[Congressional Record Volume 145, Number 165 (Friday, November 19, 1999)]
[Senate]
[Pages S14856-S14863]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             DECEPTIVE MAIL PREVENTION AND ENFORCEMENT ACT

  Ms. COLLINS. Mr. President, I ask the Chair lay before the Senate a 
message from the House of Representatives on the bill (S. 335) to amend 
chapter 30 of title 39, United States Code, to provide for the 
nonmailability of certain deceptive matter relating to sweepstakes, 
skill contests, facsimile checks, administrative procedures, orders, 
and civil penalties relating to such matter, and for other purposes.
  The PRESIDING OFFICER laid before the Senate the following message 
from the House of Representatives:

       Resolved, That the bill from the Senate (S. 335) entitled 
     ``An Act to amend chapter 30 of title 39, United States Code, 
     to provide for the nonmailability of certain deceptive matter 
     relating to sweepstakes, skill contests, facsimile checks, 
     administrative procedures, orders, and civil penalties 
     relating to such matter, and for other purposes'', do pass 
     with the following amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.

           TITLE I--DECEPTIVE MAIL PREVENTION AND ENFORCEMENT

Sec. 101. Short title.
Sec. 102. Restrictions on mailings using misleading references to the 
              United States Government.
Sec. 103. Restrictions on sweepstakes and deceptive mailings.
Sec. 104. Postal service orders to prohibit deceptive mailings.
Sec. 105. Temporary restraining order for deceptive mailings.
Sec. 106. Civil penalties and costs.
Sec. 107. Administrative subpoenas.
Sec. 108. Requirements of promoters of skill contests or sweepstakes 
              mailings.
Sec. 109. State law not preempted.
Sec. 110. Technical and conforming amendments.
Sec. 111. Effective date.

         TITLE II--FEDERAL RESERVE BOARD RETIREMENT PORTABILITY

Sec. 201. Short title.
Sec. 202. Portability of service credit.
Sec. 203. Certain transfers to be treated as a separation from service 
              for purposes of the thrift savings plan.
Sec. 204. Clarifying amendments.

    TITLE III--AMENDMENT TO THE FEDERAL PROPERTY AND ADMINISTRATIVE 
                          SERVICES ACT OF 1949

Sec. 301. Transfer of certain property to State and local governments.
           TITLE I--DECEPTIVE MAIL PREVENTION AND ENFORCEMENT

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Deceptive Mail Prevention 
     and Enforcement Act''.

     SEC. 102. RESTRICTIONS ON MAILINGS USING MISLEADING 
                   REFERENCES TO THE UNITED STATES GOVERNMENT.

       Section 3001 of title 39, United States Code, is amended--
       (1) in subsection (h)--
       (A) in the first sentence by striking ``contains a seal, 
     insignia, trade or brand name, or any other term or symbol 
     that reasonably could be interpreted or construed as implying 
     any Federal Government connection, approval or endorsement'' 
     and inserting the following: ``which reasonably could be 
     interpreted or construed as implying any Federal Government 
     connection, approval, or endorsement through the use of a 
     seal, insignia, reference to the Postmaster General, citation 
     to a Federal statute, name of a Federal agency, department, 
     commission, or program, trade or brand name, or any other 
     term or symbol; or contains any reference to the Postmaster 
     General or a citation to a Federal statute that misrepresents 
     either the identity of the mailer or the protection or status 
     afforded such matter by the Federal Government''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A) by striking ``and'' at the end;
       (ii) in subparagraph (B) by striking ``or'' at the end and 
     inserting ``and''; and
       (iii) by inserting after subparagraph (B) the following:
       ``(C) such matter does not contain a false representation 
     stating or implying that Federal Government benefits or 
     services will be affected by any purchase or nonpurchase; 
     or'';
       (2) in subsection (i) in the first sentence--
       (A) in the first sentence by striking ``contains a seal, 
     insignia, trade or brand name, or any other term or symbol 
     that reasonably could be interpreted or construed as implying 
     any Federal Government connection, approval or endorsement'' 
     and inserting the following: ``which reasonably could be 
     interpreted or construed as implying any Federal Government 
     connection, approval, or endorsement through the use of a 
     seal, insignia, reference to the Postmaster General, citation 
     to a Federal statute, name of a Federal agency, department, 
     commission, or program, trade or brand name, or any other 
     term or symbol; or contains any reference to the Postmaster 
     General or a citation to a Federal statute that misrepresents 
     either the identity of the mailer or the protection or status 
     afforded such matter by the Federal Government''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A) by striking ``and'' at the end;
       (ii) in subparagraph (B) by striking ``or'' at the end and 
     inserting ``and''; and
       (iii) by inserting after subparagraph (B) the following:
       ``(C) such matter does not contain a false representation 
     stating or implying that Federal Government benefits or 
     services will be affected by any contribution or 
     noncontribution; or'';
       (3) by redesignating subsections (j) and (k) as subsections 
     (m) and (n), respectively; and
       (4) by inserting after subsection (i) the following:
       ``(j)(1) Any matter otherwise legally acceptable in the 
     mails which is described in paragraph (2) is nonmailable 
     matter, shall not be carried or delivered by mail, and shall 
     be disposed of as the Postal Service directs.

[[Page S14857]]

       ``(2) Matter described in this paragraph is any matter 
     that--
       ``(A) constitutes a solicitation for the purchase of or 
     payment for any product or service that--
       ``(i) is provided by the Federal Government; and
       ``(ii) may be obtained without cost from the Federal 
     Government; and
       ``(B) does not contain a clear and conspicuous statement 
     giving notice of the information set forth in clauses (i) and 
     (ii) of subparagraph (A).''.

     SEC. 103. RESTRICTIONS ON SWEEPSTAKES AND DECEPTIVE MAILINGS.

       Section 3001 of title 39, United States Code, is amended by 
     inserting after subsection (j) (as added by section 102(4)) 
     the following:
       ``(k)(1) In this subsection--
       ``(A) the term `clearly and conspicuously displayed' means 
     presented in a manner that is readily noticeable, readable, 
     and understandable to the group to whom the applicable matter 
     is disseminated;
       ``(B) the term `facsimile check' means any matter that--
       ``(i) is designed to resemble a check or other negotiable 
     instrument; but
       ``(ii) is not negotiable;
       ``(C) the term `skill contest' means a puzzle, game, 
     competition, or other contest in which--
       ``(i) a prize is awarded or offered;
       ``(ii) the outcome depends predominately on the skill of 
     the contestant; and
       ``(iii) a purchase, payment, or donation is required or 
     implied to be required to enter the contest; and
       ``(D) the term `sweepstakes' means a game of chance for 
     which no consideration is required to enter.
       ``(2) Except as provided in paragraph (4), any matter 
     otherwise legally acceptable in the mails which is described 
     in paragraph (3) is nonmailable matter, shall not be carried 
     or delivered by mail, and shall be disposed of as the Postal 
     Service directs.
       ``(3) Matter described in this paragraph is any matter 
     that--
       ``(A)(i) includes entry materials for a sweepstakes or a 
     promotion that purports to be a sweepstakes; and
       ``(ii)(I) does not contain a statement that discloses in 
     the mailing, in the rules, and on the order or entry form, 
     that no purchase is necessary to enter such sweepstakes;
       ``(II) does not contain a statement that discloses in the 
     mailing, in the rules, and on the order or entry form, that a 
     purchase will not improve an individual's chances of winning 
     with such entry;
       ``(III) does not state all terms and conditions of the 
     sweepstakes promotion, including the rules and entry 
     procedures for the sweepstakes;
       ``(IV) does not disclose the sponsor or mailer of such 
     matter and the principal place of business or an address at 
     which the sponsor or mailer may be contacted;
       ``(V) does not contain sweepstakes rules that state--
       ``(aa) the estimated odds of winning each prize;
       ``(bb) the quantity, estimated retail value, and nature of 
     each prize; and
       ``(cc) the schedule of any payments made over time;
       ``(VI) represents that individuals not purchasing products 
     or services may be disqualified from receiving future 
     sweepstakes mailings;
       ``(VII) requires that a sweepstakes entry be accompanied by 
     an order or payment for a product or service previously 
     ordered;
       ``(VIII) represents that an individual is a winner of a 
     prize unless that individual has won such prize; or
       ``(IX) contains a representation that contradicts, or is 
     inconsistent with sweepstakes rules or any other disclosure 
     required to be made under this subsection, including any 
     statement qualifying, limiting, or explaining the rules or 
     disclosures in a manner inconsistent with such rules or 
     disclosures;
       ``(B)(i) includes entry materials for a skill contest or a 
     promotion that purports to be a skill contest; and
       ``(ii)(I) does not state all terms and conditions of the 
     skill contest, including the rules and entry procedures for 
     the skill contest;
       ``(II) does not disclose the sponsor or mailer of the skill 
     contest and the principal place of business or an address at 
     which the sponsor or mailer may be contacted; or
       ``(III) does not contain skill contest rules that state, as 
     applicable--
       ``(aa) the number of rounds or levels of the contest and 
     the cost to enter each round or level;
       ``(bb) that subsequent rounds or levels will be more 
     difficult to solve;
       ``(cc) the maximum cost to enter all rounds or levels;
       ``(dd) the estimated number or percentage of entrants who 
     may correctly solve the skill contest or the approximate 
     number or percentage of entrants correctly solving the past 3 
     skill contests conducted by the sponsor;
       ``(ee) the identity or description of the qualifications of 
     the judges if the contest is judged by other than the 
     sponsor;
       ``(ff) the method used in judging;
       ``(gg) the date by which the winner or winners will be 
     determined and the date or process by which prizes will be 
     awarded;
       ``(hh) the quantity, estimated retail value, and nature of 
     each prize; and
       ``(ii) the schedule of any payments made over time; or
       ``(C) includes any facsimile check that does not contain a 
     statement on the check itself that such check is not a 
     negotiable instrument and has no cash value.
       ``(4) Matter that appears in a magazine, newspaper, or 
     other periodical shall be exempt from paragraph (2) if such 
     matter--
       ``(A) is not directed to a named individual; or
       ``(B) does not include an opportunity to make a payment or 
     order a product or service.
       ``(5) Any statement, notice, or disclaimer required under 
     paragraph (3) shall be clearly and conspicuously displayed. 
     Any statement, notice, or disclaimer required under subclause 
     (I) or (II) of paragraph (3)(A)(ii) shall be displayed more 
     conspicuously than would otherwise be required under the 
     preceding sentence.
       ``(6) In the enforcement of paragraph (3), the Postal 
     Service shall consider all of the materials included in the 
     mailing and the material and language on and visible through 
     the envelope or outside cover or wrapper in which those 
     materials are mailed.
       ``(l)(1) Any person who uses the mails for any matter to 
     which subsection (h), (i), (j), or (k) applies shall adopt 
     reasonable practices and procedures to prevent the mailing of 
     such matter to any person who, personally or through a 
     conservator, guardian, or individual with power of attorney--
       ``(A) submits to the mailer of such matter a written 
     request that such matter should not be mailed to such person; 
     or
       ``(B)(i) submits such a written request to the attorney 
     general of the appropriate State (or any State government 
     officer who transmits the request to that attorney general); 
     and
       ``(ii) that attorney general transmits such request to the 
     mailer.
       ``(2) Any person who mails matter to which subsection (h), 
     (i), (j), or (k) applies shall maintain or cause to be 
     maintained a record of all requests made under paragraph (1). 
     The records shall be maintained in a form to permit the 
     suppression of an applicable name at the applicable address 
     for a 5-year period beginning on the date the written request 
     under paragraph (1) is submitted to the mailer.''.

     SEC. 104. POSTAL SERVICE ORDERS TO PROHIBIT DECEPTIVE 
                   MAILINGS.

       Section 3005(a) of title 39, United States Code, is 
     amended--
       (1) by striking ``or'' after ``(h),'' each place it 
     appears; and
       (2) by inserting ``, (j), or (k)'' after ``(i)'' each place 
     it appears.

     SEC. 105. TEMPORARY RESTRAINING ORDER FOR DECEPTIVE MAILINGS.

       (a) In General.--Section 3007 of title 39, United States 
     Code, is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by striking subsection (a) and inserting the following:
       ``(a)(1) In preparation for or during the pendency of 
     proceedings under section 3005, the Postal Service may, under 
     the provisions of section 409(d), apply to the district court 
     in any district in which mail is sent or received as part of 
     the alleged scheme, device, lottery, gift enterprise, 
     sweepstakes, skill contest, or facsimile check or in any 
     district in which the defendant is found, for a temporary 
     restraining order and preliminary injunction under the 
     procedural requirements of rule 65 of the Federal Rules of 
     Civil Procedure.
       ``(2)(A) Upon a proper showing, the court shall enter an 
     order which shall--
       ``(i) remain in effect during the pendency of the statutory 
     proceedings, any judicial review of such proceedings, or any 
     action to enforce orders issued under the proceedings; and
       ``(ii) direct the detention by the postmaster, in any and 
     all districts, of the defendant's incoming mail and outgoing 
     mail, which is the subject of the proceedings under section 
     3005.
       ``(B) A proper showing under this paragraph shall require 
     proof of a likelihood of success on the merits of the 
     proceedings under section 3005.
       ``(3) Mail detained under paragraph (2) shall--
       ``(A) be made available at the post office of mailing or 
     delivery for examination by the defendant in the presence of 
     a postal employee; and
       ``(B) be delivered as addressed if such mail is not clearly 
     shown to be the subject of proceedings under section 3005.
       ``(4) No finding of the defendant's intent to make a false 
     representation or to conduct a lottery is required to support 
     the issuance of an order under this section.
       ``(b) If any order is issued under subsection (a) and the 
     proceedings under section 3005 are concluded with the 
     issuance of an order under that section, any judicial review 
     of the matter shall be in the district in which the order 
     under subsection (a) was issued.''.
       (b) Repeal.--
       (1) In general.--Section 3006 of title 39, United States 
     Code, and the item relating to such section in the table of 
     sections for chapter 30 of such title are repealed.
       (2) Conforming amendments.--(A) Section 3005(c) of title 
     39, United States Code, is amended by striking ``section and 
     section 3006 of this title,'' and inserting ``section,''.
       (B) Section 3011(e) of title 39, United States Code, is 
     amended by striking ``3006, 3007,'' and inserting ``3007''.

     SEC. 106. CIVIL PENALTIES AND COSTS.

       Section 3012 of title 39, United States Code, is amended--
       (1) in subsection (a) by striking ``$10,000 for each day 
     that such person engages in conduct described by paragraph 
     (1), (2), or (3) of this subsection.'' and inserting 
     ``$50,000 for each mailing of less than 50,000 pieces; 
     $100,000 for each mailing of 50,000 to 100,000 pieces; with 
     an additional $10,000 for each additional 10,000 pieces above 
     100,000, not to exceed $2,000,000.'';
       (2) in paragraphs (1) and (2) of subsection (b) by 
     inserting after ``of subsection (a)'' the following: ``, (c), 
     or (d)'';
       (3) by redesignating subsections (c) and (d), as 
     subsections (e) and (f), respectively; and
       (4) by inserting after subsection (b) the following:
       ``(c)(1) In any proceeding in which the Postal Service may 
     issue an order under section

[[Page S14858]]

     3005(a), the Postal Service may in lieu of that order or as 
     part of that order assess civil penalties in an amount not to 
     exceed $25,000 for each mailing of less than 50,000 pieces; 
     $50,000 for each mailing of 50,000 to 100,000 pieces; with an 
     additional $5,000 for each additional 10,000 pieces above 
     100,000, not to exceed $1,000,000.
       ``(2) In any proceeding in which the Postal Service 
     assesses penalties under this subsection the Postal Service 
     shall determine the civil penalty taking into account the 
     nature, circumstances, extent, and gravity of the violation 
     or violations of section 3005(a), and with respect to the 
     violator, the ability to pay the penalty, the effect of the 
     penalty on the ability of the violator to conduct lawful 
     business, any history of prior violations of such section, 
     the degree of culpability and other such matters as justice 
     may require.
       ``(d) Any person who violates section 3001(l) shall be 
     liable to the United States for a civil penalty not to exceed 
     $10,000 for each mailing to an individual.''.

     SEC. 107. ADMINISTRATIVE SUBPOENAS.

       (a) In General.--Chapter 30 of title 39, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 3016. Administrative subpoenas

       ``(a) Subpoena Authority.--
       ``(1) Investigations.--
       ``(A) In general.--In any investigation conducted under 
     section 3005(a), the Postmaster General may require by 
     subpoena the production of any records (including books, 
     papers, documents, and other tangible things which constitute 
     or contain evidence) which the Postmaster General considers 
     relevant or material to such investigation.
       ``(B) Condition.--No subpoena shall be issued under this 
     paragraph except in accordance with procedures, established 
     by the Postal Service, requiring that--
       ``(i) a specific case, with an individual or entity 
     identified as the subject, be opened before a subpoena is 
     requested;
       ``(ii) appropriate supervisory and legal review of a 
     subpoena request be performed; and
       ``(iii) delegation of subpoena approval authority be 
     limited to the Postal Service's General Counsel or a Deputy 
     General Counsel.
       ``(2) Statutory proceedings.--In any statutory proceeding 
     conducted under section 3005(a), the Judicial Officer may 
     require by subpoena the attendance and testimony of witnesses 
     and the production of any records (including books, papers, 
     documents, and other tangible things which constitute or 
     contain evidence) which the Judicial Officer considers 
     relevant or material to such proceeding.
       ``(3) Rule of construction.--Nothing in paragraph (2) shall 
     be considered to apply in any circumstance to which paragraph 
     (1) applies.
       ``(b) Service.--
       ``(1) Service within the united states.--A subpoena issued 
     under this section may be served by a person designated under 
     section 3061 of title 18 at any place within the territorial 
     jurisdiction of any court of the United States.
       ``(2) Foreign service.--Any such subpoena may be served 
     upon any person who is not to be found within the territorial 
     jurisdiction of any court of the United States, in such 
     manner as the Federal Rules of Civil Procedure prescribe for 
     service in a foreign country. To the extent that the courts 
     of the United States may assert jurisdiction over such person 
     consistent with due process, the United States District Court 
     for the District of Columbia shall have the same jurisdiction 
     to take any action respecting compliance with this section by 
     such person that such court would have if such person were 
     personally within the jurisdiction of such court.
       ``(3) Service on business persons.--Service of any such 
     subpoena may be made upon a partnership, corporation, 
     association, or other legal entity by--
       ``(A) delivering a duly executed copy thereof to any 
     partner, executive officer, managing agent, or general agent 
     thereof, or to any agent thereof authorized by appointment or 
     by law to receive service of process on behalf of such 
     partnership, corporation, association, or entity;
       ``(B) delivering a duly executed copy thereof to the 
     principal office or place of business of the partnership, 
     corporation, association, or entity; or
       ``(C) depositing such copy in the United States mails, by 
     registered or certified mail, return receipt requested, duly 
     addressed to such partnership, corporation, association, or 
     entity at its principal office or place of business.
       ``(4) Service on natural persons.--Service of any subpoena 
     may be made upon any natural person by--
       ``(A) delivering a duly executed copy to the person to be 
     served; or
       ``(B) depositing such copy in the United States mails, by 
     registered or certified mail, return receipt requested, duly 
     addressed to such person at his residence or principal office 
     or place of business.
       ``(5) Verified return.--A verified return by the individual 
     serving any such subpoena setting forth the manner of such 
     service shall be proof of such service. In the case of 
     service by registered or certified mail, such return shall be 
     accompanied by the return post office receipt of delivery of 
     such subpoena.
       ``(c) Enforcement.--
       ``(1) In general.--Whenever any person, partnership, 
     corporation, association, or entity fails to comply with any 
     subpoena duly served upon him, the Postmaster General may 
     request that the Attorney General seek enforcement of the 
     subpoena in the district court of the United States for any 
     judicial district in which such person resides, is found, or 
     transacts business, and serve upon such person a petition for 
     an order of such court for the enforcement of this section.
       ``(2) Jurisdiction.--Whenever any petition is filed in any 
     district court of the United States under this section, such 
     court shall have jurisdiction to hear and determine the 
     matter so presented, and to enter such order or orders as may 
     be required to carry into effect the provisions of this 
     section. Any final order entered shall be subject to appeal 
     under section 1291 of title 28, United States Code. Any 
     disobedience of any final order entered under this section by 
     any court may be punished as contempt.
       ``(d) Disclosure.--Any documentary material provided 
     pursuant to any subpoena issued under this section shall be 
     exempt from disclosure under section 552 of title 5, United 
     States Code.''.
       (b) Regulations.--Not later than 120 days after the date of 
     the enactment of this section, the Postal Service shall 
     promulgate regulations setting out the procedures the Postal 
     Service will use to implement the amendment made by 
     subsection (a).
       (c) Semiannual Reports.--Section 3013 of title 39, United 
     States Code, is amended by striking ``and'' at the end of 
     paragraph (4), by redesignating paragraph (5) as paragraph 
     (6), and by inserting after paragraph (4) the following:
       ``(5) the number of cases in which the authority described 
     in section 3016 was used, and a comprehensive statement 
     describing how that authority was used in each of those 
     cases; and''.
       (d) Technical and Conforming Amendment.--The table of 
     sections for chapter 30 of title 39, United States Code, is 
     amended by adding at the end the following:

``3016. Administrative subpoenas.''.

     SEC. 108. REQUIREMENTS OF PROMOTERS OF SKILL CONTESTS OR 
                   SWEEPSTAKES MAILINGS.

       (a) In General.--Chapter 30 of title 39, United States Code 
     (as amended by section 107) is amended by adding after 
     section 3016 the following:

     ``Sec. 3017. Nonmailable skill contests or sweepstakes 
       matter; notification to prohibit mailings

       ``(a) Definitions.--In this section--
       ``(1) the term `promoter' means any person who--
       ``(A) originates and mails any skill contest or 
     sweepstakes, except for any matter described in section 
     3001(k)(4); or
       ``(B) originates and causes to be mailed any skill contest 
     or sweepstakes, except for any matter described in section 
     3001(k)(4);
       ``(2) the term `removal request' means a request stating 
     that an individual elects to have the name and address of 
     such individual excluded from any list used by a promoter for 
     mailing skill contests or sweepstakes;
       ``(3) the terms `skill contest', `sweepstakes', and 
     `clearly and conspicuously displayed' have the same meanings 
     as given them in section 3001(k); and
       ``(4) the term `duly authorized person', as used in 
     connection with an individual, means a conservator or 
     guardian of, or person granted power of attorney by, such 
     individual.
       ``(b) Nonmailable Matter.--
       ``(1) In general.--Matter otherwise legally acceptable in 
     the mails described in paragraph (2)--
       ``(A) is nonmailable matter;
       ``(B) shall not be carried or delivered by mail; and
       ``(C) shall be disposed of as the Postal Service directs.
       ``(2) Nonmailable matter described.--Matter described in 
     this paragraph is any matter that--
       ``(A) is a skill contest or sweepstakes, except for any 
     matter described in section 3001(k)(4); and
       ``(B)(i) is addressed to an individual who made an election 
     to be excluded from lists under subsection (d); or
       ``(ii) does not comply with subsection (c)(1).
       ``(c) Requirements of Promoters.--
       ``(1) Notice to individuals.--Any promoter who mails a 
     skill contest or sweepstakes shall provide with each mailing 
     a statement that--
       ``(A) is clearly and conspicuously displayed;
       ``(B) includes the address or toll-free telephone number of 
     the notification system established under paragraph (2); and
       ``(C) states that the notification system may be used to 
     prohibit the mailing of all skill contests or sweepstakes by 
     that promoter to such individual.
       ``(2) Notification system.--Any promoter that mails or 
     causes to be mailed a skill contest or sweepstakes shall 
     establish and maintain a notification system that provides 
     for any individual (or other duly authorized person) to 
     notify the system of the individual's election to have the 
     name and address of the individual excluded from all lists of 
     names and addresses used by that promoter to mail any skill 
     contest or sweepstakes.
       ``(d) Election To Be Excluded From Lists.--
       ``(1) In general.--An individual (or other duly authorized 
     person) may elect to exclude the name and address of that 
     individual from all lists of names and addresses used by a 
     promoter of skill contests or sweepstakes by submitting a 
     removal request to the notification system established under 
     subsection (c).
       ``(2) Response after submitting removal request to the 
     notification system.--Not later than 60 calendar days after a 
     promoter receives a removal request pursuant to an election 
     under paragraph (1), the promoter shall exclude the 
     individual's name and address from all lists of names and 
     addresses used by that promoter to select recipients for any 
     skill contest or sweepstakes.
       ``(3) Effectiveness of election.--An election under 
     paragraph (1) shall remain in effect, unless an individual 
     (or other duly authorized

[[Page S14859]]

     person) notifies the promoter in writing that such 
     individual--
       ``(A) has changed the election; and
       ``(B) elects to receive skill contest or sweepstakes 
     mailings from that promoter.
       ``(e) Private Right of Action.--
       ``(1) In general.--An individual who receives one or more 
     mailings in violation of subsection (d) may, if otherwise 
     permitted by the laws or rules of court of a State, bring in 
     an appropriate court of that State--
       ``(A) an action to enjoin such violation;
       ``(B) an action to recover for actual monetary loss from 
     such a violation, or to receive $500 in damages for each such 
     violation, whichever is greater; or
       ``(C) both such actions.
     It shall be an affirmative defense in any action brought 
     under this subsection that the defendant has established and 
     implemented, with due care, reasonable practices and 
     procedures to effectively prevent mailings in violation of 
     subsection (d). If the court finds that the defendant 
     willfully or knowingly violated subsection (d), the court 
     may, in its discretion, increase the amount of the award to 
     an amount equal to not more than 3 times the amount available 
     under subparagraph (B).
       ``(2) Action allowable based on other sufficient notice.--A 
     mailing sent in violation of section 3001(l) shall be 
     actionable under this subsection, but only if such an action 
     would not also be available under paragraph (1) (as a 
     violation of subsection (d)) based on the same mailing.
       ``(f) Promoter Nonliability.--A promoter shall not be 
     subject to civil liability for the exclusion of an 
     individual's name or address from any list maintained by that 
     promoter for mailing skill contests or sweepstakes, if--
       ``(1) a removal request is received by the promoter's 
     notification system; and
       ``(2) the promoter has a good faith belief that the request 
     is from--
       ``(A) the individual whose name and address is to be 
     excluded; or
       ``(B) another duly authorized person.
       ``(g) Prohibition on Commercial Use of Lists.--
       ``(1) In general.--
       ``(A) Prohibition.--No person may provide any information 
     (including the sale or rental of any name or address) derived 
     from a list described in subparagraph (B) to another person 
     for commercial use.
       ``(B) Lists.--A list referred to under subparagraph (A) is 
     any list of names and addresses (or other related 
     information) compiled from individuals who exercise an 
     election under subsection (d).
       ``(2) Civil penalty.--Any person who violates paragraph (1) 
     shall be assessed a civil penalty by the Postal Service not 
     to exceed $2,000,000 per violation.
       ``(h) Civil Penalties.--
       ``(1) In general.--Any promoter--
       ``(A) who recklessly mails nonmailable matter in violation 
     of subsection (b) shall be liable to the United States in an 
     amount of $10,000 per violation for each mailing to an 
     individual of nonmailable matter; or
       ``(B) who fails to comply with the requirements of 
     subsection (c)(2) shall be liable to the United States.
       ``(2) Enforcement.--The Postal Service shall, in accordance 
     with the same procedures as set forth in section 3012(b), 
     provide for the assessment of civil penalties under this 
     section.''.
       (b) Technical and Conforming Amendments.--The table of 
     sections for chapter 30 of title 39, United States Code, is 
     amended by adding after the item relating to section 3016 the 
     following:

``3017. Nonmailable skill contests or sweepstakes matter; notification 
              to prohibit mailings.''.
       (c) Effective Date.--This section shall take effect 1 year 
     after the date of the enactment of this Act.

     SEC. 109. STATE LAW NOT PREEMPTED.

       (a) In General.--Nothing in the provisions of this title 
     (including the amendments made by this title) or in the 
     regulations promulgated under such provisions shall be 
     construed to preempt any provision of State or local law that 
     imposes more restrictive requirements, regulations, damages, 
     costs, or penalties. No determination by the Postal Service 
     that any particular piece of mail or class of mail is in 
     compliance with such provisions of this title shall be 
     construed to preempt any provision of State or local law.
       (b) Effect on State Court Proceedings.--Nothing contained 
     in this section shall be construed to prohibit an authorized 
     State official from proceeding in State court on the basis of 
     an alleged violation of any general civil or criminal statute 
     of such State or any specific civil or criminal statute of 
     such State.

     SEC. 110. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) References to Repealed Provisions.--Section 3001(a) of 
     title 39, United States Code, is amended by striking 
     ``1714,'' and ``1718,''.
       (b) Conformance With Inspector General Act of 1978.--
       (1) In general.--Section 3013 of title 39, United States 
     Code, is amended--
       (A) by striking ``Board'' each place it appears and 
     inserting ``Inspector General'';
       (B) in the third sentence by striking ``Each such report 
     shall be submitted within sixty days after the close of the 
     reporting period involved'' and inserting ``Each such report 
     shall be submitted within 1 month (or such shorter length of 
     time as the Inspector General may specify) after the close of 
     the reporting period involved''; and
       (C) by striking the last sentence and inserting the 
     following:
     ``The information in a report submitted under this section to 
     the Inspector General with respect to a reporting period 
     shall be included as part of the semiannual report prepared 
     by the Inspector General under section 5 of the Inspector 
     General Act of 1978 for the same reporting period. Nothing in 
     this section shall be considered to permit or require that 
     any report by the Postmaster General under this section 
     include any information relating to activities of the 
     Inspector General.''.
       (2) Effective date.--This subsection shall take effect on 
     the date of the enactment of this Act, and the amendments 
     made by this subsection shall apply with respect to 
     semiannual reporting periods beginning on or after such date 
     of enactment.
       (3) Savings provision.--For purposes of any semiannual 
     reporting period preceding the first semiannual reporting 
     period referred to in paragraph (2), the provisions of title 
     39, United States Code, shall continue to apply as if the 
     amendments made by this subsection had not been enacted.

     SEC. 111. EFFECTIVE DATE.

       Except as provided in section 108 or 110(b), this title 
     shall take effect 120 days after the date of the enactment of 
     this Act.
         TITLE II--FEDERAL RESERVE BOARD RETIREMENT PORTABILITY

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Federal Reserve Board 
     Retirement Portability Act''.

     SEC. 202. PORTABILITY OF SERVICE CREDIT.

       (a) Creditable Service.--
       (1) In general.--Section 8411(b) of title 5, United States 
     Code, is amended--
       (A) by striking ``and'' at the end of paragraph (3);
       (B) in paragraph (4)--
       (i) by striking ``of the preceding provisions'' and 
     inserting ``other paragraph''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(5) a period of service (other than any service under any 
     other paragraph of this subsection, any military service, and 
     any service performed in the employ of a Federal Reserve 
     Bank) that was creditable under the Bank Plan (as defined in 
     subsection (i)), if the employee waives credit for such 
     service under the Bank Plan and makes a payment to the Fund 
     equal to the amount that would have been deducted from pay 
     under section 8422(a) had the employee been subject to this 
     chapter during such period of service (together with interest 
     on such amount computed under paragraphs (2) and (3) of 
     section 8334(e)).
     Paragraph (5) shall not apply in the case of any employee as 
     to whom subsection (g) (or, to the extent subchapter III of 
     chapter 83 is involved, section 8332(n)) otherwise 
     applies.''.
       (2) Bank plan defined.--Section 8411 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``(i) For purposes of subsection (b)(5), the term `Bank 
     Plan' means the benefit structure in which employees of the 
     Board of Governors of the Federal Reserve System appointed on 
     or after January 1, 1984, participate, which benefit 
     structure is a component of the Retirement Plan for Employees 
     of the Federal Reserve System, established under section 10 
     of the Federal Reserve Act (and any redesignated or successor 
     version of such benefit structure, if so identified in 
     writing by the Board of Governors of the Federal Reserve 
     System for purposes of this chapter).''.
       (b) Exclusion From Chapter 84.--
       (1) In general.--Paragraph (2) of section 8402(b) of title 
     5, United States Code, is amended by striking the matter 
     before subparagraph (B) and inserting the following:
       ``(2)(A) any employee or Member who has separated from the 
     service after--
       ``(i) having been subject to--

       ``(I) subchapter III of chapter 83 of this title;
       ``(II) subchapter I of chapter 8 of title I of the Foreign 
     Service Act of 1980; or
       ``(III) the benefit structure for employees of the Board of 
     Governors of the Federal Reserve System appointed before 
     January 1, 1984, that is a component of the Retirement Plan 
     for Employees of the Federal Reserve System, established 
     under section 10 of the Federal Reserve Act; and

       ``(ii) having completed--

       ``(I) at least 5 years of civilian service creditable under 
     subchapter III of chapter 83 of this title;
       ``(II) at least 5 years of civilian service creditable 
     under subchapter I of chapter 8 of title I of the Foreign 
     Service Act of 1980; or
       ``(III) at least 5 years of civilian service (other than 
     any service performed in the employ of a Federal Reserve 
     Bank) creditable under the benefit structure for employees of 
     the Board of Governors of the Federal Reserve System 
     appointed before January 1, 1984, that is a component of the 
     Retirement Plan for Employees of the Federal Reserve System, 
     established under section 10 of the Federal Reserve Act,

     determined without regard to any deposit or redeposit 
     requirement under either such subchapter or under such 
     benefit structure, or any requirement that the individual 
     become subject to either such subchapter or to such benefit 
     structure after performing the service involved; or''.
       (2) Exception.--Subsection (d) of section 8402 of title 5, 
     United States Code, is amended to read as follows:
       ``(d) Paragraph (2) of subsection (b) shall not apply to an 
     individual who--
       ``(1) becomes subject to--
       ``(A) subchapter II of chapter 8 of title I of the Foreign 
     Service Act of 1980 (relating to the Foreign Service Pension 
     System) pursuant to an election; or
       ``(B) the benefit structure in which employees of the Board 
     of Governors of the Federal Reserve System appointed on or 
     after January 1, 1984, participate, which benefit structure 
     is a component of the Retirement Plan for Employees of the 
     Federal Reserve System, established

[[Page S14860]]

     under section 10 of the Federal Reserve Act (and any 
     redesignated or successor version of such benefit structure, 
     if so identified in writing by the Board of Governors of the 
     Federal Reserve System for purposes of this chapter); and
       ``(2) subsequently enters a position in which, but for 
     paragraph (2) of subsection (b), such individual would be 
     subject to this chapter.''.
       (c) Provisions Relating to Certain Former Employees.--A 
     former employee of the Board of Governors of the Federal 
     Reserve System who--
       (1) has at least 5 years of civilian service (other than 
     any service performed in the employ of a Federal Reserve 
     Bank) creditable under the benefit structure for employees of 
     the Board of Governors of the Federal Reserve System 
     appointed before January 1, 1984, that is a component of the 
     Retirement Plan for Employees of the Federal Reserve System, 
     established under section 10 of the Federal Reserve Act;
       (2) was subsequently employed subject to the benefit 
     structure in which employees of the Board of Governors of the 
     Federal Reserve System appointed on or after January 1, 1984, 
     participate, which benefit structure is a component of the 
     Retirement Plan for Employees of the Federal Reserve System, 
     established under section 10 of the Federal Reserve Act (and 
     any redesignated or successor version of such benefit 
     structure, if so identified in writing by the Board of 
     Governors of the Federal Reserve System for purposes of 
     chapter 84 of title 5, United States Code); and
       (3) after service described in paragraph (2), becomes 
     subject to and thereafter entitled to benefits under chapter 
     84 of title 5, United States Code,
     shall, for purposes of section 302 of the Federal Employees' 
     Retirement System Act of 1986 (100 Stat. 601; 5 U.S.C. 8331 
     note) be considered to have become subject to chapter 84 of 
     title 5, United States Code, pursuant to an election under 
     section 301 of such Act.
       (d) Effective Date.--
       (1) In general.--Subject to succeeding provisions of this 
     subsection, this section and the amendments made by this 
     section shall take effect on the date of the enactment of 
     this Act.
       (2) Provisions relating to creditability and certain former 
     employees.--The amendments made by subsection (a) and the 
     provisions of subsection (c) shall apply only to individuals 
     who separate from service subject to chapter 84 of title 5, 
     United States Code, on or after the date of the enactment of 
     this Act.
       (3) Provisions relating to exclusion from chapter.--The 
     amendments made by subsection (b) shall not apply to any 
     former employee of the Board of Governors of the Federal 
     Reserve System who, subsequent to his or her last period of 
     service as an employee of the Board of Governors of the 
     Federal Reserve System and prior to the date of the enactment 
     of this Act, became subject to subchapter III of chapter 83 
     or chapter 84 of title 5, United States Code, under the law 
     in effect at the time of the individual's appointment.

     SEC. 203. CERTAIN TRANSFERS TO BE TREATED AS A SEPARATION 
                   FROM SERVICE FOR PURPOSES OF THE THRIFT SAVINGS 
                   PLAN.

       (a) Amendments to Chapter 84 of Title 5, United States 
     Code.--
       (1) In general.--Subchapter III of chapter 84 of title 5, 
     United States Code, is amended by inserting before section 
     8432 the following:

     ``Sec. 8431. Certain transfers to be treated as a separation

       ``(a) For purposes of this subchapter, separation from 
     Government employment includes a transfer from a position 
     that is subject to one of the retirement systems described in 
     subsection (b) to a position that is not subject to any of 
     them.
       ``(b) The retirement systems described in this subsection 
     are--
       ``(1) the retirement system under this chapter;
       ``(2) the retirement system under subchapter III of chapter 
     83; and
       ``(3) any other retirement system under which individuals 
     may contribute to the Thrift Savings Fund through 
     withholdings from pay.''.
       (2) Clerical amendment.--The table of sections for chapter 
     84 of title 5, United States Code, is amended by inserting 
     before the item relating to section 8432 the following:

``8431. Certain transfers to be treated as a separation.''.

       (b) Conforming Amendments.--Subsection (b) of section 8351 
     of title 5, United States Code, is amended by redesignating 
     paragraph (11) as paragraph (8), and by adding at the end the 
     following:
       ``(9) For the purpose of this section, separation from 
     Government employment includes a transfer described in 
     section 8431.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to transfers occurring before, on, 
     or after the date of the enactment of this Act, except that, 
     for purposes of applying such amendments with respect to any 
     transfer occurring before such date of enactment, the date of 
     such transfer shall be considered to be the date of the 
     enactment of this Act. The Executive Director (within the 
     meaning of section 8401(13) of title 5, United States Code) 
     may prescribe any regulations necessary to carry out this 
     subsection.

     SEC. 204. CLARIFYING AMENDMENTS.

       (a) In General.--Subsection (f) of section 3304 of title 5, 
     United States Code, as added by section 2 of Public Law 105-
     339, is amended--
       (1) by striking paragraph (4);
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (3) by inserting after paragraph (1) the following:
       ``(2) If selected, a preference eligible or veteran 
     described in paragraph (1) shall acquire competitive status 
     and shall receive a career or career-conditional appointment, 
     as appropriate.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if enacted on October 31, 1998.
    TITLE III--AMENDMENT TO THE FEDERAL PROPERTY AND ADMINISTRATIVE 
                          SERVICES ACT OF 1949

     SEC. 301. TRANSFER OF CERTAIN PROPERTY TO STATE AND LOCAL 
                   GOVERNMENTS.

       Section 203(p)(1)(B)(ii) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 
     484(p)(1)(B)(ii)) is amended by striking ``December 31, 
     1999.'' and inserting ``July 31, 2000. During the period 
     beginning January 1, 2000, and ending July 31, 2000, the 
     Administrator may not convey any property under subparagraph 
     (A), but may accept, consider, and approve applications for 
     transfer of property under that subparagraph.''.

  Ms. COLLINS. Mr. President, I ask unanimous consent that the Senate 
agree to the amendment of the House.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Ms. COLLINS. Mr. President, I am delighted the Senate has now sent S. 
335, the Deceptive Mail Prevention and Enforcement Act that I 
introduced to curb deceptive mailings, to the President for his 
signature.
  The Senate originally passed this legislation by a vote of 93-0 on 
August 2. It will impose new disclosure requirements on sweepstakes 
mailings to protect consumers. It will also provide new authority to 
the Postal Service to take enforcement action against those companies 
sending deceptive mailings.
  I want to thank several people whose hard work has made passage today 
possible. I particularly want to acknowledge the contributions of 
Senator Levin of Michigan, the ranking minority member of the permanent 
Subcommittee on Investigations, and the chief cosponsor of this 
important legislation. In addition, Senator Cochran and Senator Edwards 
were real leaders in this effort and contributed greatly to the 
legislation.
  There were many other Senators, as well, who cosponsored this 
measure. In particular, I want to recognize the contributions of 
several members of the Committee on Governmental Affairs, including 
Chairman Thompson, Senators Lieberman, Stevens, Durbin, Domenici, 
Akaka, and Specter. They were early cosponsors of this legislation.
  Senator Campbell has also played an important role. He first 
introduced legislation to curb some of the deceptive practices of 
sweepstakes companies.
  In addition, there are several Members of the House of 
Representatives who have also worked very hard to bring to about 
passage today. They include Congressman John McHugh, who is chairman of 
the Subcommittee on the Postal Service; Congressman Fattah, who is the 
ranking minority member of the subcommittee; Congressman LoBiondo, 
Congressman Rogan, Congressman McCollum, Congressman and Chairman Dan 
Burton, and Congressman Henry Waxman. All of them worked very hard to 
forge workable legislation that is going to make a real difference.
  I also want to express my thanks to the members of my staff who 
worked very hard on this. On the subcommittee staff, Lee Blalack and 
Kirk Walder were instrumental, and on my personal staff, Michael Bopp, 
my legislative director--all of them worked very hard.
  The requirements in this legislation will reduce the deceptive 
techniques that have caused countless Americans, hundreds of thousands 
of Americans, many of them elderly, to purchase products they do not 
need nor do they want. Once this legislation takes effect, mailings 
will be required to make crystal clear to consumers that no purchase is 
necessary to enter a sweepstakes and that making a purchase will not 
improve your chances of winning.
  That is the primary misconception our investigation identified. Too 
many consumers believe if they make a purchase, somehow they will 
improve their chances of winning, but nothing could be further from the 
truth. It is easy to see why they have that misconception because that 
is exactly the impression these deceptive mailings are intended to 
leave.
  In addition, the legislation will prohibit sweepstakes companies from 
telling people they are a winner unless they really have won a prize.
  Enactment of this legislation concludes a year-long investigation by 
the Permanent Subcommittee on Investigations, which I chair. Prompted 
by

[[Page S14861]]

complaints from my constituents in Maine, I began an investigation to 
examine deceptive mailings. Hearings before the subcommittee 
demonstrated that the deceptive techniques of major sweepstakes 
companies were misleading thousands of Americans into making purchases 
of products. Further investigation into the activities of the smaller 
sweepstakes companies, the ones that I call the ``stealth companies,'' 
showed that their practices were even more deceptive. In some cases, 
they bordered on outright fraud.
  The subcommittee heard heartbreaking testimony that deceptive 
sweepstakes can induce trusting consumers to buy thousands of dollars 
of unnecessary and unwanted merchandise. One example was a magazine 
subscription extending to the year 2018 that one witness testified that 
her 82-year-old father-in-law purchased because of sweepstakes 
promotions.

  We found that our senior citizens are particularly vulnerable to 
these kinds of deceptive mailings. They are a trusting generation. Many 
seniors tend to believe what they read, particularly if it is endorsed 
by a trusted spokesman, comes from a well-known company, or involves a 
mailing that has been designed to appear as if it is from the Federal 
Government.
  Family members told us of loved ones who were so convinced that they 
had won a sweepstakes that they refused to leave their home for fear 
they would miss the Prize Patrol. One constituent of mine actually 
canceled needed surgery because she did not want to miss Ed McMahon's 
visit. Sadly, of course, Ed McMahon never showed up.
  We found cases of seniors enticed by the bold promises of sweepstakes 
who spent their Social Security checks, squandered their life's 
savings, and even borrowed money to buy unwanted magazines and other 
merchandise.
  I will never forget the testimony of one man who broke down in tears 
as he recounted how the sweepstakes companies had deceived him into 
purchasing $15,000 worth of products in an effort to win the big prize.
  The loss suffered by consumers cannot be measured in dollars alone. 
As one elderly gentleman put it:

       My wife has finally come to realize that she has been duped 
     by the sweepstakes solicitations for all these years. 
     Although the financial train is now halted, the loss of her 
     dignity is incalculable.

  Unfortunately, these are not isolated examples. According to a survey 
commissioned by the AARP, 40 percent of seniors surveyed believe there 
is a connection between purchasing and winning. It is easy to see why 
consumers believe they have already won or that they will win if they 
just purchase something as a result of these mailings.
  I would like to show you, Mr. President, and read from a sweepstakes 
mailing that I received last week at my home in Bangor, ME. As you can 
see, in bold print, it proclaims: ``Our sweepstakes results are now 
final.'' ``Ms. Susan M. Collins has won a cash prize of $833,337.'' ``A 
bank check for $833,337 is on its way to''--my address--``in Bangor.'' 
It further warns that I will forfeit the entire amount if I refuse to 
respond to this notice. On the back it says, again, ``A bank check for 
$833,337 in cash will be sent to you by certified mail if you respond 
now.''
  I have a feeling you will not be surprised to learn that I am not the 
big winner. But if I relied on the information in this mailing, it 
would be easy to see why many people would be deceived into thinking 
they have, indeed, won the grand prize.
  Now, in the small print--not in the bold type--but in the small print 
it explains that I have to have the winning number to really win the 
prize.
  That message is overwhelmed by the bold proclamations telling me I am 
a winner. Of course, in case I am tempted not to enter, there is what 
appears to be a personal note that says, ``Please don't say no now,'' 
and implores me to enter and to buy the product offered. This is not 
unusual. This is typical of the kinds of deceptive mailings that are 
all too common and that flood the mailboxes of American consumers with 
more than a billion pieces of mail a year.
  You shouldn't have to be a lawyer, you shouldn't have to have a 
magnifying glass, to figure out the rules of the game and the odds of 
winning. Our legislation will make a real difference by requiring 
honest disclosures, by preventing sweepstakes companies from telling 
people they have won when they have not, and, most importantly, by 
making crystal clear to consumers that you don't have to make a 
purchase to win and that making a purchase will not increase your 
chances of winning.
  Mr. President, as I said, I am pleased that the Senate is now poised 
to send my legislation to curb deceptive mailings to the President for 
his signature.
  As I have described to my colleagues previously, you only have to 
look at some of these sweepstakes mailings to understand why. For 
example, one mailing by Publisher's Clearing House, which is famous for 
its Prize Patrol, tells the consumer to ``Open Your Door To $31 Million 
on January 31.'' This mailing suggests to the reader that his or her 
past purchases are paying off. Specifically, the mailing states: ``You 
see, your recent order and entry has proven to us that you're indeed 
one of our loyal friends and a savvy sweepstakes player. And now I'm 
pleased to tell you that you've passed our selection criteria to 
receive this special invitation.''
  Another mailing from American Family Publishers stated, ``It's Down 
to a 2 person race for $11,000,000--You And One Other Person In Georgia 
Were Issued the Winning Number . . . Whoever Returns It First Wins It 
All!'' Most people probably didn't see the fine print that declared, 
``If you have the winning number.'' Unless the contestant reads and 
understands this fine print, the mailing leaves the unmistakable 
impression that the recipient and one other person have the winning 
number for the $11 million prize.
  Mr. President, the bill adopted by the Senate would curb these 
problems by, for the first time, establishing federal standards for a 
variety of promotional mailings, including sweepstakes mailings. Such 
mailings must clearly and conspicuously display several important 
disclosures, including statements that no purchase is necessary to 
enter the contest and that a purchase will not improve your chances of 
winning; the odds of winning; the value and nature of each prize; and 
the name and address of the sponsor. Sweepstakes mailings would also be 
required to include all the rules and entry procedures for the 
sweepstakes.
  This legislation also addresses another problem consumers experience 
in dealing with sweepstakes companies. The Subcommittee heard from many 
individuals who found it difficult to have their name or a parent's 
name removed from the mailing lists of sweepstakes companies, or who 
were told that the name removal process might take as long as six 
months. To address this problem, this legislation includes a section 
developed by Senator Edwards that would require companies sending 
sweepstakes or skill contests to establish a system allowing consumers 
to call or write to have their names removed from the companies' 
mailing lists.
  The House made several modifications to this section of the bill, 
including extending the time from 35 days to 60 days by which companies 
must remove names of consumers who do not wish to receive future 
sweepstakes or skill contest mailings. Non-profit mailers who use 
sweepstakes contests requested a time limit of longer than 35 days, 
arguing that their limited resources might not allow the establishment 
of a system to quickly remove names. The 60-day limit in the bill, 
however, should not be used by any company to continue to inundate with 
more mailings those consumers who have asked to be removed from 
sweepstakes mailing lists. Accordingly, companies should make every 
effort to remove names as quickly as possible.
  The House also added provisions to allow consumers to bring a private 
right of action in state court if they receive a mailing after 
previously requesting to be removed from the mailing list of a skill 
contest or sweepstakes promoter. Sweepstakes promoters will have an 
affirmative defense if they have established and implemented, with due 
care, reasonable practices and procedures to effectively prevent 
mailings that would violate the section on name removal.
  The notification system in the bill passed by the Senate, and 
modified by the House, requires companies to include in every mailing 
the address or a

[[Page S14862]]

toll-free telephone number of the notification system, but does not 
require that consumers submit their name in writing to comply with the 
removal system. Companies are encouraged to adopt a consumer friendly 
system for the removal of names from their mailing lists, which may 
include the ability to have names removed by calling a toll-free 
number. Under this legislation, companies using a toll-free number to 
permit the removal of names would not need to require a consumer to 
also provide their name in writing. Any appropriate method of 
establishing a record of removal requests by consumers would comply 
with the requirements of Section 8(d) of the legislation. For example, 
companies may wish to electronically verify the consumer's election to 
be removed from their mailing list.
  The legislation would strengthen the ability of the Postal Service to 
investigate, penalize, and stop deceptive mailings. It grants the 
Postal Inspection Service subpoena authority, nationwide stop mail 
authority, and the ability to impose tougher civil penalties. The House 
made several changes in the subpoena authority, including requiring the 
Postal Service to develop procedures for the issuance of subpoenas and 
their approval by the General Counsel or a Deputy General Counsel of 
the Postal Service. The new subpoena authority will give the Postal 
Inspection Service better ability to investigate and stop deceptive 
mailings, and I encourage the General Counsel of the Postal Service to 
recognize that effective enforcement of this legislation requires the 
timely issuance of subpoenas.
  Mr. President, S. 335 will provide important new consumer protections 
against the many deceptive techniques currently used in promotional 
mailings. I thank my colleagues for their support of this measure.
  I yield to the subcommittee's ranking minority member, Senator Levin. 
As I explained earlier in my remarks, he has been the chief cosponsor 
of this legislation and a true leader in the effort to crack down on 
deceptive mailings.
  The PRESIDING OFFICER. The Senator from Michigan.
  Mr. LEVIN. Mr. President, I thank the good Senator from Maine for her 
leadership in this and so many other consumer issues. This bill would 
not be here on the floor of the Senate without her leadership on the 
Permanent Subcommittee on Investigations, which has taken 
responsibility for getting this bill passed.
  S. 335, the bill we have just passed and sent to the President is 
going to crack down on deceptive sweepstakes practices that have 
affected people in all of our States. Most of us have personal 
knowledge of the kind of egregious deceptive practices which have been 
perpetrated by too many companies, including some otherwise reputable 
companies that are using deceptive practices to suck into their net 
people who will be lured into believing that if they buy something or 
subscribe to something, somehow or other that will increase their 
chances of winning a prize.
  The bill we are passing today is similar to one I had introduced in 
the 105th Congress to curb abuse of sweepstakes solicitations and 
provide for additional enforcement tools against deceptive mailings by 
the Postal Service. There were hearings held in September of 1998 in 
the Governmental Affairs Committee Federal Services Subcommittee that 
was then chaired by Senator Cochran.
  We learned from witnesses at that hearing, including the Florida 
attorney general, the Michigan assistant attorney general, and the 
Postal Inspection Service, that senior citizens in particular are 
vulnerable to these deceptive solicitations and that the financial cost 
to seniors for deceptive and fraudulent sweepstakes is a serious 
problem. Deceptive sweepstakes solicitations not only cause significant 
financial losses but frequently carry heavy emotional losses as well.
  We have constituents in Michigan, seniors, who have lost tens of 
thousands of dollars to deceptive sweepstakes. Their houses are 
frequently filled with hundreds of items they don't need that they 
bought because they thought somehow or other it might help them win the 
promised prize.
  The Postal Service has inadequate tools to effectively shut down 
these deceptive marketing people, so we have added some tough 
enforcement tools in this bill.
  Until this bill becomes law, the Postal Service, for instance, cannot 
impose a fine against a promoter who uses deceptive practices until the 
Postal Service first issues a stop order. Now, if you wait for a stop 
order to be violated before you can impose an administrative fine, what 
the deceptive sweepstakes promoter does is slightly modify in some way 
the deceptive mailing that is the subject of the stop order so they can 
avoid being caught by a violation of the Postal Service stop order. The 
Postal Service currently is too often powerless to stop these kinds of 
deceptive practices and the slight changes which are made in them which 
allow the companies that are using these practices to continue and 
ignore what appears to be a stop order.
  In March and July of this year, Senator Collins chaired hearings in 
the Permanent Subcommittee on Investigations, where I serve as ranking 
member. The bill we are taking up today, S. 335, reflects what we 
learned at those hearings as well. Senator Collins has set forth for us 
some of the egregious examples. I will not take the time of this body 
to go through some of these additional examples we have. We have seen 
them all. We have seen the big print that says, ``you have just won a 
big prize;'' we have seen the fine, unreadable print that says but only 
``if you have the winning number;'' the headline which says ``a million 
dollars is yours'' or ``just submit this number'' and you will have 
this big prize. The fine print says ``no,'' you haven't. We have all 
seen those kinds of examples and the way people are taken in.

  Fortunately, most people aren't taken in, but enough people are, so 
that a billion pieces of this kind of mail, sweepstakes mail, is sent 
out each year, including by some companies that are otherwise companies 
that have good reputations. We have had these kinds of deceptive 
mailings sent out by Time Warner, by Reader's Digest, by other 
companies whose names have generally prompted positive responses in 
people because their products have been good products. Yet they have 
stooped, in the case of sweepstakes, to deceptive practices in order to 
lull the people who receive these sweepstakes mailings into believing 
that if they will just buy that magazine or just buy that product, they 
will really seal the deal and the truck will really show up with the 
check. We have seen these ads on television, the come-ons. Thank God, 
90 or 95 percent of the people look at them and can see them for what 
they are. It is that 5 or 10 percent, frequently seniors, who are taken 
in. We are trying to stop these practices. This bill, hopefully, will 
do exactly that.
  We are going to require that the statement that a purchase will not 
increase an individual's chances of winning and that no purchase is 
necessary to win be clearly and conspicuously displayed in the 
mailing--in fact more conspicuously displayed than the other 
information in the mailing.
  The House changed the term ``prominently'' in our Senate bill, which 
was used to describe how these two key required statements must be 
displayed and substituted ``more conspicuously'' for ``prominently'' to 
better match previous uses of the term. The intent of both houses on 
this subject is the same, however, and we have emphasized that point in 
the committee report. There should be no misunderstanding by the Postal 
Service and by the direct mail industry on what we intend by this.
  S. 335 is also going to provide the Postal Service with authority to 
issue a civil penalty for the first-time violation of the statute, and 
we are going to give the Postal Service subpoena authority. Those are 
some of the things we have done.
  Again, I thank the good Senator from Maine, Ms. Collins, her staff, 
my staff, Linda Gustitus and her good crew, who have made it possible 
for this bill to happen. Senator Edwards has been extremely helpful 
with his provision requiring a delisting of persons not wanting to 
receive sweepstakes mailings. Senator Cochran has been very much in the 
forefront of this effort. Again, the majority and minority staffs of 
the

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Permanent Subcommittee on Investigations have done an absolutely superb 
job of putting together these hearings and developing this legislation.
  I am confident that with the Senate's passage today, the President 
will sign the bill into law. It is a bill that will help end the abuses 
which too often occur in this area and which take advantage of people 
who are too often vulnerable to the power of suggestion.

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