[Congressional Record Volume 149, Number 26 (Wednesday, February 12, 2003)]
[House]
[Pages H413-H415]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  AMERICAN SPIRIT FRAUD PREVENTION ACT

  Mr. STEARNS. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 346) to amend the Federal Trade Commission Act to increase 
civil penalties for violations involving certain proscribed acts or 
practices that exploit popular reaction to an emergency or major 
disaster declared by the President, and to authorize the Federal Trade 
Commission to seek civil penalties for such violations in actions 
brought under section 3 of that Act.
  The Clerk read as follows:

                                H.R. 346

       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 ``American Spirit Fraud 
     Prevention Act''.

     SEC. 2. INCREASE IN PENALTIES FOR UNFAIR OR DECEPTIVE ACTS OR 
                   PRACTICES EXPLOITING REACTION TO CERTAIN 
                   EMERGENCIES AND MAJOR DISASTERS.

       (a) Violations of Prohibition Against Unfair or Deceptive 
     Acts or Practices.--Section 5(m)(1) of the Federal Trade 
     Commission Act (15 U.S.C. 45(m)(1)) is amended by adding at 
     the end the following:
       ``(D) In the case of a violation involving an unfair or 
     deceptive act or practice in an emergency period or disaster 
     period, the amount of the civil penalty under this paragraph 
     shall be double the amount otherwise provided in this 
     paragraph, if the act or practice exploits popular reaction 
     to the national emergency, major disaster, or emergency that 
     is the basis for such period.
       ``(E) In this paragraph--
       ``(i) the term `emergency period' means the period that--
       ``(I) begins on the date the President declares a national 
     emergency under the National Emergencies Act (50 U.S.C. 1601 
     et seq.); and
       ``(II) ends on the expiration of the 1-year period 
     beginning on the date of the termination of the national 
     emergency; and
       ``(ii) the term `disaster period' means the 1-year period 
     beginning on the date the President declares an emergency or 
     major disaster under the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5121 et seq.).''.
       (b) Violations of Other Laws Enforced by the Federal Trade 
     Commission.--Section 13 of the Federal Trade Commission Act 
     (15 U.S.C. 53) is amended by adding at the end the following:
       ``(e)(1) If a person, partnership, or corporation is found, 
     in an action under subsection (b), to have committed a 
     violation involving an unfair or deceptive act or practice in 
     an emergency period or a disaster period, and if the act or 
     practice exploits popular reaction to the national emergency, 
     major disaster, or emergency that is the basis for such 
     period, the court, after awarding equitable relief (if any) 
     under any other authority of the court, shall hold the 
     person, partnership, or corporation liable for a civil 
     penalty of not more than $22,000 for each such violation.
       ``(2) In this subsection--
       ``(A) the term `emergency period' means the period that--
       ``(i) begins on the date the President declares a national 
     emergency under the National Emergencies Act (50 U.S.C. 1601 
     et seq.); and
       ``(ii) ends on the expiration of the 1-year period 
     beginning on the date of the termination of the national 
     emergency; and
       ``(B) the term `disaster period' means the 1-year period 
     beginning on the date the President declares an emergency or 
     major disaster under the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5121 et seq.).''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida (Mr. Stearns) and the gentlewoman from Illinois (Ms. 
Schakowsky) each will control 20 minutes.
  The Chair recognizes the gentleman from Florida (Mr. Stearns).


                             General Leave

  Mr. STEARNS. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks on this legislation and to insert extraneous material in the 
bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?

[[Page H414]]

  There was no objection.
  Mr. STEARNS. Madam Speaker, I yield myself such time as I may 
consume.
  In the weeks since September 11, 2001, this Nation has mourned, has 
been angry, has been anxious, and has been very generous in response to 
the needs of those who were affected. This American spirit has reached 
record levels and now stands as symbolic as this Nation's greatness and 
ability to support a just cause, the relief of the victims and their 
families.
  But we have also seen the darker side of humanity. Reports of people 
using this tragedy and the generous American spirit for their own gain 
have appeared. Scam artists and frauds know that in the aftermath, 
Americans are all too eager to help. They also appear in the wake of 
hurricanes, earthquakes, floods, and other such similar disasters.
  The Department of Justice, the Federal Trade Commission, and the 
States' attorneys general already have some powers to prosecute those 
engaged in fraud and deceptive practices, but we must make it clear 
that we will severely punish those who aim to take advantage of 
America's charity or an organization's good name during such an 
emergency.
  Congress must also make sure that consumers are not inundated with 
false and deceptive claims about goods and services that would exploit 
the circumstances of an emergency or of such a disaster. Whether it is 
selling Cipro and other drugs under false information or offering 
fraudulent terrorist insurance, these practices must carry a penalty 
commensurate with their nature. We cannot let stand the detestable 
actions of so few that mar the pride and patriotism we all share over 
the phenomenal generosity and outpouring of support from across the 
United States and world. And we cannot let the fear and anxiety of our 
citizens be preyed upon by scam artists peddling their cheats and their 
swindles.
  Madam Speaker, I have no doubt that the victims of any tragedy, their 
families and their friends and all Americans are as humbled as I am 
with the response of this country to disasters. Now we need to ensure 
that those who would abuse this determined American spirit are equally 
staggered at our response.
  The American Spirit Fraud Prevention Act would double the penalties 
that the Federal Trade Commission would levy during times of 
presidentially declared emergencies and disasters if the offending 
action aims to exploit the crisis.
  These times, Madam Speaker, sadly occur more often than one might 
think, and the attempts to profit from them follow just as regularly. 
All hope of profit and gain must be removed from the equation for these 
people.
  I personally would like to thank the gentleman from New Hampshire 
(Mr. Bass) for taking the initiative on this very important bill 
authoring H.R. 346, the American Spirit Fraud Prevention Act.
  Madam Speaker, I reserve my time.
  Ms. SCHAKOWSKY. Madam Speaker, I yield myself as much time as I may 
consume.
  I rise in strong support of H.R. 346, the American Spirit Fraud 
Prevention Act, and I also want to commend the gentleman from New 
Hampshire (Mr. Bass) for his leadership on this issue, as well as my 
colleagues on the Committee on Energy and Commerce for ensuring this 
measure's swift passage through the committee.
  September 11 was the worst attack and loss this country has ever 
experienced on our own soil. Countless lives were lost, and the Nation 
was confronted with a new reality, a harsh sense of our 
vulnerabilities. It was the single darkest day this Nation has faced. 
The one saving grace, the one ray of hope that helped combat the pain, 
suffering, and sadness of the Nation was the heroism, leadership, and 
commitment displayed by Americans who were determined to help.
  Some helped by giving their lives, and their stories will inspire us 
forever. Others from across the country helped by giving. Americans 
made generous donations to provide aid to victims of the terrorist 
attacks. Over $1 billion was raised for relief efforts and aid to 
victims' families in the wake of September 11, from donations, large 
and small, made by the American public.
  Unfortunately, however, some in our country demonstrated the shameful 
side of humanity by attempting to illegally profit from the tragedy. 
Those individuals tried to exploit the generosity demonstrated by so 
many through fraudulent solicitations in which they claimed to be 
representing organizations benefiting the victims or providing 
emergency response services. While those despicable acts are already 
illegal, it is important for the Congress on behalf of our constituents 
to send a clear message that such behavior will be subjected to even 
more severe penalties in the future.
  Under this measure the maximum civil fines for actions of fraud and 
attempts to profit from national emergencies in violation of the 
Federal Trade Commission Act will be doubled. These increased penalties 
will apply to all violations that occur within 1 year of the time the 
President declares a disaster and all violations that occurred during 
and up to 1 year after the expiration of a presidential emergency 
declared under the National Emergencies Act.
  Madam Speaker, the public is caring and committed. We care about the 
well-being of our neighbors, and we are committed to do what we can to 
ensure prosperity and security for this Nation, and we will not 
tolerate those who undermine and abuse the American spirit.
  I urge all of my colleagues to join me in supporting this measure.
  Madam Speaker, I yield the balance of my time.
  Mr. STEARNS. Madam Speaker, I have no further requests for time, and 
I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Florida (Mr. Stearns) that the House suspend the rules 
and pass the bill, H.R. 346.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. STEARNS. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, this 15-minute vote on H.R. 346 will be 
followed by 5-minute votes on the two questions previously postponed.
  Votes will be taken in the following order:
  H.R. 346, by the yeas and nays;
  House Resolution 62, by the yeas and nays; and
  H.R. 395, by the yeas and nays.
  The vote was taken by electronic device, and there were--yeas 422, 
nays 1, not voting 11, as follows:

                             [Roll No. 24]

                               YEAS--422

     Abercrombie
     Ackerman
     Aderholt
     Akin
     Alexander
     Andrews
     Baca
     Bachus
     Baird
     Baker
     Baldwin
     Ballance
     Ballenger
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bass
     Beauprez
     Becerra
     Bell
     Bereuter
     Berkley
     Berman
     Berry
     Biggert
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blackburn
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Boswell
     Boucher
     Boyd
     Bradley (NH)
     Brady (PA)
     Brady (TX)
     Brown (OH)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Burgess
     Burns
     Burr
     Burton (IN)
     Buyer
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardin
     Cardoza
     Carson (IN)
     Carson (OK)
     Carter
     Case
     Castle
     Chabot
     Chocola
     Clay
     Clyburn
     Coble
     Cole
     Collins
     Combest
     Conyers
     Cooper
     Costello
     Cox
     Cramer
     Crane
     Crenshaw
     Crowley
     Culberson
     Cummings
     Cunningham
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis (IL)
     Davis (TN)
     Davis, Jo Ann
     Davis, Tom
     Deal (GA)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     DeLay
     DeMint
     Deutsch
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Doggett
     Dooley (CA)
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Emanuel
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Everett
     Farr
     Fattah
     Feeney
     Filner
     Flake
     Fletcher
     Foley
     Forbes
     Ford
     Fossella
     Frank (MA)
     Franks (AZ)
     Frelinghuysen
     Frost
     Gallegly
     Garrett (NJ)
     Gerlach
     Gibbons
     Gilchrest
     Gillmor
     Gingrey
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Goss
     Granger
     Graves
     Green (TX)
     Green (WI)
     Greenwood
     Grijalva
     Gutierrez
     Gutknecht
     Hall
     Harman
     Harris
     Hart
     Hastings (FL)
     Hastings (WA)

[[Page H415]]


     Hayes
     Hayworth
     Hefley
     Hensarling
     Herger
     Hill
     Hinchey
     Hinojosa
     Hobson
     Hoeffel
     Hoekstra
     Holden
     Holt
     Honda
     Hooley (OR)
     Hostettler
     Houghton
     Hoyer
     Hulshof
     Hunter
     Hyde
     Inslee
     Isakson
     Israel
     Issa
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Janklow
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones (NC)
     Jones (OH)
     Kanjorski
     Kaptur
     Keller
     Kelly
     Kennedy (MN)
     Kennedy (RI)
     Kildee
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kleczka
     Kline
     Knollenberg
     Kolbe
     Kucinich
     LaHood
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Leach
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lofgren
     Lucas (KY)
     Lucas (OK)
     Lynch
     Majette
     Maloney
     Manzullo
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCotter
     McCrery
     McDermott
     McGovern
     McHugh
     McInnis
     McIntyre
     McKeon
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Mica
     Michaud
     Millender-McDonald
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Mollohan
     Moore
     Moran (KS)
     Moran (VA)
     Murphy
     Murtha
     Musgrave
     Myrick
     Nadler
     Napolitano
     Neal (MA)
     Nethercutt
     Ney
     Northup
     Norwood
     Nunes
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Osborne
     Ose
     Otter
     Owens
     Oxley
     Pallone
     Pascrell
     Pastor
     Payne
     Pearce
     Pelosi
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Pombo
     Pomeroy
     Porter
     Portman
     Price (NC)
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Renzi
     Reyes
     Reynolds
     Rodriguez
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Ross
     Rothman
     Roybal-Allard
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Sandlin
     Saxton
     Schakowsky
     Schiff
     Schrock
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Sherwood
     Shimkus
     Shuster
     Simmons
     Skelton
     Slaughter
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Souder
     Spratt
     Stark
     Stearns
     Stenholm
     Strickland
     Stupak
     Sullivan
     Sweeney
     Tancredo
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Tiahrt
     Tierney
     Toomey
     Towns
     Turner (OH)
     Turner (TX)
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Vitter
     Walden (OR)
     Walsh
     Wamp
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Woolsey
     Wu
     Wynn
     Young (AK)
     Young (FL)

                                NAYS--1

       
     Paul
       

                             NOT VOTING--11

     Allen
     Cubin
     Dingell
     Ferguson
     Gephardt
     Kilpatrick
     Lowey
     Simpson
     Smith (MI)
     Taylor (NC)
     Tiberi


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (Mrs. Biggert) (during the vote). Members are 
reminded that there are less than 2 minutes remaining on the clock.

                              {time}  1701

  Mr. FLAKE changed his vote from ``nay'' to ``yea.''
  So (two-thirds having voted in favor thereof), the rules were 
suspended and the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________