American Spirit Fraud Prevention Act

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3675) to amend the Federal Trade Commission Act to increase civil penalties for violations involving unfair or deceptive acts or practices that exploit popular reaction to an emergency or major disaster, and to authorize the Federal Trade Commission to seek civil penalties for such violations in actions brought under section 13 of that Act.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on this legislation.

Mr. Speaker, I yield myself such time as I may consume.

Since the difficult weeks following the destruction wrought by hurricanes Katrina and Rita, America has witnessed the overpowering kindness of the American heart, the charitable generosity of Americans to help each other. That outpouring of support, financial, spiritual, and otherwise, is beginning to give those who are suffering hope that their communities and lives will finally be rebuilt. The generosity of America is the heart of this great land and is a national treasure that benefits the entire world.

Unfortunately, there are disturbing reports that some unscrupulous persons are again trying to capitalize on the plight of others to make a fast profit and sully the greatness of America and its capability. Like the reports following September 11, fraudsters are again at work trying to take advantage of the kindness of Americans who want to help people who are suffering. And as we learned at the Katrina hearing I held in my subcommittee, the Internet as well as the old-fashioned door-to-door and telephone solicitations again are the tools of choice for those thieves scheming to defraud Americans of their charitable contributions. This is abhorrent and, in my opinion, particularly egregious in times of national tragedy.

While the Federal Government and the States have ways to prosecute these crimes, I think it is absolutely necessary to put those who take advantage of America's charitable generosity on notice that they will face severe penalties. Law enforcement is busy tracking down these thieves, and the Congress needs to make certain that this activity will be aggressively prosecuted once they are exposed and finally brought to justice.

Our response to these crimes also must serve to encourage those who

want to give their time and money to aid those in need to do so without fear of becoming victims themselves. Whether it is phony Web sites, spam e-mail solicitations, or just the old-fashioned scam artist, we must ensure that the financial generosity of Americans to help those in crisis is not slowly corroded by fraud. Charitable giving is a unique American tradition that provides incredible support to relief efforts and their agencies; and it must, Mr. Speaker, be protected.

H.R. 3675, the American Spirit Fraud Prevention Act, would double the civil penalties available to the Federal Trade Commission in their prosecutions of fraudulent schemes that exploit popular reaction to national disasters or emergencies as unfair or deceptive acts or practices. Now, these increased penalties, up to $22,000, would go into effect after a declaration of a national emergency or a national disaster by the President of the United States. A trigger for international disasters also was added to the bill in response to international emergencies like the Asian tsunami and the earthquake in Pakistan.

Mr. Speaker, I believe this is a necessary bill that honors the generosity of all American people by ensuring that the tradition, our proud tradition, of charitable giving remains safe from the now notorious and despicable criminals that seek to steal from the hearts of our fellow Americans.

I would like to thank, in particular, the gentleman from New Hampshire (Mr. Bass) for his steadfast and strong leadership on this issue. He has done a great service to all Americans with this bill. I urge my colleagues to pass H.R. 3675, the American Spirit Fraud Prevention Act.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from New Hampshire (Mr. Bass), who is the author of the bill.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, as the gentleman from New Hampshire has pointed out, we passed this twice before, and this is the third time. This a timely bill. More importantly, it is appropriate, and it is in need of passage more than ever. So I urge my colleagues not only to support it, but also I urge leadership in both Houses to move this bill to the President.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I thank my friend from Florida for yielding me this time. I think I will thank him twice during this speech for what he has been able to do, which was to bring this bill to the floor quickly, along with my friend from Illinois.

As he mentioned, the American Spirit Fraud Prevention Act will double the penalties that the Federal Trade Commission can levy against individuals who commit fraud during times of Presidential emergencies or disasters if the offending action is associated with our response to the disaster.

This would be the third time that I have introduced this bill. It has passed Congress on two previous occasions, and I sincerely hope that it will pass again today.

Americans have opened their hearts and their wallets over and over again in the last 4 or 5 years, donating $2.2 billion in the wake of September 11; $1.3 billion for the tsunami victims; and as of now, over $1.7 billion for Katrina aid. In 2004 alone, charities raised $248.5 billion in the United States.

Americans should be proud that we can come together as a country over and over again even though oftentimes we have to dig a little deep in order to help people who are in trouble.

My hometown of Peterborough got together and adopted a town in Mississippi. We will raise close to $50,000 for this little town in Mississippi by the end of this week. I think that is enormously admirable. The money contributed is carefully accounted for, and it goes to the exact place it needs to go.

However, there is fraud. I understand that the Nation's first Internet charity fraud case involving Hurricane Katrina has been uncovered. An individual has been charged and a Federal indictment is pending for creating a consumer Web site that asked that donations be made on line, purportedly to support humanitarian airlift operations to get victims out of Louisiana. Two people in Los Angeles set up a table outside a big box department store in Burbank and displayed fliers that read, ``Help now. American Red Cross relief for Hurricane Katrina.'' It had no connection whatever with the Red Cross.

Now, as was mentioned before, Federal officials do have some power to prosecute those engaged in fraud, but if we double the penalties at times when Americans are most likely to be wanting to give without doing the proper research that is necessary before any gift is made, I think we will create an extra element of deterrence.

I want to thank again my friend from Florida and my friend from Illinois as chairman and ranking member of the Subcommittee on Commerce, Trade, and Consumer Protection of the Committee on Energy and Commerce for allowing this bill once again to come to the floor of the House. I want to thank Chairman Barton and Ranking Member Dingell as well.

Mr. Speaker, it is time to pass this bill out of the Congress, pass it through the Senate and send it to the President's desk. I look forward to working with my colleagues in the committee and in the House and the Senate and White House to make sure this happens quickly.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 3675, the American Spirit Fraud Prevention Act. Hurricane Katrina was one of the worst natural disasters to have ever struck the United States; and it will take months, if not years, to recover from its wake. Countless lives were lost, and the Nation was confronted with a new reality, a harsh sense of our vulnerabilities. One saving grace, the one ray of hope that helped to combat the pain, suffering, and sadness of the Nation, was the commitment displayed by Americans who were determined to help. As the cities of New Orleans, Gulfport, Biloxi, and others try to regain their footing, residents around the Nation, including the Chicago area, where I am from, have opened their hearts, their homes, and their pocketbooks to provide support to those who have lost so much.

Over $1 billion has been raised for relief efforts and aid to victims of Katrina from donations large and small made by the American public.

Unfortunately, however, there are some in our country who demonstrated the shameful side of humanity by attempting to illegally profit from Katrina. Those individuals tried to exploit the generosity demonstrated by so many through fraudulent solicitations in which they claimed to be representing organizations benefiting the victims or providing emergency response services. While those despicable acts are already illegal, it is necessary for the Congress, on behalf of our constituents, to send a clear message that such behavior will be subject to even more severe penalties in the future.

Under H.R. 3675, the American Spirit Fraud Prevention Act, the maximum civil fines for actions of fraud in an attempt to profit from national emergencies will be doubled. These increased penalties will apply to all violations that occur within 1 year of the time the President declares a disaster and all violations that occurred during and up to 1 year after the expiration of a Presidential emergency declared under the National Emergencies Act.

The American public is caring and committed. We care about the well- being of our neighbors, and we are committed to do what we can to ensure prosperity and security for this Nation. While our government needs to do much more to improve its preparedness and response, we will not allow the generous and caring spirit of the American public to be victimized during a national emergency.

I urge my colleagues to vote in support of this bill.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, due to an excused absence, I missed 3 rollcall votes on the night of Tuesday October 25, 2005. I would like to enter into the record how I would have voted if I had been able to attend the session:

On H.R. 3675, the American Spirit Fraud Prevention Act, I would have voted ``yea.''

On H. Con. Res. 269, a resolution recognizing the 40th anniversary of the White House Fellows Program, I would have voted ``yea.''

On H.R. 3256, a bill to designate the facility of the United States Postal Service located at 3038 West Liberty Avenue in Pittsburgh, Pennsylvania, as the ``Congressman James Grove Fulton Memorial Post Office Building,'' I would have voted ``yea.''

Mr. Speaker, I regret that I missed three votes on October 25, 2005. Had I been present I would have voted ``yes'' on H.R. 3675 (the American Spirit Fraud Prevention Act), H. Con. Res. 269 (Recognizing the 40th anniversary of the White House Fellows Program) and H.R. 3256 (the Congressman James Grove Fulton Memorial Post Office Designation Act).