A bill to amend title XXI of the Social Security Act to extend the availability of allotments for fiscal years 1998 through 2001 under the State Children's Health Insurance Program.
Legislative Activity
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Held at the desk.
June 26, 2003 • 9:15 PM
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Introduced in Senate
February 5, 2003
Sponsor introductory remarks on measure. (CR S1989-1990)
February 5, 2003
Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S1990-1991)
February 5, 2003
Committee on Finance. Ordered to be reported without amendment favorably.
June 12, 2003
Committee on Finance. Reported by Senator Grassley without amendment. With written report No. 108-78.
June 24, 2003
Placed on Senate Legislative Calendar under General Orders. Calendar No. 166.
June 24, 2003
Star Print ordered on Senate Report 108-78.
June 26, 2003
Measure laid before Senate by unanimous consent. (consideration: CR S8633-8635)
June 26, 2003
Passed Senate with an amendment by Unanimous Consent. (text: CR S8633-8635)
June 26, 2003
Message on Senate action sent to the House.
June 26, 2003
Received in the House.
June 26, 2003 • 5:10 PM
Held at the desk.
June 26, 2003 • 9:15 PM
Floor Debate
21 membersWhat members said about S. 312 on the floor
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Floor Debate
21 membersWhat members said about S. 312 on the floor
Mr. President, today I am pleased to introduce the United States-Mexico Transboundary Aquifer Assessment Act. This bill is the result of a field hearing I conducted in Las Cruces, NM two years ago…
Mr. President, today I am pleased to introduce the United States-Mexico Transboundary Aquifer Assessment Act.
This bill is the result of a field hearing I conducted in Las Cruces, NM two years ago during my tenure as the Chairman of the Energy and Natural Resources Committee. The focus of the hearing was water resource issues that were developing along the U.S.-Mexico border-- particularly the area encompassing Las Cruces, El Paso, Texas, and Juarez, Mexico.
There had long existed an ongoing effort to address water quality issues and waste-water infrastructure needs in the border region, but I was concerned that issues regarding the availability of future water supplies were growing. The testimony at that hearing made clear that there exists little consensus on how growing communities in the border region will address their future water needs. In particular, I was struck by the lack of agreement on the long-term viability of future groundwater sources, many of which involve aquifers underlying communities in both the United States and Mexico. Given the rapid population growth along the U.S.-Mexico border and the increasing demand for water, there is a strong need to gain a common understanding of the limits of our shared groundwater resources. A thorough understanding of the resource is the first step to avoiding conflicts similar to those that have arisen between the United States and Mexico over shared surface waters--e.g. the Rio Grande.
The United States-Mexico Transboundary Assessment Act is intended to address the lack of binational consensus regarding the source and availability of future water supplies along the border. It will do this by establishing a scientific program, involving entities on both sides of the border, to comprehensively assess priority transboundary aquifers. The information and scientific tools developed by this program will be extremely valuable to State and local water resource managers in the border region. This effort is to be led by the United States Geological Survey (USGS) working closely with the border states and local entities. Over the last several years the USGS has been working with key stakeholders in the border region to design this technical program.
I understand that establishing this scientific program and accurately assessing our shared water resources is just a step towards developing the long-term plans and solutions that will help avoid future international disputes concerning scarce water supplies. This small step, however, is an important one, and is recognized by a number of organizations familiar with the need for cooperative efforts between the United States and Mexico on shared water resources. In its 6th Report on the U.S.-Mexico Border Environment, the Good Neighbor Environmental Board, an independent federal advisory committee managed by the U.S. Environmental Protection Agency, recommended the initiation of a ``border-wide groundwater assessment program to systematically analyze priority trans-boundary aquifers.'' Also, the Center for Strategic and International Studies, in a January 2003 report of its U.S.-Mexico Binational Council, included as one of its recommendations that Mexico and the United States ``improve data collection, information gathering, and transparency as the first step to developing a long-term strategy for water management.''
Ultimately, the necessary long-term strategy will have to be developed by the communities and other water users who reside along the border. Working with each other and their state water resource agencies, I believe successful strategies can be developed so long as the information that is the basis for the plans is the most accurate possible. In that respect, the USGS has a strong and important role to play. This bill will ensure that the USGS will be able to fulfill this role which, in turn, will enhance the prospects for our border communities to plan for their future and manage their growth in a manner that ensures their long-term viability and prosperity.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I want to speak for just a few minutes today on an issue on which I have introduced a bill. The bill is S. 1966. It is a bill to require a report on the detainees being held at Guantanamo Bay, Cuba.
The purpose of this legislation is to shed some light on the process that is being used by this administration to determine the status of so-called enemy combatants who are held by our Government at Guantanamo Bay Naval Base. It has now been nearly 2 years since the first detainees arrived at Guantanamo as prisoners of the United States. Yet these individuals are still being held in what most would refer to as legal limbo.
My colleagues will recall that on July 16, I urged the Senate to adopt an amendment to the Defense appropriations bill. That amendment was tabled 52 to 42. It is essentially the same provision--it contained the same provisions I have now put into S. 1966, this freestanding legislation I have introduced.
The day after that amendment was defeated I sent a letter to Secretary Rumsfeld expressing my concern over the apparent lack of any kind of legal process being extended to the detainees being held at Guantanamo. Only recently I received a reply from the Department of Defense. In that letter, the Department of Defense maintains that it:
. . . reviews on a regular basis the continued detention of
each enemy combatant and assesses the appropriate disposition
of each individual case.
According to the Defense Department, at the time they wrote back to me, they said that the review had resulted in the release of 64 detainees who were determined to no longer pose a threat to the United States, and more releases were expected.
However, the letter fails to address the more important question, which is whether the Department's review of these detainees is being done in accordance with any recognized civilian or military legal process.
I ask unanimous consent to have the letter printed in the Record at the conclusion of my remarks.
What prompted me to come to the floor of the Senate today was an article I saw in the morning paper. This appeared in various papers around the country, but the one I have here in front of me is from the Boston Globe. It says:
The U.S. military sent home 20 ``enemy combatants'' last
weekend who were being held without trial at Guantanamo Bay
Naval Base in Cuba, only to replace them with the same number
of new prisoners.
It has a quotation from a spokesperson for the military saying:
We cannot talk about any of the individuals that may have
departed the island due to security concerns.
According to this article, all those transferred last week have been returned, many of them to Pakistan, and all of those transferred last weekend, according to representatives from the countries they are citizens of, said they will be released once they have arrived in those countries.
The figure now, as I understand it, is there are 88 suspects who have been transferred out of Guantanamo Bay. Four were released, 4 were handed over to Saudi Arabia, and the remaining 650 or 700 are still there. As this article indicated, we continue to add additional people to this prison we are operating there at Guantanamo.
There are various complaints described in the article by foreign diplomats about the process we are following. There is a statement by the attorney for one of the human rights organizations that has complained bitterly about the improvisational policy decisions and the arbitrary power over prisoners at the base.
My motives for offering this legislation are very simple. While I obviously have concerns about judicial treatment and the failure of any kind of legal process being followed in the treatment of these detainees in Guantanamo, I am even more concerned about the implications of this treatment we are affording these individuals for our own fighting forces as well as our international reputation.
The bill I filed here in the Senate today requires the Secretary of Defense to report on the status of these detainees, including the process that was utilized to determine that status for those who have already been released from Guantanamo. The bill requires the Secretary to provide information related to this release, how long they were detained, the conditions of their release, if any, the explanations of why the Department of Defense has now determined these individuals could be released after what has in many cases been a very long detention.
For the remaining detainees--those who are still at Guantanamo--the administration has still refused to provide ``access to an impartial tribunal to review whether any basis exists for [detainees] continued detention.'' The detainees have not been allowed to speak with their families or their counsel, nor have they been informed of any charges against them, as far as I am informed.
The bill I filed requires that within 90 days of its enactment the Secretary of Defense provide the Senate with information related to the process used to categorize and hold these detainees. It does not call for release of the detainees. It does not in any way, shape, or form require the release of any classified information other than to the chairman and vice chairman of the Senate and House committees. The amendment merely seeks to clarify for the Senate and for the Congress the process by which the detainees' status is determined.
Like most Americans, I have always thought that what distinguished our country in the history of the world was our commitment to individual freedom and to the rule of law; that the bedrock of a free society is the obligation taken by the Government to afford individuals with certain legal protections, and as a Nation committed to these principles we have been instrumental in the formulation and enforcement of international law, particularly when it came to the treatment of prisoners of war. For over 75 years, the United States has adhered to the Geneva Convention. Even during conflicts with insurgents and irregular forces, we have adhered to the Geneva Convention. Whenever our Nation has gone to war, we have taken pride in going above and beyond the requirements of international law as set out in the third Geneva Convention of 1929. In fact, the Department of Defense has adopted its own detailed regulations and doctrine and field manuals built on the provisions of the Geneva Convention which have guided our military through many conflicts regardless of size and scope and duration.
These regulations we have in our own military, like international law, do not contemplate the legal limbo we are holding these detainees in at Guantanamo. Neither the Geneva Convention nor the established military regulations define or use the term the President is using here. This term, unlawful combatant, is a new term which has come up in order to sidestep the requirements both of the Geneva Convention and of our own military regulations. Army Regulation 190-8 provides an effective and efficient process to
categorize the detainees on the battlefield. According to that provision, detainees must be classified either as an enemy prisoner of war, a recommended retained person entitled to enemy prisoner-of-war protections, an innocent civilian who should be immediately returned to his or her home or released, or a civilian internee who, for reasons of operational security, or probable cause incident to criminal investigation, should be retained. Such internees have the right to appeal the order directing their internment by challenging the existence of imperative security reasons that led to their detention.
The President's unilateral determination of the detainee's status at Guantanamo Bay signals a significant departure from the spirit of the Geneva Convention and a significant departure from the letter of established military regulations. In stark contrast to our Government's previous commitment to adherence to the rule of law and human rights, this administration has adopted a position that once the President designates that a person is a so-called enemy combatant or unlawful combatant, a term created by the administration, that person can be locked up and held incommunicado as long as the President desires, with absolutely no legal rights; no right to review of that decision. This means even if the administration makes a mistake or is given faulty information, it is virtually impossible for the person involved to prove his or her innocence because not only can they not talk to a lawyer or to family members, but they do not have the right even to know what they are being charged with.
The U.S. Supreme Court has agreed to consider the narrow question of whether the Federal courts have the power to hear challenges to the detainees' imprisonment. This is a significant move towards restoring the system of checks and balances, which needs to be restored--the system of checks and balances our Founders felt was essential to preserving liberty in the country. Similarly, the bill I have filed begins to fulfill Congress's constitutional responsibility to oversee what the executive branch does. It calls on the administration to tell us whether its actions are in accordance with military regulations and doctrine.
Our goal is to bring transparency to the issue and to fulfill Congress's constitutional role of oversight of the executive. We should know what process the administration is using to determine the status of these detainees.
My concern is much broader than what happens to these particular detainees. I am concerned about the impact of our treatment of these detainees on the treatment of our own military personnel who are captured in future conflicts. Former U.S. diplomats and judge advocate generals and even former U.S. prisoners of war filed ``friend of the court'' briefs in the Supreme Court questioning the legality and wisdom of the administration's policy of open-ended detentions at Guantanamo. Some of those briefs were extremely thoughtful, in my view. One former diplomat wrote:
It has been the experience of each of us that our most
important diplomatic asset has been this Nation's values. . .
. The hint that America is not all that it claims, that it .
. . can accept that the Executive Branch may imprison whom it
will and do so beyond the reach of due process of law demeans
and weakens this Nation's voice abroad.
In their brief, former judge advocate generals, the military's legal prosecutors and those most familiar with the law as it applies to enemy prisoners of war, strongly argue:
To be sure, this is a perilous time, as the President has
stated. But that does not justify indefinite confinement
without any type of hearing or judicial review. The United
States played a major role in the development and adoption of
the Geneva Conventions. The requirements of those
Conventions. The requirements of those Conventions are
incorporated directly into American Military Regulations.
American failure to provide foreign prisoners with the
protections of the Geneva Conventions may well provide
foreign authorities, in current or future conflicts, with an
excuse not to comply with the Geneva Conventions with respect
to captured American military forces.
Just as compelling are the stories told in the ``friends of the court'' brief filed by former prisoners of war. They argue that as a result of their own experience as prisoners of war, the United States has an interest ``in fostering the development, acceptance and enforcement of international norms pursuant to which prisoners of war and others captured during armed conflicts will be treated humanely and in accordance with the rule of law.'' They emphasize, that in particular, they ``wish to ensure that the treatment by the Untied States of foreign detainees . . . is such that the United States and former American POWs retain the moral authority to demand fair and humane treatment for any future Americans detained by foreign governments.''
However, nothing more clearly demonstrates this point than the actual stories themselves. Leslie H. Jackson, Edward Jackfert, and Neal Harrington are former prisoners of war. Mr. Jackson was captured by the Germans, who adhered to the Geneva Conventions. Mr. Jackfert and Mr. Harrington were held by Japan, which had not ratified and did not purport to follow international law.
If you will allow me to read them their brief:
Mr. Jackson was captured by the German Army on April 24,
1944, when his B-17 bomber crashed. Jailed and interrogated
for approximately one week, he was then transported to Stalag
17, a converted concentration camp. In his 13 months of
captivity, Mr. Jackson was granted the bare necessities:
shelter, minimal food, and the ability to socialize with
other American POWs. While the experience was harsh and
unpleasant, Mr. Jackson was never tortured or otherwise hurt
by the German guards. To follow the terms of the Geneva
Conventions of 1929, to which Germany was a party, Mr.
Jackson's German captors placed the appropriate Geneva
Convention signage in the barracks, permitted the
international Red Cross to ship basic necessities to POWs,
and allowed a Geneva inspector to survey the premises. Mr.
Jackson believes that his survival and relatively good health
while in captivity are the result of the German Army's
adherence to the 1929 Geneva Conventions.
The experiences of Mr. Jackfert and Mr. Harrington in the
custody of Japan, which had not ratified and did not purport
to follow the 1929 Geneva Conventions, offer a sharp
contrast. Both men were serving with the U.S. Army in the
Philippines when it surrendered to the Japanese in 1942, and
both subsequently served several years of hard captivity
beyond the reach of any Geneva Convention protections. Both
were part of the Bataan Death March and its well-documented
horrors. Mr. Harrington was forced into slave labor in a
Japanese coalmine, and saw his compatriots starved, beaten
and killed. Mr. Jackfert was also forced into slave labor
and suffered the extreme effects of heavy labor, cruelty
and inadequate nourishment, going from 125 pounds to 90
pounds in a matter of months. There was no Geneva signage,
no recognition of prisoner rights, and virtually no Red
Cross access.
Nor were the experiences of Mr. Harrington and Mr. Jackfert
atypical. Studies have determined that the death rate of U.S.
Military personnel interned by Japan was as high as 40
percent while the death rate of personnel captured and
interned by Germany was little more than 1 percent. . . .
Moreover, while it was rare for American POWs detained in
Germany to be tortured, the opposite was true for American
POWs in Japan. No one can adequately impart the suffering
most allied prisoners endured [in Japan]. . . . They were
beaten, kicked, robbed . . . and were buried alive. . . .
[T]he overwhelming majority endured ``hell on earth.''
Again, let me say, I am in no way suggesting that the detainees are not being treated humanely. In fact, from all information I have received, they are being treated humanely. But what I and these briefs that were filed in the Supreme Court are suggesting is that our failure to adhere to some recognized legal process in determining the status of these detainees opens the door for other countries to refuse to adhere to any legal process as well. It may very well result in arbitrary confinement and harsh treatment or other inhumane practices applied to our own citizens.
This bill will help Congress fulfill its duties and obligations as outlined in the Constitution and in U.S. law and regulation.
I hope we can quickly pass this legislation when we return for the second session of the Congress in January.
I yield the floor.
Exhibit 1
[From the Boston Globe, Nov. 25, 2003]
US Releases 20 Detainees, Transfers 20 More to Cuba
(By Charlie Savage)
Washington.--The U.S. military sent home 20 ``enemy
combatants'' last weekend who were being held without trial
at Guantanamo Bay naval base in Cuba--only to replace them
with the same number of new prisoners.
The prisoner transfer, the first such movement since mid-
July, followed a determination by senior military and
intelligence officials that the outgoing group ``either no
longer posed a threat to U.S. security or no longer required
detention by the United States,'' according to a statement
the Department of Defense released yesterday.
``We can't talk about any of the individuals that may have
departed the island due to security concerns,'' said
Lieutenant Colonel Pamela Hart, a spokeswoman for the
isolated facility at which the United States detains and
interrogates suspected terrorists.
But a high-ranking Pakistani official, who said yesterday
that at least five of the outgoing transferees were Pakistani
citizens, offered a chilly reaction to the Pentagon's news.
``The government is happy, but this is too damn late,''
said Imran Ali, second secretary of the Pakistan Embassy,
adding that 21 Pakistanis have been released from Guantanamo,
but another 37 are still there.
``Their lives have been destroyed. Their families have gone
through psychological trauma, since they were not terrorists;
they were just low-level Taliban fighters.''
The Pakistani official's reaction illustrated the pressure
on the United States to resolve the situation--especially
from allies in the war on terrorism who have expressed
concern for their citizens who are among the 660 prisoners
from 42 countries being held at the base.
Although the State Department has been negotiating with a
number of countries to continue the detention of some, all
those transferred last weekend will be released by their
countries, U.S. officials said.
The Pentagon statement said that ``at the time of their
detention, these enemy combatants posed a threat to U.S.
security.'' It offered little information about the new
arrivals, except that they were transferred from U.S. Central
Command in the Middle East.
Navy Lieutenant Commander Barbara Burfeind, a Pentagon
spokeswoman, said none of the new detainees were captured in
Iraq.
The weekend transfers of the detainees bring to 88 the
number of Al Qaeda or Taliban suspects who have been
transferred out. Of those, 84 were released and four were
handed over to Saudi Arabia.
Ruth Wedgwood, an international law professor at Johns
Hopkins University, said the arrival of the 20 new detainees
follows a flare-up of fighting by Taliban insurgents in
Afghanistan.
Wedgwood has defended the Bush administration's position
that the rules of the Geneva Conventions do not apply to the
detainees because they were not soldiers of a regular Afghan
army.
``Dismayingly, the Taliban have become very active again in
the southern area, so really . . . the war isn't over in that
area,'' she said.
Not among those who were transferred for release, according
to a senior Pentagon official, were the three ``juvenile
enemy combatants''--Afghans ages 13 to 15 who were captured
fighting alongside the Taliban and whose detention at the
prison has attracted particularly intense international
criticism. The commander of Guantanamo operations, Major
General Geoffrey Miller, had recommended that they be sent
home in August.
U.S. officials say they have been coordinating with UNICEF
in the event that the young fighters are released. UNICEF, a
United Nations agency that has offered to handle the juvenile
combatants, runs a program to ease the reintegration of
former child soldiers back into their home societies.
``The State Department and UNICEF will make sure that if
they're returned to Afghanistan, they won't just be plopped
down,'' a Pentagon official told The Boston Globe last week.
Ken Hurwitz of the Lawyers Committee for Human Rights, a
New York-based organization, said that the surprise release
reflected the military's ``improvisational'' policy decisions
and its arbitrary power over the prisoners at the base.
``It's the rule of law that's the point,'' he said.
``They're saying, `Trust us, and we'll do the right thing.'
But there is no right thing unless it's pursuant to some kind
of ordered, lawful proceeding.''
Challenges to the detentions that have been filed in
federal court have so far been dismissed because the base is
located on Cuban soil--it has been leased and controlled by
the United States for a century--and outside the jurisdiction
of U.S. sovereignty. Two weeks ago, the Supreme Court said it
would review the question of whether federal court
jurisdiction may extend there.
In a related development, the lawyer for Army Captain James
``Yousef'' Yee, the former Muslim chaplain at Guantanamo who
was arrested in September in the alleged mishandling of
classified material, sent a letter to President Bush
yesterday asking that his client be released from pretrial
detention for Thanksgiving and his daughter's birthday.
``These charges do not warrant pretrial confinement of any
kind,'' Eugene Fidell wrote in the letter. ``While military
sources initially reported a wild laundry list of suspected
offenses, such as spying or aiding the enemy, these have now
been reduced to two relatively minor [charges]. . . .
Nonetheless, he is being treated as if the original laundry
list of charges was the legal basis for his confinement. This
is totally wrong and unfair.''
Sean McCormack, a spokesman for the National Security
Council, said he would look into the letter, but had no
comment on the president's behalf.
Mr. President, I rise today to introduce legislation with Senators Domenici, Murray, Jeffords, Cantwell, Akaka, Reed, Chafee, and Inouye entitled the ``Children's Health Equity Technical Amendments Act of 2003.''
Since the passage of the Children's Health Insurance Program, or CHIP, in 1997, a group of States that expanded coverage to children in Medicaid prior to the enactment of CHIP have been unfairly penalized for that expansion. States are not allowed to use the enhanced matching rate available to other States for children at similar levels of poverty under the act. As a result, a child in the States of New York, Florida, and Pennsylvania, because they were grandfathered in the original act or in Iowa, Montana, or a number of other States at 134 percent of poverty is eligible for an enhanced matching rate in CHIP but that has not been the case for States such as New Mexico, Vermont, Washington, Rhode Island, Hawaii, and a number of others, including Connecticut, Tennessee, Minnesota, New Hampshire, Wisconsin, and Maryland.
As the health policy statement by the National Governors' Association reads, ``The Governors believe that it is critical that innovative states not be penalized for having expanded coverage to children before the enactment of S-CHIP, which provides enhanced funding to meet these goals. To this end, the Governors support providing additional funding flexibility to states that had already significantly expanded coverage of the majority of uninsured children in their states.
For six years, our group of States have sought to have this inequity addressed. Early this year, I introduced the ``Children's Health Equity of 2003'' with Senators Jeffords, Murray, Leahy, and Ms. Cantwell and we worked successfully to get a compromise worked out for inclusion in S. 312 by Senators Rockefeller, and Chafee. This compromise extended expiring CHIP allotments only for fiscal years 1998 through 2001 in order to meet budgetary caps.
The compromise allowed States to be able to use up to 20 percent of our State's CHIP allotments to pay for Medicaid eligible children about 150 percent of poverty that were part of our State's expansions prior to the enactment of CHIP. That language was maintained in conference and included in H.R. 2854 that was signed by the President as Public Law 108-74. Unfortunately, a slight change was made in the conference language that excluded New Mexico and Hawaii, Maryland, and Rhode Island needed specific changes so an additional bill was passed, H.R. 3288, and signed into law as Public Law 108-107, on November 17, 2003. This second bill included language from legislation that I introduced with Senator Domenici, S. 1547, to address the problem caused to New Mexico by the conference committee's change.
Unfortunately, one major problem with the compromise was that it would allow the 10 States flexibility with its CHIP funds for allotments between 1998 and 2001 and not in the future. Therefore, the inequity continues with CHIP allotments last year, this year, and into the future. This legislation would address that problem and ensure that all future allotments give these 11 States the flexibility to use up to 20 percent of our CHIP allotments to pay for health care services of children above 150 percent of poverty in our respective state Medicaid programs.
This rather technical issue has real and negative consequences in States such as New Mexico. In fact, due to the CHIP inequity, New Mexico has been allocated $266 million from CHIP between fiscal years 1998 and 2002, and yet, has only been able to spend slightly over $26 million as of the end of last fiscal year. In other words, New Mexico has been allowed to spend less than 10 percent of its federal CHIP allocations.
With the passage of H.R. 2854 and H.R. 3288, that situations will improve somewhat. Unfortunately, the change was not made permanent and does not apply to future CHIP allotments. This legislation would correct this problem.
It is important to note that this initiative includes strong maintenance of effort language as well as incentives for our State to conduct outreach and
enrollment efforts and program simplification to find and enroll uninsured kids because we feel strongly that they must receive the health coverage for which they are eligible.
The bill does not take money from other States's CHIP allotments. It simple allows our States to spend our States' specific CHIP allotments from the Federal government on our uninsured children--just as other States across the country are doing.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I rise today to introduce a bill that will help bring about a more reliable system of medical justice for all Americans. Earlier this month, we had a robust debate on a critical…
Mr. President, I rise today to introduce a bill that will help bring about a more reliable system of medical justice for all Americans.
Earlier this month, we had a robust debate on a critical issue-- medical liability reform. Though a majority of the Members of this body wanted to begin working to pass the bill, we didn't have the 60 Senators necessary to begin the real work on the legislation.
I co-sponsored that bill, the Patients First Act, and I still support it. Passing the Patients First Act would be an important short-term step to controlling the excesses in our legal system that have sent medical liability insurance premiums through the roof. Skyrocketing premiums are forcing doctors to move their practices to States with better legal environments and lower insurance premiums. This is endangering the availability of critical healthcare services in many areas of Wyoming and other states.
Throughout our debate, I heard many of my colleagues say that they wanted to work on this issue, but that they simply could not support the bill as it stood. We heard that the bill approaches the issue from too narrow of a perspective. We heard that the bill's caps on non- economic damages are unfair to patients, despite the fact that the bill places no limits whatsoever on a patient's right to recover all quantifiable economic damages.
While I disagree with my colleagues who oppose the Patients First Act, I
respect their opposition. I also trust that they sincerely want to help solve our Nation's medical liability and litigation crisis.
During the debate this month, I noticed something interesting. While we argued the ``pros and cons'' of the bill, no one stood up to defend our current system of medical litigation. Now, we heard a lot about the caps, and the insurance industry, and we heard Senators say that ``Yes, there is a problem, but the bill before us won't solve it.''
One thing we didn't hear was a rousing defense of our medical litigation system. Even some of the lawyers in this body agreed that frivolous lawsuits are a problem and that our medical litigation system needs reform.
Why didn't we hear anyone defend the merits of our current medical litigation system? It's because our system doesn't work. It simply doesn't work for patients or for healthcare providers.
Compensation to patients injured by healthcare errors is neither prompt nor fair. The randomness and delay associated with medical litigation does not contribute to timely, reasonable compensation for most injured patients. Some injured patients get huge jury awards, while many others get nothing at all.
Let's look at the facts. In 1991, a group of researchers published a study in the New England Journal of Medicine. The study, known as the Harvard Medical Practice Study, was the basis for the Institute of Medicine's estimate that nearly 100,000 people die every year from healthcare errors.
As part of their study, the researchers reviewed the medical records of a random sample of more than 31,000 patients in New York State. They matched those records with statewide data on medical malpractice claims. The researchers found that nearly 30 percent of injuries caused by medical negligence resulted in temporary disability, permanent disability or death. However, less than 2 percent of those who were injured by medical negligence filed a claim. These figures suggest that most people who suffer negligent injuries don't receive any compensation.
When a patient does decide to litigate, only a few recover anything. Only one of every ten medical malpractice cases actually goes to trial, and of those cases, plaintiffs win less than one of every five. In addition, patients who file suit and are ultimately successful must wait a long time for their compensation--the average length of a medical malpractice action filed in state court is about 30 months.
While the vast majority of malpractice cases that go to trial are settled before the court hands down a verdict, the settlements even then don't guarantee that patients are compensated fairly, particularly after legal fees are subtracted. Research shows that for every dollar paid in malpractice insurance premiums, about 40 cents in compensation is actually paid to the plaintiff--the rest goes for legal fees, court costs, and other administrative expenditures.
To sum up: most patients injured by negligence don't file claims or receive compensation. Few of those that do file claims and go to court recover anything, and those who are successful wait a long time for their compensation. And those who settle out of court end up receiving only 40 cents for every dollar that healthcare providers pay in liability insurance premiums.
It's hard to say that our medical litigation system does right by patients in light of those facts. Unfortunately, our system doesn't work for healthcare providers either.
Earlier, I spoke about those Harvard researchers who found that fewer than 2 percent of those who were injured by medical negligence even filed a claim. As they reviewed the medical records for their study, the researchers also found another interesting fact--most of the providers against whom claims were eventually filed were not negligent at all.
That's right--most providers who were sued had not committed a negligent act.
In matching the records they reviewed to data on malpractice claims, the Harvard researchers found 47 actual malpractice claims. In only 8 of the 47 claims did they find evidence that medical malpractice had caused an injury. Even more amazingly, the physician reviewers found no evidence of any medical injury, negligent or not, in 26 of the 47 claims. However, 40 percent of these cases where they found no evidence of negligence nonetheless resulted in a payment by the provider. Basically, the researchers found no positive relationship between medical negligence and compensation.
That study was based on 1984 data. The same group of researchers conducted another study in Colorado and Utah in 1992, and they found the same thing. As in the 1984 study, they found that only 3 percent of patients who suffered an injury as a result of negligence actually sued. And again, physician reviewers could not find negligence in most of the cases in which lawsuits were filed.
Now, I assume that the patients who sued had either an adverse medical outcome, or at least an outcome that was less satisfactory than the patient expected. But our medical litigation system is not supposed to compensate patients for adverse outcomes or dissatisfaction--it's supposed to compensate patients who are victims of negligent behavior. It's supposed to be a deterrent to substandard medical care.
It's not fair to doctors and hospitals that they must pay to defend against meritless lawsuits. Nor is it fair that they must face a choice between settling for a small sum, even if they aren't at fault, so that they avoid getting sucked into a whirlpool of our medical litigation system.
It's not hard to understand why physicians and hospitals and their insurers want to stay out of court. When they lose, the decisions are increasingly resulting in mega-awards based on subjective ``non- economic'' damages. The number of awards exceeding $1 million grew by 50 percent between the periods of 1994-1996 and 1999-2000. Today, more than half of all jury awards exceed $1 million.
As a result, when a patient suffers a bad outcome and sues, providers have an incentive to settle the case out of court, even if the provider isn't at fault. But is this how our medical litigation system is supposed to work--as a tool for shaking down our healthcare providers?
Let's face it--our medical litigation system is broken. It doesn't work for patients or providers. Even worse, it replaces the trust in the provider-patient relationship with distrust.
Then, when courts and juries render verdicts with huge awards that bear no relation to the conduct of the defendants, this destabilizes the insurance markets and sends premiums skyrocketing. This forces many physicians to curtail, move or drop their practices, leaving patients without access to necessary medical care. This is a particular problem in states like Wyoming, where we traditionally struggle with recruiting doctors and other healthcare providers.
Perhaps we could live with this flawed system if litigation served to improve quality or safety, but it doesn't. Litigation discourages the exchange of critical information that could be used to improve the quality and safety of patient care. The constant threat of litigation also drives the inefficient, costly and even dangerous practice of ``defensive medicine.''
Yes, indeed, defensive medicine is dangerous. A recent study found that one of every 1200 children who receive a CAT scan may die later in life from radiation-induced cancer. Knowing this puts a physician faced with anxious parents in a difficult situation. Does the doctor use his or her professional judgment and tell the parents of a sick child not to worry, or does the doctor order the CAT scan and subject the child to radiation that is probably unnecessary, just to provide some protection against a possible lawsuit?
We have a medical litigation system in which many patients who are hurt by negligent actions receive no compensation for their loss. Those who do receive compensation end up with about 40 cents of every premium dollar after legal fees and other costs are subtracted. And the likelihood and the outcomes of lawsuits and settlements bear little relation to whether or not a healthcare provider was at fault.
We like to say that justice is blind. With respect to our medical litigation system, I would say that justice is absent and nowhere to be found.
During our debate on the Patients First Act, I said that the current medical liability crisis and the shortcomings of our medical litigation system make it clear that it is time for a major change. I also said that regardless of how we voted, we all should work toward replacing the current medical tort liability scheme with a more reliable and predictable system of medical justice.
Today, I am introducing a bill that would help achieve that goal.
Most of us are familiar with the report on medical errors from the Institute of Medicine, also known as the IOM. Many of us may be less familiar with another report that the IOM published earlier this year. That report is called ``Fostering Rapid Advances in Healthcare: Learning from System Demonstrations.''
Our Secretary of Health and Human Services, Tommy Thompson, challenged the IOM to identify bold ideas that would challenge conventional thinking about some of the most vexing problems facing our healthcare system. In response, an IOM committee developed this report, which identified a set of demonstration projects that committee members felt would break new ground and yield a very high return-on-investment in terms of dollars and health.
Medical liability was one of the areas upon which the IOM committee focused. The IOM suggested that the federal government should support demonstration projects in the states. These demonstrations should be based on ``replacing tort liability with a system of patient-centered and safety-focused non-judicial compensation.''
The bill I am introducing today is in the spirit of this IOM report. This bill, the Reliable Medical Justice Act, would authorize funding for States to create demonstration programs to test alternatives to current medical tort litigation.
The funding to States under this bill would cover planning grants for developing proposals based on the models or other innovative ideas. Funding to States would also include the initial costs of getting the alternatives up and running.
The Reliable Medical Justice Act would require participating states and the Federal Government to collaborate in continuous evaluations of the results of the alternatives as compared to traditional tort litigation. This way, all States and the federal government can learn from new approaches.
By funding demonstration projects, I believe Congress could enable States to experiment with and learn from ideas that could provide long- term solutions to the current medical liability and litigation crisis.
In introducing this bill, I wanted to provide some alternative ideas that would contribute to the debate. As a result, the bill describes three models to which states could look in designing their alternatives.
For instance, a State could provide healthcare providers and organizations with immunity from lawsuits if they make a timely offer to compensate an injured patient for his or her actual net economic loss, plus a payment for pain and suffering if experts deem such a payment to be appropriate. This could give a healthcare provider who makes an honest mistake the chance to make amends financially with a patient, without the provider fearing that their honesty would land them in a lawsuit.
Another idea would be for a state to set up classes of avoidable injuries and a schedule of compensation for them, and then establish an administrative board to resolve claims related to those injuries. A scientifically rigorous process of identifying preventable injuries and setting appropriate compensation would be preferable to the randomness of the current system.
Still another option would be for a state to establish a special healthcare court for adjudicating medical malpractice cases. For this idea to work, the State would need to ensure that the presiding judges have expertise in and an understanding of healthcare, and allow them to make binding rulings on issues like causation compensation, and standards of care.
We already have specialized courts for complicated issues like taxes and highly charged issues like substance abuse and domestic violence. With all the flaws in our current medical litigation system, perhaps we should consider special courts for the complex and emotional issue of medical malpractice.
I believe one thing in our medical liability debate is absolutely clear--people are demanding change. Ten States have passed some liability reform in the past year, and another 17 have debated it. States are heeding this call for change, and Congress should support those efforts.
My own State, Wyoming, had a lively legislative debate on medical liability reform this year, but we have a constitutional amendment that prohibits limits on the amounts that can be recovered through lawsuits. The Wyoming Senate considered a bill to amend our State's constitution to create a commission on healthcare errors. That commission would have had the power to review claims, decide if healthcare negligence had occurred, and determine the compensation for the death or injury according to a schedule or formula provided by law. However, the bill died in a tie vote on the Wyoming Senate floor.
According to one of the sponsors of the bill, Senator Charlie Scott, one of the biggest obstacles to passage was the uncertainty surrounding this new idea. No one had any basis for knowing what a proper schedule or formula for compensation would be. No one knew how much the system might cost, or how much injured patients would recover compared to what they recover now.
Senator Scott wrote me to say that federal support for finding answers to these questions might help the bill's sponsors sufficiently respond to the legitimate concerns of their fellow Wyoming legislators. We should be helping state legislators like Senator Scott develop thoughtful and innovative ideas such as the one he has proposed. That's one of the reasons I am offering this bill.
Clearly, the American people and their elected representatives have identified the need to reform our current medical litigation system. The United States Senate did not vote to proceed to the Patients First Act this month, but no member of this body denied that there is a medical liability crisis, or that Congress needs to act sooner rather than later.
While we continue that debate, we ought to lend a hand to States that are working to change their current medical litigation systems and to develop creative alternatives that could work much better for patients and providers. The States have been policy pioneers in many areas-- workers' compensation, welfare reform, and electricity de-regulation, to name three. Medical litigation should be the next item on the agenda of the laboratories of democracy that are our 50 States.
No one questions the need to restore reliability to our medical justice system. But how do we begin the process? One way is to foster innovation by encouraging States to develop more rational and predictable methods for resolving healthcare injury claims. And that is what the Reliable Medical Justice Act aims to do.
In the long run, we would all be better off with a more reliable system of medical justice than we have today. I know that my fellow Senators recognize this, so I hope my colleagues on both sides of the aisle will work with me on this legislation.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, the U.S. economy is still the greatest economy in the world and our credit markets have helped to make that happen. During the past decade, our credit markets have taken advantage of technology and innovation in order to provide more consumers with more timely credit approvals and with more financing options. Nowhere is there a better example of this than our housing market.
Today, the time it takes to review a mortgage application and approve it has been cut drastically by our financial institutions. Consumers find that they have a wide array of financing options they can choose from to secure the purchase of a home--from fixed-rated loans to variable-rate loans, or even adjustable rate loans. While the wide variety of choices has helped more families to purchase homes in the past decade, even more families could buy homes if they understood how the credit market works.
Although there are many pluses to the expansion of the availability of credit there is also a downside. Individuals may get in over their heads when too much credit is made available to them. In addition, identity theft is a bigger problem than it has been before. Consumers need to educate themselves about the potential problems they might face and how to avoid them. Increasing consumer financial literacy is not just about providing information, however, it is about giving families the proper informational tools so that they can put their financial affairs in order.
Today, my friend and colleague, Senator Stabenow and I are introducing the ``Financial Literacy Community Outreach Act'' to help to bring together all of the federal government's financial literacy programs under one roof.
The Department of Treasury, the Federal Deposit Insurance Corporation, the Federal Trade Commission, the Securities and Exchange Commission, the Department of Housing and Urban Development, and the Department of Labor are just a few of the many federal agencies that have established excellent financial literacy programs and initiatives. These programs cover a wide variety of topics ranging from how to save, spend, and invest to programs that provide guidance on how to prepare for retirement, select a pension plan, or purchase a home. Still others help individuals avoid the threat of identity theft.
Unfortunately, consumers attempting to find financial literacy information from the federal government may find that information scattered throughout the government. Our bill would provide a one-stop- shop where consumers could find the appropriate financial literacy programs for their needs. A single web site and a toll-free number will go a long way toward bringing this vital information to the individuals and families who need it.
In addition, the bill establishes the Financial Literacy Commission, a body comprised of the heads of the federal agencies with financial literacy programs. The Commission will ensure that the federal government has a cohesive and coordinated federal policy on financial literacy as it provides Congress with vital information on what can be improved in our government's financial literacy outreach efforts. In addition to the web site and the toll-free number, the Commission will highlight successful public/private partnerships already existing around the country.
One such partnership is thriving in my home state of Wyoming. The Wyoming Partners in HomeBuyer Education, led by the Wyoming Community Development Authority, includes local banks, real estate agents, the University of Wyoming, the U.S. Department of Agriculture, the U.S. Department of Housing and Urban Development, and Fannie Mae, in the effort to provide distance learning to potential home-buyers through the use of compressed video technology. This training program is perfect for a state like Wyoming in that home-buyers in rural communities have access to all of the essential elements of the home buying experience just like their urban community counterparts.
To date, more than 3,000 individuals have completed the training program and it has led to making the home-buying process easier and more understandable for rural and urban families alike.
I strongly believe that this bill will help millions of families find the appropriate financial literacy materials they need to make better credit and investment decisions.
It is my pleasure to be cosponsoring this bill with Senator Stabenow because of our shared concern about making financial literacy available to more families across the country. In addition, I would like to recognize Senator Sarbanes' tremendous effort to focus our attention on financial literacy, both when he was Chairman of the Committee on Banking, Housing and Urban Affairs last year and as Ranking Member of the Committee this year. He has been an extraordinary advocate for this important issue. Chairman Shelby of the Committee has also recognized the importance of this issue, as just this week, it was the subject of a hearing by the Committee. I look forward to working with my colleagues on the Committee and in the full Senate to ensure that we expand and build upon the government's present financial literacy efforts to help individuals and families increase their knowledge of and access to our credit and investment markets.
Mr. President, every morning, from the time we wake up to the time we turn out the lights and go to sleep, we all spend a good portion of our day in cyberspace. Probably without thinking, each time we head out to the internet, we broadcast some very specific information about our lives as we use our computers for email. Each time we use our cell phones we rely on a sense of privacy about the information we convey, which may not be present. And, when we use hand held devices to send quick messages back and forth to friends, coworkers and family we assume no one else is listening or receiving our information, which often includes social security numbers, family names and even credit card and pin numbers.
Cyberspace is a high tech criminal's dream and it has helped contribute to the fastest growing crime in America--identity theft.
Simply put, identity theft is the ability to impersonate someone else and steal their credit, their money and even their identity for their own use.
Although the use of high-tech devices has certainly contributed to the proliferation of identity theft, many individuals have been victimized by simple criminals who have carefully picked through trash cans and mailboxes to find old receipts and social security numbers. Regardless of the medium through which the information is collected, identity theft is the result of criminals who have learned how to manipulate a growing network of information--some public, some private--and then use that data to their own advantage.
The problem with identity theft is that it is not confined to one state. It affects Americans from every walk of life from coast to coast. Some Americans may discover that someone else has been using their social security number to obtain fraudulent employment, while others learn that people have been using fraudulent identification cards to obtain lines of credit and then leaving innocent victims to deal with the bills they left behind.
People from small States like Wyoming are not immune to this new crime wave. Although there are only 493,000 people in Wyoming, we have the same rate of identity theft per capita as is present anywhere else in the United States. That is why we have to approach this issue from every angle, taking a systemic approach that includes prevention, enforcement and assistance to victims of identity theft.
Today, we will take the first step with victim's assistance for this crime. I believe we have to provide some real options for our constituents who are trying to recover from the trauma that identity theft has caused in their lives. That is why my colleague from Washington and I are introducing legislation that will make it easier for victims to get the information they need to begin reversing the damage and lasting effects of this crime. Our bill, the Identity Theft Victim's Assistance Act of 2003, is very similar to a bill we offered last year that passed the Senate unanimously in November. I expect and hope for the same result this year since this is a growing problem and the need for action on this issue grows more urgent with each passing day.
Our bill includes key provisions that would allow victims to work with businesses to obtain information related to cases of identity theft and then contact credit reporting agencies to block false information on credit reports. In drafting this legislation we worked with all of the stakeholders to ensure a balance between the needs of consumers and the needs of small businesses, banks and other credit agencies.
The reintroduction of this bill is timely given the recent hearings in the Senate Banking and Commerce Committees and recent action by both the House and Administration.
Earlier this month, the House Financial Services Subcommittee reported a bill called the Fair and Accurate Credit Transactions Act. Also known as the FACT Act, the bill includes a provision nearly identical to Section 4 of our bill. Section 4 of our bill requires consumer credit reporting agencies to block information that appears on a victim's credit report as a result of identity theft, provided the victim did not knowingly obtain goods, services or money as a result of the blocked transaction.
Our provision, which amends the Fair Credit Reporting Act, was also addressed in a recent hearing before the Senate Banking Committee. On July 10, the Chairman of the Federal Trade Commission testified that ``blocking would mitigate the harm to consumers' credit record that can result from identity theft'' and recommended that this practice be codified.
I am also encouraged by similar recommendations from the Treasury Department that would require credit reporting agencies to cease reporting allegedly fraudulent account information on consumer reports when the consumer submits a police report or similar document, unless there is a reason to believe the report is false.
Providing consumers with the tools necessary to recover from identity theft is the first step in providing real relief to the hundreds of thousands of individuals whose lives have already been turned upside down by identity theft. I urge my colleagues to work with me as we move forward on this important issue and make progress on the reauthorization of critical legislation like the Fair Credit Reporting Act. We must take action this year before the crime of identity theft hurts the hundreds of thousands of working people and families who are expected to become victims this year.
Mr. President, I rise today with my colleague from Florida, Senator Graham, to introduce a very simple piece of legislation that would revoke President Bush's Executive Order 13233 and put back in…
Mr. President, I rise today with my colleague from Florida, Senator Graham, to introduce a very simple piece of legislation that would revoke President Bush's Executive Order 13233 and put back in force President Reagan's Executive Order 12667-- restoring the American people's access to Presidential papers. This bill is the companion to H.R. 1493, which is sponsored by Representative Doug Ose and has enjoyed bipartisan support in the House.
Twenty-five years ago, this body passed the Presidential Records Act and declared that a President's papers were the property of the people of the United States of America and were to be administered by the National Archives and Records Administration, or NARA. The Act provided that Presidential papers would be made available twelve years after a President left office, allowing the former or incumbent President the right to claim executive privilege for particularly sensitive documents. In order to fulfill that mandate, President Reagan in 1989 signed Executive Order 12667, which gave the former or incumbent President thirty days to claim executive privilege.
However, in 2001, President Bush signed Executive Order 13233, nullifying President Reagan's order and imposing new regulations for obtaining Presidential documents. President Bush's new order greatly restricts access to Presidential papers by forcing all requests for documents, no matter how innocuous, to be approved by both the former President and current White House. In this way the order goes against the letter and the spirit of the Presidential Records Act by requiring the NARA to make a presumption of non-disclosure, thus allowing the White House to prevent the release of records simply by inaction.
The President's order also limits what types of papers are available by expanding the scope of executive privilege into new areas--namely communications between the President and his advisors and legal advice given to the President. Also, former Presidents can now designate third parties to exercise executive privilege on their behalf, meaning that Presidential papers could remain concealed many years after a President's death. These expansions raise some serious constitutional questions and cause unnecessary controversy that could end up congesting our already overburdened courts. My legislation simply seeks to restore a legitimate, streamlined means of carrying out this body's wishes--making Presidential records available for examination by the public and by Congress.
The administration shouldn't fear passage of this bill. Any documents that contain sensitive national security information would remain inaccessible, as would any documents pertaining to law enforcement or the deliberative process of the executive branch. Executive privilege for both former and current Presidents would still apply to any papers the White House designates. With these safeguards in place, there is no reason to further hinder access to documents that are in some cases more than twenty years old.
By not passing this bill, the Congress would greatly limit its own ability to investigate previous administrations, not to mention limit the ability of historians and other interested parties to research the past. Knowledge of the past enriches and informs our understanding of the present, and by limiting our access to these documents we do both ourselves and future generations a great disservice. Numerous historians, journalists, archivists and other scholars have voiced their disapproval of Executive Order 13233 because they understand how important access to Presidential papers can be to accurately describing and learning from past events. We here in the Congress cannot afford to surrender our ability to investigate previous Presidential administrations because doing so would remove a vitally important means of ensuring Presidential accountability.
I believe it is time for these documents to become part of the public record. I believe in open, honest, and accountable government, and I do not believe in keeping secrets from the American people. The Presidential Records Act was one of this country's most vital post- Watergate reforms and it remains vitally important today. In these times when trust in government is slipping more and more every day, we need to send a statement to the American people that we here in Washington don't need to hide from public scrutiny--that instead we welcome and encourage public scrutiny. This bill will send just such a message.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I am introducing today emergency legislation with Senators Landrieu, Lincoln, Kerry, Clinton, Murray, Lautenberg, and Mikulski that would extend a critical Federal-State program that assists low-income Medicare beneficiaries in paying their health premiums costs through the Medicaid program. This specific program, for low-income senior and disabled citizens, was enacted as part of the Balanced Budget Act of 1997 and is slated for expiration at the end of fiscal year 2003. The program was extended and is slated for expiration at the end of fiscal year 2003. The program was extended by the two continuing resolutions and the final appropriations bill through September 30, 2003. This legislation would simply further extend it for another year--through the end of 2004.
This program, known as the Qualifying Individual Program, or QI-1, within Medicaid is a block grant payment to states to pay the Medicare Part B premium of $58.70 per month in 2003 for individuals with monthly incomes between $887 and $997 for individuals and between $1,194 and $1,344 for couples. This covers Medicare beneficiaries with income between 120 and 135 percent of the Federal Poverty Level.
This amounts to a benefit of over $700 annually that many older and disabled Americans depend upon to pay for a portion of their health care costs, such as prescription drugs and supplemental coverage. Well over 120,000 people nationwide currently rely on the QI-1 and will be hard pressed to afford Medicare coverage without this assistance. In short, to prevent the erosion of existing low-income protections, Congress must extend the QI-1 program this year.
This is a bipartisan issue as well. President Bush had included QI-1 reauthorization in his fiscal year 2003 budget. Moreover, an extension has been included in S. 1, the ``Prescription Drug and Medicare Improvement Act of 2003,'' but the conference is certainly not going to be completed, passed by both the House and Senate, and signed into law by the President in time before the need for States to send out notices to beneficiaries alerting them to their forthcoming loss of cost sharing protections at the end of September.
As Ron Pollack, Executive Director at Families, USA notes in his letter of support for this legislation, ``Without an extension, over 120,000 low-income Medicare beneficiaries will have to be sent notices that the program is expiring. The result will be confusion, fear, and uncertainty among this population. This disruption can all be avoided by the quick and early passage of your extension bill.''
At the Federal level, the Congress and Administration are often criticized for failure to understand what are or are not the implications to real people. One hundred and twenty thousand low-income beneficiaries face the prospect of their cost sharing increasing by over $700 per year at the end of September. They cannot be assured that an extension will be passed or done so in a timely fashion. How are they supposed to plan and budget?
When we return in September, we will have just a few legislative days to pass an extension in the Senate, the House, and be signed by the President to stop the process of States having to send out disenrollment letters. We all know this can be very difficult to get through the Congress, as it requires unanimous consent, and may not occur in a timely fashion. If not, States will be forced to send out disenrollment letters to the 120,000 low-income seniors and the disabled that rely on the cost-sharing protections provided by the QI-1 program and begin to shut down their programs.
Again, this is emergency legislation that simply provisions a one- year extension of QI-1 program to prevent the cut-off of cost-sharing protections for 120,000 low-income Medicare beneficiaries. We should be engaging in improving health coverage for low-income elderly and disabled citizens rather than leaving these vulnerable Americans facing fear, uncertainty, disruption, and increasing costs.
I urge immediate passage of this legislation and ask unanimous consent that the text of the bill to be printed in the Record.
Mr. President, last evening, I introduced two bills with Senator Domenici and yet another one today to address a technical, but very important problem that the State of New Mexico and a number of other States, including that of the Majority Leader, have faced with respect to the Children's Health Insurance Program, or CHIP. When CHIP was established by President Clinton and the Congress in 1997, an inequity was built into the program whereby certain states that had been more progressive and had expanded coverage to children through Medicaid prior to the enactment of the bill were penalized.
In the last Congress and again this year, I introduced the ``Children's Health Equity Act of 2003'' to address this problem for a number of States, including New Mexico, Vermont, Washington, and Tennessee. Our states have been unable to fully access Federal CHIP funds because the previous expansion of Medicaid to children was not recognized or ``grandfathered,'' while certain other States such as New York, Florida, and Pennsylvania were explicitly ``grandfathered'' in and their State expansions to children were allowed to be covered with CHIP dollars.
The National Governors' Association has long recognized this inequity and has, in fact, a policy that read, ``The Governors believe that it is critical that innovative states not be penalized for having expanded coverage to children before the enactment of S-CHIP, which provides enhanced funding to meet these goals. To this end, the Governors support providing additional funding flexibility to states that had already significantly expanded coverage to the majority of uninsured children in their states.''
S. 621, the ``Children's Health Equity Act,'' did precisely that and the critical language from our legislation was included in S. 312 by Senators Rockefeller and Chafee, which addressed both expired and expiring CHIP funds and the problem addressed by S. 621. We appreciated their recognition of that issue and supported the passage of that legislation after an extensive set of negotiations and compromises on the language.
For New Mexico, an important issue is that our State expanded coverage up to 185 percent of poverty prior to the enactment of CHIP. Because of this, the children in our State between 100 percent and 185 percent of poverty are ineligible for CHIP. Thus, New Mexico has been allocated $266 million from CHIP between fiscal years 1998 and 2002, and yet has only been able to spend slightly over $26 million as of the end of the last fiscal year. In other words, New Mexico has been allowed to spend less than 10 percent of its Federal CHIP allocations. This, despite the fact our State ranks 2nd in the Nation in the percentage of children who are uninsured.
It is a travesty that money set-aside for New Mexico to address our children's coverage problem is not available to be spent and is thereby redistributed to other States who have far lower uninsured rates and whose children between 100 and 185 percent of poverty are eligible for Federal CHIP dollars. The children in those States are certainly no more worthy of health insurance coverage than the children of New Mexico.
The consequences for the children of New Mexico are enormous. According to the Census Bureau, New Mexico has an estimated 114,000 uninsured children. Put another way, almost 21 percent of all the children in New Mexico are uninsured, despite the fact New Mexico has expanded coverage all the way to 235 percent of poverty. Again, this is the 2nd highest rate of uninsured children in the country.
This is a result of the fact that an estimated 80 percent of the uninsured children in New Mexico are below 200 percent of poverty. These children are often eligible for either Medicaid or CHIP but currently unenrolled. With the exception of those few children between 185 and 200 percent of poverty who are eligible for the enhanced federal CHIP dollars, all of the remaining children below 185 percent of poverty in New Mexico are denied CHIP funding despite their need.
For New Mexico, the Senate language that was in S. 621 and included in S. 312 would have allowed New Mexico to spend up to 20 percent of its Federal CHIP allotments on children enrolled between 150 and 185 percent of poverty. Unfortunately, the House of Representatives chose to modify the Senate language in such a manner through the introduction and passage of H.r. 2854 that New Mexico may no longer be eligible.
The House of Representatives, which did not include language addressing New Mexico's problem in the first place, chose to edit the Senate language that ``grandfathered'' States that had previous expanded coverage ``up to'' 185 percent of poverty and above and replaced it with language that the State had to have expanded coverage to ``at least'' 185 percent of poverty.
This sounds rather technical, but this slight difference may ironically allow all the other states our bill intended to help, who expanded coverage beyond 185 percent of poverty, such as Vermont and Washington, to be ``grandfathered'' but not New Mexico. It is my contention, after reviewing the materials from our State that our State expanded coverage to 185 percent of poverty and operates a full Medicaid benefit at 185 percent of poverty and therefore should qualify as a State to be ``grandfathered.'' Unfortunately, the language change has left the Centers for Medicare and Medicaid Services, or CMS, uncertain of our State's eligibility, as some believe the State has only some up to 185 percent of poverty, or just short of that level, and therefore does not meet the test of ``at least'' 185 percent of poverty.
For six long years, the States of Washington, New Mexico, Vermont, and others have sought to fix the inequity in CHIP. Senator Slade Gorton of Washington had the original legislation to fix this problem and I picked up, modified, and reintroduced that legislation in the last two sessions of Congress. After six long years, to now find that New Mexico may be the only State excluded by the House change and 0.0001 percentage points, is both outrageous and unacceptable.
I contend that the Centers for Medicare and Medicaid Services, or CMS, can still make a determination that New Mexico meets this revised standard under H.R. 2854 and urge them to do so as soon possible.
However, in the meantime, since New Mexico's status is now in question. I introduced two bills last night and another one today with Senator Domenici that all clarify that New Mexico qualifies. The first includes New Mexico as a ``qualified state'' explicitly. This would leave no question at all. The second bill clarifies that a State found to be a partial percentage point below 185 percent of poverty would round up to the nearest number, that being 185 percent of poverty, and be eligible. That would also undoubtedly ensure New Mexico's eligibility. In order to release our hold, I have asked that the bill I introduced changing the percentage that a qualified state must be changed from 185 to
184 percent of poverty be approved by the State in conjunction with H.R. 2854. Unfortunately, our bill will then have to be taken up and passed by the House of Representatives and signed into law by the President.
I have received a letter from Chairman Tauzin, and Ranking Member Dingell of the House Energy and Commerce Committee ensuring the intent of H.R. 2854 is to include New Mexico and provides their commitment that they will ensure any technical problem our State has with the language will be fixed immediately upon return from the August recess. I thank them for their commitment to New Mexico.
Once again, many States are accessing their CHIP allotments to cover kids at poverty levels far below New Mexico's current or past eligibility levels. The children in those states are certainly no more worthy and the children of New Mexico deserve better than they are getting from the Federal Government. I accept the commitment made by the leadership of the Senate Finance Committee and the House Energy and Commerce Committee to fix this problem and therefore urge the passage of both H.R. 2854 and the original legislation that I introduced today.
I ask unanimous consent that the letter I referred to be printed in the Record.
Mr. President, I rise today to introduce legislation that, if enacted, could have a monumental impact on the lives of thousands of working men, women and families in America. Today, along with…
Mr. President, I rise today to introduce legislation that, if enacted, could have a monumental impact on the lives of thousands of working men, women and families in America. Today, along with Senators Enzi, and Sessions, I am pleased to reintroduce the Family Time and Workplace Flexibility Act. The primary purpose of this legislation is to give families and employers greater flexibility in meeting and balancing the demands of work and family.
The demand for family time is evident. Let me give you some of the latest statistics. Seventy percent of employees don't think there is a healthy balance between work and personal life. Seventy percent of employees today say that family is their most important priority. This compares to 54 percent in 2000. Forty six percent of employees either feel overworked, overwhelmed by the quantity of their work, or lack the time to step back and reflect on their work. Sixty one percent of adults say they would give up some of their pay for more time with their family. Employees say that finding time for family is a more pressing concern than layoffs, 32 percent vs 22 percent. This compares to 25 percent in 1999.
In light of the cry of America's workers for more family time, and in honor of today's 10-year anniversary of the Family Medical Leave Act, I am introducing the Family Time and Workplace Flexibility Act, which will build upon the spirit of the FMLA, by updating federal law to allow a more flexible workplace. This legislation is not a total solution: there are many other provisions under the 64-year-old Fair Labor Standards Act that need our attention. But the legislation I am introducing today is an important part of the solution. It gives working families a choice.
The Family Time and Workplace Flexibility Act in a nutshell consists of three main provisions. The first allows employees the option of taking time off in lieu of overtime pay. The second gives employees the option of ``flexing'' their schedules over a two week period. In other words, employees would have 10 ``flexible'' hours that they could work in one week in order to take 10 hours off in the next week. The third provision gives employees the option of a ``flexible credit hour program,'' under which the employer and employee can agree to allow the employee to work excess hours in his schedule in order to accrue hours to be taken off at a later time. The flexible credit hour option is for employees who do not get the opportunity to work overtime, but still want a way to build up hours to take off later.
Flexible work arrangements have been available in the Federal Government since 1978. For over three decades, federal workers have had this special privilege. The federal program was so successful in fact, that in 1994 President Clinton issued an Executive Order extending it to parts of the Federal government that had not yet had the benefits of the program. The President stated that: ``Broad use of flexible arrangements to enable Federal employees to better balance their work and family responsibilities can increase employee effectiveness and job satisfaction while decreasing turnover rates and absenteeism.'' I couldn't agree more.
While Federal employees enjoy the benefits of flexible workplace arrangements, members of the private sector do not have such options. The Family Time and Workplace Flexibility Act corrects this and extends this option to all businesses covered by the Fair Labor Standards Act.
So, who are these workers who are currently covered by the FLSA but do not have the ability to exercise workplace flexibility? They are some of the hardest working Americans. Sixty percent of these workers have only a high school education. Eighty percent of them make less than $28,000. A great percentage of them are single mothers with children. They are working hard to meet their family's economic needs as well as their emotional needs. And while government can't mandate love and nurture, it can get out of the way and eliminate barriers to opportunities for love and nurture. That is what the Family Time and Workplace Flexibility Act does.
In the subsequent weeks and months we will undoubtedly hear from some that what working families really need is more money. They need their overtime pay. That may well be true for some families, and this bill does not affect them in any way. But for other families, for families who want to choose to take time off with pay to attend a child's school play or PTA meeting, the issue is time, not money. The point is this the family should have the right to choose. Washington should not decide for them which priority is important for their family.
I am one who believes in the working men and women of America and in their ability to know what is best for their families. It is time for Congress to give families what they want, and not what Congress thinks they need. It's time to give working families what Federal employees have already--workplace flexibility.
I ask unanimous consent that the text of the legislation, a bill summary, and an article from the Washington Post be printed in the Record.
Mr. President, the Family and Medical Leave Act was intended to be used by families for critical periods such as after the birth or adoption of a child and leave to care for a child, spouse, or one's own ``serious medical condition.''
Since its passage, the Family and Medical Leave Act has had a significant impact on employers' leave practices and policies. According to the Commission on Family and Medical Leave, two-thirds of covered work sites have changed some aspect of their policies in order to comply with the Act.
Unfortunately, the Department of Labor's implementation of certain provisions of the Act has resulted in significant unintended administrative burden and costs on employers; resentment by co-workers when the Act is misapplied; invasions of privacy by requiring employers to ask deeply personal questions about employees and family members when employees plan to take FMLA leave; disruptions to the workplace due to increased unscheduled and unplanned absences; unnecessary record keeping; unworkable notice requirements; and conflicts with existing policies. These problems have been well documented in six separate congressional hearings, including one I chaired and a House hearing where I testified.
Problems with the FMLA implementation have been documented in the courts. The validity of 13 different Department of Labor regulations relating to the Act has been challenged in 64 reported court decisions. Included in this, of course, is the Supreme Court's invalidation of one of the Department's regulations in the 2002 case of Ragsdale v. Wolverine Worldwide Inc. And, yesterday's Washington Post reported that there have been some 1,300 Federal cases dealing with various aspects of the law, according to the Department of Labor.
The Department of Labor's vague and confusing implementing regulations and interpretations have resulted in the FMLA being misapplied, misunderstood and mistakenly ignored. Employers aren't sure if situations like pink eye, ingrown toenails and even the common cold will be considered by the regulators and the courts to be serious health conditions. Because of these concerns and well-documented problems with the Act, today I am introducing the Family and Medical Leave Clarification Act to make reasonable and much needed technical corrections to the Family and Medical Leave Act and restore it to its original congressional intent.
The need for FMLA technical corrections has been confirmed and strengthened by six congressional hearings and by the recent release of key surveys. Conclusive evidence of the need for corrections has now been established. The Congressional hearings demonstrated that the FMLA's definition of serious health condition is vague and overly broad due to the Department of Labor's interpretations. Additionally, the hearings documented that the intermittent leave provisions, notification, and certification problems are causing many serious workplace problems. In addition, some companies testified that Congress should consider allowing employers to permit employees to take either a paid leave package under an existing collective bargaining agreement or the 12 weeks of FMLA protected leave, whichever is greater.
I am concerned that a recent decrease in paid leave for employees has been attributed to the administration's problematic FMLA interpretations. Some research shows a decline in voluntarily provided paid sick leave and vacation leave by the private sector. The 2000 Society for Human Resource Management Benefits Survey found that paid vacation was provided by 87 percent of companies in the year 2000 while the year before it was 94 percent. Paid sick leave was at 85 percent in 1999, and decreased to 74 percent the following year.
A recent survey conducted by former President Clinton's Department of Labor confirmed FMLA implementation problems. The Labor Department report found that the share of covered establishments reporting that it was somewhat or very easy to comply with the FMLA has declined 21.5 percent from 1995 to 2000.
The recent release of the Society for Human Resource Management, SHRM, 2003 FMLA Survey strongly reinforces the need for FMLA technical corrections. Respondents to the SHRM survey stated that, on average, more than half, or 52 percent, of employees who take FMLA leave do not schedule the leave in advance. Consequently, managers often do not have the ability to plan for work disruptions. Yesterday's Washington Post article reported that the biggest thing the Department of Labor hears about is the ``chronic use of unforseen, intermittent leave.'' Respondents to the SHRM survey also reported that, in most cases, the burden of the workload from the employee on leave falls to employees who are not on
leave. When asked whether they have had to grant FMLA requests they felt were not legitimate, 50 percent said they had. Additionally, more than one-third, or 34 percent, of respondents said they were aware of employee complaints over the past year regarding a co-worker's questionable use of FMLA leave.
The issue of intermittent leave also continues to be extremely difficult. SHRM's 2000 FMLA survey showed that three-quarters, or 76 percent, of respondents said they would find compliance easier if the Department of Labor allowed FMLA leave to be offered and tracked in half-day increments rather than by minutes.
I am very concerned that both the SHRM and the Labor Department surveys show that FMLA implementation is becoming more difficult, not easier, ten years after it has been in place. I am hopeful that the Family and Medical Leave Clarification Act will advance in the 108th Congress on a bipartisan basis to address this problem.
The FMLA Clarification Act has the strong support of the Society for Human Resource Management, the U.S. Chamber of Commerce, the National Association of Manufacturers, the American Society of Healthcare Human Resources Professionals, and close to 300 other leading companies and associations that make up the Family and Medical Leave Act Technical Corrections Coalition. This broad-based coalition shares my belief that both employers and employees would benefit from making certain technical corrections to the FMLA, corrections that are needed to restore congressional intent and to reduce administrative and compliance problems experienced by employers who are making a good faith effort to comply with the Act.
The bill I am introducing today does several important things:
First, it repeals the Department of Labor's current regulations for ``serious health condition'' and includes language from the Democrats' own original Committee Report on what types of medical conditions, such as heart attacks, strokes, spinal injuries, etc., were intended to be covered. In passing the FMLA, Congress stated that the term ``serious health condition'' is not intended to cover short-term conditions, for which treatment and recovery are very brief, recognizing that ``it is expected that such condition will fall within the most modest sick leave policies.''
On the other hand, the Department of Labor's current regulations are extremely confusing and expansive, defining the term ``serious health condition'' as including, among other things, any absence of more than 3 days in which the employee sees any health care provider and receives any type of continuing treatment, including a second doctor's visit, or a prescription, or a referral to a physical therapist. Such a broad definition potentially mandates FMLA leave where an employee sees a health care provider once, receives a prescription drug, and is instructed to call the health care provider back if the symptoms do not improve. The regulations also define as a ``serious health condition'' any absence for a chronic health problem, such as arthritis, asthma, diabetes, etc., even if the employee does not see a doctor for that absence and is absent for less than three days.
Second, the bill amends the act's provisions relating to intermittent leave to allow employers to require that intermittent leave be taken in minimum blocks of 4 hours. This would minimize the misuse of FMLA by employees who use FMLA as an excuse for regular tardiness and routine justification for early departures.
Third, the bill shifts to the employee the responsibility to request that leave be designated as FMLA leave, and requires the employee to provide written application within 5 working days of providing notice to the employer for foreseeable leave.
With respect to unforeseeable leave, the bill requires the employee to provide, at a minimum, oral notification of the need for the leave not later than the date the leave commences unless the employee is physically or mentally incapable of providing notice or submitting the application. Under that circumstance the employee is provided such additional time as necessary to provide notice.
Shifting the burden to the employee to request that leave be designated as FMLA leave eliminates the need for the employer to question the employee and pry into the employee's and the employee's family's private matters, as required under current law, and helps eliminate personal liability for employer supervisors who should not be expected to be experts in the vague and complex regulations which even attorneys have a difficult time understanding.
Under current law, it is the employer's responsibility in all circumstances to designate leave, paid or unpaid, as FMLA-qualifying. Failure to do so in a timely manner or to inform an employee that a specific event does not qualify as FMLA leave may result in that unqualified leave becoming qualified leave under FMLA. In addition, the courts have held that there is personal liability for employers under the FMLA and that an individual manager may be sued and held individually liable for acts taken based upon or relating to the FMLA. For example, in the 1995 case of Freemon v. Foley, in the Northern District of Illinois, the court stated, ``We believe the FMLA extends to all those who controlled `in whole or in part' [plaintiff's] ability to take leave of absence and return to her position.''
Fourth, with respect to leave because of the employee's own serious health condition, the bill permits an employer to require the employee to choose between taking unpaid leave provided by the FMLA or paid absence under an employer's collective bargaining agreement or other sick leave, sick pay, or disability plan, program, or policy of the employer. This change provides incentive for employers to continue their generous sick leave policies while providing a disincentive to employers considering getting rid of such employee-friendly plans, including those negotiated by the employer and the employee's union representative. Paid leave would be subject to the employer's normal work rules and procedures for taking such leave, including work rules and procedures dealing with attendance requirements.
The FMLA Clarification Act is a reasonable response to the concerns that have been raised about the Act. It leaves in place the fundamental protections of the law while attempting to make changes necessary to restore FMLA to its original intent and to respond to the very legitimate concerns that have been raised. I urge my colleagues to restore the FMLA to its original Congressional intent.
Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, today I introduce the Library, Bookseller, and Personal Records Privacy Act. This bill would amend the Patriot Act to protect the privacy of law- abiding Americans. It would set…
Mr. President, today I introduce the Library, Bookseller, and Personal Records Privacy Act.
This bill would amend the Patriot Act to protect the privacy of law- abiding Americans. It would set reasonable limits on the Federal Government's access to library, bookseller, medical, and other sensitive, personal information under the Foreign Intelligence Surveillance Act and related foreign intelligence authority.
I am pleased that several of my distinguished colleagues--Senators Bingaman, Kennedy, Cantwell, Durbin, Wyden, Corzine, Akaka, and Jeffords--have joined me as original cosponsors of this important legislation.
I and millions of other patriotic Americans love our country and support our military men and women in their difficult missions abroad, but worry about the fate of our Constitution here at home.
Much of our Nation's strength comes from our constitutional liberties and respect for the rule of law. That is what has kept us free for our two and a quarter century history. Our constitutional freedoms, our American values, are what make our country worth fighting for in the fight against terrorism.
Here at home, there is no question that the FBI needs ample resources and legal authority to prevent future acts of terrorism. But the Patriot Act went too far when it comes to the government's access to personal information about law-abiding Americans.
Even though in the end I opposed the Patriot Act, there were several provisions that I did support. For example, Congress was right to expand the category of business records that the FBI could obtain by subpoena pursuant to the Foreign Intelligence Surveillance Act. Prior to the Patriot Act, the FBI could seek a court order to obtain only travel records--such as airline, hotel, and car rental records--and records maintained by storage facilities. The Patriot Act allows any business records to be subpoenaed. I don't quibble with that change.
But what my colleagues and I do find problematic--and an increasing number of Americans who value their privacy and First Amendment rights agree with us--is that the current law allows the FBI broad, almost unfettered access to personal information about law-abiding Americans who have no connection to terrorism or spying.
Section 215 of the Patriot Act requires the FBI to show in an application to the court for a subpoena that the documents are ``sought for'' an international terrorism or foreign intelligence investigation. There is no requirement that the FBI make a showing of individualized suspicion that the documents relate to a suspected terrorism or spy.
In other words, under current law, the FBI could serve a subpoena on a library for all the borrowing records of its patrons or on a bookseller for the
purchasing records of its customers simply by asserting that they want the records for a terrorism investigation.
During the last year, librarians and booksellers have become increasingly concerned by the potential for abuse of this law. I was pleased to stand with the American Booksellers Association and the Free Expression Network a little over a year ago when we first started to raise these concerns.
Librarians and booksellers are concerned that under the Patriot Act, the FBI could seize records from libraries and booksellers in order to monitor what books Americans have purchased or borrowed, or who has used a library's or bookstore's internet computer stations, even if there is no evidence that the person is a terrorist or spy, or has any connection to a terrorist or spy.
These concerns are so strong, that some librarians across the country have taken the unusual step of destroying records of patrons' book and computer use, as well as posting signs on computer stations warning patrons that whatever they read or access on the internet could be monitored by the Federal Government.
As a librarian in California said, ``We felt strongly that this had to be done. . . . The government has never had this kind of power before. It feels like Big Brother.''
And as the executive director of the American Library Association said, ``This law is dangerous. . . . I read murder mysteries--does that make me a murderer? I read spy stories--does that mean I'm a spy? There's no clear link between a person's intellectual pursuits and their actions.''
The American people do not know how many or what kind of requests federal agents have made for library records under the Patriot Act. The Justice Department refuses to release that information to the public.
But in a survey released by the University of Illinois at Urbana- Champaign, about 550 libraries around the Nation reported having received requests from Federal or local law enforcement during the past year. About half of the libraries said they complied with the law enforcement request, and another half indicated that they had not.
Americans don't know much about these incidents, because the law also contains a provision that prohibits anyone who receives a subpoena from disclosing that fact to anyone.
David Schwartz, president of Harry W. Schwartz Bookshops, the oldest and largest independent bookseller in Milwaukee, summed up well the American values at stake when he said: ``The FBI already has significant subpoena powers to obtain records. There is no need for the government to invade a person's privacy in this way. This is a uniquely un-American tool, and it should be rejected. The books we read are a very private part of our lives. People could stop buying books, and they could be terrified into silence.''
Afraid to read books, terrified into silence. Is that the America we want? Is that the America where we'd like to live? I don't think so. And I hope my colleagues will agree.
It is time to reconsider those provisions of the Patriot Act that are un-American and, frankly, un-patriotic.
Bu my concerns with the Patriot Act go beyond library and bookseller records. Under section 215 of the Patriot Act, the FBI could seek any records maintained by a business. These business records could contain sensitive, personal information--for example, medical records maintained by a doctor or hospital or credit records maintained by a credit agency. All the FBI would have to do is simply assert that the records are ``sought for'' its terrorism or foreign intelligence investigation.
Section 215 of the Patriot Act goes too far. Americans rightfully have a reasonable expectation of privacy in their library, bookstore, medical, financial, or other records containing personal information. Prudent safeguards are need to protect these legitimate privacy interests.
The Library, Bookseller, and Personal Records Privacy Act is a reasonable solution. It would restore a pre-Patriot Act requirement that the FBI make a factual, individualized showing that the records sought pertain to a suspected terrorist or spy.
My bill will not prevent the FBI from doing its job. My bill recognizes that the post-September 11 world is a different world. There are circumstances when the FBI should legitimately have access to library, bookseller, or other personal information.
I would like to take a moment to explain how the safeguard in my bill would be applied. Suppose the FBI is conducting an investigation of an international terrorist organization. It has information that suspected members of the group live in a particular neighborhood. The FBI would like to serve a subpoena on the library in the suspects' neighborhood. Under current law, the FBI could decide to ask the library for all records concerning anyone who has ever borrowed a book or used a computer, and what books were borrowed, simply by asserting that the documents are sought for a terrorism investigation. But under my bill, the FBI could not do so. The FBI would have to set forth specific and articulable facts giving reason to believe that the person to whom the records pertain is a suspected terrorist. The FBI could subpoena only those library records--such as borrowing records or computer sign-in logs--that pertain to the suspected terrorists. The FBI could not obtain library records concerning individuals who are not suspected terrorists.
So, under my bill, the FBI can still obtain documents that it legitimately needs, but my bill would also protect the privacy of law- abiding Americans. I might add, that if, as the Justice Department says, the FBI is using its Patriot Act powers in a responsible manner, does not seek the records of law-abiding Americans, and only seeks the records of suspected terrorists or suspected spies, then there is no reason for the Department to object to my bill.
The second part of my bill would address privacy concerns with another Federal law enforcement power expanded by the Patriot Act--the FBI's national security letter authority, or what is sometimes referred to as ``administrative subpoena'' authority because the FBI does not need court approval to use this power.
My bill would amend section 505 of the Patriot Act. Part of this section relates to the production of records maintained by electronic communications providers. Libraries or bookstores with internet access for customers could be deemed ``electronic communication providers'' and therefore be subject to a request by the FBI under its administrative subpoena authority.
As I mentioned earlier, some librarians are so concerned about the potential for abuse by the FBI that they have taken matters into their own hands before the FBI knocks on their door. Some librarians have begun shredding on a daily basis sign-in logs and other documents relating to the public's use of library computer terminals to access the Internet.
Again, safeguards are needed to ensure that any individual who accesses the internet at a library or bookstore does not automatically give up all expectations of privacy. Like the section 215 I've discussed, my bill would require an individualized showing by the FBI of how the records of internet usage maintained by a library or bookseller pertain to a suspected terrorist or spy.
Yes, the American people want the FBI to be focused on preventing terrorism. And, yes, it may make sense to make some changes to the law to allow the FBI access to the information that it needs to prevent terrorism. But we do not need to change the values that constitute who we are as a nation in order to protect ourselves from terrorism. We can protect both our nation and our privacy and civil liberties.
An increasing number of Americans are beginning to understand that the Patriot Act went too far. Three States and over 130 cities and counties across the country have now passed resolutions expressing opposition to the Patriot Act. And it's not just the Berkeleys and Madisons of the Nation, but other States and communities with strong libertarian values, such as Alaska and cities in Montana, have passed such resolutions.
I have many concerns with the Patriot Act. I am not seeking to repeal it, in whole or in part. My colleagues and I are only seeking to modify two provisions that pose serious potential for abuse.
The privacy of law-abiding Americans is at stake. Congress should act to
protect our privacy. And my bill is a reasonable approach to do just that.
I urge my colleagues to join me and support the Library, Bookseller, and Personal Records Privacy Act.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I am pleased today to offer the Data- Mining Reporting Act of 2003. The untested and controversial intelligence procedure known as data-mining is capable of maintaining extensive files containing both public and private records on each and every American. Almost weekly, we learn about a new data-mining program under development like the newly named Terrorism Information Awareness program. Congress should not be learning the details about these programs after millions of dollars are spent testing and using data- mining against unsuspecting Americans.
Coupled with the expanded domestic surveillance already undertaken by this Administration, the unchecked development of data-mining is a dangerous step that threatens one of the most important values that we are fighting for in the war against terrorism--freedom. My bill would require all Federal agencies to report to Congress within 90 days and every year thereafter on data-mining programs used to find a pattern indicating terrorist or other criminal activity and how these programs implicate the civil liberties and privacy of all Americans. If it was necessary, information in the various reports would even be classified.
The bill does not end funding for any program, determine the rules for use of the technology or threaten any on-going investigation that uses data-mining technology. But, with complete information about the current data-mining plans and practices of the Federal Government, Congress will be able to conduct a thorough review of the costs and benefits of the practice of data-mining on a program by program basis and make considered judgments about which programs should go forward and which should not.
My bill would provide Congress with information about the nature of the technology and the data that will be used. The Data-Mining Reporting Act would require all government agencies to assess the efficacy of the data-mining technology and whether the technology can deliver on the promises of each program. In addition, my bill would make sure that the federal agencies using data-mining technology have considered and developed policies to protect the privacy and due process rights of individuals and ensure that only accurate information is collected and used.
Without Congressional review and oversight, government agencies like the Department of Homeland Security, the Department of Justice and the Department of Defense will be able to collect and analyze a combination of intelligence data and personal information like individuals' traffic violations, credit card purchases, travel records, medical records, communications records, and virtually any information contained in commercial or public databases. Through comprehensive data-mining, everything from people's video rentals or drugstore purchases made with a credit card to their most private health records could be fed into a computer and monitored and reviewed by the Federal Government.
Using massive data mining, the government hopes to be able to detect potential terrorists. There is no evidence, however, that data-mining will, in fact, prevent terrorism. Data-mining programs under development are being used to look into the future before being tested to determine if they would have even been able to anticipate past events, like September 11 or the Oklahoma City bombing. Before we develop the ability to feed personal information about every man, woman and child into a giant computer, we should learn what data-mining can and can't do and what limits and protections are needed.
One must also consider the potential for errors in data-mining for example, credit agencies that have data about John R. Smith on John D. Smith's credit report make the prospect of ensnaring many innocents is real.
Most Americans believe that their private lives should remain private. Data-mining programs run the risk of intruding into the lives of individuals who have nothing to do with terrorism but who trust that their credit reports, shopping habits and doctor visits would not become a part of a gigantic computerized search engine, operating without any controls or oversight.
The Administration should be required to report to Congress about the impact of the various data-mining programs now underway or being studied, and the impact those programs may have on our privacy and civil liberties so that Congress can determine whether the proposed benefits of this practice come at too high a price to our privacy and personal liberties.
I urge my colleagues to support this bill. All it asks for is information to which Congress and the American people are entitled.
I ask unanimous consent that the text of this bill be printed in the Record.
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Mr. President, today I rise, along with Senator Breaux to introduce a bill to establish the Atchafalaya National Heritage Area in Louisiana. This legislation has particularly special meaning to those…
Mr. President, today I rise, along with Senator Breaux to introduce a bill to establish the Atchafalaya National Heritage Area in Louisiana. This legislation has particularly special meaning to those of us from Louisiana because of the importance of the cultural and natural resources of the Atchafalaya region to the Nation.
This legislation, reported by the Energy and Natural Resources Committee and unanimously passed by the full Senate during the 107th Congress, would establish a framework to help protect, conserve, and promote these unique natural, cultural, historical, and recreational resources of the region.
Specifically, the legislation would establish a National Heritage Area in Louisiana that encompasses thirteen parishes in and around the Atchafalaya Basin swamp, America's largest river swamp. The heritage area in south-central Louisiana stretches from Concordia parish to the north, where the Mississippi River begins to partially flow into the Atchafalaya River, all the way to the Gulf of Mexico in the south. The thirteen parishes are: St. Mary, Iberia, St. Martin, St. Landry, Avoyelles, Pointe Coupee, Iberville, Assumption, Terrebonne, Lafayette, West Baton Rouge, Concordia, and East Baton Rouge. This boundary is the same area covered by the existing Atchafalaya Trace State Heritage Area.
This measure will appoint the existing Atchafalaya Trace Commission as the federally recognized ``local coordinating entity.'' The commission is composed of thirteen members with one representative appointed by each parish in the heritage area. Both the Atchafalaya Trace Commission and the Atchafalaya Trace State Heritage Area were created by the Louisiana Legislature a number of years ago. The Atchafalaya Trace State Heritage Area program currently receives some State funding, and already has staff working at the Louisiana Department of Culture, Recreation & Tourism, DCRT, under Lieutenant Governor Kathleen Blanco. State funds were used to create the management plan for the heritage area, which followed ``feasibility analysis'' guidelines as recommended by the National Park Service. Therefore, the recently-completed management plan need only be submitted to the Secretary of the Interior for approval as this legislation would recognize an existing local coordinating entity that will oversee the implementation of this plan. We are very proud that this state heritage area has already completed the complicated planning process, with participation of local National Park Service representatives, while using a standard of planning quality equal to that of existing national heritage areas. All at no cost to the Federal Government.
Please let me also emphasize that this legislation protects existing private property rights. It will not interfere with local land use ordinances or regulations, as it is specifically prohibited from doing so. Nor does this legislation grant any powers of real property acquisition to the local coordinating entity or heritage area program. In addition, the legislation does not impose any environmental rule or process or cause any change in Federal environmental quality standards different from those already in effect.
Heritage areas are based on cooperation and collaboration at all levels. This legislation remains true to the core concept behind heritage areas. The heritage area concept has been used successfully in various parts of our Nation to promote historic preservation, natural and cultural resource protection, heritage tourism and sustainable economic revitalization for both urban and rural areas. Heritage areas provide a flexible framework for government agencies, private organizations and businesses and landowners to work together on a coordinated regional basis. The Atchafalaya National Heritage Area will join the Cane River National Heritage Area to become the second National Heritage Area in Louisiana, ultimately joining the 23 existing National Heritage Areas around the Nation.
The initiative to develop the Atchafalaya National Heritage Area is an outgrowth of a grassroots effort to achieve multiple goals of this region. Most important among these is providing opportunities for the future, while at the same time not losing anything that makes this place so special. Residents from all over the region, local tourism agencies, State agencies such as the DCRT and the Department of Natural Resources, the State legislature, Federal agencies including the National Park Service and U.S. Army Corps of Engineers, parish governments, conservation and preservation groups, local businesses and local landowners have all participated in this endeavor to make it the strong initiative it is today. These groups have been very supportive of the heritage area effort, and as time moves on, the heritage area will continue to involve more and more of the area's most important resource, its people.
I would also like to give you a brief overview of the resources that make this place significant to the entire country. Not only is it important to our Nation's history, but it is also critical to understanding America's future. The name of the place itself, Atchafalaya, comes from the American Indians and means ``long river.'' This name signifies the first settlers of the region, descendants of whom still live there today.
Other words come to mind in describing the Atchafalaya: mysterious, dynamic, multi-cultural, enchanting, bountiful, threatened and undiscovered. This region is one of the most complex and least understood places in Louisiana and the Nation. Yet, the stories of the Atchafalaya Heritage Area are emblematic of the broader American experience. Here there are opportunities to understand and witness the complicated, sometimes harmonious, sometimes adversarial interplay between nature and culture. The history of the United States has been shaped by the complex dance of its people working with, against, and for, nature. Within the Atchafalaya a penchant for adventure, adaptation, ingenuity, and exploitation has created a cultural legacy unlike anywhere else in the world.
The heart of the heritage area is the Atchafalaya Basin. It is the largest river swamp in the United States, larger than the more widely known Everglades or Okefenokee Swamp. The Atchafalaya is characterized by a maze of streams, and at one time was thickly forested with old- growth cypress and tupelo trees. The Basin provides outstanding habitat for a remarkably diverse array of wildlife, including the endangered American bald eagle and Louisiana black bear. The region's unique ecology teems with life. More than 85 species of fish; crustaceans, such as crawfish; wildlife, including alligators; an astonishing array of well over 200 species of birds, from waterfowl to songbirds; forest- dwelling mammals such as deer, squirrel, beaver and other commercially important furbearers all make their home here. Bottomland hardwood- dependent bird species breed here in some of the highest densities ever recorded in annual North American Breeding Bird Surveys. The Basin also forms part of the Mississippi Valley Flyway for migratory waterfowl and is a major wintering ground for thousands of these geese and ducks. In general, the Atchafalaya Basin has a significant proportion of North America's breeding wading birds, such as herons, egrets, ibises, and spoonbills. Some of the largest flocks of Wood Storks in North America summer here, and the southern part of the Basin has a healthy population of Bald Eagles nesting every winter.
The region's dynamic system of waterways, geology, and massive earthen guide levees reveals a landscape that is at once fragile and awesome. The geology and natural systems of the Atchafalaya Heritage Area have fueled the economy of the region for centuries. For decades the harvest of cypress, cotton, sugar cane, crawfish, salt, oil, gas, and Spanish moss, have been important sources of income for the region's residents. The crawfish industry has been particularly important to the lives of Atchafalaya residents and Louisiana has become the largest crawfish producer in the United States. Sport fishing and other forms of commercial fishing are important here, too, but unfortunately, natural resource extraction and a changing environment have drastically depleted many of these resources and forced residents to find new ways to make a living.
Over the past century, the Atchafalaya Basin has become a study of man's monumental effort to control nature. After the catastrophic Mississippi River flood of 1927 left thousands dead and millions displaced, the U.S. Congress decreed that the U.S. Army Corps of Engineers should develop an intricate system of levees to
protect human settlements, particularly New Orleans. Today, the Mississippi River is caged within the walls of earthen and concrete levees and manipulated with a complex system of locks, barrages and floodgates. The Atchafalaya River runs parallel to the Mississippi and through the center of the Basin. In times of flooding the river basin serves as the key floodway in controlling floodwaters headed for the large population centers of Baton Rouge and New Orleans by diverting water from the Mississippi River to the Gulf of Mexico. This system was sorely tested in 1973 when floodwaters threatened to break through the floodgates and permanently divert the Mississippi River into the Atchafalaya. However, after this massive flood event, new land started forming off the coast. These new land formations make up the Atchafalaya Delta, and is the only significant area of new land being built in the United States. These vast amounts of Mississippi River sediment are also rapidly filling in the Basin itself, raising the level of land in certain areas of the basin and filling in lakes and waterways. And to demonstrate just how complex this ecosystem is, one only needs to realize that just to the East of the Delta, Terrebonne parish, also in the heritage area, is experiencing some of the most significant coastal land loss in the country.
Over the centuries, the ever-changing natural environment has shaped the lives of the people living in the Basin. Residents have profited from and been imperiled by nature. The popular cultural identity of the region is strongly associated with the Cajuns, descendants of the French-speaking Acadians who settled in south Louisiana after being deported by the British from Nova Scotia, formerly known as Acadia. Twenty-five hundred to three thousand exiled Acadians repatriated in Louisiana where they proceeded to re-establish their former society. Today, in spite of complex social, cultural, and demographic transformations, Cajuns maintain a sense of group identity and continue to display a distinctive set of cultural expressions nearly two- hundred-and-fifty years after their exile from Acadia. Cajun culture has become increasingly popular outside of Louisiana. Culinary specialties adapted from France and Acadia such as etouffee, boudin, andouille, crepes, beignets and sauces thickened with roux, delight food lovers well beyond Louisiana's borders. Cajun music has also ``gone mainstream'' with its blend of French folk songs and ballads and instrumental dance music, and more recently popular country, rhythm- and-blues, and rock music influences. While the growing interest in Cajun culture has raised appreciation for its unique traditions, many of the region's residents are concerned about the growing commercialization and stereotyping that threatens to diminish the authentic Cajun ways of life.
While the Atchafalaya Heritage Area may be well known for its Cajun culture, there is an astonishing array of other cultures within these parishes. Outside of New Orleans, the Atchafalaya Heritage Area is the most racially and ethnically complex region of Louisiana, and has been so for many years. A long legacy of multiculturalism presents interesting opportunities to examine how so many distinct cultures have survived in relative harmony. There may be interesting lessons to learn from here as our Nation becomes increasingly heterogeneous. The cultural complexity of this region has created a rich tapestry of history and traditions, evidenced by the architecture, music, language, food and festivals unlike any place else. Ethnic groups of the Atchafalaya include: African-Americans, Black Creoles, Asians, Chinese, Filipinos, Vietnamese, Lebanese, Cajuns, Spanish Islenos, Italians, Scotch-Irish, and American Indian tribes such as the Attakapa, Chitimacha, Coushatta, Houma, Opelousa and Tunica-Biloxi.
This heritage area has a wealth of existing cultural, historic, natural, scenic, recreational and visitor resources on which to build. Scenic resources include numerous State Wildlife Management Areas and National Wildlife Refuges, as well as ten designated state scenic byways that fall partially or entirely within the heritage area. The Office of State Parks operates three historic sites in the heritage area, and numerous historic districts and buildings can be found in the region. There are also nine Main Street communities in the heritage area. Outdoor recreational resources include two State Parks and a multitude of waterways and bayous. Hunting, fishing, boating, and canoeing, and more recently birdwatching and cycling, are popular ways to experience the region. Various visitor attractions, interpretive centers and visitor information centers exist to help residents and tourists alike better understand and navigate many of the resources in the heritage area. Major roads link the heritage area's central visitor entrance points and large population centers, especially New Orleans. Much of the hospitality industry servicing the Atchafalaya exists around the larger cities of Baton Rouge, Lafayette and Houma. However, more and more bed and breakfasts and heritage accommodations, such as houseboat rentals, are becoming more numerous in the smaller towns and rural areas.
These are just some of the examples of the richness and significance of this region. This legislation will assist communities throughout this heritage area who are committed to the conservation and appropriate development of these assets. Furthermore, this legislation will bring a level of prestige and national and international recognition that this most special of places certainly deserves.
I ask unanimous consent that the text of this bill be printed in the Record.
Mr. President, I rise today in support of S. 1531, the John Marshall Commemorative Coin Act. This bill authorizes the Treasury Department to mint and issue coins bearing the likeness of Chief Justice…
Mr. President, I rise today in support of S. 1531, the John Marshall Commemorative Coin Act. This bill authorizes the Treasury Department to mint and issue coins bearing the likeness of Chief Justice John Marshall for the purpose of supporting the Supreme Court Historical Society. Sales of the coin would, in addition to raising funds for the Society, also cover all of the costs of minting and issuing these coins, so that the American taxpayer would not bear any cost whatsoever if this legislation were enacted.
Justice Oliver Wendell Holmes once called John Marshall ``the great Chief Justice.'' After 34 years on the bench, from 1801-1835, Marshall earned that title by establishing many of the constitutional doctrines we revere today. Writing over 500 opinions, he truly made the third branch of government co-equal with the legislative and executive branches.
Marshall's greatness lay in his ability to figure out how to put in practice the concept of checks and balances. In powerfully written decisions, the Marshall Court established several constitutional doctrines, forming the bedrock of contemporary jurisprudence including: establishing judicial review, prohibiting State taxation of the Federal Government, making the federal supreme court final arbiter of decisions issued by State supreme courts, and expounding the limits of the contracts and commerce clauses. Indeed, he solidified early Federalist ideas by defining the relationships between the Federal Government and the States; a position that was forgotten and is only very recently re- emerging in our jurisprudence.
Born in 1755, Marshall was a key player in the founding generation who established our constitutional government. He was an early and active member in the revolutionary cause, joining with the revolutionary army and fighting as one of George Washington's Officers in at least four major battles and enduring the winter at Valley Forge. Marshall later served as a member of Congress and as Secretary of State before his ascension to the Supreme Court.
There is a no more fitting likeness for a coin that would support the efforts of the Supreme Court Historical Society. The Society is a non- profit organization whose purpose is to preserve and disseminate the history of the Supreme Court of the United States. Founded by Chief Justice Warren Burger, the Society's mission is to provide information and historical research on our Nations highest court. The Society accomplishes this mission by conducting programs, publishing books, supporting historical research and collecting antiques and artifacts related to the Court's history.
Recent research includes efforts to capture the history of the Court during the Franklin D. Roosevelt period, the Civil War, and the evolution of the Chief Justice's role on the court. Lectures and programs are open to the public as well as Society members. Additionally, the Society seeks to acquire the private papers, period furnishings, and art work relating to court history.
For all of these reasons, I urge my colleagues to join with me in this effort to memorialize the Great Chief Justice John Marshall and assist a worthwhile organization like the Supreme Court Historical Society.
Thank you, Mr. President, I yield the floor.
Mr. President, I rise today to introduce legislation that will help make the American dream a reality for many young people. ``The Development, Relief and Education for Alien Minors Act,'' or ``The DREAM Act,'' resolves immigration status problems that plague undocumented immigrants who came to our country as youths. It also removes barriers to education so that they are better equipped to succeed in our society.
Each year, about fifty thousand young undocumented immigrants graduate from high school in the United States. Most of them came to this country with their parents as small children and have been raised here just like their U.S. citizen classmates. They view themselves as Americans, and are loyal to our country. Some may not even realize that they are here in violation of our immigration laws. They grow up to become honest and hardworking adolescents and young adults, and strive for academic as well as professional excellence.
Many of these youngsters find themselves caught in a catch-22 situation. As illegal immigrants, they cannot work legally. Moreover, they are effectively barred from developing academically beyond high school because of the high cost of pursuing higher education. Private colleges and universities are very expensive, and under current federal law, state institutions cannot grant in-state tuition to illegal immigrants, regardless of how long they have resided in that state. To make matters worse, as illegal immigrants, these young people are ineligible for federal tuition assistance. Moreover, these young people have no independent way of becoming legal residents of the United States.
In short, though these children have built their lives here, they have no possibility of achieving and living the American dream. What a tremendous loss to our society.
One young man who is in this predicament lives in my home State of Utah. His name is Danny Cairo. Danny came to the United States at the age of six with his mother who abandoned him eights years later. Danny had to drop out of school in order to support himself. Fortunately, he met Kevin King, who adopted Danny in 2001. With the help of Mr. King, Danny is presently attending the University of Utah.
This story, however, does not necessarily have a happy ending. Because of the date of the adoption, Danny is unable to derive immigration status from Mr. King. He, therefore, lives in legal limbo and faces the threat of deportation daily. In addition, he may never be able to legally work in the United States.
As Mr. King wrote to me, ``Danny is exactly what our country needs more of. He is a natural born leader with charisma and intelligence and a drive that will take him wherever he wants to go. But this will not be possible if Danny is unable to obtain permanent residency.''
Our laws should not discourage those with bright young minds from seeking higher education. We should instead assist and encourage the many ``Dannys'' who are in the United States and who have the dedication and drive to achieve their worthy goals. I am proud that the DREAM Act provides illegal alien children with options for higher education, as well as the opportunity to earn legal residence in the United States.
First, the DREAM Act repeals the provision of Federal law that prevents States from granting in-State tuition to undocumented aliens, leaving this issue at the discretion of the States. My own State of Utah passed a law that will allow in-State tuition for aliens who have been residents in Utah for at least three years. My States have either passed or are considering the passage of similar legislation.
But the fact of the matter is that cheaper tuition at State schools, no matter how beneficial for these young people, will not solve the larger problem: their illegal immigration status. While I do not advocate granting unchecked amnesty to illegal immigrants, I am, however, in favor of providing children--children who did not make the decision to enter the United States illegally--the opportunity to earn the privilege of remaining here legally. The DREAM Act will do just that. It provides young men and women who immigrated to the United States prior to the age of sixteen, who have lived in this country at least five years, and who are of good moral character a chance to earn their conditional resident status upon acceptance by an institution of higher learning or upon graduation from high school. The DREAM Act allows these special young people to pursue their worthy goals and aspirations.
The bill I am introducing today will extend DREAM Act benefits to a group of people who were excluded from a similar bill negotiated during the 107th Congress. Today's bill removes the age ceiling so that no one will be arbitrarily cut-off from benefits. Moreover, while the version from the last Congress requires high school graduation as a provision for obtaining legal status, the bill I am introducing today contains a provision that allows high school students who have been accepted into an institution of higher learning, but who have not yet graduated from high school, to obtain conditional resident status. This provision enables these high school students to get an earlier start on procuring the necessary funds for financing their education.
Of course, we have to be mindful that the opportunity provided by the DREAM Act is a privilege and not an entitlement. We must make sure that those who reap the benefits of the Act are, in fact, worthy of such benefits. For this reason, the bill I am introducing today tightens certain requirements and eliminates waivers for those
who have serious criminal records that would qualify them for deportation.
In addition, while I always want to encourage educational advancement, I recognize that not everyone's circumstances allow for full-time attendance at a four-year college. For this reason, the DREAM Act provides for certain alternatives like attending community college, trade school, serving in our armed forces, or performing community service.
The purpose of the DREAM Act is to create incentives for out-of- status youngsters to achieve as much as they can in life and to contribute to the greatness of the United States. I recognize that if the bill's requirements are so high that they simply operate as barriers to legalizing status, the bill defeats its own stated purpose. That is why I am committed to ensuring that the requirements imposed by this bill are reasonable and can be met by youngsters who are willing to work hard. The DREAM Act will enable youngsters who have ambition and motivation to obtain permanent legal status.
During the 107th Congress, I introduced a version of the DREAM Act, S. 1291. Since then, it has been replaced in favor of the Durbin/Hatch/ Kennedy/Brownback substitute. The substitute was put on the Senate calendar but did not receive a vote. The House Judiciary Committee debated identical legislation during the last Congress but it was defeated. The House Judiciary Committee has not yet moved similar legislation this Congress. I want to make sure that the DREAM Act we introduce in the 108th Congress will not die in the hopper as it did in the House last year.
By introducing this bill, I know I am subjecting myself to criticism from both sides of the aisle on my immigration policy. Some proponents of strict immigration enforcement argue that the DREAM Act will encourage illegal entry into the United States. However, the DREAM Act was carefully drafted to avoid this precise problem. The Act specifically limits eligibility to those who entered the United States five years or more prior to the bill's enactment. It applies to a limited number of people who already reside in the United States and who have demonstrated favorable equities in and significant ties to the United States. Anyone who entered the United States less than five years prior to the enactment of this bill or who plans to illegally enter the United States in the future will not be covered by the DREAM Act.
On the other hand, proponents for providing general amnesty contend that there shouldn't be any requirements after high school graduation. I agree that for some of these children, graduation from high school is a grand enough accomplishment in itself. My bill recognizes this achievement by providing these graduates with the reward of conditional resident status so that they may work toward permanent status without fear of deportation.
Nonetheless, some critics argue that most immigrant children cannot go to college, nor can they meet the standards set by the current version of the DREAM Act. They cite statistics showing that only a small percentage of illegal immigrant children ever attend college and they argue that this DREAM bill will benefit very few. What these critics overlook, however, is that without the DREAM Act, illegal immigrant children simply do not have the means nor the incentive to obtain a higher education. Since the DREAM Act will remove substantial obstacles to higher education, I am confident that many of the children who are currently illegal U.S. residents will seek higher education.
Some critics also contained that these immigrant children do not have the aptitude to attend community college or trade school and that even joining the military or performing a few hours a week of community service is out of reach for them. To this criticism I stress that this is not only wholly inaccurate, but it is also an elitist attitude to which I cannot subscribe. Immigrant children, whether legal or otherwise, are no less capable than other children. They just need the opportunity to reach their potential.
I also want to point out that everyone who was eligible for benefits under last year's bill will be eligible again this year. In fact, as I explained earlier, those who were left out of last year's bill are included in this year's bill. The only difference is that now, the applicant has to contribute more to American society before transitioning from conditional resident status to permanent resident status.
I believe the DREAM Act will live up to its name. It will allow these illegal immigrant children the opportunity to not only dream of the infinite possibilities that their futures may hold in the United States, but it will also afford them the opportunity to realize their dreams. With the passage of the DREAM Act, the United States stands to benefit enormously. Once these children become legal residents of this Nation, they will prove to be motivated, hard-working, and educated contributors to our society. I am pleased and proud once again to work with Senator Durbin on this important legislation.
Mr. President, I rise today to introduce the ``Small Manufacturers Assistance, and Trade (SMART) Act,'' which responds to the needs of America's small manufacturers. This bill offers a new emphasis…
Mr. President, I rise today to introduce the ``Small Manufacturers Assistance, and Trade (SMART) Act,'' which responds to the needs of America's small manufacturers. This bill offers a new emphasis on programs and services within the Federal Government that will provide small companies a better opportunity to survive in these challenging times and compete in our global economy. The SMART Act introduces new resources, improves existing programs, and expands those programs that work to serve a larger constituency. It is critical that we revitalize our country's manufacturing base and establish an environment for economic growth and job creation.
Small manufacturers constitute over 98 percent of our Nation's manufacturing enterprises, employ 12 million people, and supply more than 50 percent of the value-added U.S. production. It is a sector we cannot afford to ignore. In addition, no industry has witnessed a more profound erosion of jobs.
The damage manufacturing has sustained is nothing short of alarming. Since July 2000, almost 2.8 million U.S. manufacturing jobs have been eliminated. New England alone lost more than 214,000 jobs between June 1993 through June 2003, with 78 percent of those losses, 166,000 jobs, occurring since January of 2001.
In my home State of Maine, we've been shedding jobs at a startling rate over the past decade--and even more so in the past 2 years. Between July 2000 and June 2003 an astounding 17,300 manufacturing jobs were lost.
The bottom line is that we must bolster our manufacturing industry, especially with the current 6.0 percent unemployment rate in the United States. To ensure that the road to recovery is robust, we have a special obligation to provide the investment to allow small companies to grow. In fact, it has been reported that for every dollar of final manufacturing output, an additional $1.26 is created in other industry sectors such as suppliers of raw materials, marketing, and retail industries.
Looking even more broadly, a healthy manufacturing base is essential to the preservation of our Nation's security and its status as a world power. We must end the trend of becoming increasingly dependent upon other countries for the products we use and rely upon. Now is the crucial time for everyone--industry representatives, Congress, the President, Republicans and Democrats alike--to work together toward the common goal of revitalizing this industry.
As the Chair of the Committee on Small Business, I have been focusing considerable attention on the concerns of small business manufacturers and efforts to aid in their recovery. Last month, I held a field hearing on this critical subject in Lewiston, ME. I invited Grant Aldonas, Under Secretary for International Trade of the Commerce Department, and Pamela Olson, Assistant Secretary for Tax Policy of the Treasury Department, to participate and explored with them ways to strengthen and expand this vital industry. Their testimony and comments confirmed that we cannot delay and must act quickly to support our small manufacturing base.
Additionally, I heard from a number of small businesses in the manufacturing industry. Their testimony confirmed the damage sustained by our country's manufacturing sector, and the sense of urgency that we need to act immediately to assist them. The SMART Act is a vital first step toward helping them do what they do best--create jobs.
The bill I introduce today starts by establishing a strong and influential voice for manufacturers within the Federal Government through the creation of an Assistant Secretary for Manufacturing within the U.S. Department of Commerce. The new Assistant Secretary will be responsible for identifying and addressing the concerns of small manufacturers at the highest level of our Federal Government. Senator Voinovich has introduced S. 1326, which similarly creates an Assistant Secretary for Manufacturing. I support that bill and Senator Voinovich's efforts to assisting our country's manufacturers.
To ensure that the government acts on the needs of manufacturers, the SMART Act creates an Interagency Manufacturing Task Force (IMTF). The mission of the IMTF will be to encourage the Federal departments and agencies to coordinate their efforts by identifying and addressing manufacturing concerns collectively. The IMTF will
be chaired by the Commerce Department's new Assistant Secretary for Manufacturing and will be comprised of representatives from the Federal departments and agencies that directly affect this sector of our economy. In addition, the IMTF will be tasked with the duty of submitting an annual report on their findings and recommendations to the President and the Senate and House Small Business Committees.
In conjunction with this government-wide task force, the SMART Act also continues to improve the Federal infrastructure supporting the industry by establishing a Small Business Manufacturing Task Force (SBMTF) within the Small Business Administration (SBA). The SBA has a wide spectrum of programs and services available to small manufacturers. The mission of the new SBMTF will be to refocus the agency's programs and services to ensure that they respond to the particular needs of small manufacturers while still serving all aspects of the small business community.
Adding to the information gained from the Committee's hearing, we have reviewed the SBA's programs and services that are geared specifically toward manufacturing and international trade. I was alarmed to learn, during this hearing, that small manufacturers were unfamiliar with the SBA programs that can assist them. These findings revealed that the SBA needs to realign its efforts specifically to include manufacturers in the delivery of the agency's program and services.
In order to improve existing SBA small business development programs, the agency needs to take its services beyond the traditional small business enterprise. The SMART Act improves the SBA's entrepreneurial development programs and services so that small manufacturers can grow their business operation, expand their facilities, and purchase new equipment--all of which will result in creating jobs throughout the industry and its supply chain.
Partnerships developed between SBA related organizations and non-SBA related entities will be an additional asset for these producers. The SMART Act directs the SBA to develop partnerships with the Manufacturing Extension Partnership (MEP), community economic development organizations, and the agency's resource partners--such as Small Business Development Centers and SCORE--to create new outreach and training programs for small manufacturers and small businesses in the manufacturing supply chain.
The SMART Act requires SCORE, with its long established expertise in counseling, to extend its reach to small manufacturers and exporters through its online counseling services and its community based offices. The Act also directs SCORE to recruit more counselors with manufacturing and international trade expertise and increase its partnerships with manufacturing and exporting related organizations, which will help increase the marketing capabilities of these small producers and exporters.
I have also learned that small and medium sized companies are often hesitant to engage in the export of their product as a way to grow their small business, because they are often fearful of the many unfamiliar intricacies involved in doing business in a foreign market. Small businesses currently account for almost $300 billion of yearly export sales--nearly one-third of total U.S. exports. However, according to an Administration survey through the SBA's Export Trade Assistance Partnership, approximately 30 percent of non-exporting small businesses are interested in exporting their products and services. These businesses hold the potential to be a major source for even more economic activity and job growth.
The SBA is a pivotal resource in delivering financial and business development tools to businesses seeking to export. The SMART Act improves the SBA's international trade and exporting programs to assist small businesses and manufacturers expand into the export market and play an even greater role in the balance of U.S. trade.
The SMART Act also requires the SBA to establish annual goals that are linked to its trade promotion activities, and to develop programs that will help small businesses compete against imports. This objective will be more easily obtained by incrementally increasing the number of SBA representatives at the U.S. Export Assistance Centers (USEACs) over the next 3 years. To ensure that all States have the same services available, the SBA Office of International Trade will have at least one financial specialist dedicated to the international loan programs and providing oversight of trade financing issues.
The SBA's financing programs have helped American small businesses create and retain jobs, even as other sources of financing have become more scarce. This bill provides improvements to the SBA's 7(a), 504, and Surety Bond programs.
From Fiscal Year 1999 through Fiscal Year 2002, the 7(a) loan program helped small businesses create more than 1.3 million new jobs by making $37.7 billion in financing available to more than 182,000 small businesses. This bill increases the maximum size of 7(a) loans for small exporters from $2 million to $2.6 million by increasing the maximum amount guaranteed by the SBA from $1 million to $1.3 million.
During that same period, the 504 loan program provided more than 20,000 new loans to small businesses, allowing those businesses to create or retain almost 450,000 jobs. The SMART Act increases 504 loan sizes in two ways. First, the bill increases the maximum loan size for manufacturing projects by increasing the SBA's maximum guarantee, which is 40 percent of the total loan size, from $1 million to $4 million. Second, for loans to exporters, the bill increases the maximum loan size from $3.25 million to $5 million by increasing the SBA's maximum guarantee from $1.3 million to $2 million.
Finally, the bill clarifies that under the SBA's Surety Bond Guarantee Program, the SBA may guarantee bonds for specific contracts of $2 million or less, even if the total range of affiliated contracts may exceed $2 million.
These SBA financing programs have helped to create millions of jobs in America, and manufacturers and exporters have been an important part of that success. This bill will increase small companies' and exporters' ability to obtain vital capital that will help them compete in a very difficult international environment and enable them to create more jobs for American workers.
I am drawing these provisions from another bill I have authored, the Small Business Administration 50th Anniversary Reauthorization Act of 203 (S. 1375), which the Committee and the Senate unanimously approved earlier this year. While we are waiting for the House of Representatives to pass an SBA reauthorization bill, I believe that given the importance of these financing provisions, they must be included in this bill as well to increase their chance of being signed into law.
Because Federal assistance for small manufacturers should extend beyond the SBA, the SMART Act will also establish a new Assistant United States Trade Representatives for Small Business within the Office of the United States Trade Representatives (USTR). This office will be tasked with focusing on small businesses', including small manufacturers, concerns in trade negotiations and promoting their exports.
There are currently 21 Assistant USTRs covering issues from services to telecommunications to labor. While small businesses face many of the same issues that serve as barriers to trade as many of the largest multinational corporations, they do not have the same resources to overcome these barriers, thus blocking them from reaping the benefits of international trade. In particular, small businesses do not have the resources necessary to settle private trade disputes in a timely and cost effective fashion, meet physical presence requirements in other countries, conform to complex customs procedures, or meet off-set exclusions in government procurement. By establishing a new Assistant U.S. Trade Representative, we will ensure that the views and concerns of small businesses will have an appropriate seat at the negotiating table and help secure the competitiveness of our small exporters abroad.
The Small Manufacturers Assistance, Recovery, and Trade Act answers the call for help that I have heard too often of late from small manufacturers in this country. These improvements to existing resources within the Federal
government will give these companies a better opportunity to survive in these challenging times and compete in the global economy.
This bill is a critical starting point to revitalize our country's manufacturing base and create an environment that allows them to grow and create jobs again. We must help these businesses access the global marketplace through expanded exporting opportunities and assistance. I intend to work with all groups and interested parties that are committed to improving and passing this bill. There are still many needs that face our Nation's manufacturers--and this is just the beginning.
I look forward to working with my colleagues in the Senate to ensure that the provisions of this bill are enacted so that these companies can continue to grow and reach their full potential.
Mr. President, I ask unanimous consent that the text of the bill and a section-by-section analysis be printed in the Record.
Mr. President, as the world's largest economy, I believe the United States must have the fairest, most transparent and efficient financial markets in the world. Our financial services companies must…
Mr. President, as the world's largest economy, I believe the United States must have the fairest, most transparent and efficient financial markets in the world. Our financial services companies must live up to the highest standards of accountability. This is critical to ensure that the United States remains strong, competitive and safe in the global economy. Unfortunately, recent reports of late trading and market timing have brought into question whether mutual fund companies have lived up to the highest standards of accountability. They have also shown that the Bush Administration failed to provide effective oversight and examination of mutual fund companies, while poorly enforcing our securities laws. The inaction of the Bush Administration has dangerously eroded the trust and confidence of the American people in mutual funds and may have allowed mutual fund companies and big investors to engage in fraudulent behavior against individuals and pension funds.
New York and Massachusetts regulators have uncovered a scheme in which some of America's top mutual fund companies let big investors profit illegally at the expense of small investors with so-called ``late trades'' and ``market timing.'' The scam appears to be widespread. Today, roughly half of all American households own mutual funds either directly or through a retirement account or pension fund. It's been reported that as much as one quarter of mutual fund companies may be involved in late trading and market timing and that such schemes may cost investors as much as $5 billion annually.
In a late trade, big investors purchase mutual fund shares after the close of the market but at the closing price, allowing them to take advantage of late-breaking financial news. A mutual fund manager might allow a big investor to buy shares in a technology fund at the 4 p.m. close price after learning at 5 p.m. that a major technology company has reported unexpectedly strong earnings. The investor is almost guaranteed a profit when the market opens the following day and share prices climb. In return for this illegal access, the big investor might pledge to continue to invest in the fund.
Market timing exploits the unique way that mutual funds set their prices. While it is not illegal, most mutual fund companies assure investors that they discourage such practices and that they are working to prevent fund timing. Under a market timing trade, big investors trade in and out of certain mutual funds in order to exploit the inefficient way mutual funds price their shares and ensure a profit.
In 2002, individuals who invested in mutual funds paid approximately $70 billion in advisory and management
fees, an average of more than $700 per investor. There is a significant disparity between the rate of advisory fees charged to mutual fund investors and the rate paid by institutional investors, even though they provide the similar services. Currently, mutual fund managers are under no obligation to negotiate advisory and management fees that are in the best interest of their shareholders. In some instances, mutual fund managers has a financial relationship with the contractor which receives a no-bid contract from the same mutual fund.
In a September 2003 complaint, New York Attorney General Spitzer alleged that Canary Capital Partners, a New Jersey hedge fund, engaged in illegal and unethical trading in mutual funds, such as late trading and market timing. After the New York State complaint, the SEC ordered a preliminary investigation, which found that half of the 88 mutual fund companies and brokerage firms had arrangements to make market- timing trades. These arrangements occurred even though about half of the fund companies have policies specifically barring market timing. Other investigations of mutual fund companies have begun, and it appears as though many mutual fund companies have been involved directly or indirectly in late trading and market-timing schemes.
I am very concerned that the actions of the SEC in response to the State investigations of late trading and market timing have been inadequate and show a bias in favor of mutual fund companies at the expense of small investors.
For example, earlier this year the SEC conducted a four-month investigation of Putnam Investments' record keeping, internal controls, and ability to comply with Federal securities laws. During that review, a Putnam employee informed the SEC that the company had failed to stop improper market-timing trades. Despite the tip, SEC examiners did not identify any problems with market timing in its report on Putnam. The Putnam employee, after being rejected by the SEC, brought the same information to the Massachusetts Secretary of State's office, which began an investigation. Only after the Commonwealth of Massachusetts began an investigation did the SEC begin its own investigation of market timing at Putnam. In October, both the Commonwealth of Massachusetts and the SEC charged Putnam with securities fraud, only months after the SEC gave Putnam a clean bill of health. Only a few weeks later, Putnam reached a partial settlement of the securities fraud charges with the SEC which did not include the Commonwealth of Massachusetts. Under the settlement, Putnam agrees to make restitution only for losses to investors attributable to excessive short-term and market-timing trading by its employees and to make structural reforms. Under the agreement, Putnam neither admitted nor denied wrongdoing and the SEC still has not investigated whether outside investors were engaged in market-timing activities. New York Attorney General Eliot Spitzer said that Putnam's agreement with the SEC does not address crucial issues involving restitution to fund holders, fees and penalties. William Galvin, the Massachusetts Secretary of State said that the agreement clearly demonstrates that the SEC is more interested in protecting the mutual fund industry than the average investor.
These actions by the SEC highlight a fundamental problem in the Bush Administration's hands-off approach to regulating financial markets and the danger it poses to small investors and the national economy.
Compounding this danger and lack of responsible leadership, President Bush has repeatedly nominated individuals to important economic positions notable for their corporate sympathies. The President selected a lobbyist for financial deregulation as the chief regulator of the federal mortgage lender Freddie Mac. His first SEC chairman was an accounting industry who was forced to resign in a storm of public outrage over his lenient treatment of his former business.
Even after the accounting scandals that felled Enron and WorldCom, it was last year's Democratic Senate that pushed to enact an historic corporate reform law and the President who joined the effort only once its passage was all but ensured. It was state attorneys general who exposed dubious conflicts of interest at brokerage houses. And when energy companies gauged ratepayers in the West through questionable trades, the Administration sat on its hands for months.
The message from the White House to the regulatory agencies, in actions if not words, is don't ask and don't tell when it comes to protecting investors and consumers.
Justice demands that we fully prosecute Wall Street insiders that steal from Americans saving for retirement, education or simply a brighter future. And we can only hope to revive our economy if we restore investor confidence in the markets so that capital flows to business growth and job creation.
To stop the erosion of trust in our financial markets and to help restore the American investor's faith in the mutual fund industry, I am introducing the Mutual Fund Investor Protection Act to update federal securities laws to curb late-trading and market-timing abuses and institute new limits on mutual fund fees paid by investors.
The actions by the SEC show that it is incapable of protecting investors from securities fraud by mutual fund companies and will not prosecute this type of fraud to the full extent of the law. Therefore, we must take the day-to-day oversight of mutual funds away from the SEC and develop a new Mutual Fund Oversight Board to provide oversight, examination and enforcement of mutual funds. This new board will be similar to the Public Company Accounting Oversight Board developed in the Sarbanes-Oxley Act. It will be charged with identifying potential problems in the mutual fund industry and ensuring that fund boards are actively addressing these problems--before they spread. It would promulgate guidance regarding current regulatory issues and best practices regarding how to deal with them, and it would examine mutual funds to ensure that they are taking necessary steps to protect shareholders. The Board itself would determine how to provide an adequate and reliable source of funding for its investigations.
I believe that every investor has the right to know how much their mutual fund takes away from their investment to pay for advisory, management, and investment service fees. Under this legislation, each investor will receive in their statement a regular accounting as to what types of fees they are paying to invest in their mutual fund. This will help investors shop around and find the mutual funds that have the lowest fees. Mutual funds will have to respond to the changing marketplace and only charge fees that are absolutely necessary to the management of the fund. Also, this legislation requires mutual fund managers to negotiate fee contracts that are reasonable and in their investors' best interest and to report on any significant or material business or professional relationship with companies that the mutual fund provides contracts. Finally, the bill requires each mutual fund to hire a compliance officer to ensure that the mutual fund complies with all relevant laws and makes sure that they provide any information on scams to the independent mutual fund directors to stop abuse. Taken together, these provisions will help investors by making it much more difficult for mutual funds to charge unreasonable and unnecessary fees.
Today, mutual funds are valued once a day, called the Net Asset Value or NAV, usually at 4 p.m. EST, when the New York market closes. The bill will require that all mutual fund companies receive an order prior to the time the fund sets a share price or NAV for an investor to receive that day's price. This will make it much more difficult for big investors to use brokers to send in trades after the 4 p.m. deadline.
We should include late-trading laws as an offense under the Racketeer Influenced and Corrupt Organization (RICO) provisions of the criminal code. First used to prosecute the Mob, RICO should now be used to stop and punish organized crime on Wall Street. This will help limit mutual fund employees and big investors from attempting to defraud small investors. It will also help investors who lose money due to late- trading schemes to recover treble damages, costs and attorneys' fees.
The SEC recently found that many mutual fund companies and brokerage
firms had arrangements with big investors allowing them to make market- timing trades even though these fund companies have policies specifically barring market timing. My legislation bars mutual fund employees from engaging in market timing trades. It requires each mutual fund prospectus to explicitly disclose market-timing policies and procedures to stop abuse. Then, it increases penalties for mutual funds which do not follow their own policies and procedures to limit abuse.
In order to help stop mutual fund abuse, this legislation increases the penalties and jail time for current securities laws including: defrauding the offer or sale of securities, failing to keep current and appropriate records of brokerage transactions, and not selling or redeeming fund shares at a price based on current Net Asset Value (NAV). These changes will make criminals think twice before committing violations of securities laws. The proceeds of the additional fines collected by this legislation will be put into a fund to assist the victims of their crimes.
Today, individual mutual funds are effectively dominated by their advisers. My legislation strengthens the influence of independent directors on fund boards by requiring that independent directors comprise at least three-quarters of the board. It will also require mutual funds to have an independent chairman with the authority and ability to demand and receive all information from the fund advisory and management companies. This will increase the voice investors have in fund management and limit mutual fund abuses.
By developing a new structure to provide appropriate oversight and enforcement mechanisms to fight abuse in the mutual fund industry, this legislation restores the confidence of investors in mutual funds. Ultimately, investor confidence will increase investment and enhance economic growth. I ask all my colleagues to support this legislation.
Mr. President, I rise today to join Senators Hollings, Collins, Specter, Jeffords and Lautenberg in introducing ``ARRIVE 21,'' the American Railroad Revitalization, Investment, and Enhancement Act of…
Mr. President, I rise today to join Senators Hollings, Collins, Specter, Jeffords and Lautenberg in introducing ``ARRIVE 21,'' the American Railroad Revitalization, Investment, and Enhancement Act of the 21st Century. ARRIVE 21 is a comprehensive proposal that creates a new public/private partnership to fund rail infrastructure development, reauthorizes and improves Amtrak, and enhances Federal and State rail policy and planning efforts.
As our Nation faces a mobility crisis of staggering proportions, with freight movements expected to double and our highways and airways already overburdened with congestion, ARRIVE 21 will give our States a new and powerful tool to unlock the potential of intercity passenger rail, bringing high-speed rail to viable corridors across the country while providing capital funding for freight rail projects that deliver public benefits. Today's passenger and freight railroads are already essential components of our surface transportation system and I believe that greater use of rail offers one of the best opportunities to augment the capacity of our existing transportation network, while benefiting the environment and reducing our dependency on foreign oil.
Historically, railroads have been built, maintained and operated outside of the publicly funded programs that finance our other transportation modes, relying almost exclusively on the private sector to fund their infrastructure. However, today's railroads face restricted access to capital and capacity constraints that limit service quality and expansion, all the while facing ever-growing modal competition financed by federally funded trust funds. If rail is to remain viable or increase its share of the intercity passenger and freight markets--necessary developments if we are to reach other transportation and public policy goals including highway infrastructure preservation, highway and air congestion relief, energy efficiency, environmental stewardship and smart growth development--then the pubic sector, through arm's length voluntary partnerships with private railroads, must play a more active role in financing the development of freight and passenger rail infrastructure, as it has with all other modes.
Today, America's freight railroads carry 16 percent of the nation's freight by tonnage and intercity passenger rail carriers roughly 23 million passenger annually. But, the ability of our passenger and freight rail systems to generate the sufficient investment capital needed to maintain this market share, or expand it to handle the expected increases in passenger and freight traffic over the next 20 years, is limited or in jeopardy. According to the America Association of State Highway and Transportation Officials' (ASSHTO) ``Freight Rail Bottom Line Report,'' the nation's freight railroads will need an additional $2.65 billion of public sector annual capital investment over the next 20 years above and beyond what they can finance themselves just to maintain their current share of the freight tonnage.
Without this additional investment, freight traffic is likely to shift from rail to our highways, resulting in an additional 450 million tons of freight and 15 billion truck VMT (Vehicle Miles Traveled) on our roads and $162 billion in increased shipper costs, $238 billion in increased highway user costs, and approximately $20 billion in direct additional highway infrastructure costs. Alternatively, ASSHTO has concluded that with a public investment of $4 billion annually in freight rail infrastructure over the next 20 years, freight rail's tonnage share would increase 1 percentage point to 17 percent. This shift would thereby relieve our highways of an estimated 600 million tons of freight traffic and 25 billion VMT, while saving shippers $239 billion and highways users $397 billion, and reducing direct highway infrastructure costs by $17 billion.
For intercity passenger rail, ASSHTO similarly concludes that roughly $3 billion in annual public sector investment over the next 20 years is needed to expand intercity passenger rail services and advance the many viable high speed rail corridors that could reduce highway and aviation congestion. The Texas Transportation Institute's ``2003 Urban Mobility Report,'' which looks at transportation mobility in 75 cities of varying sizes, concludes that the average annual transportation delay time per person climbed from ``16 hours in 1982 to 60 hours in 2001'' due to the congestion of our surface system.
High-quality and high-speed intercity passenger service, especially in intercity corridors of 500 miles or less where rail can offer competitive trip times, offers a tremendous opportunity to relieve such congestion by shifting travelers who current drive and fly onto trains. Today, roughly 80 percent off all trips of more than 100 miles are less than 500 miles in length. Successful rail corridors in California, the Pacific Northwest, and in the Northeast have shown that rail can be viable option for travelers in such markets, capturing significant market share and in same cases becoming the dominate mode when frequent and high-quality service
is offered. Where intercity passenger rail is successful, congestion in our airports and on our highways is reduced, smart development is induced, jobs are created and citizens' safety and quality of life are improved.
Theses facts lead to the obvious conclusion that leveraging modest public investment in our rail system will reap benefits to our entire surface transportation system and to our Nation as a whole. In my State of Delaware, we have clearly seen the value that high-quality passenger and freight rail service brings and we have made significant investments to upgrade both Amtrak facilities and infrastructure and enhance freight capacity for the railroads that serve Delaware industries. But despite of all the good reasons to invest in our railroad infrastructure, Delaware and other States are limited in what they can do on there own without the benefit of the financing partnership that our Federal Government provides the State for all other transportation investments. ARRIVE 21 is designed to change that.
ARRIVE 21 will empower our States to make rational investments in our rail system when such investments provide significant pubic benefits. Through the creation of the Rail Infrastructure Finance Corporation (RIFCO) a non-profit, non-Federal, congressionally-chartered corporation that can issue $30 billion in tax-credit bonds over 6 years, States will have a new partner to assist them in undertaking rail capital projects. RIFCO will award, using a portion of the proceeds from the bond issuance, discretionary capital matching grants to States and Amtrak for high-speed rail and intercity passenger rail projects and State formula matching grants for freight capital projects. Prior to issuing grants, a portion of the bond proceeds will be deposited in a secure and continually monitored repayment fund managed by the RIFCO investment trust to retire the debt over the life of the bonds.
Passenger and freight rail projects eligible for funding through RIFCO include planning and environmental review, rail line rehabilitation, upgrades and development, safety and security projects, passenger equipment acquisition, station improvements, and intermodal facilities development. In order to receive grants, States must prepare a State rail plan and provide a 20 percent non-Federal match to RIFCO, thereby replicating the cost sharing relationship our States currently have for investments in other modes.
ARRIVE 21 will promote jobs and economic growth through the rehabilitation and expansion of rail infrastructure, the manufacture and procurement of new rail equipment and the enhancement of mobility and development in and around or cities and towns. Our bill provides a total $42 billion investment in U.S. rail infrastructure and service to expand high-speed passenger rail in congested corridors, strengthen Amtrak, and improve freight mobility. Such investment will revitalize the U.S. rail supply industry and create thousands of jobs. According to U.S. Transportation Secretary Mineta, every $1 billion invested in transportation infrastructure creates roughly 47,500 jobs. That means ARRIVE 21 stands to create roughly 2 million jobs, if enacted.
ARRIVE 21 reauthorizes and reforms Amtrak. Designed to improve upon Amtrak's current congressional and State funding processes, our bill authorizes approximately $1.5 billion annually for 6 years to Amtrak for the basic capital and operating needs required to run and maintain the current system. In addition to these funds, the States and Amtrak can pursue major capital improvements and equipment acquisition through RIFCO, with reductions in Amtrak's capital authorizations for projects funded through RIFCO capital grants. Through this process, the amount needed for annual Amtrak appropriation for capital will be reduced over the life of the reauthorization, as RIFCO begins to finance a growing share of Amtrak's capital needs. As is the case today, operating costs on long distance trains will be covered by Amtrak's annual appropriation, while States will share the costs with Amtrak for operations of short distance corridors.
For such shot distance corridors, ARRIVE 21 infuse fairness into the current system by requiring parity between Amtrak and all States for cost sharing, putting an end to disparate treatment among the States that contract with Amtrak to provide corridor service. Furthermore, it authorizes a study of new methodologies to determine Amtrak routes and services while defining the national passenger rail system based on existing service and high-speed rail corridors. ARRIVE 21 also requires a whole host of new reforms including accounting transparency measures, the establishment of a quarterly grant process for Amtrak through the U.S. Department of Transportation to ensure accountability, and the creation of new service metrics that will improve the monitoring and quantification of Amtrak service performance and quality.
ARRIVE 21 helps to coordinate rail-planning efforts across the U.S. at the national and State level and increases the Federal Railroad Administration's advocacy role in promoting a safe, secure, efficient, environmentally sound rail transportation system nationwide. The bill directs the Federal Government to develop a national rail plan in coordination with State rail plans and creates a rail cooperative research program through the National Academies of Sciences. It also authorizes additional funds for planning of high-speed rail projects through the U.S. Secretary of Transportation and addresses rail safety needs by authorizing funding for emergency passenger safety improvement projects. In light of the security risks facing our railroads, ARRIVE 21 authorizes $515 million in 2004 for rail security threat assessments and grants through the Department of Homeland Security.
In total, ARRIVE 21 provides the needed funding for the more than $5 billion annual shortfall in U.S. rail infrastructure investment cited by AASHTO Bottom Line Report without involving the Highway Trust Fund or sapping funds away from other important transportation priorities. This bill will provide our States and the Nation with a fiscally responsible and innovative opportunity to enhance our entire transportation system. We owe it to the American people to support this bill and move towards the type of high-quality, high-speed intercity passenger rail service that Americans desire and deserve, while meeting the ever-growing demands that trade and our economy are placing on our freight system. I ask my colleagues to join me in supporting ARRIVE 21.
Mr. President, I rise today to introduce the Mexican Agricultural Trade Compliance Act. This bill directs the U.S. Trade Representative to retaliate against Mexico over that country's de facto…
Mr. President, I rise today to introduce the Mexican Agricultural Trade Compliance Act. This bill directs the U.S. Trade Representative to retaliate against Mexico over that country's de facto prohibition on the importation of U.S.-produced high fructose corn syrup.
I introduce this bill reluctantly. For months I have made it clear, through letters, floor statements, a hearing, and a trade roundtable, that if the Mexican Congress did not lift its illegal 20 percent tax on soft drinks containing high fructose corn syrup, I would be forced to consider introducing retaliatory legislation, such as this ``tequila tariff'' which also covers other agricultural products.
We're at the end of our legislative session and there has been no action by the Mexican Congress. So, I'm faced with no alternative but to introduce this bill.
Let me explain how we got to where we are today. Mexico was formerly the largest export market for U.S.-produced high fructose corn syrup. But since 1997, Mexico has engaged in a concerted effort to restrict U.S. imports of this product. Throughout this time, Mexico has consistently violated its NAFTA and WTO commitments.
Let me give you a short history of Mexico's unjustified actions. In February 1997, Mexico initiated an antidumping investigation of U.S. high fructose corn syrup, followed by the imposition of an antidumping order the following year. The United States challenged Mexico's antidumping order under the NAFTA. On two different occasions, NAFTA panels determined that Mexico's actions violated its NAFTA obligations.
The United States also challenged Mexico's antidumping order at the Wortd Trade Organization. On two separate occasions, the Dispute Settlement Body of the WTO held that Mexico's actions violated its international trade commitments.
But Mexico continued to ignore its NAFTA and WTO obligations. In fact, Mexico went one step further and in effect threw gasoline onto the fire. On January 1, 2002, in a transparent attempt to evade the NAFTA and WTO determinations against it, Mexico imposed a 20 percent tax on soft drinks containing high fructose corn syrup. The intent and effect of this tax was to continue Mexico's antidumping order on U.S. produced high fructose corn syrup by other means.
In April 2002, with its tax now in place, and in a continuous event with the imposition of this tax, Mexico lifted its antidumping order on high fructose corn syrup. These actions enabled Mexico to make the disingenuous claim that it had come into compliance with the findings adopted by the NAFTA and the WTO regarding its antidumping order.
The effects of the import restrictions of Mexico's antidumping order continue, with even more egregious results. Because of Mexico's tax, U.S. exports of high fructose corn syrup to Mexico are now at almost zero levels.
This is an extraordinary situation. Mexico lost under the NAFTA, and it lost at the WTO commitments, Mexico responded by imposing a de facto ban on imports of U.S. high fructose corn syrup. Mexico is not only violating its international trade commitments, but also causing significant harm for Iowa's corn farmers. Iowa's producers of high fructose corn syrup are suffering as well. I know of no other U.S. agricultural product that has been shut out of its largest export market for so long.
The United States has worked diligently, and patiently with Mexico on this issue. U.S. Trade Representative Robert Zoellick and Ambassador Allen Johnson, our Chief Agricultural Negotiator, have put in countless hours trying to convince Mexico to come into compliance with its trade obligations regarding high fructose corn syrup. But still, the tax remains in place. My colleagues on both sides of the aisle, and
in both the Senate and the House, have repeatedly contacted Mexican officials reminding them of Mexico's trade commitments with regard to this issue. But still, the tax remains in place.
I too have worked hard, since the beginning, to try to convince Mexico to lift its de facto ban on the sale of U.S.-produced high fructose corn syrup. As I have mentioned, I've written letters to Mexican officials, delivered floor speeches, conducted a Finance Committee hearing, and held an agricultural roundtable, all in an effort to convince Mexico to lift its de facto ban on imports of U.S. high fructose corn syrup. During a hearing of the Finance Committee on September 23, I stated clearly that if the Mexican tax on soft drinks containing high fructose corn syrup was not lifted--and soon--I would be forced to consider introducing retaliatory legislation. But still, the tax remains in place.
So now, at the end of our legislative session, I see no alternative but to introduce the Mexican Agricultural Trade Compliance Act.
The Mexican Agricultural Trade Compliance Act establishes that the Government of Mexico has engaged in a pattern of activity that has continuously denied the rights of U.S. exporters of high fructose corn syrup under existing trade agreements. Further, the denial of these rights is unjustifiable and burdens or restricts U.S. commerce. Therefore, Mexico's actions meet the statutory criteria under section 301 of the Trade Act of 1974 for retaliatory action.
The Mexican Agricultural Trade Compliance Act requires the U.S. Trade Representative to retaliate, pursuant to section 301, against imports from Mexico within 60 days of enactment of the Act. However, the U.S. Trade Representative shall not take such action if he certifies, within 30 days after enactment of the Act, that Mexico has eliminated its tax on soft drinks containing high fructose corn syrup and is according the U.S. high fructose corn syrup industry the benefits of all applicable trade agreements.
I fully hope that prior to the return of the U.S. Senate in January, the Mexican Congress will act rationally and bring Mexico into compliance with its international trade obligations regarding high fructose corn syrup. If it does not, I'll work hard to advance the Mexican Agricultural Trade Compliance Act through the Senate. Given the large number of unjustified barriers imposed by Mexico over the past months against imports of U.S. agricultural products, Mexico has not been earning goodwill with Members of the Senate. I expect that my legislation will receive broad support.
I also intend to work with the U.S. Trade Representative to designate Mexican products upon which retaliatory duties will be imposed. The products on this list will consist first and foremost of Mexican agricultural products that are prospering on account of their access to the U.S. market. These Mexican products will likely include bottled tequila, tomatoes, bell peppers, avocados, limes, asparagus, mangos, papayas, watermelons, honey, pecans, and shrimp and prawns. The total amount of duties imposed on these Mexican products will equal the lost sales being experienced by U.S. producers of high fructose corn syrup on account of Mexico's de facto ban of this product, an amount which-- according to U.S. industry--could be as high as $465 million annually.
Let me conclude by stating that I know that some in Mexico are working constructively to try to resolve this issue. Earlier this month President Fox of Mexico sent to the Mexican Congress a formal request to repeal the tax on high fructose corn syrup. I hope that his request becomes law. I appreciated the offer of Mexico's Secretary of Agriculture, Javier Usabiaga, to speak with me regarding the tax, and I regret that our schedules have not permitted us to meet personally. I also note that U.S. and Mexican private sector representatives have been negotiating over access for U.S. high fructose corn syrup to the Mexican market.
Regardless of these efforts, Mexico's de facto ban on imports of U.S. high fructose corn syrup remains in place. Meanwhile, Iowa's corn growers and Iowa's high fructose corn syrup producers continue to suffer on account of Mexico's NAFTA and WTO illegal actions. Again, I strongly hope that Mexican legislators will remove Mexico's tax on soft drinks containing high fructose corn syrup prior to the return of the U.S. Senate next January. But if this tax is not repealed by January, I have every intention of working to advance this legislation through the Senate.
I'm a strong believer in free trade. I fought hard for passage of the NAFTA. I did so because I know free trade benefits farmers in Iowa and other states. U.S. agriculture certainly benefits from the NAFTA, as does Mexican agriculture. But Mexico has engaged in a blatantly illegal act against U.S. agriculture for too long. Mexico's action is having a particularly negative impact on my State of Iowa. If we are to maintain support for free trade in this country, we must ensure that our trading partners live up to their obligations. If they do not, we must take action. I hope the introduction of this bill sends a strong message to my Mexican counterparts that we are ready and willing to stand up for U.S. agriculture. I sincerely hope that they will do the right thing and repeal their illegal tax on high fructose corn syrup.
I hope they repeal their illegal tax to demonstrate their commitment to living up to the letter and spirit of Mexico's promises under NAFTA and the WTO. I hope they repeal their illegal tax to improve relations between the United States and Mexico and to bring the benefits of free trade to consumers and producers in both countries. And, Mr. President, I hope they repeal their illegal tax so the Mexican Agricultural Trade Compliance act is no longer needed. But, if that's what it takes, then that's what we should do.
Mr. President, today we introduce a bill to fight tax fraud. I am not talking about just moving around a few numbers on a tax return. Today we will begin closing the loop holes that have created millions of gallon and billions of dollars of missing fuel and missing tax dollars. This problem not only robs the U.S. Treasury it also robs the American Taxpayer.
We rely on these tax dollars to fund not only the Highway Trust Fund, which is charged with constructing and maintaining our national transportation system, this also robs money from our Airport Trust Fund.
In light of investigations completed since September 11th, the safety and soundness of maintaining our nation's transportation infrastructure is now more than ever of the utmost importance. These issues are not just tax fraud--not only are we concerned with the tax loss, but where else is this money going--is it being used to fund terrorism? We need to know where all of this fuel is going. What makes us think that if we cannot find the fuel to collect the tax, that we could find the fuel to stop the terrorists acts. A missing barge could hold ninety tanker truck loads of fuel, that's about $500,000 in Federal and State excise taxes left uncollected, its also hundreds of thousands of gallons that we cannot account. That cannot happen, and this bill should help our enforcement officers close the loop holes and collect the tax that builds our highways.
Mr. President, I rise today to re-introduce legislation critical to helping victims of identity theft. This legislation, the Identity Theft Victims Assistance Act, passed the Senate by unanimous…
Mr. President, I rise today to re-introduce legislation critical to helping victims of identity theft. This legislation, the Identity Theft Victims Assistance Act, passed the Senate by unanimous consent in the 107th Congress, and I look forward to its passage again this Congress. Last year, the legislation had strong bipartisan support, as evidenced by the fact that Senator Mike Enzi is cosponsoring it again. The bill has broad support from law enforcement, consumers' groups, and privacy advocates. Last year, the National Center for the Victims of Crime, the Fraternal Order of Police, Consumers Union, Identity Theft Resource Center, U.S. Public Interest Group, Police Executive Forum, Privacy Rights Clearinghouse, and Amazon.com supported the bill. Twenty-two state Attorneys General signed a letter supporting the legislation.
Identity theft is the fastest-growing crime in the country. The Federal Trade Commission found that complaints of identity theft increased 87 percent between 2001 and 2002, and over 161,000 complaints were received by the agency last year. A July 2003 study by Gartner Inc. found that there was a 79 percent increase in identity theft in the past year alone. Identity theft now accounts for 43 percent of consumer fraud complaints and leads the list of consumer frauds. It is an insidious crime because it often occurs without the victim's knowledge, yet leaves scars on their credit records and reputations that can last for years, and cost thousands of dollars to repair.
The Secret Service has estimated that consumers lose $745 million to the problem each year, and this number is clearly growing as the number of identity thefts increases. When a victim realizes that his or her identity was stolen it's just the beginning of their troubles. The FTC estimates that it costs the average victim $1,000 in long-distance phone calls, notary charges, mailing costs and lost wages to get his or her financial life back in order after an identity thief strikes. The Identity Theft Resources Center estimates that average identity theft victims spend 175 hours to clear their records.
But the costs are not confined to consumers--identity theft hits businesses and the economy, too. Identity theft-related losses suffered by MasterCard and Visa jumped from $79.9 million in 1996 to $144.3 million in 2000. One study estimates that by 2006 identity theft will cost the financial institution sector alone $8 billion per year.
To take just one of many examples from my state, Jenni D'Avis of Mill Creek, Washington, had her Social Security number stolen when a thief took her mail and found the number listed on a letter from her community college. The criminal used the number to obtain a state identification card, and in turn used that to get credit. In just 23 days, the thief ran up $100,000 in bad debt--all in Jenni's name. Once she became aware of the problem, she had to become a ``Nancy Drew,'' and track down information. Businesses were reluctant to give her the information she needed to determine the extent of the problem and clear her name and credit record. She is still repairing the damage.
Sadly, Jenni's story is not unique. Victims of identity theft have difficulty restoring their credit and regaining control of their identity, in part, because they have no simple means to show creditors and credit reporting agencies that they are who they say they are. In order to prove fraud, a victim often needs copies of creditors records, such as applications and information, and records from the companies the identity thief did business with. Ironically, victims have difficulty obtaining these business records because the victim's personal identifying information does not match the information on file with the business.
This bill fixes that problem. The Identity Theft Victims Assistance Act creates a standardized national process for a person to establish he or she is a victim of identity theft for purposes of tracing fraudulent credit transactions and obtaining the evidence to repair them. It requires the Federal Trade Commission to make available a simple certificate that, when notarized, provides certainty to businesses and financial institutions that the person is who they claim to be, is a victim of identity theft, and has filed claims with both local law enforcement and the FTC. With this document in hand, the victim can then obtain from businesses the records they need.
The need for a national system is readily apparent, as identity theft is increasingly a crime that crosses state lines. One of the greatest challenges identity theft presents to law enforcement is that a stolen identity is used to create false identities in many different localities in different states. Although identity theft is a federal crime, most often, state and local law enforcement agencies are responsible for investigating and prosecuting the crimes. Yet law enforcement has yet to fully recognize the serious nature of the problem or to develop a coordinated investigative strategy. For example, in the case of Michael Calip of Centralia, Washington, identity thieves not only ran up $60,000 in debts, they also committed crimes using his name--trashing his credit record and creating a criminal record. Michael tracked the thieves to Wyoming, but had difficulty convincing local authorities there to pursue his case.
My bill for the first time also permits a victim to designate the investigating agency, either local or state law enforcement or federal investigators, to act as their agents in obtaining evidence of identity theft. This both eases the burden on the victim and aids police in investigating suspected identity theft rings. In addition it requires the existing Identity Theft Coordinating Committee to consult with state and local law enforcement agencies.
Acquiring the evidence of the fraudulent use of identity currently can be an enormous and time-consuming problem for victims. The Identity Theft Victims Assistance Act makes this job easier by establishing that any business presented with the FTC certificate identifying the person as a victim of identity theft, together with a police report and a government issued photo ID must deliver copies of all the financial records that document the fraud to the victim within 20 days. This is a critically important change from current law because it guarantees that victims will be able to obtain the evidence they need while also providing businesses more certainty that they are not violating someone's privacy or providing sensitive information to the wrong parties. It also provides new liability protections for businesses that make a good faith effort to assist victims of identity theft.
Of course, the greatest harm to consumers victimized by theft of their identity is often a bad credit rating or a poor credit score that results from fraudulent use of the consumer's identity. According to the FTC, it often takes about a year for people to discover someone is using personal information for fraudulent purposes, allowing significant damage to otherwise stellar credit records. Even after a consumer reports to a credit reporting agency that they have been victimized by identity theft, the consumer often can not get the reporting agencies to block reporting of activities that resulted from the identity theft.
My bill again requires that presentation of the FTC certificate, police report and photo identification establish that the person is in fact a victim of identity theft and requires credit-reporting agencies to block information that appears on a victim's credit report as a result of the identity theft. It also changes current law that requires individuals to bring suit against a credit reporting agency within two years from the time the agency commits a violation of laws on fair reporting of credit. This makes little sense, since it may be years before a misrepresentation comes to the attention of a victim of identity theft. The bill requires that the statute of limitations begin ticking from the time when a consumer discovers or has reason to know that a misrepresentation by a credit reporting agency has occurred.
The bill leaves in place state laws that are more stringent and provides that either federal prosecutors or State Attorneys General may enforce this law.
Jenni and Michael's stories illustrate the unique problems victims of identity theft face. Although penalties exist for identity thieves, no remedies are available for their victims. The scope of the problem is made worse because it's too easy for a criminal to steal someone's identity and cause serious harm before the theft is even discovered. And when these criminals cross state lines, it can be even harder for victims to trace the problem and repair the damage. For these reasons, it's imperative that we pass federal legislation for the victims of identity theft.
The government, creditors and credit reporting agencies have a shared responsibility to assist identity theft victims mitigate the harm that results from frauds perpetrated in the victim's name. We need to build up the law enforcement network, already started by the Federal Trade Commission and other federal agencies under the Identity Theft and Assumption Deterrence Act of 1998. We need to further improve law enforcement coordination, particularly between the various local and state jurisdictions combating identity theft and the associated crimes.
We also need to provide better and timelier information to businesses so they can head off fraud before it happens. That is why my bill also expands the jurisdiction of the interagency coordinating committee established under the Internet False Identification Act of 2000. Currently, the coordination committee has the mandate to study and report to Congress on federal investigation and enforcement of identity theft crimes. The Identity Theft Victims Assistance Act broadens the mandate for the coordinating committee to consider state and local enforcement of identity theft law and specifically requires the committee to examine and recommend what assistance the federal government can provide state and local law enforcement agencies to better coordinate in the battle against identity theft.
Mr. President, there is no doubt about the scope of the problem: identity theft is already a major problem, and it's getting worse. We must provide victims with the tools they need to regain control of their lives. The Identity Theft Victims Assistance of 2003 will help victims of identity theft recover their identity and restore their good credit. I look forward to working with my colleagues to promptly enact this bill into law.
I ask unanimous consent that the text of the legislation be printed in the Record.
Mr. President, I am most pleased to be joined by our esteemed colleague, Senator Dodd of Connecticut, to introduce the Aeronautics Research and Development Revitalization Act. This legislation is the…
Mr. President, I am most pleased to be joined by our esteemed colleague, Senator Dodd of Connecticut, to introduce the Aeronautics Research and Development Revitalization Act. This legislation is the foundation for ensuring that the United States remains the preeminent Nation in the design, engineering and production of military and civilian aircraft.
The last 5 years have seen the NASA budget for aeronautics research and development literally cut in half from $1 billion to its current level of $500 million. In making these cuts, the United States has been rendered more vulnerable to foreign competition in the field of aeronautics. The nations of Europe have moved in the exact opposite direction--dramatically increasing such funding in an effort to control the world's aviation market. A recent article in the Wall Street Journal documents the rise of Airbus as the largest producer of civilian aircraft in the world. If forecasts for this year hold true, Airbus will deliver more aircraft than Boeing for the first time. In light of these disturbing developments it is obvious that the U.S. is in grave danger of losing its position as the world leader in aeronautics and aviation.
It is important to note that throughout the history of aeronautics and aviation that this country has been at the forefront of discovery and innovation. It began with the First Flight of the Wright Brothers on December 17, 1903 in Kitty Hawk, NC, followed by the historic flight of Charles Lindbergh from New York to Paris in May of 1927. U.S. companies have led the aviation and aeronautics industry from the propeller era into the jet engine era. The research and innovation of the U.S. has been the primary reason the world enjoys the convenience and safety of air travel today.
Our military has seen the benefits from the progress made in aeronautics research. The significant improvements made from World War I to World War II directly impacted the Allies ability to establish air superiority. The numerous advances made in U.S. aircraft design greatly increased the top speed and altitude of bombers and fighters during crucial years of the war. Since then, our country's aeronautics research has made it the dominant air power in the world, with technologies years in advance of its closest pursuers. As a result of these advancements, U.S. troops are placed in far less harm and more precise strikes against enemy targets can be made while avoiding non- targeted civilians.
Fortunately NASA has recognized the emergence of international competition and the need for the U.S. to re-assert itself as the lead nation in aeronautics research technology and innovation. The recently published ``The NASA Aeronautics Blueprint--Toward a Bold Era of Aviation'' is an excellent report on the problems facing American aviation and aeronautics. It also provides an exciting vision of what can be achieved by investing in aeronautics research and development. However NASA has not provided a program or plan for how to achieve this vision nor funding levels that would be required
to attain the goals laid out in the Blueprint. Thus without a plan or funding, it is unlikely this report would ever be acted upon.
In an effort to tackle the major initiatives of the NASA Blueprint head-on, we are introducing the Aeronautics Research and Development Revitalization Act. The legislation will provide aggressive funding authorizations to provide the NASA aeronautics program with the resources it needs to keep the United States on the cutting edge of all aspects of aeronautics and aviation. Our complacency must change now to prevent further damage to our competitiveness in aviation. The U.S. aviation industry is the largest contributor to the U.S. balance of trade and directly accounts for $343 billion to the U.S. economy and 4.2 million positions to our job market.
First, consider the impact of aviation on our communities. As air travel becomes more commonplace, increased aircraft noise will place a strain on both the citizens and businesses living and operating in the areas surrounding our nation's airports. The effect on property values and quality of life can be enormous, so it will be important to pursue technologies that reduce the level of noise emitted from aircraft. We also must acknowledge the rising emissions levels that are the result of increased air travel as well as the fuel consumption required to meet the growing number of planes in the air. The instability of oil prices and the growing effect of fuel emission on our atmosphere make it necessary to find improvement in fuel efficiency. These environmental factors must be addressed, or the American people will certainly face fewer choices and higher prices. To meet these needs, our legislation provides significant funding to be used for research, much of which will be designated for universities, industrial research facilities and not-for-profit research entities. The impacts of aviation are beginning to negatively impact the lives of many Americans; this initiative will make aircraft more environmentally friendly.
Additionally, strides also need to be made in rotorcraft technology. This legislation authorizes funding for, and tasks NASA with, improving the noise and vibration levels of helicopters, as well as improving the predicted accident rate to make it equivalent to that of fixed-wing aircraft. Helicopters are indispensable for our military and provide great convenience for the civilians. Making them safer and quieter is a worthwhile effort that should be pursued.
The promise of civil supersonic travel has been on the horizon for some time. However it has been difficult to perfect the technology for a civilian supersonic aircraft and the costs associated with such a program are high. The legislation we have introduced would required NASA to develop a road map for achieving the flight of a supersonic civil transport aircraft that can reach a speed of Mach 1.6, travel at least 4,000 nautical miles, and carry one hundred fifty passengers. If these goals can be met over the next twenty years, the U.S. aviation industry will be revolutionized. Achieving such speeds would change business and personal travel as it is known today. To bring this initiative forward, this legislation would authorize $110 million for the next five years. This should provide a good start in the effort to bring civilian air travel into the twenty-first century.
At the core of U.S. aeronautics and aviation superiority are men and women performing the research and development necessary for technological breakthroughs. The U.S. has seen a disturbing decline in the number of aeronautical engineers graduating from its universities. It is important to encourage American students to consider these fields. We need to make sure the best and the brightest are properly trained so they can make their creative ideas and theories a reality. This current trend is a leading reason the U.S. is losing ground in aeronautics research. To combat the dearth of aeronautics engineers, this legislation would authorize NASA to establish a generous scholarship program for those students seeking a Masters Degree in the field of aeronautics.
As air travel becomes more prevalent, it becomes more important that air traffic management and control are operating in the most effective and safe manner. This bill includes a measure that requires the Administrator of NASA to work with the Federal Aviation Association Administrator to develop a national initiative with the objective of defining and developing an air traffic management system designed to meet the national long-term aviation security needs, along with safety, security and capacity needs. These provisions will hopefully result in a new, more streamlined method for directing air traffic around our busiest airports and cities.
The measures and funding authorizations in this legislation are aggressive. However when considering the state of both the aeronautics and aviation industries. I believe it is time to take decisive action to ensure the long-term competitive supremacy of both our military and civilization aviation programs.
The majority of military aircraft technology was developed to some degree by NASA's aeronautics program. To make sure those risking their lives in the service of the country are afforded the best possible equipment in performing their duties, the U.S. government has the responsibility to make the necessary investments in research and development. In recent years we have seen a drastic cuts in the programs designed for this purpose. Technology and innovation are always moving forward, the government needs to expend the resources to keep the U.S. at the forefront of those efforts.
The civilian airline and aeronautics industry has largely been dominated by the United States since its beginning. Recent news reports have shown however that this phenomenon is changing. Countries around the world are making great progress in building larger, more efficient commuter airlines at a cheaper price. This new competition has jeopardized the jobs of thousands of highly trained engineers and works in this country. Keeping pace with the competition and working to maintain the lead over other aircraft providers is essential if we want to keep this important segment of the work force employed. Losing global contracts means job cuts. To turn this trend around we must commit to the research and development that leads to innovation in commercial aviation. Only then will we secure the existing jobs in this country and build the need for more jobs.
To make this legislation law we will have to make some difficult choices and priorities. Current economic conditions dictate that we cannot fund every desirable program. However, even in the face of the circumstances, I feel strongly that we can no longer complacently wait to make the changes outlined in this legislation. Making the United States the unquestioned leader in aeronautics research and development is in the best interest of our military, our civilian airline industry, quality jobs and balance of trade. The aviation industry affects the lives of almost all Americans. For these reasons, we ask our colleagues to carefully review the current condition of U.S. aeronautics and the implications of its continued decline. I am confident they will concur that this legislation is needed now without delay. Our security, competitive position, jobs and future are sitting on the runway needing our fuel for the aeronautics industry to take off into the future.
Mr. President I ask unanimous consent that the text of this bill be printed in the Record.
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Mr. President, I am pleased to join Senators Rockefeller, Chafee and a bipartisan group of my colleagues in introducing a bill to restore funding which was previously allocated to the State…
Mr. President, I am pleased to join Senators Rockefeller, Chafee and a bipartisan group of my colleagues in introducing a bill to restore funding which was previously allocated to the State Children's Health Insurance Program, SCHIP.
Established in 1997 as part of the Balanced Budget Act, SCHIP was developed as a means for states to provide basic health coverage for uninsured children of low income families, who are not eligible for coverage under Medicaid. Through the Fedeal-State matching program, SCHIP has provided coverage for millions of uninsured children. In fiscal year 2001, 4.4 million children were enrolled in SCHIP. Today every State in the country, five territories, and the District of Columbia are using SCHIP to develop innovative programs to expand health coverage to even more children.
In my home State of Arizona, our SCHIP program, KidsCare, was developed to provide low income children with medical, dental, and vision coverage. KidsCare has successfully enrolled almost 50,000 uninsured children and is anticipating reaching 60,000 by fiscal year 2004. When Arizona found that children are more likely to received health care if their parents also have access, and the flexibility of SCHIP enabled Arizona to expand its program. Last October Arizona began covering not just children, but also their parents. Arizona now provides health coverage to almost 8,000 uninsured parents. Although a substantial number of eligible children and parents still need coverage, I believe this relatively young program is nothing short of a success.
Due to Congressional inaction, approximately $2.7 billion of unspent SCHIP funding reverted to the Treasury at the end of last year. The bill we are introducing today would return that money to SCHIP, ensuring that funds are allocated to States that need more funding to continue existing programs, while allowing other States to develop new and innovative programs to help our Nation's children get access to health care.
The number of uninsured Americans reached 41 million in 2001 and continues to rise. However SCHIP is successfully reducing those numbers for one of the most vulnerable populations in our Nation, our children. I hope the Senate will act expeditiously on this important legislation to return the funds that belong in SCHIP and to ensure that we are expanding, not reducing, the number of children covered through this innovative program.
Mr. President, I am pleased to be joined by Senators Hollings, Biden, DeWine, and Cantwell in introducing the Firefighting Research and Coordination Act. This legislation would provide for the establishment of a scientific basis for new firefighting technology standards; improved coordination between Federal, State, and local fire officials in training and response to a terrorist attack or a national emergency; and authorize the National Fire Academy to offer training to improve the ability of firefighters to respond to events such as the tragedy of September 11, 2001. Representatives Camp, Deutsch, Israel, Etheridge, and Weldon are introducing companion legislation. Similar legislation was approved by the Senate Commerce Committee last September.
The purpose of this legislation is to act upon some of the lessons learned from the tragic terrorist attacks, and also address other problems faced by the fire services. On September 11, the New York City firefighters and emergency service personnel acted with great heroism in selflessly rushing to the World Trade Center and saving the lives of many Americans. Tragically, 343 firefighters and EMS technicians paid the ultimate price in the service of their country.
While we strive to prevent any future attack in the United States, it is our duty to ensure that we are adequately prepared to respond to any future catastrophic act of terrorism. In addition,
we must recognize that many of the preparations we make to improve the response to national emergencies also will aid our firefighters for their everyday role in protecting our families and homes.
Today's firefighters use a variety of technologies including thermal imaging equipment, devices for locating firefighters and victims, and state-of-the-art protective suits to fight fires, clean up chemical or hazardous waste spills, and contend with potential terrorist devices. The Federal Government's Firefighter Investment and Response Enhancement, FIRE, program is authorized for $900 million for Fiscal Year 2004 to assist local fire departments in purchasing this high-tech equipment. It is important that the American taxpayers' money is used to buy equipment that will effectively protect our local communities and the responders.
Unfortunately, there are no uniform technical standards for new equipment used in combating fires. Without such standards, local fire companies may purchase equipment that does not satisfy their needs, or even purchase faulty equipment. A January 2003 Consumer Reports article states that much of the emergency equipment sold today is not tested or certified by the government or independent labs. The article states that ``the confusion will get worse, emergency departments say, as new equipment floods the market in response to increased government funding.'' The lives of professional and volunteer emergency personnel, and the citizens they protect, are at risk from untested equipment.
This bill seeks to address the need for new equipment standards by establishing a scientific basis for voluntary consensus standards. It would authorize the U.S. Fire Administrator to work with the National Institute of Standards and Technology, the Inter-Agency Board for Equipment Standardization and Inter-Operability, other federal, state, and local agencies, national voluntary consensus standards development organizations, and other interested parties to establish measurement techniques and testing methodologies for new firefighting equipment. These new techniques and methodologies will act as a scientific basis for the development of voluntary consensus standards. This bill would allow the federal government to work with the private sector in developing the basic uniform performance criteria and technical standards to ensure the effectiveness and compatibility of these new technologies. The bill would authorize $2.2 million in Fiscal Year 2004 for these efforts.
As my colleagues know, many issues regarding coordination surfaced on September 11. Titan Systems Corporation recently issued an after-action report, on behalf of the fire department of Arlington County, VA, which highlighted problems between the coordination of Washington D.C., and Arlington County fire departments. The report cited the confusion caused by a large influx of self-dispatched volunteers, and increased risk faced by the ``bonafide responders.'' These conclusions are consistent with an article by the current U.S. Fire Administrator, R. David Paulison, in the June 1993 issue of Fire Chief magazine, where he described being overwhelmed by the number of uncoordinated volunteer efforts that poured into Florida after Hurricane Andrew. Additionally, many fire officials and the General Accounting Office, GAO, have highlighted the duplicative nature of many Federal programs and the need for better coordination between Federal, State, and local officials.
The bill seeks to address these problems by directing the U.S. Fire Administrator to provide technical assistance and training for state and local fire service officials to establish nationwide and state mutual aid systems for responding to national emergencies. These mutual aid plans would include collection of accurate asset and resource information to ensure that local fire services could work together to deploy equipment and personnel effectively during an emergency. The bill also would direct the U.S. Fire Administrator to report on the need for a strategy for deploying volunteers, including the use of a national credentialing system. This legislation also would authorize the Director of the Federal Emergency Management Agency to update the Federal Response Plan to incorporate plans for responding to terrorist attacks, especially events in urban areas. This update would include fire detection, suppression, and related emergency services.
The bill would improve the training of State and local firefighters. It would authorize the National Fire Academy to offer courses in building collapse rescue; the use of technology in response to fires caused by terrorist attacks and other national emergencies; leadership and strategic skills including integrated management systems operations; deployment of new technology for fighting forest and wild fires; fighting fires at ports; and other courses related to tactics and strategies for responding to terrorist incidents and other fire services' needs.
Finally, this bill would also direct the U.S. Fire Administrator to coordinate the National Fire Academy's training programs with the Attorney General, Secretary of Health and Human Services and other federal agencies to prevent and eliminate the duplication in training programs that has been identified by the GAO.
In 2001, we were caught unprepared and paid a terrible price as a result. While we will never be able to prevent firefighter deaths because of the risks involved, it is our obligation to help ensure that future firefighters are adequately equipped and trained, and are working in coordination to respond to any future national emergencies.
I am pleased to announce that this legislation is supported by the National Volunteer Fire Council; the Congressional Fire Services Institute; the National Fire Protection Association; the International Association of Fire Chiefs; the International Association of Fire Fighters; the International Association of Arson Investigators; International Society of Fire Service Instructors; North American Fire Training Directors and the International Fire Service Training Association. I ask unanimous consent that the letter of endorsement be printed in the Record. I also ask unanimous consent that the text of the bill also be printed in the Record.
Mr. President, I rise today to introduce the American Railroad Revitalization, Investment, and Enhancement Act of the 21st Century, better known as ``ARRIVE-21.'' This legislation is of vital…
Mr. President, I rise today to introduce the American Railroad Revitalization, Investment, and Enhancement Act of the 21st Century, better known as ``ARRIVE-21.'' This legislation is of vital importance to rail transportation because it provides steady, dependable funding for our beleaguered national passenger rail system. It also provides funding for infrastructure investment in the railroad industry as a whole, including freight railroads. And it establishes a financing mechanism to ensure that our rail system benefits from a steady stream of funding, just like our airline industry, our transit systems, and our national highway system.
For the past 30 years, Amtrak has provided us with a valuable public service, even though it was forced year after year to come beg for money from the Congress. And year after year, the Congress gave it just enough money to barely survive another 12 months. Sometimes Congress didn't appropriate even enough money to last 12 months, and Amtrak had to come back and beg for a supplemental appropriation just to remain in business until the end of the fiscal year. Never mind having enough money to grow the railroad; never mind having enough money to run a first-class passenger railroad. And never mind having enough money to keep the infrastructure in a state of good repair. All Amtrak has been able to do for 30 years is stay alive. It's time to give Amtrak the tools and funding it needs to do the job we keep asking it to do.
Last year I introduced the National Defense Rail Act of 2002 which was approved by the Senate Commerce Committee by a vote of 20-3. We have shown that bipartisan support exists for authorizing a strong rail program, however the main obstacle we have faced has been securing funding to live up to the authorized amounts. This legislation attempts to address the lack of a guaranteed revenue stream for passenger rail programs and establishes a framework to address freight needs where there is a clear public benefit.
It's a foregone conclusion that transportation development requires money. We somehow figured this out a long time ago with regard to every other mode of transportation. We federally funded the development of the interstate highway system; we subsidized airport construction; we dredged harbors and channels; and we built locks and dams. And the result of all that investment is that our citizens and our goods can move across the country, from big cities and from small towns, efficiently and relatively cheaply. We have today a national transportation system with many impressive components.
You might even say we have been a little too successful with these modes of transportation because many of them are now strained to capacity in many areas of the country. This situation presents not only an economic dilemma, but also a genuine security risk. The atrocious events of September 11th, and the aftermath that followed, exposed the vulnerability of our society and our economy when transportation choices become limited and our mobility is diminished. Effective transportation security means that, as a Nation, we nurture all transportation options and we do not allow ourselves to be overly dependent on only one or two particular modes. In effect, that's what we have done by favoring highways and aviation, where we have directed the flow of billions of dollars. Ironically, rail passenger service is more environmentally-friendly, more fuel-efficient, and more capable of mitigating the impacts of population congestion to help foster regional economic growth than any of the other modes. But in the process of shoring up those other transportation modes for all those years, we lost our focus on passenger rail and we sadly neglected investing in its development.
For passenger rail to be successful, its infrastructure must be developed through the kind of bold Federal leadership we exercised for our other modes of transportation. That's why my colleagues and I are pleased to introduce this landmark piece of legislation designed to change the way we think
about financing passenger rail service and designed to grow our passenger rail system into the world-class system it should be. The bill creates Federal/State and public/private partnerships to promote infrastructure development for both freight and passenger rail. It provides $20-$25 billion in grants over six years to States and State compacts for rail capital projects to provide for a safe, secure, and efficient rail transportation system. It enhances Federal and State rail transportation policy, and it promotes intermodal transportation investment.
ARRIVE-21 creates a non-profit Rail Infrastructure Finance Corporation (RIFCO) to issue $30 billion in tax-credit bonds over six years for the purpose of providing grants to States for capital investment in freight and passenger rail infrastructure and facilities. RIFCO will establish a trust account made up of bond proceeds and contributions from States that receive RIFCO grants. Bond proceeds and State contributions in excess of the amount required to maintain the trust account will then be available for grants to the States through a competitive process.
Although my first choice would be to fully fund the needs authorized in this legislation by straight federal spending, it has become clear that over the last thirty years that there is no pot of gold at the end of the rainbow when it comes to Amtrak. There is not enough money in the scant pot available for discretionary spending on transportation programs. We have established dedicated trust funds for the airlines with their ticket taxes, and we have the trust fund for the highways and transit programs which are funded through the gas tax, but when it comes to passenger railroads, there is no such revenue stream. The establishment of RIFCO was not my first choice to finance the publicly needed improvements of the railroad system, but it is an option for the Congress to debate and consider as we attempt to address what we need the rail system to do for this country.
RIFCO is set up to assist the States fund both passenger and freight projects that benefit the public on a State, regional or national basis. State or State compacts may apply for RIFCO funds for discretionary and formula funds for capital projects in four categories: State Intercity Passenger Rail Corridor Development, including equipment, stations, and facilities. State Freight Rail Infrastructure Development Projects, including capital projects that primarily benefit freight rail transportation. States may use a percentage of these formula funds to manage State rail programs. National System Improvement Projects, including projects that significantly benefit the national passenger rail system, Amtrak- sponsored projects and Northeast Corridor projects. High Priority Projects, including projects with major public policy benefits to the national rail system or significantly expand rail intermodal capacity in connection with maritime, aviation, and highway facilities.
Eligible capital projects would include new rail line development, planning and environmental reviews, track upgrades and restoration, highway-rail grade crossing improvements and eliminations, relocation of track, infrastructure and facilities, construction of intermodal facilities and passenger rail stations, tunnel and bridge repairs, communication and signaling improvements, environmental impact mitigation, acquisition of passenger rail equipment, and security improvements. Projects to receive discretionary funding would be selected by RIFCO according to selection criteria contained in the bill. The projects would require a 20 percent non-Federal contribution paid to RIFCO for bond repayment.
ARRIVE-21 also directs the Federal Railroad Administration to develop a National Rail Plan and to work with States in developing State rail plans, so that we have a comprehensive and coordinated long-range plan for rail development for the whole country. The bill also directs the Office of Intermodalism in the Department of Transportation to create a ``50-Year Blueprint'' for the development of a national intermodal transportation system and provide a vision of emerging trends and opportunities for the future of passenger and freight rail transportation.
Before I close, I would be remiss if I did not recognize the work of Nancy Lummens Lewis, a detailee from the Federal Railroad Administration, who has worked on the Commerce Committee since January. We have appreciated her professionalism, competency, and her willingness to work and share her time with us. I thank Nancy for her time spent on this bill, as well as her efforts on the reauthorization of the Transportation Equity Act of the 21st Century, The Federal Railroad Safety Improvement Act, and The Surface Transportation Board Act of 2003. We wish her well in her future endeavors.
ARRIVE-21 presents a smart and efficient solution to a very important transportation dilemma. I am joined by several of my colleagues, including Senators Collins, Specter, Carper and Jeffords, in introducing this bipartisan legislation. As we have passed legislation this week providing approximately $15 billion annually for aviation for the next 4 years, and plan to take up a highway bill next year which will spend $40 to $60 billion annually on highways and transit over six years, we must not leave rail out. It is critical that the Senate take this bill up, and pass it, to ensure that our railroad transportation system, especially our passenger rail system, can grow and develop to meet our current and future transportation needs.
Attached is an amendment that the sponsors of ARRIVE-21 intend to offer during floor consideration of the bill. I ask unanimous consent that the amendment and the text of the bill be printed in the Record.
Mr. President, I rise along with my colleague from Connecticut, Senator Dodd, to introduce the Mutual Fund Investor Confidence Restoration Act of 2003, a bill that would improve the oversight of the…
Mr. President, I rise along with my colleague from Connecticut, Senator Dodd, to introduce the Mutual Fund Investor Confidence Restoration Act of 2003, a bill that would improve the oversight of the mutual fund industry, enhance fund governance, and protect the millions of Americans who invest in these funds.
Mutual funds are the primary means for investors to participate in the market. Approximately 95 million Americans invest in mutual funds, and investments total near $7 trillion dollars. The industry, one of our oldest and most-revered, is entrusted by those shareholders with their dreams of a comfortable retirement, the ability to pay their children's college tuition, buy a first home or pursue other life-long dreams.
It's not a stretch to say that in many ways the mutual fund industry has been the standard bearer for ethical behavior, strong oversight and governance committed to investor protection in our capital markets. Few, if anyone, would dare to have suggested that our mutual fund industry could become fertile ground for the types of `infectious greed' we witnessed during the governance and accounting scandals a few years ago.
But that is just what has happened.
Today, the mutual fund industry faces its own litany of scandals centered on allegations of investor fraud,
flawed corporate governance, financial conflicts of interest and outright investor abuse. Names like Putnam and Canary Capital have become synonymous with Enron, Tyco and WorldCom in terms of the financial harm inflicted upon investors, undermining their confidence and trust in America's financial markets.
The vast majority of those who work in this industry are decent, hard-working individuals who make a significant contribution to the betterment of our nation.
Unfortunately, there are also far too many associated with this profession--including some investment advisors, fund board members, and those in fund company management--who are all too willing to disregard their fiduciary obligation to shareholders in order to pursue their own personal self-enrichment.
Investors should not perceive that the deck is stacked against them. They should not think that there are different rules--one that applies to them and a different and considerably less stringent set that applies to wealthy industry insiders.
The legislation we are introducing today, The Mutual Fund Investor Confidence Restoration Act will make sure that the playing field stays level.
This bill has five primary themes: improving mutual fund governance; enhancing cost, fee and other important disclosures to shareholders; preventing abusive mutual fund practices such as late trading and market timing; strengthening mutual fund industry oversight; and promoting fund shareholder literacy.
Let me give a more detailed summation of what this legislation would do and why it is so important.
Boards of directors for mutual funds have been criticized recently for the high number of directorships that members hold, the lack of board independence from fund management and the failure of several to fulfill their fiduciary responsibility to shareholders. This legislation would strengthen fund governance by establishing truly independent mutual fund boards, chairmen, nominating committees and independent audit committees that conform to Sarbanes-Oxley Act requirements for those at publicly traded companies.
The bill would also improve fund governance by requiring Sarbanes- Oxley-like ``certification'' from Board Chairmen and newly-designated Chief Compliance Officers that shareholders safeguards are in place within the fund.
Also, it would ensure that accurate disclosures to shareholders, including cost and fee information, are contained in the prospectus.
The legislation includes other `certifiable' requirements for board chairmen and chief compliance officers, including disclosures that internal controls, a code of ethics and personnel designated to ensuring adherence to stated polices and compliance with relevant securities laws, including measures preventing market-timing and late trading abuses, are in place at the fund and with the investment adviser. Additionally, the legislation calls for the disclosure of insider transactions by mutual fund managers and Board notification of Securities and Exchange Commission (SEC) deficiency letters.
Another issue of concern with the mutual fund industry is the inadequate and confusing disclosure provided to shareholders regarding expenses. Fund shareholders are responsible for paying various fees and costs related to the operation and trading activity of the fund. While funds provide investors with certain fee-related disclosure, shareholders are largely in the dark about many other costs that impact the value of their fund's assets.
The legislation includes numerous provisions aimed at improving the cost, fee and other disclosures shareholders receive from mutual funds. These would include requirements that funds disclose the actual cost borne by each shareholder for the operating expenses of the fund and the estimated expenses paid for costs associated with management of the fund that reduces the fund's overall value, including brokerage commissions, revenue sharing and directed brokerage arrangements, transactions costs another fees.
The legislation would require a breakdown of these respective costs to be displayed graphically, in order to provide shareholders with the requisite information to compare the costs associated with owning shares of various mutual funds.
In addition these requirements, the legislation would require fund companies and investment advisers to fully disclose certain sales practices, including revenue-sharing and directed brokerage arrangements, shareholder eligibility for breakpoint discounts and the value of research and other services paid for as part of brokerage commissions, directing the SEC to study so-called ``soft-dollar'' arrangements.
As I mentioned earlier, Mr. President, this bill includes measures aimed at preventing abusive mutual fund practices, such as late trading and market timing, that diminish the shareholders' assets of a particular fund. First, the legislation seeks to ensure that fund companies and investment advisers have adequate shareholder safeguards in palace, and that they `certify' these internal control procedures. Those would include establishing a code of ethics, improving the accurate disclosure of fund company policies, and ensuring compliance efforts are overseen by the chief compliance officer.
The bill also would also take steps aimed at directly preventing abusive practices and conflicts of interest. The recent scandals surrounding mutual funds primarily focus on brokers and fund officials that have engaged in the improper trading of mutual fund shares through late trading and market timing. Late trading refers to the practice of placing orders to buy or sell mutual fund shares after 4 p.m., and market timing is short-term trading in and out of stocks in the hope of exploiting an inefficiency in the fund's share price.
To address the issue of market timing, the legislation requires the SEC to ensure that fund companies are in compliance with the Investment Company Act rules requiring them to use fair value calculation to determine the net asset value a fund company's securities when market quotations are otherwise unavailable or do not accurately reflect the companies fair market value. This provision would eliminate the stale pricing that allows market timers to profit, often illicitly, from the inaccurate pricing of a fund's shares.
The legislation would also require the SEC to establish a rule requiring fund companies and investment advisers to develop and disclose formal policies related to market timing and short term trading. Certification by fund company management would further ensure that policies are being adhered to.
To address late trading, the bill requires the SEC to issues rules and establishes guidelines for trades in fund securities that go through newly established ``permitted intermediaries'', such as broker- dealers. The rules would allow these permitted intermediaries to execute trades of a fund after the funds net asset value has been derived, if the intermediary has; a policy in place that the company does not permit late trades, mechanisms in place to detect late-trades and if that intermediary make those procedures available for inspection by the SEC. Non-permitted intermediaries would be required to submit their transactions to the fund company prior to market close.
To reduce other conflicts, the legislation would prohibit mutual fund managers from jointly managing a hedge fund, and would prohibit short- term trading by fund and investment company management and requires disclosure of insider transactions.
In seeking to bolster mutual fund industry oversight, this legislation would require the SEC to review the allocation of the resources it has dedicated to industry oversight and the General Accounting Office (GAO) to study the feasibility of establishing a new, independent regulator--the Mutual Fund Oversight Board. The bill also would direct the SEC to establish incentives and protections for whistleblowers and would require the GAO to independently review and report to Congress on the coordination of enforcement efforts between the SEC, its regional offices, and state regulators.
Finally, this bill calls for a study into ways in which we can improve and promote financial literacy among mutual fund shareholders. And the legislation, through its enhanced disclosures to shareholders, already makes a significant contribution to improving
shareholder understanding of the policies of the fund and the costs associated with its management and operation.
Mr. President, over the last several years as the economy came down from the high of the 1990s, we have seen how devastating it can be for workers when their companies declare bankruptcy. From the…
Mr. President, over the last several years as the economy came down from the high of the 1990s, we have seen how devastating it can be for workers when their companies declare bankruptcy. From the enormous Enron bankruptcy at the end of 2001 to the bankruptcies of Wheeling-Pitt and then Weirton Steel in my own home State, every bankruptcy has brought heartache for workers who had dedicated themselves to their employers. In many cases, employees and retirees have very limited ability to recover the wages, severance, or benefits they are due when their companies seek protection from creditors.
Workers deserve better. So today I am introducing the Bankruptcy Fairness Act to strengthen workers' rights in bankruptcy and to provide greater authority to bankruptcy courts to ensure a fair distribution of assets. Specifically, my bill will do three things. It will ensure that retirees whose promised health insurance is taken away receive at least some compensation for their lost benefits. Second, my legislation would allow employees to recover more of the back-pay or other compensation that is owed to them at the time of the bankruptcy. And lastly, I would provide bankruptcy courts the authority to recover company assets in cases where company managers flagrantly paid excessive compensation to favored employees just before declaring bankruptcy.
I am proposing this legislation as a way to start a dialogue about how we can better protect workers whose companies file for bankruptcy. I do not pretend to have all the answers. But I do know that we must do a better job of easing the burden that bankruptcy imposes on employees and retirees. And I believe that we can do so in creative ways that do not make it more difficult for companies to successfully reorganize and emerge from bankruptcy. I look forward to the ideas and suggestions of my colleagues.
In the simplest economic terms, employees sell their labor to their companies. They toil away in offices, plants, factories, mills, and mines, because they are promised that at the end of the day they will receive certain compensation. One of the most important types of compensation that workers earn is the right to enjoy certain benefits when they retire. Pensions, life insurance, or health care coverage are earned by workers in addition to their weekly paychecks. Yet, sadly we have seen many companies in the last few years abandon these promises when they declare bankruptcy.
More and more we see companies taking the easy road to profitability by abandoning commitments that they made to workers. For retirees who have planned for their golden years based on the benefits they have earned, losing health insurance can be a devastating blow. Retirees must have the right to reasonable compensation if the company seeks to break its promise to provide health insurance. Under current law, these retirees receive what is called a general unsecured claim for the value of the benefits they lost. As any creditor will tell you, a general unsecured claim is essentially worthless in most bankruptcies. It means you are at the end of the line, and there are not enough assets to go around. This law allows companies to essentially rescind compensation that retirees have earned with virtually no cost to the company. Of course that is a great deal for the company, but it is spectacularly unfair to the retirees.
Recognizing that so-called legacy costs are often an impossible burden for a company that is trying to emerge from bankruptcy, my legislation would still allow companies in some circumstances to alter the health coverage offered to retirees. However, it would require that the company pay a minimum level of compensation to retirees. Under this bill, each retiree would be entitled to a payment equal to the cost of purchasing comparable health insurance for a period of 18 months. Of course, 18 months of health insurance coverage is a lot less than many of these retirees are losing, but it can ease the transition as retirees make alternative plans, and it will discourage companies from thinking that terminating retiree health coverage is an easy solution. The retirees would still be entitled to a general unsecured claim for the value of the benefits lost in excess of this one time payment. This change would ensure that retirees, while still not being made whole on lost benefits, will at least receive some compensation for the broken promises.
Many active workers, too, have a difficult time recovering what is owed to them by their employer when the company files bankruptcy. Under current law, employees are entitled to a priority claim of up to $4,650. But that figure is usually not enough to cover the back-wages, vacation time, severance pay, or benefit payments that the employees are owed for work done prior to the bankruptcy. Congress needs to update the amount of the priority claim to ensure that more workers are able to receive what is rightfully theirs. The Bankruptcy Fairness Act would establish a priority claim for the first $15,000 of compensation owed to an employee.
In most cases, employees have been working their hardest to help the company avoid the nightmare of bankruptcy, only to find that they will not be compensated for their services as promised. As we saw so clearly with the Enron case, employees are often left holding the bag when their company declares bankruptcy. In that case, employees were owed an average of $35,000 in back-wages, severance, and other promised compensation. They deserved to recover more than a mere $4,650 of what was owed them. Let me be clear, this bill does not establish any new obligation for a company to pay severance or other compensation to employees caught up in a company's bankruptcy. It merely ensures that employees can recover more of what is already owed to them through the bankruptcy process.
I understand that many creditors or investors are not able to recover what is rightfully owed to them in bankruptcy, but employees deserve protection that recognizes the unique nature of their dependence on their employer. Any smart investor diversifies his or her portfolio so that a bankruptcy at one company does not bankrupt the investor. Likewise, suppliers and creditors that do business with a company typically have many other clients. This is not the case with workers. They cannot diversify away from the risk of working for a bankrupt company, and the financial hardship a bankruptcy brings is more devastating to the average worker than the average creditor or supplier.
Now, I know that some of my colleagues listening to this may be worrying that this legislation is insensitive to the needs of companies that are trying to reorganize in order to emerge from bankruptcy and go forward as successful businesses. I am fully aware that sometimes, too often in the real world, the bankruptcy process can help companies stay open and maintain jobs by restructuring obligations to creditors. Too many companies in West Virginia have had to go through the painful process of Chapter 11 reorganization. I completely understand the need to keep the factories open. And I have always worked side by side with companies to help them recover.
I will continue that important work, and I have included a provision in this bill to help bankrupt companies that are struggling to survive to recover assets that have been pilfered from the corporate coffers. In too many cases, company executives reward themselves even as their companies careen toward bankruptcy. The most egregious recent example is at Enron in 2001. In the days and weeks leading up to the bankruptcy filing, executives granted large bonuses to themselves and their favored employees. Millions of dollars were paid to a select group of employees just before the company declared bankruptcy. It is unconscionable that executives would grant themselves undeserved bonuses and then weeks later claim that the company did not have the resources to pay its rank and file employees.
My legislation provides bankruptcy courts greater authority to recover excessive compensation that was paid just prior to the bankruptcy filing. If
the court finds that compensation was out of the ordinary course of business or was unjust enrichment, the court can recover those assets for the bankrupt company, ensuring that more creditors, employees, and retirees can receive what is rightfully owed to them by the company.
The reforms I have outlined are modest. They will not take the sting out of bankruptcy. By definition a bankruptcy is a failure, and it is painful for the company's employees, retirees, and business partners. But the Bankruptcy Fairness Act I am introducing today would make progress toward ensuring that bankruptcies are more fair to the workers who gave their time and energy and sweat to the company in exchange for certain promised compensation. And by helping a company recover assets that should not have been paid out as undeserved bonuses just before bankruptcy the bill ensures that more of a company's assets are paid to the employees, retirees, and creditors who are rightfully owed.
It is my hope that this legislation will receive serious consideration from my colleagues, and that this can open an important debate about how workers and retirees can be better protected from the ugly side of prolonged economic downturns.
Mr. President, I rise today, with my colleague from New Jersey, to introduce a measure that is critical to improving the investing public's faith in our capital markets. This legislation, the…
Mr. President, I rise today, with my colleague from New Jersey, to introduce a measure that is critical to improving the investing public's faith in our capital markets. This legislation, the ``Mutual Fund Investor Confidence Restoration Act'' will fundamentally strengthen protections for the millions of investors who rely on mutual funds for their financial security.
America is the land of opportunity. Millions of Americans and countless others around the world seek the opportunity to participate in the economic life of our nation. Mutual funds are a principal pathway through which most investors achieve financial security. Mutual funds have in the past not only lived up to, but in many cases exceeded, the grand expectations of investors. They are a true success story of our securities markets and our system of securities regulation.
However, in recent months, a series of revelations has shaken investor confidence in the promise of mutual funds. We must restore the faith of investors in mutual funds and those who manage them. This legislation is designed to address some of the abuses and shortcomings which have received so much recent attention.
There are five broad areas which this legislation addresses: corporate governance, disclosures to investors, late trading and market timing, increased regulatory oversight, and financial literacy.
This legislation significantly improves corporate governance standards at mutual funds. Investors have begun to lose faith that their hard earned savings are not being managed with their best interests in mind. Mutual fund boards must have greater independence from fund managers and be more accountable to shareholders of the fund. Directors and chairmen must exercise greater oversight to ensure that funds are run in the interest of their shareholders--and be accountable to shareholders for failing to do so. Additionally, this legislation directs the SEC to determine whether directors and chairmen need additional tools to carry out that job.
This legislation mandates that corporate governance requirements created in the Sarbanes-Oxley Act, such as director independence requirements, financial expertise, and certification measures apply to mutual funds. Of particular note, this legislation mandates that funds employ a chief compliance officer to ensure that internal controls, policies and procedures are met by the fund in the interest of shareholders.
We need to improve the disclosures to investors about the fees and costs associated with mutual funds. Current disclosures are inadequate in providing investors the information necessary to understand the true costs of investing through mutual funds. The current expense ratio by no means includes all of the fund's expenses.
This legislation requires that currently unaccounted for expenses, such as brokerage commissions, advertising fees and research costs, among others, are fully disclosed.
Additionally, the legislation requires the breakout of these respective costs to be displayed as a graph provided to shareholders that will enable them to compare the costs associated with owning shares of different mutual funds. The ability to compare the total costs of mutual funds with each other will drive competition and lower costs for investors.
Investors deserve to know if their broker has a financial incentive to steer them into particular mutual funds. This legislation mandates greater disclosure of financial incentives provided to intermediaries and requires fund companies and investment advisers to fully disclose certain sales practices, including revenue-sharing and directed brokerage arrangements and disclose the value of research and other services paid for as part of brokerage commissions.
The recent abuses that we have seen with respect to late trading and market timing must be stopped to restore investors faith in mutual funds. Insider dealings at mutual funds must never recur. Fund insiders must be prohibited from trading against their own shareholders' interest. Neither fund insiders nor preferred customers must enjoy privileges like market timing that are denied to the millions of average mutual fund investors.
Late trading is already illegal, but we now know it isn't isolated. The system for prohibiting late trading in mutual funds must be strengthened, so all mutual fund investors are treated fairly. This legislation creates new requirements for intermediaries and funds to ensure that illegal late trading activities are stopped.
As a result of the recent widespread scandals in this area, we must rededicate our regulatory oversight of the mutual fund industry. Due to the tremendous size of mutual funds and how critical of an investment tool they are to small investors, this legislation directs the General Accounting Office to consider the value of creating a new self regulatory body and/or independent regulator for mutual fund oversight.
Lastly, this legislation calls for improved efforts to promote financial literacy among mutual fund shareholders. Ensuring that investors have the resources available to them to understand the benefits and costs of mutual funds is a fundamental importance.
The Mutual Fund Investor Confidence Restoration Act is an important step in the right direction of restoring the integrity of the mutual fund industry and will greatly improve the basic protections given to investors who rely upon these investment vehicles for their economic security.
Mr. President, I rise today to introduce important legislation designed to ensure that corporate wrongdoers are held fully responsible for their illegal actions and that investors are given fair compensation for such actions.
As most of my colleagues are aware, in April of this year, 10 large securities firms agreed to pay a total of $1.4 billion in fines and payments for giving their investment clients tainted and misleading advice--advice which cost those clients hundreds of millions of dollars.
The ``global settlement'' was initially lauded as a historic victory against corporate wrongdoers. And indeed, thanks to the efforts of Federal and State securities regulators, and New York State Attorney General Eliot Spitzer, the settlement has the potential to fundamentally change pervasive business practices that were so harmful to so many.
But the settlement's impact could be significantly weakened by a loophole that would allow the firms to avoid paying taxes on nearly $900 million of the penalties--by deducting them as standard business costs.
Only one-third of the total settlement is specifically prohibited by law from being tax-deductible. If the firms are able to write off the remainder of the costs as business expenses, then the total price tag of the settlement will be much smaller than advertised.
However, there is much more at stake. America's financial markets are the most vibrant in the world for one reason--investor confidence. The securities laws of the 1930's built the foundation for the deepest, most liquid markets in the world. They have created a public trust in our markets among investors worldwide who know that we have a zero- tolerance policy towards corporate malfeasance.
If we allow firms to write off fines as the cost of doing business, then we will perpetuate the idea that fraud is no longer a crime, but an accepted business practice. And we will compromise the very principles on which our markets are based--credibility, honesty, and responsibility.
We need to send the strongest possible message to corporate America that defrauding people of their life savings can never, under any circumstances, be considered ``business as usual.'' Our tax code should not reward these practices--it should discourage and punish them, to the greatest extent possible. Otherwise, the victims of corporate misconduct will include not only individual investors, but the credibility of our capital markets. And if our markets suffer, so will America's place in the world economy.
That is why I rise today to introduce my legislation. This legislation takes two important steps towards fixing this problem. First, it expressly prohibits any tax deduction on payments for violations of securities laws, including those required by the global settlement. Second, it directs all of the tax revenues gained from those payments into existing funds administered by the Securities and Exchange Commission which repay money to defrauded investors. Under my bill, the perpetrators of corporate misdeeds will be fairly punished, and the victims will be fairly compensated.
Everyone agrees that restoring investor confidence is a crucial part of getting our economy back on the right track. The vitality of 10 largest securities firms represent an important piece of this puzzle. But Americans will only be willing to entrust them with their hard- earned money if they can be sure that they are being dealt with ethically and honestly.
The global settlement represents a tremendous opportunity to help mend the tattered relationship between corporate America and the American people. We can't afford to lose that opportunity in a tax loophole. We need to show Americans that corporate fraud is a real crime--not business as usual. I urge my colleagues to support this bill.
Mr. President, I am pleased to be join by Senator Inouye in introducing the Tribal Government Tax Exempt Bond Fairness Act of 2003. This bill will assist Indian tribes raise capital in the private…
Mr. President, I am pleased to be join by Senator Inouye in introducing the Tribal Government Tax Exempt Bond Fairness Act of 2003.
This bill will assist Indian tribes raise capital in the private markets for purposes of job creation and economic development. The bill complements the other economic development initiative I am introducing today to discipline Federal programs aimed to help tribes strengthen their economies.
While making modest adjustments in current law, this bill will have far-reaching and positive effects for tribal governments and their members around the Nation.
The fact is that like State governments, tribal governments are responsible for a host of services not only to their members but to non-members who live on or hear their lands. These services include fire, police and ambulance service, road and bridge maintenance, and a host of social services.
Unlike State governments, however, tribal governments face severe restrictions in their ability to finance development through debt instruments.
The law forbids tribes from issuing tax-exempt bonds for any project unless it can meet the so-called ``essential government function'' test.
That is, in order for the holder of a tribal bond issue to receive income from that bond exempt from Federal tax, it must be issued for activities that are ``governmental'' in nature.
Examples of the kinds of projects that have been ruled by the Internal Revenue Service as falling outside this test are tribal convention centers, hotels, and golf courses.
State governments are not limited by the ``essential government function'' test when they issue tax-exempt debt. The bill I am introducing today will eliminate the disparate treatment tribes now receive.
Armed with this bonding authority, tribal governments will strengthen their economies, provide for their members and others, and lessen their reliance on Federal programs and services.
These are all worthy goals and I urge my colleagues to join me in supporting this bill.
I ask unanimous consent that a copy of the bill be printed in the Record.
Mr. President, I am pleased to be joined by Senator Inouye in introducing a bill to assist Indian tribes in their efforts to strengthen their economies.
Despite recent success some Indian tribes have had with gaming, tourism and natural resource development, the fact is that most tribes still suffer high unemployment, intense poverty and a lack of physical infrastructure.
Most tribal economies continue to perform poorly despite the expenditure of hundreds of millions--even billions--of Federal dollars over the years by the Departments of Agriculture, Commerce, Defense, Interior, Labor, and others.
The core problem is not the amount of dollars, but rather how they are being spent.
Numerous hearings by the Committee on Indian Affairs and several General Accounting Office (GAO) reports show that most Federal efforts are poorly timed and coordinated and lack the kind of tribal decision- making to make the efforts succeed.
The bill we are introducing today will go a long way in fixing these problems.
The principles that guide the bill are not new. In 1970 President Nixon issued his ``Special Message to Congress on Indian Affairs'' that called for significant changes in Federal Indian policy.
Nixon saw that Indians were not in command of the Federal programs and services meant for their benefit and he launched a quiet revolution in Federal Indian policy.
The Indian Self-Determination and Education Assistance Act of 1975 authorizes Indian tribes and tribal consortia to ``step into the shoes'' of the Federal government to administer programs and services historically provided by the United States.
Currently, one-half of the programs and services of the Bureau of Indian Affairs and the Indian Health Service are now contracted by Indian tribes and consortia. Tribal decisionmaking is paramount, service quality has improved, and tribal capacity has been enhanced significantly.
This bill will expand the principles of Indian self-determination to have the tribes--not the Federal bureaucracy--determine which programs and services should be brought to bear in an integrated and coordinated way to bring hope, jobs, and strengthened economies to their communities.
I ask unanimous consent that a copy of the bill be printed in the Record.
Mr. President, today I am pleased to be joined by Senator Inouye in introducing the Indian Gaming Regulatory Act Amendments of 2003 to amend and update the act.
In amending the Indian Gaming Regulatory Act of 1988 (IGRA) it is important to keep in mind the twin aims of the act: to ensure that gaming continues to be a tool for Indian economic development; and to ensure that the games conducted are kept free from corrupting forces to maintain the integrity of the industry.
This bill will update the IGRA by clarifying how vacancies in the National Indian Gaming Commission (NIGC) are filled; revising the NIGC statutory rates of pay to correspond with other current Federal rates of pay; and expanding the NIGC's reporting requirements to Congress.
The bill also clarifies the act by making the Johnson Act inapplicable to class II technological aids to bring it in line with the original intent of Congress in 1988.
The bill also requires background checks on class III management contractors, management employees, and gaming commissioners.
When the IGRA was enacted in 1988, Indian gaming was mainly high stakes bingo operations, known as ``class II gaming'' under the act. Virtually no one thought Indian gaming would become the $14.5 billion dollar industry that it is today, providing tribes with resources for development and employment opportunities where none previously existed.
In response to this success, questions have been raised--some legitimate, some not--about the efficacy of regulation within the industry. This bill requires that the NIGC and the gaming tribes develop and implement a system of minimum internal control, background investigation and licensing standards for all tribes that operate class II and class III gaming.
The bill would also ensure that the NIGC has the resources it needs to fulfill its regulatory duties by increasing the fee cap 50 percent over the next six years. With that budgetary increase, and prior to levying any fees, the NIGC would be required to determine and take into account the nature and level of any tribal or joint tribal-state regulatory activities and to reduce the fees assessed accordingly.
The bill will enable the NIGC to provide technical assistance and training to Indian tribes. The NIGC would be authorized to expend the civil fines it recoups for violations of the IGRA for these purposes.
The last substantive reform in the bill goes to the very heart of the act--economic development for Indian tribes. Because of gaming, some tribes have been very successful, employing thousands of people, both Indian and non-Indian, and reducing poverty and the welfare rolls in their areas.
This success has attracted the attention of other governments, cash- strapped and hungry for new revenues. Many States are looking to gaming tribes to help eliminate their deficits, and some States are reportedly refusing to enter or renew compacts required under IGRA until tribes agree to revenue sharing provisions.
Congress never envisioned that kind of pressure would be applied to tribes and, keeping these facts and the goals of IGRA in mind, the bill includes provisions to ensure that tribal gaming revenues are first used to meet the needs of tribal governments and their members. Only after satisfying those needs, would States and tribes be able to negotiate a revenue-sharing agreement.
To encourage States and tribes to negotiate, the bill requires the Secretary to perform her existing responsibilities under the act within 90 days and, at the back end, when existing compacts are up for renewal, the bill provides a 180 day grace period beyond the expiration date of compacts to encourage tribal-State agreements.
I ask unanimous consent that a copy of the bill be printed in the Record.
Mr. President, I am proud to join Senator Kyl in introducing legislation that would rename the Veterans Administration medical center in Prescott, AZ after Bob Stump. In June of this year, Arizonans…
Mr. President, I am proud to join Senator Kyl in introducing legislation that would rename the Veterans Administration medical center in Prescott, AZ after Bob Stump.
In June of this year, Arizonans suffered a major loss with the passing of Bob Stump, a native son who made his mark for our State and our Nation. Congressman Stump had a patriot's devotion to those who served our country in uniform. He will be deeply missed by his friends, family and a grateful Nation.
Congressman Stump served his country and the residents of Arizona admirably in the United States Navy, during World War II; in the Arizona State legislature; and in the United States Congress.
Congressman Stump's service in the House of Representatives was marked by this dedication to his constituents in Arizona. Never one for the trappings of a political office, Bob read and responded to all of his mail, he never had Press Secretary and often answered the office phone personally.
One could not overlook his leadership in Defense and Veterans issues. Serving as Chairman of the Veterans Affairs Committee, his work has so beneficial to America's veterans that a street in Arlington National Cemetery was named after him. Everywhere I travel, veterans remark to me that Bob Stump put Veterans needs first.
Bob's strong leadership of the House Armed Services Committee helped usher in many of the technological advances that characterize our modern military.
This legislation serves as a memorial to a member of Congress who left an indelible legacy.
Mr. President, today, I am pleased to reintroduce legislation to authorize a three-year nationwide school choice demonstration program targeted at children from economically disadvantaged families. The Excellence Through Choice to Elevate Learning Act, or the EXCEL Act, will expand educational opportunities for low-income children by providing parents and students the freedom to choose the best school for their unique academic needs while encouraging schools to be creative and responsive to the needs of all students.
This bill authorizes $1.8 billion annually for fiscal years 2004 through 2007 to be used to provide school choice vouchers to economically disadvantaged children throughout the nation. The funds allocated by the bill will be divided among states based upon the number of children they have enrolled in public schools. States will then conduct a lottery among low-income children who attend the public schools with the lowest academic performance in their State. Each child selected in the lottery would receive $2,000 per year for three years to be used to pay tuition at any school of their choice in the State, including private or religious schools. The money could also be used to pay for transportation to the school or supplementary educational services to meet the unique needs of the individual student.
In total, this bill authorizes $5.4 billion for the three-year school choice demonstration program, as well as an evaluation of the program by the General Accounting Office. The cost of this important test of school vouchers is fully offset by eliminating more than $5.4 billion in unnecessary pork and inequitable corporate tax loopholes.
We all know that one of the most important issues facing our nation is the education of our children. We must strive to develop and implement initiatives which strengthen and improve our education system thereby ensuring that our children are provided with the essential academic tools for succeeding professionally, economically and personally. I am sure we all agree that increasing the academic performance and skills of all our nation's students must be the paramount goal of any education reform we implement.
School vouchers are a viable method of allowing all American children access to high quality schools, including private and religious schools. Every parent, not just the wealthy, should be able to obtain the highest quality education for their children. Tuition vouchers would provide low-income children trapped in poor or mediocre
schools the same educational choices as children of economic privilege.
Some of my colleagues may argue that vouchers would divert money away from our Nation's public schools. They will claim it is better to pour more and more money into poor performing public schools, rather than promote competition in our school systems. I respectfully disagree. While I support strengthening financial support for education in our nation, the solution to what ails our system is not money alone.
Currently our nation spends significantly more money on education than most countries and yet our students consistently score lower than their peers. Students in countries which are struggling economically, socially and politically, such as Russia, outscore U.S. children in critical subjects such as math and physics. Clearly, we must make significant change beyond blindly throwing money into the current structure in order to improve our children's academic performance in order to maintain a viable force in the world economy.
It is shameful that we are failing to provide many of our children with adequate training and quality academic preparation for the real world. The number of college freshmen who require remedial courses in reading, writing and mathematics when they begin their higher education is unacceptably high. It does not bode well for our future economy if the majority of workers are not prepared with the basic skills to engage in a competitive global marketplace.
I concede that school vouchers are not the magic bullet for eradicating all that is wrong with our current educational system, but they are an important opportunity for providing improved academic opportunities for all children, not just the wealthy. Examination of the limited voucher programs scattered around our country reveal high levels of parent and student satisfaction, an increase in parental involvement, and a definite improvement in attendance and discipline at the participating schools. Vouchers encourage public schools, communities and parents to work together to raise the level of education for all students. Through this bill, we have the opportunity to replicate these important benefits throughout all our nation's communities.
Thomas Jefferson said, ``The purpose of education is to create young citizens with knowing heads and loving hearts.'' If we fail to give our children the education they need to nurture their heads and hearts, then we threaten their futures and the future of our nation. Each of us is responsible for ensuring that our children have both the love in their hearts and the knowledge in their heads to not only dream, but to make their dreams a reality.
The time has come for us to finally conduct a national demonstration of school choice to determine the benefits or perhaps disadvantages of providing educational choices to all students, not just those who are fortunate enough to be born into a wealthy family. I urge my colleagues to support this bill and put the needs of America's school children ahead of pork barrel projects and tax loopholes benefitting only special interests and big business.
I ask unanimous consent that the text of this bill be printed in the Record.
Mr. President, I rise today to introduce the First Responders Partnership Grant Act of 2003. I thank the Democratic Leader, Senator Daschle, and Assistant Democratic Leader, Senator Reid, for joining…
Mr. President, I rise today to introduce the First Responders Partnership Grant Act of 2003. I thank the Democratic Leader, Senator Daschle, and Assistant Democratic Leader, Senator Reid, for joining me as original cosponsors of this legislation that will supply our nation's first responders with the support they so desperately need to protect homeland security and prevent and respond to acts of terrorism.
I want to begin by thanking each of our Nation's brave firefighters, emergency rescuers, law enforcement officers, and other first responder personnel for the jobs they do for the American public day in and day out. Our public safety officers are often the first to respond to any crime or emergency situation. On September 11, the Nation saw that the first on the scene at the World Trade Center were the heroic firefighters, police officers and emergency personnel of New York City. These real-life heroes, many of whom gave the ultimate sacrifice, remind us of how important it is to support our State and local public safety partners.
But while we ask our Nation's first responders to defend us as never before on the front lines against the dark menace of domestic terrorism, we have failed to supply them with the Federal support they need and deserve to protect us, as we expect and need them to protect us.
Since March 12, 2002, the Federal Homeland Security Advisory System has kept State and local first responders on Yellow Alert, an ``elevated'' threat level declared when there is a significant risk of terrorist attacks, requiring increased surveillance of critical locations. On top of this, from September 10 to September 24 last year, Attorney General Ashcroft declared our country at Orange Threat level, a ``high'' condition indicating a high probability of a terrorist attack and when additional precautions by first responders are necessary at public events. Only hours ago, in fact, counterterrorism officials warned that the threat of terrorist attacks on U.S. soil is at a higher level than in previous months due to the possibility of impending military action against Iraq. Debate has already begun at the new Department of Homeland Defense on whether to put out an alert warning or to actually raise the national threat level to Orange again.
Counties, cities and towns in my home state of Vermont and across the U.S. find themselves overwhelmed by increasing homeland security costs required by the Federal government. Indeed, the National Governors Association estimates that states incurred around $7 billion in security costs over the past year alone. As a result, the national threat alerts and other Federal homeland security requirements have become unfunded Federal mandates on our State and local governments. Rutland County Sheriff R.J. Elrick, President of the Vermont Sheriffs' Association, recently wrote to me, ``We are in dire need of financial support to keep our personnel trained and equipped to meet the challenges here at home as we continue our vigilant commitment to fight terrorism.''
I will ask unanimous consent to place after my remarks in the Record the letter from the Vermont Sheriffs' Association, as well as letters from the Professional Firefighters of Vermont, the Vermont Ambulance Association, and the Vermont Association of Police Chiefs, and Chief Doug Hoyt of Montpelier, Chief Anthony Bossi of Rutland City, Chief David Demag of Essex, and Chief Jeffery Whitesell of Winhall.
When terrorists strike, first responders are and will always be the first people we turn to for help. We place our lives and the lives of our families and friends in the hands of these officers, trusting that when called upon they will protect and save us.
Just how, without supplying them with the necessary resources, do we expect our Nation's first responders to realistically carry out their duties?
Our State and local law enforcement officers, firefighters and emergency personnel are full partners in preventing, investigating and responding to terrorist acts. They need and deserve the full collaboration of the Federal government to meet these new national responsibilities.
Washington is buzzing about the literally hundreds of billions of additional dollars the President plans to ask Congress to provide for our military services to fight the war on terrorism abroad. The same cannot be said for helping security here at home, which is shamefully overlooked. For a year and a half I have been working hard to remedy that, with allies like our distinguished Democratic Leader and Assistant Democratic Leader, and New York Senators Schumer and Clinton. As former chair and now ranking member of the Judiciary Committee, I have made it a high priority to evaluate and meet the needs of our first responders.
For these reasons, I am proud to introduce the First Responders Partnership Grant Act to give our nation's law enforcement officers, firefighters and emergency personnel the resources they need to do their jobs. Our legislation will establish a grant program at the Department of Justice to provide $4 billion nationwide in annual Federal funds to support State and local public safety officers in their efforts to protect homeland security and prevent and respond to acts of terrorism.
Similar to the highly successful Department of Justice Community Oriented Policing Services and the Bulletproof Vest Partnership Grant Programs, the First Responder Grants will be made directly to State and local government units for overtime, equipment, training and facility expenses to support our law enforcement officers, firefighters and emergency personnel.
The First Responder Grants may be used to pay up to 90 percent of the cost of the overtime, equipment, training or facility. In cases of fiscal hardship, the Justice Department can waive the local match requirement of 10 percent to provide federal funds for communities that cannot afford the local match.
In a world shaped by the violent events of September 11, day after day we call upon our public safety officers to remain vigilant. We not only ask them to put their lives at risk in the line of duty, but also, if need be, give their lives to protect us.
If we take time to listen to our Nation's State and local public safety partners, they will tell us that they welcome the challenge to join in our national mission to protect our homeland security. But we cannot ask our firefighters, emergency personnel, and law enforcement officers to assume these new national responsibilities without also providing new federal support.
The First Responders Partnership Grant Program will provide the necessary federal support for our state and public safety officers to serve as full partners in the fight to protect our homeland security. We need our first responders for the security and the life-saving help they bring to our communities. All they ask is for the tools they need to do their jobs for us. And for the sake of our own security, that is not too much to ask.
I ask unanimous consent that the letters I referred to be printed in the Record.
Mr. President. I am pleased to rise today with my colleague Senator Lieberman to introduce legislation that would amend the Internal Revenue Code to exclude property tax abatements, provided by local…
Mr. President. I am pleased to rise today with my colleague Senator Lieberman to introduce legislation that would amend the Internal Revenue Code to exclude property tax abatements, provided by local governments to volunteer firefighters and emergency medical responders, from the definition of income and wages. Congressman John Larson of Connecticut introduced identical legislation in the House.
Seventy-five percent of firefighters in our country are volunteers. Unfortunately, statistics show that the number of volunteer firefighters and emergency responders have been declining in past years at an alarming rate. The number of volunteer firefighters around the country has declined by 5 to 10 percent since 1983, while the number of emergency calls made has sharply increased.
Many municipalities throughout the country, including the State of Connecticut, offer stipends and property tax abatements of up to $1,000 per year to volunteer firefighters, emergency medical technicians, paramedics, and ambulance drivers. These incentives have helped local fire departments in their volunteer recruitment efforts throughout the country.
Last year the IRS ruled that property tax abatements to volunteers should be treated as wages and income. This ruling would undermine the efforts of localities across the country to recruit more volunteer firefighters.
The bill that Senator Lieberman and I are introducing amends the Internal Revenue Code to exclude property tax abatements and stipends for volunteer firefighters and emergency medical responders from the definition of income and wages. This bill would allow local governments around the country to continue providing these incentives to their volunteer firefighters and emergency medical responders.
The President has recently called for Americans to volunteer in their communities. When both heads of household hold full-time employment, it is often too difficult for them to take time away from their families without some form of compensation. A $1,000 property tax break is not a large request for the great service these men and women provide to our communities. They risk their lives for others. The least we can do is allow States and towns to offer them modest incentives to serve.
The IRS ruling undermines the good intentions and creative efforts of many localities. If our municipalities are willing to forgo their local tax revenues in order to ensure they have enough volunteer firefighters and emergency service providers to protect their communities, and if members of the community are doing their part by volunteering, then we, as a country should do our part and support local efforts to ensure that all our communities have adequate protection. And that is what our bill will ensure.
I hope that our colleagues will join us in supporting this legislation so that we can ensure that state and local governments have the flexibility to design and implement recruiting and retention programs that benefit not only the volunteer firefighters and emergency medical providers, but also the communities they protect.
I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, it is with great pleasure that I rise today to introduce legislation for the research, prevention, and treatment of Lyme disease. This bipartisan legislation works toward the goal of eradicating Lyme disease--a devastating disease that has particularly impacted those of us from Connecticut and the Northeast. The Senate showed its strong support for this legislation when it passed it in the last Congress by Unanimous Consent. It is my hope that the Senate will show this same support again to ensure the goals of this legislation are achieved.
Lyme disease can be devastating to those it affects. The disease first achieved prominence in the 1980s in the state of Connecticut and got its name from the town of Lyme, CT. Today, Connecticut residents have the unfortunate distinction of being 10 times more likely to contract Lyme disease than the rest of the nation. However, the incidence of Lyme disease nationwide is on the rise. In fact, cases of Lyme disease have been reported by 49 states and the District of Columbia. Since 1982, the number of Lyme disease cases reported to health officials has exceeded 200,000. Even more disconcerting are reports indicating that the actual incidence of Lyme disease may be significantly greater than what is reported.
Those infected with Lyme disease may experience a number of health problems including facial paralysis, joint swelling, loss of coordination, irregular heartbeat, liver malfunction, depression, and memory loss. Unfortunately, this devastating disease can often be misdiagnosed, due to the fact that the symptoms presented by Lyme disease often look similar to other conditions. The misdiagnosis of this often debilitating illness can result in prolonged pain and suffering, unnecessary tests, expensive treatments, as well as severe emotional consequences for victims and their families.
The legislation we introduce today will build on earlier efforts to tackle the problem of Lyme disease and other tick-borne disorders. Through an amendment that I offered to the Fiscal Year 1999 Department of Defense (DoD) appropriations bill, an additional $3 million was directed toward DoD's research in this area. This was an important first step in the fight to increase our understanding of this disease, but much more remains to be done. This legislation will provide what is necessary to continue the effort to research, prevent and treat Lyme disease and other tick-borne disorders.
A critical component of this legislation is the creation of a federal advisory committee on Lyme disease and other tick-borne disorders. This advisory committee, the first of its kind, will include members of the scientific community, health care providers, and most directly impacted by the disease, Lyme patients and their families. Among its activities, the committee will identify opportunities for coordination and communication between Federal agencies and private organizations in their efforts to combat Lyme disease.
This legislation also includes other key elements designed to conquer Lyme disease and other tick-borne disorders. It provides a framework for the government to establish clear goals in the areas of research, treatment, and prevention of Lyme disease. Crucial to activities in each of these areas, is the fact that this legislation authorizes $10 million in annual funding for federal activities related to the elimination of Lyme disease.
I would like to thank my colleague from Pennsylvania, Senator Rick Santorum, the legislation's chief Republican cosponsor, for his dedicated
support of this important initiative. I look forward to continuing to work with Senator Santorum, my other colleagues, and the Lyme disease community to strengthen our efforts to eradicate Lyme disease. This legislation provides an important step toward reaching this laudable goal.
Mr. President, it is a privilege to join my colleagues in introducing a bipartisan bill to extend the availability of the unused funds in the Children's Health Insurance Program, so that hundreds of…
Mr. President, it is a privilege to join my colleagues in introducing a bipartisan bill to extend the availability of the unused funds in the Children's Health Insurance Program, so that hundreds of thousands of children can retain their health coverage, and so that the CHIP program can continue to grow.
We recently celebrated the fifth anniversary of the CHIP program. Over its relatively short life, the program has served children across America, providing health coverage for those who would be otherwise uninsured. Last year, over 4.5 million children received health insurance through CHIP or through Medicaid expansions under CHIP, including 105,000 children in Massachusetts. Health insurance provides children with a healthy start in life, and CHIP is important in providing that healthy start for millions of children in moderate- income working families.
Unfortunately, because of a technical provision in the law, $1.2 billion in unspent CHIP funds reverted to the Treasury last October. Another $1.5 billion will revert to the Treasury this October if Congress fails to act. We know that 20 States are projected to run out of CHIP funds soon, including 5 States--Alaska, Arizona, Maryland, New Jersey, and Rhode Island--that are projected to run out of money as early as next year.
It makes no sense to allow funds to revert to the Treasury when there is so much unmet need. Some States have not been able to use all their
Mr. President, it is a privilege to join Senator Gregg, Senator Frist, and Senator Bingaman in introducing legislation to improve the role of the Foundation for the National Institutes of Health.
The Foundation for the National Institutes of Health Improvement Act that we introduce today makes several improvements in the 1990 law that established the Foundation. Most significantly, the bill assures that the Foundation will receive $500,000 from the NIH to support its administrative and operating expenses. These funds will enable the Foundation to use its resources for the actual support of projects to strengthen NIH programs, rather than raise money for its own expenses. In addition, the bill makes clear that the NIH Director and the Commissioner of Food and Drugs are ex officio members of the Foundation's board of directors.
Congress established the Foundation to raise private funds to support the research of the NIH. Since its incorporation as a private, nonprofit organization in Maryland 7 years ago, for every $1 that the Foundation has received in support from the NIH, it has raised $13 in private funds to support the work of NIH.
By last fall, the Foundation was managing 20 programs with multi-year revenue and funding goals of over $45 million. For example, the Edmond J. Safra Family Lodge on the NIH campus will be completed in the summer of 2004 using private funds donated through the Foundation, with services and land donated by the NIH. Families of patients receiving in-patient cancer treatment at the NIH Clinical Center will have the Lodge as a place to stay, at no cost to them.
In addition, the Foundation has formed partnerships with the NIH to develop new cancer treatments, to identify biomarkers for osteoarthritis, and to build on the promise of genomics. Through a public-private partnership, the Foundation helped accelerate the sequencing of the mouse genome. The Foundation is also collecting private funds to study drugs in children. On January 26, 2003, Bill Gates announced a gift to the NIH through the Foundation of $200 million
over the next 10 years to support research on global health priorities. Clearly, the Foundation's role with the NIH will grow productively in the coming years.
I urge my colleagues in the Senate to support this legislation, so that the Foundation can continue its effective support of the work and mission of the NIH. I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, it is a privilege to join Senator Corzine in introducing the Chance to Succeed Act, which will benefit the most vulnerable families across the Nation. I'm concerned that the Administration's proposal on welfare reform fails to give States the flexibility needed to assist families who face serious barriers to employment. The Chance to Succeed Act provides this essential flexibility.
Many of the individuals still remaining on welfare face significant and real barriers to finding and keeping jobs. These barriers include physical or mental disabilities, substance abuse, domestic or sexual violence, learning disabilities, problems with literacy or English proficiency, or the need to care for a sick or disabled child. These recipients are less likely to find jobs or earn adequate wages, and they are more likely to lose public assistance due to sanctions for noncompliance.
It makes sense to assist these families on the road to self- sufficiency by enabling states to do what is necessary to provide them with adequate work supports and needed services. This approach works, I've seen it in Massachusetts, which has been highly successful in serving its neediest families. In fact, even before the 1996 welfare reform, the state had developed a welfare program in which all recipients are screened for barriers to employment. We've successfully helped families without major barriers to obtain employment, and we've reduced our caseload by over 64 percent in five years. We've also been able, consistently and effectively, to serve families facing barriers and provide educational, rehabilitative, and other services appropriate for their situations. We have a socially and fiscally responsible welfare policy.
The Chance to Succeed Act will encourage all states to take such steps. It will facilitate the development of screening, assessment, and service delivery procedures that enable states to identify these individuals and provide appropriate support and services. It will provide funding and technical assistance for state advisory panels, model practices, and more effective standards and procedures to help individuals find employment.
This bill also helps the many persons who are unable to comply with current work requirements because of previously unidentified barriers to employment. It will enable each family to develop its own plan that includes career goals and private sector employment. It provides flexibility to states to design plans that meet families' unique needs. Activities essential to reducing and eliminating barriers can be counted as work. It will enable states to establish conciliation and follow-up procedures to remove barriers and improve compliance, so that fewer families are needlessly penalized and left vulnerable.
Individuals with barriers to employment are an important part of genuine welfare reform, and it is long past time for Congress to include them. The Chance to Succeed Act is a first step in
helping the many families who face barriers to become more self- sufficient.
Mr. President, I rise today to introduce a bill that will make Medicare's Social Health Maintenance Organization, SHMO, demonstration a permanent part of the Medicare+Choice program. In this effort,…
Mr. President, I rise today to introduce a bill that will make Medicare's Social Health Maintenance Organization, SHMO, demonstration a permanent part of the Medicare+Choice program. In this effort, I am joined by my colleagues from Oregon, New York, Arizona, California, and Washington.
The Social HMO demonstration was authorized 18 years ago to test models for improving health care for frail seniors, expanding access to social and supportive services, and integrating these expanded benefits with medical services better. My colleagues and I feel that an eighteen-year test is long enough, it is time for this successful program to become a permanent choice for Medicare beneficiaries.
Close to 80 percent of national health care expenditures are for people with chronic conditions. Medicare beneficiaries are disproportionately affected by chronic illness. About 85 percent of people who are 65 and older have one chronic condition, and two thirds have two or more. Fully a third of Medicare beneficiaries have four or more chronic conditions. This group accounts for more than three quarters of all Medicare spending. Yet, despite the predominance of chronic illness among seniors, Medicare continues to operate as an acute care model. So many of the services that are central to the health care needs of seniors are not covered by Medicare, including a number of preventive services, care coordination and disease management services, and home and community-based support services.
Social HMOs provide the care coordination and disease management services so critically important to frail and at-risk seniors with multiple chronic conditions and complex care needs. Social HMOs are required to provide expanded care benefits such as prescription drugs, ancillary services such as eyeglasses and hearing aids, and community- based services such as personal care, homemaker services, adult day care, meals, and transportation. These services meet the chronic health care needs of seniors, helping them remain independent, while reducing Medicaid expenditures by avoiding or delaying nursing home placement.
Several recent studies have shown that Social HMO members are 40 percent to 50 percent less likely to have long-term nursing home placements than similar seniors. Further, in a recent survey of Social HMO beneficiaries, over three-quarters of respondents indicated that the special services offered by their Social HMO were critical in allowing them to continue living at home. Enhanced Social HMO services, such as early detection of illness, development of coordinated care plans to address problems identified during routine assessments, screening, and ongoing monitoring of care, has paid off in improved health outcomes for beneficiaries. One study submitted to CMS by the University of California at San Francisco and the University of Minnesota showed that the Social HMO chronic care interventions decreased inpatient hospital and emergency room use up to 57 percent and 47 percent, respectively, while improving beneficiaries' functional capacity.
Last year, Medicaid spending increased by over 13 percent. More than half of this growth was in programs serving the elderly and disabled. At a time when the Federal deficit is increasing and States are facing unprecedented budget shortfalls, it is incumbent upon us to take measures to reduce, not increase, the Medicaid burden, which constitutes a major component of State expenditures.
My legislation provides a critical opportunity to address the States' large and growing fiscal crises. In the short-term we can prevent an exacerbation of States' budget woes by making the Social HMOs permanent. Preliminary estimates of first year costs for terminating the Social HMO program range from about $100 to $300 million for increased nursing home and home care expenditures under Medicaid. Remember that these estimates relate to only four existing plans serving about 110,000 beneficiaries and do not even include prescription drugs and other ancillary services provided by the plans. Long-term cost savings associated with reduced health care expenditures and keeping enrollees from spending down to Medicaid would be even more significant--especially if the MedPAC study required by our bill validates that these programs are cost-effective and recommends to Congress that we expand this option. For states facing huge shortfalls, the cost to absorb these SHMO beneficiaries if the program were to terminate would be substantial.
I am fortunate that one of the four original Social HMOs is in Oregon. Senior Advantage II, offered by Kaiser Permanente's Northwest Division, currently serves about 4,300 Medicare beneficiaries from Salem, OR to Longview, Washington, with its primary service area in Portland, OR. Since Kaiser opened its Social HMO program, it has served close to 15,000 beneficiaries with its enhanced benefits and special geriatric programs, which have led to fewer overall nursing home care days and a more consumer-oriented approach to care for frail or ill seniors.
The legislation I am introducing with my distinguished colleagues today would make permanent the existing Social HMO plans, like Kaiser, and would lay the ground work for evaluating whether to expand and replicate this model. Our bill requires the Secretary to conduct a comparative study of beneficiary and family member satisfaction to see how Social HMOs compare to Medicare + Choice and fee-for-service Medicare. It also requires MedPAC to evaluate the cost-effectiveness of Social HMOs with respect to reduced nursing home admissions, reduced incidence of Medicaid spend-down, and other aspects of the model that represent potential cost-savings. If MedPAC finds that Social HMOs are cost-effective, it must make recommendations to Congress on expanding and replicating this model.
To ensure that beneficiaries continue to receive the value added they have come to enjoy under this program, the Social HMOs must continue to provide the expanded benefit package currently offered under this legislation. Further, this benefit could not be changed by the Secretary without notification of Congress. Finally, to ensure that Social HMOs can continue to finance a high level of benefits, any changes in plans' existing payments would need to go through a formal rulemaking process.
The Social HMO demonstration project has been re-validated by six acts of Congress since its creation. It is time to make this program permanent and lend a measure of stability to the plans and beneficiaries served by this innovative model. This program represents a fiscally sound approach to helping manage the chronic health care needs of our nation's seniors, and I urge all of my colleagues to join with me and the rest of this bill's cosponsors in support of this important legislation.
Bill Text
3 versions available
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 312 Engrossed in Senate (ES)]
108th CONGRESS
1st Session
S. 312
_______________________________________________________________________
AN ACT
To amend title XXI of the Social Security Act to extend the
availability of allotments for fiscal years 1998 through 2001 under the
State Children's Health Insurance Program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. EXTENSION OF AVAILABILITY OF SCHIP ALLOTMENTS FOR FISCAL
YEARS 1998 THROUGH 2001.
(a) Extending Availability of SCHIP Allotments for Fiscal Years
1998 Through 2001.--
(1) Retained and redistributed allotments for fiscal years
1998 and 1999.--Paragraphs (2)(A)(i) and (2)(A)(ii) of section
2104(g) of the Social Security Act (42 U.S.C. 1397dd(g)) are
each amended by striking ``fiscal year 2002'' and inserting
``fiscal year 2004''.
(2) Extension and revision of retained and redistributed
allotments for fiscal year 2000.--
(A) Permitting and extending retention of portion
of fiscal year 2000 allotment.--Paragraph (2) of such
section 2104(g) is amended--
(i) in the heading, by striking ``and
1999'' and inserting ``through 2000''; and
(ii) by adding at the end of subparagraph
(A) the following:
``(iii) Fiscal year 2000 allotment.--Of the
amounts allotted to a State pursuant to this
section for fiscal year 2000 that were not
expended by the State by the end of fiscal year
2002, 50 percent of that amount shall remain
available for expenditure by the State through
the end of fiscal year 2004.''.
(B) Redistributed allotments.--Paragraph (1) of
such section 2104(g) is amended--
(i) in subparagraph (A), by inserting ``or
for fiscal year 2000 by the end of fiscal year
2002,'' after ``fiscal year 2001,'';
(ii) in subparagraph (A), by striking
``1998 or 1999'' and inserting ``1998, 1999, or
2000'';
(iii) in subparagraph (A)(i)--
(I) by striking ``or'' at the end
of subclause (I),
(II) by striking the period at the
end of subclause (II) and inserting ``;
or''; and
(III) by adding at the end the
following new subclause:
``(III) the fiscal year 2000
allotment, the amount specified in
subparagraph (C)(i) (less the total of
the amounts under clause (ii) for such
fiscal year), multiplied by the ratio
of the amount specified in subparagraph
(C)(ii) for the State to the amount
specified in subparagraph (C)(iii).'';
(iv) in subparagraph (A)(ii), by striking
``or 1999'' and inserting ``, 1999, or 2000'';
(v) in subparagraph (B), by striking ``with
respect to fiscal year 1998 or 1999'';
(vi) in subparagraph (B)(ii)--
(I) by inserting ``with respect to
fiscal year 1998, 1999, or 2000,''
after ``subsection (e),''; and
(II) by striking ``2002'' and
inserting ``2004''; and
(vii) by adding at the end the following
new subparagraph:
``(C) Amounts used in computing redistributions for
fiscal year 2000.--For purposes of subparagraph
(A)(i)(III)--
``(i) the amount specified in this clause
is the amount specified in paragraph
(2)(B)(i)(I) for fiscal year 2000, less the
total amount remaining available pursuant to
paragraph (2)(A)(iii);
``(ii) the amount specified in this clause
for a State is the amount by which the State's
expenditures under this title in fiscal years
2000, 2001, and 2002 exceed the State's
allotment for fiscal year 2000 under subsection
(b); and
``(iii) the amount specified in this clause
is the sum, for all States entitled to a
redistribution under subparagraph (A) from the
allotments for fiscal year 2000, of the amounts
specified in clause (ii).''.
(C) Conforming amendments.--Such section 2104(g) is
further amended--
(i) in its heading, by striking ``and
1999'' and inserting ``, 1999, and 2000''; and
(ii) in paragraph (3)--
(I) by striking ``or fiscal year
1999'' and inserting ``, fiscal year
1999, or fiscal year 2000''; and
(II) by striking ``or November 30,
2001'' and inserting ``November 30,
2001, or November 30, 2002'',
respectively.
(3) Extension and revision of retained and redistributed
allotments for fiscal year 2001.--
(A) Permitting and extending retention of portion
of fiscal year 2001 allotment.--Paragraph (2) of such
section 2104(g), as amended in paragraph (2)(A)(ii), is
further amended--
(i) in the heading, by striking ``2000''
and inserting ``2001''; and
(ii) by adding at the end of subparagraph
(A) the following:
``(iv) Fiscal year 2001 allotment.--Of the
amounts allotted to a State pursuant to this
section for fiscal year 2001 that were not
expended by the State by the end of fiscal year
2003, 50 percent of that amount shall remain
available for expenditure by the State through
the end of fiscal year 2005.''.
(B) Redistributed allotments.--Paragraph (1) of
such section 2104(g), as amended in paragraph (2)(B),
is further amended--
(i) in subparagraph (A), by inserting ``or
for fiscal year 2001 by the end of fiscal year
2003,'' after ``fiscal year 2002,'';
(ii) in subparagraph (A), by striking
``1999, or 2000'' and inserting ``1999, 2000,
or 2001'';
(iii) in subparagraph (A)(i)--
(I) by striking ``or'' at the end
of subclause (II),
(II) by striking the period at the
end of subclause (III) and inserting
``; or''; and
(III) by adding at the end the
following new subclause:
``(IV) the fiscal year 2001
allotment, the amount specified in
subparagraph (D)(i) (less the total of
the amounts under clause (ii) for such
fiscal year), multiplied by the ratio
of the amount specified in subparagraph
(D)(ii) for the State to the amount
specified in subparagraph (D)(iii).'';
(iv) in subparagraph (A)(ii), by striking
``or 2000'' and inserting ``2000, or 2001'';
(v) in subparagraph (B)--
(I) by striking ``and'' at the end
of clause (ii);
(II) by redesignating clause (iii)
as clause (iv); and
(III) by inserting after clause
(ii) the following new clause:
``(iii) notwithstanding subsection (e),
with respect to fiscal year 2001, shall remain
available for expenditure by the State through
the end of fiscal year 2005; and''; and
(vi) by adding at the end the following new
subparagraph:
``(D) Amounts used in computing redistributions for
fiscal year 2001.--For purposes of subparagraph
(A)(i)(IV)--
``(i) the amount specified in this clause
is the amount specified in paragraph
(2)(B)(i)(I) for fiscal year 2001, less the
total amount remaining available pursuant to
paragraph (2)(A)(iv);
``(ii) the amount specified in this clause
for a State is the amount by which the State's
expenditures under this title in fiscal years
2001, 2002, and 2003 exceed the State's
allotment for fiscal year 2001 under subsection
(b); and
``(iii) the amount specified in this clause
is the sum, for all States entitled to a
redistribution under subparagraph (A) from the
allotments for fiscal year 2001, of the amounts
specified in clause (ii).''.
(C) Conforming amendments.--Such section 2104(g) is
further amended--
(i) in its heading, by striking ``and
2000'' and inserting ``2000, and 2001''; and
(ii) in paragraph (3)--
(I) by striking ``or fiscal year
2000'' and inserting ``fiscal year
2000, or fiscal year 2001''; and
(II) by striking ``or November 30,
2002,'' and inserting ``November 30,
2002, or November 30, 2003,'',
respectively.
(4) Effective date.--This subsection, and the amendments
made by this subsection, shall be effective as if this
subsection had been enacted on September 30, 2002, and amounts
under title XXI of the Social Security Act (42 U.S.C. 1397aa et
seq.) from allotments for fiscal years 1998 through 2000 are
available for expenditure on and after October 1, 2002, under
the amendments made by this subsection as if this subsection
had been enacted on September 30, 2002.
(b) Authority for Qualifying States To Use Portion of SCHIP Funds
for Medicaid Expenditures.--Section 2105 of the Social Security Act (42
U.S.C. 1397ee) is amended by adding at the end the following:
``(g) Authority for Qualifying States To Use Certain Funds for
Medicaid Expenditures.--
``(1) State option.--
``(A) In general.--Notwithstanding any other
provision of law, with respect to allotments for fiscal
years 1998, 1999, 2000, 2001, for fiscal years in which
such allotments are available under subsections (e) and
(g) of section 2104, a qualifying State (as defined in
paragraph (2)) may elect to use not more than 20
percent of such allotments (instead of for expenditures
under this title) for payments for such fiscal year
under title XIX in accordance with subparagraph (B).
``(B) Payments to states.--
``(i) In general.--In the case of a
qualifying State that has elected the option
described in subparagraph (A), subject to the
total amount of funds described with respect to
the State in subparagraph (A), the Secretary
shall pay the State an amount each quarter
equal to the additional amount that would have
been paid to the State under title XIX for
expenditures of the State for the fiscal year
described in clause (ii) if the enhanced FMAP
(as determined under subsection (b)) had been
substituted for the Federal medical assistance
percentage (as defined in section 1905(b)) of
such expenditures.
``(ii) Expenditures described.--For
purposes of clause (i), the expenditures
described in this clause are expenditures for
such fiscal years for providing medical
assistance under title XIX to individuals who
have not attained age 19 and whose family
income exceeds 150 percent of the poverty line.
``(iii) No impact on determination of
budget neutrality for waivers.--In the case of
a qualifying State that uses amounts paid under
this subsection for expenditures described in
clause (ii) that are incurred under a waiver
approved for the State, any budget neutrality
determinations with respect to such waiver
shall be determined without regard to such
amounts paid.
``(2) Qualifying state.--In this subsection, the term
`qualifying State' means a State that--
``(A) as of April 15, 1997, has an income
eligibility standard with respect to any 1 or more
categories of children (other than infants) who are
eligible for medical assistance under section
1902(a)(10)(A) or under a waiver under section 1115
implemented on January 1, 1994, that is up to 185
percent of the poverty line or above; and
``(B) satisfies the requirements described in
paragraph (3).
``(3) Requirements.--The requirements described in this
paragraph are the following:
``(A) SCHIP income eligibility.--The State has a
State child health plan that (whether implemented under
title XIX or this title)--
``(i) as of January 1, 2001, has an income
eligibility standard that is at least 200
percent of the poverty line or has an income
eligibility standard that exceeds 200 percent
of the poverty line under a waiver under
section 1115 that is based on a child's lack of
health insurance;
``(ii) subject to subparagraph (B), does
not limit the acceptance of applications for
children; and
``(iii) provides benefits to all children
in the State who apply for and meet eligibility
standards on a statewide basis.
``(B) No waiting list imposed.--With respect to
children whose family income is at or below 200 percent
of the poverty line, the State does not impose any
numerical limitation, waiting list, or similar
limitation on the eligibility of such children for
child health assistance under such State plan.
``(C) Additional requirements.--The State has
implemented at least 3 of the following policies and
procedures (relating to coverage of children under
title XIX and this title):
``(i) Uniform, simplified application
form.--With respect to children who are
eligible for medical assistance under section
1902(a)(10)(A), the State uses the same
uniform, simplified application form
(including, if applicable, permitting
application other than in person) for purposes
of establishing eligibility for benefits under
title XIX and this title.
``(ii) Elimination of asset test.--The
State does not apply any asset test for
eligibility under section 1902(l) or this title
with respect to children.
``(iii) Adoption of 12-month continuous
enrollment.--The State provides that
eligibility shall not be regularly redetermined
more often than once every year under this
title or for children described in section
1902(a)(10)(A).
``(iv) Same verification and
redetermination policies; automatic
reassessment of eligibility.--With respect to
children who are eligible for medical
assistance under section 1902(a)(10)(A), the
State provides for initial eligibility
determinations and redeterminations of
eligibility using the same verification
policies (including with respect to face-to-
face interviews), forms, and frequency as the
State uses for such purposes under this title,
and, as part of such redeterminations, provides
for the automatic reassessment of the
eligibility of such children for assistance
under title XIX and this title.
``(v) Outstationing enrollment staff.--The
State provides for the receipt and initial
processing of applications for benefits under
this title and for children under title XIX at
facilities defined as disproportionate share
hospitals under section 1923(a)(1)(A) and
Federally-qualified health centers described in
section 1905(l)(2)(B) consistent with section
1902(a)(55).''.
SEC. 2. TECHNICAL CORRECTION.
(a) Temporary Increase of the Medicaid FMAP.--Section 401(a)(6)(A)
of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (Public
Law 108-027) is amended by inserting ``after September 2, 2003,'' after
``(42 U.S.C. 1315))''.
(b) Retroactive Effective Date.--The amendment made by subsection
(a) shall take effect as if included in the enactment of section 401 of
the Jobs and Growth Tax Relief Reconciliation Act of 2003 (Public Law
108-027).
Passed the Senate June 26, 2003.
Attest:
Secretary.
108th CONGRESS
1st Session
S. 312
_______________________________________________________________________
AN ACT
To amend title XXI of the Social Security Act to extend the
availability of allotments for fiscal years 1998 through 2001 under the
State Children's Health Insurance Program.