[Senate Hearing 108-976]
[From the U.S. Government Publishing Office]
S. Hrg. 108-976
NOMINATIONS OF PAMELA HARBOUR
TO BE A COMMISSIONER OF THE
FEDERAL TRADE COMMISSION AND
NICOLE NASON TO BE ASSISTANT SECRETARY
FOR GOVERNMENTAL AFFAIRS FOR
THE DEPARTMENT OF TRANSPORTATION
=======================================================================
HEARING
before the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED EIGHTH CONGRESS
FIRST SESSION
__________
JULY 8, 2003
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
----------
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED EIGHTH CONGRESS
FIRST SESSION
JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska ERNEST F. HOLLINGS, South
CONRAD BURNS, Montana Carolina, Ranking
TRENT LOTT, Mississippi DANIEL K. INOUYE, Hawaii
KAY BAILEY HUTCHISON, Texas JOHN D. ROCKEFELLER IV, West
OLYMPIA J. SNOWE, Maine Virginia
SAM BROWNBACK, Kansas JOHN F. KERRY, Massachusetts
GORDON H. SMITH, Oregon JOHN B. BREAUX, Louisiana
PETER G. FITZGERALD, Illinois BYRON L. DORGAN, North Dakota
JOHN ENSIGN, Nevada RON WYDEN, Oregon
GEORGE ALLEN, Virginia BARBARA BOXER, California
JOHN E. SUNUNU, New Hampshire BILL NELSON, Florida
MARIA CANTWELL, Washington
FRANK R. LAUTENBERG, New Jersey
Jeanne Bumpus, Republican Staff Director and General Counsel
Robert W. Chamberlin, Republican Chief Counsel
Kevin D. Kayes, Democratic Staff Director and Chief Counsel
Gregg Elias, Democratic General Counsel
C O N T E N T S
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Page
Hearing held on July 8, 2003..................................... 1
Statement of Senator Lautenberg.................................. 3
Statement of Senator McCain...................................... 1
Prepared statement........................................... 2
Prepared statement of Representative Hyde.................... 2
Statement of Senator Sununu...................................... 25
Witnesses
Harbour, Pamela Jones, Commissioner-Designate, Federal Trade
Commission..................................................... 4
Prepared statement........................................... 5
Biographical information..................................... 5
Nason, Nicole, Nominated to be Assistant Secretary for
Governmental Affairs, U.S. Department of Transportation........ 14
Prepared statement........................................... 16
Biographical information..................................... 16
NOMINATIONS OF PAMELA HARBOUR
TO BE A COMMISSIONER OF THE FEDERAL
TRADE COMMISSION AND NICOLE NASON
TO BE ASSISTANT SECRETARY FOR
GOVERNMENTAL AFFAIRS FOR THE
DEPARTMENT OF TRANSPORTATION
----------
TUESDAY, JULY 8, 2003
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 9:30 a.m. in room
SR-253, Russell Senate Office Building, Hon. John McCain,
Chairman, presiding.
OPENING STATEMENT OF HON. JOHN McCAIN,
U.S. SENATOR FROM ARIZONA
The Chairman. Good morning. The Commerce Committee meets
today to consider the qualifications of two individuals who
have been nominated by the President to serve the Nation in
very important posts. Ms. Pamela Harbour has been nominated to
be a Commissioner of the Federal Trade Commission, the agency
whose primary mission is to protect consumers. Among Ms.
Harbour's credentials are more than 10 years of service in the
Office of the New York State Attorney General, including over 7
years as Assistant Attorney General in the Antitrust Bureau.
Also here today is Ms. Nicole Nason, who has been nominated
to serve as Assistant Secretary for Governmental Affairs at the
Department of Transportation (DOT). Ms. Nason comes to DOT
after serving in a similar capacity with the U.S. Customs
Service and thus brings a unique perspective to her new
position.
The nominees, if confirmed, will enter their positions at a
very auspicious time. In the coming months Congress will act on
three major DOT programs: the federal highway program,
including the federal safety programs under the jurisdiction of
the Commerce Committee; the Federal Aviation Administration;
and the future of Amtrak.
Congress will also consider important legislation relating
to FTC matters, including two bills recently reported out of
this Committee.
The Committee takes its advice and consent role very
seriously. I will note that each of the nominees has responded
in detail to the Committee's request for biographical and
financial data. I have had the opportunity to review their
responses to the Committee questionnaire as well as prehearing
questions, and I look forward to moving these nominations
quickly.
[The prepared statement of Senator McCain follows:]
Prepared Statement of Hon. John McCain, U.S. Senator from Arizona
Good morning. The Commerce Committee meets today to consider the
qualifications of two individuals who have been nominated by the
President to serve the Nation in very important posts. Ms. Pamela
Harbour has been nominated to be a Commissioner of the Federal Trade
Commission, the agency whose primary mission is to protect consumers.
Among Ms. Harbour's credentials are more than ten years' service in the
Office of the New York State Attorney General, including over seven
years as Assistant Attorney General in the Antitrust Bureau. Also here
today is Ms. Nicole Nason, who has been nominated to serve as Assistant
Secretary for Governmental Affairs at the Department of Transportation
(DOT). Ms. Nason comes to DOT after serving in a similar capacity with
the U.S. Customs Service and thus brings a unique perspective to her
new position.
The nominees, if confirmed, will enter their positions at a very
auspicious time. In the coming months, Congress will act on three major
DOT programs the Federal highway program, including the Federal safety
programs under the jurisdiction of the Commerce Committee, the Federal
Aviation Administration, and the future of Amtrak.
Congress will also consider important legislation relating to FTC
matters, including two bills recently reported out of this Committee:
(1) an FTC reauthorization bill that would, among other things, enhance
the Commission's ability to fight cross-border fraud, and (2) the CAN-
SPAM Act of 2003, which would regulate interstate commerce by imposing
limitations and penalties on the transmission of spam.
This Committee takes its advice and consent role very seriously,
and I will note that each of the nominees has responded in detail to
the Committee's requests for biographical and financial data. I have
had the opportunity to review your responses to the Committee
questionnaire as well as pre-hearing questions, and I look forward to
moving your nominations quickly.
We will begin today by hearing from Ms. Harbour and then proceed to
the consideration of Ms. Nason. I thank the nominees for being here
today. I know your nomination is a great honor, and that your families
are very proud. Please feel free to introduce any family members who
are present here today before you begin your remarks.
I would like to note that Congressman Hyde wanted to be here today
to introduce Ms. Nason, but is unable to attend. His full statement
will be included in the record.
Unless other members of the Committee have opening statements, I
invite Ms. Harbour to give her statement.
The Chairman. We will begin today by hearing from Ms.
Harbour and then proceed to the consideration of Ms. Nason. I
thank the nominees for being here today. I know your nomination
is a great honor, and that your families are very proud. Please
feel free to introduce any family members who are here today
before you begin your remarks.
I would like to note that Congressman Hyde wanted to be
here today to introduce Ms. Nason, but is unable to attend. His
full statement will be included in the record.
[The prepared statement of Representative Hyde follows:]
Prepared Statement of Chairman Henry J. Hyde
It's a pleasure to be able to testify on behalf of Nicole Nason's
nomination to be the Assistant Secretary for Governmental Affairs for
the Department of Transportation.
I know Nicole well. When I was Chairman of the House Committee on
the Judiciary, she worked as a summer intern right after she finished
law school. She was so impressive as a lawyer I retained her on the
full committee staff. When a vacancy arose on the very important Crime
Subcommittee, our former colleague Bill McCollum, the Chair of that
subcommittee, requested that I permit her to join that staff. She
served as Counsel on the House Judiciary Committee and its Subcommittee
on Crime during all the years that I was Chairman of the Committee
(1995-2001). Since matters of criminal law were a major part of the
Committee's work, I got to work closely with Nicole.
I have relied on Nicole's wise counsel on a series of complex and
contentious matters. Having Nicole to advise me during those times gave
me a feeling of comfort. Not only is Nicole an excellent lawyer, but
she also possesses pure common sense. That combination made her an
invaluable asset to me, the Committee, and Congress over the years.
While she was working for Chairman Porter Goss, her understanding
of Congress resulted in the White House recruiting her to work in the
Legislative Affairs office at the Treasury Department.
Nicole's reputation for being able to deal with controversial
issues in a professional, skillful, and tactful manner is well-
deserved. She is well respected on both sides of the aisle, both sides
of the Hill, and in the executive branch. Her nomination itself speaks
for how positively the Administration feels about her knowledge,
skills, and abilities.
I believe she has a comprehensive understanding of the practices
and procedures involved in the legislative process, which makes her an
outstanding candidate for this position.
Mr. Chairman, Members of the Committee, I am confident that Nicole
Nason will acquit herself ably as Assistant Secretary for the Office of
Governmental Affairs for the Department of Transportation. As a
knowledgeable lawyer, and a dedicated professional, Nicole is well-
suited to serving both the Department of Transportation and Congress in
this important capacity.
STATEMENT OF HON. FRANK R. LAUTENBERG,
U.S. SENATOR FROM NEW JERSEY
Senator Lautenberg. Mr. Chairman, Ms. Harbour is from New
Jersey and I would like an opportunity to say something about
her.
The Chairman. I recognize Senator Lautenberg.
Senator Lautenberg. Thank you.
Welcome to both of our candidates. I want to say that in
recommending Ms. Pamela Jones Harbour the President has
nominated someone what is very able and committed to the
mission and that we are proud that she is from New Jersey and
we know that she will do a good job, and we congratulate you on
your nomination.
Ms. Harbour--and I want to point out something about her
background which I think is really distinctive. That is that
she has worked in the private sector as a partner in the
prestigious law firm Kaye Scholer and the public sector as the
New York State Deputy Attorney General and Chief of the
Office's 150-attorney Public Advocacy Division. That is a lot
of attorneys to manage. And I know that she has worked with
you, Mr. Chairman, on boxing reform in that capacity.
Although most of us do not consciously think about the FTC
as we go around our daily lives, this agency deals with issues
that directly affect all Americans.
Mr. Chairman, Ms. Harbour is well qualified to be an FTC
commissioner. She has got extensive experience in consumer
protection, antitrust, trade regulation, product liability, and
is going to help the agency continue its regulatory mission of
striking a balance between maintaining a vigorous marketplace
and ensuring that consumers are appropriately protected.
So I hope that Ms. Harbour will take an active role on an
issue that I am particularly concerned with and that is
tobacco. The FTC is the sole agency with authority over tobacco
through its ability to enforce federal truth in advertising
laws and monitor unfair practices or deceptive claims and
report to Congress on cigarettes and smokeless tobacco
labeling, advertising, and promotion. So I hope Ms. Harbour
will take a leadership role on tackling the tobacco issues.
I am so pleased to speak on her behalf to make the
recommendation I am making. I am convinced that she is going to
serve the American consumer well as she carries out her
responsibilities.
Thank you, Mr. Chairman.
The Chairman. Welcome. Ms. Harbour, we will begin with you.
STATEMENT OF PAMELA JONES HARBOUR, COMMISSIONER-DESIGNATE,
FEDERAL TRADE COMMISSION
Ms. Harbour. Thank you and good morning, Chairman McCain,
Senator Lautenberg.
I come before you today with pride, humility, and grateful
thanks, regardless of your ultimate action on my nomination. My
family is here with me today: my husband John Harbour and my
daughters Victoria, Alexandra, and Catherine; their caregiver
Karmin Rine; my parents Joseph and Verneta Jones; my mother and
father-in-law Rachel and Ed Harbour; my aunt and uncle,
Marzella and Walter Dalkins; my brother-in-law Greg Harbour;
and his niece and nephew, Melissa and James Harbour; and
friends and colleagues.
The Chairman. I welcome all of your family members and I
know this is a very proud moment for them. I think this may be
a record for the most family members ever in attendance, and
congratulations. I know this is a very proud moment for all of
them. Thank you for having them all here today.
Ms. Harbour. Thank you. Their presence, Senator, and
encouragement and unconditional support makes this occasion
possible and even more meaningful to me.
Public service is both an obligation of citizenship and the
greatest professional honor. I served the public for 15 years
in New York State government, including my role as supervisor
of the Attorney General's Antitrust and Consumer Protection
Bureaus.
The antitrust laws are the Magna Carta of the incredible
American free enterprise system, as frequently recognized by
the Supreme Court, a body which I have had the honor to argue
before while upholding those laws. The antitrust laws and the
open competition which they foster and protect work best when
business and consumers meet in a marketplace unsullied by
fraud, deception, and misinformation perpetrated on consumers
and businesses.
The enforcement of antitrust and consumer protection laws,
properly informed by economics, is the mission of the FTC. I
have devoted virtually all of my professional career to these
important legal regimes and I am humbly confident that I can
advance the work of the commission and help extend the benefit
of intelligent antitrust and consumer protection enforcement to
our entire society.
This is my only agenda as I appear before you to offer my
credentials to you, answer your questions, and hopefully win
your confidence and consent to my nomination by the President.
Thank you.
[The prepared statement and biographical information of Ms.
Harbour follow:]
Prepared Statement of Pamela Jones Harbour, Commissioner-Designate,
Federal Trade Commission
Good morning, Chairman McCain, Senator Hollings and distinguished
members of the Committee. I come before you today with pride, humility
and grateful thanks regardless of your ultimate action on my
nomination. My family is here with me today. My husband John Harbour--
and my daughters--Victoria, Alexandra and Catherine. Their presence,
encouragement and unconditional support makes this occasion possible
and even more meaningful.
Public service is both an obligation of citizenship and the
greatest professional honor. I served the public for 15 years in New
York State government, including my role as supervisor of the attorney
general's antitrust and consumer protection bureaus.
The antitrust laws are the Magna Carta of the incredible American
free enterprise system, as frequently recognized by the Supreme Court,
a body which I have had the honor to argue before, while upholding
those laws. The antitrust laws and the open competition which they
foster and protect work best when business and consumers meet in a
marketplace unsullied by fraud, deception and misinformation
perpetrated on consumers and businesses. The enforcement of antitrust
and consumer protection laws, properly informed by economics, is the
mission of the FTC.
I have devoted virtually all of my professional career to these
important legal regimes, and I am humbly confident that I can advance
the work of the Commission and help extend the benefit of intelligent
antitrust and consumer protection enforcement to our entire society.
This is my only agenda as I appear before you, to offer my
credentials to you, answer your questions and hopefully win your
confidence and consent to my nomination by the President.
______
a. biographical information
1. Name (Include any former names or nicknames used.): Pamela Jones
Harbour (``Pamela'') (``Pam'') (formerly: Pamela L Jones or Pamela
LeDeyce Jones).
2. Position to which nominated: Commissioner, Federal Trade
Commission.
3. Date of nomination: June 12, 2003.
4. Address (List current place of residence and office addresses):
Residence: Information not released to the public.
Office: Kaye Scholer LLP 425 Park Avenue, New York, NY 10022.
5. Date and place of birth: July 15, 1959; Queens, New York.
6. Marital status (Include maiden name of wife or husband's name.):
Married to John W. Harbour.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.)
Victoria Heath Harbour (11); Alexandra Taylor Harbour (9);
Catherine Burke Harbour (1).
8. Education: (List secondary and higher education institutions,
dates attended, degree received, and date degree granted.)
Guilderland Central High School--1974-77 (High School Diploma)
Indiana University School of Music--1978-81 (BM 1981)
Indiana University School of Law--1981-84 (JD 1984)
9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
Partner, Kaye Scholer LLP, New York, N.Y., June 1999 to
Present; Assistant First Deputy Attorney General, Executive
Office, Office of the New York State Attorney General, New
York, N.Y., January 1999-May 1999; Deputy Attorney General of
the Public Advocacy Division, Office of the New York State
Attorney General, New York, N.Y., October 1996-December 1998;
Assistant Attorney General, Antitrust Bureau, Office of the New
York State Attorney General, New York, N.Y., January 1989-
October 1996; As a member of both Screen Actors Guild and
AFTRA, I have appeared from time to time in television
commercials and film from 1989 through 1992; Deputy Bureau
Chief, Legal Training Recruitment and Development Bureau,
Office of the New York State Attorney General, New York, N.Y.,
October 1987-December 1988; General Counsel, New York State
Public Transportation Safety Board, New York State Department
of Transportation, Albany, N.Y., August 1985-October 1987;
Assistant Counsel, New York State Department of Transportation,
Albany, N.Y., August 1984-October 1987; Student Legal Services,
Indiana University, Bloomington, IN, 1982-83; Dormitory
Assistant Coordinator and Resident Assistant, Indiana
University, Bloomington, IN, 1981-83; Concession Stand Employee
at NASCAR Grand Prix Race in Detroit, MI, August 1981.
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.)
Board Member, New York City Campaign Finance Board, 2000 to
Present; Member, Chief Judge Judith S. Kaye's New York State
Commission on Public Access to Court Records, 2002 to Present.
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.)
Partner, Kaye Scholer LLP, 1999 to Present.
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
Section Delegate, American Bar Association, Antitrust Section
of Law, 2001 to Present; Antitrust Section Liaison, American
Bar Association Commission on Women, 2001 to Present; Chair,
New York State Bar Association, Antitrust Section, 2003 to
Present; Board Member, New York City Campaign Finance Board,
2000 to Present; Member, Chief Judge Judith S. Kaye's New York
State Commission on Public Access to Court Records, 2002 to
Present; Member, Loyola University Institute for Consumer
Antitrust Studies, 2001 to Present; Choir Member, Christ
Episcopal Church, 1993 to Present; Council Member, American Bar
Association, Antitrust Section of Law, 1997-2001; Chair, State
Antitrust Enforcement Committee, American Bar Association,
Antitrust Section of Law, 1995-1997; Vice Chair, State
Antitrust Enforcement Committee, American Bar Association,
Antitrust Section of Law, 1992-1995; Vice Chair, New York State
Bar Association, Antitrust Section, 2002-2003; Secretary, New
York State Bar Association, Antitrust Section, 2001-2002.
13. Political affiliations and activities:
(a) List all offices with a political party which you have held
or any public office for which you have been a candidate. None.
(b) List all memberships and offices held in and services
rendered to all political parties or election committees during
the last 10 years. None.
(c) Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $500 or more for the past 10
years. None.
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
Award Recipient, Women History Makers, Caribbean Chamber of
Commerce & Industry, NYC March 12, 1998.
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.)
I have authored the following articles, columns, or publications,
individually or with co-authors:
``B2B Basics and Antitrust Issues.'' (ALI-ABA Product
Distribution and Marketing, March 2002)
``A Practical Guide to the Donnelly Act, Antitrust Law in New
York State, Second Edition'' (NYS Bar Association, January
2002) (Editor-in-Chief with Robert L. Hubbard)
``State Attorneys General: The Third Prong in the Antitrust
Triad.'' Antitrust Review of the Americas: A Global Competition
Review Special Report. (Law Business Research 2001) (co-
authored with Robert M. Langer)
``Jury Trials in Antitrust Cases: Juror Competence and Tools
for Increasing Comprehension and Participation by the Antitrust
Jury.'' (ABA Task Force on Civil Practice and Procedure,
September 2001) (co-authored with James V. Kennedy and James A.
Wilson)
``B2B Basics and Antitrust Issues.'' (Emerging Issues for
Competition Policy in the E-Commerce Environment, May 2001; FTC
website, www.ftc.gov/opp/ecommerce/comments/harbour.htm)
``B2B Basics and Antitrust Issues.'' (ALI-ABA Product
Distribution and Marketing, March 2001)
``Antitrust Refusals to Deal.'' (PLI 40th Annual Advanced
Antitrust Seminar, February 2001)
``B2B Basics and Antitrust Issues.'' (Internet Law & Business
andRepresenting the New Media Company, February 2001)
``B2B Basics and Antitrust Issues.'' PLI Representing the New
Media Company, January 2001)
``Refusals to Deal.'' (PLI 39th Annual Advanced Antitrust
Seminar, Distribution and Marketing, February 2000)
``Antitrust Enforcement in the Area of Vertical Trade
Restraints by State Attorneys General.'' (ABA Section of
Antitrust Law Advanced Distribution Workshop: Antitrust and
Advertising Issues, September 1999)
``Non-Price Vertical Restraints: Toward a Rule of Per Se
Legality?'' (ABA Antitrust Section of Law Annual Meeting
Program, August 1999).
``Antitrust Enforcement in the Area of Vertical Trade
Restraints by State Attorneys General.'' (The Westchester
Women's Bar Association of the State of New York, May 1999)
``State Antitrust Law and Enforcement.'' (PLI 40th Annual
Antitrust Law Institute, May 1999) (co-authored with Thomas
Green and Kevin O'Connor)
``Antitrust Enforcement in the Area of Vertical Trade
Restraints by State Attorneys General.'' (PLI 38th Annual
Advanced Antitrust Seminar: Distribution and Marketing, January
1999)
``What are the Implications of The Supreme Court's Decisions in
State Oil Company v. Khan?'' (International Franchise
Association, 31st Annual Legal Symposium, May 1998) (co-
authored with Steven B. Feirman and Paula J. Morency)
``Antitrust Enforcement in the Area of Vertical Restraints by
State Attorneys General.'' (PLI 37th Annual Advanced Antitrust
Seminar: Distribution and Marketing, March 1998)
``Antitrust Enforcement in the Area of Vertical Trade
Restraints by State Attorneys General.'' (13th Annual Advanced
ALI-ABA Course of Study: Product Distribution and Marketing,
March 1998)
``State Antitrust Law and Enforcement.'' (PLI 38th Annual
Antitrust Law Institute, May 1997) (co-authored with Thomas
Greene, Kevin J. O'Connor, and Laurel A. Price)
``Antitrust Enforcement in the Area of Vertical Trade
Restraints by StateAttorneys General.'' (ALI-ABA Course of
Study: Product Distribution and Marketing, March 1997)
``Antitrust Enforcement in the Area of Vertical Trade
Restraints by State Attorneys General.'' (PLI 36th Annual
Advanced Antitrust Seminar, Jan. Feb. 1997)
``Antitrust Enforcement in the Area of Vertical Trade
Restraints by State Attorneys General.'' (Conference jointly
sponsored by the ABA Section of Antitrust Law and the Corporate
Counsel Center of Northwestern University School of Law, May
1995)
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated.
I have given the following speeches during the last 5 years:
B2B Basics and Antitrust Issues, PowerPoint (17th Annual
Advanced ALI-ABA Product Distribution & Marketing, San
Francisco, March 7-9, 2002)
Panelist analyzing e-commerce antitrust issues (FTC Public
Workshop on Emerging Issues for Competition Policy in the World
of E-Commerce, May 7-8, 2001)
B2B Internet Exchanges & Antitrust Implications (16th Annual
Advanced ALI-ABA Product Distribution & Marketing, New Orleans,
March 15-17, 2001)
Refusals to Deal & Termination Issues, (PLI Advanced Antitrust
Seminar: Distribution and Marketing Program, NYC, February 5-6,
2001)
B2B Basics and Antitrust Issues, (PU Representing the New Media
Company, NYC, January 11-12, 2001)
E-Commerce: The Digital Divide (Federal Trade Commission,
Empowerment Through Technology: The African American
Experience, Washington, D.C., February 24, 2000)
Refusals to Deal (PLI 39th Annual Advanced Antitrust Seminar:
Distribution & Marketing, New York City, February 14-15, 2000)
Dealer Termination and Resale Price Maintenance Panel (ABA
Antitrust Section of Law, Advanced Distribution Workshop:
Antitrust and Advertising Issues, New York City, October 1,
1999)
Non-Price Vertical Restraints: Toward a Rule of Per Se
Legality? (ABA Annual Meeting Program, Atlanta, August 9-11,
1999)
Antitrust Federalism (Bundesvergand def Jun Deutschen
Industrie, Cologne, Germany, June 29, 1999)
Government Enforcement Panel (PU 40th Annual Antitrust Law
Institute, New York City, May 14, 1999)
Donnelly Act and Vertical Restraints Lecture (The Westchester
Women's Bar Association of the State of New York Convention
1999, Tarrytown, NY, May 1, 1999)
Vertical Restraints Lecture (PLI 38th Annual Advanced Antitrust
Seminar: Distribution & Marketing, New York City, January 14-
15, 1999)
NAAG Boxing Task Force Speech (World Boxing Council, 36th
Annual World Convention, Johannesburg, South Africa, October
25-31, 1998)
Protecting Consumers Against Exclusionary Conduct (ABA Advanced
Antitrust Counseling Workshop, New York City, September 25,
1998)
17. Selection:
(a) Do you know why you were selected for the position to which
you have been nominated by the President?
It is my understanding that Senator Tom Daschle recommended my
nomination to President Bush to fill the seat being vacated by
Commissioner Sheila Foster Anthony on the Commission. It is my
belief that I was also recommended by others.
(b) What in your background or employment experience do you
believe affirmatively qualifies you for this particular
appointment?
I have considerable leadership and management experience in
government, having served under four New York State Attorneys
General, where the bulk of my practice has focused upon
antitrust and consumer protection matters. As Deputy Attorney
General, I had supervisory responsibility over both the
Antitrust and Consumer Protection Bureaus. In this capacity, I
have coordinated, investigated and prosecuted Federal and state
antitrust violations and represented numerous state attorneys
general in the United States Supreme Court, the United States
Court of Appeals, and various United States District Courts. I
have also counseled clients on a variety of competition and
consumer related matters, including matters before the U.S.
Department of Justice, the Federal Trade Commission and state
attorneys general. I have lectured extensively on antitrust and
consumer protection matters in the U.S. and abroad and have
published numerous articles on antitrust as well.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate? Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, explain. No.
3. Do you have any plans, commitments, or agreements after
completing government service to resume employment, affiliation, or
practice with your previous employer, business firm, association, or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers.
I will receive a final partnership salary payment, from Kaye
Scholer LLP, for my 2003 work in two installments, in January and
April, 2004. The amount of this payment will be determined on or before
the date of my resignation from the firm, and will include a percentage
of the profits from work performed by the firm only up to the day of my
resignation from the firm. I also will be reimbursed the value of my
Kaye Scholer capital account. This value will be fixed on the date of
my resignation and will be paid in three installments, three months,
fifteen months and twenty-seven months after my resignation. Until
these amounts are paid, I will not participate in any particular matter
that would have a direct and predictable effect on Kaye Scholer's
ability or willingness to make these payments. During this time, I also
will seek the advice of an ethics official before participating in any
particular matter involving specific parties in which the firm is a
party or represents a party. I will continue to participate in Kaye
Scholer's 401(k) and HR10 plans. I also will continue to participate in
the New York State pension and 401(k) plans.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
I understand that the following stock holdings or stock options
present potential conflicts of interest under section 18 U.S.C.
Sec. 208(a), although it has been determined that it is not necessary
at this time for me to divest these interests: Johnson & Johnson,
Merck, General Electric, Colorcom, Accelerated I/O Inc., and Blacklight
Power Inc. I will not participate personally and substantially in any
particular matter that will have a direct and predictable effect on the
financial interests of these entities, unless I first obtain a written
waiver or qualify for a regulatory exemption.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated?
During the last 10 years, I have had dealings with and represented
clients in various matters before the FTC. I am aware of the conflict
of interest rules pertaining to these prior dealings. I will abide by
the conflict rules if and when applicable.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
In my capacity as New York State Deputy Attorney General of Public
Advocacy, in April 1999, I organized a bi-partisan group of 22 state
attorneys general who sent a letter to various Senators strongly
endorsing the Muhammad Ali Boxing Reform Act (S. 305), which sought to
curb anti-competitive and fraudulent business practices and prevent
blatant exploitation of professional boxers. My activities focused on
the Senate and House Commerce Committees.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
I am not aware of any potential conflicts of interest other than
the matters previously disclosed and will abide by all applicable
conflicts of interest rules.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain. No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than for a minor traffic offense? lf so, please explain. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain. No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain. No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination. None.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Please explain how if confirmed, you will review regulations
issued by your department/agency, and work closely with Congress, to
ensure that such regulations comply with the spirit of the laws passed
by Congress.
In regard to congressional and Commission interaction, Congress has
a vital and important role to play by conducting reviews of Commission
programs and plans. When Commission enforcement policy changes, for
example, it is appropriate for Congress to request and receive an
explanation. Members of Congress--like other citizens--should feel free
to call illegal activity to the Commission's attention and suggest
rulemaking, litigation and other action. When the Commission has
promulgated a trade regulation rule, Congress may consider its
desirability and, if Congress deems the rule harmful, enact substantive
legislation to undo it. With this in mind, I will review Commission
regulations and work with Congress to ensure that such regulations
fulfill the spirit of the laws passed by Congress.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How does your previous professional experiences and education
qualify you for the position for which you have been nominated? See
response to Questions A9, A12, A15, A16, and 17(b)
2. Why do you wish to serve in the position for which you have been
nominated?
I believe that my professional experience well qualifies me for
this important position. Although I have grown considerably from my
experience as a partner at a great American law firm, my greatest
professional fulfillment has come through government service, to which
I have devoted most of my career. If confirmed, I will work at the
Commission to advance the goal of a strong and competitive U.S. economy
and a business environment which provides high quality and
competitively priced goods and services to a well and accurately
informed consuming public.
3. What goals have you established for your first two years in this
position, if confirmed?
If confirmed, I have no current agenda or policy goals but will
bring to the job a mind objective and open to master the complicated
facts and sophisticated concepts upon which I will be called to
deliberate.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
I lack no specific skills to speak of, but view myself as a
perpetual student of the law and will take the opportunity, if
confirmed, to immerse myself in the substantive work of the Commission.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
I believe that the people of the United States are its government
and that government's essential role is to allow the people to achieve
their personal and collective objectives within our constitutional
framework. The efficacy of government involvement in the private sector
will depend upon the particular issue and the appropriate mandate of a
particular government body. The Federal Trade Commission was conceived
by President Wilson and Louis Brandeis as a new kind of governmental
body. Its mandate was not primarily to intervene in private sector
matters but to work with the private sector to improve the performance
of business for the mutual benefit of consumers and business and
derivatively to improve the manner in which government and business
interact. The antitrust laws are properly viewed as the Magna Carta of
the American system of free enterprise.
For the antitrust laws to fulfill their objectives, the consuming
public must be fully and accurately informed. Congress was wise to
empower a single agency to enforce both consumer protection and
antitrust laws because of the interdependent relationship of these two
legal regimes. Many competitive and informational defects are self-
correcting and should be left to the market for self-correction. The
government, however, should and indeed must intervene when the nature
of the competitive defect is not self-correcting or when market forces
will expunge restraints of trade too slowly or only partially. There is
no general formula for predetermining when government intervention in
private sector behavior, raising questions under the antitrust and
consumer protection laws, is appropriate. These decisions are
contextual and require wisdom, skill, and a proper understanding of
when past government intervention has worked well and when it has not.
Practically speaking, general standards should be used to determine
when government programs are no longer necessary. In the case of the
FTC, for example, I understand that the Commission periodically reviews
past rules, guides, orders, and initiatives and has found that many
were obsolete or inappropriate and thus vacated some 25 percent of its
rules and guides in 1995. Although most of the vacated rules involved
consumer protection initiatives, a few also involved competition
issues. I also understand that, based on complaints by regulated
companies, the Commission instituted reforms that would make the merger
review process more meaningful and efficient before a second request
issued. I believe that the Commission's policy under both Chairman
Muris and former Chairman Pitofsky, of instituting workshops so that
more factual data can be gathered about how present and proposed rules
operate, is a sound one. I believe periodic review is important to
ensure that the rules in place are proper and are still necessary. It
is also a good practice to listen to suggestions from those who are
regulated to assess how the regulatory process might work even more
efficiently.
6. Describe the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated.
The current mission of the FTC is to prevent or correct business
practices that are anticompetitive or deceptive or unfair to consumers;
to enhance informed consumer choice and public understanding of the
competitive process; and to accomplish these missions without unduly
burdening legitimate business activity.
The major programs of the Commission, during the past year, include
the far reaching amendments to the Telemarketing Sales Rule, in the
Privacy area, where the FTC launched its ``Do Not Call'' registry. The
registry will be a central database of telephone numbers of consumers
who choose not to receive telemarketing calls.
Prescription drugs in the health care area is another key program
of the Commission. To help ensure that anticompetitive practices do not
injure consumers by reducing the availability or increasing the price
of drugs, the FTC published a study examining the frequency of
anticompetitive abuses to block market entry of lower-cost generic
drugs. The Commission also provided comments to the Food and Drug
Administration (FDA) on the potential for misusing procedures under the
Hatch-Waxman Amendments governing employing improper efforts to delay
generic entry, also, has been a priority of the Commission.
Recently, the Commission and Department of Justice concluded
extensive hearings on Competition and Intellectual Property Law and
Policy in the Knowledge-Based Economy. The hearings responded to the
growth of the knowledge-based economy; the increasing role of dynamic,
innovation-based considerations in antitrust policy; and the importance
of managing the intersection of intellectual property and competition
law to realize the goal of promoting innovation.
The Commission also has sought to protect competition in the
gasoline market. In a recently issued administrative complaint, the
Commission alleged that Unocal improperly manipulated the process
through which the California Air Resources Board set regulations for
the formulation of low-emissions gasoline. The Commission alleged that
Unocal's anticompetitive conduct potentially could cost California
consumers hundreds of millions of dollars a year in higher gasoline
prices. The case currently is in trial before an administrative law
judge. Gasoline price monitoring is another effort by the Commission
which complements and supports its enforcement in the energy field.
Staff members have analyzed wholesale gasoline prices in more than 20
cities and resale gas prices in 360 cities throughout the U.S. I
understand that the Commission will analyze this data and take any
action deemed appropriate.
The Internet's development has created many consumer issues,
requiring the Commission to draw on its competition and consumer
protection capabilities. The Commission has formed an Internet Task
Force to analyze state regulations that may restrict the entry of new
Internet competitors. Likewise, the Commission hosted public workshops
on spam and potential anticompetitive barriers to e-commerce,
continuing its efforts to keep this medium free from fraud, deception,
and unfair or anticompetitive practices.
In the financial practices area, the Commission has targeted
deceptive lending as an enforcement priority. A court recently
finalized a settlement to resolve charges that a banking company had
engaged in widespread deceptive and abusive practices involving
subprime home mortgage lending. The settlement is expected to provide
$215 million in redress through cash refunds and reduced loan balances
to 2.2 million consumers in the U.S., Puerto Rico, and the Virgin
Islands.
The major operational objective of the Commission's competition
program is to prevent anticompetitive mergers and other anticompetitive
business practices in the marketplace by identifying such mergers and
practices that cause the greatest consumer injury; stemming
anticompetitive mergers and practices through law enforcement; and
preventing consumer injury through education. In the area of consumer
protection the Commission seeks to prevent fraud, deception, and unfair
business practices in the marketplace by identifying practices that
cause the greatest consumer injury; by stopping such practices through
law enforcement, ensuring broad-based protection for consumers and by
preventing consumer injury through education.
7. What do you believe to be the top three challenges facing the
department/agency and why?
A challenge which constantly faces the Commission and the Antitrust
Division as well, is to find and allocate sufficient resources to
engage in non-merger related antitrust investigation and enforcement.
Despite the recent and likely short-term downturn in mergers subject to
Hart-Scott-Rodino review, the agency has for more than twenty years
struggled to devote sufficient resources to non-merger enforcement
under the Commission's Section 5 authority to enforce the Nation's
primary antitrust law, the Sherman Act. The recent downturn in merger
filings should create the opportunity for additional and vital non-
merger antitrust activities. The experience gained and the lessons
learned in these activities should help the Commission strike a new and
a proper balance between merger and non-merger enforcement when merger
activity increases with a rebounding economy.
As is clear from my resume, a good portion of my antitrust work in
government involved prosecuting violations of law relating to so-called
vertical restraints of trade. My extensive experience in this area has
taught me that vertical trade restraints often harm consumers as
clearly as the horizontal trade restraints which the Federal agencies
have focused upon almost exclusively. A clear challenge for the
Commission is to investigate and, when warranted, prosecute vertical
trade restraints. I am sure that the lack of Commission activity in
this area is not justified by any lack of problems in this area or due
to the adequacy of private or state attorney general enforcement. While
the states have traditionally played the lead role in this area, they
and the consuming public need an active and knowledgeable Commission in
this important part of antitrust enforcement.
The Commission has identified deceptive spam as a growing problem,
which it isaddressing through law enforcement efforts, consumer and
business education, and a recent recommendation for legislation to
enhance its effectiveness in fighting spam. The problems caused by
unsolicited commercial e-mail go well beyond the annoyance spam causes
to the public. These problems include the fraudulent and deceptive
content of most spam messages, the sheer volume of spam being sent
across the Internet, and the security issues raised, because spam can
be used to disrupt service or as a vehicle for sending viruses. The
Commission has found that 66 percent of spam contained obvious indicia
of falsity. Moreover, a significant portion of spam is likely to be
routed through foreign servers. For these reasons, the Commission
believes it would be useful to have additional legislative authority,
addressing both procedural and substantive issues, that would enhance
the agency's effectiveness in fighting fraud and deception. The
procedural legislative proposals would improve the Commission's ability
to investigate possible spam perpetrators, and the substantive
legislative proposals would improve the agency's ability to sue the
perpetrators.
8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
The question assumes that the Commission has not achieved its
mission. I am unable to comment on that assumption, with one exception.
That exception being the lack of there are factors, however, which
might prevent the agency from accomplishing its mission such as limited
resources due to budgetary constraints; complexities involved in
assessing new technology and intellectual property; and the ease with
which scam artists have taken to new technology to prey upon consumers.
9. Who are the stakeholders in the work of this department/agency?
The American consumer, the general public, quality producers of
goods and services, members of various congressional committees,
numerous Federal and state agencies and private organizations are the
stakeholders in the work of the Commission.
10. What is the proper relationship between the position to which
you have been nominated, and the stakeholders identified in question
number nine?
The FTC has a unique adjudicative, educational, and investigatory
mission. In relation to the stakeholders, the Commission should be
cognizant of their concerns and responsive when this responsiveness is
consistent with the Commission's investigatory or adjudicative
missions. In fulfilling its duties to the stakeholders, Commissioners
should approach each matter diligently, fairly, well-informed, and with
an open-mind.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.
(a) What do you believe are your responsibilities, if confirmed, to
ensure that your department/agency has proper management and accounting
controls?
The Commission has published a Strategic Plan for Fiscal Years
2000-2005 with clearly articulated performance measures and targets. If
confirmed, it will be essential to familiarize myself with the
strategic plan and other relevant documents to assess proper management
and accounting controls.
(b) What experience do you have in managing a large organization?
In my previous experience as New York State Deputy Attorney General
of Public Advocacy, my duties included oversight of the Attorney
General's Public Advocacy Division which employed over 350 Assistant
Attorneys General and supporting staff, in seven substantive areas of
law (Antitrust, Consumer Protection, Civil Rights, Charities,
Environmental Protection, Investor Protection and Real Estate Finance).
12. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.
(a) What benefits, if any, do you see in identifying performance
goals and reporting on progress in achieving those goals?
Identifying, reporting on and meeting articulated performance goals
provides significant benefits to the American consumer. The cost of the
Commission's operations is a good investment for consumers and
businesses. Effective management of Commission resources provides an
additional benefit to the public. The Commission's internal control
review program, along with its Inspector General's audits, plays a
significant role in ensuring effective and responsive agency
operations.
(b) What steps should Congress consider taking when a department/
agency fails to achieve its performance goals? Should these steps
include the elimination, privatization, downsizing, or consolidation of
departments and/or programs?
When an agency fails to achieve its performance goals, Congress
should determine the reason such goals have not been achieved. If the
failure is due to external factors, such as reduced funding, the above
steps would not appear warranted. Before any such structural actions
are taken, Congress should weigh the benefits and burdens of the
proposed action to the ultimate stakeholders.
(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
If confirmed, the applicable performance goal should be that of an
informed, engaged member of the Commission, who executes her duties
with integrity, intelligence, compassion, selflessness, and honesty. As
these standards apply to my own performance--so, too, should they apply
to our Nation. In the words of Frederick Douglass, ``The life of a
nation is secure only while the Nation is honest, truthful, and
virtuous.''
13. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
My ``philosophy'' in this area precisely matches my practice. I
believe in leadership by example. While I do not follow any particular
supervisory model, I believe in the responsible and appropriate
delegation of authority and the knowledge that those who work with me
will do so intelligently, professionally and with integrity. No
employee complaints have been brought against me.
14. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please explain.
During my tenure as the New York State Deputy Attorney General of
Public Advocacy, I created the National Association of Attorneys
General Boxing Task force, comprised of 18 member states, that
collaborated with Senator John McCain to reform professional boxing in
the U.S. As a member of the Task Force, I and others strongly endorsed
The Muhammad Ali Boxing Reform Act (S. 305) sponsored by Senator
McCain. The final bill, Public Law 106-210, was passed May 26, 2002,
during the 106th Congress.
15. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
Though I have no specific knowledge about the duties of the FTC
Inspector General, my general sense of an Inspector General's role
would be to conduct and supervise audits and investigations relating to
the programs and operations of an agency; to promote economy,
efficiency, and effectiveness in agency administration; to prevent and
detect fraud and abuse in agency programs and operations; and to
provide a means for keeping the head of an agency and the Congress
fully and currently informed about problems and deficiencies relating
to the administration of particular programs and operations and the
necessity for and progress of correct action. In this regard, the
proper relationship should be to fully cooperate with such audits and/
or investigations and not unduly influence or impede the investigatory
process.
16. In the areas under the department/agency's jurisdiction to
which you have been nominated, what legislative action(s) should
Congress consider as priorities? Please state your personal views.
Congress should consider for legislative action unauthorized
commercial e-mail (spam) (a discussion of spam is stated, supra, on
pages 15-16), cross-border fraud, and identity theft.
Cross-border fraud is a growing problem for consumers and
businesses in the U.S. and abroad. During 2002, approximately 14
percent of complaints collected in the FTC's Consumer Sentinel
complaint database involved a cross-border element. The number of
Commission cases involving offshore defendants, offshore evidence, or
offshore assets has also increased. In 2002, the Commission brought
over 20 law enforcement actions involving cross-border fraud. To
address this problem, Chairman Muris announced a Five-Point Plan to
Combat Cross-Border Fraud by (1) Developing OECD Guidelines on cross-
border fraud; (2) Strengthening bilateral and multilateral
relationships with foreign jurisdictions; (3) Continuing public-private
partnerships with industry; (4) Providing technical assistance to
developing countries; and (5) Recommending proposals for legislative
amendments.
Identity fraud was number one on the top ten consumer fraud
complaints in calendar year 2002. In response, the Commission has
implemented a toll-free number as the central clearinghouse for
identity theft complaints and provides a valuable source of consumer
complaint data. The identity theft database now holds more than 430,000
entries. The Commission began making the data available to law
enforcement partners through an online database, and now more than 540
law enforcement agencies access the data. Working with the Secret
Service, the Commission investigators develop preliminary investigative
reports that are referred to regional Financial Crimes Task Forces for
possible prosecution.
17. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set of fair and objective established criteria? If
yes, please explain what steps you intend to take and a time frame for
their implementation. If not, please explain why.
I know that the Commission submits a detailed programmatic budget
to the Congress, together with its Strategic Plan, performance
measures, and audited financial statements. Transparency in the area of
discretionary spending is a laudable goal, and if confirmed, I will
discuss this initiative with my fellow Commissioners.
The Chairman. Thank you very much.
Ms. Nason.
STATEMENT OF NICOLE NASON, NOMINATED TO BE
ASSISTANT SECRETARY FOR GOVERNMENTAL AFFAIRS,
U.S. DEPARTMENT OF TRANSPORTATION
Ms. Nason. Thank you very much, Mr. Chairman.
I am also blessed to have many members of my family here
today: my mother, Janice Robilotto, here from New York; my in-
laws George and Ann Nason, coming from Rhode Island; my husband
David; and my two-year-old daughter Alexandra. I apologize in
advance if she tries to upstage mommy in her developing public
speaking abilities.
Senator Lautenberg. She will get you a lot of votes.
The Chairman. Your family members are very welcome here
today and thank you for coming.
Ms. Nason. Chairman McCain and Members of the Committee:
Thank you for the opportunity to appear before you today to
consider my nomination to be Assistant Secretary for
Governmental Affairs of the Department of Transportation. It is
an honor to be here and a privilege to have been selected by
President Bush and Secretary Mineta for this position.
Mr. Chairman, if confirmed I look forward to working with
this Committee on the many critical pieces of legislation
moving through the Congress this session and next. I would also
like to express my appreciate for the support I have received
from both of my former Chairmen, Congressman Henry Hyde and
Congressman Porter Goss. Although they are both on travel
today, they have been the most reliable and trustworthy
advisers any person could have asked for and I am in their
debt.
Mr. Chairman, as you noted, this is a significant year for
the Department of Transportation as so many of the modes are
facing Congressional reauthorization. If confirmed, I intend to
work closely with all of the modal administrators to help
coordinate their dealings with Congress on the critical issues
they are facing. They have been selected for their positions
because of their expertise in the field and I intend to listen
closely to their concerns so that the Department can speak with
one voice to Congress.
Mr. Chairman, I believe it is my primary responsibility and
the primary responsibility of any government affairs office to
ensure that lines of communication between the Department and
the Congress are always open. If confirmed, it is my goal to be
in constant consultation with Congress and the other
transportation stakeholders to ensure that laws and regulations
are implemented effectively.
I believe it is crucial that the Department complies with
both the letter and the spirit of laws passed and that all
sides fully understand both Congressional history and
Congressional intent with respect to any law.
The opportunity to serve as Assistant Secretary to
President Bush and Secretary Mineta is a great honor. If
confirmed, I know this will be a very interesting and
challenging role, and I look forward to working with you, Mr.
Chairman, and the Members of this Committee to help make
transportation in America the safest and most efficient
possible.
Again, thank you for the opportunity. I look forward to
answering your questions.
[The prepared statement and biographical information of Ms.
Nason follow:]
Prepared Statement of Nicole R. Nason, Nominee for Assistant Secretary
for Governmental Affairs, U.S. Department of Transportation
Chairman McCain, Senator Hollings and members of the Committee,
thank you for the opportunity to appear before you today to consider my
nomination to be Assistant Secretary for Governmental Affairs of the
Department of Transportation. It is an honor to be here and a privilege
to have been selected by President Bush and Secretary Mineta for this
position. Mr. Chairman, if confirmed, I look forward to working with
this Committee on the many critical pieces of legislation moving
through the Congress this session and next.
I also would like to express my appreciation for the support I have
received from both of my former Chairmen, Congressman Henry Hyde and
Congressman Porter Goss. Although they are both on travel today, they
have been the most reliable and trust-worthy advisors any person could
have asked for and I am in their debt. I still approach them both
regularly when I need advice and guidance and their doors are always
open.
This is a significant year for the entire Department, as so many of
the modes are facing congressional reauthorization. If confirmed, I
intend to work closely with all of the modal administrators to help
coordinate their dealings with Congress on the critical issues they are
facing. They have been selected for their positions because of their
expertise in the field, and I intend to listen closely to their
concerns so that the Department can speak with one voice to Congress.
Mr. Chairman, I believe it is the primary responsibility of the
government affairs office to ensure that lines of communication between
the Department and the Congress are always open. If confirmed, it is my
goal to be in constant consultation with Congress and other
transportation stakeholders to ensure that laws and regulations are
implemented effectively. I believe it is crucial that the Department
complies with both the letter and the spirit of the laws passed, and
that all sides fully understand both congressional history and intent
with respect to any law.
The opportunity to serve as Assistant Secretary to President Bush
and Secretary Mineta is a great honor. If confirmed, I know this will
be a very interesting and challenging role, and I look forward to
working with you, Mr. Chairman, and members of the Committee to help
make transportation in America the safest and most efficient possible.
Again, thank you for the opportunity to appear, and I look forward
to answering your questions.
______
a. biographical information
1. Name: (Include any former names or nicknames used.): Nicole
Robilotto Nason.
2. Position to which nominated: Assistant Secretary of
Transportation for Governmental Affairs.
3. Date of nomination: May 14, 2003.
4. Address (List current place of residence and office addresses):
Residence: Information not released to the public.
Office: U.S. Dept. of Transportation, 400 Seventh St., SW,
Washington, D.C. 20590.
5. Date and place of birth: August 12, 1970, Bayshore, New York.
6. Marital status (Include maiden name of wife or husband's name.):
Married to David G. Nason.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.)
Alexandra Hope Nason, born March 29, 2001.
8. Education: (List secondary and higher education institutions,
dates attended, degree received, and date degree granted.)
Case Western Reserve University, Juris Doctorate, 1995
The American University, Bachelor of Arts in Political Science,
1992
9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
Department of Transportation, Consultant, Washington, D.C.,
March 2003 to Present.
U.S. Customs Service, Assistant Commissioner of Congressional
Affairs, Washington, D.C., Jan. 2002-March 2003.
Congressman Porter J. Goss, Communications Director,
Washington, D.C., Sept. 2000-Jan. 2002.
MetLife, Inc. (formerly Metropolitan Life Insurance Company),
Government Relations Counsel, Washington, D.C., March 1999-
August 2000.
U.S. House Committee on the Judiciary, Counsel, Washington,
D.C., Sept. 1995-March 1999.
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.)
Not Applicable.
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.)
MetLife, Inc., Government Relations Office Counsel.
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
Delta Gamma Fraternity, 1989-1992 (Recording Secretary 1990-
1991; Vice President 1991-1992), Student Advisor: 1995-2001;
American Bar Association, 1992-1996 (approx.); Maryland State
Bar Association, 1995-1997 (approx.); Cornerstone School of
Washington, D.C. (local, faith-based elementary school),
sponsor for 1 child, 2000 to Present; Washington Golf & Country
Club (Arlington, VA), Wait List; St. Agnes Catholic Church.
13. Political affiliations and activities:
(a) None
(b) None
(c) To the best of my knowledge, I have made the following
political contributions, although none were over $500.00:
National Governor's Association, 2000; Abraham for Senate,
2000; Rob Portman for Congress, 1999-2000; National Republican
Senatorial Committee, 1999.
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
Suffolk County Police Memorial Scholarship winner, 1988-1992.
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.) None.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated: None.
17. Selection:
(a) I believe I was chosen because of my experience as the
Assistant Commissioner of Congressional Affairs of the U.S. Customs
Service and my time as a staff member in the House of Representatives.
I believe that President Bush and Secretary Mineta focused on my
management experience and familiarity with the legislative process in
determining my suitability as Assistant Secretary of Governmental
Affairs of the Department for Transportation.
(b) Should be confirmed by the U.S. Senate, I will bring my
experience in governmental relations in a variety of positions to my
new role in the Department of Transportation. Having worked as a
committee counsel, a communications director, a lobbyist, and an agency
government relations representative, I am looking forward to being a
part of President Bush's senior legislative team. This is an especially
significant time for transportation interests, and I am eager to work
with the Congress towards passage of the significant transportation
legislative initiatives this session.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate?
Yes, except that I am presently employed by the Department of
Transportation as a consultant.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, explain. No.
3. Do you have any plans, commitments, or agreements after
completing government service to resume employment, affiliation, or
practice with your previous employer, business firm, association, or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. None.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
I am not aware of any conflicts of interest.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated?
I am not aware of any conflicts of interest.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
As a counsel to the House Judiciary Committee, I was engaged in the
passage, defeat or modification of numerous pieces of legislation.
Also, as government relations counsel at MetLife, I lobbied the
Congress in support of several legislative initiatives. Finally, while
serving as the Assistant Commissioner of the U.S. Customs Service, I
represented the Administration's position regarding many bills
affecting the Customs Service and/or the Department of the Treasury. I
have outlined below, to the best of my ability, some of the major
pieces of legislation that I was involved with during the past ten
years.
Judiciary: Several different pieces of antiterrorism legislation;
U.S. Marshals Service oversight legislation; BATF oversight
legislation; H.R. 3633, the Controlled Substances Trafficking
Prohibition Act; H.R. 2070, Correction Officers Health and Safety Act
of 1997; H.R. 1524, Rural Law Enforcement Assistance Act of 1997; H.R.
2829, Bulletproof Vest Partnership Grant Act of 1997; H.R. 2134, Bail
Bond Fairness Act of 1997; H.R. 2380, Internet Gambling Prohibition Act
of 1997; cellular telephone fraud legislation; H.R. 218, Community
Protection Act of 1997; H.R. 339, to provide for a national concealed
firearm standard; H.R. 2380, the Internet Gambling Prohibition Act of
1997; H.R. 1248, the Violence Against Women Act; H.R. 1869, the
``Stalking Prevention and Victim Protection Act of 1999.''
MetLne: Legislation related to electronic signatures, pension
reform and employee benefits, tort reform.
U.S. Customs Service: Legislation related to trade facilitation;
sea, air and land cargo; air passenger manifests; drug smuggling;
antidumping duty enforcement; Jones Act compliance; money laundering.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
Please refer to the Deputy General Counsel's opinion letter.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain. No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than for a minor traffic offense? If so, please explain. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain. No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain. No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination.
I am not aware of any additional information that is not already
covered in other sections of this questionnaire.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees?
Yes, to the best of my ability.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistleblowers from reprisal for
their testimony and disclosures?
Yes, to the best of my ability.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee?
Yes, to the best of my ability.
4. Please explain how if confirmed, you will review regulations
issued by your department/agency, and work closely with Congress, to
ensure that such regulations comply with the spirit of the laws passed
by Congress.
It is my intent to work closely with every modal administrator of
the Department of Transportation to ensure that regulations issued
comport with both the letter and the spirit of the law. Additionally, I
will consult with Members of Congress and staff to gain as clear an
understanding as possible of the congressional intent of a given law.
As a former Member of Congress, Secretary Mineta has a keen
understanding of the importance of complying with legislative intent,
and I will also rely on his judgment and experience to assist me.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How does your previous professional experiences and education
qualify you for the position for which you have been nominated?
My undergraduate degree from The American University was in
political science, and my first exposure to the political process was
as an intern in the House of Representatives. Following college
graduation, I moved to Cleveland to attend Case Western Reserve
University's law school, but I returned immediately to Washington after
I completed my studies to prepare for the Maryland bar and find
employment on Capitol Hill. I spent nearly four years as a committee
counsel for the House Judiciary Committee, most with the Subcommittee
on Crime, and I believe I gained a good understanding of the challenges
associated with the legislative process. I then left to work as a
government relations counsel in the Washington, D.C. office of MetLife,
Inc. As a lobbyist for MetLife, I saw a different and equally important
side to the process--the role of the private sector. When I returned to
government service working for Congressman Porter Goss, I was
privileged to gain both committee and personal office experience in the
role of communications director. After September 11, I was honored to
have been asked by the Administration to serve as the Assistant
Commissioner for Congressional Affairs for the U.S. Customs Service,
and subsequently saw yet another side to the process. I believe that
this wide variety of viewpoints will assist me as I try to understand
all of the different perspectives relative to transportation policy. I
am interested in learning all the various views on a particular issue
because I believe everyone--the Congress, the Administration and the
private sector--can all contribute in a meaningful way to a particular
piece of legislation.
2. Why do you wish to serve in the position for which you have been
nominated?
I believe this nomination represents a wonderful opportunity to
represent two people I greatly admire and respect, President George
Bush and Secretary Norman Mineta. The position will certainly be
challenging, and I am very enthusiastic about learning much more about
transportation law and policy. I think transportation is one of the
most basic and significant needs of the American public, and I am
excited about all of the reauthorization bills coming before the
Congress this year. Also, I believe the Department can contribute
significantly to ensuring the Nation's domestic security, and look
forward to working on that agenda. I can't think of a better time to
get involved with such a fundamentally important department as the
Department of Transportation.
3. What goals have you established for your first two years in this
position, if confirmed?
My primary goal will be to support the President and the Secretary
on all issues that fall within my purview at the Department of
Transportation. If confirmed, I hope to ensure that Congress and the
Administration maintain or improve communication regarding the other's
concerns and needs. I believe that regular and open communication will
be critical to achieve passage of the numerous comprehensive
legislative proposals that must pass this year. I believe that, while
the agenda is very heavy and complex, an open dialog will guarantee
success for all parties.
I also hope to make communication within the Department's
government affairs team even stronger. It is critical that the
Department speaks with one voice. Otherwise we risk confusing the
Congress and the private sector unfairly and unnecessarily. I know that
many employees have new ideas, and I look forward to hearing their
proposals regarding better and more productive meetings, conference
calls, etc.
I will also seek to ensure that the entire government affairs team
at the Department strives to meet the highest ethical standards. I
believe that integrity and credibility are the most important
characteristics of a government relations employee. The Congress must
know that we are honest and straightforward in our dealings, and the
President and the Secretary deserve nothing less.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
I hope and expect to continue to develop my management skills in
this role. I also know that I will have to develop a much more detailed
knowledge base on transportation policy. The role of Assistant
Secretary for Governmental Affairs carries great responsibility, and I
know that I have much to learn from my advisors within the Department
and the policy experts in the Congress.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
I have never believed that government can cure all of society's
problems; however, I do believe that it is incumbent upon all levels of
government to invest in transportation infrastructure. Particularly in
the transportation arena, federal, state and local governments need to
partner with the private sector to benefit the citizenry. Government
investment in transportation infrastructure is not meddling, and I
believe most Americans expect and depend on their elected
representatives to support a strong national transportation system.
This should not mean that the Federal Government has a
responsibility to ``bailout'' every different mode of transportation.
On the contrary, I believe the government has an obligation to show
restraint, and allow the free market to expand or contract based on the
public's needs. The government should not become a public trough for
every transportation industry that has fallen upon hard times. As
recent reports have demonstrated, bad business decisions by the private
sector can cause, or at least contribute to, a corporation's downward
fiscal slide. The government has sensibly embraced a periodic review of
the various modes to determine if emerging trends are positive or
negative for the traveling public.
It is difficult to say at what point exactly the government needs
to intervene and what standards should be used. A strong public-private
partnership should aid in such a determination. With a strong
partnership comes strong communication, and the government can know
sooner of a developing problem. The government then has the option to
insert itself partially or totally to help resolve the potential
crisis. Hopefully, in cases where the market needs to work its will,
the government will not choose to get involved at all.
6. Describe the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated.
The primary responsibility of the Department of Transportation is
to ensure that a safe, efficient and cost-effective transportation
system is available for the traveling public. One of Secretary Mineta's
major goals this year is to promote safety in all modes of
transportation, and I believe that is a very significant and worthwhile
objective. The challenge to each of the appropriate agencies within the
Department is to improve upon its own safety record, and to publicly
promote safety as a top priority. Although safety should not slow
efficiency; both can be achieved when the Department is committed as
the Secretary is--to meeting these twin objectives.
This is an extremely busy year for the Department of
Transportation, as the Administration works with the Congress on
several major legislative reauthorizations. The surface reauthorization
proposal affects many of the modes, including the Federal Highway
Administration, the Federal Transit Administration, the National
Highway Transportation Safety Administration, and the Federal Motor
Carrier Safety Administration. The Administration's proposal for
reauthorization of the Federal Aviation Administration, dubbed ``Flight
100,'' is also a top priority for this session. Another major
operational objective is to work closely with the Congress on a plan to
restructure Amtrak. Considering all these difficult issues, the Office
of Governmental Affairs will need to ensure close coordination between
the Congress and the Administration, so that information is shared
appropriately and inquiries are answered promptly.
7. What do you believe to be the top three challenges facing the
department/agency and why?
As Secretary Mineta has repeatedly stressed, the primary challenge
facing the Department this year is to improve the overall safety
record. For example, although improvements have been made in the rates
of fatalities and injuries on highways, the total numbers are
unacceptably high. Even more troubling is the fact that they are
climbing. There are also attendant economic costs, such as medical and
insurance costs, and loss of workplace productivity. Stressing the
importance of making the national transportation system the safest
possible is a top challenge.
There are numerous additional challenges of the Nation's
transportation system that the Department must tackle this year, during
the reauthorization process. It is difficult to assign a ranking to
these challenges, as all are significant. For example, congestion
mitigation, intermodal connectivity, efficiency, and timely project
delivery are all important. Overall, President Bush and Secretary
Mineta are committed to promoting a safer, simpler and smarter Federal
transportation system.
8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
This is a very significant congressional session for the Department
of Transportation because nearly all of the modes have reauthorization
legislation pending. Although it will be a challenge to give each a
high level of attention, I believe the Department will meet its
mission. It is simply coincidence that smaller modes, such as the
Maritime Administration with its approximately 850 total employees, are
facing major legislative reviews simultaneous to the larger modes, like
the Federal Aviation Administration with its forty-eight thousand
employees. In recent years, the Inspector General has done thorough
reviews of the agencies within the Department of Transportation; and
many of the recommendations are now ready to be implemented during the
reauthorization process. Additionally, much of the focus since
September 11 was on development of the Transportation Security
Administration, which has now been folded into the Department of
Homeland Security. If confirmed, I will help ensure that the Office of
Government Affairs works closely with the Congress to give each agency
the assistance it deserves during this busy session.
9. Who are the stakeholders in the work of this department/agency?
The Department stakeholders are the Congress; the states and
localities; the various transportation industries; and, of course, the
traveling public. If the Department has failed the users of the
transportation system, the traveling public, then the most critical
stakeholders have been forgotten.
10. What is the proper relationship between the position to which
you have been nominated, and the stakeholders identified in question
number nine?
The position of Assistant Secretary requires me to be accountable
to the stakeholders. If confirmed, I intend to learn the issues, listen
to the stakeholders' concerns, and work to resolve any problems. I
believe the primary role of Assistant Secretary for Government Affairs
is to facilitate communication between the stakeholders and help solve
problems.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.
(a) What do you believe are your responsibilities, if confirmed, to
ensure that your department/agency has proper management and accounting
controls?
The primary responsibility for proper management and accounting at
the Department of Transportation is with the Assistant Secretary for
Budget and Programs. who also serves as the Department's Chief
Financial Officer. If confirmed, I intend to work closely with the
Budget Office, to help ensure that Members of Congress get timely
responses to inquiries regarding proper accounting and management. I
also intend to work with the Department's Inspector General tomake sure
that funding is allocated lawfully and appropriately.
(b) What experience do you have in managing a large organization?
As the former head of an agency government affairs office, I was
responsible for supervising an office of approximately twenty
employees. These employees ranged from a GS-6 entry-level to several
GS-15 senior managers. The office operated on an approximately $2
million dollar budget. As Assistant Commissioner, I was responsible for
ensuring that all budgetary needs were appropriately balanced, from
salary to equipment to yearly bonuses. I also conducted all performance
reviews and was responsible for all staffing changes (hires, transfers,
etc.) below the GS-15 level.
12. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.
(a) What benefits, if any, do you see in identifying performance
goals and reporting on progress in achieving those goals?
I believe that measurable performance goals are very helpful for
setting achievable standards over the course of the year. Goals provide
clarity for all employees, and help everyone work towards the same set
of objectives. However, goals must be reviewed periodically, to ensure
that new needs have not overtaken old ones, and performance adjustments
are made as necessary. Otherwise, the value in setting measurable
performance goals is lost. Also, I believe that employees need to have
an active voice in the goal-setting process, so the goals have a
positive meaning for everyone.
(b) What steps should Congress consider taking when a department/
agency fails to achieve its performance goals? Should these steps
include the elimination, privatization, downsizing, or consolidation of
departments and/or programs?
While the Department sets its own goals, many of the Department's
successes or failures are tied to congressional determination.
Reviewing the Department's goals is an appropriate and important role
undertaken by the Congress, but Congress can also help the Department
achieve success by providing the necessary tools and resources. The
Department has failed to meet its goals if it first fails to
communicate regularly with the Congress about its needs and shortfalls.
If the Department doesn't meet its goals, investigation into the
failure must be conducted and Congress should review to determine
whether elimination, privatization, downsizing or consolidation is
necessary. Any of these options may be viable alternatives. The
Department also has the responsibility to learn from its mistakes, to
ensure that they are not repeated.
(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
If confirmed, I believe my first responsibility will be to set
goals relative to the Department's goals for the congressional session.
I believe that any Office of Government Affairs can help guarantee a
Department's success by focusing on communication with stakeholders as
a performance measure. Although this is difficult to quantify, regular
communications can be measured and accounted for by employees. If
confirmed, I hope to do a review with current employees to learn their
perspective on whether the office is operating at a high level of
success. I believe they will expect the Assistant Secretary to
implement necessary changes, and I hope to meet that goal. I also
intend to hire as appropriate to fill any existing or upcoming staffing
vacancies, so work is distributed fairly. I hope to set an example of
integrity and responsiveness, so employees in the office feel that we
are all held to the same high standards.
Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
I believe that employees who feel involved and empowered are more
likely to be enthusiastic in their work. In my experience at the U.S.
Customs Service, I saw that employees were more likely to embrace
additional responsibilities if they felt included in the process. In
other words, people like to know what is going on within an
organization. Information sharing is key to helping people feel like
part of a team. I always maintained an open door policy, so staff could
share concerns at any time. While at Customs, I embraced a model of
``team'' work, so that several people worked on projects together. I
also believe that giving public credit to individuals, even within a
team, is a very important tool. I am not aware of any employee
complaints that have even been brought against me.
14. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please explain.
My professional career has related to working with the Congress in
several different forms. As a committee counsel for the Judiciary
Committee of the House of Representatives, I saw the congressional
perspective on the lawmaking process. When I left the Judiciary
Committee, I took a position as government affairs counsel with
MetLife, Inc. and saw the legislative process from a very different
angle. I planned briefings for Members and staff on MetLife's
legislative priorities, and participated in fundraisers and retreats.
This was unfamiliar work for me, and extremely valuable because I got
to meet numerous congressional staff who didn't focus on Judiciary
Committee issues. When I returned to Congress to work for
Representative Porter J. Goss, I took a position as Communications
Director and was able to learn about a broad range of issues from a
communications perspective. Later, as the Assistant Commissioner for
Government Affairs for the U.S. Customs Service, I interacted with the
Congress on behalf of the Administration regarding primarily cargo,
trade and security issues. I also communicated regularly with a wide
range of Members' personal and district offices concerning their local
port needs.
15. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
The Inspector General has a unique role to play, as he or she is
independently confirmed and required by statute to report to Congress.
The IG needs to remain somewhat insulated, to give an unbiased
accounting to Congress regarding the Department's practices and
activities. If confirmed, I intend to review the IG's reports and
findings carefully, to better understand what concerns the Congress may
have about the Department's practices. Also, I intend to work with the
IG and the Congress as appropriate to assist with implementation of any
needed changes 'within the Department.
16. In the areas under the department/agency's jurisdiction to
which you have been nominated, what legislative action(s) should
Congress consider as priorities? Please state your personal views.
With so many major pieces of legislation up for reauthorization
this year, there are several obvious priorities, and I believe they are
all important. One example is the reauthorization of the Federal
Aviation Administration. The Senate Commerce, Science, and
Transportation Committee has already begun action on the FAA bill. The
Committee's markup represents an important first step in moving this
significant piece of legislation forward. Another major issue for the
Department is the reauthorization of TEA-21, which the Administration
has named SAFETEA. Secretary Mineta has made the focus of this proposal
an overall increase in safety. As the Secretary has stated repeatedly,
it is not acceptable that the Nation suffers approximately 43,000
deaths and over 3 million injuries annually on our highways. If
confirmed, I intend to work closely with all committees of jurisdiction
in the House and Senate on this critical bill. Also very important this
year is the reauthorization of Amtrak. The Senate Commerce Committee
and other committees have already held hearings on various proposals to
reform Amtrak, and if confirmed I intend to work with the committees to
develop consensus legislation for passenger rail reform.
17. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set of fair and objective established criteria? If
yes, please explain what steps you intend to take and a time frame for
their implementation. If not, please explain why.
The discretionary funds allocated by the Department are significant
and must be awarded through an open process. It is important to note
that the percentage of funds over which the Department has discretion
is relatively small. Much of the funding is either earmarked or awarded
to the States for their prioritization. As transportation funding
becomes ever more critical, I believe the Department has an obligation
to ensure that funds are spent on the most necessary and cost-effective
projects. If confirmed, I would immediately begin working with the
Congress and the State and local governments to guarantee that funds
are used in the best and most fiscally prudent manner possible.
The Chairman. Thank you very much. We welcome both
witnesses.
Ms. Nason, I noticed in the news this morning that Michael
Jackson has announced his departure and we note that with great
regret because of the outstanding job that he has done with
this Committee and for the Nation.
Senator Lautenberg, do you have any questions?
Senator Lautenberg. Thank you, Mr. Chairman.
I did not want Ms. Nason to think that I was displeased in
any way with her nomination. But Ms. Harbour, coming from New
Jersey, establishes an inextricable link. So if I neglected, I
do want to say that we are very proud of the appointment that
is being recommended for you as well.
I have this question. Just a few weeks ago the Senate voted
overwhelmingly to adopt an amendment that I offered to S. 824,
the FAA reauthorization bill, to prevent the administration
from privatizing the air traffic control. Now, leading up to
that, though, DOT, the Office of Congressional Affairs, sent an
unsolicited e-mail to Senate staffers in opposition to my
amendment. Not only was the e-mail unsolicited, but it was
factually incorrect. Interestingly, DOT did not send it to my
staff. They had to get it secondhand.
I understand that you, Ms. Nason, have been working as a
consultant to DOT for the past several months. So I am
interested to learn what involvement, if any, you had in
preparing and sending that ATC e-mail.
Ms. Nason. Thank you, Senator Lautenberg. I would be very
concerned to learn if the government affairs office was sending
misinformation through e-mail or any other means of
communication. I think the most important thing any government
affairs office can do is to help facilitate communication
between the Hill and the Administration, and the one most
important responsibility for someone in that office is to be
credible and honest at all times.
So I would be extremely concerned to learn that there was
any kind of misinformation. I assure you I will look into that.
Senator Lautenberg. Please do.
Ms. Harbour--enough with the nice guy stuff. Are there any
areas of consumer protection that are of particular interest to
you at the FTC?
Ms. Harbour. Thank you, Senator. Yes, I have a particular
interest in cross-border consumer protection initiatives. The
Internet and electronic commerce, as we all know, is
boundaryless and cross-border fraud is a growing problem for
consumers and businesses in the United States and abroad. I
understand that in Fiscal Year 2002 approximately 14 percent of
complaints collected at the Federal Trade Commission complaint
database involved a cross-border element, and I know that the
FTC is currently working with foreign countries to develop OECD
guidelines--that is the international Organization for Economic
Cooperation and Development--and that this effort was actually
spearheaded by Commissioner Thompson, who leads the U.S.
delegation to the OECD committee. This cross-border initiative
would also help the Commission fight spam, the unsolicited
commercial e-mails, and would allow sharing with foreign
counterparts.
If confirmed, Senator, I will work with my fellow
commissioners to continue this very important initiative.
Senator Lautenberg. Thank you.
Two FTC chairmen, public health agencies, even cigarette
companies, have recognized that current tar and nicotine rating
system for cigarettes is deeply flawed. It gives false
information to consumers. Ms. Harbour, do you think that the
FTC ought to reexamine whether the rating system that is
presently in place ought to be continued?
Ms. Harbour. I am aware that the rating system for
assessing the tar and the nicotine yields for cigarettes was
promulgated back in 1967 and the science has definitely
progressed since then. I do know that this system does not
mimic the actual smoking behavior of consumers. I am aware that
consumers will compensate in their smoking styles by drawing
deeper, longer, more frequent puffs and that they might
inadvertently cover the air holes in the filter and thereby
negate the benefits that the low tar and nicotine cigarettes
might offer.
I do agree that the current rating system should definitely
be reassessed. I believe, however, that it should be done by a
public Federal agency with scientific-based expertise. I
believe that the FTC has indicated this as well, that a
science-based public agency such as the Health and Human
Services' National Cancer Institute should develop a
methodology for testing this tar and nicotine to see the amount
of yield.
Senator Lautenberg. So you will be looking at that, and we
encourage you to do so because it is believed in many circles
that the advertisements for light, for less, is false, and that
it should be examined by an agency with credibility and
staffing and knowledge to evaluate this and make sure that
people are getting the truth.
Ms. Nason, thank you for your answer to the first question
about the e-mail. We will take you at your word that you will
check on that, please, and see what happened and make certain
that it does not happen again in the future to the best of your
ability.
Mr. Chairman, these are two outstanding candidates and I
hope that, even though the family pictures are beautiful, that
there will be an opportunity to interview that little one
there. I have a granddaughter about her age. I love talking to
them. Maybe that is my class of intellect, Mr. Chairman. I
preempt you on any comment you might want to make.
The Chairman. Thank you very much, Senator Lautenberg.
Senator Sununu.
STATEMENT OF HON. JOHN SUNUNU,
U.S. SENATOR FROM NEW HAMPSHIRE
Senator Sununu. Thank you, Mr. Chairman.
I just want to congratulate both nominees and their
families. This is obviously an important day for you. I wish
you well in your work. I certainly look forward to working with
you.
These are tough positions, challenging positions that deal
with a whole host of complex issues, and they do not get a lot
of accolades and a lot of publicity for the hard work that you
are going to do. But rest assured you will get plenty of
criticism from both friends and foes alike, not just here on
the Committee but elsewhere on Capitol Hill.
So I certainly wish you well in your service and thank you
for serving.
Ms. Harbour. Thank you, Senator.
The Chairman. Both nominees responded in detail to a long
series of questions that were submitted to them and they did so
satisfactorily. I have also reviewed their background
investigations.
I just want to point out, Ms. Harbour, the FTC has
considered and continues to be involved with some very, very
important issues--spam, don't-call lists, a broad variety of
very important issues--and we work very closely with the FTC.
So you assume a very responsible position.
Ms. Nason, as we again approach our oncoming battle over
highway funding--I know of no more acrimonious encounter every
year or so than that--we look forward to working with you very
closely on a broad variety of issues, with our outstanding
Secretary of Transportation Mr. Mineta. As I mentioned earlier,
we will miss Mr. Jackson very much, who we have had a very
close working relationship with.
I congratulate you both. We will move your nominations as
quickly as possible. Hopefully, we will be able to report them
out on Thursday and move them to the floor of the Senate so you
can get to work.
Thank you both for your willingness, your past and present
and future service to our nation. Thank you for being here
today.
Ms. Nason. Thank you very much.
Ms. Harbour. Thank you.
The Chairman. This hearing is adjourned.
[Whereupon, at 9:50 a.m., the hearing was adjourned.]