Floor Statements

Mr. President, as chairman of the Agriculture, Nutrition, and Forestry Committee, I became acutely aware that our pension plans, governmental investors, and charitable endowments were falling victim to swap dealers marketing swaps and security-based swaps that they knew or should have known to be inappropriate or unsuitable for their clients. Jefferson County, AL, is probably the most infamous example, but there are many others in Pennsylvania and across the country. That is why I worked with Senator Harkin and our colleagues in the House to include protections for pension funds, governmental entities, and charitable endowments in the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Those protections--set forth in section 731 and section 764 of the conference report--place certain duties and obligations on swap dealers and security-based swap dealers when they deal with special entities. One of those obligations is that a swap dealer or the security-based swap dealer entering into a swap or security-based swap with a special entity must have a reasonable basis for believing that the special entity has an independent representative evaluating the transaction. Our intention in imposing the independent representative requirement was to ensure that there was always someone independent of the swap dealer or the security-based swap dealer reviewing and approving swap or security-based swap transactions. However, we did not intend to require that the special entity hire an investment manager independent of the special entity. Is that your understanding, Senator Harkin?

Mr. President, I wish to engage my colleague, Senator Dodd, in a brief colloquy related to the section 716, the bank swap desk provision.

In the rush to complete the conference, there was a significant oversight made in finalizing section 716 as it relates to the treatment of uninsured U.S. branches and agencies of foreign banks. Under the U.S. policy of national treatment, which has been part of U.S. law since the International Banking Act of 1978, uninsured U.S. branches and agencies of foreign banks are authorized to engage in the same activities as insured depository institutions. While these U.S. branches and agencies of foreign banks do not have deposits insured by the FDIC, they are registered and regulated by a Federal banking regulator, they have access to the Federal Reserve discount window, and other Federal Reserve credit facilities.

It is my understanding that a number of these U.S. branches and agencies of foreign banks will be swap entities under section 716 and title VII of Dodd-Frank. Due to the fact that the section 716 safe harbor only applies to ``insured depository institutions'' it means that U.S. branches and agencies of foreign banks will be forced to push out all their swaps activities. This result was not intended. U.S. branches and agencies of foreign banks should be subject to the same swap desk push out requirements as insured depository institutions under section 716. Under section 716, insured depository institutions must push out all swaps and security-based swaps activities except for specifically enumerated activities, such as hedging and other similar risk mitigating activities directly related

to the insured depository institution's activities, acting as a swaps entity for swaps or security-based swaps that are permissible for investment, and acting as a swaps entity for cleared credit default swaps. U.S. branches and agencies of foreign banks should, and are willing to, meet the push out requirements of section 716 as if they were insured depository institutions.

This oversight on our part is unfortunate and clearly unintended. Does my colleague agree with me about the need to include uninsured U.S. branches and agencies of foreign banks in the safe harbor of section 716?

Mr. President, I will ask unanimous consent to have printed in the Record a letter that Chairman Dodd and I wrote to Chairmen Frank and Peterson during House consideration of this Conference Report regarding the derivatives title. The letter emphasizes congressional intent regarding commercial end users who enter into swaps contracts.

As we point out, it is clear in this legislation that the regulators only have the authority to set capital and margin requirements on swap dealers and major swap participants for uncleared swaps, not on end users who qualify for the exemption from mandatory clearing.

As the letter also makes clear, it is our intent that the any margin required by the regulators will be risk-based, keeping with the standards we have put into the bill regarding capital. It is in the interest of the financial system and end user counterparties that swap dealers and major swap participants are sufficiently capitalized. At the same time, Congress did not mandate that regulators set a specific margin level. Instead, we granted a broad authority to the regulators to set margin. Again, margin and capital standards must be risk-based and not be punitive.

It is also important to note that few end users will be major swap participants, as we have excluded ``positions held for hedging or mitigating commercial risk'' from being considered as a ``substantial position'' under that definition. I would ask Chairman Dodd whether he concurs with my view of the bill.

Mr. President, I ask unanimous consent to have printed in the Record the letter that Chairman Dodd and I wrote to Chairmen Frank and Peterson to which I referred.

investment adviser

Mr. President, I rise to discuss section 409 of the Dodd-Frank bill, which excludes family offices from the definition of investment adviser under the Investment Advisers Act. In section 409, the SEC is directed to define the term family offices and to provide exemptions that recognize the range of organizational, management, and employment structures and arrangement employed by family offices, and I thought it would be worthwhile to provide guidance on this provision.

For many decades, family offices have managed money for members of individual families, and they do not pose systemic risk or any other regulatory issues. The SEC has provided exemptive relief to some family offices in the past, but many family offices have simply relied on the ``under 15 clients'' exception to the Investment Advisers Act, and when Congress eliminated this exception, it was not our intent to include family offices in the bill.

The bill provides specific direction for the SEC in its rulemaking to recognize that most family offices often have officers, directors, and employees who may not be family members, and who are employed by the family office itself or affiliated entities owned, directly or indirectly, by the family members. Often, such persons co-invest with family members, which enable those persons to share in the profits of investments they oversee and better align the interests of those persons with those of the family members served by the family office. In addition, family offices may have a small number of co-investors such as persons who help identify investment opportunities, provide professional advice, or manage portfolio companies. However, the value of investments by such other persons should not exceed a de minimis percentage of the total value of the assets managed by the family office. Accordingly, section 409 directs the SEC not to exclude a family office from the definition by reason of its providing investment advice to these persons.

I appreciate the Senator's explanation and ask that the Senator work with me to make this point in a technical corrections bill.

I thank the Senator for his leadership and his assistance and cooperation in ensuring the passage of this important bill.

I thank the Senator for her efforts to protect manufacturers. I share the Senator's concerns, which is why our language preserves the ability of manufacturers and businesses to use derivatives to hedge legitimate business risk.

Working closely with the Senator, I believe the legislation reflects our intent by providing a clear and narrow end-user exemption from clearing and margin requirements for derivatives held by companies that are not major swap participants and do not engage in speculation but use these products solely as a risk-management tool to hedge or mitigate commercial risks.

Yes, this legislation recognizes that captive finance companies support the jobs and investments of their parent company. It would ensure that clearing and margin requirements would not be applied to captive finance or affiliate company transactions that are used for legitimate, nonspeculative hedging of commercial risk arising from supporting their parent company's operations. All swap trades, even those which are not cleared, would still be reported to regulators, a swap data repository, and subject to the public reporting requirements under the legislation.

This bill also ensures that these exemptions are tailored and narrow to ensure that financial institutions do not alter behavior to exploit these legitimate exemptions.

Based on the Senator's hard work and interest in captive finance entities of manufacturing companies, I would like to discuss briefly the two captive finance provisions in the legislation and how they work together. The first captive finance provision is found in section 2(h)(7) of the CEA, the ``treatment of affiliates'' provision in the end-user clearing exemption and is entitled ``transition rule for affiliates.'' This provision is available to captive finance entities which are predominantly engaged in financing the purchase of products made by its parent or an affiliate. The provision permits the captive finance entity to use the clearing exemption for not less than two years after the date of enactment. The exact transition period for this provision will be subject to rulemaking. The second captive finance provision differs in two important ways from the first provision. The second captive finance provision does not expire after 2 years. The second provision is a permanent exclusion from the definition of ``financial entity'' for those captive finance entities who use derivatives to hedge commercial risks 90 percent or more of which arise from financing that facilitates the purchase or lease of products, 90 percent or more of which are manufactured by the parent company or another subsidiary of the parent company. It is also limited to the captive finance entity's use of interest rate swaps and foreign exchange swaps. The second captive finance provision is also found in Section 2(h)(7) of the CEA at the end of the definition of ``financial entity.'' Together, these 2 provisions provide the captive finance entities of manufacturing companies with significant relief which will assist in job creation and investment by our manufacturing companies.

It is also critical to ensure that we only exempt those transactions that are used to hedge by manufacturers, commercial entities and a limited number of financial entities. We were surgical in our approach to a clearing exemption, making it as narrow as possible and excluding speculators.

In addition to a narrow end-user exemption, this bill empowers regulators to take action against manipulation. Also, the Commodity Futures Trading Commission and the Securities Exchange Commission will have a broad authority to write and enforce rules to prevent abuse and to go after anyone that attempts to circumvent regulation.

America's consumers and businesses deserve strong derivatives reform that will ensure that the country's financial oversight system promotes and fosters the most honest, open and reliable financial markets in the world.

Mr. President, I share Chairman Harkin's concern about possible unintended consequences the Dodd-Frank Wall Street Reform and Consumer Protection Act could have on pension and welfare plans which provide their participant with stable value fund options. These stable value fund options and their contract wrappers could be viewed as being a swap or a security-based swap. As Chairman Harkin has stated, there is a significant amount of retirement savings in stable value funds, $640 billion, which represents the retirement funds of millions of hardworking Americans. One of my major goals in this legislation was to protect Main Street. We should try to avoid doing any harm to pension plan beneficiaries. When the stable value fund issue was brought to my attention, I knew it was something we had to address. That is why I worked with Chairman Harkin and Senators Leahy and Casey to craft a provision that would give the CFTC and the SEC time to study the issue of whether the stable value fund options and/or the contract wrappers for these stable value funds are ``swaps'' or some other type of financial instrument such as an insurance contract. I think subjecting this issue to further study will provide a measure of stability to participants and beneficiaries in employee benefit plans--including those participants in defined benefit pension plans, 401(k) plans, annuity plans, supplemental retirement plans, 457 plans, 403(b) plans, and voluntary employee beneficiary associations--while allowing the CFTC and SEC to make an informed decision about what the stable value fund options and their contract wrappers are and whether they should be regulated as swaps or security-based swaps. It is a commonsense solution, and I am proud we were able to address this important issue which could affect the retirement funds of millions of pension beneficiaries.

volcker rule

Chairman Dodd and I maintained this provision in the conference report to assure that the Commission has the power to prevent the creation of futures and swaps markets that would allow citizens to profit from devastating events and also prevent gambling through futures markets. I thank the Senator from California for encouraging Chairman Dodd and me to include it. I agree that this provision will strengthen the government's ability to protect the public interest from gaming contracts and other events contracts.

That is our intent. The Commission needs the power to, and should, prevent derivatives contracts that are contrary to the public

interest because they exist predominantly to enable gambling through supposed ``event contracts.'' It would be quite easy to construct an ``event contract'' around sporting events such as the Super Bowl, the Kentucky Derby, and Masters Golf Tournament. These types of contracts would not serve any real commercial purpose. Rather, they would be used solely for gambling.

I do. National security threats, such as a terrorist attack, war, or hijacking pose a real commercial risk to many businesses in America, but a futures contract that allowed people to hedge that risk would also involve betting on the likelihood of events that threaten our national security. That would be contrary to the public interest.

Yes. My good friend from North Carolina is correct. We made some important changes during the conference with respect to the ``major swap participant'' and ``major security-based swap participant'' definitions. When determining whether a person has a ``substantial position,'' the CFTC and the SEC should consider the person's relative position in cleared versus the uncleared swaps and may take into account the value and quality of the collateral held against counterparty exposures. The committee wanted to make it clear that the regulators should distinguish between cleared and uncleared swap positions when defining what a ``substantial position'' would be. Similarly where a person has uncleared swaps, the regulators should consider the value and quality of such collateral when defining ``substantial position.'' Bilateral collateralization and proper segregation substantially reduces the potential for adverse effects on the stability of the market. Entities that are not excessively leveraged and have taken the necessary steps to segregate and fully collateralize swap positions on a bilateral basis with their counterparties should be viewed differently.

In addition, it may be appropriate for the CFTC and the SEC to consider the nature and current regulation of the entity when designating an entity a major swap participant or a major security- based swap participant. For instance, entities such as registered investment companies and employee benefit plans are already subject to extensive regulation relating to their usage of swaps under other titles of the U.S. Code. They typically post collateral, are not overly leveraged, and may not pose the same types of risks as unregulated major swap participants.

As a general rule, the CFTC and the SEC should look at each entity on an individual basis when determining its status as a major swap participant.

Swap Dealer Provisions

Mr. President, as I have previously discussed, section 737 of H.R. 4173 will grant broad authority to the Commodity Futures Trading Commission to once and for all set aggregate position limits across all markets on non-commercial market participants. During consideration of this bill we all learned many valuable lessons about how the commodities markets operate and the impact that highly leveraged, and heretofore unregulated swaps, have on the price discovery function in the futures markets. I believe the adoption of aggregate position limits, along with greater transparency, will help bring some normalcy back to our markets and reduce some of the volatility we have witnessed over the last few years.

I also recognize that in setting these limits, regulators must balance the needs of market participants, while at the same time ensuring that our markets remain liquid so as to afford end-users and producers of commodities the ability to hedge their commercial risk. Along these lines I do believe that there is a legitimate role to be played by market participants that are willing to enter into futures positions opposite a commercial end-user or producer. Through this process the markets gain additional liquidity and accurate price discovery can be found for end-users and producers of commodities.

However, I still hold some reservations about these financial market participants and the negative impact of excessive speculation or long only positions on the commodities markets. While I have concerns about the role these participants play in the markets, I do believe that important distinctions in setting position limits on these participants are warranted. In implementing section 737, I would encourage the CFTC to give due consideration to trading activity that is unleveraged or fully collateralized, solely exchange-traded, fully transparent, clearinghouse guaranteed, and poses no systemic risk to the clearing system. This type of trading activity is distinguishable from highly leveraged swaps trading, which not only poses systemic risk absent the proper safeguards that an exchange traded, cleared system provides, but also may distort price discovery. Further, I

would encourage the CFTC to consider whether it is appropriate to aggregate the positions of entities advised by the same advisor where such entities have different and systematically determined investment objectives.

I wish to also point out that section 719 of the conference report calls for a study of position limits to be undertaken by the CFTC. In conducting that study, it is my expectation that the CFTC will address the soundness of prudential investing by pension funds, index funds and other institutional investors in unleveraged indices of commodities that may also serve to provide agricultural and other commodity contracts with the necessary liquidity to assist in price discovery and hedging for the commercial users of such contracts.

Mr. President, as the Chairman of the Senate Committee on Agriculture, Nutrition and Forestry, I am proud to say that the bill coming out of our committee was the base text for the derivatives title in the Senate passed bill. The Senate passed bill's derivatives title was the base text used by the conference committee. The conference committee made changes to the derivatives title, adopting several provisions from the House passed bill. The additional materials that I am submitting today are primarily focused on the derivatives title of the conference report. They are intended to provide clarifying legislative history regarding certain provisions of the derivatives title and how they are supposed to work together.

I ask unanimous consent that this material be printed in the Record.

Mr. President, today I congratulate William L. Robinson as he celebrates 28 years as pastor of First Baptist Church in North Little Rock. First Baptist is the oldest Black church in North Little Rock, and under Pastor Robinson's leadership, the congregation has thrived for nearly 30 years.

From a young age, Pastor Robinson knew his calling. At the age of 12, he was licensed by Dr. T. M. Chambers, then Pastor of Gaines Street Baptist Church in Little Rock. In 1977, at the age of 17, Pastor Robinson became an ordained minister.

An Arkansas native, Pastor Robinson graduated from historic Little Rock Central High School and earned a bachelor of arts degree in social sciences from Arkansas Baptist College in Little Rock. He is a graduate of Jackson Theological Seminary of Shorter College in North Little Rock.

Recognized as a pillar of the North Little Rock community, Pastor Robinson has been asked to serve in a variety of statewide commissions and leadership roles, including the Martin Luther King Jr. Commission, the Board of Trustees of the William F. Laman Library Commission, and the Executive Board of the Union Rescue Mission and Salvation Army. Pastor Robinson is an Honorary Deputy Sheriff of Pulaski County and a Chaplain of the North Little Rock Police and Sheriff's Office.

Pastor Robinson has also been invited to take part in numerous inaugurations and official events in Arkansas and Washington, DC. He is the visionary of the recently reestablished ``4'' Church Fellowship and serves currently as president. This fellowship consists of local churches coming together to uplift our Savior and the community through quarterly worship services. Most recently, Pastor Robinson served as cochairman of the First Interfaith Christian Conference, ``The Arkansas Gathering,'' featuring nationally known pastors and more than 100 local pastors and their churches for a 4-day retreat.

Pastor Robinson is also a local radio personality in his own right. For more than 26 years, he has promoted First Baptist's ``Sunday Morning at The First,''' a 1 hour broadcast that airs Sunday evening at 5 p.m., reaching all four corners of Arkansas.

I salute Pastor Robinson and the work he does for North Little Rock and the entire state of Arkansas. Along with all Arkansans, I congratulate him for his years of service, and wish him all the best for the years to come.

Mr. President, today I congratulate Arkansan Dr. Fred Bourland, who was recently named the International Cotton Researcher of the Year by the International Cotton Advisory Committee. Dr. Bourland is a cotton breeder and director of the University of Arkansas Division of Agriculture's Northeast Research and Extension Center in Keiser. Dr. Bourland won the award for his innovative cotton breeding achievements.

The Cotton Researcher of the Year award was started in 2009 to help raise awareness of the importance of research to the improvement of the cotton industry and to provide international recognition of exceptional achievements. Dr. Bourland will receive a trophy and $1,000 prize.

I commend Dr. Bourland for his research, which benefits Arkansas's entire cotton farming community. Through his efforts, he represents the best of our Arkansas values: hard work, dedication, and perseverance. He also inspires the next generation of Arkansas leaders as a member of the UA team.

As an Arkansas farmer's daughter, and as chairman of the Senate Agriculture Committee, I understand firsthand and appreciate the hard work and contributions of our Arkansas agriculture community. Agriculture is the backbone of Arkansas's economy, creating more than 270,000 jobs in the state and providing $9.1 billion in wages and salaries. In total, agriculture contributes roughly $15.9 billion to the Arkansas economy each year.

I salute Dr. Bourland and the entire Arkansas agriculture community for their hard work and dedication.

Mr. President, today I congratulate the Rogers- Lowell Area Chamber of Commerce for receiving a five star re- accreditation from the U.S. Chamber of Commerce, the highest accreditation a chamber can receive.

Of the 6,936 chambers in the United States, only 249 of are accredited. Of these, only 66 are accredited with five stars, roughly equal to 1 percent of chambers nationwide. Rogers-Lowell is the only five-star chamber in the State of Arkansas.

The Rogers-Lowell Area Chamber of Commerce was founded in 1922 and is one of the largest chambers in Arkansas. Under the leadership of President and CEO Raymond Burns, members are committed to growing business and building community. I commend Chairman Tom Spillyards, Accreditation Chair Greg Spragg, the Board of Directors, and the entire Chamber membership for their outstanding efforts to better their community.

Located in the center of the booming Northwest Arkansas region and the beautiful Arkansas Ozarks, the Rogers-Lowell area offers quality, growth and opportunity to residents and visitors alike. As one of the most dynamic communities in the region, Rogers and Lowell offer upscale, urban amenities, along with a slower pace, beautiful scenery, and endless outdoor recreational opportunities.

I salute the Rogers-Lowell Area Chamber of Commerce and the entire Rogers community for their efforts to build and grow their community. As my fellow Arkansans know, our state is a beautiful one, and I am proud to see the Rogers-Lowell Chamber of Commerce receive this prestigious accreditation.

Mr. President, today I congratulate the residents of Rogers for being named in the ``Top 10'' list of U.S. small cities, as ranked by Money Magazine.

The community received this recognition for being one of the Nation's

best small cities in which to raise a family. The rankings were determined through criteria examining education, crime rate, housing affordability, jobs, diversity, health care, and arts and leisure.

I also commend Rogers' community leaders, including Raymond Burns, president and chief executive of the Rogers-Lowell Area Chamber of Commerce. The tireless efforts by these leaders to build and maintain a safe, desirable community helped make this top ranking a reality. They represent the best of our state, and I am proud of their accomplishments for their community.

I salute the entire Rogers community for their efforts to maintain the heritage, beauty, and history of their community. I join all Arkansans to express my pride in this jewel of Arkansas.

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. President, I ask unanimous consent to speak as in morning business.

Mr. President, I rise to voice my support for the Dodd- Frank Wall Street Reform Act. As the

chairman of the Senate Agriculture Committee, I was fortunate to play a role in writing some of the most important reforms of this legislation, and that was the derivatives title. This historic legislation the Senate stands poised to approve will rein in the reckless Wall Street behavior that nearly destroyed our economy, hurting Arkansas small businesses and costing millions of Americans their jobs.

In 2008, our Nation's economy was on the brink of collapse. America was being held captive by a financial system that was so interconnected, so large, and so irresponsible that our economy and our way of life were about to be destroyed. I will never forget the sobering meetings at the Capitol with then-Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke, who informed us of the imminent collapse of the U.S. economy. Overnight, the United States of America--the most powerful economic power on the globe--had been brought to the brink of collapse.

Today, American families and small businesses are still managing the consequences of the reckless behavior that occurred on Wall Street and nearly led to our economic collapse. Congress has the duty to the people we represent and to future generations of Americans to ensure that this country's economic security is never again put in that kind of jeopardy. Failure to correct the mistakes of the past is simply unacceptable. That is why I am proud to say that today we stand poised to deliver the historic reform the American people deserve.

This legislation provides 100 percent transparency and accountability to our shattered financial markets and regulatory system. As chairman of the Senate Agriculture Committee, I was proud to help craft the bill's strong derivatives title. This legislation brings a $600 trillion unregulated derivatives market into the light of day, ending the days of Wall Street's backroom deals and putting this money back on Main Street where it belongs. In all of our communities across this Nation, these reforms will get banks back to the business of banking, protecting innocent depositors and ensuring taxpayers will never again have to foot the bill for risky Wall Street gambling.

After spending countless hours on this legislation and digging into the details of the derivatives world, I am here to reassure my colleagues and all Americans that this bill is strong, it is thoughtful, and it is groundbreaking reform that will fundamentally change our financial system for the better. We worked hard to ensure that it would.

It is important to reiterate that this reform is not regulation for regulation sake. It is surgical in its approach. We maintain an end- user exemption, promote restraints on the regulators, where necessary, and provisions that recognize we are competing in a global financial marketplace.

Over the next year, Congress will rely heavily on the regulators for their guidance and expertise as the rules and regulations are written for this legislation. As chairman of the Senate Agriculture Committee-- one of the key committees of oversight--I pledge to be vigilant in this process and retain a watchful eye on those regulators. It is imperative that our vision of strong reform is implemented properly; that everyone should be doing their job--in the legislation we write, the regulations that need to be written to match that, and the oversight to ensure that balance continues. While the regulators must hold the financial system accountable for its actions, Congress must hold the regulators accountable, just as the voters hold us responsible for a lack of meaningful reform.

As the Senator from a rural State, I will also ensure that our community banks are able to continue to meet the lending needs of rural America and will not be subject to unintended consequences. Our community banks did not create this problem and should not have to shoulder the burden of paying for the solution.

America's consumers and businesses deserve strong reform that will ensure that the U.S. financial oversight system promotes and fosters the most honest, open, and reliable financial markets in the world. Our financial markets have long been the envy of the world. The time has come for our country to restore confidence to our shattered financial system. The time has come for us, the United States, to lead by example. We stand poised to deliver that reform today, and I look forward to final passage of this bill.

Finally, a bill of this complexity and importance requires perseverance and long hours, and the dedicated staff of the Senate deserves congratulations. I thank my colleagues, of course, Senator Dodd and his staff, for their tremendous work. In particular, I would like to thank Ed Silverman, the Banking Committee staff director for his dedication to finishing this legislation. I would like to also thank Senator Chambliss, my ranking member on the Senate Agriculture Committee, and his staff for their friendship and eyes and ears throughout this process; Senator Reid and his staff, of course, for their leadership; and the administration and regulators for their extraordinary commitment to this reform bill; and certainly our House colleagues, Chairmen Frank and Peterson--particularly Chairman Peterson of the House Agriculture Committee in particular, and their staffs, for their cooperation and leadership.

I also would like to thank my staff for their unbelievable hard work throughout this process. There were a lot of long nights, a lot of complicated issues, and a lot of dedication on their part to ensuring that what we produced was something that was good and solid for the future of this country, particularly Patrick McCarty, Cory Claussen, Brian Baenig, Julie Anna Potts, Matt Dunn, George Wilder, Courtney Rowe, and Robert Holifield on our Agriculture Committee staff, as well as Anna Taylor on my personal staff.

We have an enormous opportunity to do something that is going to move us forward, understanding that we never get things perfect but, more importantly, that we are willing to step to the plate and to do what we can to make our country strong again, to make our economy strong again, to bring confidence to consumers and investors in this Nation and globally in order to move ourselves forward--not just for ourselves but for future generations. I urge my colleagues to support this conference report, and I look forward to this legislation being signed into law.

I yield the floor and suggest the absence of a quorum.

Mr. President, today I congratulate Girls Inc. of Fort Smith, first place winners in the National Park Foundation's inaugural First Bloom program, in which fourth to sixth graders plan and grow native plants that help educate visitors in national parks across the U.S.

For more than a year, Girls Inc. has tended the ``officers' garden'' at the Fort Smith Historic Site, a part of the National Park Service. To blend in with the history and heritage of the site, the girls wear 1860s attire, complete with a dress, apron, and bonnet. The girls cultivate, plant, water and grow the garden in the way women and girls of that era would have, using plants and seeds that were available in the Civil War-era in Fort Smith. Because of the girls' dedicated efforts, the garden has expanded to twice its original size.

The officers' garden at the Fort Smith site was started 2\1/2\ years ago by park interpreter Keri Powers, who would explain to visitors the significance of having a garden for officers' wives, which not only provided food and medicine, but also was a social space for family and friends to gather.

Girls Inc. competed against students with projects in some of our Nation's most best-known national parks, such as Bryce Canyon in Utah and Glacier Bay in Alaska. Their hard work and perseverance paid off, and I know all Arkansans share my pride in their accomplishments.

As a part of their first place prize, the girls received an all- expenses paid trip to Washington. I was honored to meet with these young girls today, to hear more about their project and their experiences. While in Washington, the girls plan to meet with other members of Arkansas's congressional delegation, tour the National Mall, and visit the White House.

Girls Inc. of Fort Smith represents the best of Arkansas. Along with all Arkansans, I congratulate them for this tremendous achievement.

Mr. President this week ``Harvest of Hope,'' a community organization in my home State of Arkansas, will send 40,000 pounds of rice to the Arkansas Rice Depot, marking a milestone in their donation efforts. The contribution will contain the millionth pound of rice the group has donated, which equals thousands of Arkansans who have received the vital sustenance and nutrition they need.

Harvest of Hope is comprised of community leaders from DeWitt, Batesville, and Malvern who cook and sell smoked meats and use the proceeds to buy rice for the Arkansas Rice Depot. Times are tough for many Arkansans, and I commend these communities for their dedication to helping those in need.

Each community hosts a ``Harvest of Hope'' event annually. DeWitt's Harvest of Hope occurred over the Fourth of July holiday. Batesville and Malvern will hold their Harvest of Hope events this Labor Day.

Hunger is an epidemic in Arkansas and across our Nation. In fact, Arkansas has the highest incidence of childhood hunger in the country. In my role as chairman of the Committee on Agriculture, Nutrition, and Forestry, I have fought to make strong improvements to our child nutrition programs that will put us on a path toward ending childhood hunger.

I commend the communities of DeWitt, Batesville, and Malvern for doing their part to help end hunger in our State. Along with my fellow Arkansans, I will continue my fight to ensure that Arkansans have access to the food and nutrition they need.

Mr. President, this week a time-honored tradition takes place in my home State of Arkansas.

For more than five decades, young women from across the State have gathered each year in Hot Springs to compete in the Miss Arkansas Pageant, the preliminary to the Miss America Pageant. These women represent the best of our State, and I am proud to see them work toward their personal and professional goals as they compete in this event.

Since 1938, the Miss Arkansas Pageant has sent a representative to the Miss America Pageant. In the early days, the Miss Arkansas Pageant was held in various cities across the State, including in my hometown of Helena. In 1957, the pageant moved to Hot Springs, Arkansas's ``Spa City,'' where it has taken place ever since.

This year, 44 contestants seek the title of Miss Arkansas, which will be determined Saturday evening. I wish them all the best as they strive to achieve their goals. I also congratulate Miss Arkansas 2009 Sarah Slocum for the work she has done over the past year representing our state and our Arkansas values. These young women speak well for the future of our state, and I am proud to call them fellow Arkansans.

Mr. President, today I honor SPC Clayton D. McGarrah, 20, of Harrison, who died July 4, 2010, in Arghandab, Afghanistan, in support of Operation Enduring Freedom. According to initial reports, Specialist McGarrah died of injuries sustained when an improvised explosive device detonated near his dismounted patrol, followed by small arms and rocket-propelled grenade fire.

As Arkansans and Americans gathered together to celebrate our freedom, SPC Clayton D. McGarrah made the ultimate sacrifice on behalf of our Nation. My heart goes out to his family for their loss. Along with all Arkansans, I am grateful for Specialist McGarrah's service and for the service and sacrifice of all of our military servicemembers and their families. I am committed to ensuring they have the full support they need and deserve. Our grateful Nation will not forget them when their military service is complete.

Specialist McGarrah was assigned to C Company, 2nd Battalion, 508th Parachute Infantry Regiment, 82nd Airborne Division, Fort Bragg, NC. His wife and parents reside in Harrison.

More than 11,000 Arkansans on Active Duty and more than 10,000 Arkansas Reservists have served in Iraq or Afghanistan since September 11, 2001. These men and women have shown tremendous courage and perseverance through the most difficult of times.As neighbors, as Arkansans, and as Americans, it is incumbent upon us to do everything we can to honor their service and to provide for them and their families, not only when they are in harm's way but also when they return home. It is the least we can do for those whom we owe so much.

Mr. President, today I congratulate the staff, volunteers, and participants of the Striving Toward A New Direction Foundation, or STAND, as they celebrate the recent graduation of 34 members of their Leadership Institute. These graduates represent the best of Arkansas, and I am proud to see them achieve this great honor. They are the future of our State, and all Arkansans should be proud of their accomplishments.

Under the guidance of CEO Tracy Steele, STAND is a nonprofit organization that offers leadership training to promote economic opportunities, social progress, and community development in Arkansas. STAND offers formal leadership training in four cities across the state: Arkadelphia, El Dorado, Little Rock, and Pine Bluff. Named after program coordinator Edward Coleman, the Leadership Institute seeks to provide education and mentoring that will lead to community service and career placement and advancement opportunities.

Graduates leave this program with a stronger sense of self and community, learning constructive ways to make a difference for their fellow citizens. I have seen their efforts in our State, and I know that this program makes a difference in the lives of its participants and the entire Arkansas community.

I again congratulate STAND graduates, faculty, and staff for their work to prepare the future leaders of our State for the opportunities and challenges that await them. They are to be commended for their efforts.

Mr. President, today I recognize three Arkansans who have been recognized as leaders in their professions. These individuals represent the best of their fields, and I am proud of their accomplishments on behalf of our State.

Bobby J. Brooks has been named the 2009 Driver of the Year by the Arkansas Truckers Association.

Kevin McDaniel, vice president of production at O.K. Farms Inc. in Fort Smith, received the Poultry Federation's 2010 Industry Leader of the Year Award.

Kathy Manis Findley was named as the Nonprofit Executive of the Year for her work at Safe Places in Little Rock.

I commend these individuals for their hard work and dedication, as well as the work of all Arkansas professionals who strive to make our State better each and every day.

Mr. President, today I pay tribute to an American hero, Arkansas native Bass Reeves, one of the first African- American U.S. Deputy Marshals west of the Mississippi River. He was one of the most respected lawmen who served the U.S. District Court for the Western District of Arkansas, which had criminal jurisdiction in the Indian Territory, the present State of Oklahoma. He captured more than 3,000 fugitives in his legendary career. Many scholars consider Bass Reeves to be one of the greatest frontier heroes in U.S. history.

Born into slavery in 1838 in Crawford County, AR, and then moved to Texas, Bass fled to Indian Territory during the Civil War and lived with the Seminole and Muscogee (Creek) Indians. Following emancipation, he settled near Van Buren, AR, to raise horses and start a family. He and his wife Nellie Jennie had 10 children: 5 boys and 5 girls.

In 1875, Isaac Parker was appointed U.S. district judge for the Western District of Arkansas, and Bass was recruited to serve as a Deputy U.S. Marshal. He stood 6'2", weighed 180 pounds, and could shoot a pistol or rifle accurately with either hand. He was known for his toughness, intelligence, and detective skills, even though he could neither read nor write.

He arrested some of the most dangerous criminals of the time, repeatedly demonstrating honor and integrity. He had to stand trial himself and was imprisoned for 5 months on a false accusation of murder. Following acquittal, he returned to tracking down and arresting criminals.

Bass served the Federal courts in the Indian Territory for 32 years, from 1875 until 1907 when Oklahoma became a State. At age 68, he became a member of the Muskogee, OK, police department and served until his death from Brights disease on January 12, 1910.

Mr. President, I recognize Deputy U.S. Marshal Bass Reeves as a real American hero.

Madam President, today I congratulate the 2010 winners of the Arkansas Press Association's News-Editorial Contest, who were honored this past weekend during the 2010 Tri-State Convention, cohosted by the press associations of Arkansas, Mississippi and Tennessee. I commend the Arkansas reporters, editors, and staff who were recognized during this prestigious event.

Under the leadership of executive director Tom Larimer, the Arkansas Press Association serves 135 newspapers: 99 weeklies, six semi- weeklies, 28 dailies and 2 free newspapers.

Our Arkansas newspapers inform citizens throughout our State and are an essential part of Arkansas's culture. I appreciate the dedication of all of our Arkansas news media, and I commend them on their commitment to excellence in journalism.

As the oldest professional association in the State, the Arkansas Press Association has a long history of supporting our local newspapers. All Arkansans should be proud of the hard work put in each day by our Arkansas news media, who work tirelessly to fairly and accurately report the news of the day. Their work educates and inspires each one of us, and I am grateful that we live in a society where reporters are able to perform their jobs freely and openly.

I again congratulate all of the winners of this year's conference.

Mr. President, today I recognize Arkansan Jacob Costello of Wesley, winner of the Congressional Award Gold Medal, the highest honor bestowed upon young people by the U.S. Congress. It is the first and only award for youth legislated by the U.S. Congress. I was proud to meet with Jacob in Washington this week and learn more about his experiences achieving this great honor.

Earning the Congressional Award Gold Medal requires a significant commitment. Participants must spend 2 years or more completing at least 400 hours of community service, 200 hours of personal development and physical fitness activities, and a 4-night ``Expedition or Exploration.''

Upon completion of these requirements, young leaders like Jacob from across the United States gather in Washington to honor their commitment to community service and personal improvement. They also have the opportunity to learn more about the federal government and visit Washington's museums and memorials.

Jacob represents the best of our Arkansas values of hard work and determination. His dedication to volunteerism and public service is to be admired by all Arkansans, and I commend him for this tremendous honor.