[Congressional Record Volume 152, Number 134 (Thursday, December 7, 2006)]
[Senate]
[Pages S11429-S11442]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FAREWELL TO THE SENATE
Mr. FRIST. Mr. President, about 2 months ago, late Sunday afternoon,
when no one was around, I came into this Chamber to carry out a time-
honored tradition, nearly as old as the institution itself. I came over
to this desk and I opened the drawer and the tradition of carving your
initials or your name into the bottom of that drawer was carried out.
As you open these drawers, as many of us do when we are sitting here
listening and debating, you tend to look at the names that are there. I
see Robert Taft at the bottom of this drawer, Hugh Scott, Everett
Dirksen, Howard Baker, Bob Dole, Trent Lott, and the list goes on. And
with the quiet here, you begin to reflect a little bit. But then all of
a sudden you start thinking, as you are carving your name into that
drawer, that there aren't very many things that you leave that are
permanent around here, but that is one.
It confronted me, as it hits me with such force today, that our time
here, indeed, is temporary, and that we are here to occupy these seats
at these desks just for a period of time. We can never forget that we
don't own these seats. We don't own our presence in this U.S. Senate.
It is with that recognition that I address my colleagues today.
I have reflected a lot over the last several weeks, and I think back
to that nonpolitician who came to this city, this body, 12 years ago
with a whole lot of hope for the people of Tennessee and a whole lot of
hope for this country. I think back to the people who put their trust
in that man's hands.
Indeed, it was 12 years ago that Karyn and I came to Washington. I
came as a citizen legislator with absolutely no, no political
experience. I was a doctor. I spent 20 years in the profession of
healing. In my acceptance speech back 12 years ago, I pledged at that
time to my fellow Tennesseans that Karyn and I would go to Washington,
that we would serve for 12 years, for a limited amount of time, and
that we would go back to Tennessee and live under the laws that we
helped enact. And that is exactly what we will do. We are going to go
back to Tennessee in a few weeks, and I am going to live in the very
same house that I was born in 54 years ago.
I still remember coming to the Hill early on, and I know a number of
new colleagues are coming to the Hill. I think back, and my former
chief of staff, who was very green at the time--I just told you how
green I was at the time--I remember standing right in front of the
Capitol, and we had to stop somebody and ask: Where is this building
called the Russell Building? And they told us. Luckily, I don't think
they knew who I was at the time.
But I did come believing deeply in the promise that I had made. I
believed in my heart that with determination--and I had seen it in
surgery and in the operating room--one can make a difference in this
world. Today, I look back and I see that I was only half right. One
person can make a difference, and each of us do in our own ways. But to
make a difference, we can't do it alone.
I certainly couldn't have done it without people who stood both
behind me and with me over the last 12 years. I agree with all of my
colleagues. I know they know Karyn. And, indeed, she has honored me by
her unwavering love each step along the way. Her grace in carrying out
her official responsibilities, her commitment to the development of
character in our three boys, her moral support, her spiritual support
for me and our family, she has been that guiding river that has kept us
on course as we traveled two very different professions occupations:
that of being a heart surgeon and that of serving as a U.S. Senator.
Our three boys most of you know as well. You have watched them grow
up over the last 12 years: Bryan, Jonathan, and Harrison. Obviously, we
are so proud of each of them. I will speak directly to them because
they, as with anybody growing up, faced the huge challenges of growing
up in public life, taking in stride the various swipes that the media
takes from time to time, but doing so with real dignity and strength.
The boys know that Tennessee is home. They have been able to take in
the rich texture that is afforded all of us as we raise children here
in this town. And they have grown from three young boys when we came
here to three young men.
I want to thank staff members, and we never do that enough, those
staff members who have been with me from the very beginning: Emily
Reynolds, Ramona Lessen, Bart VerHulst, Cornell Wedge, Mark Winslow,
and Carol Burroughs. I thank my series of chiefs of staff: Mark Tipps,
Lee Rawls, Howard Liebengood, Eric Ueland, Andrea Becker, Bart, and
Emily, and all those who have come in and out of these doors since that
very first day 12 years ago when, yes, I, like somebody every cycle,
was 100th in seniority. It is the staff that puts the needs of this
country before their own needs. And with a lot of hard work and a lot
of passion and a lot of hope, they have accomplished so much.
A few moments always stand out in my mind, and I will not recite all
of them, but a few do stand out in my mind, victories like the $15
billion in funding for global HIV/AIDS, which I have seen firsthand the
power in the hundreds of thousands and, indeed, I would say millions of
lives that have been saved by American leadership there; the
prescription drugs for seniors; confirming John Roberts and Sam Alito.
And through all of this time, we have borne witness to days that have
literally changed the face of this Nation and the face of this Capitol,
things like the Capitol shootings,
September 11, anthrax and ricin, and Katrina. But through all of
that, we kept it the best way we could, with hard work and a lot of
hope.
I thank my colleagues who placed their faith in me to serve as their
leader. As I said four Decembers ago, when you elected me, it was and
has been ever since, every day, a very humbling experience. On that day
4 years ago I quoted Proverbs: In his heart a man plans his course, but
the Lord determines his steps.
And what fulfilling steps have been afforded me as leader. I cannot
let today pass without expressing gratitude for the close friendships
of people who are here and some people who have passed through this
Chamber: Howard Baker, the great Republican leader from Tennessee whose
shoes as majority leader I have done my best to fill. He has counseled
me over the years both as a Senator and as leader. His sage advice I
have relied upon many times in those capacities.
You have to be very careful going around a room, but behind me,
people like Pete Domenici, who became a mentor to me on that very first
day in 1995; and people like John Warner, whom we saw in action just a
few minutes ago on the floor and, yes, on the Gates nomination; and
former Senators, people like Don Nickles who so wisely set the stage
for the Republican tax cuts of the last several years; my colleague and
confidante, Mitch McConnell, whose wisdom and service
[[Page S11430]]
has been indispensable to leading the Republican majority, who ascends
in party leadership, who will be sitting at this desk in a few weeks, a
temperament and skill with which no one is better prepared; my
Tennessee colleagues, Fred Thompson and now Lamar Alexander, two great
statesmen with whom I have had the honor to work side by side as we
have addressed the needs of our constituents.
I thank the two Democratic leaders, Tom Daschle and now Harry Reid.
As Harry and I have said publicly many times, everybody sees the public
contrast between one leader to the other, between Harry and me. But
what people don't see are the daily conversations, the private
conversations off the floor where views are mutually respected, where
burdens are shared, and where family is discussed. Karyn and I leave
this body with tremendous respect for Harry and for Landra, for their
contributions to this country.
To all my colleagues who have reached across the aisle and across
differences when you could, thank you.
Twelve years ago, it was people in Tennessee who took a big chance,
who took a great chance. They took a chance on a doctor who was little
known, who had never served in public office, obviously had never run
for public office. They began by opening their minds and then opening
their homes and then opening their lives and then opening their hearts.
And I am eternally grateful to them for giving me that trust and taking
that chance.
On this floor many times I have mentioned my parents and I mentioned
my dad. Dad used to say: It is a powerful thing to know where you are
going in life, but it is equally powerful to know where you have come
from.
To the good people of Tennessee, I thank you for never letting me
forget where I have come from. You never let me forget those promises
made on the trail over a decade ago, the promises that have been the
heart of everything that we have done. Yours are the voices that have
called out to me from Mountain City in east Tennessee to Memphis in the
west, the people out there who are working hard every day to raise a
family, to grow a business, to run a farm, to get ahead. As long as I
live, I will never forget those voices. Those voices are clear, those
voices of common sense that called out and counseled me time and time
again.
Two people who won't hear me thank them today are two who were at my
swearing in but who have since passed on: my parents Dorothy and Tommy
Frist. They have left a fascinating legacy that the five children--I am
the last of those five--have been the beneficiaries of, a legacy of
honesty, of civility, of fairness, of hard work, and of service. And we
all--at least I try to--struggle to capture what they did in passing
that legacy on to our children.
My own brothers and sisters, Mary, Bobby, Dottie, and Tommy, all in
their own way, with their children and grandchildren, have been
successful in living lives of service to others. Many friends are here
today, including Jean Ann and Barry Banker and Denise and Steve Smith.
It is that friendship, that team, that gives people, I believe, the
strength and foundation to carry out that mission of serving this great
country.
In the past few weeks, I have spent a lot of time reflecting about
the future of this institution. As I prepared to leave here and return
to my home, many people have asked, don't you ever regret the promise
that you made to serve just for 12 years, two terms? Did you regret it
when you became chair of the RNC or majority leader? If you knew then
what you know today, would you have made that promise 12 years ago? My
answer is yes, because I believe today, as I believed then, in the
ideal. It is, I guess, that ideal of a citizen legislator. It might
seem bittersweet today, but it is right.
I hope that in some way, as I leave here, that my service--people may
say it was effective or ineffective, and that is all very important--is
an example of someone who had never, ever run for public office, never
served before, and who had spent his lifetime--in fact, twice as much
time as I spent in the Senate--pursuing another profession, coming here
like so many people today and starting at 100th in seniority over in
the basement of the Dirksen and rising to majority leader over that 12-
year period; an example of a committed doctor who is able to find
purpose and fulfillment in serving others, as all of us do as Senators,
through elected office. I hope that will inspire others to seek office
and to do public service. It is my hope that those who come to serve
after me as a true citizen legislator will bring perspective and new
ideas in a small way, a serendipitous way, or maybe a large way, and
make this country a little better and contribute to this institution.
You have heard me talk about, and champion at times, term limits.
Most people don't like them. They were popular for a period of time. I
am a great believer in self-imposed term limits. Every morning you get
up, you say I have 3 more years, 2 more years, or 1 year, or a half
year, or 10 days, and you know that as every day goes by. If you don't
have an understanding that there can be an end, you tend to forget
that. Self-imposed term limits are the extreme exception here today,
not the practice of this city. I think as a consequence we are moving
toward a body that has too much of a 2-year vision, governing for that
next election, rather than a body with a 20-year vision governing for
the future.
As we consider the future of the institution, I urge that we ask
ourselves what it is our forefathers envisioned. Is today's reality
what they foresaw? I urge that we consider our work in this Chamber.
What is it all about? Is it about keeping the majority? Is it about red
States versus blue States? Is it about lobbing attacks across the aisle
or is it about war rooms whose purpose is not to contrast ideas but to
destroy or is it more? When the Constitutional Convention met in 1787,
delegates considered how best to structure this legislative branch of
new Government. They were determined not to repeat the mistakes made in
the Articles of Confederation, which had a single, unicameral
legislature. Speaking to the convention, Virginia's James Madison set
forth the reasons to have a Senate. His words:
In order to judge the form to be given to this institution,
it will be proper to take a view of the ends to be served by
it.
These were, first, to protect the people against their rulers and,
secondly, to protect the people against transient impressions into
which they themselves might be led.
I think we need to remember this vision of the Senate that the
Framers established--that the Senate is to protect people from their
rulers and as a check on the House and on the passions of the
electorate. Let us not allow these passions of the electorate to be
reflected as destructive partisanship on this floor.
Taking the oath of office, which many of our good colleagues will be
doing shortly, commits each Senator to respect and revere the Framers'
dream. To my successor, Bob Corker, and to all the Senators who will
follow me in service to this great Nation, I urge you to be bold, make
the most of your time here, and look at problems with fresh eyes and
the steely determination to give the American people a reason to
believe in you and to hope for a better tomorrow.
To serve in this grand institution has been a labor of love. To lead
here is a challenging responsibility that is set out before me and each
of us. It has been a profound honor to serve.
I will close with just one story. It happens in southern Sudan. As
many of you have heard me say, because it is such an important part of
my life, I go to Sudan just about every year--a thousand miles south of
Khartoum and 500 miles west of the Nile River. I started going there in
the mid to late nineties. I had been there operating back in the bush,
and I was ready to come home. Actually, it was in January. The State of
the Union was a few days off. We finished operating in a hut. I
operated by flashlight late at night. Somebody in a little hut said,
``I want to see the American doctor.'' Well, I didn't want to go. I
wanted to get back home. I wanted to get on the plane and come back
home, but I went to see him. I was tired. I walked over and pulled the
curtain aside--the rug that was used as a curtain--and in the back
there was somebody smiling. You could see the bandages on his hands and
legs, and I went over; and through a translator I said, ``I am the
American doctor.'' He said, ``Thank you to the American doctor.'' As a
physician, I am accustomed to that because when you
[[Page S11431]]
operate on somebody, they say thank you. So I said, ``you're welcome,''
and I got ready to leave. He was frustrated and he said, ``Come back.''
He said. ``Thank you for being the American doctor.'' I still didn't
quite get it. He picked up his arm and said, ``I lost my arm fighting
in this civil war. I lost my leg 8 days ago. It was about 2 years ago
that I lost my wife and my 2 children. Thank you for being the American
doctor.''
And then I started to get it. He was saying thank you for being the
American doctor. Then he said, basically, that: It is you who are a
representative of America, and for democracy and liberty and freedom I
sacrificed my wife and my children and my arm and my body. Thank you
for what you represent.
Then all of a sudden, it began to hit me. To me, that image cuts
through just about everything that we do. It is about preserving as
best we can the great hope that we represent here in America, which is
embodied in this institution, the freedom, the responsibility, the
opportunity, the compassion, and the basic decency that is at the heart
of who we are as Americans. Beyond Democrat or Republican--which came
out of the campaign--now is the time to again remind ourselves and
state again and again that beyond being Democrats and Republicans, we
are Americans. Together, we are one people. It is our responsibility to
uphold the dream and protect that hope for every American and indeed
the people around the world who seek that freedom.
I opened by saying that our time here is temporary; we are just
passing through. Now is the time to close. Your patience has been
generous. As I have spent a lifetime learning, to everything there is a
season. We say that and hear it and tend to repeat it when there are
changes. But to everything there is a season, and my season here draws
to a close. Tomorrow is the time for birth and rebirth. Tomorrow is a
day and a time for new rhythms.
My dad did a great thing that I shared with some of you. Each of us
should do this for our children or for the people we care about. He
knew he was going to die in the next couple of years. We asked him to
write down his thoughts, advice, and counsel for the next generation--
not just his kids and theirs, but for the great-great-grandkids that he
would never see, a simple 4 to 5 pages. He ended that letter to his
great-grandchildren with the following words:
The world is always changing, and that's a good thing. It's
how you carry yourself in the world that doesn't change--
morality, integrity, warmth, and kindness are the same things
in 1910, when I was born, or in 2010, or later, when you will
be reading this. And that's a good thing, too. Love,
Granddaddy.
So under the dome, it is time for fresh faces and fresh resolve.
Change is good. Change is constructive. The Senate changes, the people
who serve here change; but what doesn't change is that every one of us
who serves believes deeply in the genius of the American democracy.
It is with the deepest appreciation that Karyn and I thank you all
for 12 wonderful years. There are no words to describe the honor it has
been.
I yield the floor.
(Applause, Senators rising.)
Mr. REID. Mr. President, parting really is sweet sorrow. Mr.
President, thank you very much for being here today honoring not only
Senator Frist, our majority leader, but the entire Senate.
On the surface, some may ask how the Senate and the operating room
are the same. What do they have in common? Senator Frist has shown us
that helping people is what he did as a doctor and what he has done as
a Senator. Serving others is a trait as we have observed by knowing
this good man is that he learned from his family. His father was also a
doctor. As a young man he was obviously academically very talented. He
wanted to follow in his father's footsteps. He went to Princeton
University, which shows that he is someone who is talented academically
and socially. He graduated from that great American learning
institution and decided he was going to go to Harvard, which speaks
well, again, of his intellect and, of course, his ability to get along
with people. His surgical training came at Massachusetts General
Hospital and Southhampton General Hospital in England.
Senator Frist was a pioneer, but he learned his transplant surgery
from the pioneer. I have heard Bill Frist talk about Norman Shumway on
many occasions--the first doctor to perform a successful heart
transplant in the U.S. Senator Frist--then Dr. Frist--started
Vanderbilt University Medical Center's Heart and Lung Transplant
Center. I don't know if anybody knows--I am sure someone knows--how
many heart and lung transplants Senator Frist has done, but most say it
was nearly 200. Think about that. Some of these operations took many
hours, and some of them took days.
I heard Dr. Frist talk about those first transplants, where he
actually went and got the organs and personally brought them back to
the operating room.
Things have changed since then. Pioneer, doctor, Senator Frist has
and will write a lot about his success as a surgeon and as a Senator.
And not only will he talk with his family and his friends about this,
things will be written about his service as a doctor and as a Senator.
When we talk about these nearly 200 transplants, we are talking about
200 human beings whose lives have been saved by virtue of his talent.
Senator Frist helped hundreds of people continue their lives. Here, as
a public servant, a Senator, he has affected the lives of millions of
people.
I have had the good fortune of serving with Senator Frist during his
12 years in the Senate. I knew him before I became the Democratic
leader and, as all of you know, I spend a lot of time on the floor and
I worked with him very closely.
Over the years, we have had our ups and downs. It has been tough.
These jobs, I can tell my colleagues up close, are not real easy. We
have had problems over budgets, over committee structure, disagreements
about schedules--oh, yes, about Senate rules. I have never once
doubted--never once doubted--that what Senator Frist was doing he was
doing because he believed in his heart it was the right thing. That is
why I, Harry Reid, at his home on a very personal level, told Senator
Frist he should run for reelection. I don't believe in term limits. I
truly believed then, as I do now, that he should have run for
reelection. I told his good wife Karyn the same thing in her home, in
their home.
I have come to learn a number of things about Bill Frist. He loves
medicine. He has done his work in the Senate. But the thing that is
first and paramount in his mind and his heart every minute of the day
is Karyn and his three boys.
All of you out here have seen our fights publicly, and we have had
them, but they have been fair. I can remember only once has Senator
Frist ever raised his voice at me, and it was right from here because,
even though I didn't mean to, he thought I had said something that
reflected upon his family, and I apologized to him. This man loves his
family and is an example of how people should treat their family.
Karyn is a wonderful woman. She has treated my wife--my wife is a
very shy person. She has always been very shy. Karyn has taken good
care of her, and I will always, Karyn, appreciate that.
In the years that go on, I, frankly, will never think about or, if I
try, not remember any of the differences we had on the Senate floor,
but I will always remember the friendship I have developed with the
good man from Tennessee, a citizen legislator.
Senator Frist, Karyn, I wish you the very best. You are a good man. I
love and appreciate everything you have done for the country and for
me.
(Applause.)
The VICE PRESIDENT. The majority whip is recognized.
Mr. McCONNELL. Mr. President, I, on behalf of all the Members on this
side of the aisle--and Senator Reid acknowledged the same as well--am
grateful for your presence here today. Being here today to help honor
our outgoing majority leader, I know, means a lot to him. It means a
lot to all the rest of us.
Rare is the person who rises to the top of one profession, not to
mention two. We are honoring today a man who has done that--he has
risen to the very top of not one but two extraordinarily difficult
professions. And I am absolutely certain, as all of his colleagues are,
that he will excel in whatever challenge he takes on next.
[[Page S11432]]
Bill Frist embodies what our Founding Fathers meant when they spoke
of ``citizen legislators.'' By his early forties, he had already risen
to prominence as a renowned heart and lung surgeon. But Bill felt a
call to public service. After achieving enormous success in that field,
he came to us in the Senate and rose to the top here as well. He had
not sought the leader's office, but in some ways it could be argued
that it sought him and, once again, he was top in his field.
After 4 years, Bill has been an effective and courageous leader. I
have been here for a pretty long time now, Mr. President, and I can
honestly say that the last 4 years have been some of the most
productive years in the Senate that I have seen.
Under Bill Frist's leadership, we have made the lives of people
across America better and safer. More opportunity lies ahead for
today's children than ever before. Most of all, Bill has never relented
in leading this Senate to fight the war on terror. America is more
secure thanks to his tenacity and thanks to his talents.
Bill is leaving us, as we all know, sticking to his promise to the
voters of Tennessee to serve only two terms. Legend holds that
Cincinnatus, the Roman farmer, became ruler of Rome at the behest of
his fellow citizens. But after leading them to victory against
invaders, he gave up the mantle of power and returned to his farm.
Whether Bill returns to medicine or continues to serve the public in
some other way, we can be sure of this: He will continue to be one of
America's great leaders. And if he does return to public office, it
will be because he was asked by his fellow citizens to serve and to
lead.
Words such as ``sacrifice,'' ``duty,'' and ``service'' mean something
to Bill Frist. This Senate and this country are the better for it.
It has been a joy to know Bill's lovely family--his wife, Karyn, and
his three sons, Harrison, Jonathan, and Bryan. They are all proud of
their father and husband.
I am going to miss you, Bill. It has been a great honor working with
you every day over the last 4 years, and it will be an honor to take
the baton from Bill to lead Senate Republicans during the 110th
Congress.
Just as Kentucky and Tennessee share a border 320 miles long, Bill
and I share a bond as Senators, party leaders, and, yes, as friends. I
can see that all of our colleagues on both sides of the aisle feel the
same way I do. It is sad to see you leave. You have done a magnificent
job. People come and go in the Senate over the years and, candidly, I
guess some of them didn't make a whole lot of difference. But you did,
and you will be remembered with great pride by all of us. Thank you for
your service.
(Applause.)
The PRESIDING OFFICER (Mr. Coleman). The Democratic whip.
Mr. DURBIN. Mr. President, I join in this chorus of salutations and
praise for the retiring majority leader. I listened carefully to
Senator Frist's recollection of his public service, and I noted the
first item on his agenda was the $15 billion in the fight against
global AIDS. It is an issue on which we joined together many times, an
issue where President Bush showed extraordinary leadership, and there
was extraordinary bipartisan support for what he was trying to achieve.
As one reflects on his life and his background, it was no surprise
that led the list. Senator Frist dedicated his time before the Senate
to the healing arts, and I think he brought some of that same
dedication to this role in the Senate, trying to use his post as the
Senator from Tennessee and as a leader in the Senate to heal the world
and our Nation. I thank you for all your efforts in that regard.
I know when he came to this job, it was thrust upon him rather
quickly. I know he had his critics, and there might even have been a
few on this side of the aisle from time to time, but, by and large, I
think his leadership has been symbolized by a lack of cunning, a lack
of sharp elbows and an effort to try and patch up our differences and
get things done. Once again, you were the healer when you had the
chance to do it.
I have traveled to Africa, as he has, probably not as often. I have
seen some of those dusty villages where there is no one to be seen for
miles around. But I cannot imagine your taking your surgical skills to
those villages and those huts and operating under a flashlight, hour
after hour, day after day, week after week. That defines Bill Frist, in
my mind--a person who may not have been recognized by anyone on the
road to that village, did some good, and left a legacy that will be
remembered.
To you, to Karyn, to your family, let me add my voice in saying you
left a great legacy in the Senate, and I wish you all the very best.
(Applause.)
The PRESIDING OFFICER. The Senator from Tennessee.
Mr. ALEXANDER. Mr. President, former Senator Lyndon Johnson used to
say about himself that having Lyndon Johnson as majority leader was
good for the United States of America and it hasn't hurt Texas one bit.
When I think of our country and Bill Frist, I think of lower tax
rates, I think of two Supreme Court Justices, I think of a record
number of judges who would interpret the law, rather than make it up as
they go along. I think of the personal imprint of Senator Frist on the
prescription drug Medicare benefit millions of Americans need and are
enjoying, and I think of the $15 billion generous gesture of this
country toward Africa to combat HIV/AIDS, which would not have happened
were it not for Bill Frist.
When I think of Bill Frist and Tennessee, I think of our new TVA
board to keep our rates low and reliable. I think of our ability to
deduct our sales tax from Federal income tax and dozens and dozens of
other things that have been good for Tennessee.
When I think of Bill Frist, I think of civility, of decency, a good
smile, hard work, and an ego that is surprisingly under control for a
Senator in the midst of all of this and an example of which his parents
would be proud. So I think we can say today, and Lyndon Johnson
wouldn't mind, that having Bill Frist as majority leader of the U.S.
Senate has been good for our country and it hasn't hurt Tennessee one
bit.
The PRESIDING OFFICER. The Senator from Massachusetts is recognized.
Mr. KENNEDY. Mr. President, I join my friends and colleagues in
paying tribute to a friend and a distinguished colleague. When Bill
Frist arrived here, there were at least some of us with some qualms on
this side of the aisle because he ran successfully against one of our
dear friends, Jim Sasser. So, initially, there was a natural reluctance
among some of us about this doctor who had defeated a great friend and
a great Senator.
But early on, it was clear that Bill was special. As someone who had
been trained in the medicine, in my own State of Massachusetts no less,
he brought a new and fresh perspective to our national debates.
He was obviously a person of impressive skill, and it is no surprise
that he rose so quickly to become majority leader. The roles of
Senators and physicians are profoundly different in many ways, but at
their core their missions are identical to help others to the maximum
extent of our ability. And that is what Bill Frist has done from the
day he set foot in this chamber.
He was one of the first to understand the very real threat of
bioterrorism to our Nation, and that was well before 9/11 or the
anthrax attacks. Senator Frist knew first-hand that our public health
infrastructure was incapable of meeting the threat of a massive natural
epidemic, let alone a deliberate biological attack. It was a privilege
to work with him on the first bio-terrorism legislation, which because
of his leadership we were able to pass before 9/11.
He has also been a pioneer in the effort to bring modern information
technology into all aspects of health care, and to end the enormous
human and financial costs caused by medical errors and by the needless
administration of health care with outdated paper records. He has also
helped shine a bright line on the serious problem of health disparities
in our country.
He has inspired each of us with his commitment to addressing the
horrific tragedy still unfolding in the world, especially in Africa,
because of AIDS. He has dedicated himself to this issue for years,
giving of himself personally, and urging Congress to act more
expeditiously. He made time to continue this
[[Page S11433]]
missions of mercy, even after he became majority leader, and I was
deeply touched by it every time.
I have had the good opportunity to meet his family, and I know, as
others have said, where his values come from and how committed he is to
them. I hope he'll be able to enjoy more time with them now without the
burden of running the Senate.
We wish Bill Frist the best as he prepares to leave the Senate. We
know he will have great success, and we thank him for his service to
our country. We will miss the majority leader, but we know he will
continue to use his immense talent to make a very real difference for
all humanity in the years ahead, and continue to make us proud to call
him our friend.
The PRESIDING OFFICER. The Senator from New Mexico is recognized.
Mr. DOMENICI. Mr. President, I wanted to say a few words before the
leader left. I even hate to call him leader or majority leader. He has
become a great friend. I don't know how to explain it, but I didn't
really think coming to the Senate that I would have a chance to meet
somebody like our good departing leader. I have met all kinds of people
here. Henry Bellman once said: If you sit down with all 100 of them, no
matter what you have said about criticizing them, there are no better
100 men put together in America than the 100 Senators who serve. I
believe that is true. I am wondering now about whether the Senator
wouldn't rival military leadership.
But the point is, I didn't think Bill--I know we can't do that in the
Senate, use first names--but I didn't think I would ever meet in the
Budget Committee of the U.S. Senate--sitting in the very last seat
available was this man whose name is so simple, but I had so much
trouble with it. Do you remember? I didn't say ``Frist,'' I kept saying
``First.'' I don't know why, but I did that for a long time, and then
it became sort of a--people would come up and punch me so I would say
it right. But whether it is ``Frist'' or ``First,'' I guess they mean
about the same thing to me. You are truly first.
What we have gone through personally will not be reflected in the
Record. People know I have had a few years of illness. It is mostly
gone now. But I found out he was a superb doctor, and eventually I
found out there weren't too many better anywhere. That made it easy
because I had a ready-made doctor and he was the best. And we would
meet in his office, and people would think it was always business, but
they had no idea that it was half business, a little bit family--we got
to know each other's families, and what a terrific and exciting thing
that was for me--and I got to know about his excellence as a doctor.
It will be a different Senate, there is no question.
You have been dealt some cards that are not right. The years you were
here, the things that were accomplished were not quite presented to the
people as accomplishments or as big accomplishments, as they are. But
if there is anybody interested in searching the Record during his term
and during his leadership period to see what he accomplished, I believe
you will have to end up saying there was nobody during his time here
who accomplished more for his State and for the country. I believe an
in-depth search of what he has done may even rival the best, even
though he does not know how to legislate, and there is no question
about that, and he does not know how to appropriate, and there is no
question about that. He might not even know how to bring an
appropriations bill up, and there might be no doubt about that. He may
doubt it, but this Senator doesn't, and I am his best friend, but I
have great doubts whether he knows how to get an appropriations bill up
and passed.
But I still believe the business of the Senate is not done in those
very overt ways that people think. It is done as you sit down for long
hours on a conference report and come out with a health bill that all
of a sudden is better than anything we have had before. When you find
out who did it, it might not have been named for the Senator or for the
chairman of this or that, but you will find out that for many hours,
many trips were taken to his office, and many times, he said: Wait and
we will do it in the morning, and I will tell you how to do it. And
that happened.
I could go on for much longer, but I really wanted him to know that I
just waited for my time. Being the fifth or sixth eldest here in
seniority, I waited for my time here, and I didn't want to wait until
tomorrow or the next day in fear that I would not find time or that the
Senate would not accommodate. So I thought I would, as usual, be late
for a next appointment, but I have a good excuse for being late for
this next one.
I had to come here and say goodbye in a very interesting way,
although it is not a goodbye. But I do think it is true that this will
be a very major change in our friendship, in the way we react to each
other, and the time we get to spend with each other. So it is an
occasion, this leaving of the Senate, because you won't come back very
often. Even though you say you will, you won't, and we won't get to see
you. I really believe we will remember you, and probably we will call
you more times than you will call us because I think we may just from
time to time figure out more times than you will that we need some
advice, and it will probably run in your direction, not in ours, in the
ensuing years.
Good luck in whatever you do. It is not going to be this little
return to being a country doctor, if that is what you are saying. You
can't sell me on that. You are not going to be a little country doctor;
you are not even going to be a regular doctor. You are going to do
something much bigger than that. It is just waiting. Somebody is going
to place it in front of you, and then you will do it and it will be
something big and exciting for America and for our people, probably
more exciting than you did here, so that will be a third one--one, the
heart transplants and all that, one here with us, and then you will
have a third one. In the meantime, you can do a lot of duck hunting, no
problem with that. You can probably go with me, if you want. But if you
shoot too well, I won't bring you anymore because it is embarrassing.
It has to be sort of a modest hunt, not so superb that I am
embarrassed. So we will have to work that out some way. And your son--
he can't come anymore because he shoots too well. It is truly not the
right thing to do. He should not be hunting with an old man like me. No
way. But if it happens, we will accommodate it some way.
Having said all that I should and much more, I will say goodbye and
thank you.
Mr. FRIST. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. BOND. Mr. President, I ask unanimous consent that the order for
the quorum call be dispensed with.
The PRESIDING OFFICER (Mr. Cornyn). Without objection, it is so
ordered.
Jim Talent
Mr. BOND. Mr. President, I rise on the floor to pay tribute to my
very good friend and colleague, Senator Jim Talent, who will be leaving
the Senate next month.
I have known Jim for over 20 years, since he was minority leader in
the Missouri House of Representatives. Throughout all these years, when
he was in the State legislature and in the House as chairman of the
Small Business Committee when I was chairman of the Senate Small
Business Committee, I found Jim to be unfailingly a man of honesty,
integrity, and hard work. He has been a wonderful friend and colleague.
I am going to miss him very much, and many people in Missouri are.
We all know that Washington can change a person, but it hasn't
changed Jim. Jim still has the same commonsense Missouri values he
brought with him to Washington. He still has the same calm, polite
demeanor. He still has strong convictions and a work ethic. As I said
to our folks back home in Missouri, in an arena of show horses he has
been a work horse.
I was with him on the night he got the news that he lost the
campaign. He was a man of unfailingly good humor and courage. And
still, he thanked his Lord, his friends, and graciously accepted his
fate.
I have a feeling and hope that public service will see much more of
Jim Talent somewhere, sometime. And whatever he decides to do in the
public or in the private sector, the qualities he has
[[Page S11434]]
demonstrated to so many of us in the Senate will be one he will carry
with him.
He served in the Senate for only 4 years, but when you look at his
record of legislative achievements, he has had so many positive impacts
on people's lives. It is hard to believe he could cram all of that into
4 years.
He has been a leader on national security, energy, and criminal
justice.
As a member of the Senate Armed Services Committee, Jim worked to
extend production of the C-17 line, allowing 30,000 workers across the
country to keep their jobs, and more importantly to give our military
strategic lift capability which they need to move troops and equipment
to very difficult to reach places.
Jim also cares about our troops in battle. He sponsored legislation
to end predatory lending to active servicemembers and their families.
The new law just took effect 6 weeks ago. Some of our soldiers were
paying almost 400 percent interest on money loaned to them. Thanks to
Jim Talent, the rates are now capped at 36 percent. I trust that
applies to the Marines as well.
Last year, Jim worked very hard to include a renewable fuel provision
in the Energy bill. On a bipartisan basis, under his leadership, the
United States will produce up to 7\1/2\ billion gallons of renewable
fuels with ethanol and biodiesel. That will be implemented by 2012.
Jim's work in this area will only become more important as we see in
the future America continuing to face high energy costs and our attempt
to reduce our dependence on foreign oil.
Another accomplishment Jim will be known for is something which is
extremely important in our State of Missouri, and this work--again on a
bipartisan basis with the Senator from California--was to fight meth.
Meth is a drug that has been destroying lives and communities across
our State for many years and now even across the country.
The Combat Meth Act has helped stop the supply of meth ingredients to
dealers through the ban on over-the-counter sales. You see a
significant reduction in meth lab busts. It shows that we are finally
beginning to make progress against this drug.
Obviously, I have to mention his other bipartisan successes, such as
the sickle cell disease bill and the Emmett Till bill.
On a narrow focus, Jim and I have worked together on many
transportation and economic development projects to serve our State of
Missouri, including the Liberty Memorial in Kansas City, the Page
Avenue Extension in St. Charles, and countless others throughout the
State.
I should also mention that my friend Jim Talent has put forward some
terrific proposals that he has been working on that have been enacted.
His effort to allow small business employers to pool together to form
association health plans comes to mind, and those of us who have been
working to change the law so that small business employees and their
families will have access to the same kind of insurance benefits that
employees of major corporations have will not give up the fight. We are
going to continue with his great leadership in mind.
I am sure the next Congress will follow up. This idea should be
central to any discussion of expanding health care coverage to the
uninsured.
Jim, as we prepare to say goodbye to you now from this floor, thank
you for your years of devoted service to our State, to our Nation. With
heartfelt gratitude, on behalf of my wife Linda and I, we wish you,
Brenda, and your children the very best in future endeavors. And I know
for a fact that there will be great successes ahead.
I yield the floor.
Appropriate Level of Military Funding
Mr. TALENT. Mr. President, my great friend and colleague from
Missouri has an Intelligence Committee meeting to go to. So he went
ahead and did his kind tribute before I give my speech, and those who
are not aware of that may have thought that maybe they would be able to
get in short tributes and avoid the long farewell speech. That is not
true.
I will devote my time to a substantive and very important subject--
the appropriate level of funding for America's military. It is an issue
that I have worked on and fought for since I went to the House of
Representatives in 1993.
I am grateful for my friend's remarks, and I want to say that I have
always enjoyed serving in legislatures, in part because of the
collegial nature of the service. When you are done, yes--it is the
legislation that you worked on that you want people to remember, but
what you remember are the friendships and the associations and the
bonds that you have made. And, fortunately, those do not end with your
service. I look forward to continuing to visit with my friends in the
Senate for years to come. I hope to be able to work with them in other
venues on issues of importance to America. Nothing is more important
for America than her security.
Mr. President, America has the most capable military in the world by
a large margin; in fact we have the best military that has ever served
any nation at any time in human history. We should be proud of that; we
should especially be proud of the men and women who make America's
military what it is. But it would be wrong for us to believe that
because our military is the best in the world or even the best ever,
that it is as capable as it needs to be. True, America is many times
stronger than other nations, but its responsibilities are many times
greater as well. If Denmark's military is inadequate, it doesn't matter
that much, even to Denmark; if America's military is inadequate, it
matters tremendously, first to America, but also to the hopes and
aspirations of people throughout the world.
We must understand the importance of this issue very clearly, without
the distortions of ideology, politics, expediency, or wishful thinking.
Like it or not, the progress of the international order towards peace
and democracy depends on the reality and perception of American power.
Like it or not, America is the first defender of freedom in the world
and therefore always a prime target for those who hate freedom. And
like it or not, while there are many tools in the basket of western
diplomacy, the underpinning of them all is an American military
establishment which the world knows is capable of swiftly, effectively
and at minimal cost defeating every substantial threat to our security
and to our freedom.
Judged by this standard--the only appropriate standard--the situation
is very grave. I have substantial doubt--as good as the men and women
are--whether our current military establishment is strong enough.
Because of decisions over the last 15 years driven more by budgetary
than military considerations, our Army and Navy may well be too small,
and much of the equipment in all the services is too old and
increasingly unreliable.
Whatever the current status of the military may be, there can be no
doubt that without a substantial increase in procurement spending
beginning now and sustained over the next 5 to 10 years--an increase, I
suggest to the Senate today, that must be measured not in billions but
in tens of billions of dollars above current estimates every year--our
military will be set back for a generation. We will not be able to
modernize our forces to the degree necessary to preserve our security
with the necessary margin of safety.
I said that our current military is too small and inadequately
equipped to execute the national military strategy. I will not go into
detail on this point because my main focus is on the future, but a
brief explanation is warranted. The world is, on balance, at least as
dangerous today as it was at the end of the Cold War. And we may thank
God we are no longer in danger of a massive nuclear attack from the
former Soviet Union, nor is a major land war in Europe likely.
Against this, however, we are engaged in a global war on terror that
will continue for years to come. The end of the Cold War led to the
emergence of dangerous regional conflicts, such as the conflicts in the
Balkans. We are in greater danger today of a rogue missile attack than
ever been before, and China is emerging as a peer competitor much
faster than anyone believed.
These conditions either did not exist, or like the conflicts in the
former Yugoslavia, were suppressed, during the Cold War. As a result,
the operational tempo of our conventional forces--and that means the
rate, intensity and duration of their deployment--was far higher
beginning in the
[[Page S11435]]
mid-1990s, even before September 11, than it had ever been during the
Cold War. Yet at the beginning of the 1990s, our forces were 30 to 40
percent bigger than today. For example, the active-duty Army was cut
from 18 divisions at the time of Desert Storm to only 10 divisions by
1994. Don't we wish that we had those additional divisions today to
relieve the pressure in Iraq. The Navy has gone from 576 ships in the
late 1980s to 278 ships today.
At the same time, procurement budgets have been cut substantially,
far greater than the cuts in force structure warranted. The contrast in
the average annual procurement of major equipment from two periods--
1975 to 1990 and from 1991 to 2000--is startling. For example, we
purchased an average of 78 scout and attack helicopters each year from
1975 to 1990, and only 7 each year from 1991 to 2000. We purchased an
average of 238 Air Force fighters each year from 1975 to 1990, and an
average of only 28 each year from 1991 to 2000. We purchased five
tanker aircraft each year from 1975 to 1990, an average of only one per
year from 1991 to 2000.
The implications for these dramatic reductions are profound. Older
platforms--that is what the military calls ships, planes, and
vehicles--are rather tired and not replaced, which means that force
structure is reduced. Military capabilities are reduced. If platforms
are not replaced, the average age of the fleet increases, readiness
levels drop, and the cost of maintaining the smaller, older inventory
climbs rapidly because maintenance costs increase.
For these reasons, I suggest that the current force today is too
small and its equipment too old, relative to the requirements of our
national military strategy. That strategy calls for a military capable
of defending the homeland, sustaining four peacekeeping engagements,
and fighting two large-scale regional conflicts, at least, at
approximately the same time. We are supposed to be able to do all that
at once. I believe the requirements of our military are actually
greater than this, but in any event, we cannot execute even these
commitments, and we certainly will not be able to do so in the future,
within an acceptable level of risk, unless at least the Army is made
bigger and unless all three services have the money to robustly
recapitalize their major platforms with the most modern equipment.
For years, the various services, in response to pressure from
political authorities to reduce the budget below what they needed, have
delayed or cancelled new programs. They have been reducing the number
of new ships or planes they say they need, kicking crucial decisions
down the budgetary road, robbing Peter to pay Paul, and otherwise
trying to avoid confronting the approaching funding crisis.
That crisis is upon us now. We are entering the crucial phase of
recapitalization. Beginning with the next budget and intensifying over
the next 5 to 10 years, the services are scheduled to bring online the
new platforms that will anchor American security for the next
generation. No one can say these programs are unneeded. The Navy must
buy new destroyers, must ramp up procurement of Virginia-class
submarines, must finalize the design and buy large numbers of Littoral
Combat Ships and design and build a new CG-X cruiser.
The Air Force must buy large numbers of the F-22. That is our new
air-superiority fighter. We must maintain the ability to have complete
air superiority over any combat theater. The Air Force must buy large
numbers of Joint Strike Fighters or equivalent aircraft. In addition,
the Air Force must buy out its airlift requirement. That is how we
transport personnel, equipment and supplies from one place to another
in the world. It must build a new generation of tankers, must design
and build a long-range strike bomber to replace the B-52. Our B-52
inventory is 45 years old.
The Army must rebuild, modernize or replace almost its entire capital
stock of ground combat and support vehicles including many of its
tanks.
The current procurement budget for all three services is $80.9
billion. Simple budgetary mathematics tells us that the services cannot
possibly meet their crucial requirements without an average budget over
the next 5 to 10 years that I estimate is at least 30 billion dollars
higher than what we are now spending.
Perhaps I have gone into more detail than the Senate is willing to
indulge me in already, but I want to look in some depth at the
situation of the Navy. Here I speak from what I know because I have
been the chairman of the Subcommittee on Seapower for the last 4 years.
Currently, there are 278 ships in the U.S. Navy. The Navy shipbuilding
plan calls for 326 ships by the year 2020, eventually settling down to
an average of 313 ships. The plan actually calls for fewer aircraft
carriers, a substantial drop in attack submarines, and fewer major
surface combatants, but it attempts to make up for these reductions
with modern destroyers, more capable submarines and what it calls pre-
positioning ships that allow us to establish sea bases, from which to
project forces ashore, as well as a whole new class of smaller multi-
mission modular vessels called Littoral Combat Ships. There is no
margin whatever for error in this plan. It is, at best, the minimum
necessary for our security.
The Chief of Naval Operations--that is the admiral who leads the
Navy--has estimated the plan will require a shipbuilding budget of
$13.3 billion for fiscal year 2008, the upcoming budget year. That is
$5 billion more than what was spent this year on ship building. His
plan calls for that figure to escalate to $17.5 billion by 2012. I
believe these figures are too conservative. It is a good-faith effort
to calculate what we need but too conservative. I think the plan will
require billions more each year to execute. Both the Congressional
Budget Office and the Congressional Research Service agree. In any
event, I say on my oath as a Senator, that it will be utterly
impossible, at current levels of defense spending, for the Navy to
reach and sustain the $13.3 billion figure, to say nothing of the even
higher sums required in the outyears of the 5-year defense plan and
beyond.
Beginning no later than 2009, there will be a growing shortfall in
the ship-building accounts, in addition to an annual shortfall of $1
billion to $2 billion in Navy aviation procurement. I expect the total
deficiency to be no less than $45 billion over the fiscal year 2008 to
fiscal year 2016 period; and remember, this assumes that the 313-ship
Navy is sufficient to protect American security, an optimistic
assumption.
Lest the Senate get lost in all the figures, let me sum it up this
way. The Navy, responding to budgetary pressure, has formulated a plan
for a 313-ship Navy in the future which, frankly, may be inadequate;
the Navy estimates a figure for funding the plan which independent
authorities, using long-term historical cost data, believe is far too
low. And yet without substantial increases in the Navy's procurement
budget, it is a dead certainty that even that figure cannot be
sustained.
As a practical matter, the expected shortfall means the sacrifice of
two to three attack subs and two to three surface combatants, a
reduction in purchases of the Littoral Combat Ships, and delays to the
Sea Basing Program and the new CG-X Cruiser Program, which is necessary
for missile defense.
The short of it is that the Navy needs at least an $8 billion
increase per year in procurement above current estimates. The Marines
need about $3 billion more. It is not necessary to go into the same
level of detail with regard to the budgetary picture for the other
services. The pain has been spread fairly evenly across the service, so
they are in roughly in the same situation. That means a procurement
shortfall over the next 10 years of at least $30 billion per year
adjusted for inflation. Most independent experts believe the number is
far higher.
For example, the CBO estimates that the overall defense budget
shortfall will be no less than $52 billion per year. We should add to
this the fact that the active-duty Army is clearly too small, as we
have learned in Iraq. Even in an age of transformation and nonlinear
battlefields, there are still times when America needs to put large
numbers of boots on the ground, particularly in the post-September 11
period. The United States needs the ability to carry on sustained,
large-scale peacekeeping or low-intensity combat operations, without
having to send the same units three or four times to a combat theater
over the duration of a mission. A nation of our size and strength
should not have to use essentially its whole active-duty Army,
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much of its Marine Corps, and many of its Reserves to sustain 130,000
troops over time in a combat view.
In 1992--which was right after Desert Storm--the Defense Department
stated a requirement of 12 Active-Duty Army divisions. That was before
the increases in operational tempo of the 1990s and before the global
war on terror. The Army should surely be at least 12 divisions today.
It costs approximately $2 billion to stand up and sustain an addition
to the Army or Marine Corps of division strength so we need to invest
$4 billion per year in increased force structure for the Army, in
addition to the $30 billion more in new procurement funding.
So to sustain our military over the next generation at the
appropriate level, we need to increase procurement spending and
spending on the size of the Army by about $34 billion per year. And
that is above current baseline estimates. It would have to be sustained
over the life of the current defense plan and beyond.
I want to emphasize that this is, of necessity, a ballpark figure. It
is always difficult to predict precisely the cost of new programs--some
of which are in the design phase, particularly given the uncertainties
associated with developing technologies. We will be acquiring this
equipment over the next 10 to 20 years and needs in technology are
going to change. We must confront the fact that whatever the necessary
amount turns out precisely to be, the procurement budgets we are
projecting today are fundamentally inadequate. We have to ramp up
spending. We must begin now. And we have to accept the fact that it
will not be cheap.
I, also, want to make clear that this additional $34 billion must
come from an increased overall defense budget. There may be some who
say that it is possible to cannibalize the rest of the defense budget
to produce all or most of this additional procurement funding. That is
a dangerous fantasy. The money cannot come from the supplemental
appropriations bills. Those are necessary to pay the day-to-day costs
of the war and may not have been adequate to do that. The money cannot
come from reducing the readiness budget because that budget is
overstressed already. It cannot come from reducing the number of
service personnel because the military is already too small. It can't
come from reducing salary and benefits. We have to retain the best
people. Besides, Congress is far more likely, and properly in my view,
to increase personnel benefits rather than reduce them. Take a look at
the last 7 years. Total spending on defense health care, for example,
increased from $17.5 billion in fiscal year 2000 to $37 billion in
fiscal year 2006--an increase of more than 100 percent over the last 7
years, appropriately so.
The men and women of America's military deserve good salaries and
benefits, and so do those who are retired. The savings from base
closing is not going to supply the additional funds. Those are highly
speculative. They will not occur, if at all, for many years, and they
are unlikely to be more than a billion dollars per year.
Some say we can save money by reducing congressional earmarks or
additions to the defense budget, and within limits that is true. But
the total of such earmarks is no more than $3 billion to $4 billion per
year. Realistically, Congress is not going to give up all of them, and
at least some number of them are clearly justified because they simply
restore to the budget items that our service chiefs desperately wanted
and omitted only because of budgetary pressure.
Still others will say we can get the necessary additional funding by
lowering the cost of new programs through procurement reform. I am all
for procurement reform. I have been for it ever since Secretary Bill
Perry, who was a great Secretary of Defense, proposed it over 10 years
ago. We have had several waves of procurement reform since then.
Several Defense Secretaries have all championed its virtues. We
continue to hold oversight hearings to pressure the defense industry to
lower costs. We keep trying to catch people in the Department who might
be violating procurement regulations. I have chaired some of those
hearings.
Meanwhile, the cost of new programs keeps going up. I suggest the
reasons have less to do with deficiencies in the procurement system,
bad as it is, than with the stress on the industrial base and on the
military caused by the budgets that are consistently too low and
unstable.
One of the arguments supporting reductions in force in the past has
been that transformational technology and tactics can empower the
military to do more with less. The idea is to make each servicemember,
each plane, ship, and vehicle less vulnerable so we lose fewer of them,
and more lethal so we need fewer of them. Within limits, that is
sometimes true. But the best technology costs money, and changing
technology, tactics, and doctrine makes it more difficult to fix stable
requirements. Program instability costs money, too.
Here is an example. The Navy originally planned to procure 32 DD(X)
next-generation destroyers. The ship has a truly advanced design. It is
a marvel of transformational technology. But its unique capabilities
have driven the per ship cost to about $3 billion. As a result, the
Navy plans to procure only seven new destroyers. The problem is that
the complexity of the ship's design, the unprecedented capabilities of
the vessel, and the high price of the best technologies, have all
driven up cost to the point where the ship is impossible to procure in
sufficient numbers at current budget levels.
Another example, the Air Force desperately needs more air lift, and
it also needs a new tanker aircraft. The Air Force shoulders much of
the mobility mission, and it also performs the mid-air refueling
mission. Normally, the Air Force would simply buy more C-17 aircraft.
It is a perfectly good, modern cargo aircraft. Then the Air Force would
design and procure a new tanker. But because the service is under
tremendous pressure to save money, it has decided to develop a cargo-
tanker, combining the two missions into one aircraft. The service
assures us that it is not going to have any bells and whistles on the
new plane, and the aircraft will be low in cost.
Surely, the concept of a cargo-tanker allows the Air Force to claim
that it will be able to perform both of these missions while relieving
some of the pressure on its budget. But, again, reality must and will
eventually bite. As requirements build and changing technologies force
changes in design, the odds are very high that the cost of the new
aircraft--if it is to do the combined mission it is supposed to do--
will go up substantially.
The problem of cost is exacerbated by the stress on the defense
industrial base. Procurement budgets have been too low for 15 years and
because of budgetary pressured they constantly change. The Department
regularly projects what it intends to procure in the outyears of its
defense plan but then often makes last-minute cuts and changes.
Under those circumstances, it is no surprise that contractors are not
investing sufficiently in the defense industrial base. It is shrinking,
and it is undercapitalized. That means fewer competitors, more sole-
source contracts, less research, and, therefore, higher costs. No
amount of oversight, reform, or pressure on procurement officials can
change that.
The good news is that a robust and consistent commitment to adequate
funding would soon begin to reverse these trends. Again, I am all for
improvements in the way we design and build new systems, and those
improvements can save money. But they cannot work miracles. Sufficient
and stable funding is not only consistent with transformation and
efficient use of the taxpayers' dollars, it is necessary to both. If
Congress were to commit to my proposal, for example, the service chiefs
and the defense industry would know that substantial new money was
coming--enough to make it at least plausible they could produce and
acquire the systems they need. They could budget for the long range,
knowing that funding would be stable. They could work together in a way
that would reduce costs instead of trying to pull money away from other
services or maneuver year to year just to keep vital programs alive,
and often, in a way, that ends up costing the taxpayers more in the
long run.
We must stop thinking that facing reality and funding our military
adequately is beyond the reach of this great Nation. Yes, the Federal
Government has fiscal problems. Yes, the two
[[Page S11437]]
major parties have very different views on what to do about those
problems, but nobody can or does claim that the defense budget is the
cause.
Right now, we are spending 3.8 percent of our gross domestic product
on the regular defense budget. That is a very low percentage
historically, far less than we spent at any time during the Cold War.
Under President Carter, we spent 4.6 percent of the GDP on national
defense.
If we spent only 4.2 percent now, we could easily fund what I have
proposed. We would have a fighting chance to support our service men
and women with the equipment they need and deserve. We could sustain
the military power that the last two Presidents have used to protect
our freedom and stabilize the post-Cold-War world. We would send the
clearest possible message to both our friends and enemies, and to those
nations who are deciding now whether they are going to be a friend or
enemy, that whatever happens, whatever the direction our foreign policy
takes, the United States has the ability to sustain our freedom and the
hope of freedom for the world.
To those who worry about the price of strength, I say there is a
greater price to be paid for weakness. How many conflicts will we
invite, how much instability will we engender, if we allow this
restless and troubled world to doubt America's ability to defend
herself?
Let's look at the risks of alternative courses of action. If we adopt
the course I suggest, and it turns out that I was wrong, all we will
have lost is a fraction of our wealth wealth that would be spent in
this country on products produced by our workers, for a margin of
safety that, in the end, we did not need. But if we stay on our current
course, and it turns out that I was right, how much will we pay then in
lost lives and treasure, fighting in conflicts that a policy of
strength would have deterred?
How big will the deficit become then, in a world made less stable by
American weakness? What effect will that have on the economy, and not
just the economy, but on the hopes and opportunities of the next
generation--our children and our grandchildren--who have the right to
expect that we are looking out for them?
Twenty-five years ago, our country was also in a difficult situation.
Our enemies doubted American resolve. They were challenging us on a
number of fronts. We had just gone through a period of chronic
underfunding of the military, probably worse than what has happened
recently. As a result, the force was hollow, unable to reliably perform
the missions necessary to protect America. That is why the tragic
Desert One mission went so wrong in the desert during the Iranian
hostage crisis.
When President Reagan assumed office, he faced the situation squarely
and honestly, and with the support of a Democratic House and Republican
Senate, he secured two double-digit increases in the overall defense
budget, and reasonable increases for several years thereafter. On the
strength of that bipartisan commitment, America's service men and women
and America's defense industrial base transformed our military into the
truly dominant force that fought and won Operation Desert Storm.
A united government sent the message to friend and foe alike that
whatever our differences about foreign policy, America was still
willing to pay the price of freedom. It is not too much to say that the
decisions made in 1981 and 1982 laid the basis for the collapse of the
Soviet Union, the success of Operation Desert Storm, and the benefits
of peace and security that we enjoyed throughout the 1990s.
With this speech, I bring my career in the Senate to a close. I
believe I can do no greater service to my country than to urge Senators
not to be dissuaded by the counsels of those who say that what I have
proposed cannot be done.
At the beginning of my remarks I stated that America's service men
and women are the finest who have ever served in any military on behalf
of any nation at any time. I should have included their families as
well. I realized that when today, just a few hours ago, I had the
privilege of meeting with Dana Lamberson and her two children, Kelsi
and Evan.
Mrs. Lamberson's husband, SFC Randall Lamberson, was killed in Iraq
only 8 months ago. Mrs. Lamberson told me that before her husband
deployed, their family openly discussed the sacrifice which he, and
they, might be called on to make. I asked her how she was able to bear
her grief with such grace and fortitude. She told me that when she was
tempted to be discouraged, she remembered what her husband had always
said when times were tough: that ``life is only as difficult as you
make it.''
Mr. President, I have met thousands of Americans over the last 4
years like the Lamberson family, not just soldiers and their families,
but people from every walk of life, who live each day with courage,
resilience, and optimism. Because of them, I believe with all my heart
that America's time of leadership is not done.
I ask the Senate to honestly face the true cost of defending this
Nation. If we do, if we carry that burden with confidence, we will find
the weight of it to have been a small thing compared to the blessings
of peace and liberty we will secure for ourselves, and the hope we will
give to freedom-loving people all over the world.
Mr. President, I cannot close without thanking my dedicated staff who
served the people of Missouri so well over the last 4 years, who have
kept me going, kept me on time, who are largely responsible for the
many pieces of legislation which Senator Bond was kind enough to
mention. I just ask the Senate to indulge me for another moment or two
because I am going to read their names. I think they deserve it: Mark
Strand, my chief of staff; Cortney Brown, my scheduler; Les Sealy, our
great office manager who always got us what we needed; Brian Anderson,
our IT manager. I am glad he understood it because I never do.
I thank our legislative staff: Brett Thompson, legislative director;
Faith Cristol, our great legislative counsel; and my legislative
assistants: Lindsey Neas, Katie Smith, Heath Hall, Jesse Appleton,
Katie Duckworth, Christopher Papagianis, Shamed Dogan, and John Cox,
who works so hard and so well on veterans issues, a man who has served
this country in many different venues; Andy Karellas, Martha Petkovich,
and Sarah Cudworth, who did legislative correspondence, grants and case
work; Peter Henry, who managed the mail; Sarah Barfield, my staff
assistant; two great Navy Fellows: CDR Dan Brintzinghoffer and LCDR
Lori Aguayo, two patriots and both outstanding officers; and Mark
Hegerle, my Energy Fellow who came over from the Federal Energy
Regulatory Commission just in time to help me make a real difference on
the Energy bill.
I want to thank our press shop: Rich Chrismer, my great
communications director; Erin Hamm, and Andrew Brandt.
Casework--we handled over 10,000 cases. I am a big believer in
casework. This is a big government, and navigating it is hard, and if
we could help, we wanted to help. I thank Nora Breidenbach, Jenny
Bickel, Abby Pitlick, Debbie Dornfeld, and Jessica Van Beek.
And the State staff, we always tried to integrate the work of the
State staff and the Washington staff, and I think we did it. I thank
Gregg Keller, our State director; in St. Louis: Kacky Garner, my
district director; Peggy Barnhart; Rachel McCombs; and Angel McCormick
Franks; in Kansas City: Joe Keatley, my great district director; Danny
Pfeifer; Emily Seifers; Greg Porter; and Erick Harris; in Jefferson
City: Donna Spickert, who was the State capitol director; and Becky
Almond, my instate scheduler, as well as a great staff assistant; in
Springfield: Terry Campbell, the district director; Christopher Stone;
and Coriann Gastol; and in Cape Girardeau: Jeff Glenn, who directed
that office; and Liz Mainord.
I also want to thank, as other Senators have done, my family, my
wife, obviously, in particular, who has shared the highs and lows of
this job, and my wonder kids.
Mr. President, it remains only for me to thank my colleagues in the
Senate for the many kindnesses, personal and professional, which they
have shown me and my family over the last 4 years.
Mr. President, I yield the floor.
The PRESIDING OFFICER. The Senator from Pennsylvania.
[[Page S11438]]
Mr. SPECTER. Mr. President, I have sought recognition to discuss a
number of matters briefly.
Honoring Senatorial Service
Bill Frist
First, I want to join my colleagues in paying tribute to our majority
leader, Senator Bill Frist, who has done such an outstanding job in the
past 12 years.
Senator Frist came to this Senate as a real all-American. He has
displayed extraordinary talents, academically, professionally, public
service, as a family man, as a friend, at Princeton and Harvard Medical
School, a renowned heart and lung transplant surgeon, then selected to
be the majority leader and has taken this body through a very difficult
4 years and a very productive 4 years.
A great deal has been said about Senator Frist earlier today. I just
wanted to add my personal congratulations to him on his service and to
wish him well.
Rick Santorum
Mr. President, I regret the departure of my distinguished colleague,
Senator Rick Santorum. He has been really a ball of fire in the U.S.
Congress. He was elected in 1990 to the House of Representatives,
defeating a long-term incumbent by literally going door to door in his
district in the Pittsburgh area.
He was elected to the U.S. Senate in 1994, reelected in the year
2000, and has displayed admirable qualities--energy, determination,
confidence, and the pursuit of his own personal values. There is no
doubt that Senator Santorum has espoused, articulated, and pushed
causes he deeply believed in which may not have been popular in many
quarters, but he was determined to undertake the pursuit of those
values because he believed in them so deeply. I counseled him from time
to time to save some of his philosophy for December of the year 2006.
A famous quotation about President Lincoln; he was asked by a little
boy, in effect: How do you serve, Mr. President?
He said: I represent my true beliefs and values 90 percent of the
time.
The little boy said: Well, what about the other 10 percent?
The famous statement by President Lincoln: So that I can represent my
true values 90 percent of the time.
It is not unknown in our body to occasionally defer some of the more
controversial positions. But Senator Santorum didn't do that. He spoke
his mind and he spoke his heart. Those are rare qualities in public
life and public service and in politics. For that, I salute him.
On a personal level, Rick and I have had a superb relationship, not
only professionally, not only politically, but also personally. A more
devoted family man could not be found. He has taken this turn of
electoral results philosophically and in a good spirit. I have had some
experience on the losing end of elections and, having been there, I say
that he has responded with great class, with great style. His comment
earlier this week was: Tough on the family, tough on Karen, tough on
the children, but now they have their husband back, and they have their
father back. And he had a big smile and a sense of satisfaction. He
spoke to the caucus yesterday, and he exuded confidence. He exuded
personal pride in what he had done. I join him in that. As a colleague,
I personally will miss him very much. I know that will be the sentiment
of this body, even those with whom he has tangled in a rigorous way.
Confirmation of Judges
Mr. President, I urge my colleagues to move ahead with the
confirmation of judges.
We have U.S. District Judge Kent Jordan, of the District of Delaware,
who has been nominated to be a judge on the U.S. Court of Appeals for
the Third Circuit. He has been approved by the Judiciary Committee and
is ready for floor action. Nobody has anything adverse to say about
Judge Jordan. He is endorsed by both of the Delaware Senators, both of
whom are Democrats. They have a judicial emergency in the Third
Circuit, and he ought to be confirmed.
We also have a list of some 13 district court nominations pending on
the executive calendar. I ask unanimous consent that the list be
printed at the conclusion of my remarks.
The PRESIDING OFFICER. Without objection, it is so ordered.
(See Exhibit 1.)
Mr. SPECTER. A good number of these nominees are also in districts
where there are judicial emergencies. I think that from time to time we
in the Senate, where we have the responsibility for confirmation, don't
really take seriously enough the impact of judicial vacancies. The
courts are busy. The Third Circuit, my circuit, is overwhelmed.
District Court Judge Jordan ought to be confirmed. My colleagues have
told me about the problems posed by vacancies in their states. If these
other 13 districts nominees are not confirmed today, they will languish
until who knows--January turns into February and February in March. We
always find a reason around here not to do something. That applies most
emphatically to the judges.
It is my hope that in the 110th Congress, we will approach judicial
confirmations a little differently. I have already consulted with
Senator Leahy, who will become chairman of the committee. Senator Leahy
and I have had an excellent working relationship on a bipartisan basis,
and the record shows it. I don't have to go into detail about that. I
have recommended to the White House that the it consult with Senator
Leahy and the Democrats, as well as with Arlen Specter, as ranking
member, and the Republicans. There is a limited amount of time. We know
what happens in a Presidential election year.
Let us make a determination about which judges can be confirmed--
judges who meet the standards and criteria of President Bush but who
also pass muster in the U.S. Senate on both sides of the aisle. We have
had vacancies for interminable periods of time. I have discussed this
with Senator Leahy and with the White House.
I hope we approach the 110th Congress differently. And before this
Congress adjourns, the 109th, I hope we will confirm these judges who
are on the calendar awaiting floor action.
Exhibit 1
Judicial Nominees Pending on the Senate Floor
The following nominees were all reported out of the Judiciary
Committee prior to the October recess. Eight of the 14 nominees on the
floor are in districts where judicial emergencies have been declared.
----------------------------------------------------------------------------------------------------------------
Nominee Position Date Nominated Total Days Pending
----------------------------------------------------------------------------------------------------------------
Circuit:
*Kent A. Jordan............... Third Circuit............. 6/29/2006 161
District:
Valerie Baker................. Central District of 5/4/2006 217
California.
Nora Barry Fischer............ Western District of 7/14/2006 146
Pennsylvania.
Gregory Frizzell.............. Northern District of 6/7/2006 183
Oklahoma.
*Philip Gutierrez............. Central District of 4/24/2006 227
California.
Marcia M. Howard.............. Middle District of Florida 6/6/2006 184
John A. Jarvey................ Southern District of Iowa. 6/29/2006 161
*Robert J. Jonker............. Western District of 6/29/2006 161
Michigan.
Sara E. Lioi.................. Northern District of Ohio. 7/14/2006 146
*Paul L. Maloney.............. Western District of 6/29/2006 161
Michigan.
*Janet T. Neff................ Western District of 6/29/2006 161
Michigan.
*Lawrence J. O'Neill.......... Eastern District of 8/2/2006 127
California.
*Leslie Southwick............. Southern District of 6/6/2006 184
Mississippi.
*Lisa Godbey Wood............. Southern District of 6/12/2006 178
Georgia.
----------------------------------------------------------------------------------------------------------------
*Indicates a Judicial Emergency.
attorney-client privilege protection act
Mr. SPECTER. Mr. President, I introduced legislation which will
modify practices of the Department of Justice on the attorney-client
privilege where the Department of Justice, acting under a memorandum
called the
[[Page S11439]]
Thompson Memorandum by Deputy Attorney General Thompson, has initiated
a policy where requests are made to waive the attorney-client
privilege, and if the attorney-client privilege is not waived, then
that is considered in the charges brought by the Federal Government,
and also a commitment that corporations will not pay counsel fees for
their employees whom they are customarily expected to defend. This is
an encroachment and a violation of the sixth amendment right to jury
trial.
Because of the limited time and other Senators waiting, I will not
elaborate upon the provisions of this legislation.
I ask unanimous consent that a summary of the bill and the text of
the bill be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. __
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 ``Attorney-Client Privilege
Protection Act of 2006''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) Justice is served when all parties to litigation are
represented by experienced diligent counsel.
(2) Protecting attorney-client privileged communications
from compelled disclosure fosters voluntary compliance with
the law.
(3) To serve the purpose of the attorney-client privilege,
attorneys and clients must have a degree of confidence that
they will not be required to disclose privileged
communications.
(4) The ability of an organization to have effective
compliance programs and to conduct comprehensive internal
investigations is enhanced when there is clarity and
consistency regarding the attorney-client privilege.
(5) Prosecutors, investigators, enforcement officials, and
other officers or employees of Government agencies have been
able to, and can continue to, conduct their work while
respecting attorney-client and work product protections and
the rights of individuals, including seeking and discovering
facts crucial to the investigation and prosecution of
organizations.
(6) Despite the existence of these legitimate tools, the
Department of Justice and other agencies have increasingly
employed tactics that undermine the adversarial system of
justice, such as encouraging organizations to waive attorney-
client privilege and work product protections to avoid
indictment or other sanctions.
(7) An indictment can have devastating consequences on an
organization, potentially eliminating the ability of the
organization to survive post-indictment or to dispute the
charges against it at trial.
(8) Waiver demands and other tactics of Government agencies
are encroaching on the constitutional rights and other legal
protections of employees.
(9) The attorney-client privilege, work product doctrine,
and payment of counsel fees shall not be used as devices to
conceal wrongdoing or to cloak advice on evading the law.
(b) Purpose.--It is the purpose of this Act to place on
each agency clear and practical limits designed to preserve
the attorney-client privilege and work product protections
available to an organization and preserve the constitutional
rights and other legal protections available to employees of
such an organization.
SEC. 3. DISCLOSURE OF ATTORNEY-CLIENT PRIVILEGE OR
ADVANCEMENT OF COUNSEL FEES AS ELEMENTS OF
COOPERATION.
(a) In General.--Chapter 201 of title 18, United States
Code, is amended by inserting after section 3013 the
following:
``Sec. 3014. Preservation of fundamental legal protections
and rights in the context of investigations and enforcement
matters regarding organizations
``(a) Definitions.--In this section:
``(1) Attorney-client privilege.--The term `attorney-client
privilege' means the attorney-client privilege as governed by
the principles of the common law, as they may be interpreted
by the courts of the United States in the light of reason and
experience, and the principles of article V of the Federal
Rules of Evidence.
``(2) Attorney work product.--The term `attorney work
product' means materials prepared by or at the direction of
an attorney in anticipation of litigation, particularly any
such materials that contain a mental impression, conclusion,
opinion, or legal theory of that attorney.
``(b) In General.--In any Federal investigation or criminal
or civil enforcement matter, an agent or attorney of the
United States shall not--
``(1) demand, request, or condition treatment on the
disclosure by an organization, or person affiliated with that
organization, of any communication protected by the attorney-
client privilege or any attorney work product;
``(2) condition a civil or criminal charging decision
relating to a organization, or person affiliated with that
organization, on, or use as a factor in determining whether
an organization, or person affiliated with that organization,
is cooperating with the Government--
``(A) any valid assertion of the attorney-client privilege
or privilege for attorney work product;
``(B) the provision of counsel to, or contribution to the
legal defense fees or expenses of, an employee of that
organization;
``(C) the entry into a joint defense, information sharing,
or common interest agreement with an employee of that
organization if the organization determines it has a common
interest in defending against the investigation or
enforcement matter;
``(D) the sharing of information relevant to the
investigation or enforcement matter with an employee of that
organization; or
``(E) a failure to terminate the employment of or otherwise
sanction any employee of that organization because of the
decision by that employee to exercise the constitutional
rights or other legal protections of that employee in
response to a Government request; or
``(3) demand or request that an organization, or person
affiliated with that organization, not take any action
described in paragraph (2).
``(c) Inapplicability.--Nothing in this Act shall prohibit
an agent or attorney of the United States from requesting or
seeking any communication or material that such agent or
attorney reasonably believes is not entitled to protection
under the attorney-client privilege or attorney work product
doctrine.
``(d) Voluntary Disclosures.--Nothing in this Act is
intended to prohibit an organization from making, or an agent
or attorney of the United States from accepting, a voluntary
and unsolicited offer to share the internal investigation
materials of such organization.''.
(b) Conforming Amendment.--The table of sections for
chapter 201 of title 18, United States Code, is amended by
adding at the end the following:
``3014. Preservation of fundamental legal protections and rights in the
context of investigations and enforcement matters
regarding organizations.''.
____
Attorney-Client Privilege Protection Act of 2006
The bill protects the attorney-client relationship by
prohibiting federal lawyers and investigators from: (1)
requesting that an organization waive its attorney-client
privilege or work product doctrine; and (2) conditioning any
charging decision or cooperation credit on waiver or non-
waiver of privilege, the payment of an employee's legal fees,
the continued employment of a person under investigation, or
the signing of a joint defense agreement.
All of the acts and considerations prohibited by the bill
are acts and considerations that federal prosecutors must
factor into any corporate or organizational charging decision
under DOJ's Thompson Memorandum, which is described in more
detail below.
The bill is appropriately narrow. It allows organizations
to continue offering internal investigation materials to
prosecutors, but only if such an offer is entirely voluntary
and unsolicited by the prosecutors. The bill also allows
prosecutors to seek materials that they reasonably believe
are not privileged.
Mr. SPECTER. I well understand that there will be no action on this
matter during this Congress, but I want to put it into the public
milieu so there can be comment about it and it will be pursued in the
next Congress. The Department of Justice has advised that they are
going to revise the Thompson Memorandum to a memorandum called the
McNulty Memorandum from the Deputy Attorney General. I had hoped we
would have had it before the Senate went out of session so that we
could have reviewed it and perhaps accepted their work, but it is not
ready. I have advised Deputy Attorney General Paul McNulty and also
Attorney General Gonzales that this legislation would be introduced and
we can work on it in the next Congress.
Hedge Funds
Mr. SPECTER. Mr. President, I will include for the Record proposed
legislation to deal with hedge funds. The Judiciary Committee has had a
series of hearings on this important subject, now $1.3 trillion in the
economy, 30 percent of the stock transactions. After reflecting on the
matter, I have decided not to introduce the legislation but simply to
put the draft bill in the record so that there can be further comment.
I talked about this proposed legislation earlier this week and had said
that I was going to introduce the legislation, but I want to give
interested parties more time to comment on it.
[[Page S11440]]
I ask unanimous consent that a summary of the bill and the bill
itself be printed in the Record. I am not introducing the bill. I do
not look for a Senate bill number on it. But it will be in the public
record, and there will be more time for people in the profession to
evaluate and comment upon it.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. __
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 ``Criminal Misuse of Material
Nonpublic Information and Investor Protection Act of 2006''.
SEC. 2. FINDINGS; PURPOSE.
(a) Findings.--Congress finds the following:
(1) Unlawful insider trading causes a loss of confidence in
the integrity of the securities markets, increases the cost
of equity capital, and places small investors at a
disadvantage.
(2) Unlawful insider trading and other misuse of material
nonpublic information is insidious and has become pervasive.
The number of insider trading referrals to the Securities and
Exchange Commission from the New York Stock Exchange has
doubled in the past 2 years.
(3) There is a need to increase the probability that
wrongdoers will be detected and successfully prosecuted and
to decrease the opportunity for misuse of material nonpublic
information.
(4) Criminal prosecutions and effective compliance programs
are the most effective deterrent to unlawful insider trading
and other misuse of material nonpublic information.
(5) Effective criminal enforcement has depended on close
cooperation and sharing of expertise and duties of
investigation among civil regulatory agencies, such as the
Securities and Exchange Commission, the Commodities Futures
Trading Commission, the Department of Justice, and self-
regulatory organizations. Certain recent court decisions have
chilled this cooperation.
(6) Misuse of material nonpublic information by
manipulating the grant dates of stock options or timing of
publication of material nonpublic information for purposes of
more profitable trading is a form of unlawful insider trading
that harms investors. Public companies that adhere to a
regular and objectively identifiable program for selecting
option grant dates presumptively are not engaging in
fraudulent behavior regarding the grant of those options.
(7) The hedge fund industry currently accounts for
approximately 30 percent of all United States equity trading
volume, and this percentage has been growing rapidly. A
substantial percentage of the open investigations of insider
trading by the Securities and Exchange Commission in 2006
involve hedge funds.
(8) Hedge funds increasingly are making loans,
participating in private placements, and sitting on
bankruptcy committees and corporate boards. These changes
increase hedge funds' access to material nonpublic
information. Pressure on hedge funds to deliver high returns
may increase the risk of insider trading or other misuse of
such information.
(9) Light regulation, secrecy, unregulated recordkeeping,
and limited compliance programs of hedge funds increase the
difficulty of detecting and proving unlawful insider trading
by hedge funds.
(10) Hedge funds enhance market liquidity and contribute to
pricing efficiency and market stabilization, but these
sophisticated instruments should be restricted to wealthy
investors. Recent hedge fund collapses and fraudulent trading
activities have harmed retirees and smaller investors who
increasingly are exposed to the risk of hedge funds through
intermediaries such as pension funds and long term growth and
saving vehicles. Requiring registration with the Securities
and Exchange Commission by hedge funds or hedge fund advisers
that sell securities to or manage investments of pension
funds and smaller investors strikes the appropriate balance
between investor protection and capital formation needs.
(b) Purpose.--The purpose of this Act is to ensure
effective criminal enforcement of prohibitions against
unlawful insider trading and effective protection of the
integrity of the securities markets and investors who use
them by authorizing coordination of investigation by civil
regulatory agencies and the Department of Justice, providing
effective incentives for private citizens to report and
provide evidence of misuse of material nonpublic information,
requiring hedge funds to create and enforce effective
compliance programs and ensure maintenance of records, and
removing exemptions from coverage under the Securities Act of
1933, and the Investment Company Act of 1940, for hedge funds
that choose to sell to and manage investments of pension
funds and retail investors, unless the adviser or manager is
registered under the Investment Advisers Act of 1940.
SEC. 3. DEFINITIONS.
In this Act--
(1) the term ``hedge fund''--
(A) means a privately offered, pooled investment vehicle--
(i) that is not widely available to the public; and
(ii) the assets of which are managed by a professional
investment management firm or other fund manager or adviser;
and
(B) does not include a private equity, venture capital, or
real estate fund; and
(2) the term ``qualified purchaser'' has the meaning given
that term in section 2 of the Investment Company Act of 1940
(15 U.S.C. 80a-2).
SEC. 4. MISUSE OF MATERIAL NONPUBLIC INFORMATION.
Section 1348 of title 18, United States Code, is amended--
(1) by inserting ``(a) In General.--'' before ``Whoever'';
and
(2) by adding at the end the following:
``(b) Misuse of Material Nonpublic Information.--
``(1) In general.--It shall be unlawful for any person to--
``(A) knowingly use material nonpublic information of a
specific nature gained by means other than research and skill
as a significant factor in a trading decision (including a
decision affecting the timing or volume of trading) in
connection with any security of an issuer with a class of
securities registered under section 12 of the Securities
Exchange Act of 1934 (15 U.S.C. 78l) or that is required to
file reports under section 15(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o) (including trading in options
contracts), regardless of whether such person owes a duty to,
has an agreement with, or makes a disclosure of intent to
trade to the source of the information; or
``(B) knowingly use material nonpublic information of a
specific nature to establish, or to otherwise manipulate, the
grant date or strike price of stock options or the timing of
the publication of material nonpublic information for the
purpose of creating the potential for increased profitability
of the exercise of stock options or other trading in
securities.
``(2) Penalty.--Whoever violates paragraph (1) shall be
fined under this title, imprisoned not more than 25 years, or
both.
``(c) Investigations of Offenses.--
``(1) In general.--The Attorney General may, in the
discretion of the Attorney General, and in no way in
limitation of any other authority of the Attorney General--
``(A) make such investigations as the Attorney General
determines necessary to ascertain whether any person has
violated, is violating, or is about to violate any provision
of this section;
``(B) request or receive, at any stage of an investigation,
evidence concerning such acts or practices as may constitute
a violation of this section from the Securities and Exchange
Commission, Commodities Futures Trading Commission, or
another Federal agency; and
``(C) coordinate the investigation and prosecution of acts
or practices as may constitute a violation of this section
with the attorney general of any State or States.
``(2) No requirement to disclose.--The Attorney General and
agents of any other Federal agency have no duty, and shall
not be required, to disclose any contact or investigation
described in paragraph (1) to any person, except under a
court order issued on good cause shown that the sole basis
for the civil investigation is to assist in a criminal
investigation by the Attorney General.''.
SEC. 5. INCENTIVES FOR PRIVATE CITIZENS TO REPORT AND ASSIST
IN THE INVESTIGATION OF UNLAWFUL INSIDER
TRADING; PROTECTION FROM RETALIATION.
(a) Awards.--
(1) In general.--The Attorney General of the United States
may award an amount equal to not more than 30 percent of any
fine, penalty, or settlement recovered by the Attorney
General to a person who provides information leading to the
prosecution of unlawful insider trading, or other violation
of section 1348 of title 18, United States Code, (as amended
by this Act), the Securities Exchange Act of 1934 (15 U.S.C.
78a et seq.), or a related wire or mail fraud.
(2) Considerations.--In making an award under this
subsection, the Attorney General shall take into account--
(A) the importance of the information provided by the
person;
(B) whether the Federal Government had some or all of the
information provided by the person before that person
provided that information;
(C) whether the information was provided voluntarily;
(D) whether the person was complicit;
(E) the assistance of other persons; and
(F) the amount of the fine, penalty, or settlement from
which the award will be paid.
(3) Identity.--The identity of a person providing
confidential information regarding unlawful insider trading
or related fraud may remain anonymous, and that person may
still be eligible to receive an award under this subsection,
if that person provides sufficient evidence to allow the
identification of that person as the source of that
information.
(4) Exclusions.--A Federal employee or an employee of a
self-regulatory organization (as that term is defined in
section 3 of the Securities Exchange Act of 1934 (15 U.S.C.
78c)) may not receive an award under this subsection if the
information provided to the Federal Government was gained in
the course of the employment of that person.
(b) Retaliation.--A person who suffers retaliation because
that person, in good faith
[[Page S11441]]
and with reasonable basis, has provided specific information
about unlawful insider trading to the Federal Government, or
has assisted in a Federal investigation of unlawful insider
trading, may file a private action in a United States
district court against the person or entity that has engaged
in the retaliation, and may recover damages based on economic
losses resulting from such retaliation, and attorneys' fees.
SEC. 6. COMPLIANCE AND RECORDKEEPING BY HEDGE FUNDS AND FUNDS
OF HEDGE FUNDS.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, each hedge fund, fund of hedge funds,
and manager of a hedge fund or fund of hedge funds that
offers securities to, or manages investments of, residents of
the United States shall--
(1) establish a written code of ethics that contains
provisions reasonably necessary to prevent misuse of material
nonpublic information;
(2) design a formal compliance program and written policies
and procedures that address--
(A) safeguarding of material nonpublic information;
(B) misuse of material nonpublic information;
(C) the personal securities transactions and ownership of
employees;
(D) employee education and acknowledgment of education;
(E) the role of trained compliance personnel in the
monitoring and control of material nonpublic information; and
(F) detection and prevention of misuse of material
nonpublic information; and
(3) implement procedures, internal controls, and
recordkeeping systems adequate to ensure compliance with the
code, program, policies, and procedures described in
paragraphs (1) and (2).
(b) Penalty.--Any hedge fund, fund of hedge funds, or
manager or adviser of a hedge fund that fails to comply with
subsection (a) and offers securities to, or manages
investments of, residents of the United States shall each be
fined not more than $5,000 per day of material violation of
this section.
(c) Enforcement.--
(1) In general.--Compliance with this section shall be
enforced by the Department of Justice and the Securities and
Exchange Commission.
(2) Records.--The records of a hedge fund, fund of hedge
funds, or manager or adviser of a hedge fund relating to a
requirement of this section or compliance with this section
are subject to reasonable periodic, special, and other
examination by a representative of the Department of Justice
or the Securities and Exchange Commission for purposes of
determining compliance with this section.
(d) Disclosures.--Each hedge fund and fund of hedge funds
shall provide any investor or prospective investor in that
hedge fund with information to enhance the ability of that
investor or prospective investor to evaluate investment
decisions regarding that hedge fund, including information
regarding--
(1) the investment objectives, strategies to be employed,
and range of permissible investments of that hedge fund;
(2) the risks of making an investment in that hedge fund,
including the use of debt to leverage returns;
(3) base-line performance information regarding that hedge
fund;
(4) any agreement between the hedge fund and investors that
varies the material terms of the arrangements with certain
investors; and
(5) whether that hedge fund has engaged qualified external
auditors to audit annual financial statements.
SEC. 7. REGISTRATION OF HEDGE FUNDS THAT CHOOSE TO OFFER
SECURITIES TO PENSION FUNDS AND SMALLER
INVESTORS.
(a) Securities Act of 1933.--On and after the date that is
300 days after the date of enactment of this Act, the sale of
securities, directly or indirectly, by a hedge fund, fund of
hedge funds, or manager or adviser of a hedge fund to a
pension fund or investor who is not a qualified purchaser
shall be a public offering for purposes of section 4(2) of
the Securities Act of 1933 (15 U.S.C. 77d(2)).
(b) Investment Company Act of 1940.--On and after the date
that is 300 days after the date of enactment of this Act, a
hedge fund manager or adviser that manages, directly or
indirectly, the investments of a public or private pension
fund or of any person who is not a qualified purchaser may
not be determined to be excluded from the definition of an
investment company for purposes of the Investment Company Act
of 1940 (15 U.S.C. 80a-1 et seq.) based on paragraph (1) or
(7) of section 3(c) of that Act (15 U.S.C. 80a-3(c)).
(c) Applicability.--This section shall not apply--
(1) to any hedge fund or fund of hedge funds if less than 5
percent of the capital of that fund is attributable, directly
or indirectly, to investments by pension funds or investors
who are not qualified purchasers; or
(2) to a hedge fund adviser, if that advisor is registered
with the Securities and Exchange Commission under the
Investment Advisers Act of 1940.
SEC. 8. REVISING DEFINITION OF ACCREDITED INVESTOR AS APPLIED
RETAIL INVESTMENT IN HEDGE FUNDS.
A hedge fund may not charge a performance fee, if more than
5 percent of the assets under management of the hedge fund
are owned by persons whose net worth, or joint net worth with
the person's spouse, is less than $3,000,000, excluding the
value of the primary residence of the person.
Mr. SPECTER. Mr. President, I urge the confirmation of Dr. Andrew von
Eschenbach to be Commissioner of the Food and Drug Administration. Dr.
Von Eschenbach is a native Philadelphian. He has had a very
distinguished professional record. He has served as the director of the
National Cancer Institute. He has made a commitment publicly to lead
the way to conquer cancer by the year 2015. Frankly, that is not good
enough for me. I think we ought to do it sooner.
In 1970, President Nixon declared war on cancer. Had we pursued that
war with the same diligence we have pursued other wars, many people
would not have died and many people would not have contracted cancer.
Dr. Von Eschenbach has done an outstanding job in his professional
career, and he would make an excellent Commissioner of the FDA.
I ask unanimous consent that my statement of his qualifications and
background be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Statement of Senator Arlen Specter--Nomination of Dr. Andrew von
Eschenbach Commissioner of the Food and Drug Administration
Mr. SPECTER. Mr. President, I have sought recognition to
speak in support of the nomination of Dr. Andrew von
Eschenbach to be Commissioner of the Food and Drug
Administration. Dr. von Eschenbach brings an extraordinary
record to the FDA as he has accomplished a great deal.
I am pleased that the Senate invoked cloture on Dr. von
Eschenbach's nomination, and that the Health, Education,
Labor and Pensions committee unanimously supported the
nomination of such an accomplished Pennsylvanian. A native of
Philadelphia, Dr. von Eschenbach earned a B.S. from St.
Joseph's University in Philadelphia in 1963, and his medical
degree from Georgetown University School of Medicine in 1967.
He completed residencies at Pennsylvania Hospital in general
surgery and urology and taught urology at the University of
Pennsylvania School of Medicine. He also served in the U.S.
Navy Medical Corps with the rank of lieutenant commander from
1968 to 1971. Dr. von Eschenbach is a nationally recognized
urologic surgeon and oncologist, and his distinguished career
as a leader in the fight against cancer spans over three
decades.
As Chairman of the Labor, Health and Human Services, and
Education Appropriations subcommittee, I have worked with Dr.
von Eschenbach in his capacity as director of the National
Cancer Institute (NCI). When Dr. von Eschenbach was
president-elect of the American Cancer Society, he was
selected by President George W. Bush to head the NCI in
December 2001. As director of the NCI, he announced in 2003
that his organization's goal was to ``eliminate suffering and
death'' caused by cancer by the year 2015.
In 1970, the President of the United States, Richard Nixon,
declared war on cancer and had that war been pursued with the
same diligence and resources that we pursue other wars, I
would not have gotten cancer, my former chief of staff, Carey
Lackman would not have died of cancer, a good friend of mine,
Paula Kline, wife of Tom Kline, my former law partner, and my
good friend Federal Judge Edward Becker would not have died.
It is something that we hear about every day. Dr. von
Eschenbach, a cancer survivor himself, understands the need
for better cancer treatments. During Dr. von Eschenbach's
tenure as Director of the NCI, funding for the NCI for FY03
was $4.67 billion. Today, recommended Senate funding for the
NCI is $4.8 billion, an increase of $13 million. However, it
is concerning that the funding for the NCI in fiscal year
2006 was $50 million less than fiscal year 2005.
If Dr. von Eschenbach is confirmed, I look forward to
working with him as Commissioner of the FDA. His expertise,
experience, and commitment to public service will be of great
services to our nation.
The PRESIDING OFFICER. The Senator from Nevada.
Rick Santorum
Mr. ENSIGN. Mr. President, I am going to take a couple minutes to
talk about my great friend Rick Santorum. Election night; a lot of
emotions going on; no question my heart was torn because my best friend
in the Senate lost the election that night. I was saddened simply from
a personal level, but I was also saddened for our country because I
believe Rick Santorum has served this country so well. His integrity,
his vision--so many things about this man have really been
extraordinary.
I have gotten to know a lot of the people around him, his staff. It
says a lot about him because of how many of them are sitting in this
room today. The quality of the people he has around him says a
tremendous amount about
[[Page S11442]]
him, as does the passion with which they served him and the passion
with which he serves the country.
I also came to know Karen and his six kids. They are extraordinary
people. Rick is a great leader of his home. Just seeing the love and
respect that Karen has for Rick and that his children have for him as a
father says a lot about him as an individual as well.
I am going to keep this short. This is completely from the heart. I
can say with confidence that as a human being, there have been maybe as
good human beings who have served in this Senate, but there have been
no better. He is that quality of a human being. His faith leads him to
that. I consider it a great privilege to have served with him and to
call him a friend over these last 6 years. I know the friendship he and
I share will be a lifetime friendship.
Rick, this body will miss you greatly, but no one in this body will
miss you more than I.
The PRESIDING OFFICER (Mr. Chafee). The Senator from Pennsylvania is
recognized.
Farewell to the Senate
Mr. SANTORUM. Mr. President, let me thank my great friend and
colleague from Nevada for his very kind words. I thank him for coming
to hear my last speech on the floor of the Senate. I know there are
many listening who are applauding at this moment for that. But I come
here with a wonderful spirit. I have written on the top of the page the
same words that I wrote the night of the election, and that is the word
``gratitude'' because that is all I feel--an incredible sense of
gratitude.
Mark Rodgers is my long-time friend and chief of staff, now head of
the conference. We were talking again this morning about coming to work
every day and walking up to the Capitol Building every day for 16 years
now and still feeling that, wow, I work here--every day for 16 years.
It was such a gift, such an incredible gift to be blessed to serve the
people of the 18th District in the Congress, southwestern Pennsylvania,
in Allegheny County, and for 12 incredible years to be able to serve
the people of Pennsylvania here.
So first and foremost, I want to thank who is most responsible--and
that is God--for this great gift he has bestowed upon me and my
family--to be able the serve the greatest country in the history of the
world and to serve in a body that is, and hopefully will be, the
greatest deliberative body in the world. I think back to my dad, when
he came to this country, and my mom, who is a second generation, and I
think of how I grew up. It is amazing what a great country this is and
how God has bestowed upon me and my family tremendous blessings. So I
thank Him for the opportunity he has given me to serve. We are all
called to serve. Some are frustrated because they don't think they are
in a job or a position in life where they are doing what God has called
them to do. God has blessed me with the opportunity to do this and to
serve in a way that I hope he has called me to serve.
Second, I thank my family. Karen and the kids are watching. They have
suffered a lot and have sacrificed a lot in 16 years. I was telling
John the other day that it is amazing how you think you are doing
certain things well, and then you have the opportunity to spend a
little more time doing those things and you realize how insufficiently
you did them in the past. A phrase from the Bible is ringing in my
ears, ``the scales falling off of the eyes.'' In the last month or so,
I have had a lot of scales fall from my eyes--to see not just what the
2 years have been to my family, which have been a tough 2 or 3 years,
but the accumulation of 16 years in what is a very difficult life. I
know everybody here recognizes that because you live it. They know how
difficult this life is, how public everything we do and say is or what
we are accused of. We think we understand how difficult that is for our
family, but I don't think we really do. I want to say thank you to
Karen, who I picture in my mind with this T-shirt dress she wore and
had stenciled on it ``Santorum for Congress.'' She went knocking on
doors in 1990, when no one gave us a chance. We did the impossible. We
were able to defeat a 14-year incumbent who no one thought could be
beat. I would not have even come close to winning that election but for
her.
In 1994, it was the same thing. She went out with the two children at
home and she spent day after day--not traveling with, no; she was
giving speeches in her own right and traveling all over the
Commonwealth of Pennsylvania, sacrificing. They continued to do that
day after day, year after year. I was a Senator, and I had important
things to do.
I tell stories all the time about debates that were held on the floor
of the Senate, when I would call Karen and say I had to come back to
this very place and say more. There was never a hesitation. She served
more than I did. My children--none of them have known their father
without being in politics. I got married in 1990 to Karen, and
Elizabeth came along 11 months later. Their life has been with their
father in politics, in the public arena. They have had to deal with
that in both pleasurable ways and some very painful ways. So I thank
them for being without their dad far too often. Even when they are with
their dad, I am not as attentive as I should have been. But I think
they knew and they shared in the endeavor because they knew it was
important for them and for our country.
So, hopefully, out of this experience they have been given a sense of
purpose, and they know more about what life should be all about and
that is to serve--serve God, serve your family, serve your community,
and to serve your country. It is a great blessing. I thank them for the
opportunity they have given me, through their sacrifice, to do that for
the last 16 years.
I thank my mom and dad and Karen's mom and dad and all in our family
who have been supportive every step of the way--sometimes wondering why
I was doing this, sometimes unable to walk to the end of the driveway
and pick up the paper for fear of what next was going to be said about
their son-in-law or son. But they stood with us and fought with us and
they comforted us. I thank them.
John mentioned the people who are here in this room, my staff.
I ask unanimous consent to have printed a list of all of the folks
who worked for us over the last 12 years in the Senate at the end of my
remarks.
The PRESIDING OFFICER. Without objection, it is so ordered.
(See Exhibit 1.)
Mr. SANTORUM. Mr. President, I wish I could read all these names, but
there are a lot of names. These are people who worked for me in my
personal office in Washington and in my offices across the State and
the people who worked here in Washington in my leadership office at the
Senate Republican Conference. John said it so well. These are
incredible people. I have had the opportunity now in the last few days
to sit and talk with each one of my staff members to find out what they
are doing and to get any final thoughts they would have. One after
another, I have been amazed at the dedication, intelligence, caring,
and the commitment of service they had to the people of Pennsylvania,
or to the causes I have attempted to do my best to fight for in the
Senate. These are incredibly talented people whom I have been so
blessed to be associated with and to work with.
I looked at the list of our legislative accomplishments and I can
say, yes, I worked on that, but on the autism legislation, Jennifer
Vesey wrote it, not me. She spent 16 months working with 15 offices. In
fact, let me do something at this point.
____________________