[Congressional Record Volume 148, Number 3 (Friday, January 25, 2002)]
[Senate]
[Pages S131-S134]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    HOPE FOR CHILDREN ACT--Continued


                           Amendment No. 2702

  Mr. ALLEN. Mr. President, I call up amendment No. 2702.
  The PRESIDING OFFICER. The clerk will report the amendment.
  The legislative clerk read as follows:

       The Senator from Virginia [Mr. Allen] proposes an amendment 
     numbered 2702 to the language proposed to be stricken by 
     amendment No. 2698.

  Mr. ALLEN. Mr. President, I ask unanimous consent the reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

  Purpose: To exclude from gross income certain terrorist attack zone 
             compensation of civilian uniformed personnel)

       At the appropriate place, insert the following

              TITLE__TERRORIST RESPONSE TAX EXEMPTION ACT

     SECTION 1. SHORT TITLE.

       This title may be cited as the ``Terrorist Response Tax 
     Exemption Act''.

     SEC. 2. EXCLUSION OF CERTAIN TERRORIST ATTACK ZONE 
                   COMPENSATION OF CIVILIAN UNIFORMED PERSONNEL.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to items 
     specifically excluded from gross income) is amended by 
     inserting after section 112 the following new section:

     ``SEC. 112A. CERTAIN TERRORIST ATTACK ZONE COMPENSATION OF 
                   CIVILIAN UNIFORMED PERSONNEL.

       ``(a) In General.--Gross income does not include 
     compensation received by a civilian

[[Page S132]]

     uniformed employee for any month during any part of which 
     such employee provides security, safety, fire management, or 
     medical services during the initial response in a terrorist 
     attack zone.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Civilian uniformed employee.--The term `civilian 
     uniformed employee' means any nonmilitary individual employed 
     by a Federal, State, or local government (or any agency or 
     instrumentality thereof) for the purpose of maintaining 
     public order, establishing and maintaining public safety, or 
     responding to medical emergencies.
       ``(2) Initial response.--The term `initial response' means, 
     with respect to any terrorist attack zone, the period 
     beginning with the receipt of the first call for services 
     described in subsection (a) in such zone by an entity 
     described in paragraph (1) and ending with the beginning of 
     the recovery phase in such zone as determined by the 
     appropriate official of the Federal Emergency Management 
     Agency.
       ``(2) Terrorist attack zone.--
       ``(A) In general.--The term `terrorist attack zone' means 
     any geographic area designated in an Executive order by the 
     President, pursuant to a request by the chief executive 
     officer of the State in which such area is located to the 
     appropriate official of the Federal Emergency Management 
     Agency, to be an area in which--
       ``(i) a violent act or acts occurred which--

       ``(I) were dangerous to human life and a violation of the 
     criminal laws of the United States or of any State, and
       ``(II) would appear to be intended to intimidate or coerce 
     a civilian population, influence the policy of a government 
     by intimidation, or affect the conduct of a government by 
     assassination or kidnapping, and

       ``(ii) as a direct result of such act or acts, loss of 
     life, injury, or significant damage to property or cost of 
     response occurred.
       ``(B) Significant damage to property or cost of response.--
     For purposes of subparagraph (A)(ii), damage to property or 
     cost of response with respect to any area is significant if 
     such damages or cost exceeds or will exceed $500,000.
       ``(C) Limitation on designation.--An area may not be 
     designated as a terrorist attack zone under subparagraph (A) 
     if a negative economic impact to such area was the sole 
     result of the act or acts described in subparagraph (A)(i).
       ``(3) Compensation.--The term `compensation' does not 
     include pensions and retirement pay.''.
       (b) Conforming Amendments.--
       (1) Section 3401(a)(1) of the Internal Revenue Code of 1986 
     is amended by inserting ``or section 112A (relating to 
     certain terrorist attack zone compensation of civilian 
     uniformed personnel)'' after ``United States)''.
       (2) The table of sections for part III of subchapter B of 
     chapter 1 of such Code is amended by inserting after the item 
     relating to section 112 the following new item:

``Sec. 112A. Certain terrorist attack zone compensation of civilian 
              uniformed personnel.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending on or after September 11, 
     2001.

  Mr. ALLEN. Mr. President, I rise to ask for my colleagues support of 
amendment No. 2702, my ``Terrorist Zone Tax Exemption Act.'' I would 
like to share with the Presiding Officer, my colleagues, and the 
American people the purpose of this amendment.
  As we well know, the tragic events of September 11 demonstrated the 
worst attack that we have seen in this country, maybe in our entire 
history. At the same time--while seeing some of the most vile activity 
that mankind has ever seen--we saw a demonstration of the best of the 
American spirit. Unfortunately, our Nation has been forever changed 
since those attacks of September 11, 2001. However, we should remember 
that we have been changed in some good ways. We are now united and 
resolved--very resolved--to combat terrorism worldwide. This war on 
terrorism is unlike any other war we have ever fought. Indeed, the 
attack of September 11 has actually changed the definition of 
combatants, so that now not only are military personnel tasked to 
locate and eradicate potential terrorist threats, but also civilian 
police, fire and rescue personnel are charged with maintaining public 
safety after a terrorist attack. And they are all subject to attack and 
risk.
  In recognition of this new reality, I have offered this amendment 
that will extend the current tax exemption for military service members 
serving in a combat zone--use that same logic, that same principle to 
provide those same sorts of tax exemption benefits--to civilian 
uniformed employees who respond to terrorist attacks on our own soil.
  Specifically, my amendment includes those brave police officers, 
firefighters, and EMTs who risk their lives to defend us and our 
property.
  It defines a terrorist attack zone as an area where someone has 
attempted to intimidate or coerce the civilian population or influence 
the policy of a government by conducting criminal terrorist acts.
  It also extends this exemption to those who are now an integral part 
of our growing homeland security network.
  Congress has already recognized the extraordinary sacrifices that our 
members of the Armed Forces have performed in their service in combat 
zones. Let us take this opportunity to honor our law enforcement 
officers, firefighters, and rescue personnel who have also placed 
themselves in danger in service to their country, to their States, and 
to their communities in protecting their fellow citizens from the enemy 
and these terrorist attacks.
  Let's recognize, whether they were in the World Trade Center, at the 
Pentagon, or on airplanes that were commandeered, people were in 
dangerous situations, and many lost their lives. Others were rescuing 
people in toxic air, where there was falling debris, where there was 
burning embers or plastics or fuel, and other dangerous situations.
  Our enemies, in their attacks, make all Americans--not just our 
military, but our civilians as well--the target of their attacks. They 
do so without regard for the thousands of lives that would be affected 
by these attacks.
  So now the Federal Government must adapt the Tax Code to account for 
those who serve the public's safety here at home as it does for those 
who serve our military objectives.
  These wonderful men and women we have heard about, read about--many 
who lost their lives; but also those who survived--these men and women 
are patriots; they are heroes. All of those who responded to this vile 
act of war on the United States on September 11, 2001, carry forth a 
unity of purpose for compassion, for liberty, and for justice. We must 
honor their hard work and resolve, for their example truly exemplifies 
our diverse, strong, and respectful Nation.
  And so I ask my colleagues to join me in supporting my amendment. It 
is an expression of gratitude to those who wear the badges, wear the 
firefighter boots, carry the medical bags, and answer the call to 
protect life and property in the wake of the dastardly, cowardly 
attacks of terrorists.
  This measure has been supported by many organizations. It has the 
support of the 299,000 members of the Fraternal Order of Police; the 
International Association of Fire Chiefs; the New York City Detectives 
Endowment Association, representing 7,500 active New York Police 
Department detectives; the National Association of Police Officers, 
representing 220,000 law enforcement officers across our country. The 
Capital Police Labor Board strongly supports it as well.
  Some may ask what is the fiscal impact of this. If, say, you were a 
police officer or firefighter or an EMT worker responding to a 
terrorist attack such as that attacks on New York City and the 
Pentagon--and those are the only places that would fit the description 
of a terrorist attack zone under this bill--your income for that month 
of September, would be exempt from Federal taxation, just as a military 
pilot flying over Afghanistan receives now. That income that he earns 
or she earns is exempt from Federal taxes for time spent in response, 
and is validated on a month-to-month basis. It comes out to 
approximately $205 a month for our rescue workers. It is not a lot of 
money, but it is an expression of gratitude.
  The total fiscal impact is about $7 million. Again, not much in the 
whole scheme of things here in Washington, but still an expression of 
support.
  I would like to read from some of the groups that have endorsed this 
legislation or this amendment. For example, the Detectives Endowment 
Association of the Police Department for the City of New York:

       As President of the New York City Detectives Endowment 
     Association, representing 7,500 active detective members of 
     the NYPD, and as President of the National Association of 
     Police Organizations, representing 220,000 law enforcement 
     officers from all across the United States, I wish to commend 
     and support [this legislation.]

  Mr. Tom Scotto, who is the President of both the Endowment 
Association and NAPO, goes on to write:


[[Page S133]]


       Having personally experienced the tragic events of the 
     terrorist attacks on the World Trade Center on September 11, 
     2001, I believe that this legislation is justifiable and will 
     go a long way towards boosting the morale of these public 
     servants who respond to such events.

  From the Grand Lodge of the Fraternal Order of Police, their 
President, Steve Young, writes that they very strongly support this 
Terrorist Response Tax Exemption Act or this amendment. They are in 
strong support.

       September 11 was a day of terrible tragedy, but in the 
     midst of flames and the rubble, we saw shining examples of 
     heroism from our law enforcement officers and other rescue 
     workers. Placing their own lives in jeopardy, these 
     courageous men and women helped rescue thousands. They called 
     their own nation to heroism in the face of the long and 
     difficult struggle that looms in our future.
       Your bill would exempt the income of uniform rescue 
     personnel in ``terrorist attack zones,'' from income tax 
     during the months in which they perform their duties in 
     response to such attacks. Our nation is engaged in a conflict 
     that will not be fought between just armies or soldiers. Our 
     hidden enemies aim their attacks at civilian targets and 
     public safety officers--police, firefighters, and emergency 
     medical personnel--will be the first to respond to the 
     scene, not the U.S. military. We think it fitting, 
     therefore, that your bill mirrors current law giving 
     military personnel tax relief while serving in a combat 
     zone.

  It goes on to commend the measure.
  Finally, I would like to share with my colleagues a letter of 
endorsement from the International Association of Fire Chiefs. This is 
signed by their executive director, Gary Briese.

       Dear Senator Allen: On behalf of the International 
     Association of Fire Chiefs and America's 1.1 million fire 
     fighters, I would like to thank you for introducing 
     legislation to provide tax relief for fire fighters and other 
     first responders who respond to acts of terrorism.
       As we understand it, your [measure], the Terrorist Response 
     Exemption Act, would provide an exemption from federal income 
     taxes to those who respond to terrorist incidents while they 
     are engaged in emergency operations. This exemption already 
     exists for members of our armed forces who enter into combat 
     zones.
       Assistance of any kind to fire fighters is of great help, 
     particularly in the wake of the stunning and tragic events of 
     September 11. Thank you for your continued support of our 
     nation's fire fighters.

  Those are the comments of many decent leaders who represent literally 
tens of thousands, hundreds of thousands of outstanding individuals who 
devote their lives to protecting their communities and the lives of 
people in their communities. Since these vile attacks of September 11, 
we have seen the nature of warfare change dramatically. As long as our 
enemies are willing to conduct these suicide bombings, these terrorist 
attacks, acts we consider brazen and outrageous, and are particularly 
outrageous since they are attacking us here in our homeland, civilians, 
undefended men, women, and children, people commandeered on an 
aircraft, people in office buildings, as long as this continues, our 
laws should reflect this new reality.
  Our firefighters, police and EMTs, other rescue personnel have all 
proven themselves to be not only heroes but superheroes in these 
attacks; they will hopefully never be called on again to perform such 
duty. But if they do, if that sad eventuality should occur, I think 
they deserve all the protections and benefits in these modern combat 
zones that we can offer.
  I ask my colleagues, in a bipartisan effort to support this amendment 
to this measure, let's support our firefighters, our police, our 
emergency medical personnel.
  This is a sad new reality for our country. We are united. Let's 
support our heroes. It is not a lot of money, but it means a lot.
  I think it expresses our sentiment that we want to support them as 
they protect us and our lives and our livelihoods.
  I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                Amendment No. 2721 to Amendment No. 2698

  Mr. REID. Mr. President, I send an amendment to the desk on behalf of 
Senator Baucus which would be the next Democratic amendment in order.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Nevada [Mr. Reid], for Mr. Baucus, 
     proposes an amendment numbered 2721 to amendment No. 2698.

  Mr. REID. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

         (Purpose: To provide emergency agriculture assistance)

       At the end add the following:

               TITLE ____EMERGENCY AGRICULTURE ASSISTANCE

                   Subtitle A--Income Loss Assistance

     SEC. ____01. INCOME LOSS ASSISTANCE.

       (a) In General.--The Secretary of Agriculture (referred to 
     in this title as the ``Secretary'') shall use $1,800,000,000 
     of funds of the Commodity Credit Corporation to make 
     emergency financial assistance available to producers on a 
     farm that have incurred qualifying income losses in calendar 
     year 2001.
       (b) Administration.--The Secretary shall make assistance 
     available under this section in the same manner as provided 
     under section 815 of the Agriculture, Rural Development, Food 
     and Drug Administration, and Related Agencies Appropriations 
     Act, 2001 (Public Law 105-277; 114 Stat. 1549A-55), including 
     using the same loss thresholds for the quantity and economic 
     losses as were used in administering that section.
       (c) Use of Funds for Cash Payments.--The Secretary may use 
     funds made available under this section to make, in a manner 
     consistent with this section, cash payments not for crop 
     disasters, but for income loss to carry out the purposes of 
     this section.

     SEC. ____02. LIVESTOCK ASSISTANCE PROGRAM.

       (a) In General.--The Secretary shall use $500,000,000 of 
     the funds of the Commodity Credit Corporation to make and 
     administer payments for livestock losses to producers for 
     2001 losses in a county that has received an emergency 
     designation by the President or the Secretary after January 
     1, 2001, of which $12,000,000 shall be made available for the 
     American Indian livestock program under section 806 of the 
     Agriculture, Rural Development, Food and Drug Administration, 
     and Related Agencies Appropriations Act, 2001 (Public Law 
     105-277; 114 Stat. 1549A-51).
       (b) Administration.--The Secretary shall make assistance 
     available under this section in the same manner as provided 
     under section 806 of the Agriculture, Rural Development, Food 
     and Drug Administration, and Related Agencies Appropriations 
     Act, 2001 (Public Law 105-277; 114 Stat. 1549A-51).

                       Subtitle B--Administration

     SEC. ____11. COMMODITY CREDIT CORPORATION.

       The Secretary shall use the funds, facilities, and 
     authorities of the Commodity Credit Corporation to carry out 
     this title.

     SEC. ____12. ADMINISTRATIVE EXPENSES.

       (a) In General.--In addition to funds otherwise available, 
     not later than 30 days after the date of enactment of this 
     Act, out of any funds in the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Secretary of Agriculture to pay the salaries and expenses 
     of the Department of Agriculture in carrying out this title 
     $50,000,000, to remain available until expended.
       (b) Receipt and Acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under subsection (a), 
     without further appropriation.

     SEC. ____13. REGULATIONS.

       (a) In General.--The Secretary may promulgate such 
     regulations as are necessary to implement this title.
       (b) Procedure.--The promulgation of the regulations and 
     administration of this subtitle shall be made without regard 
     to--
       (1) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (c) Congressional Review of Agency Rulemaking.--In carrying 
     out this section, the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.

  Mr. REID. Mr. President, does the Senator from Virginia have any 
business before the Senate at this time?
  Mr. ALLEN. I do not.


                            vote explanation

  Mrs. CLINTON. Mr. President, I was unable to be present for today's 
procedural vote pertaining to the Smith amendment. Had I been present, 
I would have voted ``no'' on the motion to waive the Budget Act with 
respect to the Smith second-degree amendment to the Daschle substitute 
amendment. The Daschle amendment includes 1-year 30-percent bonus 
depreciation for assets either put in operation or binding contracts 
signed by

[[Page S134]]

September 10, 2002. The Smith amendment would have provided 30-percent 
bonus depreciation for 3 years, causing a deepening of the projected 
Federal deficit and extending the incentive beyond the forecasted 
period of the current economic downturn. Moreover, the incentive for a 
company to act now to acquire and place into service assets that do not 
take years to produce would be reduced under a 3-year bonus 
depreciation proposal, as proposed by Senator Smith. I would also note 
that my absence for this vote did not affect the outcome of the vote. 
The Smith amendment was rejected in a 39-45 vote, and would have 
required 60 votes to prevail.

                          ____________________