedom from religion, which I can tell you is completely antithetical to what our Founding Fathers believed.
We will have this debate. I am looking forward to it because I think it is important for the Senate, arguably the greatest deliberative body in the world, to talk about these important issues.
The role of faith in our society is central. It is central to the success of America. One of the reasons we are a successful country is because we are a faith-filled country. One of the reasons we are a faith-filled country is because we have a tremendous marketplace of ideas, whether it is the street-corner preacher or the old church down the street that has been there for centuries.
We have a marketplace of ideas of faith and that is what makes us: People out preaching the Word, talking about the values that faith imparts and the messages that faith imparts and its relevance to people's lives.
Here is a statistic I just marvel over. There are more people who go to church in America over a weekend, church and synagogue and temple, than to all the sporting events throughout the entire year in America. On one weekend, more people go to their places of worship than to all the sporting events that are held in America over the course of a year. That is remarkable. It is a great thing about America. It is what makes us unique. It is because we have not established religion. But it is not because we are saying people need to be free from religion. I think that is one of the concerns I have with the tack that the Senator from Rhode Island was taking.
Let me mention a couple of issues. Again, this is the beginning of a debate that is not about this bill. I repeat, we have taken everything having to do with the concept of equal treatment out of this legislation. We will save that debate for another day. But there are some things in this legislation I would like to address very briefly.
I see the Senator from New Jersey. I will not keep him long.
One of the items I am most excited about in this legislation is a provision called individual development accounts. Senator Lieberman and I and Senator Feinstein and many others, who have been advocates of this legislation for quite some time, are very excited about it being part of this initiative. Individual development accounts are a matched savings account for low-income and low- to moderate-income individuals who will have an opportunity to put up to $500 a year into a savings account and have that matched, dollar for dollar, up to $500. So it will be $1,000 total.
It is an exciting opportunity for these individuals to be able to put money aside. For what? So they can put it aside for three reasons: to buy a home, to get education, higher education, or, in some cases, technical training, vocational training, as well as start a small business, start a business. So it is a way for people to save for events in their lives that can transform their future economically: better education; a home, a place where they can save, invest, and build equity.
As everybody knows in this Chamber, the place where most people have the bulk of their savings is in their home, in the equity they have in their home. So the opportunity for home ownership, and having that money for a downpayment, is so important. And IDAs create that opportunity.
And finally, for starting that small business, being that entrepreneur--that spirit really drives America and really is the ladder of success so many people in America have access to--we want to create a nest egg for people to be able to buy that first piece of equipment. If you want to start a landscaping service, you can buy that lawn mower, you can buy the other tools you need to do that job, or a variety of other interests people get engaged in as their first business.
So we, Senator Lieberman and I, are very excited about this opportunity. We think it builds not just the opportunity for access to the home or to the education or to that small business, but it builds the virtue of deferred gratification. That is a virtue we sometimes do not practice very much in America, but it is a virtue of delaying the expenditure of that dollar, to put it aside, to save it for something that is more important than what you immediately have before you. And when I am talking about gratification, I am not talking about luxuries. I am talking about maybe simple things, maybe very minor things in the lives of people who are low to moderate income. But deferring that to something that may be transformational in their lives is really something we should create incentives to do because, again, it helps people move up that ladder of success in America.
I see a couple of my colleagues are in the Chamber. I am happy to yield the floor for their input.
Reserving the right to object, I may have a Senator on the way down to the Chamber who is trying to fit in here. How long is the Senator from New Jersey going to speak?
I have no objection.
Madam President, I suggest the absence of a quorum.
Mr. President, today I am pleased to be joined by Senator Inouye in reintroducing the ``Indian Tribal Surface Transportation Improvement Act of 2003'', a bill to reform and improve Indian Reservation…
Mr. President, today I am pleased to be joined by Senator Inouye in reintroducing the ``Indian Tribal Surface Transportation Improvement Act of 2003'', a bill to reform and improve Indian Reservation Road, IRR, program.
In the past two Congresses the Committee on Indian Affairs has held hearings on the problems with the IRR program and this bill provides much-needed clarifications to better meet the transportation needs in Native communities.
Involving as it does transportation and related issues, this bill includes an initiative I proposed last session to support commercial vehicle driving training programs at tribal colleges and universities.
Although reservation roads comprise just 2.63 percent of the Federal highway system, less than 1 percent of Federal aid has been allocated to Indian roads. This bill would allow the already-authorized funds for Indians to reach the intended beneficiaries.
As with any community, Indian reservations need efficient and effective road financing and construction to develop healthy economies and raise the standard of living.
It is no secret that when entrepreneurs, Indian or non-Indian, calculate whether to invest in a community they first look to see if the basic building blocks exist within the community: roads, highways, electricity, potable water, and other amenities.
Unfortunately, despite recent successes some Indian tribes have had with gaming, energy and natural resource development, most Indian tribes still suffer from poor infrastructure that thwarts investment and economic growth.
Building on the successes of the Indian Self Determination and Education Assistance Act, this bill authorizes the Federal Lands Highway Administration to create a 12-tribe pilot program to contract directly for roads funding.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, today I am pleased to be joined by Senator Inouye in re-introducing legislation to assist Indian tribes to fight the scourge of alcohol, drug and associated mental health problems in their communities.
Native Americans continue to be plagued by chronic alcohol and drug addictions which destroy their bodies and souls and inevitably require mental health treatment as well.
There are a good number of Federal agencies involved in treating these problems and, through no fault of their own, agency efforts are often un-coordinated and ineffective as a result.
Relying on models that are proven winners, the ``Native American Alcohol and Substance Abuse Program Consolidation Act of 2003'' authorizes Indian tribes and tribal consortia to string together these disparate programs and services and bring them together in one comprehensive and coordinated package.
In addition to achieving economies of scale in these Federal services, the bill would also encourage the use of automated clinical information systems and bring to bear state-of-the-art diagnostic and treatment tools
The two main themes of this bill, better use of resources combined with technological innovations have proven successful in other areas like Indian job training.
Just this week, Health and Human Services Secretary Thompson launched a new effort aimed at combating chronic health problems in minority communities.
Substance abuse and diabetes are included in Secretary Thompson's effort and this bill would go a long way in assisting Federal and tribal governments in that battle.
The mechanics of this bill are also consistent with the broad contours of the President's Management Agenda, increasing the effectiveness of Federal services without increasing the budget.
For these reasons, I am hopeful the bill will be well received by the Administration and the tribes so that it can be considered speedily in the weeks ahead.
I urge my colleagues to join me in supporting this important initiative and ask unanimous consent to have the text of the bill printed in the Record.
Mr. President, as I did last session, I am again pleased to introduce the ``Indian Tribal Contracting and Federal Lands Management Demonstration Project Act'' to expand the highly-successful Indian Self Determination and Education Assistance Act of 1975 and to bring Native knowledge, values and sensitivity to the management of our Federal lands.
I want to emphasize that this initiative is a starting point for a broader discussion about whether Federal law sufficiently protects sacred Indian places that are located on Federal lands.
Americans react viscerally when lands and sites held sacred are threatened. Whether the site in question is the Little Bighorn Battlefield in Montana; the American Cemetery at Omaha Beach in Normandy, France; or religious and ceremonial sites held dear by Native people.
Twenty-five years ago Congress passed the American Indian Religious Freedom Act which declared that it is ``the policy of the United States to protect and preserve for American Indians their inherent right of freedom to believe, express and exercise the traditional religions of the American Indian, Eskimo, Aleut, and Native Hawaiians, including but not limited to access to sites, use and possession of sacred objects, and the freedom to worship through ceremonials and traditional rites.''
A series of hearings held by the Committee on Indian Affairs over the past two years revealed that the AIRFA policy remains aspirational and the goals of that Act have not been realized.
The clashes between economic and cultural interests will also sharpen as our nation's needs for economic activities, such as logging, energy and mining, increases.
In 1970, President Nixon's Special Message to Congress on Indian Affairs changed forever Federal Indian law and policy. The President also signed into law legislation transferring the sacred Blue Lake lands back to the Pueblo of Taos. These two events set the stage for both the Indian Self Determination and Education Assistance Act, 1975, as well as the AIRFA, 1978.
The legislation I am re-introducing today will build on these precedents by setting up a Demonstration Project to expand opportunities for Native contracting on Federal lands. One goal of this bill is to bring to bear the knowledge and sensitivity of Native people to activities that are currently being carried out by Federal agencies.
Under the bill, the Secretary of the Interior would select up to 12 tribes or tribal organizations per year to provide archaeological, anthropological, ethnographic and cultural surveys and analysis; land management planning; and activities related to the identification, maintenance, or protection of lands considered to have religious, ceremonial or cultural significance to Indian tribes.
I urge my colleagues to join me in supporting this measure.
Mr. President, I ask unanimous consent that the bill be printed in the Record.
Mr. President, today I introduce the Fairness to All Fallen Vietnam War Service Members Act of 2003. Almost forty years ago, our country started sending a generation of young men off to fight in Vietnam. Over 58,000 American soldiers gave their lives to their country in and around the lands, skies, and seas of Vietnam.
The legislation I am introducing today is based on language which I previously introduced toward the end of the 107th Congress.
The ultimate sacrifices many of these men have made are honored on the Vietnam Veterans Memorial Wall here in Washington, D.C. There are, however, names that are missing from the wall, names that rightfully should be there with their fallen fellow Americans. It is now time to correct that omission.
On the morning of June 3, 1969, the United States Destroyer, USS Frank E. Evans, was cut in half during a training exercise by the Australian aircraft carrier, Melbourne. The front half of the destroyer sank in three minutes claiming the lives of seventy-four men.
While these men were not lost due to enemy fire, they were involved in serious combat only days before this tragedy. At the time of the accident, the USS Frank E. Evans was taking part in Operation Sea Spirit in the South China Sea which involved over 40 ships from Southeast Asia Treaty Organization Nations. These brave men were instrumental in forwarding American objectives in Vietnam.
The fact is these men died while serving their country and are due the rights and honors they deserve, including being listed on the Vietnam Memorial Wall.
Two of my fellow Coloradans, Brian Crowson and Del A. Francis were on board that fateful morning and survived this horrible accident. Sadly, 74 of their fellow sailors were not as fortunate.
At a time when we rightly honor heroes across our country, should we not also take the necessary step to ensure that our past heroes are also honored?
This legislation directs the Secretary of Defense to determine an appropriate manner to recognize and honor Vietnam Veterans who died in service to our Nation but whose names were excluded from the Vietnam Veterans Memorial Wall. It further asks for input from government agencies and organizations that originally constructed the Vietnam Veterans Memorial Wall regarding the feasibility of adding additional names. Finally, the bill asks for appropriate alternative options for recognizing these veterans should it be deemed that there is no logistical way to add these names.
As a veteran of the Korean War, I personally understand the ultimate sacrifice many of our brave men and women have made for the price of freedom. This recognition should not be taken lightly.
I look forward to working with my colleagues here in the Senate as well as the USS Frank E. Evans Association so that we can pass this long overdue legislation.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, today I am pleased to be joined by Senator Inouye in introducing the ``Federal Acknowledgment Process Reform Act of 2003''.
Since 1997 I have offered changes to the Federal Acknowledgment Process, FAP, which is the process by which Indian groups are ``recognized'' by the United States as tribes.
Recognition of a tribal group as a tribe brings with it the privileges, immunities and rights accorded to Indian tribes.
In recent years, the FAP has been described as ``broken'', ``too lengthy'', ``too costly'', ``without integrity'', ``not transparent'' and ``inconsistently applied'' to name but a few.
For petitioners that have waited literally generations for a final answer on their application, the process is too lengthy.
For petitioners of modest means driven to seek the financial support of ``a backer'', the process is too costly.
For interested parties who feel compelled to file Freedom of Information Act requests to secure information, the process is not transparent.
And for the uninitiated and those not familiar with the governing legal regime, the regulations do appear to be inconsistently applied.
The FAP has not been with us forever. In 1978, the Department of Interior established regulations in the Code of Federal Regulations, 25 CFR Part 83, to ``establish a departmental procedure and policy for acknowledging that certain American Indian groups exist as tribes.''
Since this administrative procedure was set up in 1978, over 270 groups have petitioned under the regulations, with 18 groups being awarded acknowledgment as a tribe, and 19 groups having been denied.
This means that nearly 230 groups are still waiting to hear on their petitions.
For those who think the Branch of Acknowledgment and Research, BAR, is a serial grantor of recognition: just last week the Golden Hill Paugussett group in Connecticut was preliminarily denied acknowledgment.
The delays petitioners face have led to understandable frustration: the Indian Affairs Committee has received testimony from groups where the individuals that originally filed the petition have passed away, and the struggle is carried on by their children, and even grandchildren.
Some petitioners have become so tired of waiting that they have sued the Secretary of Interior and some courts have forced the BAR to produce decisions by dates-certain.
Unfortunately this ``queue jumping'' has created adverse incentives, as more groups file lawsuits.
The kinks in the process have also caused understandable frustration on the part of other, non-Indian groups. These frustrations have led to voluminous Freedom of Information Act, FOIA, requests, and even lawsuits, as these groups have tried to secure information or seek a better understanding of the regulations.
As you might expect, once the lawsuits get started, paper starts churning. The BAR staff testified to the Indian Affairs Committee that their anthropologists, genealogists and historians spend 40 percent of their time just making photo-copies in response to FOIA requests.
The bill I am introducing today will resolve many of the problems I have described. It will do this first by introducing discipline into the process. Under this bill would-be-petitioners must include enough information in their ``letter of intent'' so that the BAR and other interested parties have a better idea of the context of the group. Obtaining more information will better assist the Secretary of Interior in providing notices to the group and interested parties; and the bill requires that such notices go out within 90 days, insuring timeliness.
Secondly, this bill will provide more resources to petitioners and interested parties, based on the needs of the group or party, something on which all observers of the process seem to be in agreement.
Third, this bill will provide more resources to the Department of Interior, another point on which there seems to be wide agreement.
I do not propose to merely throw more money at this problem. Instead, the bill establishes a research pilot project that will draw upon independent research institutions and consultation with the Smithsonian to expand the research capacity of the BAR.
The bill will also provide a resource to the Assistant Secretary that is sorely needed: an independent research and advisory board that can be called on by the Assistant Secretary to act as a peer reviewer and a second source upon which the Assistant Secretary can base his determination on a petition.
This board will consist of certified professionals and will be available to the Assistant Secretary: 1. at his discretion, if the Assistant Secretary and BAR disagree regarding whether particular criterion have been met in a petition; and 2. to provide outside peer
review and a second opinion on a proposed final determination.
The board will give the Assistant Secretary greater assurance in the soundness of his determination, and will provide a more solid foundation for any later appellate review.
Finally, this bill will provide the certainty of a statutory basis for the acknowledgment criteria that have been used by the BAR since 1978.
There appears to be widespread acceptance of the substantive validity of the criteria, but questions have been raised regarding whether those criteria should be codified. This bill answers that question definitively.
This bill addresses the criticisms of the FAP by increasing the transparency, consistency and integrity of the process, and at the same time removes some of the bureaucratic hurdles that have caused the process to be too costly and time-consuming.
I urge my colleagues to support this important measure and ask unanimous consent that a copy of the bill be printed in the Record.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I commend Senators Grassley and Baucus for bringing this important legislation to the floor, but I particularly commend and thank Senators Santorum and Lieberman for their principled…
Mr. President, I commend Senators Grassley and Baucus for bringing this important legislation to the floor, but I particularly commend and thank Senators Santorum and Lieberman for their principled and tireless efforts to bring this legislation to the floor and for recognizing that original versions of this legislation contained elements that were, to say the least, controversial.
Senator Santorum particularly recognized the need to provide additional resources to faith-based organizations and other charitable organizations through new incentives in the tax code to encourage people to contribute to charities. All of these issues compelled him to make a very difficult choice, a very important choice, and I think a very statesmanlike choice to send to the floor today a version of the bill that I assume will get the unanimous approval of this Senate.
It recognizes our shared belief that the more resources we can direct to organizations that are committed to helping people, the better off we will be. The increase in the social service block grant is a tremendous step forward and is something I know I am proud of, but certainly the Senator from Pennsylvania has to be very proud of because he is the principal architect of this effort, and the new tax advantages also are very important.
Indeed, Senator Santorum and Senator Lieberman worked very hard to improve legislation that in the other body was submitted as the Community Solutions Act of 2001, known as H.R. 7 in the 107th Congress. That legislation contained a number of controversial and potentially unconstitutional provisions, but they worked very diligently, very carefully, very thoughtfully to eliminate those provisions from their bill and ultimately today to bring this legislation to the floor, which I think and believe will get, as I said, unanimous approval by this body. Certainly I approve of it.
The CARE Act is going to provide increased resources for needed social services, and it is going to do so without including at this juncture troubling provisions that were in the original House bill. I know the Senator from Pennsylvania reserves his right to engage again on this issue--in fact, I believe he will exercise his right in all forums, and that is the glory of this body, and we shall engage in more extended debate, I think, in the future. But this afternoon is an opportunity to commend him, thank him, and recognize his wise and statesmanlike conduct. I again thank Senator Santorum.
The debate about church and state in this land precedes, indeed, the Constitution of the United States. It has been ongoing since the early days of the American experience. Religion has been an important part of our national life throughout our history. Indeed, European immigration in large part was motivated by the search for an environment conducive to freedom of conscience and religious exercise unhampered by State involvement.
Today, in the year 2003, religion remains a vital force in our national life and religiously affiliated institutions play a critical role in the provision of social services. For example, in 1996, Federal, State, and local governments granted $1.3 billion to Catholic Charities USA, comprising 64 percent of its budget. In 1999, 53 percent of Catholic Charities' budget came from State and local governments, and an additional 9 percent came from the Federal Government.
In 2001, United Jewish Communities received a Federal grant of $59.8 million. If indirect payments were included--for example, Medicaid, Medicare, vouchers, or food stamps--the amount flowing through religious organizations would be significantly higher.
Both of these mission-driven, faith-based groups are independently or separately incorporated as nonprofits and both are able to distinguish their religious activities from their secular social services activities.
So an initial point we must recognize in the debate about faith-based initiatives is that it is not whether religious groups will or should play a role in the spiritual and temporal lives of Americans--they do, and they will continue to do so--nor is the question about whether the government discriminates against faith-based charitable groups. The question is how the important roles faith-based organizations play can continue to meet the constitutional requirement of separation between church and state, both as a matter of law and as wise public policy.
This constitutional standard has strengthened religion in America compared to other countries around the world. We can see on the nightly newscasts the effects of intolerance across the globe, of established religions battling other beliefs. In America, we have been spared much of that. I believe it is directly attributable to the wise condition included in the First Amendment.
My awareness and sensitivity to these issues might spring in large part from my roots growing up in Rhode Island. As a child, I learned the history of Roger Williams and the founding of the colony of Rhode Island and Providence Plantation. Upon leaving the enforced orthodoxy of the Massachusetts Bay Colony, Roger Williams started a settlement that ultimately became Rhode Island. This settlement was founded on his belief, in his words: ``that no man should be molested for his conscience.''
The spirit of Roger Williams was captured by his contemporary, John Clarke, in the petition for a new royal charter by the people of Rhode Island in 1663. In his words, the people of Narragansett Bay:
have it much in their hearts, if they may be permitted, to
hold forth a lively experiment, that a flourishing and civil
state my stand, yea, and best be maintained. . . . with a
full liberty in religious commitments.
As a result of this religious liberty, Rhode Island became a refuge for people persecuted for their religious beliefs elsewhere. And Anabaptists, Quakers, and Jews settled in Rhode Island because of its commitment to religious liberty and tolerance.
This lively experiment became a model for the Founding Fathers and helped lead to the drafting of the First Amendment: ``Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof.''
In explaining what the First Amendment meant to the Danbury Baptist Association in 1802, Thomas Jefferson wrote that the combined effect of the establishment and free exercise clauses of the Constitution was a ``wall of separation between church and state.''
Jefferson's comments were not unique to him. Senator Durbin has already made a reference to President
James Madison. President Madison what was meant by this separation of church and state extremely clear in several messages he delivered on Government funding of religious endeavors. In 1811, he vetoed a congressional bill granting the use of some Federal land to a church in the Mississippi territory. President Madison stated:
Because the bill in reserving a certain parcel of land in
the United States for the use of said Baptist Church
comprises a principle and precedent for the appropriation of
funds to the United States for the use and support of
religious societies, contrary to the article of the
Constitution which declares that ``Congress shall make no law
respecting a religious establishment''. . . Resolved. That
the said bill does not pass.
Indeed, I find it interesting that conservatives would so cavalierly dismiss so much of the history of this country and disregard so many of the fundamental principles of the Founding Fathers. President Bush and his conservative followers want to transform the relationship between church and state by directly funding pervasively sectarian organizations. He has done this by regulation and by Executive order, since he has largely been unsuccessful in accomplishing these tasks through the legislative process.
Just consider some of the changes that he has advanced thus far. In a June 2001 Department of Justice memorandum, the Department of Justice took the legal position that faith-based organizations that are given Federal taxpayer dollars to run governmental programs should be able to engage in employment discrimination on the basis of religion. Subsequent to this memorandum, the President by Executive order overrode a rule first enunciated by President Franklin Roosevelt that the Federal Government should not give contracts to employers who engage in discrimination on the basis of religion. Thus, it is now the position of the White House that government contractors can discriminate.
The President believes the government should fund faith-based organizations who use proselytization and prayer to cure drug addiction and other social programs. In his State of the Union Address, President Bush cited one such program in Louisiana that expressly combats drug abuse with faith. The head of another often-cited religious program, Teen Challenge, boasted to Congress that he was not only able to get kids to stop using drugs, he converted Jews into Christians in the process.
In newly proposed HUD regulations, the Administration says that Federal funds can be used to construct a religious building used for religious activities if the building also can be used for a public purpose such as counseling or a food pantry. At least that is the proposal.
With these and other initiatives, the President is attempting to breach the wall the Founding Fathers set up between church and state. These initiatives are clearly designed to fund proselytization and to promote certain types of religion.
There are legal challenges being raised to many of these proposals. But the long and short of it is, we have an opportunity to debate and to decide these issues through the legislative process, and we have an obligation to do so. And when there is a more robust, more extensive attempt to legislatively condone or sanction these faith-based initiatives, I believe there are going to be three major areas we will need to address.
One area is effective restraints on proselytization with taxpayer funds. The second is compliance with local regulatory standards in the delivery of public programs. And the third is prohibiting the use of public funds in employment discrimination.
First, with respect to proselytization. If the separation of church and state means anything, then in my mind, it must mean that no American should be compelled to pass a sectarian test or participate in sectarian exercises to receive a public benefit. This principle should be included in legislation and not left to the more shifting sands of regulatory pronouncements.
Second, many advocates of faith-based initiatives argue that they simply want a level playing field. Let's take them at their word. If State licensing arrangements are appropriate and necessary to protect children in publicly funded programs, why should religious providers be exempt from such licensing requirements? If we consider this issue, we will need to look for the even application of local and state laws, particularly laws with respect to the protection of children and public health. This is what we will need to do in order to truly create an even playing field.
Finally, we must address the issue of employment discrimination. Title VII provides an exemption for religious groups in certain situations. In the Amos case, the Supreme Court held that a religious group using its own funds may claim the Title VII exemption. In the words of the Court, the purpose of the exemption was to alleviate ``significant governmental interference with the ability of religious organizations to define and carry out their religious missions.''
Today, with respect to the Administration's proposal, we must recognize that rather than seeking autonomy from governmental interference, religious groups are seeking taxpayer funds to carry out governmental responsibilities. Indeed, in the one unreported case that has ruled on the use of public funds in this way, the court, in this labor case, concluded that the title VII exception does not apply.
As James Madison said in 1785, in his ``Memorial and Remonstrance Against Religious Assessments,'' in opposition to a proposal by Patrick Henry that all Virginians be taxed to support teachers of the Christian religion:
If ``all men are by nature equally free and independent,''
. . . above all are they to be considered as retaining an
``equal title to the free exercise of Religion according to
the dictates of conscience.'' Whilst we assert for ourselves
a freedom to embrace, to profess and to observe the Religion
which we believe to be of divine origin, we cannot deny an
equal freedom to those whose minds have not yet yielded to
the evidence which has convinced us. If this freedom be
abused, it is an offense against God, not against man: To
God, therefore, not to man, must an account be rendered.
All of this leads me to my final point. In the words of the New England poet, Robert Frost, ``Good fences make good neighbors.'' What might be permissible under the law does not always guarantee the wisest policy.
We need to remember that as we debate the President's faith-based initiative, religion has thrived in America because few people confuse religion with government. Religion has been a citadel of conscience and a check on government because it draws its strength and its support from its adherents, not from bureaucratic patrons.
The religious communities of America that have been unequivocally supporting the President's attempts to allow discrimination with Federal dollars might be mindful of the old saying: Be careful of what you pray for.
As the House of Representatives has made clear, we are going to be discussing this issue in the upcoming months on welfare, SAMSHA, National Service, and other programs. It is my hope the Senate will undertake a more careful look at how the charitable choice provisions in these bills inhibit the free exercise of religion, rather than encourage it.
Again, I thank the sponsors and the chairman and ranking member of the Finance Committee for bringing this bill to the floor. This is something we will all support, and we will do so with the notion and the idea and the commitment to provide resources for people who want to help other people, and do so consistent with the spirit and the letter of the Constitution.
I yield the floor.
Mr. President, I ask unanimous consent that the Senate now return to legislative session and proceed to the consideration of S. 476, the CARE Act, as provided under the previous order. Mr. President,…
Mr. President, I ask unanimous consent that the Senate now return to legislative session and proceed to the consideration of S. 476, the CARE Act, as provided under the previous order.
Mr. President, I have a few remarks on the legislation. I am sure my good colleague, Senator Baucus, has remarks as the manager for the Democratic Members. We would also like to take quick action on a managers' amendment that is in order under a unanimous consent agreement. There are a few issues that have to be cleared on the amendment.
I rise to speak on the CARE Act of 2003. I will first talk generally about the charitable provisions in the bill and then talk about those provisions designed to combat corporate tax shelters.
The CARE Act seeks to support that great American tradition--helping a neighbor in need. Our Nation's tradition of caring and charitable support goes back to the founding. When faced with tragedy or hardship in our communities, we have always been a people who have rolled up our sleeves to pitch in, rather than leaning on a shovel waiting for the government to show up.
The charitable tradition in America has certainly been for the common good. Unfortunately, there are not many K Street lobbyists for charities and for the common good.
That is why this legislation is a direct testimony to the leadership of President Bush. There is no question that but for his efforts, this legislation for the common good would not have seen the light of the Senate floor.
Let me note that commentators have rushed to state that the President's efforts to strengthen America's charitable tradition has been watered down. Nothing could be further from the truth. This legislation goes far in meeting the President's ambitious goals for a greater role for charities in assisting those most in need.
And legislation is only part of the story. The President's speeches and visits have done even more to energize the charitable sector of this country. Hardly a week goes by when I am not stopped by someone who runs a charity, or is active in a charity, and they ask me how they can get involved in the President's proposal, how they can help. Clearly, President Bush's words have been heard by America's charities and they are eager to turn his words into deeds of compassion and aid.
In addition to this legislation being a tribute to President Bush's leadership, let me also note the tremendous efforts of Senators Santorum and Lieberman to bring this bill to the Senate floor. I commend them for their energy in making the CARE Act a reality. Finally, I'm pleased to have worked with Senator Baucus, the ranking member of the Finance Committee. This legislation continues our bipartisan efforts as to tax legislation.
Mr. President, for the benefit of my colleagues let me now highlight some of the major tax provisions of the CARE Act that encourage charitable giving.
First, is the creation of a charitable deduction for nonitemizers. Given that over half of Americans do not itemize their tax return, this provision will encourage taxpayers to give to charities, regardless of income. The legislation allows for charitable deduction of up to $500 for a married couple giving over $500 per year. For an individual filing single, it is a deduction of up to $250 for a person who gives over $250 per year. For example, an individual who doesn't itemize and gives $400 to charity, could deduct $150 from their taxes. This provision was designed to encourage new giving and also limit possible abuses.
Next is a major provision that will provide for tax-free distribution from Individual Retirement Arrangements, IRAs, to charities. This is a provision that is important to many major charities, particularly universities. The Finance Committee heard testimony from the President of the University of Iowa about the importance of this provision in encouraging new giving. The legislation provides that direct distributions are excluded from income at the age of 70\1/2\ and distributions to a charitable trust can be excluded after the age of 59\1/2\.
We then have language that encourages donations of food inventory, book inventory and computer technology. I would note that my colleagues, Senator Lugar, and Senator Lincoln, a member of the Finance Committee, were strong advocates for the legislation involving food donation. I'm particularly pleased that this legislation will give farmers and ranchers a fairer deal when it comes to donation of food.
Conservation is also a part of this bill. Efforts to conserve our land and limit development benefit our Nation as well as farmers and ranchers who work on the land. The CARE Act contains language I have long supported that will encourage conservation of land through a 25- percent reduction in the capital gains tax of the sale of undeveloped land, or conservation easements. The sale must be to a charitable organization and the land must be dedicated for conservation purposes. I am pleased that President Bush also included this proposal in his budget.
The bill also encourages gifts of land for conservation purposes. This is an issue long advocated by Senator Baucus, which I am pleased to support.
These are the major tax provisions that encourage charitable giving contained in this bill. I would note that I am pleased that the legislation does contain provisions requiring greater sunshine and transparency in the work of charities. It is my belief that just as we are encouraging people to write more checks, we need to ensure that those checks are being cashed for a charitable purpose. In addition, the bill authorizes a serious increase in funding for the Exempt Organizations Office at the IRS to better police the few bad apples among the nonprofits.
My colleagues should also be aware that this legislation addresses the abuse of charities by terrorist organizations, making it easier to shutdown or suspend such organizations.
Let me note also that this bill contains $1.4 billion in new funding for Social Services block grants, SSBG. This is a very important provision that will greatly benefit the States and, more
importantly, those in need. I would note that this was a matter of great priority for me, and I am glad to see we have been able to include this funding. The provision also gives States greater flexibility in how to use the SSBG funds.
My colleagues will be pleased to know that this bill is fully paid for. I turn now to discuss those provisions regarding abusive corporate tax shelters that are of great importance.
We have known for many years that abusive tax shelters, which are structured to exploit unintended consequences of our complicated Federal income tax system, erode the Federal tax base and the public's confidence in the tax system. Such transactions are patently unfair to the vast majority of taxpayers who do their best to comply with the letter and spirit of the tax law.
As a result, the Finance Committee has worked exceedingly hard over the past several years to develop several legislative discussion drafts for public review and comment. Thoughtful and well-considered comments on these drafts have been greatly appreciated by the staff and members of the Finance Committee. The collaborative efforts of those involved in the discussion drafts combined with the recent request for legislative assistance from the Treasury Department and IRS formed the basis for our most recent approach to dealing with abusive tax avoidance transactions.
The antitax shelter provisions contained in the CARE Act encourages taxpayer disclosure of potentially abusive tax avoidance transactions. It is surprising and unfortunate that taxpayers, though required to disclose tax shelter transactions under present law, have refused to comply. The Treasury Department and IRS report that the 2001 tax filing season produced a mere 272 tax shelter return disclosures from only 99 corporate taxpayers, a fraction of transactions requiring such disclosure.
Today's bill will curb non-compliance by providing clearer and more objective rules for the reporting of potential tax shelters and by providing strong penalties for anyone who refuses to comply with the revised disclosure requirements.
The legislation has been carefully structured to reward those who are forthcoming with disclosure. I wholeheartedly agree with the remarks offered by a recent Treasury Assistant Secretary for Tax Policy, that ``if a taxpayer is comfortable entering into a transaction, a promoter is comfortable selling it, and an advisor is comfortable blessing it, they all should be comfortable disclosing it to the IRS.''
Transparency is essential to an evaluation by the IRS and ultimately by the Congress of the United States as to whether the tax benefits generated by complex business transactions are appropriate interpretations of existing tax law.
To the extent such interpretations were unintended, the bill allows Congress to amend or clarify existing tax law. To the extent such interpretations are appropriate, all taxpayers--from the largest U.S. multinational conglomerate to the smallest local feedstore owner in Iowa--will benefit when transactions are publicly sanctioned in the form of an ``angel list'' of good transactions. This legislation accomplishes both of these objectives.
This year's legislation contains a new provision that would clarify the economic substance doctrine. The economic substance doctrine was created by the courts as a flexible text to determine whether a transaction is a tax scam or valid business deal.
Last year, there were several court rulings that, in my view, misapplied this doctrine. These rulings now stand as legal precedent that can be used to justify abusive schemes in the future. Today's clarification is intended to overturn those rulings. If a court finds that a shelter violates our clarification, the shelter participant would be subject to a strict 40 percent penalty on any tax due. This is a very tough anti-shelter provision.
Mr. President, I appreciate my colleagues' patience as I have reviewed the key provisions of the CARE Act. I think it is legislation that provides needed encouragement for charities and charitable giving in this country. In addition, it takes real steps toward addressing corporate tax shelters. I strongly encourage my colleagues to support this legislation.
I yield the floor and suggest the absence of a quorum.
Mr. President, first of all, I thank Senator Baucus for the compliments he gave me. More importantly, it emphasizes, as I have tried to indicate, the great cooperation I have had from him. Legislation such as this has some controversial provisions in it, and you don't get a piece of legislation such as this to the floor without the bipartisan cooperation that has been exhibited. I thank him for that.
Amendment No. 526
(Purpose: To provide a Managers' amendment)
Mr. President, I send an amendment to the desk and ask for its immediate consideration. This is what is referred to as the managers' amendment.
Mr. President, I ask unanimous consent that further reading of the amendment be dispensed with.
Mr. President, I ask unanimous consent that all time be yielded back on the amendment.
Mr. President, I further ask unanimous consent that the amendment be agreed to and the motion to reconsider be laid upon the table.
Mr. President, I have already complimented Senator Santorum and Senator Lieberman for their joint work on most of the provisions of this legislation. I am happy to have Senator Santorum, who is also a member of the Senate Finance Committee, manage a bill that he has been central to getting those provisions into law.
I suggest the absence of a quorum.
Show 8 more
Mr. President, I ask unanimous consent the order for the quorum call be rescinded. Mr. President, I thank the chairman of the Finance Committee, Senator Grassley, for the great job he has done in…
Mr. President, I ask unanimous consent the order for the quorum call be rescinded.
Mr. President, I thank the chairman of the Finance Committee, Senator Grassley, for the great job he has done in putting this bill together. It is not easy. There are lots of different components and many Senators have legitimately different points of view. I commend him for his yeoman work. He is not here at the moment, but I want him to know, in the arena of the Senate, and publicly, he has done a great job. The folks in Iowa must be very proud of him.
The chairman and I together are considering a bill designed to help charitable organizations--that is the main goal here--and, therefore, to help our communities.
The bill is called the Charity Aid Recovery and Empowerment Act, otherwise known as CARE. Our President said it well:
In order to fight evil we must do good. [And] it is the
gathering momentum of millions of acts of kindness and
compassion which define the true face of America.
I think that is very true. More than peoples in any other country, Americans are noted for their openness, their generosity, and their kindness. At a time when Americans are at war and our economy is sagging, this bill is more important than ever.
The economy is in worse shape than it has been in over a decade. Too many Americans go to bed hungry at night. Two million Americans have lost their jobs since 2001. Men, women, and children are increasingly relying on charities to meet their needs. The problem is made worse because our States are strapped with huge budget deficits. States are actually the No. 1 provider of social services, but presently they are experiencing the largest deficits they have had in 40 years.
This is where charities come in. Charities deliver food, water, clothing, and counseling to those in need. They are the first responders to these quiet tragedies. Let me give a few examples from my own home State of Montana.
Each year, the Montana Food Bank Network serves 1.5 million meals, including 200,000 meals to our State's children. Clearly our children can't learn if they go hungry.
There are roughly 30 adult literacy programs in Montana serving over 5,000 people.
Programs such as the Adult Literacy Center in Billings, MT, and the Literacy Volunteers of America in Butte provide free adult literacy classes to anyone who walks in the door, free to anyone who walks in. Groups like the Blackfoot Challenge provide local voluntary solutions to environmental problems like restoring stream habitat.
I copied the model of Senator Bob Graham of Florida. He has what is called workday projects once a month and I do, too. One day I worked at Blackfoot Challenge and all of us together in the Blackfoot Valley--not all but a bunch of us, 15 people--volunteered our time and work to restore a stream habitat. Ranchers in the old days just plowed a straight channel through their places and eliminated the meandering nature of streams, which made it difficult for bull trout to come up and spawn. We decided to do this project together, in part because the higher-ups couldn't agree on anything. The Fish and Wildlife Service, State Fish and Wildlife, and Parks and all the government agencies couldn't get together, so locally we just said we are going to do it ourselves--and we did. It is such volunteer, charitable efforts that make a huge difference.
Our State's economy also benefits from tourism, and keeping our streams clean and teeming with fish is good for our economy. In fact, I might say, I was delayed coming to the floor because I was talking to a fellow who could hardly wait to get back to Montana because the right hatch is going on now. He is going to go fishing in the next couple of days. He couldn't wait to get back home.
The list goes on: Montanans, working in homeless shelters, churches, libraries, schools, boys and girls clubs, substance abuse centers, and jails.
Our State is not alone. This is true all across our country. In communities, millions of Americans depend upon the generosity of their neighbors and upon charitable organizations. The CARE Act is designed to help these organizations, helping them by creating incentives to encourage more contributions to charity--help them receive more contributions.
Let me describe some of the main provisions of the bill. The provision that has received the most attention is the above-the-line deduction for charitable contributions for people who do not itemize their deductions. Most Americans actually use the standard deduction-- about 70 percent. This says: OK, all you folks who use the standard deduction--that is, you do not itemize your deductions--we will provide for an above-the-line charitable contribution for you as well, even though you do not itemize.
I must say, I have some concerns about this provision. Why? Because we tried this before. It didn't work very well. That is why we eliminated the deduction in 1986. More specifically, I am concerned that the deduction will not provide much of an incentive for charitable giving while making the Tax Code even more complicated. Nonetheless, the President has made this particular proposal a top priority and, in light of that, I am willing to give the proposal a chance. So we limited the proposal to 2 years to give us time to study it and see how it is working and gain from the experience.
While the nonitemizer deduction has received most of the attention, there are several other provisions of the bill that have strong bipartisan support. They could provide a significant boost to charitable giving. First, we provide enhanced deductions for contributions of food, of books, and computers. In response to growing economic hardship and hunger that has gone along with it, we have increased the deduction for contributions of surplus food. In most cases, the Tax Code provides the same tax deduction for food hauled to a landfill as it does for food donated to charities. That does not make a lot of sense.
Businesses that choose to contribute food instead of throwing it away are faced with the added costs of storing, packaging, and trucking the food to the charity.
So our new enhanced deduction will encourage business, farmers, and ranchers to contribute the food by offsetting these costs associated with the donations.
This makes it easier for the farmer in Montana to receive a fair deduction for giving food to a local food bank, for example.
We also make it easier for a publisher to donate extra books to a local library. Sometimes lots of books get stacked up and cannot be sold. I think it is a good idea to be able to donate them. And kids will be able to get much better access to computers and cutting edge technology.
Second, we expand the IRA rollover exception to allow individuals to donate their IRAs directly to charity without taking a tax hit.
Under current law, taxpayers, say, who are prospective donors would include their IRA income as taxable income and then take a corresponding charitable deduction, subject to limits, when they want to donate that IRA to a charity. The provision in the bill makes that easier, allowing direct giving; that is, streamlining the process and eliminating the limits that impede giving.
Third, in this bill we provide several important new incentives for voluntary conservation; for example, incentives to encourage contributions of conservation easements, which are so important, especially for my State of Montana and throughout the Nation. This means that cash poor/land rich farmers--which I must say, regrettably, is the rule, not the exception--can donate the conservation rights of their property and get a tax benefit and still keep the family farm in the family.
While the majority of the provisions in this bill encourage giving to charities, there are also provisions that help ensure that charities are responsible public citizens. As many have noticed, national newspapers have recently detailed the secretive use of charities by terrorist organizations. This is, obviously, a serious problem. The large majority of American charities are law abiding and serve an invaluable function. But there are a few exceptions.
So this legislation gives authority to the IRS to immediately revoke the tax-exempt status of charities that are suspected of giving aid to terrorist groups. When there is a crisis in confidence with respect to charities, it hurts honest groups. The charities that have worked hard to further their noble missions should not be jeopardized because of bad ``charities'' doing bad things.
The Finance Committee bill attempts to cure this by giving watchdogs and donors better tools to monitor the activities of charities. The CARE Act gives State attorneys general more authority to review the IRS filings of tax-exempt organizations.
In addition, the bill lets donors see more information about communications between charities and the IRS. These important steps will go a long way to help restore America's confidence in charities.
I have just provided some highlights of the bill, but there are a number of other important provisions. All told, this package includes many proposals that enjoy widespread support. It has bipartisan support. In fact, many provisions have been approved by the Senate.
With war costs on the horizon, and current budget deficits, it is essential we pay for this bill. I applaud Chairman Grassley for insisting that these tax cuts be paid for. So let me turn to the provisions which cover the costs.
First, we have included a proposal that takes aim at the proliferation of abusive tax shelters. I, along with Senator Grassley, introduced the Tax Shelter Transparency Act to encourage more timely and accurate disclosure of these abusive transactions. Under the proposal, we provide a disincentive to promoters, advisors, and taxpayers by subjecting them to stiff penalties for failing to acknowledge these transactions to the IRS.
The proposal also clarifies a definition of what is known as economic substance. That means it forces companies to engage in real business planning instead of tax-driven hoaxes. The Joint Committee on Taxation recently released its Enron report. The transactions it reviewed demonstrate the need for strong anti-avoidance rules to combat tax- motivated transactions. These deals might satisfy the technical requirements of the Tax Code, as well as administrative rules, but they serve little or no other purpose than to generate income tax or financial statement benefits; that is, there is no economic substance to the transactions. And the American taxpayers are cheated, frankly-- those who do not have the ability to hire high-paid counsel and accountants to find these very complicated measures which, frankly, even the IRS cannot figure out in a lot of cases.
It is just not right when the majority of taxpayers--such as the hardware store owner, say, in Butte, MT--have to pay their fair share of taxes while these big corporations twist their way out of paying their own fair share. That is, I think, simply wrong. But it is the right thing to do to use this proposal to pay for tax incentives to benefit the charitable community. It is the right thing to do and the right time to do it.
I urge my colleagues to support this legislation.
I yield the floor.
Mr. President, during his State of the Union speech this week, President Bush emphasized the importance of local and charitable initiatives that help define the character of the many communities that…
Mr. President, during his State of the Union speech this week, President Bush emphasized the importance of local and charitable initiatives that help define the character of the many communities that make up the mosaic of our country. I have come to the floor today to discuss a community tradition that is unique to many of Alaska's remote villages and which should be recognized and supported by the Federal Government.
Subsistance whaling is vital to the survival of several Alaska Native communities. In many of our remote villages, the whale hunt is a tradition that has been carried on over many millennia. As part of that tradition, it is the custom that the captain of the hunt make all provisions for the meals, wages and equipment costs associated with the hunt.
After the hunt, the Captain is repaid in whale meat and muktuk, which is blubber and skin. However, as part of the tradition, the Captain donates a substantial portion of the whale to his village in order to help the community survive the harsh winter.
While the International Whaling Commission, IWC, has banned commercial whaling, it has specifically recognized the cultural significance of whaling to the Alaska Native community and has allowed them to continue the seasonal hunt. The IWC recognizes that the traditional whale hunt is not carried on for financial gain. Although the hunt generates no financial gain to the whaling captain, the captain incurs real expenses.
Since the whaling captain is not engaged in a business, he is not permitted to deduct the costs he incurs from his taxes. In order to maintain the traditional hunt and to offset some of the costs incurred by the Captain, I am today introducing legislation that would allow the captain to claim a charitable deduction of up to $10,000 to help defray the costs associated with providing this community service.
I want to point out that if the Captain incurred all of these expenses and then donated the whale meat to a local charitable organization, the Captain would almost certainly be able to deduct the costs he incurred in outfitting the boat for the charitable purpose. However, the cultural significance of the Captain's sharing the whale with the community would be lost. Moreover, since there is no commercial market for whale meat because of the international whaling bank, there is no way to set the value of such a charitable contribution.
This is a very modest proposal and I urge my colleagues to support this measure.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I speak today on behalf of Alaska's most vulnerable individuals, our children, the disabled, and the elderly poor. Since its enactment in 1965, the Medicaid program has helped States provide low-income and disabled individuals with access to vital health care services. In 1997, Congress allowed States to take on certain health-related responsibilities for children. The Denali Kid Care program, a Medicaid expansion, has been very successful in providing health services for Alaskan children. Unfortunately, under current law many Alaskans who rely on this program could lose some or all of their Medicaid coverage. This is because Alaska's Federal Medical Assistance percentage, FMAP, adjustment, a correction to the Medicaid formula due to the high cost of health care in Alaska, will expire within the next 2 fiscal years. An FMAP correction is necessary for Alaska because this ``one-size-fits-all'' formula does not account for variations in cost-of-living, and does not consider Alaska's higher federally mandated poverty level.
First of all, the FMAP formula was developed in 1946, 13 years before Alaska was admitted to the Union. This archaic formula is used to calculate the Federal share of Medicaid costs for each State. The calculations are based on the per capita income of individual States relative to the national per capita income. In this way, States with higher per capita incomes end up paying a higher percentage of their Medicaid costs. This formula appears to work well for States near the national norms for most economic indicators. It most certainly does not work in the State of Alaska, however, where these economic indicators appear more frequently as statistical exceptions and outlyers.
The problem is fairly simple: it just costs more to do business in Alaska, and this includes health care. A national per capita income threshold is not a fair indicator unless it takes into account the cost of living in that area. The cost-of-living adjustment for Federal employees in Alaska suggests that it costs 25 percent more to live in Alaska than in the lower 48, and Federal employee salaries are adjusted accordingly. A dollar simply does not buy the same thing in Alaska that it does in the lower 48.
This is especially true for health care costs. Estimates suggest that, on average, it costs up to 71 percent more to deliver health care services in Alaska. American Hospital Association data shows that Alaska has the highest average expense per hospital admission of any State in the Nation. But let's talk real numbers again. If you were to be admitted to a hospital in Oregon, on average the cost would be $6,649.00; in Alaska the same average hospital stay costs almost double, $10,859.00. There are also higher costs associated with limited road access and necessary air ambulance service for rural and isolated communities, but the Medicaid FMAP formula does not consider any of these additional costs.
In addition to the higher cost of services in Alaska, the Federal Government sets the poverty level 20 percent higher in Alaska than in any of the lower 48 States. This means 1 out of every 5 Alaskans is eligible for Medicaid. The problem is that this is essentially an unfunded Federal mandate because the FMAP formula, again, does not change to reflect this additional requirement. The higher demand for services that results from the higher poverty level dilutes our resources. The Medicaid FMAP formula was developed before Alaska became a State and does NOT provide the funds to cover all of those who are eligible.
However, in 1997 and again in 2000, Congress recognized that the Medicaid FMAP formula was unfair for Alaska and enacted an adjustment to the formula. Due in part to this more equitable funding and a careful re-allocation of resources, Alaska now: has the lowest age- adjusted death rate for breast cancer in the Nation; has one of the lowest infant mortality rates in the Nation; and has one of the lowest percentages of low birth weight babies in the Nation.
These are encouraging statistics, but more can and must be done to improve access to quality health care. All disabled and low-income Americans, including Alaskans, have been assured access to quality medical care. Alaska has proven it can deliver this quality care, but only with the necessary adjustment to the FMAP formula that recognizes the reality of Alaska's needs.
This issue is timely because the Congress has the opportunity to allow the State of Alaska to plan for the future. Planning is the essence of good management, and when it comes to health care, we must allow States to plan for future needs. In short, the Federal Government must remember its commitment to Alaskans, and allow my State a benefit that all other states have, assurance that money for vital Medicaid services will not just dry up and disappear.
Alaskans do not seek charity, we seek equity. The Congress has supported this request twice before, and I ask for an additional extension to honor Federal commitments to my state. The legislation that I am introducing today will permanently adjust the Medicaid formula for Alaska. I sincerely hope that my colleagues will support this vital legislation that will preserve my State's ability to provide health insurance to the most vulnerable Alaskans.
Mr. President, I rise to introduce a bill to establish the Denali Transportation System.
This bill in intended to help create in the same beneficial transportation system in Alaska as exists for every other State in the Union. It is patterned after a similar effort adopted years ago for the Appalachian region, which has demonstrated beyond any doubt that transportation investment is wise investment.
The bill authorizes the Secretary of Transportation to establish a program to fund the costs of construction of the Denali Transportation System, at a level of $450 million per year from Fiscal Year 2004 through Fiscal Year 2009. As new roads are constructed, they will become part of the National Highway System.
As my colleagues are aware, Alaska's ability to develop a strong economy for the benefit of the State and the nation is deeply impaired by the lack of transportation. This affects all aspects of life in the 49th State, from the delivery of fuel and essential services to individuals and families in our many remote villages, to our ability to develop Alaska's abundance of valuable natural resources. Only our major cities have modern roadways, and many of those remain isolated.
No State, or its citizens, can prosper without adequate transportation systems. In much of the country, such systems have been in place since before
the American Revolution, and have been constantly changing, adapting and being upgraded ever since. In much of Alaska, in contrast, residents are still forced to travel between communities by boat, or on frozen rivers, just as they did when the Territory of Alaska was first purchased from Imperial Russia. In this day, and age, such a situation is completely unacceptable. It is a lasting mark of neglect, and it is past time to rectify it.
The Denali Transportation System will provide far greater benefits than costs. As we enter an era where gigantic natural changes are occurring in the Arctic environment, and ice-free maritime transportation through the Arctic Ocean is expected to become a reality within decades, it is critical that we begin to prepare ourselves for those changes. Adequate transportation connections to, and within, America's only Arctic State are imperative.
As we debate a Federal budget during a time when the economy is struggling, let us not forget that the key to long-term prosperity is wise investment. Investing in Alaska is investing wisely. We have incomparable resources and vigorous citizens. It is time we have the transportation system that will allow those assets to be used as they should.
Mr. President, I ask unanimously consent that the text of the bill be printed in the Record.
Mr. President, today, I am joined by my colleague, Senator Dorgan, in introducing the Professional Boxing Amendments Act of 2003. This legislation is designed to strengthen existing Federal boxing…
Mr. President, today, I am joined by my colleague, Senator Dorgan, in introducing the Professional Boxing Amendments Act of 2003. This legislation is designed to strengthen existing Federal boxing laws by making uniform certain health and safety standards, establish a centralized medical registry to be used by local commissions to protect boxers, reduce arbitrary practices of sanctioning organizations, and provide uniformity in ranking criteria and contractual guidelines. This legislation also would establish a Federal regulatory entity to oversee professional boxing and set uniform standards for certain aspects of the sport.
Since 1996, Congress has acted to improve the sport of boxing by passing two laws, the Professional Boxing Safety Act of 1996, and the Muhammad Ali Boxing Reform Act of 2000. These laws were intended to establish uniform standards to improve the health and safety of boxers, and to better protect them from the sometimes coercive, exploitative, and unethical business practices of promoters, managers, and sanctioning organizations.
While the Professional Boxing Safety Act, as amended by the Muhammad Ali Act, has had some positive effects on the sport, I am concerned by the repeated failure of some State and tribal boxing commissions to comply with the law, and the lack of enforcement of the law by both Federal and State law enforcement officials. Corruption remains endemic in professional boxing, and the sport continues to be beset with a variety of problems, some beyond the scope of the current system of local regulation.
Therefore, the bill we are introducing today would further strengthen Federal boxing laws, and also create a Federal regulatory entity, the ``United States Boxing Administration'', USBA, to oversee the sport. The USBA would be headed by an Administrator, appointed by the President, with the advice and consent of the Senate.
The primary functions of the USBA would be to protect the health, safety, and general interests of boxers. More specifically, the USBA would, among other things: administer Federal boxing laws and coordinate with other federal regulatory agencies to ensure that these laws are enforced; oversee all professional boxing matches in the United States; and work with the boxing industry and local commissions to improve the status and standards of the sport. The USBA would license boxers, promoters, managers, and sanctioning organizations, and revoke or suspend such licenses if the USBA believes that such action is in the public interest. No longer would a boxer be able to forum- shop for a state with a weak commission if he or she is undeserving of a license.
Under this legislative proposal, the fines collected and licensing fees imposed by the USBA would be used to fund a percentage of its activities. The USBA also would maintain a centralized database of medical and statistical information pertaining to boxers in the United States that would be used confidentially by local commissions in making licensing decisions.
Let me be clear. The USBA would not be intended to micro-manage boxing by interfering with the daily operations of local boxing commissions. Instead, the USBA would work in consultation with local commissions, and the USBA Administrator would only exercise his/her
authority should reasonable grounds exist for intervention.
The problems that plague the sport of professional boxing compromise the safety of boxers and undermine the credibility of the sport in the eyes of the public. I believe this bill provides a realistic approach to curbing these problems, and I urge my colleagues to support it.
I ask unanimous consent that the text of this bill be printed in the Record.
Mr. President, I am proud to sponsor the Military Home Owners Equity Act of 2003, S. 284. This is important legislation which I have been privileged to introduce in the Senate during previous Congresses. This legislation would allow members of the Uniformed Services, who are away on extended active duty, to qualify for the same tax relief on the profit generated when they sell their main residence as other Americans. I am pleased to announce that Secretary of State Colin Powell fully supports this legislation and this legislation enjoys overwhelming support by the senior uniformed leadership, the Joint Chiefs of Staff, as well as the Office of Management and Budget Director Mitch Daniels, the 31-member associations of the Military Coalition, the American Foreign Service Association, and the American Bar Association.
The average American participates in our Nation's growth through home ownership. Appreciation in the value of a home allows everyday Americans to participate in our country's prosperity. Fortunately, the Taxpayer Relief Act of 1997 recognized this and provided this break to lessen the amount of tax most Americans will pay on the profit they make when they sell their homes. Unfortunately, the 1997 home sale provision unintentionally discourages home ownership among members of the Uniformed and Foreign Services.
This bill will not create a new tax benefit; it merely modifies current law to include the time members of the Uniformed Services are away from home on active duty when calculating the number of years the homeowners has lived in their primary residence. In short, this bill is narrowly tailored to remedy a specific dilemma.
The Taxpayer Relief Act of 1997 delivered sweeping tax relief to millions of Americans through a wide variety of important tax changes that affect individuals, families, investors and businesses. It was also one of the most complex tax laws enacted in recent history.
As with any complex legislation, there are winners and losers. But in this instance, there are unintended losers: members of the Uniformed and Foreign Services.
The 1997 act gives taxpayers who sell their principal residence a much-needed tax break. Prior to the 1997 act, taxpayers received a one- time exclusion on the profit they made when they sold their principal residence, but the taxpayer had to be at least 55 years old and live in the residence for 2 of the 5 years preceding the sale. This provision primarily benefitted elderly taxpayers, while not providing any relief to younger taxpayers and their families.
Fortunately, the 1997 act addressed this issue. Under this law, taxpayers who sell their principal residence on or after May 7, 1997, are not taxed on the first $250,000 of profit from the sale, joint filers are not taxed on the first $500,000 of profit they make from selling their principal residence. The taxpayers must meet two requirements to qualify for this tax relief. The taxpayer must one, own the home for at least 2 of the 5 years preceding the sale, and two, live in the home as their main home for at least 2 years of the last 5 years.
I applaud the bipartisan cooperation that resulted in this much- needed form of tax relief. The home sales provision sounds great, and it is. Unfortunately,the second part of this eligibility test unintentionally and unfairly prohibits many of the women and men who serve this country overseas from qualifying for this beneficial tax relief.
Constant travel across the United States and abroad is inherent in the Uniformed and Foreign Services. Nonetheless, some members of these Services choose to purchase a home in a certain locale, even though they will not live there much of the time. Under the new law, if they do not have a spouse who resides in the house during their absence, they will not qualify for the full benefit of the new home sales provision, because no one ``lives'' in the home for the required period of time. The law is prejudiced against families that serve our Nation abroad. They would not qualify for the home sales exclusion because neither spouse ``live'' in the house for enough time to qualify for the exclusion.
This bill simply remedies an inequality in the 1997 law. The bill amends the Internal Revenue Code so that members of the Uniformed and Foreign Services will be considered to be using their house as their main residence for any period that they are assigned overseas in the execution of their duties. In short, they will be deemed to be using their house as their main home, even if they are stationed in Bosnia, the Persian Gulf, in the ``no man's land,'' commonly called the DMZ between North and South Korea, or anywhere else they are assigned.
In the wake of September 11, our Armed Forces are now deployed to an unprecedented number of locations. They are away from their primary homes, protecting and furthering the freedoms we Americans hold so dear. We cannot afford to discourage military service by penalizing military personnel with higher taxes merely because they are doing their job. Military service entails sacrifice, such as long periods of time away from friends and family and the constant threat of mobilization into hostile territory. We must not use the tax code to heap additional burdens upon our women and men in uniform.
In my view, the way to decrease the likelihood of further inequalities in the tax code, intentional or otherwise, is to adopt a fairer, flatter tax system that is far less complicated than our current system. But, in the meantime, we must insure the Tax Code is as fair and equitable as possible.
The Taxpayers' Relief Act of 1997 was designed to provide sweeping tax relief to all Americans, including those who serve this country abroad. Yes, it is true that there are winners and losers in any tax code, but, this inequity was unintended. Enacting this narrowly tailored remedy to grant equal tax relief to the members of our Uniformed and Foreign Services restores fairness and consistency to our increasingly complex Tax Code.
I ask unanimous consent that the text of the bill be printed in the Record.
Madam President, I congratulate Senators Santorum and Lieberman and everybody else who has had a voice and hand in shaping and crafting the CARE legislation before us. It makes a significant…
Madam President, I congratulate Senators Santorum and Lieberman and everybody else who has had a voice and hand in shaping and crafting the CARE legislation before us. It makes a significant contribution to the strength of volunteer organizations and charitable organizations. It is a very significant contribution to that wonderful cause and to this wonderful land of ours. I commend them.
I would like to take a moment here to highlight a provision in the managers' amendment to strengthen the ability of the Securities and Exchange Commission to detect, investigate, and punish violations of Federal securities law. This provision has been added to the CARE Act, because we have had the support and we have been able to utilize the efforts of the managers of this bill, Senators Grassley and Baucus, and of the chairman and ranking member of the Banking Committee, Senators Shelby and Sarbanes. This is an effort that Senator Bill Nelson and I and others have been involved in for some time. Now it will come to fruition, at least in the Senate, tomorrow when we adopt this legislation, including the managers' amendment.
I also thank the Securities and Exchange Commission for its assistance in crafting this legislation and for the agency's support of our efforts to enact it into law. Senator Bill Nelson and I and others have been working on this addition to the SEC enforcement powers for a long time. We are very grateful to all those who have worked with us, including Senators Corzine and Biden who cosponsored the SEC Civil Enforcement Act, S. 183, which we introduced earlier this year--in January--which is identical to the language which is in the managers' amendment.
The SEC Chairman, Bill Donaldson, is very supportive of our SEC enforcement legislation. I ask unanimous consent that a letter from the SEC Chairman supporting this provision and describing it as one that will ``significantly supplement and strengthen the Commission's ongoing enforcement efforts'' be printed in the Record at this time.
Madam President, here is a description of what the Levin- Nelson provision would do.
First, the provision will grant the SEC administrative authority to impose civil monetary fines on any person who violates Federal securities laws. Under current law, only broker-dealers, investment advisers, and certain other persons are now subject to administrative fines by the SEC. Our legislation will allow the SEC to impose administrative fines on anyone who violates Federal securities law, including, for example, corporate officers, directors, auditors, lawyers, or publicly traded companies, none of whom are now subject to being fined by the SEC in administrative proceedings. These fines, of course, would be subject to judicial review, as are all SEC administrative determinations.
Last year, the Permanent Subcommittee on Investigations, which I then chaired, conducted an extensive investigation into the collapse of Enron. As a result of that investigation, the Subcommittee determined that Enron's board of directors and officers and certain major financial institutions assisted Enron in carrying out deceptive accounting transactions and other abuses that misled investors and analysts about the company's finances.
The Subcommittee's last Enron hearing in December also highlighted the fact that the SEC is in need of additional tools to deal with the individuals and entities that participated in Enron's deceptive accounting or tax strategies. Our legislation would give to the SEC new authority to impose an administrative fine on anyone who violates the Federal security laws--not just broker-dealers or investment advisers, but also corporate directors or officers, employees, bankers, lawyers, auditors, law firms, accounting firms, corporations, financial institutions, partnerships, and trusts.
Second, the provision will significantly increase the maximum civil administrative fine that the SEC is able to impose on persons who violate Federal securities laws. The civil administrative fines that the SEC is currently authorized to impose have statutory maximums that, depending upon the nature of the securities law violation, range from a maximum of $6,500 to a maximum of $600,000 per violation. Again, the particular amount depends upon the nature of the violation. In a day and age when some CEOs make $100 million in a single year, and a company like Enron can report gross revenues of $100 billion in a single year, a civil fine with a maximum of $6,500 is laughable. Here is what one SEC staff stated about the current maximums in a document dated June 2002, and this explains why the agency is supporting our legislation:
The current maximum penalty amounts may not have the
desired deterrent effect on an individual or corporate
violator. For example, an individual who commits a negligent
act is subject to a maximum penalty of $6,500 per violation.
This amount is so trivial it cannot possibly have a deterrent
effect on the violator.
Our provision would increase the civil fine maximums from a range of a maximum of $6,500 to a maximum of $600,000 per violation, depending on the nature of the securities law violation, to a range that goes from a maximum of $100,000 to a maximum of $2 million per violation. At a time when we are seeing corporate restatements and misconduct involving billions of dollars, these larger fines are critical if the fines are to have an effective deterrent or punitive impact on wrongdoers.
Third, the Levin-Nelson provision would grant the SEC new administrative authority, when the SEC has opened an official SEC investigation, to subpoena financial records from a financial institution without having to notify the subject that such a records request has been made, thereby bringing the SEC's subpoena authority into alignment with the subpoena authority of Federal banking agencies like the Federal Reserve and the Office of the Comptroller of the Currency. This authority would allow the SEC to trace funds, evaluate financial transactions, and analyze financial relationships without having to alert the subject of an investigation to the SEC's inquiry. Under current law, the SEC either has to give the subject advance notice of the subpoena or spend precious time seeking to obtain a court order to delay notification.
Cases we are seeing today involve allegations of persons using offshore accounts to move millions of dollars or engage in complex transactions that materially affect the financial statements and tax returns of publicly traded companies in the United States. The SEC must be able to look at financial records quickly without giving the subject of the inquiry an opportunity to move funds, change accounts, or further muddy the investigative waters.
This authority is particularly important in light of the Patriot Act of 2001, which for the first time requires securities firms to detect and report possible money laundering through U.S. securities accounts. The SEC cannot be expected to effectively monitor these anti-money laundering efforts or act quickly to trace possible terrorist financing or other suspicious financial conduct if, as is the case now, the SEC must provide advance notice to investigative subjects or obtain court orders granting delayed notification. No Federal banking agency operates under these types of constraints in its anti-money laundering efforts, and there is no reason why the SEC should. Our provision would modernize the SEC's oversight authority and bring it into alignment with the Federal banking agencies.
Last year, the Sarbanes-Oxley law strengthened law enforcement and stiffened penalties for Federal securities crimes. By enacting the Levin-Nelson provision this year, Congress would help put some teeth into SEC enforcement on the civil side. We originally offered this legislation as an amendment to the Senate bill that resulted in the Sarbanes-Oxley Act, but were unable to obtain a vote before time ran out. That is why we are back.
Investor confidence in U.S. capital markets has not been fully restored, and Congress needs to provide strong leadership to assure U.S. investors that their interests are protected. A vigorous SEC that can act quickly to impose civil fines on those who violate Federal securities laws can help restore investor confidence in the effectiveness of U.S. securities laws and capital markets. In addition, since many securities violations warrant civil rather than criminal treatment, strengthening the SEC's civil enforcement authority would help streamline the available civil enforcement options and give the SEC better tools to fashion appropriate civil penalties.
Again, I thank my colleagues for supporting this provision.
Madam President, I ask unanimous consent that a letter from the former Chairman of the SEC, Harvey Pitt, dated August 30, 2002, also endorsing this legislation be printed in the Record at this time.
Madam President, I thank the managers and all the other persons who worked with us to get this legislation included in the managers' amendment and, hopefully, passed tomorrow.
Mr. President, I thank my colleague from Montana for his leadership, his friendship, and his devotion to this issue. I have listened with interest to his comments about the importance of ensuring…
Mr. President, I thank my colleague from Montana for his leadership, his friendship, and his devotion to this issue. I have listened with interest to his comments about the importance of ensuring that the incentives in the bill actually increase the charitable giving, as intended, and that we not inadvertently run a risk of lack of compliance. I concur with those sentiments and the need for a study to make sure we accomplish what it is we intend to accomplish.
I also want to begin by thanking our colleague from the State of Pennsylvania. It is fair to say we would not be here today without Senator Santorum's leadership. He has been persistent and willing to strike principled compromises. It has not always been easy, but it is to his credit in choosing to make progress rather than just having an issue. I thank him. Thanks to him, we are on the cusp of a significant breakthrough with regard to doing some things that will, in fact, lead to better care for the American people.
To our other colleagues involved in the effort, including Senators Lieberman, Nelson, Grassley, and my colleague from Indiana, Senator Lugar, I salute them. I observe that at a time and in our body that is too often driven by politics and partisanship, this has truly been a bipartisan undertaking.
As I have observed before, just as faith can move mountains, perhaps it can also bring together Members of the Senate and span the political divide that too often separates those of us on one side of the aisle from the other. That is a good thing that the debate has brought to the Chamber--a greater sense of comity and devotion to progress and bipartisanship.
I reflect today, as our military men and women are in harm's way in Iraq, on the fact that our country's greatest military strength lies not in our weapons systems, not in the planes, the tanks, and the missiles, as important as they are but, rather, in the character, the bravery, and the courage those men and women honor us by demonstrating in the defense of our national security interests--just so our greatest strength domestically is not the financial markets we enjoy, not the technology or the factories, as important as they are to our prosperity. Instead, it is the innate goodness and spirit of the American people. That is what we celebrate today, Mr. President. That is what we advance with this legislation, and that is why I am such a strong supporter of the CARE Act. Through its provisions, we will enlist literally tens of millions of our fellow citizens in the urgent cause of making this country an even better place.
As my colleague mentioned, about 70 percent of American taxpayers currently do not itemize. The provisions of this legislation that will allow their charitable contributions to be tax deductible will enlist literally tens of millions of our fellow citizens in philanthropy, charity, good civic works, community level to address the urgent needs of our time: Homelessness, hunger, medical needs, fighting drug and alcohol abuse and addiction, teen and juvenile violence--these sorts of things--helping to mend the social fabric that is in too great a risk these days.
Very often, as my colleagues know, we get consumed in this Chamber in debates not about whether these urgent tasks are being performed, but instead about who is performing them. Mr. President, my strong sense of where the American people stand today, and my strong sense of where the Senate needs to stand today, is on the side of those who are getting these works done, effectively addressing the needs of the American people.
When it comes to housing the homeless, feeding the hungry, caring for the sick and afflicted, it is more important these tasks are being accomplished in the most effective way rather than getting bogged down into who is accomplishing it and exactly how.
We will enlist thousands of additional organizations, empower them, and increase their efforts--church groups, civic groups, other groups dedicated to doing good deeds, who enlist our citizens in the cause of not only doing well but also accomplishing good, and that is vitally important for the future well-being of our great society.
There are two additional points I think should be remarked upon. Senator Santorum alluded to the first. It is the individual development account provisions of this legislation. It involves a bringing together of the best thinking on both the left and the right. This provision would empower those who are less fortunate in our society to get a stake in the American dream, a stake toward owning a first home, starting a small business, going to college--the kinds of activities that will lead to greater prosperity and progress for individuals who currently do not have much in the way of hope for either. It gives them a property interest and a stake in the marketplace in which traditionally those on the ideological right would have a greater interest, but it focuses the property interest and the competitiveness in the marketplace on those who are less fortunate, giving them all an opportunity to make the most of their God-given talents, something that those on the ideological left speak to with great fervor.
This is a provision that brings the best of thinking across the ideological spectrum, regardless of ideology, to do what is right for the American people. That is why it is a sensible and important step that is included in this legislation.
There is something else in this legislation that is near and dear to my heart. We have an outstanding example in my home State of Indiana. I know my colleague from Pennsylvania has spent a great deal of time thinking about how to break the cycle of poverty. He has worked extensively in the area of welfare reform. As a matter of fact, to set an example for his colleagues of actually reaching out to individuals who have been in the welfare system and not only moving them from welfare to work, but moving them into jobs in his own office. I salute him for that success. Again, it is an example we would all do well to emulate.
As the Senator from Pennsylvania knows well, we spend hundreds of billions of dollars in this country dealing with the manifestations of what really are deeper underlying causes. If one looks at the causes of welfare dependency, at the causes of juvenile violence, teen pregnancy, alcohol and drug abuse, educational and economic underperformance, all too often one will find the root causes of these manifestations and all the expense we go to in how we treat our children.
There is an important provision in this legislation in this regard. It deals with maternity homes. We have an outstanding example: Saint Elizabeth's in Jeffersonville, IN, in Clark County. It is an outstanding example of how this money can be leveraged not only in helping the teen mothers but in helping the children and, in so doing, helping taxpayers and the rest of society.
Their experience indicates that 90 percent of these young women who are expectant mothers who have the benefits of the services of Saint Elizabeth's go on to finish their high school education, to get a diploma, to accomplish that first educational step on the ladder toward a more successful life.
It is about the same percentage for their children. New babies are born healthy rather than with serious health problems. And about the same percentage of those new mothers do not go on to have additional children out of wedlock. So it is good for the mothers because they finish their education, it is good for the children because they are born healthy, and it is good for society because we deal with some of the root causes of poverty, homelessness, teen violence, drug and alcohol addiction, and education underperformance, and in so doing, help society as a whole and the taxpayers in addressing these problems at the root cause, rather than waiting to address the symptoms, the manifestations at a later stage.
I am pleased to join with my colleague. This legislation, frankly, has been too long in coming, but here we are on the cusp of a great step forward to make our Nation not only more prosperous, not only more secure, but more decent, more compassionate, more just. That, at the end of the day,
is the test of a great society and a great nation, measured not only by the strength of our arms as being demonstrated abroad as we speak, not only in the size of our gross domestic product, as important as that is, but in the opportunity and the decency we demonstrate to our fellow citizens in the course of their daily lives and in our own.
For all those reasons, Mr. President, I count myself a strong supporter of this legislation. I again thank the Senator from Pennsylvania. Without his efforts, we would not be here. I thank those on our side of the aisle who worked so hard on this legislation. I am hopeful that in short order we not only can pass this bill and send it to the President for signature, but, in so doing, help millions of our fellow citizens. I thank my colleagues for their time.
I yield the floor.
Mr. President, I rise today to introduce the ``High School Sports Information Collection Act of 2003''. This legislation directs the Commissioner of the National Center for Education Statistics to…
Mr. President, I rise today to introduce the ``High School Sports Information Collection Act of 2003''. This legislation directs the Commissioner of the National Center for Education Statistics to collect data from our Nation's high schools regarding the participation of America's adolescents in athletics. Passage of this legislation would allow the Department of Education's Office on Civil Rights to better assess whether high schools are meeting the requirements under Title IX passed as part of the Education Amendments Act of 1972.
The existence of an information gap regarding high school athletic participation was highlighted by a 2001 by the General Accounting Office which was unable to respond to a Congressional request about participation in athletics, including schools' decisions to add or discontinue sports team in high schools, colleges and universities. However, ``because of limited readily available information and the difficulty of collecting comparable information'' the GAO instead could only answer the inquiry about changes in four-year intercollegiate sports.
The legislation is simple. It directs the Commissioner to collect information regarding participation in athletics broken down by gender, teams, race and ethnicity; overall budgets and expenditures, including items like travel expenses, equipment and uniforms and their replacement schedules; the numbers of coaches, full and part-time; and scheduling issues like participation in post-season opportunities and successes by team. These data are already reported, in most cases, to the state Departments of Education and would therefore not pose any additional burden on the high schools.
The simple straightforwardness of this legislation goes a long way toward ensuring that our high schools are complying with civil rights law as established under Title IX without creating a new paperwork requirement on our schools. After all when considering whether high schools are in compliance with this critical civil rights law, it is necessary to know what is actually happening in the schools.
There can be no doubt Title IX has played a role in increasing women's athletic opportunities. However, many argue that the implementation of this law has reduced opportunity for others. While I strongly disagree with such an assessment, I do believe that it is critical that policy makers, parents, coaches, and athletic directors alike have access to precise and timely data to inform the debate and ensure that decisions are based on an accurate picture of interest and participation. Precise information on the participation
levels in high school would assist the enforcement of Title IX on the high school level.
Participation in athletics renders physical benefits as well as important psychological benefits. Studies have shown that values learned from sports participation, such as teamwork, leadership, discipline, and pride in accomplishment, are important lessons for everyone and are especially beneficial as more women participate in business management and ownership positions in ever higher numbers. Certainly it is no coincidence that 80 percent of female managers of Fortune 500 companies have a background in athletics. There are palpable gains generated by participation in athletics, gains which should be as accessible for females as they have been for males for decades.
This legislation compliments current law and in fact would allow us to ensure that the law is being enforced better than we can today. The data regarding the participation of high school students in athletics has been lacking for too long and passage of this legislation would help athletic programs ensure that they are offering equal opportunity for all athletes.
Mr. President, I rise today to introduce legislation to help reverse the devastating population decline and economic distress that has plagued individuals and businesses in Maine's northernmost county. Aroostook County. What the bill does is simple, it will bring all of Aroostook County under the Empowerment Zone program.
To fully grasp the importance of this legislation, it is necessary to understand the unique situation facing the residents of Aroostook County. ``The County'', as it is called by Mainers, is a vast and remote region of Maine known for its expansive forest tracts and rugged terrain. As the northernmost county, it shares more of its border with Canada than its neighboring Maine counties, and has the distinction of being the largest county east of the Mississippi River. Its geographic isolation is even more acute when considering that the county's relatively small population of 76,000 people are scattered throughout 6,672 square miles of rural countryside. There are 208 townships in Aroostook County, however, well over half of the territory remains unorganized as forestland or wilderness.
Anyone traveling in Aroostook County can appreciate what these numbers cannot fully convey. Visiting many remote communities in Aroostook County by car requires navigating long distances on isolated roads, often in wintery conditions. Access by public ground transportation is nonexistent, and air travel is accessible only in the County's two largest towns, each of which has less than 10,000 people.
As profound as this geographic isolation may seem, it is the economic isolation and out-migration that has had the most devastating impact on the region. The economy of northern Maine has a historical dependence upon its natural resources, particularly forestry and agriculture. While these industries served the region well in previous decades, and continue to form the underpinnings of the local economy, many of these sectors have experienced decline and can no longer provide the number and type of quality jobs that residents need. The decline in the region's economy was further punctuated by the closure of Loring Air Force Base in Limestone in 1994. The Maine State Planning Office estimated that the base closure resulted in the loss of 3,494 jobs directly related to the base and another 1,751 in associated industry sectors, for a total loss of $106.9 million annual payroll dollars.
While officials in the region have put forward a Herculian effort to redevelop the region, with nearly 1,000 new jobs at the Loring Commerce Center alone--Aroostook County is still experiencing a significant ``job deficit'', and as a result continues to lose population at an alarming rate. Since its peak in 1960, northern Maine's population has declined by 30 percent to its current level of 76,330. Unfortunately, the Main State Planning Offset predicts that Aroostook County will continue losing population as more workers leave the area to seek opportunities and higher wages in southern Maine and the rest of New England.
In January 2002, a portion of Aroostook County was one of two regions that received Empowerment Zone status from the USDA for out-migration. The entire county experienced an out-migration of 15 percent from 86,936 in 1990 to 76,330 in 2000. Moreover, a shocking 40 percent of 15 to 29-year olds left during the last decade.
The current zone boundaries were chosen based on the criteria that Empowerment Zones be no larger than 1,000 square miles, contain no more than 3 non-contiguous parcels, and have no more than three developable sites greater than 2,000 acres in aggregate. The lines drawn for the Aroostook County Empowerment Zone were considered to be the most inclusive and reasonable given the constraints of the program. However, some of the most distressed communities that have lost substantial population are not in the Empowerment Zone, and economic factors for these communities are the same as those areas within the Empowerment Zone.
The legislation I am introducing would provide economic development opportunities to all reaches of Aroostook County by extending Empowerment Zone status to the entire county. This inclusive approach recognizes that the economic decline and population
out-migration are issues that entire region must confront, and, as evidenced by their successful Round III EZ application, they are attempting to confront. I believe the challenges faced by Aroostook County are significant, but not insurmountable. This legislation would make great strides in improving the communities and business in northern Maine, and I urge my colleagues to join me to support this important bill.
President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I wish to talk about the CARE Act. I rise to speak in favor of the Charity Aid Recovery and…
President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I wish to talk about the CARE Act. I rise to speak in favor of the Charity Aid Recovery and Empowerment Act, or the CARE Act.
As the Senate is considering this legislation, it is important to remember both Republicans and Democrats have cosponsored the CARE Act. This reflects the bipartisan spirit of this legislation which out of this legislative caldron was created by compromise, and we had last year as the goal of increasing charitable giving and helping the needy.
In light of the uncertain economy, charities across the Nation are serving the needs of more people with fewer resources. This particular legislation is an opportunity to encourage Americans to help their neighbors, community, and their country by giving. By extending the charitable contribution deduction for 86 million Americans who do not itemize their tax returns, and allowing people to make charitable contributions from their individual development accounts, IDAs, this legislation creates incentives for giving to charity.
This legislation also provides an enhanced charitable deduction for restaurants and businesses that make donations of food to charitable organizations. For some two decades, my wife Grace and I have been working with organizations to distribute food to the hungry. One such organization is back in our State of Florida. It is actually a part of our State Department of Agriculture. Its name is Farm Share. What it operates on is the original concept of gleaning, which was a biblical concept. In biblical times it was their social security system. When the farmers would go in and harvest the field, they would leave the rest of the crop so that then the poor people could come into the field and harvest the remaining crop, called gleaning; that was their way to support those least fortunate in the society of the day.
When you take that ancient concept and bring it forward to today, look at all the crops that are wasted. So this concept of Farm Share, a part of our State Department of Agriculture, although not going directly into the field, what we find is enormous amounts of edible food wasted in the distribution process--in the collection, in the actual harvesting, then at the packinghouse and the rest of the distribution process.
So what Farm Share does is go to the packinghouse where tomatoes, for example, a winter crop in south Florida, might have a blemish on them. They are completely edible, but they might not be marketable for that particular company buying those tomatoes. Or a company that uses a lot of tomatoes, such as McDonald's Corporation, wants a tomato of a certain size. So the tomatoes that are not that size are discarded. But it is good food that is going to waste. It is a form of gleaning, to save that, to have it packaged, and then ready for distribution.
When my wife and I announce a distribution and we reach out to all the soup kitchens and reach out to the churches that are so effective throughout the communities in distributing food to the poor, when we send word out that the next morning there is going to be a distribution of food, and you arrive the next morning, there is a lump in your throat to suddenly see the lines of hundreds of hungry people in America; that they are so grateful, so orderly, so polite, and so thankful for the food that is going to be distributed.
It is not unusual I would come as a cosponsor of this act and be very thankful that the Senate is considering it. It looks as if we have our differences worked out, and we are going to be able to pass it. This new legislation is more than just tax provisions. Individual development accounts are also expanded in this legislation. These IDAs are special savings accounts that offer matching contributions from participating banks or community organizations. This innovative program encourages low-income families to build assets and proposes reduced costs for banks and community organizations that offer the IDAs.
This legislation also increases the funding for the social services block grant. That supplies States with resources to support a variety of social services. These funds can be used to assist the elderly and disabled so they do not need to enter institutions. Those funds can also be used to prevent child and elder abuse and to prevent things that go on that we read about in the newspaper that we shudder at in regard to the care of our elderly. These funds can be used to provide child care, to promote and support adoption, and many other purposes.
By creating tax incentives for charitable contributions we can help support and give incentives to the natural instincts of the American people, which are to be generous, to give. When they do, faith-based and community organizations can pass on the gains to a community.
We know that faith-based groups are doing good work all over the country, and their work is already being funded by Federal dollars because they are running programs that work to better people's lives. These faith-based groups operate soup kitchens, they run homeless shelters, and they rehabilitate drug users. Our Nation already funds many of these programs. I have seen these programs all over Florida. I have seen them here in Washington, DC. Anyone would be amazed just a stone's throw from where we are in the U.S. Capitol at the kinds of programs going on in the inner city to feed the poor and minister to the least privileged in society.
Lives have been changed. I have seen cities, particularly the inner cities, being transformed from neglect to respect.
This legislation is all about grassroots change, change from the ground up, by people who are close to the problems and who care enough to take up the challenge.
I have cosponsored this legislation before. I am going to continue to work with our colleagues to try to find ways to help those who help others.
This is one way. As we have been considering this emergency funding bill that we just passed and that is now in the conference committee, I thank the Senate for increasing the food aid. Back earlier when we were considering legislation, the task fell to me to increase the appropriation with regard to food aid, particularly destined for Africa, where they are experiencing another enormous drought which has caused a great deal of famine and death. The United States is a generous country. So, too, from our generosity, when we see a problem such as that, we want to try to take care of it.
We passed a level of increased food aid here at $500 million. It was watered down in conference to $250 million. A lot of that money was squirreled away from Africa to meet the food needs there will be in Iraq. Because of that, a few nights ago on this floor we agreed to an amendment to the emergency
supplemental appropriations bill that would have an additional $600 million to go for emergency food assistance. That will then be able to get to Africa with all of its famine that is ravaging the land.
It is my hope, as the Appropriations Committees are meeting in conference right now on the emergency supplemental to determine the final outcome, that they will honor all those images they have seen on television of starving children and they will not reduce that $600 million very much.
It is with this spirit of thanks, of humility, and thanksgiving that I come to speak on behalf of this legislation and to thank the Senate and the many participants here who have worked out all the kinks in this legislation so we could pass it in a unanimous fashion.
I yield the floor.
Mr. President, I rise today to introduce legislation that will enhance the future economic vitality of communities in Otero, Lincoln, Torrance, Guadalupe, and Quay Counties. The purpose of this…
Mr. President, I rise today to introduce legislation that will enhance the future economic vitality of communities in Otero, Lincoln, Torrance, Guadalupe, and Quay Counties. The purpose of this legislation is to focus attention on the need to upgrade U.S. Highway 54 to four lanes. I believe improving the transportation infrastructure will help attract good jobs to South, Central, and Eastern New Mexico.
I am honored to have my good friend and colleague, Senator Roberts, as the lead cosponsor of the bill. I am also pleased to have Senators Inhofe, Hutchison, Domenici and Brownback as original cosponsors.
In addition, Representatives Udall, NM, Moran, Lucas, Thornberry, Pearce, and Reyes are introducing this bill today on the House side.
Our bill designates U.S. Highway 54 from the border with Mexico at El Paso, TX, through New Mexico, and Oklahoma to Wichita, KS, as the Southwest Passage Initiative for Regional and Interstate Transportation, or SPIRIT, corridor. Congress has already included Highway 54 as part of the National Highway System. This bill adds the SPIRIT Corridor in Congress's list of High Priority Corridors on the National Highway System.
About half of the 700-mile-long SPIRIT corridor is in New Mexico and another 200 miles of it are in Kansas. Our goal with this designation is to promote the development of this route into a full four-lane divided highway. When completed, the route will link rural areas in the four States to major market centers.
I continue to believe strongly in the importance of highway infrastructure for economic development in my State. Even in this age of the new economy and high-speed digital communications, roads continue to link our communities together and to carry the commercial goods and products our citizens need. Safe and efficient highways are especially important to citizens in the rural parts of New Mexico.
It is well known that regions with four-lane highways more readily attract out-of-State visitors and new jobs. Truck drivers and the traveling public prefer the safety of a four-lane divided highway.
In New Mexico, US 54 is a fairly level route, bypassing New Mexico's major mountain ranges. The route also traverses some of New Mexico's most dramatic scenery, including two of the State's popular Scenic Byways. One is the Mesalands Scenic Byway in Guadalupe, San Miguel and Quay Counties, incorporating the beautiful tablelands known as El Llano Estacado. The other is the state's newest byway, La Frontera de Llano, which follows highway 39 from Logan to Abbott in Harding County, including the spectacular Canadian River Canyon and the Kiowa National Grasslands.
The SPIRIT corridor passes through Alamogordo, home of the New Mexico Museum of Space History and gateway to the stunning White Sands National Monument.
Highway 54 is also important to our nation from the perspective of national security. The route directly serves Fort Bliss, the White Sands Missile Range, and Holloman Air Force Base. It also passes through the Nation's breadbasket as well as some of the Nation's most important oil and gas fields.
The route of the SPIRIT corridor starts at Juarez, Chihuahua, Mexico, home of one the largest concentrations of manufacturing in the border region. As a result of increased trade under NAFTA, commercial border traffic is now much higher at the border crossings in El Paso, Texas, and Santa Teresa, New Mexico. In New Mexico, truck traffic from the border has risen to over 1000 per day and is expected to triple in the next twenty years.
The SPIRIT corridor is perfectly situated to serve international trade and promote economic development along its entire route. The route provides direct connections to four major Interstate Highways: I- 10, I-35, I-40, and I-70. SPIRIT is also the shortest route between Chicago and El Paso, shaving 137 miles off the major alternative.
Though much of US 54 is currently only two lanes, traffic has been rising dramatically along the entire route since NAFTA was implemented. In New Mexico, total daily traffic levels are nearing 10,000 and are projected to rise to 30,000, with trucks making up 35 percent of the total. In Oklahoma, traffic levels are up to 6,500 per day--40 percent of which are commercial trucks. These traffic statistics clearly reflect the SPIRIT corridor's attraction to commercial and passenger drivers.
New Mexicans recognize the importance of efficient roads to economic development and safety. I have long supported my state's efforts to complete the four-lane upgrade of US 54. The State Highway and Transportation Department now rates the project a high priority for New Mexico. The four-lane upgrade of the first 56-mile segment from the Texas border to Alamogordo was completed last year. Two more sections in New Mexico remain to be upgraded: 163 miles from Tularosa, north through Carrizozo, Corona, and
Vaughn, to Santa Rosa and 50 miles from Tucumcari to the Texas border near Nara Visa in Quay County. The cost to four-lane these two segments is estimated at $420 million. I am committed to working to help secure the funding required to complete New Mexico's four-lane upgrade as soon as possible. I am pleased the other States are also moving quickly to four-lane their portion of the route. I hope designating SPIRIT as a High Priority Corridor on the National Highway System will help spur the completion of this project.
Once the SPIRIT corridor is designated, New Mexico will have four high-priority corridors on the National Highway System. The other three are the Ports-to-Plains corridor, the Camino Real Corridor, and the East West Transamerica Corridor. These four trade corridors, as well as our close proximity to the border, strongly underscore the vital role New Mexico plays in our nation's interstate and international transportation network.
The SPIRIT project has broad grassroots support. Most of the cities, counties, and chambers of commerce all the way from Wichita to El Paso have passed resolutions of support for the four-lane upgrade of US 54 along the entire corridor.
I do believe the four-lane upgrade of Highway 54 is vital to the continued economic development for all of the communities along the SPIRIT corridor in New Mexico.
I again thank Senators Roberts, Inhofe, Hutchison, Domenici and Brownback for cosponsoring the bill, and I hope all Senators will join us in support of this important legislation. It is my hope that our bill can pass quickly this year or be included when the Senate considers the reauthorization of the six-year transportation bill.
I ask unanimous consent that the text of the bill be printed in the Record. I ask unanimous consent that letters and resolutions of support from Otero County, Lincoln County, and Alamogordo in New Mexico, and from the Director of the Oklahoma Department of Transportation and the Secretary of Transportation of Kansas be printed in the Record.
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Mr. President, I rise today to introduce the Bear River Migratory Bird Refuge Visitor Center Act. Long a haven for migratory birds, the Bear River marshes provide millions of birds with habitat and…
Mr. President, I rise today to introduce the Bear River Migratory Bird Refuge Visitor Center Act.
Long a haven for migratory birds, the Bear River marshes provide millions of birds with habitat and food. In 1928, in response to a series of devastating outbreaks of avian botulism, which killed thousands of birds along the river, Congress established the Bear River Migratory Bird Refuge. It serves to provide habitat for waterfowl, protect waterfowl from botulism outbreaks, and provide recreational and education opportunities to the public.
In 1983, floods breached the refuge dikes, destroyed the visitor center, and contaminated the rich wildlife habitat. Thanks to the great efforts of Al Trout, the refuge manager, refuge employees, and numerous volunteers, an increasing number of both waterfowl and humans are visiting the Bear River Migratory Bird Refuge each year. Today, the Bear River Refuge encompasses 74,000 acres and has provided refuge for over 220 recorded waterfowl species. However, a new visitor center for the refuge has yet to be built. As such, rich educational opportunities associated with visitor center programs and exhibits are not available to the public. Aware of the benefits of such a center, a number of local communities, the Friends of Bear River Bird Refuge, and other nonprofit organizations have raised over $1.5 million for the project.
This legislation would authorize $11 million to be used for the construction of an Education Center and Administrative Facility. Such a facility would both generate much needed public awareness of our national wildlife refuge system and significantly enhance the visiting public's refuge experience. A visitor center at the Bear River Migratory bird Refuge will result in a more meaningful, educational, and accessible experience for the visiting public.
I believe that this legislation is an exciting opportunity to showcase the many wildlife and natural treasures that Utah's Bear River Migratory Bird Refuge contains. I look forward to working with my colleagues in the Senate to pass this legislation this session.
Mr. President, I rise today to introduce the Mount Naomi Wilderness Boundary Adjustment Act.
Included in the Utah Wilderness Act of 1984, the Mount Naomi Wilderness is one of Utah's largest wilderness areas at over 44,000 acres. It is a very scenic area and contains some of the best examples of alpine terrain in the intermountain west. There are large populations of moose, elk, and deer. It is an area truly worthy of its designation.
Unfortunately the boundaries were drawn in such a way as to have some unintended consequences. Running through the wilderness is a utility corridor, containing a major electricity transmission line. This power line serves the residents of Logan and the whole south end of Cache Valley. Because of restrictions in the Wilderness Act of 1964, maintaining and repairing the power line will be very difficult in the future.
Also impacted by Mount Naomi's boundaries is one of Utah's most popular hiking and mountain biking trails: the Bonneville Shoreline Trail. The Bonneville Shoreline Trail, when completed will be over 250 miles in length. Starting in Nephi and heading north into Idaho, the trail will follow the shoreline of ancient Lake Bonneville. The alignment of the trail is planned to go through a small part of the Mount Naomi Wilderness. While hikers and equestrian users would be permitted to use this section of the trail, mountain bikers would be prohibited. The city of Logan has tried to work to change the alignment to adjacent private property to no avail.
The legislation I am introducing today would redraw the boundaries of the Mount Naomi Wilderness. The acreage of this wilderness area would not change, thirty-one current acres would be excluded and thirty-one new acres would be added. The newly added lands will be managed pursuant to the Utah Wilderness Act of 1984. The boundaries will now better reflect the topography of Mount Naomi and the inconsistent uses will be removed from the wilderness.
This legislation was originally offered in the 107th Congress by former Representative Jim Hansen. It passed the House of Representatives but was never acted upon by the Senate. The city of Logan, Cache County, and the United States Forest Service all are supportive of this legislation.
I look forward to working with my colleagues in the Senate to pass this legislation this session.
Mr. President, I am proud to join the Senator from Vermont today to introduce the Artist-Museum Partnership Act. He and I have introduced this legislation in the past, and we hope that our colleagues will see this bill for what it is: a reasonable solution to an unintentional inequity in our tax code.
This legislation would allow living artists to deduct the fair-market value of their art work when they contribute their work to museums or other public institutions. As the tax code is currently written, art collectors are able to deduct the fair market value of any piece of art they donate to a museum. However, if the artist who created that same piece of work were to donate it, he or she would only be able to deduct the material cost of the work, which may be nothing more than a canvas, a tube of paint, and a wooden frame. Thus, there exists a disincentive for artists to donate their work to museums. The solution is simple: treat collectors and artists the same way. This bill would do just that.
Certainly, this bill would benefit artists, but more importantly, the beneficiaries would be the museums that would receive the art work and the general public who would be able to view it in a timely manner. This change in the tax code would increase the number of original pieces donated to public institutions, giving scholars greater access to an artist's work during the lifetime of that artist, as well as provide for an increase in the public display of such work.
I would like to thank Senator Leahy for his work on this bill. I urge my colleagues to support this common-sense legislation. The fiscal impact of the Artist-Museum Partnership Act on the Federal budget would be minimal, but the benefit to our nation's cultural and artistic heritage cannot be overstated. This minor correction to the tax code is long overdue, and the Senate should act on this legislation to remedy the problem.
Will the Senator from New Jersey yield for a consent request? I ask unanimous consent that I be recognized for 10 minutes, following the Senator from New Jersey, to speak on the bill. Madam…
Will the Senator from New Jersey yield for a consent request?
I ask unanimous consent that I be recognized for 10 minutes, following the Senator from New Jersey, to speak on the bill.
Madam President, this is a good piece of legislation. I am pleased to rise in support and pleased particularly that it is bipartisan legislation that advances very important interests.
A wise old fellow from my small hometown once asked me if I had ever seen a U-Haul hooked up to a hearse. I said: No. He said: Well, it goes to show you, you can't take it with you.
He is right. You can't take it with you. The question is, What do you do with the resources you develop over a lifetime? It seems to me you find ways to help other people.
There is an old saying that we make a living by what we get but we make a life by what we give. The issue of charitable giving and providing nourishment and incentives to the notion of charitable giving is a very important impulse. This legislation advances that in a significant way.
Two years ago I introduced S. 1375, and then, in this Congress, S. 283. I am pleased that these provisions were included in this legislation by the Senate Finance Committee. Let me describe what they are and why they are so important.
The provisions in the CARE Act that relate to the legislation I have introduced, with some of my colleagues, allow individuals to make tax- free outright gifts to charities from their IRAs at age 70\1/2\ and charitable life-income gifts at age 59\1/2\. The reason that is important--to be able to make tax-free gifts from IRAs to charities--is they won't face adverse tax consequences when they rollover that money from their IRAs. The detrimental tax consequences have persuaded some that they can't roll these assets over into a charity.
I heard from a good many charities, when I introduced this legislation 2 years ago, that people frequently ask them about being able to give to a charity by using their IRAs to make the donation itself. But many donors decide not to make a gift from their IRA after they are told about the potential tax consequences. Tax-free charitable IRA rollovers will eliminate this concern completely.
In his fiscal year 2004 budget, President Bush proposed allowing individuals to make tax-free outright charitable IRA rollover distributions after age 65. That proposal has a lot of merit. But the approach taken in the Public Good IRA Rollover Act, S. 283, and that's included in CARE Act, is superior because it will not only allow direct charitable IRA rollovers, but it will allow tax-free life-income gifts from the IRA at age 59\1/2\. That means the assets can be donated to the charities, but the donor retains an income stream from those assets. This approach would stimulate more charitable giving, while comporting with the federal government's policy of encouraging individuals to provide for and safeguard adequate resources after retirement. This is a very important provision that could put billions of dollars of additional dollars from a new source to work for the public good.
I'm told that a senior Salvation Army official once said that ``providing for IRA charitable rollovers would be the single most important piece of legislation in the history of public charitable support in this country.''
I don't think he necessarily understates the proposition. Charitable giving is critically important. The mechanisms by which we incentivize and nurture charitable giving are in this legislation and will advance the interests of charitable giving across the country.
Let me make another point. This legislation contains more than just that provision. I single that provision out simply because I have been working on it a couple of years.
I ask unanimous consent to print in the Record a list of principally North Dakota organizations, 18 of them, that have been working with me on this proposition.
The provision in the CARE that deals with charitable deductions for non-itemizers is also very important. All of this coming together is legislation I am proud to support. It is a significant step for good.
Let me say one additional point. In order to pay for these proposals--and these proposals are paid for with a revenue portion of the bill--there are additional curbs on tax shelters. I strongly support that as a matter of good tax policy. Last year, former IRS Commissioner Rossetti told Congress:
Nothing undermines confidence in the tax system more than
the impression that the average honest taxpayer has to pay
his or her taxes while more wealthy or unscrupulous taxpayers
are allowed to get away with not paying.
He is correct. What we have seen, with front-page stories in journals and technical publications, as well as major daily newspapers, is the growth of abusive tax shelters. Shutting those down makes a lot of sense. I don't believe that there is a provision in this bill that deals with the issue of moving corporate headquarters overseas and renouncing your U.S. citizenship in order to save on taxes. But that is another piece we ought to do as well.
I simply make the point that the other piece of this bill that is important is we pay for this, and we pay for it with good tax policy by curbing tax shelters.
There are a lot of things in this country that are done that make people feel good. One of those is the charitable giving that Americans do. Americans do a great deal of charitable giving. They do it because they know there is a need, and they know people who need help can count on others who will offer it. With respect to the provision I have been working on, there is an impediment that has prevented people from saying, I would like to roll over my IRA assets to a charity and provide that charity with resources it needs. To do that under present law significantly penalizes them through the Tax Code. This legislation responds to that.
Allen Huffman on my staff and others have worked together for a long while on this particular provision of the bill. There are other provisions that have merit as well.
I thank the manager of the bill and the ranking member of the committee who bring it to the floor. When we pass this--and we will--it will represent a significant positive step toward good public policy. I am pleased to support it.
I yield the floor.
Mr. President, I rise today with Senator Bennett to introduce the ``Artist-Museum Partnership Act of 2003.'' Our bipartisan legislation will enable our country to keep cherished art works in the…
Mr. President, I rise today with Senator Bennett to introduce the ``Artist-Museum Partnership Act of 2003.'' Our bipartisan legislation will enable our country to keep cherished art works in the United States and to preserve them in our public institutions, while erasing an inequity in our tax code that currently serves as a disincentive for artists to donate their works to museums and libraries. This is the same bill we introduced the past two Congresses. It was also included in the Senate-passed version of the President's 2001 tax cut bill and in the Finance Committee's version of the Charity Aid, Recovery, and Empowerment, CARE, Act. I would like to thank Senators Bingaman, Cochran, Daschle, Durbin, Graham of Florida, Kennedy, Lieberman, Lincoln, and Warner for cosponsoring this bipartisan bill.
Our bill is sensible and straightforward. It would allow artists, writers, and composers who donate works to museums and libraries to take a tax deduction equal to the fair market value of the work. This is something that collectors who make similar donations are already able to do. If we as a Nation want to ensure that art works created by living artists are available to the public in the future, for study or for pleasure, this is something that artists should be allowed to do as well. Under current law, artists who donate self-created works are only able to deduct the cost of supplies such as canvas, pen, paper and ink, which does not even come close to their true value. This is unfair to artists and it hurts museums and libraries, large and small, that are dedicated to preserving works for posterity.
In my State of Vermont, we are incredibly proud of the great works produced by hundreds of local artists who choose to live and work in the Green Mountain State. Displaying their creations in museums and libraries helps develop a sense of pride among Vermonters and strengthens a bond with Vermont, its landscape, its beauty and its cultural heritage. Anyone who has contemplated a painting in a museum or examined an original manuscript or composition, and has gained a greater understanding of both the artist and the subject as a result, knows the tremendous value of these works. I would like to see more of them, not fewer, preserved in Vermont and across the country.
Prior to 1969, artists and collectors alike were able to take a deduction equivalent to the fair market value of a work, but Congress changed the law with respect to artists in the Tax Reform Act of 1969. Since then, fewer and fewer artists have donated their works to museums and cultural institutions. The sharp decline in donations to the Library of Congress clearly illustrates this point. Until 1969, the Library of Congress received 15 to 20 large gifts of manuscripts from authors each year. In the four years following the elimination of the deduction, the Library received only one such gift. Instead, many of these works have been sold to private collectors and are no longer available to the general public.
For example, prior to the enactment of the 1969 law, Igor Stravinsky planned to donate his papers to the Music Division of the Library of Congress. But after the law passed, his papers were sold instead to a private foundation in Switzerland. We can no longer afford this massive loss to our cultural heritage. These losses are an unintended consequence of the tax bill that should now be corrected.
More than 30 years ago, Congress changed the law for artists in response to the perception that some taxpayers were taking advantage of the law by inflating the market value of self-created works. Since that time, however, the government has cut down significantly on the abuse of fair market value determinations. Under this legislation, artists who donate their own paintings, manuscripts, compositions, or scholarly compositions, would be subject to the same new rules that all taxpayer/ collectors who donate such works must now follow. This includes providing relevant information as to
the value of the gift, providing appraisals by qualified appraisers, and, in some cases, subjecting them to review by the Internal Revenue Service's Art Advisory Panel.
In addition, donated works must be accepted by museums and libraries, which often have strict criteria in place for works they intend to display. The institution must certify that it intends to put the work to a use that is related to the institution's tax exempt status. For example, a painting contributed to an educational institution must be used by that organization for educational purposes. It could not be sold by the institution for profit. Similarly, a work could not be donated to a hospital or other charitable institution that did not intend to use the work in a manner related to the function constituting the donee's exemption under Section 501 of the tax code. Finally, the fair market value of the work could only be deducted from the portion of the artist's income that has come from the sale of similar works, or related activities.
This bill would also correct another disparity in the tax treatment of self-created works, how the same work is treated before and after an artist's death. While living artists may only deduct the material costs of donations, donations of those same works after death are deductible from estate taxes at the fair market value of the work. In addition, when an artist dies, works that are part of his or her estate are taxed on the fair market value.
Last Congress, the Joint Committee on Taxation estimated that our bill would cost $50 million over 10 years. This is a moderate price to pay for our education and the preservation of our cultural heritage.
I want to thank my colleagues again for cosponsoring this bipartisan legislation. The time has come for us to correct an unintended consequence of the 1969 law and encourage rather than discourage the donations of art works by their creators. This bill could, and I believe would, make a critical difference in an artist's decision to donate his or her work, rather than sell it to a private party, where it may become lost to the public forever.
Mr. President, today I rise to introduce, along with my colleagues Senators Grassley and Kohl, S. 274, the ``Class Action Fairness Act of 2003.'' Over the past decade, it has become clear that abuses…
Mr. President, today I rise to introduce, along with my colleagues Senators Grassley and Kohl, S. 274, the ``Class Action Fairness Act of 2003.''
Over the past decade, it has become clear that abuses of the class action system have reached epidemic levels. In recent years, it has become equally clear that the ultimate victims of this epidemic are poorly-represented class members and individual consumers throughout the Nation. The Class Action Fairness Act of 2003 represents a modest, measured effort to remedy the plague of abuses, inconsistencies, and inefficiencies that infest our current system of class action litigation.
It is essential that we address the abuses that are running rampant in our current class action litigation system. Frequently, plaintiff class members are not adequately informed of their rights or of the terms and practical implications of a proposed settlement. Too often judges approve settlements that primarily benefit the class counsel, rather than the class members. There are numerous examples of settlements where class members receive little or nothing, while attorneys receive millions of dollars in fees. Multiple class
action suits asserting the same claims on behalf of the same plaintiffs are routinely filed in different State courts, causing judicial inefficiencies and encouraging collusive settlement behavior. And State courts are more frequently certifying national classes leading to rulings that infringe upon or conflict with the established laws and policies of other states.
Despite the mountains of evidence demonstrating the drastically increasing harms caused by class action abuses, I am sure that some will attempt to deny the existence of any problem at all. Others will try to confuse the issue with spurious claims that proposed reforms would somehow disadvantage victims with legitimate claims or further worsen class action abuses. Others may even contend that past legislative reforms have contributed to recent financial debacles and that the proposed reforms will encourage more. Such claims are nothing more than red herrings intended to divert the debate from the real issues.
In this regard let me emphasize a few points regarding S. 274. First, this bill does not seek to eliminate State court class action litigation. Class action suits brought in State courts have proven in many contexts to be an effective and desirable tool for protecting civil and consumer rights. Nor do the reforms we will discuss today in any way diminish the rights or practical ability of victims to band together to pursue their claims against large corporations. In fact, we have included several consumer protection provisions in our legislation that I feel strongly will substantially improve plaintiffs' chances of achieving a fair result in any settlement proposal.
There are three key components to S. 274. First, the bill implements consumer protections against abusive settlements by: No. 1. requiring simplified notices that explain to class members the terms of proposed class action settlements and their rights with respect to the proposed settlement in ``plain English''; No. 2. enhancing judicial scrutiny of coupon settlements; No. 3. providing a standard for judicial approval of settlements that would result in a net monetary loss to plaintiffs; No. 4. prohibiting ``bounties'' to class representatives; and No. 5. prohibiting settlements that favor class members based upon geographic proximity to the courthouse.
Second, the bill requires that notice of class action settlements be sent to appropriate State and Federal authorities to provide them with sufficient information to determine whether the settlement is in the best interest of the citizens they represent.
Finally, the bill amends the diversity-of-citizenship jurisdiction statute to allow large interstate class actions to be adjudicated in Federal court by granting jurisdiction in class actions where there is ``minimal diversity'' and the aggregate amount in controversy among all class members exceeds $2 million.
Although some critics have argued that this amendment to diversity jurisdiction somehow violates the principles of federalism or is inconsistent with the Constitution, I fully agree with Mr. Walter Dellinger, former Solicitor General, who testified at our Judiciary Committee hearing last fall, that it is ``difficult to understand any objection to the goal of bringing to the federal court cases of genuine national importance that fall clearly within the jurisdiction conferred on those courts by Article III of the Constitution.''
Last, I would like to express my appreciation to the many individuals who have shared with me the details of their experiences with class action litigation. In particular, I am grateful to those victims of various abuses of the current system who have come forward and told their stories in the hope that something positive might come out of their terrible experiences.
Among those who have come forward is Irene Taylor of Tyler, TX, who was bilked out of approximately $20,000 in a telemarketing scam that defrauded senior citizens out of more than $200 million. In a class action brought in Madison County, IL, the attorneys purportedly representing Mrs. Taylor negotiated a proposed settlement which will exclude her from any recovery whatsoever.
Martha Preston of Baraboo, WI, provides another excellent example. Ms. Preston was involved in the famous BancBoston case, brought in Alabama State court, which involved the bank's failure to post interest to mortgage escrow accounts in a prompt manner. Although Ms. Preston did receive a settlement of about $4, approximately $95 was deducted from her account to help pay the class counsel's legal fees of $8.5 million. Notably, Ms. Preston testified before my committee 5 years ago asking us to stop these abusive class action lawsuits, but it appears that, at least thus far, her plea has not been heard.
I urge my colleagues to support this modest effort to reform the abuses in the current system, abuses that are actually hurting those the system is supposed to help.
Mr. President, I rise today to introduce The Class Action Fairness Act of 2003, a bill that will help curb class action lawsuit abuse. For the last several Congresses, Senators Kohl, Hatch and others…
Mr. President, I rise today to introduce The Class Action Fairness Act of 2003, a bill that will help curb class action lawsuit abuse. For the last several Congresses, Senators Kohl, Hatch and others have joined me in introducing this important measure. Over the years, we have held several hearings on the numerous abuses of the class action system and the urgent need for reform. The Senate Judiciary Committee marked up and reported a similar class action bill in the 106th Congress, and in the 107th Congress the Judiciary Committee held a hearing on class action abuse. This bi-partisan bill has garnered increasing support over the years, and I look forward to even greater support in this Congress.
Abuses of the class action system abound. Specifically, class action cases have proven to be an easy way for attorneys to make millions of dollars while the plaintiff class members receive little or nothing of value. We all are familiar with the many class action lawsuits where plaintiffs were awarded nothing or coupons of limited value, while the lawyers got all the money in attorney's fees. Everyone of us has found ourselves to have been a potential member of a plaintiff class in a class action lawsuit, and for those of us who are not lawyers, it has been impossible to know what our rights are or whether we are being served the attorneys we never hired in the first place.
In addition, most class action lawsuits are being filed in state courts, even though these are usually the cases that involve the most money, have nationwide implications, and implicate citizens from all 50 States. Lawyers often game the system so they can bring lawsuits in State courts, which are more likely to certify class actions without adequately considering whether a class action would be fair to all class members. In some instances, class lawyers manipulate pleadings to avoid removal of the lawsuit to the federal courts. To do this, lawyers may claim that their clients suffered under $75,000 in damages so that the Federal threshold isn't triggered, even though their clients may have suffered an even greater injury. Class lawyers also sometimes defeat the complete diversity requirement by ensuring that at least one named class member is from the same state as a defendant, even if every other class member is from a different state.
The Class Action Fairness Act of 2003 will go a long way toward ending some of these abuses. This modest bill carefully fixes the more egregious problems with the class action system, while preserving class action lawsuits as an important tool which brings representation to the unrepresented.
First, our bill requires that notice of proposed settlements in all class actions, as well as all class notices, must be in clear, easily understood English and must include all material settlement terms, including amount and source of attorneys' fees. The notices most plaintiffs receive are written in small print and confusing legal jargon. In fact, a lawyer testified before my Subcommittee that even he could not understand the notice he received as a plaintiff in a class action lawsuit. Since plaintiffs are giving up their right to sue, it is imperative that they understand what they are doing and the ramifications of their actions.
Second, our bill requires that State attorneys general be notified of any proposed class settlement that would affect residents of their States. The notice would give a State attorney general the opportunity to object if the settlement terms are unfair to consumers.
Third, our bill disallows bounty payments to lead plaintiffs so lawyers looking for victims can't promise them unwarranted payoffs to be their excuse
for filing suit. It also prevents settlements that discriminate based on geography, so that one plaintiff doesn't receive more money just because he lives near the courthouse.
Fourth, our bill requires that courts scrutinize settlements where the plaintiffs get only coupons or non-cash awards, and the lawyers get money. The courts are required to make a written finding that the settlement is fair and reasonable for class members. A court will still be able to find that a non-cash settlement, like in the case of injunctive relief banning some type of bad conduct, is fair and reasonable. But courts would be able to throw out sham settlements where the lawyers get big paychecks but the plaintiffs get nothing but coupons.
Finally, our bill allows more class action lawsuits to be removed from state court to federal court, either by a defendant or an unnamed class member. A class action would qualify for federal jurisdiction if the total damages exceed $2,000,000 and parties include citizens from multiple States. Currently, class lawyers can avoid removal if individual claims are for $75,000 or less, even if hundreds of millions of dollars in total are at stake, or if just one class member is from the same State as a defendant. But if a case really belongs in state court because it's a State-law question or the substantial majority of class members and defendants are in-State, the case will stay in state court.
We need class action reform badly. Both plaintiffs and defendants are calling for change in this area. The Class Action Fairness Act of 2003 is a good, modest bill that will help curb the many problems that have plagued the class action system.
This bill will remove the conflict of interest that lawyers face in class action lawsuits, and will ensure the fair settlement of these cases. This bill will preserve the process, but put a stop to the more egregious abuses. I urge all my colleagues to join Senators Kohl, Hatch, Carper, Specter, Chafee, Lugar, Miller and I 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 ask unanimous consent that the text of the bill be printed in the Record.
I thank my colleague from Pennsylvania. Less than 10 minutes. Once again, I thank my colleague from Pennsylvania. And I assure my friend from North Dakota, although it is not my time to give, I am…
I thank my colleague from Pennsylvania.
Less than 10 minutes.
Once again, I thank my colleague from Pennsylvania. And I assure my friend from North Dakota, although it is not my time to give, I am happy he is going to be recognized.
Mr. President, I want to take just a few minutes to talk about the legislation before us, the CARE Act, and note its timeliness, because I think fundamental to a lot of good ideas is the fact that it is time to encourage participation in the spirit of harmony and unity within our country.
I have been struck by the fact I have not heard a call for either participation or voluntary--call it sacrifice, if you will, although compared to what our young men and women are doing in Iraq, nothing we are going to do here looks like that much of a sacrifice--but it does show good intent. To me, that is important.
So I am pleased the sponsors of this bill, Senators Lieberman and Santorum, have agreed to make this more palatable by removing controversial language that raised some constitutional and civil rights concerns.
The bill contains several very good provisions, including changes to the Tax Code we all hope will increase charitable giving and certainly encourage the spirit of charitable giving, as well as being an incentive.
In addition, the bill increases funding for the social services block grant by over $1 billion. That will restore some of the cuts that have been made in the program over the years. This increase in the social services block grant funding will benefit thousands of Americans who are suffering in this economy, who truly need help.
If the President's faith-based initiative means anything, then, obviously, this dedication of funding for charitable work by religious and secular charities confirms that is an appropriate thing to do; that is, to look to our charitable interests to firm up the fact we do feel some commitment to commemorate the sacrifice that is being made by so many.
If this funding disappears in conference, I think it would be tragic because it would say, OK, if it passes the Senate--and I certainly hope and believe it will--and then suddenly this mystery hole opens up between here and the House of Representatives--and these things often fall in it--then it is left to people who have a curiosity about what happened, as they say, on the way to the other forum, when things just disappear. But it is a convenient sleight of hand for those who really don't want to support it but don't want to be identified with withdrawing their support.
So even though this bill is silent on civil rights issues, the President's overall faith-based initiative contains some disturbing civil rights problems. The President has announced several policies that I think should trouble Americans who care deeply about civil justice and equality.
The President has issued an Executive order that authorizes organizations that receive Federal funding to discriminate in employment--it is based on religion--for Government-funded positions. That is not fair, it is not appropriate, and I certainly don't think it is appropriate for faith-based organizations.
A policy that says ``Catholics need not apply'' should never, ever be funded by the Federal Government. If a religious group wants to restrict employment with their own money, that is their business, but they should not be able to discriminate in staffing up Government programs paid for with public dollars, tax dollars.
The American people agree. A poll by the Pew Forum on Religion and Public Life found that 78 percent of Americans oppose allowing religious groups that receive Federal funding to discriminate in employment.
And it is not merely a hypothetical problem. It is a real-life problem.
In Georgia, a man named Alan Yorker sent his resume to a Government- funded faith-based program for troubled youths. The position he sought was paid for with taxpayer dollars. The faith-based group said they were impressed with his resume and called him in for an interview. When Mr. Yorker arrived, he was asked to fill out an application form. The form asked for the name of his church. He wrote in the name of his synagogue. It also asked for the name of his pastor, and he filled in his rabbi's name.
When he sat down for the interview, he was told, straight out, they don't hire Jews. A former employee of the organization later told Mr. Yorker they usually throw resumes with ``Jewish-sounding names'' in the trash, but they did not recognize his last name as Jewish.
This was a taxpayer-funded job to perform social service work pursuant to a Government program. And President Bush thinks maybe it is OK to deny someone employment because they are of a different persuasion.
The administration thinks it is fine for a Government-funded program to tell a Catholic or a Mormon they can't get a taxpayer-funded job simply because of their religion. Well, I disagree. I think it is wrong. And I am going to join my colleagues, Senators Reed and Durbin, in fighting it during this session of Congress.
Again, I commend the sponsors of this legislation. The Senator from Pennsylvania did a very good job, I believe, in developing this legislation, for removing the controversial provisions from the bill before us.
I hope the bill will further the good work that faith-based and secular charities do every day. While this bill moves in the right direction, the administration is on, I believe, the wrong track regarding civil rights. I hope the President will reverse that course.
Mr. President, our faith should bring us together, not divide us.
I yield the floor.
Mr. President, I rise today in support of the Charity, Aid, Recovery, and Empowerment Act. I am proud to be an original cosponsor of this important legislation, which would encourage more citizens to…
Mr. President, I rise today in support of the Charity, Aid, Recovery, and Empowerment Act. I am proud to be an original cosponsor of this important legislation, which would encourage more citizens to contribute to non-profit programs and institutions. I want to commend my colleagues, Senators Santorum and Lieberman, for introducing this important bipartisan legislation. The CARE Act is designed to promote charitable giving at a time when charities report increasing demands on their services along with a decline in contributions.
After the tragedy of September 11, charitable contributions were greatly deminished. Donations to charitable organizations dropped last year by 2.3 percent and they are lagging even further behind this year. At the same time, more people are turning to charities for help because of job lay-offs, health concerns, and the needs of our children. The tax incentives contained in the CARE Act to encourage charitable giving are needed now more than ever.
Included in this bill is language to encourage charitable giving by allowing a tax deduction for charitable giving for non-itemizers. Eighty-six million Americans do not presently itemize their deductions on their tax returns. This provision would allow for a tax deduction up to $250 for individuals and $500 for couples. Organizations such as the American Red Cross, the March of Dimes, and other charitable organizations that rely on low dollar donations believe that they will be able to generate more donations if everyone could take a deduction regardless of which form they file with the Internal Revenue Service.
The ability to roll over excess funds from Individual Retirement Accounts to a charitable organization or university is also a part of this legislation. Many organizations and universities benefit from planned gift revenues. The IRA rollover provision will allow charities to increase the number of planned gifts, while being able to diversify their planned gift portfolios.
I have been a supporter of Individual Development Accounts and was pleased that this initiative to expand these accounts is included in the bill before us. These accounts are made up of dollar-for-dollar matching contributions up to $500 from banks and community organizations to be used by lower-income working families to buy a home, start or expand a small business, or pay for college.
I believe that one of the most important provisions that has been included in this bill is the Hunger Relief Tax Incentive Act. This important provision allows for expanded charitable tax deductions for contributions of food inventory to our nation's food banks. Demand on food banks has been rising, and these tax deductions would be an important step in increasing private donations to the non-profit hunger relief charities playing a critical role in meeting America's nutrition needs.
As I have traveled around Indiana, I have visited many food banks in our state. They have confirmed the results of a study by the U.S. Conference of Mayors that showed demand for food at food banks has risen significantly. The success of welfare reform legislation has moved many recipients off welfare and into jobs. In many states, welfare roles have been reduced by more than half. But we need to recognize that these individuals and their families are living on modest wages. As the states' unemployment rates have risen, so has the demand placed on the food banks and soup kitchens.
According to the Conference of Mayors survey, during the last year, requests for emergency food assistance has increased one hundred percent. Forty-eight percent of the people requesting emergency food assistance are either children or their parents. The number of elderly persons requesting food assistance has increased by ninety-two percent.
Private food banks provide a key safety net against hunger. According to an August 2000 report by USDA, 31 million Americans are living on the edge of hunger.
USDA statistics show that up to 96 billion pounds of food go to waste each year in the United States. If a small percentage of this wasted food could be redirected to food banks, we could make important strides in our fight against hunger.
The food bank provisions under the CARE Act would allow farmers and small business owners to take a deduction when they donate food to their community food bank. Currently this deduction is available to large corporations but not to small businesses. This approach would stimulate private charitable giving to food banks at the community level.
Each citizen can make an important contribution to the fight against hunger at a local level. I have been especially impressed by the remarkable work of food banks in Indiana. In many cases, they are partnered with churches and faith-based organizations and are making a tremendous difference in our communities. We should support this private sector activity, which not only feeds people, but also strengthens community bonds and demonstrates the power of faith, charity, and civic involvement.
I would like to thank Senators Santorum, Lieberman, Grassley, and Baucus for their efforts in helping America's charities meet their funding goals, and to those individuals who take advantage of the services provided by these groups.
Mr. President, I am pleased that the Senate is considering the CARE Act today. By enacting this legislation, Congress acknowledges the inherent good in millions of Americans. The bill includes a…
Mr. President, I am pleased that the Senate is considering the CARE Act today. By enacting this legislation, Congress acknowledges the inherent good in millions of Americans.
The bill includes a number of changes to the tax rules that will make it easier for individuals to donate to the tens of thousands of worthwhile charities that operate across this nation. By making the charitable deduction available to those taxpayers who don't itemize their deductions, married couples can deduct as much as $500 of the contributions they make to charity.
Provisions in the legislation also make it easier for individuals to donate funds they have saved in an IRA. Rather than having to report this amount in income and then take a commensurate deduction for the contribution, the new rule allows the funds to be transferred directly to the charity.
The bill also eases the burden of gaining tax benefits for those individuals who wish to make donations of food, books, and scholarly compositions to charity.
While these charitable giving incentives are useful to many citizens and the charities they desire to help, this legislation may be even more important because it contains strong provisions that will help the Internal Revenue Service and the Nation's courts crack down on abusive tax shelters.
In his last report to the IRS Oversight Board, the IRS Commissioner Charles Rossotti identified abusive corporate tax shelters and promoters of tax schemes of all varieties as among the most serious compliance problem areas. In addition to the revenue lost by the Federal Government--funds that could be used for defending the homeland, education, and protecting the environment--the proliferation of these schemes represents in Commissioner Rossotti's words ``a failure of fairness to the millions of honest taxpayers whose commitment to paying their taxes is based on the principle that the IRS will act if they or their neighbors do not pay their fair share.''
This administration has been slow to embrace measures that crack down on those who manipulate the Tax Code to
avoid paying their taxes. Despite the previous administration having identified the proliferation of tax shelters as a large and growing problem as far back as 2000, President Bush's initial budget contained no legislative recommendations to stem the proliferation of tax shelters.
Only after it became clear that Congress was going to address this issue, did the Bush Administration take notice. Even then, their approach to combating this problem was, at best, timid. The Bush administration's solution was to continue to rely solely on the Service's ability to detect an abusive tax shelter from within the minutiae of a taxpayer's tax return. If the Service was fortunate to uncover a tax shelter, it could then initiate steps to shut it down. This is a difficult and time-consuming process for the IRS to undertake.
While disclosure of these schemes by taxpayers and promoters can be useful in combating the proliferation of tax shelters, the IRS also needs some additional tools. This is why the bill includes a statutory requirement that transactions utilized by taxpayers have an economic rationale beyond the creation of tax benefits, commonly referred to as the ``economic substance doctrine''. The bill backs up this new requirement with stiff penalties for taxpayers who engage in such transactions.
It is a simple requirement. You don't even need to be a tax attorney to understand it. Simply put, it would require that transactions conducted by taxpayers have a business purpose. What does that mean? The proposal requires that a taxpayer have a reason other than the creation of tax benefits for engaging in a transaction.
A cursory review of the recent Joint Committee on Taxation report on the tax returns of Enron Corporation highlights the dire need for this legislative change. The Joint Committee on Taxation found that Enron paid total federal income taxes for the period 1996 through 2001 of $63 million. During this same period Enron reported to investors that it had profits of nearly $6 billion. How was Enron able to paint such obviously contrasting pictures?
According to the Joint Committee on Taxation's report, Enron transformed its tax department from an administrative function to a profit center. Enron spent millions of dollars on tax attorneys and shelter promoters who helped it cook up transactions that had no purpose other than to artificially reduce its tax liability.
According to the JCT Report, these transactions:
demonstrate the need for strong anti-avoidance rules to
combat tax-motivated transactions that might satisfy the
technical requirements of the tax statutes and administrative
rules, but that serve little or no purpose other than to
generate income tax or financial statement benefits.
This bill provides those strong anti-avoidance rules, and I hope they will become law sooner rather than later.
Mr. President, Saturday, February 1 was a sad day for America, and a sad day for the world. In the blink of an eye, we lost the cream of our astronaut corps when the Space Shuttle Columbia…
Mr. President, Saturday, February 1 was a sad day for America, and a sad day for the world. In the blink of an eye, we lost the cream of our astronaut corps when the Space Shuttle Columbia disintegrated upon re-entry into the Earth's atmosphere.
Our Nation and the world mourns the loss of these heroes: Lt. Col. Michael P. Anderson, U.S. Navy Capt. David Brown, U.S. Navy Commander Laurel Clark, Dr. Kalpana Chawla, U.S. Air Force Col. Rick Husband, Naval Commander William McCool, and Israeli Air Force Colonel Ilan Ramon. The loved ones they left behind mourn the loss of fathers and mothers, sons and daughters, sisters, brothers, and friends.
We have a duty to those who lost their lives for the advancement of science and increasing our knowledge of the world we live in: a duty first to find out what went wrong and make sure it never goes wrong again, a duty to take up where they left off and continue exploring the unknowns of the universe, and just as importantly, a duty to help take care of the loved ones they left behind.
After the horrible day of terrorist attacks on September 11, 2001, Congress paid tribute to the lives lost in those attacks, and in the bombing in Oklahoma City and the anthrax attacks, by expanding certain tax benefits previously only available to soldiers who had been killed in combat zones. The benefits include income tax relief, an exclusion of death benefit payments, estate tax relief and a streamlining of the rules governing the distribution of funds by charitable organizations.
I believe the families of the heroes of the Columbia Shuttle mission, and families of astronauts that may be lost in the future, deserve no less.
Military or civilian employees of the U.S. who die as a result of terrorist or military activity outside the U.S., victims of the terrorist attacks of 9/11, of the Oklahoma City bombing and of the post-9/11 anthrax attacks, are generally exempt from income tax for the year of death and the year prior to death. For those that have little income tax liability, a minimum tax relief benefit of $10,000 is provided.
Current law exempts from income tax certain death benefits paid by the U.S. government to soldiers killed in the line of duty. The law also generally excludes from income payments made by an employer to the families of the victims of the terrorist attack of 9/11, Oklahoma City and the anthrax attacks. The exclusion does not apply to amounts that would have been payable if the individual had died for a reason other than the attack.
Current law also provides a reduction in Federal estate tax for soldiers who are killed in action while serving in a combat zone, or as a result of wounds, disease or injury suffered while serving in the combat zone. Comparable benefits are also provided to the victims of 9/ 11, Oklahoma City and the anthrax attacks. The amount of benefit is equal to 125 percent of the 2001 State death tax credit amount, which effectively establishes a 20 percent estate tax bracket for those who qualify for this benefit.
And finally, we have a streamlined process for the distribution of charitable donations to the families of the victims of 9/11, Oklahoma City and the anthrax attacks. The key element of this process allows organizations that make payments in good faith using a reasonable and objective formula which is consistently applied not to make a specific assessment of need prior to distributing funds so long as the payments serve a charitable class.
My legislation, the Assistance for Families of Space Shuttle Heroes Act, makes all of the above benefits available to the families of the fallen Columbia crew, as well as to other astronauts that may be killed in the line of duty in future years.
The seven members of the Columbia crew were true heroes. They are deeply missed by their family and friends. Through their dedication to space exploration, they lived their lives to the fullest and made long- lasting contributions to the nation and to the world. Tax relief will never fill the hole that has been left in the lives and hearts of their families by Saturday's explosion.
But astronauts have trouble obtaining private life insurance policies given
the high-risk nature of their jobs, so their families face an uncertain future even as they mourn the loss of loved ones that will never be replaced. This legislation is especially critical for their future. It is one small step we can make as Americans to help these families get through these dark days, and the challenges they will face in the years to come.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I am pleased to introduce a bill today to authorize the exchange of State lands inside Grand Teton National Park. Grand Teton National Park was established by Congress on February 29,…
Mr. President, I am pleased to introduce a bill today to authorize the exchange of State lands inside Grand Teton National Park.
Grand Teton National Park was established by Congress on February 29, 1929, to protect the natural resources of the Teton range and recognize the Jackson area's unique beauty. On March 15, 1943, President Franklin Delano Roosevelt established the Jackson Hole National Monument adjacent to the park. Congress expanded the Park on September 14, 1950, by including a portion of the lands from the Jackson Hold National Monument. The park currently encompasses approximately 310,000 acres of wilderness and has some of the most amazing mountain scenery anywhere in our country. This park has become an extremely important element of the National Park system, drawing almost 2.7 million visitors in 1999.
When Wyoming became a State in 1890, sections of land were set aside for school revenue purposes. All income from these lands--rents, grazing fees, sales or other sources--is placed in a special trust fund for the benefit of students in the State. The establishment of these sections predates the creation of most national parks or monuments within our State boundaries, creating several State inholdings on federal land. The legislation I am introducing today would allow the Federal Government to remove the State school trust lands from Grand Teton National Park and allow the State to capture fair value for this property to benefit Wyoming school children.
This bill, entitled the ``Grand Teton National Park Land Exchange Act,'' identifies approximately 1406 acres of State lands and mineral interests within the boundaries of Grand Teton National Park for exchange for Federal assets. These federal assets could include mineral royalties, appropriated dollars, Federal lands or combination of any of these elements.
The bill also identifies an appraisal process for the State and Federal Government to determine a fair value of the State property located within the park boundaries. After the bill is signed into law, the land would be valued by one of the following methods: 1. the Interior Secretary and Governor would mutually agree on a qualified appraiser to conduct the appraisal of the State lands in the park; 2. If there is no agreement about the appraiser, the Interior Secretary and Governor would each designate a qualified appraiser. The two designated appraisers would select a third appraiser to perform the appraisal with the advice and assistance of the designated appraisers.
If the Interior Secretary and Governor cannot agree on the evaluations of the State lands 180 days after the date of enactment, the Governor may petition the U.S. Court of Federal Claims to determine the final value. One-hundred-eighty days after the State land value is determined, the Interior Secretary, in consultation with the Governor, shall exchange Federal assets of equal value for the state lands.
The management of our public lands and natural resources is often complicated and requires the coordination of many individuals to accomplish desired objectives. When western folks discuss federal land issues, we do not often have an opportunity to identify proposals that capture this type of consensus and enjoy the support from a wide array of interests; however, this land exchange offers just such a unique prospect.
This legislation is needed to improve the management of Grand Teton National Park, by protecting the future of these unique lands against development pressures and allow the State of Wyoming to access their assets to address public school funding needs.
This bill enjoys the support of many different groups including the National Park Service, the Wyoming Governor, State officials, as well as folks from the local community. During the 107th Congress the Senate passed this exact same legislation three separate times unanimously. Unfortunately, due to complications unrelated to the bill was not able to be sent to the President for signature and enactment. It is my hope that the Senate, and the Congress, will seize this opportunity to improve upon efforts to provide services to the American public.
Mr. President, I ask unanimous consent that the text of the bill printed in the Record.
Mr. President, I rise today to introduce the Birth Defects and Developmental Disabilities Prevention Act. It is a pleasure to work, once again, on this important issue with Senators Dodd, Frist and…
Mr. President, I rise today to introduce the Birth Defects and Developmental Disabilities Prevention Act. It is a pleasure to work, once again, on this important issue with Senators Dodd, Frist and Kennedy.
My interest in birth defects prevention began while I was Governor. As Governor I had secured dollars to fund the neonate care units at our hospitals in Missouri. These remarkable institutions and the dedicated men and women who serve there do a tremendous job of saving low birth weight babies and babies with severe birth defects.
As I visited those hospitals and held those tiny babies, the doctors and nurses who staffed these units asked me, ``Why don't we do something to reduce the incidents of birth defects and the problems that bring the tiniest of infants to these very high-tech, specialized care units.''
Since I became a Senator I have been working with colleagues on both sides of the aisle and with the March of Dimes to deal with this serious and compelling health problem facing America.
Many people are not aware that birth defects affect over 3 percent of all births in America, and they are the leading cause of infant death. This year alone, an estimated 150,000 babies will be born with a birth defect. Among the babies who survive, birth defects often result in lifelong disability. Medical care, special education, and may other services are often required into adulthood, costing families thousands of dollars each year.
In 1998, Congress finally passed a bill I had sponsored for 3 previous sessions, the Birth Defects Prevention Act, which created a federal birth defects prevention and surveillance strategy. That was followed by the Children's Health Act of 2000, which established the National Center on Birth Defects and Developmental Disabilities at CDC. With these two important pieces of legislation Congress recognized that birth defects and developmental disabilities are major threats to children's health.
The Birth Defects and Developmental Disabilities Prevention Act revises and extends the Birth Defects Prevention Act of 1998. This bill is straightforward and has the support of the March of Dimes, Spina Bifida Association of America, the Autism Society of America, and the Coalition for Children's health among others. It: (1) Reauthorizes the National Center on Birth Defects and Developmental Disabilities for 5 years; (2) makes several technical amendments to ensure that the full scope of activities conducted by the center are included in statute; (3) authorizes CDC to collect data from educational records that are necessary to conduct surveillance on developmental disabilities-- including autism--while
protecting the privacy of individuals and their families; (4) authorizes CDC to support a National Spina Bifida Program to promote prevention and enhance the quality of life of those living with Spina Bifida; (5) authorizes CDC to conduct research and programs on the prevention of secondary conditions and the promotion of health and wellness in individuals living with disabilities; and (6) finally, the bill transfers certain members of the Advisory Committee to the Director of the National Center for Environmental Health who have expertise in birth defects, developmental disabilities and disabilities and health to the National Center on Birth Defects and Developmental Disabilities.
We have come a long way in the past 5 years toward preventing certain birth defects and developmental disabilities, but we face many challenges ahead. There is still much work to be done to improve the health of all Americans by preventing birth defects and developmental disabilities in children, promoting optimal child development and ensuring health and wellness among children and adults living with disabilities.
Today, with the introduction of this bill we have the opportunity to renew our commitment to birth defects prevention and to improve the quality of life of those living with disabilities. I look forward to working with my colleagues to ensure and enhance the well-being of our Nation's children.
Bill Text
Latest available legislative text
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 283 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 283
To amend the Internal Revenue Code of 1986 to allow tax-free
distributions from individual retirement accounts for charitable
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 4, 2003
Mr. Dorgan (for himself, Mr. Kerry, and Ms. Snowe) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow tax-free
distributions from individual retirement accounts for charitable
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Public Good IRA Rollover Act''.
SEC. 2. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT ACCOUNTS FOR
CHARITABLE PURPOSES.
(a) In General.--Subsection (d) of section 408 of the Internal
Revenue Code of 1986 (relating to individual retirement accounts) is
amended by adding at the end the following new paragraph:
``(8) Distributions for charitable purposes.--
``(A) In general.--No amount shall be includible in
gross income by reason of a qualified charitable
distribution.
``(B) Qualified charitable distribution.--For
purposes of this paragraph, the term `qualified
charitable distribution' means any distribution from an
individual retirement account--
``(i) which is made directly by the
trustee--
``(I) to an organization described
in section 170(c), or
``(II) to a split-interest entity,
and
``(ii) which is made on or after the date
that the individual for whose benefit the
account is maintained has attained--
``(I) in the case of any
distribution described in clause
(i)(I), age 70\1/2\, and
``(II) in the case of any
distribution described in clause
(i)(II), age 59\1/2\.
A distribution shall be treated as a qualified
charitable distribution only to the extent that the
distribution would be includible in gross income
without regard to subparagraph (A) and, in the case of
a distribution to a split-interest entity, only if no
person holds an income interest in the amounts in the
split-interest entity attributable to such distribution
other than one or more of the following: the individual
for whose benefit such account is maintained, the
spouse of such individual, or any organization
described in section 170(c).
``(C) Contributions must be otherwise deductible.--
For purposes of this paragraph--
``(i) Direct contributions.--A distribution
to an organization described in section 170(c)
shall be treated as a qualified charitable
distribution only if a deduction for the entire
distribution would be allowable under section
170 (determined without regard to subsection
(b) thereof and this paragraph).
``(ii) Split-interest gifts.--A
distribution to a split-interest entity shall
be treated as a qualified charitable
distribution only if a deduction for the entire
value of the interest in the distribution for
the use of an organization described in section
170(c) would be allowable under section 170
(determined without regard to subsection (b)
thereof and this paragraph).
``(D) Application of section 72.--Notwithstanding
section 72, in determining the extent to which a
distribution is a qualified charitable distribution,
the entire amount of the distribution shall be treated
as includible in gross income without regard to
subparagraph (A) to the extent that such amount does
not exceed the aggregate amount which would be so
includible if all amounts were distributed from all
individual retirement accounts otherwise taken into
account in determining the inclusion on such
distribution under section 72. Proper adjustments shall
be made in applying section 72 to other distributions
in such taxable year and subsequent taxable years.
``(E) Special rules for split-interest entities.--
``(i) Charitable remainder trusts.--
Notwithstanding section 664(b), distributions
made from a trust described in subparagraph
(G)(i) shall be treated as ordinary income in
the hands of the beneficiary to whom is paid
the annuity described in section 664(d)(1)(A)
or the payment described in section
664(d)(2)(A).
``(ii) Pooled income funds.--No amount
shall be includible in the gross income of a
pooled income fund (as defined in subparagraph
(G)(ii)) by reason of a qualified charitable
distribution to such fund, and all
distributions from the fund which are
attributable to qualified charitable
distributions shall be treated as ordinary
income to the beneficiary.
``(iii) Charitable gift annuities.--
Qualified charitable distributions made for a
charitable gift annuity shall not be treated as
an investment in the contract.
``(F) Denial of deduction.--Qualified charitable
distributions shall not be taken into account in
determining the deduction under section 170.
``(G) Split-interest entity defined.--For purposes
of this paragraph, the term `split-interest entity'
means--
``(i) a charitable remainder annuity trust
or a charitable remainder unitrust (as such
terms are defined in section 664(d)) which must
be funded exclusively by qualified charitable
distributions,
``(ii) a pooled income fund (as defined in
section 642(c)(5)), but only if the fund
accounts separately for amounts attributable to
qualified charitable distributions, and
``(iii) a charitable gift annuity (as
defined in section 501(m)(5)).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2002.
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