[Congressional Record Volume 162, Number 177 (Thursday, December 8, 2016)]
[Senate]
[Pages S6924-S6927]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SCHATZ (for himself, Mr. Brown, Mr. Merkley, Ms. Warren, 
        Mr. Franken, Mr. Peters, Mr. Tester, and Mr. Heinrich):
  S. 3525. A bill to enhance the security operations of the 
Transportation Security Administration and the stability of the 
transportation security workforce by applying a unified personnel 
system under title 5, United States Code, to employees of the 
Transportation Security Administration who are responsible for 
screening passengers and property, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.
  Mr. SCHATZ. Mr. President, the legislation I will introduce shortly 
focuses on a small sector of the Federal workforce. But there is a 
broader message that I would like to deliver as well today. There is 
something I want to say to all Federal workers: I have got your back.
  We have all been hearing statements by politicians in the halls of 
Congress, in the news, and even on Twitter threatening to gut the 
Federal workforce, cut earned benefits, reduce paychecks, make it 
easier to fire people at will, and other destructive and misguided 
actions.
  To Federal employees, these statements must be particularly hurtful. 
Some may feel anxious and disheartened. But I want to assure all 
Federal workers that I am on your side. Your contributions are integral 
to our Nation. You live and work in small towns, in urban centers, and 
around the country. You do crucial work for our government and for the 
American people.
  As the capital of the United States, Washington, D.C., is often 
mistaken as the primary location for Federal workers. But this is 
patently false. Eighty-five per cent of Federal workers actually live 
and work outside of the D.C. area. Federal workers live and work in 
every town, city, and State. In many places, the Federal Government is 
the main employer--and those jobs are vital to the local economy. The 
Federal workforce represents the diversity of our country.
  Since 1960, the GDP has multiplied five times, new agencies have been 
added to the government, and the responsibilities of Federal workers 
have grown exponentially, and yet hiring has stagnated. The civilian 
workforce, not including Postal Service employees, is roughly the same 
size it was during the Kennedy administration, at around 2 million.
  Pledges from short-sighted politicians about privatizing government 
services and programs like Medicare and Social Security would cause 
many Federal jobs to vanish and impair access to Federal services. This 
would put real Americans out of work and cause measurable economic 
hardship to local and State economies.
  In addition, the government is the number one employer of veterans, 
particularly disabled veterans who have trouble finding jobs in the 
private sector. Freezing hiring or cutting the workforce means fewer 
opportunities for America's heroes.
  That is why I want the next administration to understand the 
importance of Federal workers. Their jobs cannot be outsourced, 
replaced by machines, cut, or consolidated. I would urge the next 
administration to stop using our Federal workforce for purposes of 
partisan rhetoric and political games.
  I want to let Federal workers know that I will continue to work in 
the Senate to fight efforts to undermine you and the work that you do. 
I will look for opportunities to improve the Federal workplace and 
strengthen the Federal workforce. So keep up the good work across 
America. You can count on me for support.
  Today I also rise to introduce the Strengthening American 
Transportation Security Act of 2016, SATSA. This bill would extend to 
Transportation Security Officers, TSO, the same worker rights and 
protections under Title 5 of the U.S. Code that most other Federal 
workers enjoy and that TSOs are currently denied.
  TSOs are Federal employees who work on the frontlines of aviation 
security, and make up 70 percent of the Transportation Security 
Administration's workforce. They provide essential protection to all 
Americans by screening passengers and baggage at our airports.
  Every day TSOs stop eight guns from getting on our airplanes. That's 
nearly 3,000 guns a year. They hold life-saving jobs and TSOs deserve 
parity under Title 5 of the U.S. Code. My bill would provide fair 
treatment to TSO's and, in doing so, would improve passenger

[[Page S6925]]

safety and enhance the overall capacity of the Federal workforce 
responsible for protecting our aviation transportation system.
  I am proud to introduce SATSA, which would improve the morale and 
stability of TSOs, the Federal workers keeping our airports and 
aviation travel safe. I want to thank my colleagues that have joined as 
original cosponsors of this bill: Senators Brown, Merkley, Warren, 
Franken, Peters, Tester, and Heinrich.
  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. 3525

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Strengthening American Transportation Security Act of 
     2016''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; sense of Congress.
Sec. 3. Definitions.
Sec. 4. Conversion of screening personnel.
Sec. 5. Transition rules.
Sec. 6. Consultation requirement.
Sec. 7. No right to strike.
Sec. 8. Regulations.
Sec. 9. Delegations to Administrator.
Sec. 10. Authorization of appropriations.

     SEC. 2. FINDINGS; SENSE OF CONGRESS.

       (a) Findings.--Congress finds the following:
       (1) On September 11, 2001, 19 terrorists, who underwent 
     airport security screening prior to boarding domestic 
     flights, were able to commandeer 4 airplanes and use those 
     airplanes to perpetrate the most deadly terrorist attack ever 
     to be executed on United States soil.
       (2) In the aftermath of those attacks, Congress passed the 
     Aviation and Transportation Security Act (Public Law 107-71), 
     which was signed into law by President George W. Bush on 
     November 19, 2001--
       (A) to enhance the level of security screening throughout 
     our aviation system; and
       (B) to transfer responsibility for such screening from the 
     private sector to the newly established Transportation 
     Security Administration (referred to in this section as 
     ``TSA'').
       (3) By establishing TSA, Congress and the American public 
     recognized that the highest level of screener performance was 
     directly linked to employment and training standards, pay and 
     benefits, and the creation of an experienced, committed 
     screening workforce.
       (4) Section 111(d) of the Aviation and Transportation 
     Security Act (49 U.S.C. 44935 note) authorizes the Under 
     Secretary of Transportation for Security to ``employ, 
     appoint, discipline, terminate, and fix the compensation, 
     terms, and conditions of employment of Federal service for 
     such a number of individuals as the Under Secretary 
     determines to be necessary to carry out the screening 
     functions of the Under Secretary under section 44901 of title 
     49, United States Code''. The functions of the TSA were 
     transferred to the Department of Homeland Security by section 
     403 of the Homeland Security Act of 2002 (6 U.S.C. 203).
       (5) TSA has interpreted the authorization set forth in 
     paragraph (4) as applying to the majority of the 
     Transportation Security Officer workforce performing 
     screening functions, while all other Transportation Security 
     Administration employees, including managers, are subject to 
     title 5, United States Code, as incorporated in title 49 of 
     such Code.
       (6) In November 2006, the International Labor Organization 
     ruled that the Bush Administration violated international 
     labor law when it prohibited Transportation Security Officers 
     from engaging in collective bargaining.
       (7) After the Federal Labor Relations Board approved a 
     petition for the election of an exclusive representative, on 
     February 4, 2011, TSA Administrator John Pistole issued a 
     binding determination stating that ``it is critical that 
     every TSA employee feels that he or she has a voice and feels 
     safe raising issues and concerns of all kinds. This is 
     important not just for morale; engagement of every employee 
     is critically important for security.''.
       (8) This determination was superseded by a second 
     determination issued on December 29, 2014, which changed the 
     previous guideline for collective bargaining and resulting in 
     limitations in the subjects that can be bargained, issues in 
     dispute that may be raised to an independent, third-party 
     neutral decision maker (such as an arbitrator or the Merit 
     Systems Protection Board), and barriers to union 
     representation of the Transportation Security Officer 
     workforce.
       (9) The 2011 and 2014 determinations both cited TSA's 
     authority under section 111(d) of the Aviation and 
     Transportation Security Act (49 U.S.C. 44935 note) to create 
     a personnel system that denies the Transportation Security 
     Officer workforce the rights under title 5, United States 
     Code, that are provided to most other Federal workers, 
     including--
       (A) the right to appeal adverse personnel decisions to the 
     Merit Systems Protection Board;
       (B) fair pay under the General Services wage system, 2011;
       (C) fair pay and raises under the General Services wage 
     system, including overtime guidelines, access to earned 
     leave;
       (D) the application of the Fair Labor Standards Act of 1938 
     (29 U.S.C. 201 et seq.);
       (E) fair performance appraisals under chapter 73 of title 
     5, United States Code; and
       (F) direct protections against employment discrimination 
     set forth in title 7, United States Code.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the personnel system utilized by the Transportation 
     Security Administration pursuant to section 111(d) of the 
     Aviation and Transportation Security Act (49 U.S.C. 44935 
     note) provides insufficient workplace protections for the 
     Transportation Security Officer workforce, who are the 
     frontline personnel who secure our Nation's aviation system; 
     and
       (2) such personnel should be entitled to the protections 
     under title 5, United States Code.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     official within the Department of Homeland Security who is 
     responsible for overseeing and implementing transportation 
     security pursuant to the Aviation and Transportation Security 
     Act, whether designated as the Assistant Secretary of 
     Homeland Security (Transportation Security Administration), 
     the Administrator of the Transportation Security 
     Administration, the Undersecretary of Transportation for 
     Security, or otherwise.
       (2) Agency.--The term ``agency'' means an Executive agency, 
     as defined by section 105 of title 5, United States Code.
       (3) Conversion date.--The term ``conversion date'' means 
     the date as of which paragraphs (1) through (3) of section 
     3(b) take effect.
       (4) Covered employee.--The term ``covered employee'' means 
     an employee who holds a covered position.
       (5) Covered position.--The term ``covered position'' 
     means--
       (A) a position within the Transportation Security 
     Administration; and
       (B) any position within the Department of Homeland 
     Security, not described in subparagraph (A), the duties and 
     responsibilities of which involve providing transportation 
     security in furtherance of the purposes of the Aviation and 
     Transportation Security Act (Public Law 107-71), as 
     determined by the Secretary.
       (6) Employee.--The term ``employee'' has the meaning given 
     such term by section 2105 of title 5, United States Code.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Homeland Security.
       (8) TSA personnel management system.--The term ``TSA 
     personnel management system'' means any personnel management 
     system established or modified under--
       (A) section 111(d) of the Aviation and Transportation 
     Security Act (49 U.S.C. 44935 note); or
       (B) section 114(n) of title 49, United States Code.

     SEC. 4. CONVERSION OF SCREENING PERSONNEL.

       (a) Termination of Certain Personnel Authorities.--
       (1) TSA personal management system.--Section 114 of title 
     49, United States Code, is amended by striking subsection 
     (n).
       (2) Termination of flexibility in employment of screener 
     personnel.--Section 111 of the Aviation and Transportation 
     Security Act (49 U.S.C. 44935 note) is amended by striking 
     subsection (d).
       (3) Human resources management system.--
       (A) In general.--Section 9701 of title 5, United States 
     Code, is amended--
       (i) by redesignating subsection (h) as subsection (i); and
       (ii) by inserting after subsection (g) the following:
       ``(h) Limitation.--The human resources management system 
     authorized under this section shall not apply to covered 
     employees or covered positions (as such terms are defined in 
     section 3 of the Strengthening American Transportation 
     Security Act of 2016).''.
       (B) Effective date.--The amendments made by subparagraph 
     (A) shall take effect on the date set forth in subsection 
     (b).
       (b) Covered Employees and Positions Made Subject to Same 
     Personnel Management System as Applies to Civil Service 
     Employees Generally.--On the earlier of a date determined by 
     the Secretary or 60 days after the date of the enactment of 
     this Act--
       (1) all TSA personnel management personnel policies, 
     directives, letters, and guidelines, including the 
     Determinations of February 2011 and December 2014 shall cease 
     to be effective;
       (2) any human resources management system established or 
     adjusted under section 9701 of title 5, United States Code, 
     shall cease to be effective with respect to covered employees 
     and covered positions; and
       (3) covered employees and covered positions shall become 
     subject to the applicable labor provisions under title 49, 
     United States Code.

[[Page S6926]]

  


     SEC. 5. TRANSITION RULES.

       (a) Nonreduction in Rate of Pay.--Any conversion of an 
     employee from a TSA personnel management system to the 
     provisions of law referred to in section 4(b)(3) shall be 
     effected, under pay conversion rules prescribed by the 
     Secretary, without any reduction in the rate of basic pay 
     payable to such employee.
       (b) Preservation of Other Rights.--The Secretary shall take 
     any necessary actions to ensure, for any covered employee as 
     of the conversion date, that--
       (1) all service performed by such covered employee before 
     the conversion date is credited in the determination of such 
     employee's length of service for purposes of applying the 
     provisions of law governing leave, pay, group life and health 
     insurance, severance pay, tenure, and status, which are made 
     applicable to such employee under section 4(b)(3);
       (2) all annual leave, sick leave, or other paid leave 
     accrued, accumulated, or otherwise available to the covered 
     employee immediately before the conversion date remains 
     available to the employee, until used, while the employee 
     remains continuously employed by the Department of Homeland 
     Security; and
       (3) the Government share of any premiums or other periodic 
     charges under the provisions of law governing group health 
     insurance remains at the level in effect immediately before 
     the conversion date while the employee remains continuously 
     employed by the Department of Homeland Security.

     SEC. 6. CONSULTATION REQUIREMENT.

       (a) Exclusive Representative.--The labor organization 
     certified by the Federal Labor Relations Authority on June 
     29, 2011, or successor organization shall be deemed the 
     exclusive representative of full- and part-time 
     nonsupervisory personnel carrying out screening functions 
     under section 44901 of title 49, United States Code under 
     chapter 71 of title 5, United States Code, with full rights 
     under such chapter 71.
       (b) Consultation Rights.--Not later than 14 days after the 
     date of the enactment of this Act, the Secretary shall--
       (1) consult with the exclusive representative for employees 
     under chapter 71 of title 5, United States Code, on the 
     formulation of plans and deadlines to carry out the 
     conversion of covered employees and covered positions under 
     this Act; and
       (2) provide final written plans to the exclusive 
     representative on how the Secretary intends to carry out the 
     conversion of covered employees and covered positions under 
     this Act, including with respect to--
       (A) the proposed conversion date; and
       (B) measures to ensure compliance with section 5.
       (c) Required Agency Response.--If any views or 
     recommendations are presented under subsection (b)(2) by the 
     exclusive representative, the Secretary shall consider the 
     views or recommendations before taking final action on any 
     matter with respect to which the views or recommendations are 
     presented and provide the exclusive representative a written 
     statement of the reasons for the final actions to be taken.
       (d) Sunset Provision.--The provisions of this section shall 
     cease to be effective as of the conversion date.

     SEC. 7. NO RIGHT TO STRIKE.

       Nothing in this Act may be construed--
       (1) to repeal or otherwise affect--
       (A) section 1918 of title 18, United States Code (relating 
     to disloyalty and asserting the right to strike against the 
     Government); or
       (B) section 7311 of title 5, United States Code (relating 
     to loyalty and striking); or
       (2) to otherwise authorize any activity which is not 
     permitted under either provision of law cited in paragraph 
     (1).

     SEC. 8. REGULATIONS.

       The Secretary may prescribe any regulations that may be 
     necessary to carry out this Act.

     SEC. 9. DELEGATIONS TO ADMINISTRATOR.

       The Secretary may, with respect to any authority or 
     function vested in the Secretary under any of the preceding 
     provisions of this Act, delegate any such authority or 
     function to the Administrator of the Transportation Security 
     Administration under such terms, conditions, and limitations, 
     including the power of redelegation, as the Secretary 
     considers appropriate.

     SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out this Act.
      By Mr. CARDIN:
  S. 3529. A bill to amend the Internal Revenue Code of 1986 to provide 
for a progressive consumption tax and to reform the income tax, and for 
other purposes; to the Committee on Finance.
  Mr. CARDIN. Mr. President, I am pleased to introduce the Progressive 
Consumption Tax Act of 2016.
  We need a tax code that is fair for American employers and fair for 
American families. We need a tax code that makes our U.S.-based 
businesses more competitive. Finally, we need a tax code that allows us 
to responsibly and reliably collect reasonable revenues.
  I introduced a version of this bill in the 113th Congress to provide 
an opening for discussion and a first opportunity to review legislative 
language for this type of comprehensive tax reform.
  Since the introduction of the Progressive Consumption Tax Act, many 
policymakers, including in Congress, have become increasingly 
interested in moving to a border-adjustable consumption tax base.
  As we move towards consideration of comprehensive tax reform in 2017, 
I wanted to reintroduce an updated version of this bill, which I think 
shows what progressive, fiscally responsible, pro-growth tax reform 
could look like.
  As many of my colleagues recognize, the extent to which we rely on 
income taxes is very out of step with the rest of the world.
  Compared to other countries that are in the OECD--developed countries 
with advanced economies, countries that we want to be competitive 
with--all taxes as a percentage of GDP in the United States are low.
  But, the U.S. is not a low income tax country. Our income tax 
revenues as a percentage of GDP are higher than the OECD countries. We 
have some of the highest statutory income tax rates in the world.
  What accounts for the difference is that all OECD countries except 
the U.S. have a consumption tax. In fact, about 150 countries now have 
a consumption tax, many of which were enacted decades ago.
  Unlike the U.S., these countries can tax imports and subsidize 
exports by rebating their consumption taxes for exports--without 
violating current World Trade Organization, WTO, rules. As important, 
these countries can sustain reductions in their corporate income tax 
rates, because they have an alternative and more pro-growth revenue 
source--a consumption tax.
  The Progressive Consumption Tax Act puts this country on a 
competitive playing field by providing for a broad-based progressive 
consumption tax, or PCT, at a rate of 10 percent. The PCT would 
generate revenue by taxing goods and services, rather than income.
  This is not simply an add-on tax. The revenues generated by the act 
would be used to eliminate an income tax liability for most households. 
This bears repeating: instead of paying an income tax, most Americans 
households, under this bill, would only pay a consumption tax.
  Those who do still have an income tax liability would see a much 
simplified income tax with their marginal rates reduced--the top 
marginal individual income tax rate, applying to taxable income over 
$500,000 for joint filers, would be 28 percent. The current top 
marginal rate, applying to taxable income over approximately $450,000 
for joint filers, is 39.6 percent.
  Four important tax benefits remain: the charitable contribution 
deduction, the state and local tax deduction, health and retirement 
benefits, and the mortgage interest deduction.
  The act would also slice our corporate rate by more than half, to 17 
percent.
  Finally, the act would provide rebates to lower- and moderate-income 
families to counteract their consumption tax burden and to replace 
essential support programs like the Earned Income Tax Credit and Child 
Tax Credit. Like the EITC and CTC, Individuals and families who do not 
have an income tax liability would still be able to receive these 
rebates.
  A key part of the act is progressivity. By eliminating an income tax 
liability for a significant number of households and providing rebates, 
the act is meant to be at least as progressive as the current system.
  The act is also meant to responsibly raise reasonable revenues. I 
know that some have concerns that the act would just provide a new 
lever for the government to raise funds. That is why the act contains a 
revenue ``circuit breaker'' mechanism that returns excess PCT revenues 
to taxpayers if a certain threshold is met. The PCT is not meant to be 
a means to quickly raise revenues while disregarding the effects of 
higher consumption taxes on U.S. families and employers.
  Overall, the Progressive Consumption Tax Act has many advantages 
compared to past reform efforts.
  First, it encourages saving. Under current law, families and 
individuals are taxed on income, which includes savings. Under the act, 
most households would be exempt from the income tax, and thus would be 
able to save tax free.
  The act enhances U.S. economic competitiveness. The U.S. corporate 
income tax rate would be lowered to 17

[[Page S6927]]

percent, encouraging multinational corporations to locate here, not 
abroad. OECD countries currently attracting U.S. multinationals often 
impose higher consumption or corporate tax rates than those envisioned 
by the act.
  In fact, if the Progressive Consumption Tax Act became law, every top 
statutory rate in the United States--our individual income tax rate, 
our corporate tax rate, our consumption tax rate--would be at least 
five percentage points lower than the OECD average.
  The act encourages economic growth. In a study that examined 35 years 
of data on 21 OECD countries, consumption taxes were found to be more 
growth-friendly than both personal income taxes and corporate income 
taxes. Corporate income taxes, especially, appear to have the most 
negative effect on GDP per capita. Growth-oriented tax reform should 
move away from income tax revenues and towards consumption tax 
revenues, as the act does.
  The act also enhances U.S. trade competitiveness. Countries with 
consumption taxes can adjust their taxes at the border by rebating 
exports. That means that these countries can agree to reduced tariffs 
under trade agreements, can still tax imports with their consumption 
taxes, and can export their own goods without a full tax load. Because 
the PCT is border-adjusted, the U.S. would be able to maintain export 
and import tax parity in the same way as these other countries. In 
addition, the PCT is designed to achieve these benefits while being 
compliant with WTO rules.
  The act reduces income tax compliance costs. Most households would 
not have an income tax liability under the act--although they would 
need to provide key pieces of information to the IRS in order to obtain 
their rebates.
  Finally, the act protects low- and middle-income families from an 
unfair tax burden. Through the income tax exemption and rebate feature, 
the Progressive Consumption Tax Act aims to ensure that this new tax 
system is at least as progressive as the current income tax system.
  When my colleagues and others talk to me about comprehensive, 
responsible, pro-growth tax reform, this to me is what we need to do.
  That is why I am pleased to reintroduce the Progressive Consumption 
Tax Act in this Congress. This newest version of the act responds to 
input from stakeholders that we received last year. As important, the 
act shows exactly what serious, comprehensive consumption-based tax 
reform legislation looks like.
  As this Congress closes and the new Congress convenes, I hope we will 
stand for what is right in our tax code, and enact the type of reform 
that allows our country to have among the lowest tax rates in the 
industrialized world, and the fairest system for all Americans.

                          ____________________