[Congressional Record Volume 147, Number 172 (Wednesday, December 12, 2001)]
[Senate]
[Pages S13052-S13057]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. THOMAS (for himself and Ms. Landrieu):
S. 1808. A bill to amend the Mineral Leasing Act to encourage the
development of natural gas and oil resources on Federal land; to the
Committee on Energy and Natural Resources.
Mr. THOMAS. Madam President, I rise today to introduce the Federal
Acreage Chargeability Act of 2001. The Mineral Leasing Act of 1920
restricts the interests a company can own in Federal oil and gas leases
in any one State to 246,080 acres. This legislation alters the acreage
cap for oil and gas leases on federal lands so that producing leases
are not included in the existing Statewide acreage limitation. This
provides an incentive for producers to keep domestic acreage in
production or to turn the leases over to another operator who will.
Historically, the acreage limitation in the Mineral Leasing Act
responded to public concern over a few major integrated oil companies
locking up potential supplies of crude oil from Federal lands in the
West. As originally enacted, the Act forbade any person from owning
more than three Federal oil and gas leases in any state and more than
one lease in an oil and gas field. In 1926, the restriction was
converted from leases into acres and the acreage limit was increased to
7,680 acres in any state. The Congress, on three other occasions, has
further expanded the number of acres a lessee may hold to 15,360 acres
in 1946, to 46,080 acres per state in 1954, and to its present 246,080
acres in 1960. Under present-day conditions increased acreage and more
time are necessary to protect the huge investments now needed to
maintain rates of discovery.
Today, companies are able to administratively exempt Federal acreage
from the 246,080-acre limit per state either through unitization or by
the creation of a development contract. At this time, the BLM only
allows development contracts in situations where the acreage is
considered wildcat. The BLM has been extremely cooperative in working
with companies that find themselves bumping up against or exceeding the
acreage cap. However, the time has come to pass legislation that will
encourage the sizeable capital investment that will be needed to
promote orderly and environmentally responsible exploration,
development, and production of natural gas and oil from the public
lands of the United States.
In our modern economy, the acreage limitations of the Mineral Leasing
Act appear as historical relics, ill suited to their original task of
promoting competition. The acreage limitations of the Act are once
again inhibiting a company's ability to assemble sufficient blocks of
acreage to efficiently explore promising natural gas and oil prospects.
Companies are also unable to adequately finance the development of
those prospects and related infrastructure such as pipelines.
Exacerbating the acreage situation further, is the trend toward mergers
and acquisitions taking place in the oil and gas industry.
The Federal Acreage Chargeability Act of 2001 amends the acreage
limitation provisions of the Mineral Leasing Act of 1920 in such a
manner that is truly reflective of today's exploration and production
techniques and economics. Given the uncertain natural gas and oil
supply situation that this country faces, it is even more critical to
reform the outdated existing Federal acreage limitation provisions. The
Federal Acreage Chargeability Act of 2001 amends the Mineral Leasing
Act of 1920 by exempting oil and natural gas producing acreage from
being counted against the Federal acreage cap.
Acreage limitations for other federal minerals such as coal and trona
have also been revised upward over the years. Last Congress, I authored
legislation that passed and was signed into law that raised the acreage
limits for both Federal coal and trona leases due to industry
consolidation and international competition. The domestic natural gas
and oil industry is certainly facing these same concerns.
In recognition of the economics and technological advances of
exploring for and producing domestic natural gas and oil on our public
lands, and the national goal of increasing both domestic production and
environmental efficiency, make now the right time to enact the Federal
Acreage Chargeability Act of 2001.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
[[Page S13053]]
S. 1808
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Mineral Leasing Act Revision
of 2001''.
SEC. 2. DEVELOPMENT OF NATURAL GAS AND OIL RESOURCES.
(a) In General.--Section 27(d) of the Mineral Leasing Act
(30 U.S.C. 184(d)) is amended--
(1) in the first sentence of paragraph (1), by inserting
``producing acreage and'' after ``Provided, however, That'';
and
(2) by adding at the end the following:
``(3) Definition of producing acreage.--In this subsection,
the term `producing acreage' means any lease--
``(A) for which minimum royalty, royalty, royalty in kind,
or compensatory royalty has been--
``(i) paid during the calendar year; or
``(ii) waived by the Secretary of the Interior; or
``(B) that has been committed to a federally approved
cooperative plan, unit plan, or communitization agreement.''.
(b) Application.--Section 27 of the Mineral Leasing Act (30
U.S.C. 184) shall apply separately to land leased under the
Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et
seq.).
______
By Mr. DURBIN:
S. 1810. A bill to amend the Internal Revenue Code of 1986 to provide
credits for individuals and businesses for the installations of certain
wind energy property; to the Committee on Finance.
Mr. DURBIN. Madam President, today I am pleased to introduce the Home
and Farm Wind Energy Systems Act of 2001. At a time when the United
States clearly needs to reduce its dependence on fossil fuels, and
particularly on imported oil, I offer legislation to spur the
production of electricity from a clean, free and literally limitless
source, wind. My bill offers a tax credit to help defray the cost of
installing a small wind energy system to generate electricity for
individual homes, farms and businesses. It is my hope that this credit
will help make it economical for people to invest in small wind
systems, thereby reducing pressures on the national power grid and
increasing America's energy independence one family or business at a
time.
Any serious attempt to create a national energy policy must include
innovative proposals for exploring and developing the use of
alternative and renewable energy sources. I look forward to debating a
comprehensive energy policy for America in the next session of the
107th Congress, and I ask unanimous consent that a summary of the Home
and Farm Wind Energy Systems Act of 2001 be printed in the Record.
There being no objection, the summary was ordered to be printed in
the Record, as follows:
Summary of the Home and Farm Wind Energy Systems Act
The bill would provide a 30 percent federal investment tax
credit for homeowners, farmers and businesses when they
install small wind energy systems with a capacity of up to 75
kilowatts (kW). The tax credit would be available for
installation occurring over the next ten years.
Investments in renewable energy provide many benefits,
including:
1. Enhancing the energy security and independence of the
United States;
2. Increasing farmer and rancher income;
3. Promoting rural economic development;
4. Providing environmental and public health benefits such
as cleaner air and water;
5. Improving electric grid reliability, thereby reducing
the likelihood of blackouts;
6. Providing farm and residential customers with insulation
from electricity price volatility resulting from electric
deregulation.
Small wind systems are the most cost-competitive home sized
renewable energy technology, but the high up-front cost has
been a barrier. Phil Funk, for instance, a farmer in Dallas
County, IA, invested $20,000 in a 20kW wind turbine system
that saves him $3000 dollars per year on his electricity
bill. Funk made use of an existing tower on his property to
reduce his total costs significantly. The simple return-on-
investment period for Funk, however, was still 7 years--too
long to interest many farmers. A 30 percent tax credit would
be a powerful incentive in its own right. It would also bring
down production costs for small wind systems by increasing
sales and production volume.
A typical rural residential wind system uses a 60 foot to
80 foot tower, has a 10 kW capacity and costs $30,000 to
$35,000 to install. It produces up to 13,000 kWh of
electricity per year, and offsets seven tons of carbon
dioxide per year. This could yield savings of $1000 or more
per year in energy costs, depending on prevailing commercial
rates. In addition, in most states, system owners whose homes
are connected to the power grid can sell excess electricity
back to the local power company, improving efficiency and
further reducing demands on local power grids.
While a few states offer incentives, the Federal Government
has not offered tax credits for small wind systems since
1985.
A recent USA TODAY/CNN/Gallup poll showed that 91 percent
of the public favors incentives for wind, solar, and fuel
cells. But, while there are tax credits for very large
commercial wind turbines, Production Tax Credit, there is
currently no federal program to support small systems.
According to the American Wind Energy Association, Illinois
ranks 16th in the contiguous states for wind energy
potential. A new map produced by the National Renewable
Energy Laboratory, NREL, for the U.S. Department of Energy
indicates that over 2/3 of Illinois has a ``class 3'' or
better wind resource, making rural areas and the higher
elevations in those areas appropriate for small wind turbine
siting.
Illinois has a strong wind energy heritage. Chicago and
Batavia were the leading centers of wind energy manufacturing
in the United States at the end of the last century, with
millions of farm water pumping windmills and battery-charging
wind turbines built in the area between 1870 and 1910.
Batavia is still known as ``The Windmill City''.
In 1999, the Danish large-wind-turbine manufacturer NEG
Micon chose Champaign for the site of its first American
assembly and servicing facility, continuing the wind energy
tradition in Illinois.
Only a handful of States provide incentives for small wind
systems.
Illinois currently offers a buy-down or rebate on the
purchase of wind energy systems of up to 50 percent or $2/
watt. Eligible applicants include associations, individuals,
private companies, public and private schools, colleges and
universities, not-for-profit organizations and units of State
and local government. Potential recipients must be located
within the service area of an investor-owned or municipal gas
or electric utility or an electric cooperative that imposes
the Renewable Energy Resources and Coal Technology
Development Assistance Charge. Grant payments under current
operating procedures are, however taxable, which reduces
their value significantly.
______
By Mr. THOMPSON (for himself, Mr. Lieberman, Mr. Voinovich, Mr.
Lugar, Mr. Durbin, and Mr. Akaka):
S. 1811. A bill to amend the Ethics in Government Act of 1978 (5
U.S.C. App.) to streamline the financial disclosure process for
executive branch employees; to the Committee on Governmental Affairs.
Mr. THOMPSON. Madam President, I am introducing today the
Presidential Appointments Improvement Act of 2001 on behalf of myself
and Senator Lieberman, and Senators Akaka, Durbin, Lugar, and
Voinovich. This proposal reflects multiple recommendations made by the
many commissions and organizations that have studied the Presidential
appointments process. These include a number of national commissions,
non-profit organizations like the Presidential Appointee Initiative and
the Transition to Governing Project, and a 1993 study and
recommendations by the American Bar Association.
Clearly, we have a problem. The Presidential appointments process is
unnecessarily long, burdensome, and complex. And although President
Bush has sent a notable number of nominees to Congress at this point in
his first year, major gaps remain in critical positions throughout
government. We are faced with responding to the events of September 11
with a 25-percent vacancy rate in positions considered important to
Homeland Security.
The time it takes for a new President to put his team in place
exacerbates the human capital problems that our government faces. There
is a growing recognition that we need to manage our people better. But
with the downsizing of the past decade and the impending wave of
retirements, the time consuming nature of the appointments process will
leave many federal departments and agencies hollow and headless.
While the appointments process is, collectively, a tangled mess,
there is no question that it has parts that are important and should be
preserved. Conflict of interest statutes are critical, because a
fundamental principle of government is one should not have a direct
financial interest in the decisions that one is making. Likewise,
background investigations are critical to ensure that the Government's
highest officials can be trusted with national security information.
And, of course, the Congress has an obligation, enshrined in the
Constitution, to provide its advice and consent for the President's
nominees.
[[Page S13054]]
This committee first took action to improve the Presidential
appointments process when we passed the Presidential Transition Act of
2000. In that legislation, we included a number of provisions to allow
a new President to hit the ground running once he takes office. In
addition, that bill asked the Office of Government Ethics to report
within six months on its recommendations to streamline the forms we
require of Executive Branch nominees. The administration submitted
those recommendations and they are included in this legislation.
In addition to streamlining the financial disclosure form, our
legislation directs the Executive Clerk of the White House to provide a
list of appointed positions to each Presidential candidate, Republican
and Democrat, after their respective nominating conventions. That way
the President, whomever he or she may be, can have an early start at
picking his most trusted advisors. We also ask each Executive
Department to recommend an elimination of Senate-confirmed positions,
which would greatly shorten the entire process.
As I've said, this legislation is not the only action we are taking
to improve the Presidential appointments process. Senator Lieberman and
I earlier asked Senate Committees to work to simplify the forms they
require of nominees, we have simplified the Governmental Affairs
Committee form, and I have written White House Chief of Staff Andrew
Card, asking him to examine the need for all Presidential nominees to
undergo a full-field FBI background investigation. Clearly, there are
some positions in the Federal Government that do not require the same
background investigations as, say, the Secretary of Defense.
We will continue to look for ways to improve this process. The
legislation we are introducing today makes reasonable but overdue
changes to the Presidential appointments process. Whether in a time of
crisis or not, there is no question that the country benefits when the
President's team, from either party, takes office as quickly as
possible.
I ask unanimous consent that a section-by-section analysis of the
bill be printed in the Record.
There being no objection, the analysis was ordered to be printed in
the Record, as follows:
Presidential Appointments Improvement Act of 2001--Section-By-Section
Analysis
Section 1 of the bill. Sets forth the short title of the
bill.
Section 2 of the bill. Sets forth the purposes of the bill.
Sec. 3 of the bill. Sets forth the public financial
disclosure requirements for judicial and legislative
personnel by amending Title I of the Ethics in Government Act
to excise all current references in title which were
necessary to apply the title to the officers and employees of
the executive branch. No change to current financial
disclosure requirements for judicial and legislative
personnel have been made.
Sec. 4 of the bill. Sets forth the public financial
disclosure requirements for executive branch personnel by
enacting a new title II of the Ethics in Government Act. The
references below are to the sections of title II of the
Ethics in Government Act and not to the sections of this Act.
Section 201. Persons required to file
Subsection (a) establishes the filing deadlines for new
entrants to a filing position. This does not change current
requirements.
Subsection (b), Paragraphs (1) and (2) establish the filing
deadlines for Presidential nominees (and individuals whom the
President has announced his intent to nominate) to positions
requiring Senate confirmation (other than Foreign Service
Officers or certain uniformed service officers) and including
the requirement to update information regarding income and
honoraria to within 5 days of the confirmation hearing. This
does not change current requirements.
Subsection (c), paragraph (1) contains the current filing
requirements for candidates for President or Vice President.
This does not change current requirements.
Paragraph (2) requires that an individual who is sworn in
as President or Vice President and who did not hold either of
those two positions immediately before taking the oath of
office shall file a report within 30 days of taking the oath.
This is new. It is intended to make clear that a newly-
elected President or Vice President or an individual who
takes the oath of office of either of those two positions
outside the normal election cycle shall file a report within
30 days of taking the oath. A newly-elected President and
Vice President who are not incumbents have previously filed
as candidates. This amendment would clarify the change from
candidate to incumbent and give the public timely information
regarding these two officials. An individual who is re-
elected as President or Vice President would not be affected
by this provision and would continue to file annually on May
15.
Subsection (d) contains the requirements for annual
reports. This does not change current requirements.
Subsection (e) contains the requirements for termination
reports. It has been changed only to make clear that an
individual who moves from any covered position to an elected
position in the executive branch need not file a termination
report for the first position.
Subsection (f) contains the descriptions of the officers
and employees of the executive branch who must file a public
financial disclosure. This does not change current
requirements, except that paragraph (6) has been amended to
clarify which officers or employees of the Postal Service are
required to file by referencing the levels of the Postal
Career Executive Service rather than an amount of basic pay.
Subsection (g) contains the provisions for extensions for
filing. This does not change current provisions.
Subsection (h) contains a time-limited exception for filing
by persons who are not reasonably expected to serve in their
positions for more than sixty days in a calendar year. This
does not change current authority.
Subsection (i) provides OGE with waiver authority for the
filing requirements primarily for certain special Government
employees. This does not change current waiver authority.
Section 202. Contents of reports
Subsection (a), paragraph (1), subparagraph (A) requires
the reporting of the source, description and category of
amount of earned income including honoraria aggregating more
than $500 in value. For purposes of honoraria received
during Government service, the report must include the
exact amount and the date it was received. This provision
does not include the current requirements for reporting
exact amounts of earned income; exact amounts of any
income that are not dividends, rents, interest and capital
gains; contributions made to charitable organizations in
lieu of honoraria; and the corresponding confidential
reporting requirement of the recipients of the payments in
lieu of honoraria. It also changes the threshold from
``$200 or more'' to ``more than $500'' to conform the
style of the threshold descriptions and raise the amount.
Subparagraph (B) requires the reporting of the source,
description and category of amount of investment income which
exceeds $500 during the reporting period. This change allows
all investment income to be reported by category of amount
rather than only dividends, rents, interest and capital
gains, and it raises the reporting threshold from $200 to
$500.
Subparagraph (C) sets forth the categories of amounts for
reporting earned and investment income. This provision
substitutes 5 categories for the current 11 categories used
for certain types of investment income.
Paragraph (2), subparagraph (A) requires the reporting of
gifts aggregating more than the minimal value established by
the Foreign Gifts Act (currently $260). This does not change
current requirements.
Subparagraph (B) requires the reporting of reimbursements
received for travel when valued at more than the minimal
value established by the Foreign Gifts Act. This changes
current requirements in that it eliminates the requirement to
report the ``itinerary'' of the trip but maintains the
requirement to report the dates and the nature of the
expenses provided.
Subparagraph (C) provides for a publicly available waiver
for reporting gifts. This does not change current authority.
Paragraph (3) contains the requirements for reporting
interests in property or in a trade or business, or for
investment or the production of income property held for the
production of income which has a fair market value in excess
of $5,000 except that deposit accounts in a financial
institution aggregating $100,000 or less and any federal
Government securities aggregating $100,000 or less need not
be reported. This changes the current requirements by raising
the general threshold reporting requirement to $5,000, by
raising the threshold reporting requirement for deposit
accounts from $5,000 to $100,000 and by creating a new
threshold for Government securities at over $100,000 where it
currently is treated as other personal property with a $1,000
reporting threshold.
Paragraph (4) contains the requirements for reporting the
identity and category of value of liabilities which exceed
$20,000 at any time during the reporting period except that
revolving charge accounts need only be reported if the
outstanding liability exceeds $20,000 as of the close of the
reporting period. This changes the current requirements by
raising the threshold from $10,000 to $20,000.
Paragraph (5) contains the reporting requirements for real
property and securities that were: purchased, sold or
exchanged during the preceding calendar year; the value of
the transaction exceeded $5,000; and the property or security
is not already required to be reported as a source of income
or as an asset. This replaces the current requirements to
report the date and category of value of any purchase, sale
or exchange of real property or a security which exceeds
$1,000 and eliminates some redundant reporting required by
current law.
Paragraph (6), subparagraph (A) requires the reporting of
certain positions (e.g. officerships, directorships,
trusteeships,
[[Page S13055]]
partnerships, etc.) held by the reporting official during the
period that encompasses the preceding calendar year and the
current calendar year in which the report is filed. This
changes the current requirement only in that it shortens the
look-back in the reporting period from two years plus the
current to one year plus the current.
Subparagraph (B) requires a non-elected new entrant to
report the sources of individual compensation for personal
services rendered by the reporting individual valued in
excess of $25,000 in the calendar year prior to or the
calendar year in which the first report was filed. It
specifically exempts from reporting those sources that have
already been reported previously as a source of earned
income over $500. It also contains a provision that allows
the reporting individual not to report any information
required by this provision if the information is
confidential as a result of a privileged relationship or
the person for whom the services were provided had a
reasonable expectation of privacy. This changes the
current requirements by raising the threshold from $5,000
to $25,000; by shortening the look-back in the reporting
period from two years plus the current to one year plus
the current year; by deleting, through exception, the
current requirement to again report sources of earned
income required to be reported elsewhere; and by adding an
additional exception for reporting information where the
person for whom the services were provided (client) had a
reasonable expectation of privacy.
Paragraph (7) requires the reporting of a description of
the parties to and the terms of any agreements or
arrangements for future employment (including the date of any
formal agreement for future employment), leaves of absence,
continuation of payments by a former employer and continuing
participation in an employee benefits plan maintained by a
former employer. This changes the current requirements only
in that it eliminates the requirement that dates of all such
agreements must be included, requiring only the dates of
formal agreements for future employment.
Paragraph (8) specifies that a category of value shall be
used to report the total cash value of the reporting
individual in a qualified blind trust. This does not change
the requirement that the total cash value of a blind trust is
to be reported by category of amount, but it does eliminate a
reference to blind trusts executed prior to July 24, 1995
where the trust document prohibited the beneficiary from
receiving this information. There are no such trusts that
would be qualified in the executive branch.
Subsection (b), paragraph (1) provides for reporting
periods for candidates, Presidential nominees and other new
entrants. For income, positions held and client-type
information the reporting period will be the year of filing
and the preceding calendar year. For assets and liabilities,
the reporting period is as of a date that is less than 31
days before the filing date. For agreements and arrangements,
the reporting period is as of the filing date. This maintains
the current reporting periods except that it reiterates that
positions held and client-type information will only be
required to be reported for the preceding calendar year plus
the current calendar year.
Paragraph (2), subparagraphs (A) and (B) provides for
authority to allow a filer to use a format other than the
standard form developed by the Office of Government Ethics or
to provide exact amounts instead of reporting by category of
amount. This does not change current authority.
Subsection (c) provides for reporting periods for certain
first annual report filers and for those terminating
Government service. This does not change current
requirements.
Paragraph (1) provides OGE with regulatory authority to
expand a reporting period to cover days in which the filer
actually served the Government in a filing position, but
information for those days was not otherwise included on a
public financial disclosure. This is a new requirement
intended to allow OGE to define an additional reporting
period, by regulation, to fill a reporting gap that can occur
between a nominee or new entrant report and the first annual
report the individual is required to file. Typically the gap
appears for an individual who enters Government service in
November or December as a new appointee or as a regular new
entrant who filed a first report promptly before the end of
the year and whose next annual does not cover any of the
November/December time frame when they first entered
government service.
Paragraph (2) requires that reports filed at the
termination of Government service shall include that part of
the calendar year of filing up to the date of the termination
of employment. This does not change current requirements; it
is simply a renumbering.
Subsection (d), paragraph (1) sets forth the five
categories of value for reporting assets. This changes the
current eleven categories to five and eliminates the
requirement that liabilities and trusts be reported using the
same categories as assets.
Paragraph (2) sets forth the alternative methods for
valuing an asset. This does not change current alternatives.
Paragraph (3) sets forth the four categories of value for
reporting liabilities and qualified blind trusts. This is a
new provision that sets forth categories of value for
reporting liabilities and qualified blind trusts that are
different from the categories of value for reporting assets,
and provides for only four categories instead of the current
eleven.
Subsection (e), paragraph (1), subparagraph (A) requires
that a report include the sources (but not the amounts) of
earned income (including honoraria) earned by the spouse
which exceed $500 except that when the spouse is self-
employed, only the nature of the business need be reported.
This changes the current requirement by lowering the
threshold amount from $1,000 to match the $500 threshold for
filers, and eliminates the requirement that amounts of
honoraria earned by a spouse be reported.
Subparagraph (B) requires that the same information
regarding investment income required of a filer will be
required to be reported for the spouse or dependent child.
This changes the current requirement by requiring the
reporting of all reportable investment income rather than
specifying only income from assets that are required to be
reported.
Subparagraphs (C) and (D) set forth the reporting
requirements for gifts and reimbursements received by a
spouse or dependent child. These do not change current
requirements.
Subparagraph (E) sets forth the test for the certification
that would provide an exemption for reporting certain spousal
and dependent child's information. There is no change to the
longstanding OGE requirement regarding certification,
although there is a grammatical correction.
Subparagraph (F) specifies that reports filed by nominees,
candidates and new entrants need only contain information
regarding sources of income, assets and liabilities of a
spouse and dependent child. This does not change current
requirements.
Paragraph (2) provides for the non-disclosure of
information of a spouse living separate and apart from the
reporting individual with the intention of terminating the
marriage or providing for permanent separation or of
information relating to income or obligations arising from
the dissolution of a marriage or permanent separation. This
does not change current authority.
Subsection (f), paragraph (1) sets forth the general
requirement for reporting information regarding the holdings
of and the income from a trust in which the filer, spouse or
dependent child has a beneficial interest in principal or
income, and references the exceptions. This does not change
current requirements.
Paragraph (2) describes the three types of trusts for which
the holdings and income would not be subject to the general
reporting requirements set forth in subparagraph (1). This
does not change current descriptions.
Paragraph (3) sets forth the requirements for a qualified
blind trust. This does not change current requirements except
that a reference to trusts qualified prior to January 1, 1991
has been eliminated as no longer necessary.
Paragraph (4) sets forth the requirements for a diversified
blind trust. This does not change current requirements.
Paragraph (5) sets forth the requirements for the public
documents that must be filed in relation to a trust. It does
not change current requirements except that it eliminates a
requirement that the filer file a public copy of a list of
the trust assets with the Office of Government Ethics upon
dissolution of the trust.
Paragraph (6) sets forth the restrictions applicable to the
trustee and the reporting individual with regard to
disclosing and soliciting certain information about a blind
trust and the penalties for violating those restrictions.
This does not change current restrictions or penalties.
Paragraph (7) sets forth the requirements for qualifying as
blind a pre-existing trust. This does not change current
requirements.
Paragraph (8) sets forth the exception for reporting the
financial interests held by a widely held investment fund.
This does not change the current exception.
Paragraph (9), subparagraph (A) sets forth the requirements
that must be met by a new entrant or nominee in order to not
disclose the assets of certain trust and investment funds
where reporting would result in the disclosure of financial
information of another not otherwise required to be report;
disclosure of the information is prohibited by contract or
the information is not otherwise publicly available; and the
reporting individual has agreed to divest of the interest
within 90 days of the date of the agreement.
This is a new provision included to address the reporting
requirements for investment vehicles such as limited
partnerships where the filer may not have specific
information about the underlying holdings of the fund
necessary to complete a financial disclosure form; where the
investment manager does not ordinarily disclose his
investments; or where other investors do not want the
identity of their investments disclosed. In these cases, the
filer's agreement to divest, and interim recusals when
necessary, adequately address conflict of interest concerns.
Subparagraph (B) sets forth the requirements that must be
met by annual and termination report filers in order not to
disclose the assets of certain trust and investment funds
acquired involuntarily during the reporting period and
otherwise described by subparagraph (A). This is new and is
complementary to subparagraph (A).
Subsection (g) provides that financial information
regarding political campaign funds is not required to be
reported in any report pursuant to the title. This does not
change current law.
Subsection (h) provides that gifts and reimbursements
received when the filer was not an officer or employee need
not be included on any report filed pursuant to the title.
This does not change current law.
[[Page S13056]]
Subsection (i) provides that assets, benefits and income
from federal retirement systems or Social Security need not
be reported.
This does not change current law.
Subsection (j) provides that Designated Agency Ethics
Officers shall submit, on a monthly basis, a list of recently
granted criminal conflict-of-interest waivers to the Office
of Government Ethics. It further provides that the Office of
Government Ethics publish notice of these waivers and of the
waivers that has itself granted. This is a new requirement
designed to expedite public notice of waivers.
Paragraph (k) provides that waivers be included with the
filing for the year in which it was granted. This is a new
requirement designed to expedite public availability of
waivers.
Section 203. Filing of reports
Subsection (a) provides for the filing of most reports with
the agency in which the individual will serve. This does not
change current requirements.
Subsection (b) provides that the President and Vice
President shall file reports with the Director of the Office
of Government Ethics. This does not change current
requirements for these individuals although it eliminates the
reference to Independent Counsels and their staffs.
Subsection (c) provides that copies of certain forms that
are filed with an agency shall also be transmitted to the
Office of Government Ethics. This does not change current
requirements.
Subsection (d) requires that the reports filed directly
with the Office of Government Ethics shall be available
immediately to the public. This does not change current
requirements.
Subsection (e) requires that candidates for President and
Vice President shall file with the Federal Election
Commission. This does not change current requirements.
Subsection (f) requires that reports of members of the
uniformed services shall be filed with the Secretary
concerned. This does not change current requirements.
Subsection (g) provides that the Office of Government
Ethics shall develop the forms for reporting for the
executive branch. This does not change current requirements.
Section 204. Failure to file or filing false reports
Subsection (a) provides for civil actions and penalties for
knowing and willful falsification and willful failure to file
or report information. This does not change current law.
Subsection (b) directs OGE, agency heads and Department
Secretaries to refer to the Attorney General the names of
individuals for whom there is reasonable cause to believe
have willfully falsified or willfully failed to file
information required to be reported. This does not change
current law.
Subsection (c) provides for authority to take appropriate
administrative action for failure to file or falsifying or
failing to report required information. This does not change
current law.
Subsection (d), paragraph (1) provides a late filing fee of
$500. This raises the current fee from $200 to $500.
Paragraph (2) provides OGE with the authority to waive a
late filing fee for good cause shown. This changes the
standard of the test for a waiver from ``extraordinary
circumstances.'' Experience has shown a good cause test to be
more appropriate to meet the circumstances where OGE has felt
that the fee should be waived, particularly when the failure
to file on a timely basis has not been the fault of the
filer.
Section 205. Custody of and public access to reports
Subsection (a) sets forth the authority that allows
agencies to make the reports filed pursuant to the title
public and the authority to except from public release
certain reports filed by individuals engaged in intelligence
activities. This does not change current requirements.
Subsection (b), Paragraph (1) sets forth the requirements
for when the reports must become available to the public and
the authority to recover reproduction costs. This does not
change current requirements.
Paragraph (2) sets forth the requirement for a written
request in order to obtain a copy of an individual's report.
This does not change current requirements.
Subsection (c) sets forth the restrictions on obtaining or
using a report for specified purposes and the penalties for
such unlawful activities. This does not change current law.
Subsection (d) provides for the periods a report must be
retained and available for public inspection and for its
subsequent destruction. This does not change current law.
Section 206. Review of reports
Subsection (a) sets forth the time during which an agency
should review a report filed with it. This does not change
current requirements.
Subsection (b), paragraphs (1)-(6) set forth the procedures
to be followed by a reviewing agency including OGE in seeking
to certify a form including steps for assuring compliance
with applicable laws. This does not change current procedures
except that paragraph (b)(2)(A) clarifies that a reviewer may
request additional information if he believes it is necessary
for the form to be complete or for conflicts of interest
analysis. Current law is more general about why a reviewer
may request additional information.
Paragraph (7) gives OGE specific authority to render
advisory opinions interpreting this title and provides a
precedential standard for these opinions. This does not
change current law.
Section. 207. Confidential reports and other additional
requirements
Subsection (a) Paragraph (1) gives OGE the authority to
establish an additional financial disclosure system for the
executive branch. This does not change current authority.
Paragraph (2) provides that financial disclosure reports
filed pursuant to this authority will be confidential. This
does not change current authority.
Paragraph (3) makes clear that nothing in this authority
exempts an individual from filing publicly information
required to be reported elsewhere in the title. This does not
change current authority.
Subsection (b) provides that this authority shall supersede
any general requirement for filing financial information for
the purposes of conflicts of interest with the exception of
the information required by the Foreign Gifts and Decorations
Act. This does not change current law.
Subsection (c) makes clear that reporting any information
does not authorize the receipt of the reported income, gifts
or reimbursements or holding assets, liabilities or
positions, or the participation in transactions that are
prohibited. This does not change current law.
Section 208. Authority of the Comptroller General
This section provides the CG with access to any financial
disclosure report filed pursuant to this title for the
purposes of carrying out his statutory responsibilities. This
does not change current law with regard to the access to
forms. It does, however, eliminate a current requirement that
the CG conduct regular studies of the financial disclosure
system. Such elimination is consistent with efforts to
eliminate periodic Government reports, but does not in any
way affect the CG's authority to conduct such a study on an
as needed or requested basis.
Section 209. Definitions
The following terms are defined: (1) dependent child; (2)
designated agency ethics official; (3) executive branch; (4)
gift; (5) honoraria; (6) income; (7) personal hospitality of
any individual; (8) reimbursement; (9) relative; (10)
Secretary concerned; and (11) value. All terms retain their
current definitions except ``gift'' no longer includes an
exception for consumable products provided by home-State
businesses because of its primary relevance for Members of
Congress and includes an exception for gifts accepted or
reported pursuant to the Foreign Gifts Act; ``honoraria'' no
longer references a section of a law that has been ruled
unconstitutional and/or unenforceable for the executive
branch and instead is now defined as a thing of value for a
speech, article or appearance; and ``income'' now
specifically includes prizes and awards as a part of the
items that are considered income. This changes current law as
described above and eliminates individual terms that were
only required to be defined if the legislative and/or
judicial branch filing requirements were included.
Section 210. Notice of actions taken to comply with ethics
agreements
Subsection (a) sets forth the notification requirements
that must be followed by an individual who has agreed to take
certain actions in order to avoid conflicts of interest.
Notification must first be made no later than the date
specified in the agreement or no later than 3 months after
the date of the agreement. If all actions have not been
taken by the time the first notification is required, the
individual must thereafter, on a monthly basis, file such
notifications until all agreements are met. Current law
only requires one notification; this adds the continuing
monthly requirement to report the status of steps taken to
comply until all terms of the agreement have been met.
Subsection (b) describes the documentation required to be
filed for an ethics agreement that includes a promise to
recuse. This does not change current requirements.
Section 211. Administration of provisions
This provides OGE with clear authority to issue
regulations, develop forms and provide such guidance as is
necessary to implement and interpret this title. This
clarifies current law for the executive branch.
Sec. 5. Provides that the Executive Clerk of the White
House will transmit a list of Presidentially-appointed
positions to each presidential candidate following the
nominating conventions. This is a change to current law,
under which such a list could only be provided to the
President-elect after the November election. This section is
intended to speed the process of identifying and vetting
major Presidential appointees.
Sec. 6. Provides that the head of each agency will submit a
plan, within 180 days of enactment of the Act, that details
the number of Presidentially-appointed positions within the
agency and outlines a plan to reduce the number of those
positions. This is clearly a new requirement, one intended to
begin the dialogue of reducing the large number of appointees
and speeding up the process for positions that remain.
Sec. 7. Provides that the Attorney General will review the
Federal criminal conflict of interest laws and suggest
coordination and improvements that might be made. This
section is designed to aid in the decriminalization of such
laws, in the case when honest mistakes are made in the
process of recording extensive financial transactions.
[[Page S13057]]
Sec. 8. Provides that the amendments made by Section 4 take
effect on January 1 of the year following the date of
enactment of the Act.
______
By Mr. CORZINE (for himself and Mr. Torricelli):
S. 1812. A bill to repeat the provision of the September 11th Victim
Compensation Fund of 2001 that requires the reduction of a claimant's
compensation by the amount of any collateral source compensation
payments the claimant is entitled to receive, and for other purposes;
to the Committee on the Judiciary.
Mr. CORZINE. Madam President, today along with Senator Torricelli I
am introducing legislation to ensure that the families who suffered
tremendous losses in the terrorist attacks on September 11th receive
the compensation they deserve and need to move forward with their
lives. The bill would eliminate provisions in current law that reduce
the compensation to which they are entitled because of contributions
received from other sources.
New Jersey has been tragically affected by the terrorist attacks of
September 11. This past weekend, I met with over 400 family members who
lost a loved one on the 11th. These people are dealing with
unimaginable pain, and many are struggling as they try to provide for
the security of their families.
To obtain assistance, families are being forced to navigate through
extensive paperwork burdens. They have filled out countless forms and
made countless calls seeking answers about the benefits to which they
are entitled. Yet many fear that, notwithstanding their efforts, they
will be unable to secure the assistance that they need so badly.
The American people want to help these victims, and Congress has
acted in an effort to make that happen. Soon after September 11, as
part of broader legislation to support the airline industry, Congress
established a fund to compensate the victims of the attacks, the
September 11 Victim Compensation Fund.
Under that legislation, victims and their families can choose to seek
compensation from the Fund, in return for relinquishing their right to
file suit against an airline. Those victims who opt-in are eligible for
full economic and non-economic damages, but not punitive damages. The
amount of compensation will be determined by a Special Master, Kenneth
Feinberg.
The purpose of the Fund is to ensure that victims are fully
compensated without having to go to court, a process that could take
many years for families who urgently need assistance. I support this
goal. Unfortunately, in our desire to both aid the industry by limiting
their liability and to provide compensation to the victims and their
families, we rushed the legislation to enactment without sufficient
consideration of how the Fund would operate.
As a result, the law contains a glaring flaw. It includes a
``collateral source'' rule, which requires the Special Master to deduct
the amount of life insurance and pension payments from the amount of
compensation that would otherwise be available to victims and families
under the Fund. This rule, in my view, is a serious mistake, and
threatens to deny needed compensation for many of these victims.
It is wrong to treat victims of the disaster on September 11 any
differently. Reducing their awards not only harms these families, it
also runs counter to the goals of the original legislation. After all,
if families cannot obtain the compensation they need through the
Victims Compensation Fund, some of them will be forced to go straight
to court. That will delay the compensation they need, and subject
airlines to costs and liability that Congress sought to protect them
against.
I would note, that in addition to repealing the collateral source
rule, my legislation makes clear that charitable donations should not
be considered collateral sources and should not count against
compensation awarded under the Fund. This no only ensures that families
get the compensation they need, but its ensures that those who have
made charitable contributions are not treated unfairly. After all,
those who have generously sent checks to charitable organizations did
not think that their contributions would reduce Federal compensation.
In effect, such a reduction would be a tax on people who have
contributed their own funds in an effort to help. In addition, without
such a clarification, charities may withhold funds for victims until
after they recover from the fund, in order to avoid an offset.
Recovery under the Victims' Compensation Fund is not the only relief
that these grieving families need. Although charities have provided
some assistance to families over the past three months, that funding
has only been a stopgap measure. These families need immediate tax
relief. I am pleased that just before Thanksgiving the Senate passed a
comprehensive victims' tax relief bill, but unfortunately the House has
only passed a more narrow version of the legislation.
These families need immediate relief so that they can plan and
provide for their families. They need: a waiver of federal income tax
liability for this year and last year; payroll tax relief--this is
particularly important to low-wage workers, who are less likely to
benefit from the waiver of income tax liability, and are also less
likely to have left their families with life insurance and pensions;
reduced estate taxes; exclusion of survivor, disability and emergency
relief benefits from taxation; and finally, we need to make it easier
for charitable organizations to make disaster relief payments to help
victims and their families with both short-term and long-term needs,
such as scholarships for victims' children.
Many of these proposals are based on provisions in current law that
provide tax relief to soldiers who die in combat and government
employees who die in terrorist attacks outside the United States.
Extending these provisions to the victims of the terrorist attacks is
appropriate because the attacks of September 11 were attacks on our
entire nation.
Last week some families came down here to meet with the New Jersey
delegation and House and Senate leadership to plead for immediate
assistance, so that they can pay their mortgages, keep children in
school, and keep their heads above water. They made their case
powerfully and effectively, and we in Congress must no let them down.
I urge my colleagues to stand up for these victims and support my
legislation. I asks unanimous consent the text of the bill be printed
in the Record.
There being no object, the bill was ordered to be printed in the
Record, as follows:
S. 1812
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``September 11th Victim
Compensation Fund Fairness Act''.
SEC. 2. REPEAL OF COLLATERAL COMPENSATION PROVISION.
(a) Repeal of Collateral Compensation Provision.--Section
405(b)(6) of the September 11th Victim Compensation Fund of
2001 (49 U.S.C. 40101 note) is hereby repealed.
(b) Application of the September 11th Victim Compensation
Fund of 2001.--The compensation program established under the
September 11th Victim Compensation Fund of 2001 (49 U.S.C.
40101 note) shall be administered as if section 405(b)(6) of
that Act had not been enacted.
SEC. 3. AMENDMENT OF COLLATERAL SOURCE DEFINITION.
Paragraph (6) of section 402 of the September 11th Victim
Compensation Fund of 2001 (49 U.S.C. 40101 note) is amended
by adding at the end the following: ``The term `collateral
source' does not include payments or other assistance
received from a nonprofit organization, if such organization
is described in paragraph (3) or (4) of section 501(c) of the
Internal Revenue Code of 1986 and is exempt from tax under
section 501(a) of such Code.''.
____________________