[Congressional Record Volume 155, Number 23 (Thursday, February 5, 2009)]
[Senate]
[Pages S1679-S1686]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. LUGAR (for himself, Mr. Casey, and Mr. Durbin):
S. 384. A bill to authorize appropriations for fiscal years 2010
through 2014 to provide assistance to foreign countries to promote food
security, to stimulate rural economies, and to improve emergency
response to food crises, to amend the Foreign Assistance Act of 1961,
and for other purposes; to the Committee on Foreign Relations.
Mr. LUGAR. Mr. President, I am pleased today to announce the
introduction of the Global Food Security Act of 2009. I would like to
thank my friend Senator Casey for lending his ideas and support to this
bipartisan effort, and Senator Durbin for his early cosponsorship.
Finally, I want to thank the members of USAID's informal food security
team, who advised us on the nature of food insecurity and possible
legislative solutions.
As we know, food prices started a steep climb in the fall of 2007 and
continued to increase during 2008. The increases pushed an additional
75 million people into poverty. While prices have abated somewhat,
millions of people still face difficulty in food access and
availability, and malnutrition rates in many parts of the world remain
alarmingly high. The price crisis demonstrated that there are
significant structural challenges to attaining global food security.
The system is vulnerable to periodic disruptions that both expose and
exacerbate deeper problems.
We live in a world where nearly one billion people suffer from
chronic food insecurity. When droughts occur, hurricanes hit, or other
disruptions arise--creating transitory food insecurity the economic
prospects of those living in or near poverty are gravely threatened. In
fact, the World Food Program reports that 25,000 people die each day
from malnutrition-related causes. Health experts advise us that a
diverse and secure food supply has major health benefits, including
increasing child survival, improving cognitive and physical development
of children, and increasing immune system function including resistance
to HIV/AIDS. Prolonged malnutrition in children results in stunting and
cognitive difficulties that last a lifetime.
Food insecurity is a global tragedy, but it is also an opportunity
for the United States. The United States is the indisputable world
leader in agricultural production and technology. A more focused effort
on our part to join with other nations to increase yields, create
economic opportunities for the rural poor, and broaden agricultural
knowledge could begin a new era in U.S. diplomacy. Such an effort could
improve our broader trade relations and serve as a model for similar
endeavors in the areas of energy and scientific cooperation. Achieving
food security for all people also would have profound implications for
peace and U.S. national security. Hungry people are desperate people,
and desperation often sows the seeds of conflict and extremism.
The United States has always stood for big ideas--from the founding
of the
[[Page S1680]]
Republic on the basis of freedom to President Kennedy's vow to put a
man on the moon. One of today's big ideas should be the eradication of
hunger. We can bring America's dedication to science, innovation,
technology, and education together to lead an effort devoted to
overcoming the obstacles to food security.
The Global Food Security Act of 2009 is a 5-year authorization that
seeks to provide solutions that will have the greatest effect. First,
it creates a Special Coordinator for Global Food Security and puts that
person in charge of developing a food security strategy. We call on the
development of that strategy to take a whole-of-government approach and
to work with other international donors, the NGO community, and the
private sector. Addressing food security requires more than investing
in agriculture; it also requires improvements in infrastructure, the
development of markets, access to finance, and sound land tenure
systems, to name just a few.
Second, the bill authorizes additional resources for agricultural
productivity and rural development. U.S. foreign assistance for
agriculture has declined by nearly 70 percent since the 1980s.
Globally, only four percent of official development assistance from all
donors is currently allocated for agriculture. This amounts to neglect
of what should be considered one of the most vital sectors in the
alleviation of poverty. Food shortages are likely to recur frequently
if the United States and the global community fail to invest in
agricultural productivity in the developing world.
Third, the bill improves the U.S. emergency response to food crises
by creating a separate Emergency Food Assistance Fund that can make
local and regional purchases of food, where appropriate. Funds can be
used for emergency food and non-food assistance. The Government
Accountability Office reports that it can often take four to six months
from the time a crisis occurs until U.S. food shipments arrive. Our
intention is to provide USAID with the flexibility to respond to
emergencies more quickly in order to complement food aid programs in
the U.S. Department of Agriculture.
World leaders must understand that over the long term, satisfying
global demand for more and better food can be achieved only by
increasing yields per acre. In the 1930s, my father, Marvin Lugar,
produced corn yields of approximately 40 to 50 bushels per acre. Today,
the Lugar farm yields about 150 bushels per acre on the same land in
Marion County, Indiana. The Green Revolution saw the introduction of
high yield seeds and improved agricultural techniques that resulted in
a near doubling of cereal grain production per acre over 20 years. But
more recently, food production has not kept pace with population
increases. By 2050, it is projected that population growth will require
another doubling of food production. Unless much greater effort is
devoted to this problem, the world is likely to experience more
frequent and intense food crises that increase migration, stimulate
conflicts and intensify pandemics.
Moreover, the task of doubling food production is likely to be
complicated by the effects of climate change. The important report by
Sir Nicolas Stern estimated that a 2 degree celsius increase in global
temperature will cut agricultural yields in Africa by as much as 35
percent. Thus, farmers around the world will be asked to meet the
demands of global demographic expansion, even as they may be contending
with a degrading agricultural environment that significantly depresses
yields in some regions.
Increasing acreage under production will not satisfy the growth in
food demand, and these steps come with serious environmental and
national security costs. We need a second green revolution that will
benefit developed and developing nations alike.
Recent studies have demonstrated that funds spent in agriculture can
be up to twice as beneficial to economic growth as spending in other
areas. It seems, therefore, that our overall foreign aid strategy would
benefit from restoring agriculture programs to their former prominence.
The bill increases funding for these programs in the first year by $750
million. The increase would reach $2.5 billion in year five. Because
those who subsist on less than $1 a day spend at least half their
incomes on food, according to the International Food Policy Research
Institute, the bill highlights the need to focus on those living in
extreme poverty.
In thinking about how to approach agricultural productivity, we tried
to draw from the experience of U.S. land grant colleges and the
contributions they have made to U.S. agriculture. The bill seeks to
strengthen institutions of higher education in the areas of agriculture
sciences, research and extension programs. Investments in human capital
and institutional capacity are important to developing a robust
agricultural sector.
Universities and research centers can play an important role in
achieving technological advances that are appropriate to local
conditions. As such, the bill calls for increasing collaborative
research on the full range of biotechnological advances including
genetically modified technologies.
I hope that our bill will begin a productive dialogue on how our
government can be a more effective partner with NGOs and private actors
in promoting food security. There is no good reason why nearly a
billion people should be food insecure or that the world should have to
endure the social upheaval and risks of conflict that this insecurity
causes.
I look forward to working with colleagues to improve the U.S. and
global efforts to alleviate food insecurity and advance agricultural
knowledge and technology worldwide.
______
By Mr. AKAKA (for himself, Mr. Lautenberg, Mrs. McCaskill, Mr.
Sanders, Mr. Wyden, Mr. Carper, and Mr. Durbin):
S. 385. A bill to reaffirm and clarify the authority of the
Comptroller General to audit and evaluate the programs, activities, and
financial transactions of the intelligence community, and for other
purposes; to the Select Committee on Intelligence.
Mr. AKAKA. Mr. President, I rise today to introduce the Intelligence
Community Audit Act of 2009, with Senators Carper, Durbin, Lautenberg,
McCaskill, Sanders, and Wyden. This legislation reaffirms and clarifies
the authority of the Comptroller General of the United States, as head
of the Government Accountability Office, GAO, to audit and evaluate the
programs and activities of the Intelligence Community, IC.
Our bill is not new. I have introduced similar bills twice before.
But today, as I reintroduce this bill, I share with many of my
colleagues a renewed commitment to accountability. This legislation
would be an important step in that direction. GAO has well-established
expertise that should be leveraged to improve the performance of the
Intelligence Community. In particular, GAO could provide much needed
guidance to the IC related to human capital, financial management,
information sharing, strategic planning, information technology, and
other areas of management and administration. By employing GAO's
expertise to improve IC management and operations while carefully
protecting sensitive information, this bill would reinforce the
Intelligence Community's ability to meet its mission.
The Intelligence Community has faced greater demands and increased
responsibilities over the past few years. It is Congress's
responsibility to ensure that the IC carries out its critical functions
effectively and consistent with congressional authorization. For too
long, GAO's expertise and ability to engage in constructive oversight
of the IC have been underutilized. This legislation would enhance, in a
complementary manner, rather than detract from the work of the
congressional intelligence committees. Dr. Marvin Ott, a former
professional staff member on the Senate Select Committee on
Intelligence, testified before my Subcommittee on Oversight of
Government Management in February 2008 that the growth in the
complexity, diversity, and size of the IC requires additional oversight
resources. GAO is in a position to help. According to then-Comptroller
General David Walker, who testified at the same hearing, GAO has the
expertise and cleared personnel to increase the management oversight of
the IC.
I also believe that safeguards need to be in effect to protect the
IC's most
[[Page S1681]]
sensitive information from unauthorized disclosure. Under this bill,
only the Senate Select Committee on Intelligence, the House Permanent
Select Committee on Intelligence, and the majority and the minority
leaders of the Senate and the House of Representatives would be able to
request reviews of intelligence sources and methods or covert actions.
Results of an audit of this nature would be restricted to the original
requester, the Director of National Intelligence, and the head of the
relevant IC element. Employees of the GAO participating in these audits
would be subject to the same penalties for unauthorized disclosure or
use of sensitive information as their counterparts in the IC. There are
additional mechanisms in place to keep this information secure.
Congress and GAO have a crucial role in ensuring that the IC elements
are fulfilling their responsibilities of protecting this country. By
removing the barrier to more comprehensive oversight, this bill will
help improve our national security.
Mr. Presdient, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 385
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 ``Intelligence Community Audit
Act of 2009''.
SEC. 2. COMPTROLLER GENERAL AUDITS AND EVALUATIONS OF
ACTIVITIES OF ELEMENTS OF THE INTELLIGENCE
COMMUNITY.
(a) Reaffirmation and Clarification of Authority; Audits of
Intelligence Community Activities.--Chapter 35 of title 31,
United States Code, is amended by inserting after section
3523 the following:
``Sec. 3523a. Audits of intelligence community; audits and
requesters
``(a) In this section, the term `element of the
intelligence community' means an element of the intelligence
community specified in or designated under section 3(4) of
the National Security Act of 1947 (50 U.S.C. 401a(4)).
``(b) Congress finds that--
``(1) the authority of the Comptroller General to perform
audits and evaluations of financial transactions, programs,
and activities of elements of the intelligence community
under sections 712, 717, 3523, and 3524, and to obtain access
to records for purposes of such audits and evaluations under
section 716, is reaffirmed for matters referred to in
paragraph (2); and
``(2) such audits and evaluations may be requested by any
committee of jurisdiction (including the Committee on
Homeland Security and the Committee on the Judiciary of the
House of Representatives and the Committee on Homeland
Security and Governmental Affairs and the Committee on the
Judiciary of the Senate), and may include matters relating to
the management and administration of elements of the
intelligence community in areas such as strategic planning,
financial management, information technology, human capital,
knowledge management, and information sharing (including
information sharing by and with the Department of Homeland
Security and the Department of Justice).
``(c)(1) The Comptroller General may conduct an audit or
evaluation of intelligence sources and methods or covert
actions only upon request of the Select Committee on
Intelligence of the Senate or the Permanent Select Committee
on Intelligence of the House of Representatives, or the
majority or the minority leader of the Senate or the House of
Representatives.
``(2)(A) Whenever the Comptroller General conducts an audit
or evaluation under paragraph (1), the Comptroller General
shall provide the results of such audit or evaluation only to
the original requestor, the Director of National
Intelligence, and the head of the relevant element of the
intelligence community.
``(B) The Comptroller General may only provide information
obtained in the course of an audit or evaluation under
paragraph (1) to the original requestor, the Director of
National Intelligence, and the head of the relevant element
of the intelligence community.
``(3)(A) Notwithstanding any other provision of law, the
Comptroller General may inspect records of any element of the
intelligence community relating to intelligence sources and
methods, or covert actions in order to conduct audits and
evaluations under paragraph (1).
``(B) If in the conduct of an audit or evaluation under
paragraph (1), an agency record is not made available to the
Comptroller General in accordance with section 716, the
Comptroller General shall consult with the original requestor
before filing a report under subsection (b)(1) of such
section.
``(4)(A) The Comptroller General shall maintain the same
level of confidentiality for a record made available for
conducting an audit under paragraph (1) as is required of the
head of the element of the intelligence community from which
it is obtained. Officers and employees of the Government
Accountability Office are subject to the same statutory
penalties for unauthorized disclosure or use as officers or
employees of the intelligence community element that provided
the Comptroller General or officers and employees of the
Government Accountability Office with access to such records.
``(B) All workpapers of the Comptroller General and all
records and property of any element of the intelligence
community that the Comptroller General uses during an audit
or evaluation under paragraph (1) shall remain in facilities
provided by that element of the intelligence community.
Elements of the intelligence community shall give the
Comptroller General suitable and secure offices and
furniture, telephones, and access to copying facilities, for
purposes of audits and evaluations under paragraph (1).
``(C) After consultation with the Select Committee on
Intelligence of the Senate and with the Permanent Select
Committee on Intelligence of the House of Representatives,
the Comptroller General shall establish procedures to protect
from unauthorized disclosure all classified and other
sensitive information furnished to the Comptroller General or
any representative of the Comptroller General for conducting
an audit or evaluation under paragraph (1).
``(D) Before initiating an audit or evaluation under
paragraph (1), the Comptroller General shall provide the
Director of National Intelligence and the head of the
relevant element with the name of each officer and employee
of the Government Accountability Office who has obtained
appropriate security clearance and to whom, upon proper
identification, records, and information of the element of
the intelligence community shall be made available in
conducting the audit or evaluation.
``(d) Elements of the intelligence community shall
cooperate fully with the Comptroller General and provide
timely responses to Comptroller General requests for
documentation and information.
``(e) With the exception of the types of audits and
evaluations specified in subsection (c)(1), nothing in this
section or any other provision of law shall be construed as
restricting or limiting the authority of the Comptroller
General to audit and evaluate, or obtain access to the
records of, elements of the intelligence community absent
specific statutory language restricting or limiting such
audits, evaluations, or access to records.''.
(b) Technical and Conforming Amendment.--The table of
sections for chapter 35 of title 31, United States Code, is
amended by inserting after the item relating to section 3523
the following:
``3523a. Audits of intelligence community; audits and requesters.''.
______
By Mr. LEAHY (for himself, Mr. Grassley, and Mr. Kaufman):
S. 386. A bill to improve enforcement of mortgage fraud, securities
fraud, financial institution fraud, and other frauds related to federal
assistance and relief programs, for the recovery of funds lost to these
frauds, and for other purposes; to the Committee on the Judiciary.
Mr. LEAHY. Mr. President, today, I am pleased to introduce with
Senator Grassley the Fraud Enforcement and Recovery Act, FERA, of 2009,
a bipartisan bill that will reinvigorate our Nation's capacity to
investigate and prosecute the kinds of financial frauds that have so
severely undermined our economy and hurt so many hard working people in
this country.
Our Nation is in the midst of its most serious economic crisis since
the Great Depression. With each passing week, tens of thousands more
Americans lose their jobs to layoffs, and many thousands have already
lost their homes to foreclosure. We learn more and more each day about
the causes of this debacle, and it is now clear that unscrupulous
mortgage brokers and Wall Street financiers were among the principle
contributors of this economic collapse.
As the crisis worsened last fall, I called upon Federal law
enforcement to track down and punish those whose conduct went beyond
mere negligence or incompetence and who were directly responsible for
the corporate and mortgage frauds that helped make the economic
downturn far worse than anyone predicted. With the new tools and
resources in this bill, it will be easier to ensure that all of those
responsible for these financial crimes are held accountable.
While the full scope of the fraud that triggered this economic crisis
is still unknown, we have already learned a great deal about what went
wrong. As banks and private mortgage companies relaxed their standards
for loans, approving ever riskier mortgages with less and less due
diligence, they created an environment that invited fraud. Private
mortgage brokers and
[[Page S1682]]
lending businesses came to dominate the home housing market, and these
companies were not subject to the kind of banking oversight and
internal regulations that had traditionally helped to prevent fraud. We
are now seeing the results of this lax supervision and accountability.
In the last six years, suspicious activity reports alleging mortgage
fraud that have been filed with the Treasury Department have increased
more than tenfold, from about 5,400 in 2002 to more than 60,000 in
2008. In the last three years, the number of criminal mortgage fraud
investigations opened by the FBI has more than doubled, and the FBI
anticipates a new wave of cases that may double that number yet again.
Despite the increase, the FBI currently has fewer than 250 special
agents nationwide assigned to financial fraud cases. At current levels,
they cannot even begin to investigate the more than 5,000 fraud
allegations they receive from the Treasury Department each month.
Of course, the problem is not limited to mortgage frauds. As is so
common in today's financial markets, home mortgages were packaged
together and turned into securities that were bought and sold in
largely unregulated markets on Wall Street. Here again, the environment
invited fraud. As the value of the mortgages started to decline with
falling housing prices, Wall Street financiers began to see these
mortgage-backed securities unravel. Unfortunately, some were not honest
about these securities, leading to even more fraud, and victimizing
investors nationwide.
All of this fraud has contributed to an unprecedented collapse in the
mortgage-backed securities market. In the past year, banks and
financial institutions in the United States alone have suffered more
than $500 billion in losses associated with the sub-prime mortgage
industry. Some of our Nation's largest and most venerable financial
institutions collapsed as a result. The list of publicly-traded
companies that declared bankruptcy or have been taken over by the
Federal Government because of the mortgage-backed securities market
collapse include Fannie Mae, Freddie Mac, Bear Stearns, IndyMac, and
Lehman Brothers.
As we take steps to make sure this kind of collapse cannot happen
again, we must reinvigorate our anti-fraud measures and give law
enforcement the tools and resources they need to root out fraud so that
it can never again place our financial system at risk. Taxpayers, who
bear the burden of this financial downturn, deserve to know that
government is doing all it can to hold responsible those who committed
fraud in the run-up to this collapse. This bill will do just that.
This bipartisan legislation begins by providing the resources needed
for law enforcement to uncover and go after these frauds. The bill
authorizes $155 million a year for hiring fraud prosecutors and
investigators at the Justice Department for fiscal years 2010 and 2011.
This includes $65 million a year for the FBI to bring on 190 additional
special agents and more than 200 professional staff and forensic
analysts to rebuild its ``white collar'' investigation program. With
this funding, the FBI can double the number of its mortgage fraud task
forces nationwide--from 26 to more than 50--that target fraud in the
hardest hit areas in our Nation. This also includes $50 million a year
for U.S. Attorneys' offices to staff those strike forces and $40
million for the criminal, civil, and tax divisions at the Justice
Department to provide special litigation and investigative support to
those efforts. The bill also authorizes $60 million a year for fiscal
years 2010 and 2011 for investigators and analysts at the U.S. Postal
Inspection Service and the Office of Inspector General for the Housing
and Urban Development Department to combat fraud against Federal
assistance programs and financial institutions.
Of course, the economic recovery legislation includes new
appropriations of $75 million for FBI salaries and $2 million for the
Inspector General for the Treasury Department, yet certainly far more
needs to be done to address the full scope of these enforcement issues
now and in the future.
The Fraud Enforcement and Recovery Act also makes a number of
straightforward, important improvements to fraud and money laundering
statutes to strengthen prosecutors' ability to combat this growing wave
of fraud. Specifically, the bill amends the definition of ``financial
institution'' in the criminal code in order to extend Federal fraud
laws to mortgage lending businesses that are not directly regulated or
insured by the Federal Government. These companies were responsible for
nearly half the residential mortgage market before the economic
collapse, yet they remain largely unregulated and outside the scope of
traditional Federal fraud statutes. This change will apply the Federal
fraud laws to private mortgage businesses like Countrywide Home Loans
and GMAC Mortgage, just as they apply to federally insured and
regulated banks.
The bill would also amend the major fraud statute to protect funds
expended under the Troubled Asset Relief Program and the economic
stimulus package, including any government purchases of preferred stock
in financial institutions. The U.S. Government has provided
extraordinary economic support to our banking system, and we need to
make sure that none of those funds are subject to fraud or abuse. This
change will give Federal prosecutors and investigators the explicit
authority they need to protect taxpayer funds.
The legislation would amend the Federal securities statute to cover
fraud schemes involving commodities futures and options, including
derivatives involving the mortgage-backed securities that caused such
damage to our banking system.
This bill will also strengthen one of the core offenses in so many
fraud cases--money laundering--which was significantly weakened by a
recent Supreme Court case. In United States v. Santos, the Supreme
Court misinterpreted the money laundering statutes, limiting their
scope to only the ``profits'' of crimes, rather than the ``proceeds''
of the offenses. The Court's mistaken decision was contrary to
Congressional intent and will lead to financial criminals escaping
culpability simply by claiming their illegal scams had not made a
profit. This erroneous decision must be corrected immediately, as
dozens of money laundering cases have already been dismissed.
Lastly, FERA improves one of the most potent civil tools we have for
rooting out waste and fraud in government--the False Claims Act. The
effectiveness of the False Claims Act has recently been undermined by
court decisions which limit the scope of the law and allow sub-
contractors paid with government money to escape responsibility for
proven frauds. The False Claims Act must quickly be corrected and
clarified in order to protect from fraud the Federal assistance and
relief funds expended in response to our current economic crisis.
The Federal Government has spent hundreds of billions of dollars to
stabilize our banking system, and Congress will soon spend even more to
restart our economic recovery. But to date, we have paid far too little
attention to investigating and prosecuting the mortgage and corporate
frauds that has so dramatically contributed to this economic collapse.
Congress should move quickly to pass this legislation so the American
taxpayers can be confident that those who are criminally responsible
for contributing to this economic disaster are caught and held fully
accountable and to ensure that the money we are now spending to restore
America is protected from fraud in the future.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 386
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 ``Fraud Enforcement and
Recovery Act of 2009'' or ``FERA''.
SEC. 2. AMENDMENTS TO IMPROVE MORTGAGE, SECURITIES, AND
FINANCIAL FRAUD RECOVERY AND ENFORCEMENT.
(a) Definition of Financial Institution Amended to Include
Mortgage Lending Business.--Section 20 of title 18, United
States Code, is amended--
(1) in paragraph (8), by striking ``or'' after the
semicolon;
(2) in paragraph (9), by striking the period and inserting
``; or''; and
[[Page S1683]]
(3) by inserting at the end the following:
``(10) a mortgage lending business (as defined in section
27 of this title) or any person or entity that makes in whole
or in part a federally-related mortgage loan as defined in 12
U.S.C. 2602(1).''.
(b) Mortgage Lending Business Defined.--
(1) In general.--Chapter 1 of title 18, United States Code,
is amended by inserting after section 26 the following:
``Sec. 27. Mortgage lending business defined
``In this title, the term `mortgage lending business' means
an organization which finances or refinances any debt secured
by an interest in real estate, including private mortgage
companies and any subsidiaries of such organizations, and
whose activities affect interstate or foreign commerce.''.
(2) Chapter analysis.--The chapter analysis for chapter 1
of title 18, United States Code, is amended by adding at the
end the following:
``27. Mortgage lending business defined.''.
(c) False Statements in Mortgage Applications Amended to
Include False Statements by Mortgage Brokers and Agents of
Mortgage Lending Businesses.--Section 1014 of title 18,
United States Code, is amended by--
(1) striking ``or'' after ``the International Banking Act
of 1978),''; and
(2) inserting after ``section 25(a) of the Federal Reserve
Act'' the following: ``or a mortgage lending business whose
activities affect interstate or foreign commerce, or any
person or entity that makes in whole or in part a federally-
related mortgage loan as defined in 12 U.S.C. 2602(1)''.
(d) Major Fraud Against the Government Amended to Include
Economic Relief and Troubled Asset Relief Program Funds.--
Section 1031(a) of title 18, United States Code, is amended
by--
(1) inserting after ``or promises, in'' the following:
``any grant, contract, subcontract, subsidy, loan, guarantee,
insurance or other form of Federal assistance, including
through the Troubled Assets Relief Program, an economic
stimulus, recovery or rescue plan provided by the Government,
or the Government's purchase of any preferred stock in a
company, or''; and
(2) striking ``the contract, subcontract'' and inserting
``such grant, contract, subcontract, subsidy, loan,
guarantee, insurance or other form of Federal assistance,''.
(e) Securities Fraud Amended to Include Fraud Involving
Options and Futures in Commodities.--
(1) In general.--Section 1348 of title 18, United States
Code, is amended--
(A) in the caption, by inserting ``and commodities'' after
``Securities'';
(B) by inserting ``any commodity for future delivery, or
any option on a commodity or a commodity for future delivery,
or'' after ``any person in connection with'' ; and
(C) by inserting ``any commodity for future delivery, or
any option on a commodity or a commodity for future delivery,
or'' after ``in connection with the purchase or sale of''.
(2) Chapter analysis.--The item for section 1348 in the
chapter analysis for chapter 63 of title 18, United States
Code, is amended by inserting ``and commodities'' after
``Securities''.
(f) Money Laundering Amended to Define Proceeds of
Specified Unlawful Activity.--Section 1956(c) of title 18,
United States Code, is amended--
(1) in paragraph (8), by striking the period and inserting
``; and''; and
(2) by inserting at the end the following:
``(9) the term `proceeds' means any property derived from
or obtained or retained, directly or indirectly, through the
commission of a specified unlawful activity, including the
gross receipts of such specified unlawful activity.''.
(g) Making the International Money Laundering Statute Apply
to Tax Evasion.--Section 1956(a)(2)(A) of title 18, United
States Code, is amended by--
(1) inserting ``(i)'' before ``with the intent to
promote''; and
(2) adding at the end the following:
``(ii) with the intent to engage in conduct constituting a
violation of section 7201 or 7206 of the Internal Revenue
Code of 1986; or''.
SEC. 3. ADDITIONAL FUNDING FOR INVESTIGATORS AND PROSECUTORS
FOR MORTGAGE FRAUD, SECURITIES FRAUD, AND OTHER
CASES INVOLVING FEDERAL ECONOMIC ASSISTANCE.
(a) In General.--
(1) Authorization.--There is authorized to be appropriated
to the Attorney General, to remain available until expended,
$155,000,000 for each of the fiscal years 2010 and 2011, for
the purposes of investigations, prosecutions, and civil
proceedings involving federal assistance programs and
financial institutions, including financial institutions to
which this Act and amendments made by this Act apply.
(2) Allocations.--With respect to fiscal years 2010 and
2011, the amount authorized to be appropriated under
paragraph (1) shall be allocated as follows:
(A) Federal Bureau of Investigation: $65,000,000.
(B) The offices of the United States Attorneys:
$50,000,000.
(C) The criminal division of the Department of Justice:
$20,000,000.
(D) The civil division of the Department of Justice:
$15,000,000.
(E) The tax division of the Department of Justice:
$5,000,000.
(b) Additional Appropriations for the Postal Inspection
Service.--There is authorized to be appropriated to the
Postal Inspection Service of the United States Postal
Service, $30,000,000 for each of the fiscal years 2010 and
2011 for investigations involving federal assistance programs
and financial institutions, including financial institutions
to which this Act and amendments made by this Act apply.
(c) Additional Appropriations for the Inspector General for
the Housing and Urban Development Department.--There is
authorized to be appropriated to the Inspector General of the
Department of Housing and Urban Development, $30,000,000 for
each of the fiscal years 2010 and 2011 for investigations
involving Federal assistance programs and financial
institutions, including financial institutions to which this
Act and amendments made by this Act apply.
(d) Use of Funds.--The funds authorized to be appropriated
under subsections (a), (b), and (c), shall be limited to
cover the costs of each listed agency or department for
investigating possible criminal, civil, or administrative
violations and for prosecuting criminal, civil, or
administrative proceedings involving financial crimes and
crimes against Federal assistance programs, including
mortgage fraud, securities fraud, financial institution
fraud, and other frauds related to Federal assistance and
relief programs
(e) Report to Congress.--Following the final expenditure of
all funds appropriated under this section that were
authorized by subsections (a), (b), and (c), the Attorney
General, in consultation with the United States Postal
Inspection Service and the Inspector General for the
Department of Housing and Urban Development, shall submit a
joint report to Congress identifying--
(1) the amounts expended under subsections (a), (b), and
(c) and a certification of compliance with the requirements
listed in subsection (d); and
(2) the amounts recovered as a result of criminal or civil
restitution, fines, penalties, and other monetary recoveries
resulting from criminal, civil, or administrative proceedings
and settlements undertaken with funds authorized by this Act.
SEC. 4. CLARIFICATIONS TO THE FALSE CLAIMS ACT TO REFLECT THE
ORIGINAL INTENT OF THE LAW.
(a) Clarification of the False Claims Act.--Section 3729 of
title 31, United States Code, is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Liability for Certain Acts.--
``(1) In general.--Subject to paragraph (2), any person
who--
``(A) knowingly presents, or causes to be presented, a
false or fraudulent claim for payment or approval;
``(B) knowingly makes, uses, or causes to be made or used,
a false record or statement to get a false or fraudulent
claim paid or approved;
``(C) conspires to commit a violation of subparagraph (A),
(B), (D), (E), (F), or (G) or otherwise to get a false or
fraudulent claim paid or approved;
``(D) has possession, custody, or control of property or
money used, or to be used, by the Government and knowingly
delivers, or causes to be delivered, less than all of that
money or property;
``(E) is authorized to make or deliver a document
certifying receipt of property used, or to be used, by the
Government and, intending to defraud the Government, makes or
delivers the receipt without completely knowing that the
information on the receipt is true;
``(F) knowingly buys, or receives as a pledge of an
obligation or debt, public property from an officer or
employee of the Government, or a member of the Armed Forces,
who lawfully may not sell or pledge property; or
``(G) knowingly makes, uses, or causes to be made or used,
a false record or statement to conceal, avoid, or decrease an
obligation to pay or transmit money or property to the
Government, or knowingly conceals, avoids, or decreases an
obligation to pay or transmit money or property to the
Government,
is liable to the United States Government for a civil penalty
of not less than $5,000 and not more than $10,000, as
adjusted by the Federal Civil Penalties Inflation Adjustment
Act of 1990 (28 U.S.C. 2461 note; Public Law 104-410), plus 3
times the amount of damages which the Government sustains
because of the act of that person.
``(2) Reduced damages.--If the court finds that--
``(A) the person committing the violation of this
subsection furnished officials of the United States
responsible for investigating false claims violations with
all information known to such person about the violation
within 30 days after the date on which the defendant first
obtained the information;
``(B) such person fully cooperated with any Government
investigation of such violation; and
``(C) at the time such person furnished the United States
with the information about the violation, no criminal
prosecution, civil action, or administrative action had
commenced under this title with respect to such violation,
and the person did not have actual knowledge of the existence
of an investigation into such violation,
the court may assess not less than 2 times the amount of
damages which the Government sustains because of the act of
that person.
[[Page S1684]]
``(3) Costs of civil actions.--A person violating this
subsection shall also be liable to the United States
Government for the costs of a civil action brought to recover
any such penalty or damages.'';
(2) by striking subsections (b) and (c) and inserting the
following:
``(b) Definitions.--For purposes of this section--
``(1) the terms `knowing' and `knowingly' mean that a
person, with respect to information--
``(A) has actual knowledge of the information;
``(B) acts in deliberate ignorance of the truth or falsity
of the information; or
``(C) acts in reckless disregard of the truth or falsity of
the information, and no proof of specific intent to defraud
is required;
``(2) the term `claim'--
``(A) means any request or demand, whether under a contract
or otherwise, for money or property and whether or not the
United States has title to the money or property, that--
``(i) is presented to an officer, employee, or agent of the
United States; or
``(ii) is made to a contractor, grantee, or other recipient
if the United States Government--
``(I) provides or has provided any portion of the money or
property requested or demanded; or
``(II) will reimburse such contractor, grantee, or other
recipient for any portion of the money or property which is
requested or demanded; and
``(B) does not include requests or demands for money or
property that the Government has paid to an individual as
compensation for Federal employment or as an income subsidy
with no restrictions on that individual's use of the money or
property; and
``(3) the term `obligation' means a fixed duty, or a
contingent duty arising from an express or implied
contractual, quasi-contractual, grantor-grantee, licensor-
licensee, fee-based, or similar relationship, and the
retention of any overpayment.'';
(3) by redesignating subsections (d) and (e) as subsections
(c) and (d), respectively; and
(4) in subsection (c), as redesignated, by striking
``subparagraphs (A) through (C) of subsection (a)'' and
inserting ``subsection (a)(2)''.
Mr. KAUFMAN. Mr. President, as we struggle to restore growth and hope
to our economy, we must continue to repair the weaknesses in our legal
and regulatory system weaknesses that contributed to the crisis we face
today. A lot of what has happened to our economy was the result of
greed and incompetence. But too much of it can be traced to fraud,
insider deals, and other acts that are illegal, and to actions that
should be illegal.
That is why I am joining today with Senator Leahy and Senator
Grassley to introduce the Fraud Enforcement and Recovery Act of 2009.
As we survey the damage to every aspect of our economy from
manufacturing to retail, from construction to services we can trace the
origins of this disaster to the real estate market and the financing
that drove a bubble that finally burst.
We now know that behind the explosion in housing values, and the
explosion in the secondary market for mortgages, were
misrepresentations, false reporting, insider deals, and other forms of
fraud. Many of these actions clearly broke existing financial
regulations and consumer protection laws. Others took place in so-
called ``shadow'' financial markets that are outside of our existing
laws.
The legislation we are introducing today will provide the Justice
Department with the resources it needs to prosecute the crimes that
played a part in precipitating the crisis we are now facing. The FBI
has been overwhelmed by reports of mortgage fraud, now running at over
ten times the pace of a few years ago.
The bill authorizes $155 million a year for hiring fraud prosecutors
and investigators at the Justice Department for 2010 and 2011,
including $65 million a year for 190 additional FBI special agents and
more than 200 professionals to fight white collar crime.
In addition, this bill exposes some of the ``shadow'' financial
systems to the fraud laws that apply today in the better regulated
sectors of our banking industry. It also extends antifraud protections
to the money we are sending out under the Troubled Asset Relief Program
and the economic stimulus package. It also amends Federal securities
laws to cover fraud schemes involving commodities futures and options,
including so-called derivatives involving the mortgage-backed
securities that caused such damage to our banking system.
Further, this legislation will strengthen one of the most effective
tools to combat waste and fraud in government the False Claims Act. We
will need these improvements so that we can protect the taxpayer
dollars we are using to respond to the economic crisis.
I hope we can move this legislation quickly. It moves against the
root causes of this economic crisis and improves protections for the
taxpayer funds we are committing to fight it.
______
By Mr. DURBIN:
S. 387. A bill to designate the United States courthouse located at
211 South Court Street, Rockford, Illinois, as the ``Stanley J.
Roszkowski United States Courthouse''; to the Committee on Environment
and Public Works.
Mr. DURBIN. Mr. President, today I am pleased to introduce
legislation to designate the United States Courthouse at 211 South
Court Street, Rockford, IL, as the ``Stanley J. Roszkowski United
States Courthouse.''
Stanley Roszkowski was raised in Royalton in southern Illinois, one
of fifteen children. During World War II, he volunteered as a nose
gunner on a B26 bomber, flying over 25 missions in Italy and Germany.
After the war he went on to earn his B.A. from the University of
Illinois and then his law degree, working as an appliance salesman to
pay for school and meeting his wife Catherine along the way.
When he moved to Rockford, he opened up a successful law practice and
became involved in his community. He gave up this practice when
President Carter appointed him to the bench, serving for the next 20
years as a Federal Judge in the Northern District of Illinois. He
became known for running a business-like but relaxed courtroom, and was
praised by his peers for being extremely knowledgeable, fair and
objective, and a gentleman at all times, with a wide breadth of
experience and an uncommon sense of decency. As one lawyer put it:
``You couldn't ask for a better trial judge.''
Nobody worked harder than Stanley Roszkowski to make the United
States Courthouse in Rockford a reality. He spent 6 years commuting
between Rockford and Chicago building up the case load at Rockford and
becoming Rockford's first full time Federal judge. As far back as 1992,
he was writing countless letters and paying numerous visits to federal
officials in Washington, DC, to make his case. It took many years but
he never gave up on his belief that if the Federal courts had a
physical presence in Rockford, it would be welcomed and frequently used
by the lawyers there. He turned out to be right, and I am pleased that
Representative Manzullo and I could work together to help secure the
funding for it.
Whether in a bomber or on the bench, Stanley Roszkowski has dedicated
his life to serving his country. I can think of no better way to honor
his commitment than by naming this Federal courthouse, which he worked
so tirelessly to see built, after him. I hope my colleagues will join
me in enacting this tribute to him.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
placed in the Record, as follows:
S. 387
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. STANLEY J. ROSZKOWSKI UNITED STATES COURTHOUSE.
(a) Designation.--The United States courthouse, located at
211 South Court Street, Rockford, Illinois, shall be known
and designated as the ``Stanley J. Roszkowski United States
Courthouse''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
United States courthouse referred to in subsection (a) shall
be deemed to be a reference to the ``Stanley J. Roszkowski
United States Courthouse''.
______
By Ms. MIKULSKI (for herself, Mr. Specter, Mr. Levin, Mr. Crapo,
Mr. Bond, Mr. Lieberman, Mr. Reed, Mr. Kerry, Mr. Enzi, Ms.
Collins, Mr. Bennett, Mr. Coburn, Mr. Whitehouse, Mr. Burr, Ms.
Snowe, Mr. Leahy, Mr. Carper, Mr. Cardin, Mr. Hatch, and Mr.
Barrasso):
S. 388. A bill to extend the termination date for the exemption of
returning workers from the numerical limitations for temporary workers;
to the Committee on the Judiciary.
[[Page S1685]]
Ms. MIKULSKI. Mr. President, today I rise to introduce a bill that is
needed by small and seasonal businesses all over the nation. In 2005 I
introduced and the Senate overwhelmingly passed legislation to keep
these small and seasonal businesses alive. For many years they have
relied on the H-2B visa program to meet these needs, but this year they
can't get the temporary labor they need because they have been shut out
of the H-2B visa program. That program lets them hire temporary foreign
workers when no American workers are available.
So today, I join with my colleague Senator Specter to introduce
legislation that provides a quick and temporary fix to the H-2B
problem. The Save our Small and Seasonal Businesses Act of 2009 will
help these employers by extending the H-2B returning worker exemption
for three years. It does not raise the cap and keeps the limit at
66,000. I urge my colleagues to work with us to pass this legislation
quickly to save these businesses and the thousands of American jobs
they provide.
Many in this body know about the H-2B crisis--a real crisis to
thousands of small and seasonal businesses who face a shortage of
workers as they approach their seasons. These small businesses count on
the H-2B visa program to keep their businesses afloat. But this year,
because the cap was reached so early in the year, many of these
businesses will be unable to get the seasonal workers that they need to
survive.
Hitting the cap so early will have a great impact on Maryland. We
have a lot of summer seasonal businesses in Maryland on the Eastern
Shore, in Ocean City or working the Chesapeake Bay. Many of our
businesses use the program year after year. They hire all the American
workers they can find, but they need additional help to meet seasonal
demands. Because the cap will be reached so early this year summer
employers face a disadvantage. They can't use the program, so they
can't meet their seasonal needs and many will be forced to limit
services, lay-off permanent U.S. workers or, worse yet, close their
doors.
These are family businesses and small businesses in small communities
in Maryland. If the business suffers the whole community suffers. For
seafood companies like J.M. Clayton, what they do is more than a
business, it's a way of life. Started over a century ago and run by the
great grandsons of the founder, J.M. Clayton works the waters of the
Chesapeake Bay, supplying crabs, crabmeat and other seafood, including
Maryland's famous oysters, to restaurants, markets, and wholesalers all
over the nation. It is the oldest working crab processing plant in the
world and by employing 70 H-2B workers the company can retain over 50
full time American workers.
But its not just seafood companies that have a long history on the
Eastern Shore. It's companies like S.E.W. Friel Cannery, which began
its business over 100 years ago when there were 300 canneries on the
Eastern Shore. But now those others are gone and Friel's is the last
corn cannery left. Ten years ago, when the cannery could not find local
workers, it turned to the new H-2B visa Program. It has used the
program every year since, and many workers are repeat users who come
each year and then go home after the season. What's important is that
having this help each year has not only allowed the company to maintain
its American workforce, but it has paved the way for local workers to
return to the cannery.
Now these employers can't just turn to the H-2B program whenever they
want seasonal workers. First, employers must try to vigorously recruit
U.S. workers. These businesses try to hire American workers--they would
love to hire American workers. In fact, the H-2B program requires these
businesses to prove that they have vigorously tried to recruit American
workers. They have to advertise for American workers and give American
workers a chance to apply. They have to prove to the Department of
Labor that there are no U.S. workers available. Only after that are
they allowed to fill seasonal vacancies with H-2B visa workers. The
workers that they bring in often participate in the H-2B program year
after year. They often work for the same companies. But they cannot and
do not stay in the U.S. They return to their home countries, to their
families and their U.S. employer must go through the whole visa process
again the following year to get them back. That means an employer must
prove again to the Department of Labor that they cannot get U.S.
workers.
This legislative fix keeps that visa process in place. It's a short-
term legislative fix to solve the immediate H-2B visa shortage. It does
not take the place of comprehensive immigration reform.
This legislation is a temporary 3 year fix. It exempts returning
seasonal workers from the cap. These are workers who have already
successfully participated in the H-2B visa Program. They received a
visa in one of the past 3 years and have returned home to their
families after their seasonal employment with a U.S. company.
Everyone must still play by the rules. Employers must go through the
whole visa process, prove they need the seasonal help and only after
that are returning employees exempt from the cap. Employees must be
those who have left the U.S. and are requesting a new H-2B visa to come
back for another season. This new system rewards those who have played
by the rules, worked hard and successfully participated in the program.
The bill gives a helping hand to businesses by allowing them to retain
workers who they have already trained to do their seasonal jobs.
This is a quick and simple fix. It lasts three years. And it does not
get in the way of comprehensive immigration reform.
I worked with my colleagues to get a bill with strong bi-partisan
support. A bill that would work.
This bill is realistic. It provides a temporary solution because
immediate action is needed to help these small and seasonal businesses
stay in business. Yes--we need to help them now. Their seasons start
soon. If they don't get seasonal workers this year, there may not be
any businesses around next year to help.
Every member of the Senate who has heard from their constituents--
whether they are seafood processors, landscapers, resorts, timber
companies, fisheries, pool companies or carnivals--knows the urgency in
their voices, knows the immediacy of the problem and knows that the
Congress must act now to save these businesses. I urge my colleagues to
join this effort, support the Save our Small and Seasonal Businesses
Act, and push this Congress to fix the problem today.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 388
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 ``Save Our Small and Seasonal
Businesses Act of 2009''.
SEC. 2. EXTENSION OF RETURNING WORKER EXEMPTION TO H-2B
NUMERICAL LIMITATION.
(a) In General.--Section 214(g)(9)(A) of the Immigration
and Nationality Act (8 U.S.C. 1184(g)(9)(A) is amended to
read as follows:
``(A) Subject to subparagraphs (B) and (C), an alien who
has already been counted toward the numerical limitation
under paragraph (1)(B) during any 1 of the 3 fiscal years
immediately prior to the fiscal year of the approved start
date of a petition for a nonimmigrant worker described in
section 101(a)(15)(H)(ii)(b) shall not again be counted
toward such limitation for the fiscal year for which the
petition is approved. Such an alien shall be considered a
returning worker.''.
(b) Effective Date; 3-Year Limitation; Sunset Provision.--
The amendment made by subsection (a) shall--
(1) take effect as if enacted on December 1, 2008;
(2) apply only to petitions with an approved start date in
fiscal year 2009, 2010, or 2011; and
(3) terminate on the date that is 3 years after the date of
the enactment of this Act.
______
By Mr. BENNETT:
S. 389. A bill to establish a conditional stay of the ban on lead in
children's products, and for `other purposes; to the Committee on
Commerce, Science, and Transportation.
Mr. BENNETT. Mr. President, I rise to introduce important legislation
today.
Last year, this body passed the Consumer Product Safety Improvement
Act. Overall, I think this was a good bill, and will contribute to
improving our children's safety.
[[Page S1686]]
However, as is the case sometimes, we are now learning about some of
the unintended consequences arising from that legislation. I've heard
from Utahns who are very concerned that parts of the act are going to
put them out of business and harm those that benefit from their
products and services.
Next week, as part of the Consumer Product Safety Improvement Act, a
new lead standard for products goes into effect. The act makes it
illegal to sell products that contain more lead than the new standard
allows--it classifies those products as banned hazardous substances.
The new standard should help protect our children from the harmful
effects of lead poisoning.
The act also requires manufacturers to use accredited third-party
laboratories to certify the safety of their products made for children
ages 12 and under. If you don't test the product, you can't sell it.
This makes perfect sense.
But here's the problem: while resellers of those products are exempt
from the testing requirements of the legislation, they are not exempt
from the penalties associated with violating the act. Violations can
result in criminal punishment of up to $250,000 and 5 years in prison,
and civil liability up to $15 million. All of this is scheduled to go
into effect on February 10th of this year--less than one week from
today.
However, the Consumer Product Safety Commission understands there are
problems associated with the act. I met with Acting Commissioner Nancy
Nord last Friday about these issues. We discussed both the act's
potential problems and the importance of maintaining public safety.
That same day, her organization postponed the testing and certification
requirements of the act for one year. They needed additional time to
finalize the rules, and issue clearer guidance on how businesses should
comply with the law. Congress gave them the discretion to do this.
However, and this is the problem, the Consumer Product Safety
Commission doesn't have the discretion to postpone the actual
standard--how much lead is legally allowable in certain products. So
you have a situation where the agency is not enforcing the standard by
requiring testing and certification while at the same time, the
companies that have products in their inventory that exceed the lead
standard are subject to both criminal and civil penalties. As one who
ran his own business, I can tell you that this makes no sense.
The legislation that I introduce here today will remedy this seeming
contradiction. My legislation gives the commission the authority, if it
determines it's necessary, to also delay implementing the new lead
standards until they have finalized the rules and begin to enforce the
law. If the commission were to exercise those authorities, it would
give both Congress and the Consumer Product Safety Commission enough
time to really evaluate the effects of this legislation, particularly
on our small businesses and thrift enterprises, and implement something
that actually makes sense.
You must understand that I am not opposed to the new lead standards
or keeping our children safe. My bill is not mandating a year delay;
it's simply giving the commission that authority. In the meantime, we
must craft some sort of compromise before this well-intended law wreaks
havoc upon many of our small businesses and those in the thrift
industry that serve the lower income in our country.
Let me explain some of the problems associated with the CPSIA.
Some of my constituents who are concerned about this bill are running
small businesses out of their homes to supplement their family income
during these difficult economic times. One constituent, Katie Erwin,
recently wrote to my office to tell me her personal experience. She
designs and makes baby dresses that are sold on the Internet. Her
dresses require the use of many fabrics, buttons, snaps, and elastic
materials. She has done her research into what her business will have
to do after the CPSIA becomes law. Even though she uses only materials
that have been proven to have safe lead content, she has to have her
end product tested. Not just each dress, but each element of each
dress. At $75 per test, one dress could end up costing $750. She told
us that, in order to be compliant, the dresses would be so expensive
that she'd never make a profit. And that is if she could even sell the
more expensive dresses. Other small and home-based businesses tell the
same story. Many fear going out of business, and don't know how to cope
with the new enforcement.
The Ogden Rescue Mission in northern Utah has two thrift stores that
have been around for decades selling used goods. The owner has made it
clear that he will stop selling any children's products on February 10
because he doesn't want to break the law or be held liable for
inadvertently selling a now-illegal product. Companies risk losing
their insurance if they accidentally sell an unsafe product. With the
new standards required by the Consumer Product Safety Improvement Act,
the chance of that happening is almost certain. I have to believe that
larger thrift stores like Deseret Industries, the Salvation Army, and
Goodwill Industries will all have similar concerns once the Act is
fully understood and implemented.
Remember, these companies are going to be subject to criminal
penalties and civilly liable for products they sell that exceed the
standard, including the resellers whom the law exempts from the testing
and certification requirements. Again, five years in prison, $250,000
in criminal penalties and $15 million in civil penalties.
At a time when we are debating how to stimulate the economy and keep
businesses afloat, we should not overlook this problem that has the
potential to cost our economy millions of dollars in litigation costs
and many, many jobs if it is not implemented in the right way. During
an economic downturn like the one we are experiencing, thrift stores
and others that sell used goods are going to be more important than
ever. Let's make sure they are able to serve our communities by
providing the commission with the tools necessary to work out the
problems associated with implementing the CPSIA.
I hope the Senate expeditiously considers my legislation. I think
this approach makes sense, and will ultimately help the commission to
better implement this law. I understand others may have different
approaches to resolving the same problem, and I would invite a
discussion of this issue during the coming weeks with my colleagues so
we can fix it quickly before we do irreparable damage to businesses
across the country.
____________________