[Congressional Record (Bound Edition), Volume 145 (1999), Part 20]
[House]
[Pages 29289-29297]
[From the U.S. Government Publishing Office, www.gpo.gov]



             DECEPTIVE MAIL PREVENTION AND ENFORCEMENT ACT

  Mr. McHUGH. Mr. Speaker, I move to suspend the rules and pass the 
Senate bill (S. 335) to amend chapter 30 of title 39, United States 
Code, to provide for the nonmailability of certain deceptive matter 
relating to sweepstakes, skill contests, facsimile checks, 
administrative procedures, orders, and civil penalties relating to such 
matter, and for other purposes, as amended.
  The Clerk read as follows:

                                 S. 335

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

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.

           TITLE I--DECEPTIVE MAIL PREVENTION AND ENFORCEMENT

Sec. 101. Short title.

[[Page 29290]]

Sec. 102. Restrictions on mailings using misleading references to the 
              United States Government.
Sec. 103. Restrictions on sweepstakes and deceptive mailings.
Sec. 104. Postal service orders to prohibit deceptive mailings.
Sec. 105. Temporary restraining order for deceptive mailings.
Sec. 106. Civil penalties and costs.
Sec. 107. Administrative subpoenas.
Sec. 108. Requirements of promoters of skill contests or sweepstakes 
              mailings.
Sec. 109. State law not preempted.
Sec. 110. Technical and conforming amendments.
Sec. 111. Effective date.

         TITLE II--FEDERAL RESERVE BOARD RETIREMENT PORTABILITY

Sec. 201. Short title.
Sec. 202. Portability of service credit.
Sec. 203. Certain transfers to be treated as a separation from service 
              for purposes of the thrift savings plan.
Sec. 204. Clarifying amendments.

    TITLE III--AMENDMENT TO THE FEDERAL PROPERTY AND ADMINISTRATIVE 
                         SERVICES ACT OF 1949.

Sec. 301. Transfer of certain property to State and local governments.
           TITLE I--DECEPTIVE MAIL PREVENTION AND ENFORCEMENT

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Deceptive Mail Prevention 
     and Enforcement Act''.

     SEC. 102. RESTRICTIONS ON MAILINGS USING MISLEADING 
                   REFERENCES TO THE UNITED STATES GOVERNMENT.

       Section 3001 of title 39, United States Code, is amended--
       (1) in subsection (h)--
       (A) in the first sentence by striking ``contains a seal, 
     insignia, trade or brand name, or any other term or symbol 
     that reasonably could be interpreted or construed as implying 
     any Federal Government connection, approval or endorsement'' 
     and inserting the following: ``which reasonably could be 
     interpreted or construed as implying any Federal Government 
     connection, approval, or endorsement through the use of a 
     seal, insignia, reference to the Postmaster General, citation 
     to a Federal statute, name of a Federal agency, department, 
     commission, or program, trade or brand name, or any other 
     term or symbol; or contains any reference to the Postmaster 
     General or a citation to a Federal statute that misrepresents 
     either the identity of the mailer or the protection or status 
     afforded such matter by the Federal Government''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A) by striking ``and'' at the end;
       (ii) in subparagraph (B) by striking ``or'' at the end and 
     inserting ``and''; and
       (iii) by inserting after subparagraph (B) the following:
       ``(C) such matter does not contain a false representation 
     stating or implying that Federal Government benefits or 
     services will be affected by any purchase or nonpurchase; 
     or'';
       (2) in subsection (i) in the first sentence--
       (A) in the first sentence by striking ``contains a seal, 
     insignia, trade or brand name, or any other term or symbol 
     that reasonably could be interpreted or construed as implying 
     any Federal Government connection, approval or endorsement'' 
     and inserting the following: ``which reasonably could be 
     interpreted or construed as implying any Federal Government 
     connection, approval, or endorsement through the use of a 
     seal, insignia, reference to the Postmaster General, citation 
     to a Federal statute, name of a Federal agency, department, 
     commission, or program, trade or brand name, or any other 
     term or symbol; or contains any reference to the Postmaster 
     General or a citation to a Federal statute that misrepresents 
     either the identity of the mailer or the protection or status 
     afforded such matter by the Federal Government''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A) by striking ``and'' at the end;
       (ii) in subparagraph (B) by striking ``or'' at the end and 
     inserting ``and''; and
       (iii) by inserting after subparagraph (B) the following:
       ``(C) such matter does not contain a false representation 
     stating or implying that Federal Government benefits or 
     services will be affected by any contribution or 
     noncontribution; or'';
       (3) by redesignating subsections (j) and (k) as subsections 
     (m) and (n), respectively; and
       (4) by inserting after subsection (i) the following:
       ``(j)(1) Any matter otherwise legally acceptable in the 
     mails which is described in paragraph (2) is nonmailable 
     matter, shall not be carried or delivered by mail, and shall 
     be disposed of as the Postal Service directs.
       ``(2) Matter described in this paragraph is any matter 
     that--
       ``(A) constitutes a solicitation for the purchase of or 
     payment for any product or service that--
       ``(i) is provided by the Federal Government; and
       ``(ii) may be obtained without cost from the Federal 
     Government; and
       ``(B) does not contain a clear and conspicuous statement 
     giving notice of the information set forth in clauses (i) and 
     (ii) of subparagraph (A).''.

     SEC. 103. RESTRICTIONS ON SWEEPSTAKES AND DECEPTIVE MAILINGS.

       Section 3001 of title 39, United States Code, is amended by 
     inserting after subsection (j) (as added by section 102(4)) 
     the following:
       ``(k)(1) In this subsection--
       ``(A) the term `clearly and conspicuously displayed' means 
     presented in a manner that is readily noticeable, readable, 
     and understandable to the group to whom the applicable matter 
     is disseminated;
       ``(B) the term `facsimile check' means any matter that--
       ``(i) is designed to resemble a check or other negotiable 
     instrument; but
       ``(ii) is not negotiable;
       ``(C) the term `skill contest' means a puzzle, game, 
     competition, or other contest in which--
       ``(i) a prize is awarded or offered;
       ``(ii) the outcome depends predominately on the skill of 
     the contestant; and
       ``(iii) a purchase, payment, or donation is required or 
     implied to be required to enter the contest; and
       ``(D) the term `sweepstakes' means a game of chance for 
     which no consideration is required to enter.
       ``(2) Except as provided in paragraph (4), any matter 
     otherwise legally acceptable in the mails which is described 
     in paragraph (3) is nonmailable matter, shall not be carried 
     or delivered by mail, and shall be disposed of as the Postal 
     Service directs.
       ``(3) Matter described in this paragraph is any matter 
     that--
       ``(A)(i) includes entry materials for a sweepstakes or a 
     promotion that purports to be a sweepstakes; and
       ``(ii)(I) does not contain a statement that discloses in 
     the mailing, in the rules, and on the order or entry form, 
     that no purchase is necessary to enter such sweepstakes;
       ``(II) does not contain a statement that discloses in the 
     mailing, in the rules, and on the order or entry form, that a 
     purchase will not improve an individual's chances of winning 
     with such entry;
       ``(III) does not state all terms and conditions of the 
     sweepstakes promotion, including the rules and entry 
     procedures for the sweepstakes;
       ``(IV) does not disclose the sponsor or mailer of such 
     matter and the principal place of business or an address at 
     which the sponsor or mailer may be contacted;
       ``(V) does not contain sweepstakes rules that state--
       ``(aa) the estimated odds of winning each prize;
       ``(bb) the quantity, estimated retail value, and nature of 
     each prize; and
       ``(cc) the schedule of any payments made over time;
       ``(VI) represents that individuals not purchasing products 
     or services may be disqualified from receiving future 
     sweepstakes mailings;
       ``(VII) requires that a sweepstakes entry be accompanied by 
     an order or payment for a product or service previously 
     ordered;
       ``(VIII) represents that an individual is a winner of a 
     prize unless that individual has won such prize; or
       ``(IX) contains a representation that contradicts, or is 
     inconsistent with sweepstakes rules or any other disclosure 
     required to be made under this subsection, including any 
     statement qualifying, limiting, or explaining the rules or 
     disclosures in a manner inconsistent with such rules or 
     disclosures;
       ``(B)(i) includes entry materials for a skill contest or a 
     promotion that purports to be a skill contest; and
       ``(ii)(I) does not state all terms and conditions of the 
     skill contest, including the rules and entry procedures for 
     the skill contest;
       ``(II) does not disclose the sponsor or mailer of the skill 
     contest and the principal place of business or an address at 
     which the sponsor or mailer may be contacted; or
       ``(III) does not contain skill contest rules that state, as 
     applicable--
       ``(aa) the number of rounds or levels of the contest and 
     the cost to enter each round or level;
       ``(bb) that subsequent rounds or levels will be more 
     difficult to solve;
       ``(cc) the maximum cost to enter all rounds or levels;
       ``(dd) the estimated number or percentage of entrants who 
     may correctly solve the skill contest or the approximate 
     number or percentage of entrants correctly solving the past 3 
     skill contests conducted by the sponsor;
       ``(ee) the identity or description of the qualifications of 
     the judges if the contest is judged by other than the 
     sponsor;
       ``(ff) the method used in judging;
       ``(gg) the date by which the winner or winners will be 
     determined and the date or process by which prizes will be 
     awarded;
       ``(hh) the quantity, estimated retail value, and nature of 
     each prize; and
       ``(ii) the schedule of any payments made over time; or
       ``(C) includes any facsimile check that does not contain a 
     statement on the check itself that such check is not a 
     negotiable instrument and has no cash value.
       ``(4) Matter that appears in a magazine, newspaper, or 
     other periodical shall be exempt from paragraph (2) if such 
     matter--

[[Page 29291]]

       ``(A) is not directed to a named individual; or
       ``(B) does not include an opportunity to make a payment or 
     order a product or service.
       ``(5) Any statement, notice, or disclaimer required under 
     paragraph (3) shall be clearly and conspicuously displayed. 
     Any statement, notice, or disclaimer required under subclause 
     (I) or (II) of paragraph (3)(A)(ii) shall be displayed more 
     conspicuously than would otherwise be required under the 
     preceding sentence.
       ``(6) In the enforcement of paragraph (3), the Postal 
     Service shall consider all of the materials included in the 
     mailing and the material and language on and visible through 
     the envelope or outside cover or wrapper in which those 
     materials are mailed.
       ``(l)(1) Any person who uses the mails for any matter to 
     which subsection (h), (i), (j), or (k) applies shall adopt 
     reasonable practices and procedures to prevent the mailing of 
     such matter to any person who, personally or through a 
     conservator, guardian, or individual with power of attorney--
       ``(A) submits to the mailer of such matter a written 
     request that such matter should not be mailed to such person; 
     or
       ``(B)(i) submits such a written request to the attorney 
     general of the appropriate State (or any State government 
     officer who transmits the request to that attorney general); 
     and
       ``(ii) that attorney general transmits such request to the 
     mailer.
       ``(2) Any person who mails matter to which subsection (h), 
     (i), (j), or (k) applies shall maintain or cause to be 
     maintained a record of all requests made under paragraph (1). 
     The records shall be maintained in a form to permit the 
     suppression of an applicable name at the applicable address 
     for a 5-year period beginning on the date the written request 
     under paragraph (1) is submitted to the mailer.''.

     SEC. 104. POSTAL SERVICE ORDERS TO PROHIBIT DECEPTIVE 
                   MAILINGS.

       Section 3005(a) of title 39, United States Code, is 
     amended--
       (1) by striking ``or'' after ``(h),'' each place it 
     appears; and
       (2) by inserting ``, (j), or (k)'' after ``(i)'' each place 
     it appears.

     SEC. 105. TEMPORARY RESTRAINING ORDER FOR DECEPTIVE MAILINGS.

       (a) In General.--Section 3007 of title 39, United States 
     Code, is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by striking subsection (a) and inserting the following:
       ``(a)(1) In preparation for or during the pendency of 
     proceedings under section 3005, the Postal Service may, under 
     the provisions of section 409(d), apply to the district court 
     in any district in which mail is sent or received as part of 
     the alleged scheme, device, lottery, gift enterprise, 
     sweepstakes, skill contest, or facsimile check or in any 
     district in which the defendant is found, for a temporary 
     restraining order and preliminary injunction under the 
     procedural requirements of rule 65 of the Federal Rules of 
     Civil Procedure.
       ``(2)(A) Upon a proper showing, the court shall enter an 
     order which shall--
       ``(i) remain in effect during the pendency of the statutory 
     proceedings, any judicial review of such proceedings, or any 
     action to enforce orders issued under the proceedings; and
       ``(ii) direct the detention by the postmaster, in any and 
     all districts, of the defendant's incoming mail and outgoing 
     mail, which is the subject of the proceedings under section 
     3005.
       ``(B) A proper showing under this paragraph shall require 
     proof of a likelihood of success on the merits of the 
     proceedings under section 3005.
       ``(3) Mail detained under paragraph (2) shall--
       ``(A) be made available at the post office of mailing or 
     delivery for examination by the defendant in the presence of 
     a postal employee; and
       ``(B) be delivered as addressed if such mail is not clearly 
     shown to be the subject of proceedings under section 3005.
       ``(4) No finding of the defendant's intent to make a false 
     representation or to conduct a lottery is required to support 
     the issuance of an order under this section.
       ``(b) If any order is issued under subsection (a) and the 
     proceedings under section 3005 are concluded with the 
     issuance of an order under that section, any judicial review 
     of the matter shall be in the district in which the order 
     under subsection (a) was issued.''.
       (b) Repeal.--
       (1) In general.--Section 3006 of title 39, United States 
     Code, and the item relating to such section in the table of 
     sections for chapter 30 of such title are repealed.
       (2) Conforming amendments.--(A) Section 3005(c) of title 
     39, United States Code, is amended by striking ``section and 
     section 3006 of this title,'' and inserting ``section,''.
       (B) Section 3011(e) of title 39, United States Code, is 
     amended by striking ``3006, 3007,'' and inserting ``3007''.

     SEC. 106. CIVIL PENALTIES AND COSTS.

       Section 3012 of title 39, United States Code, is amended--
       (1) in subsection (a) by striking ``$10,000 for each day 
     that such person engages in conduct described by paragraph 
     (1), (2), or (3) of this subsection.'' and inserting 
     ``$50,000 for each mailing of less than 50,000 pieces; 
     $100,000 for each mailing of 50,000 to 100,000 pieces; with 
     an additional $10,000 for each additional 10,000 pieces above 
     100,000, not to exceed $2,000,000.'';
       (2) in paragraphs (1) and (2) of subsection (b) by 
     inserting after ``of subsection (a)'' the following: ``, (c), 
     or (d)'';
       (3) by redesignating subsections (c) and (d), as 
     subsections (e) and (f), respectively; and
       (4) by inserting after subsection (b) the following:
       ``(c)(1) In any proceeding in which the Postal Service may 
     issue an order under section 3005(a), the Postal Service may 
     in lieu of that order or as part of that order assess civil 
     penalties in an amount not to exceed $25,000 for each mailing 
     of less than 50,000 pieces; $50,000 for each mailing of 
     50,000 to 100,000 pieces; with an additional $5,000 for each 
     additional 10,000 pieces above 100,000, not to exceed 
     $1,000,000.
       ``(2) In any proceeding in which the Postal Service 
     assesses penalties under this subsection the Postal Service 
     shall determine the civil penalty taking into account the 
     nature, circumstances, extent, and gravity of the violation 
     or violations of section 3005(a), and with respect to the 
     violator, the ability to pay the penalty, the effect of the 
     penalty on the ability of the violator to conduct lawful 
     business, any history of prior violations of such section, 
     the degree of culpability and other such matters as justice 
     may require.
       ``(d) Any person who violates section 3001(l) shall be 
     liable to the United States for a civil penalty not to exceed 
     $10,000 for each mailing to an individual.''.

     SEC. 107. ADMINISTRATIVE SUBPOENAS.

       (a) In General.--Chapter 30 of title 39, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 3016. Administrative subpoenas

       ``(a) Subpoena Authority.--
       ``(1) Investigations.--
       ``(A) In general.--In any investigation conducted under 
     section 3005(a), the Postmaster General may require by 
     subpoena the production of any records (including books, 
     papers, documents, and other tangible things which constitute 
     or contain evidence) which the Postmaster General considers 
     relevant or material to such investigation.
       ``(B) Condition.--No subpoena shall be issued under this 
     paragraph except in accordance with procedures, established 
     by the Postal Service, requiring that--
       ``(i) a specific case, with an individual or entity 
     identified as the subject, be opened before a subpoena is 
     requested;
       ``(ii) appropriate supervisory and legal review of a 
     subpoena request be performed; and
       ``(iii) delegation of subpoena approval authority be 
     limited to the Postal Service's General Counsel or a Deputy 
     General Counsel.
       ``(2) Statutory proceedings.--In any statutory proceeding 
     conducted under section 3005(a), the Judicial Officer may 
     require by subpoena the attendance and testimony of witnesses 
     and the production of any records (including books, papers, 
     documents, and other tangible things which constitute or 
     contain evidence) which the Judicial Officer considers 
     relevant or material to such proceeding.
       ``(3) Rule of construction.--Nothing in paragraph (2) shall 
     be considered to apply in any circumstance to which paragraph 
     (1) applies.
       ``(b) Service.--
       ``(1) Service within the united states.--A subpoena issued 
     under this section may be served by a person designated under 
     section 3061 of title 18 at any place within the territorial 
     jurisdiction of any court of the United States.
       ``(2) Foreign service.--Any such subpoena may be served 
     upon any person who is not to be found within the territorial 
     jurisdiction of any court of the United States, in such 
     manner as the Federal Rules of Civil Procedure prescribe for 
     service in a foreign country. To the extent that the courts 
     of the United States may assert jurisdiction over such person 
     consistent with due process, the United States District Court 
     for the District of Columbia shall have the same jurisdiction 
     to take any action respecting compliance with this section by 
     such person that such court would have if such person were 
     personally within the jurisdiction of such court.
       ``(3) Service on business persons.--Service of any such 
     subpoena may be made upon a partnership, corporation, 
     association, or other legal entity by--
       ``(A) delivering a duly executed copy thereof to any 
     partner, executive officer, managing agent, or general agent 
     thereof, or to any agent thereof authorized by appointment or 
     by law to receive service of process on behalf of such 
     partnership, corporation, association, or entity;
       ``(B) delivering a duly executed copy thereof to the 
     principal office or place of business of the partnership, 
     corporation, association, or entity; or
       ``(C) depositing such copy in the United States mails, by 
     registered or certified mail, return receipt requested, duly 
     addressed to such partnership, corporation, association,

[[Page 29292]]

     or entity at its principal office or place of business.
       ``(4) Service on natural persons.--Service of any subpoena 
     may be made upon any natural person by--
       ``(A) delivering a duly executed copy to the person to be 
     served; or
       ``(B) depositing such copy in the United States mails, by 
     registered or certified mail, return receipt requested, duly 
     addressed to such person at his residence or principal office 
     or place of business.
       ``(5) Verified return.--A verified return by the individual 
     serving any such subpoena setting forth the manner of such 
     service shall be proof of such service. In the case of 
     service by registered or certified mail, such return shall be 
     accompanied by the return post office receipt of delivery of 
     such subpoena.
       ``(c) Enforcement.--
       ``(1) In general.--Whenever any person, partnership, 
     corporation, association, or entity fails to comply with any 
     subpoena duly served upon him, the Postmaster General may 
     request that the Attorney General seek enforcement of the 
     subpoena in the district court of the United States for any 
     judicial district in which such person resides, is found, or 
     transacts business, and serve upon such person a petition for 
     an order of such court for the enforcement of this section.
       ``(2) Jurisdiction.--Whenever any petition is filed in any 
     district court of the United States under this section, such 
     court shall have jurisdiction to hear and determine the 
     matter so presented, and to enter such order or orders as may 
     be required to carry into effect the provisions of this 
     section. Any final order entered shall be subject to appeal 
     under section 1291 of title 28, United States Code. Any 
     disobedience of any final order entered under this section by 
     any court may be punished as contempt.
       ``(d) Disclosure.--Any documentary material provided 
     pursuant to any subpoena issued under this section shall be 
     exempt from disclosure under section 552 of title 5, United 
     States Code.''.
       (b) Regulations.--Not later than 120 days after the date of 
     the enactment of this section, the Postal Service shall 
     promulgate regulations setting out the procedures the Postal 
     Service will use to implement the amendment made by 
     subsection (a).
       (c) Semiannual Reports.--Section 3013 of title 39, United 
     States Code, is amended by striking ``and'' at the end of 
     paragraph (4), by redesignating paragraph (5) as paragraph 
     (6), and by inserting after paragraph (4) the following:
       ``(5) the number of cases in which the authority described 
     in section 3016 was used, and a comprehensive statement 
     describing how that authority was used in each of those 
     cases; and''.
       (d) Technical and Conforming Amendment.--The table of 
     sections for chapter 30 of title 39, United States Code, is 
     amended by adding at the end the following:

``3016. Administrative subpoenas.''.

     SEC. 108. REQUIREMENTS OF PROMOTERS OF SKILL CONTESTS OR 
                   SWEEPSTAKES MAILINGS.

       (a) In General.--Chapter 30 of title 39, United States Code 
     (as amended by section 107) is amended by adding after 
     section 3016 the following:

     ``Sec. 3017. Nonmailable skill contests or sweepstakes 
       matter; notification to prohibit mailings

       ``(a) Definitions.--In this section--
       ``(1) the term `promoter' means any person who--
       ``(A) originates and mails any skill contest or 
     sweepstakes, except for any matter described in section 
     3001(k)(4); or
       ``(B) originates and causes to be mailed any skill contest 
     or sweepstakes, except for any matter described in section 
     3001(k)(4);
       ``(2) the term `removal request' means a request stating 
     that an individual elects to have the name and address of 
     such individual excluded from any list used by a promoter for 
     mailing skill contests or sweepstakes;
       ``(3) the terms `skill contest', `sweepstakes', and 
     `clearly and conspicuously displayed' have the same meanings 
     as given them in section 3001(k); and
       ``(4) the term `duly authorized person', as used in 
     connection with an individual, means a conservator or 
     guardian of, or person granted power of attorney by, such 
     individual.
       ``(b) Nonmailable Matter.--
       ``(1) In general.--Matter otherwise legally acceptable in 
     the mails described in paragraph (2)--
       ``(A) is nonmailable matter;
       ``(B) shall not be carried or delivered by mail; and
       ``(C) shall be disposed of as the Postal Service directs.
       ``(2) Nonmailable matter described.--Matter described in 
     this paragraph is any matter that--
       ``(A) is a skill contest or sweepstakes, except for any 
     matter described in section 3001(k)(4); and
       ``(B)(i) is addressed to an individual who made an election 
     to be excluded from lists under subsection (d); or
       ``(ii) does not comply with subsection (c)(1).
       ``(c) Requirements of Promoters.--
       ``(1) Notice to individuals.--Any promoter who mails a 
     skill contest or sweepstakes shall provide with each mailing 
     a statement that--
       ``(A) is clearly and conspicuously displayed;
       ``(B) includes the address or toll-free telephone number of 
     the notification system established under paragraph (2); and
       ``(C) states that the notification system may be used to 
     prohibit the mailing of all skill contests or sweepstakes by 
     that promoter to such individual.
       ``(2) Notification system.--Any promoter that mails or 
     causes to be mailed a skill contest or sweepstakes shall 
     establish and maintain a notification system that provides 
     for any individual (or other duly authorized person) to 
     notify the system of the individual's election to have the 
     name and address of the individual excluded from all lists of 
     names and addresses used by that promoter to mail any skill 
     contest or sweepstakes.
       ``(d) Election To Be Excluded From Lists.--
       ``(1) In general.--An individual (or other duly authorized 
     person) may elect to exclude the name and address of that 
     individual from all lists of names and addresses used by a 
     promoter of skill contests or sweepstakes by submitting a 
     removal request to the notification system established under 
     subsection (c).
       ``(2) Response after submitting removal request to the 
     notification system.--Not later than 60 calendar days after a 
     promoter receives a removal request pursuant to an election 
     under paragraph (1), the promoter shall exclude the 
     individual's name and address from all lists of names and 
     addresses used by that promoter to select recipients for any 
     skill contest or sweepstakes.
       ``(3) Effectiveness of election.--An election under 
     paragraph (1) shall remain in effect, unless an individual 
     (or other duly authorized person) notifies the promoter in 
     writing that such individual--
       ``(A) has changed the election; and
       ``(B) elects to receive skill contest or sweepstakes 
     mailings from that promoter.
       ``(e) Private Right of Action.--
       ``(1) In general.--An individual who receives one or more 
     mailings in violation of subsection (d) may, if otherwise 
     permitted by the laws or rules of court of a State, bring in 
     an appropriate court of that State--
       ``(A) an action to enjoin such violation;
       ``(B) an action to recover for actual monetary loss from 
     such a violation, or to receive $500 in damages for each such 
     violation, whichever is greater; or
       ``(C) both such actions.

     It shall be an affirmative defense in any action brought 
     under this subsection that the defendant has established and 
     implemented, with due care, reasonable practices and 
     procedures to effectively prevent mailings in violation of 
     subsection (d). If the court finds that the defendant 
     willfully or knowingly violated subsection (d), the court 
     may, in its discretion, increase the amount of the award to 
     an amount equal to not more than 3 times the amount available 
     under subparagraph (B).
       ``(2) Action allowable based on other sufficient notice.--A 
     mailing sent in violation of section 3001(l) shall be 
     actionable under this subsection, but only if such an action 
     would not also be available under paragraph (1) (as a 
     violation of subsection (d)) based on the same mailing.
       ``(f) Promoter Nonliability.--A promoter shall not be 
     subject to civil liability for the exclusion of an 
     individual's name or address from any list maintained by that 
     promoter for mailing skill contests or sweepstakes, if--
       ``(1) a removal request is received by the promoter's 
     notification system; and
       ``(2) the promoter has a good faith belief that the request 
     is from--
       ``(A) the individual whose name and address is to be 
     excluded; or
       ``(B) another duly authorized person.
       ``(g) Prohibition on Commercial Use of Lists.--
       ``(1) In general.--
       ``(A) Prohibition.--No person may provide any information 
     (including the sale or rental of any name or address) derived 
     from a list described in subparagraph (B) to another person 
     for commercial use.
       ``(B) Lists.--A list referred to under subparagraph (A) is 
     any list of names and addresses (or other related 
     information) compiled from individuals who exercise an 
     election under subsection (d).
       ``(2) Civil penalty.--Any person who violates paragraph (1) 
     shall be assessed a civil penalty by the Postal Service not 
     to exceed $2,000,000 per violation.
       ``(h) Civil Penalties.--
       ``(1) In general.--Any promoter--
       ``(A) who recklessly mails nonmailable matter in violation 
     of subsection (b) shall be liable to the United States in an 
     amount of $10,000 per violation for each mailing to an 
     individual of nonmailable matter; or
       ``(B) who fails to comply with the requirements of 
     subsection (c)(2) shall be liable to the United States.
       ``(2) Enforcement.--The Postal Service shall, in accordance 
     with the same procedures as set forth in section 3012(b), 
     provide for the assessment of civil penalties under this 
     section.''.
       (b) Technical and Conforming Amendments.--The table of 
     sections for chapter 30

[[Page 29293]]

     of title 39, United States Code, is amended by adding after 
     the item relating to section 3016 the following:

``3017. Nonmailable skill contests or sweepstakes matter; notification 
              to prohibit mailings.''.
       (c) Effective Date.--This section shall take effect 1 year 
     after the date of the enactment of this Act.

     SEC. 109. STATE LAW NOT PREEMPTED.

       (a) In General.--Nothing in the provisions of this title 
     (including the amendments made by this title) or in the 
     regulations promulgated under such provisions shall be 
     construed to preempt any provision of State or local law that 
     imposes more restrictive requirements, regulations, damages, 
     costs, or penalties. No determination by the Postal Service 
     that any particular piece of mail or class of mail is in 
     compliance with such provisions of this title shall be 
     construed to preempt any provision of State or local law.
       (b) Effect on State Court Proceedings.--Nothing contained 
     in this section shall be construed to prohibit an authorized 
     State official from proceeding in State court on the basis of 
     an alleged violation of any general civil or criminal statute 
     of such State or any specific civil or criminal statute of 
     such State.

     SEC. 110. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) References to Repealed Provisions.--Section 3001(a) of 
     title 39, United States Code, is amended by striking 
     ``1714,'' and ``1718,''.
       (b) Conformance With Inspector General Act of 1978.--
       (1) In general.--Section 3013 of title 39, United States 
     Code, is amended--
       (A) by striking ``Board'' each place it appears and 
     inserting ``Inspector General'';
       (B) in the third sentence by striking ``Each such report 
     shall be submitted within sixty days after the close of the 
     reporting period involved'' and inserting ``Each such report 
     shall be submitted within 1 month (or such shorter length of 
     time as the Inspector General may specify) after the close of 
     the reporting period involved''; and
       (C) by striking the last sentence and inserting the 
     following:
     ``The information in a report submitted under this section to 
     the Inspector General with respect to a reporting period 
     shall be included as part of the semiannual report prepared 
     by the Inspector General under section 5 of the Inspector 
     General Act of 1978 for the same reporting period. Nothing in 
     this section shall be considered to permit or require that 
     any report by the Postmaster General under this section 
     include any information relating to activities of the 
     Inspector General.''.
       (2) Effective date.--This subsection shall take effect on 
     the date of the enactment of this Act, and the amendments 
     made by this subsection shall apply with respect to 
     semiannual reporting periods beginning on or after such date 
     of enactment.
       (3) Savings provision.--For purposes of any semiannual 
     reporting period preceding the first semiannual reporting 
     period referred to in paragraph (2), the provisions of title 
     39, United States Code, shall continue to apply as if the 
     amendments made by this subsection had not been enacted.

     SEC. 111. EFFECTIVE DATE.

       Except as provided in section 108 or 110(b), this title 
     shall take effect 120 days after the date of the enactment of 
     this Act.
         TITLE II--FEDERAL RESERVE BOARD RETIREMENT PORTABILITY

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Federal Reserve Board 
     Retirement Portability Act''.

     SEC. 202. PORTABILITY OF SERVICE CREDIT.

       (a) Creditable Service.--
       (1) In general.--Section 8411(b) of title 5, United States 
     Code, is amended--
       (A) by striking ``and'' at the end of paragraph (3);
       (B) in paragraph (4)--
       (i) by striking ``of the preceding provisions'' and 
     inserting ``other paragraph''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(5) a period of service (other than any service under any 
     other paragraph of this subsection, any military service, and 
     any service performed in the employ of a Federal Reserve 
     Bank) that was creditable under the Bank Plan (as defined in 
     subsection (i)), if the employee waives credit for such 
     service under the Bank Plan and makes a payment to the Fund 
     equal to the amount that would have been deducted from pay 
     under section 8422(a) had the employee been subject to this 
     chapter during such period of service (together with interest 
     on such amount computed under paragraphs (2) and (3) of 
     section 8334(e)).
     Paragraph (5) shall not apply in the case of any employee as 
     to whom subsection (g) (or, to the extent subchapter III of 
     chapter 83 is involved, section 8332(n)) otherwise 
     applies.''.
       (2) Bank plan defined.--Section 8411 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``(i) For purposes of subsection (b)(5), the term `Bank 
     Plan' means the benefit structure in which employees of the 
     Board of Governors of the Federal Reserve System appointed on 
     or after January 1, 1984, participate, which benefit 
     structure is a component of the Retirement Plan for Employees 
     of the Federal Reserve System, established under section 10 
     of the Federal Reserve Act (and any redesignated or successor 
     version of such benefit structure, if so identified in 
     writing by the Board of Governors of the Federal Reserve 
     System for purposes of this chapter).''.
       (b) Exclusion From Chapter 84.--
       (1) In general.--Paragraph (2) of section 8402(b) of title 
     5, United States Code, is amended by striking the matter 
     before subparagraph (B) and inserting the following:
       ``(2)(A) any employee or Member who has separated from the 
     service after--
       ``(i) having been subject to--

       ``(I) subchapter III of chapter 83 of this title;
       ``(II) subchapter I of chapter 8 of title I of the Foreign 
     Service Act of 1980; or
       ``(III) the benefit structure for employees of the Board of 
     Governors of the Federal Reserve System appointed before 
     January 1, 1984, that is a component of the Retirement Plan 
     for Employees of the Federal Reserve System, established 
     under section 10 of the Federal Reserve Act; and

       ``(ii) having completed--

       ``(I) at least 5 years of civilian service creditable under 
     subchapter III of chapter 83 of this title;
       ``(II) at least 5 years of civilian service creditable 
     under subchapter I of chapter 8 of title I of the Foreign 
     Service Act of 1980; or
       ``(III) at least 5 years of civilian service (other than 
     any service performed in the employ of a Federal Reserve 
     Bank) creditable under the benefit structure for employees of 
     the Board of Governors of the Federal Reserve System 
     appointed before January 1, 1984, that is a component of the 
     Retirement Plan for Employees of the Federal Reserve System, 
     established under section 10 of the Federal Reserve Act,

     determined without regard to any deposit or redeposit 
     requirement under either such subchapter or under such 
     benefit structure, or any requirement that the individual 
     become subject to either such subchapter or to such benefit 
     structure after performing the service involved; or''.
       (2) Exception.--Subsection (d) of section 8402 of title 5, 
     United States Code, is amended to read as follows:
       ``(d) Paragraph (2) of subsection (b) shall not apply to an 
     individual who--
       ``(1) becomes subject to--
       ``(A) subchapter II of chapter 8 of title I of the Foreign 
     Service Act of 1980 (relating to the Foreign Service Pension 
     System) pursuant to an election; or
       ``(B) the benefit structure in which employees of the Board 
     of Governors of the Federal Reserve System appointed on or 
     after January 1, 1984, participate, which benefit structure 
     is a component of the Retirement Plan for Employees of the 
     Federal Reserve System, established under section 10 of the 
     Federal Reserve Act (and any redesignated or successor 
     version of such benefit structure, if so identified in 
     writing by the Board of Governors of the Federal Reserve 
     System for purposes of this chapter); and
       ``(2) subsequently enters a position in which, but for 
     paragraph (2) of subsection (b), such individual would be 
     subject to this chapter.''.
       (c) Provisions Relating to Certain Former Employees.--A 
     former employee of the Board of Governors of the Federal 
     Reserve System who--
       (1) has at least 5 years of civilian service (other than 
     any service performed in the employ of a Federal Reserve 
     Bank) creditable under the benefit structure for employees of 
     the Board of Governors of the Federal Reserve System 
     appointed before January 1, 1984, that is a component of the 
     Retirement Plan for Employees of the Federal Reserve System, 
     established under section 10 of the Federal Reserve Act;
       (2) was subsequently employed subject to the benefit 
     structure in which employees of the Board of Governors of the 
     Federal Reserve System appointed on or after January 1, 1984, 
     participate, which benefit structure is a component of the 
     Retirement Plan for Employees of the Federal Reserve System, 
     established under section 10 of the Federal Reserve Act (and 
     any redesignated or successor version of such benefit 
     structure, if so identified in writing by the Board of 
     Governors of the Federal Reserve System for purposes of 
     chapter 84 of title 5, United States Code); and
       (3) after service described in paragraph (2), becomes 
     subject to and thereafter entitled to benefits under chapter 
     84 of title 5, United States Code,
     shall, for purposes of section 302 of the Federal Employees' 
     Retirement System Act of 1986 (100 Stat. 601; 5 U.S.C. 8331 
     note) be considered to have become subject to chapter 84 of 
     title 5, United States Code, pursuant to an election under 
     section 301 of such Act.
       (d) Effective Date.--
       (1) In general.--Subject to succeeding provisions of this 
     subsection, this section and the amendments made by this 
     section shall take effect on the date of enactment of this 
     Act.
       (2) Provisions relating to creditability and certain former 
     employees.--The amendments made by subsection (a) and the

[[Page 29294]]

     provisions of subsection (c) shall apply only to individuals 
     who separate from service subject to chapter 84 of title 5, 
     United States Code, on or after the date of enactment of this 
     Act.
       (3) Provisions relating to exclusion from chapter.--The 
     amendments made by subsection (b) shall not apply to any 
     former employee of the Board of Governors of the Federal 
     Reserve System who, subsequent to his or her last period of 
     service as an employee of the Board of Governors of the 
     Federal Reserve System and prior to the date of enactment of 
     this Act, became subject to subchapter III of chapter 83 or 
     chapter 84 of title 5, United States Code, under the law in 
     effect at the time of the individual's appointment.

     SEC. 203. CERTAIN TRANSFERS TO BE TREATED AS A SEPARATION 
                   FROM SERVICE FOR PURPOSES OF THE THRIFT SAVINGS 
                   PLAN.

       (a) Amendments to Chapter 84 of Title 5, United States 
     Code.--
       (1) In general.--Subchapter III of chapter 84 of title 5, 
     United States Code, is amended by inserting before section 
     8432 the following:

     ``Sec. 8431. Certain transfers to be treated as a separation

       ``(a) For purposes of this subchapter, separation from 
     Government employment includes a transfer from a position 
     that is subject to one of the retirement systems described in 
     subsection (b) to a position that is not subject to any of 
     them.
       ``(b) The retirement systems described in this subsection 
     are--
       ``(1) the retirement system under this chapter;
       ``(2) the retirement system under subchapter III of chapter 
     83; and
       ``(3) any other retirement system under which individuals 
     may contribute to the Thrift Savings Fund through 
     withholdings from pay.''.
       (2) Clerical amendment.--The table of sections for chapter 
     84 of title 5, United States Code, is amended by inserting 
     before the item relating to section 8432 the following:

``8431. Certain transfers to be treated as a separation.''.
       (b) Conforming Amendments.--Subsection (b) of section 8351 
     of title 5, United States Code, is amended by redesignating 
     paragraph (11) as paragraph (8), and by adding at the end the 
     following:
       ``(9) For the purpose of this section, separation from 
     Government employment includes a transfer described in 
     section 8431.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to transfers occurring before, on, 
     or after the date of enactment of this Act, except that, for 
     purposes of applying such amendments with respect to any 
     transfer occurring before such date of enactment, the date of 
     such transfer shall be considered to be the date of enactment 
     of this Act. The Executive Director (within the meaning of 
     section 8401(13) of title 5, United States Code) may 
     prescribe any regulations necessary to carry out this 
     subsection.

     SEC. 204. CLARIFYING AMENDMENTS.

       (a) In General.--Subsection (f) of section 3304 of title 5, 
     United States Code, as added by section 2 of Public Law 105-
     339, is amended--
       (1) by striking paragraph (4);
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (3) by inserting after paragraph (1) the following:
       ``(2) If selected, a preference eligible or veteran 
     described in paragraph (1) shall acquire competitive status 
     and shall receive a career or career-conditional appointment, 
     as appropriate.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if enacted on October 31, 1998.
    TITLE III--AMENDMENT TO THE FEDERAL PROPERTY AND ADMINISTRATIVE 
                         SERVICES ACT OF 1949.

     SEC. 301. TRANSFER OF CERTAIN PROPERTY TO STATE AND LOCAL 
                   GOVERNMENTS.

       Section 203(p)(1)(B)(ii) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 
     484(p)(1)(B)(ii)) is amended by striking ``December 31, 
     1999.'' and inserting ``July 31, 2000. During the period 
     beginning January 1, 2000, and ending July 31, 2000, the 
     Administrator may not convey any property under subparagraph 
     (A), but may accept, consider, and approve applications for 
     transfer of property under that subparagraph.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. McHugh) and the gentleman from Pennsylvania (Mr. Fattah) each 
will control 20 minutes.
  The Chair recognizes the gentleman from New York (Mr. McHugh).
  Mr. McHUGH. Mr. Speaker, I yield myself such time as I may consume.
  I am pleased to bring forward S. 335 with the provisions of the 
House-passed Deceptive Sweepstakes Mailing Bill, H.R. 170, and would 
like to begin by taking the opportunity to thank all of the members of 
the Subcommittee on the Postal Service for their continued interest, 
for the effort they showed in moving this important legislation, and a 
particular tip-of-the-hat to the gentleman from the great State of 
Pennsylvania (Mr. Fattah), our ranking member, for his input and for 
his great assistance in making this legislation stronger and of wider 
appeal to those who are affected by its provisions. I firmly believe 
today, Mr. Speaker, by taking this action, we help to ensure the 
enactment of this important legislation in this year.
  On behalf of the gentleman from Indiana (Mr. Burton), our full 
committee chairman, I must also note that this bill, S. 335, includes 
provisions that it is my understanding the other body has agreed to 
include. Incorporated in the bill is H.R. 807, which passed the House 
under suspension of the rules by voice vote on March 16 of this year 
after being introduced on February 23 by the gentleman from Florida 
(Mr. Scarborough), our Subcommittee on Civil Service chairman, with 
eight original cosponsors including, I might add, the gentleman from 
California (Mr. Waxman), our full committee's ranking member.
  Very briefly, Mr. Speaker, H.R. 807, included as Title II of S. 335, 
provides retirement portability for certain Federal Reserve Board 
employees who take jobs in the executive branch. It would allow those 
employees who participate in the board's FERS-like retirement plan to 
obtain FERS credit for their Federal Reserve years when they transfer 
to another Federal agency. The Federal Reserve already provides such 
reciprocity for employees who transfer to Federal Reserves from other 
Federal agencies. Without this correction, former board employees 
would, I think unfairly, receive smaller annuities upon retirement than 
they otherwise would and otherwise should.
  This title will also correct an inequity in current law that prevents 
certain Federal Reserve employees from withdrawing their funds from the 
Thrift Savings Plan accounts. Finally, one section in this title is 
critically important to the men and women who have served our Nation in 
the Armed Services. It clarifies the Veterans Employment Opportunities 
Act of 1988 to ensure that veterans will receive the benefits that 
Congress intended when it passed that act last year.
  Mr. Speaker, H.R. 3187, also included in this new presentation, 
represents a bill introduced by the gentleman from California (Mr. 
Calvert) which would amend the 1949 Federal Property and Administrative 
Services Act to continue the authority allowing no-cost conveyances of 
surplus Federal property to State and local governments for law 
enforcement and emergency response purposes.
  Under the Federal Property Act, State and local governments or 
eligible nonprofit entities can obtain surplus property at no cost for 
several authorized public purpose programs. These programs include 
education, public health, correctional facilities and public airports. 
A bill that became law in the 105th Congress introduced by the 
gentleman from California (Mr. Calvert) added law enforcement and 
emergency management response purposes to this list. Prior to its 
enactment, however, the bill was amended to include a December 31, 1999 
sunset date for these new public purpose categories.
  There are currently more than 22 pending State and local government 
applications for these purposes nationwide. These new conveyance 
categories have been invaluable for local governments, for enhancing 
their law enforcement and fire and rescue training efforts. These new 
authorities have allowed for an excellent reuse of surplus Federal 
property that would be lost, at least in the main, if we do not take 
some step at this point to extend the current opportunity for the 
Federal authorities to go forward.
  Accordingly, H.R. 3187 provides that during the extension the General 
Services Administration, while not being able to actually convey 
surplus Federal property at no cost for law enforcement and emergency 
response purposes, would, however, retain under the GSA at least the 
ability to consider and approve the applications for transfer during 
this extension.

[[Page 29295]]

  Additionally, prior to December 31, the GSA can convey surplus 
property at no cost for law enforcement and emergency response purposes 
to qualifying State and local governments, and as such this extension 
represents an important sense of relief to those local governments that 
have acted in good faith and stand to lose the receipt of Federal 
surplus properties at no cost absent our action.
  In regard to the underlying bill, S. 335 itself, Mr. Speaker, the 
House has already discussed and debated this measure extensively on 
November 2 when we passed it under suspension of the rules by a voice 
vote. I do not want to reiterate all of the comments made then, as 
important as they were, but let me say just briefly, with the 
authorization that we are about to extend once more on this House 
floor, this body stands to take a great step towards protecting those 
vulnerable, particularly our senior citizens, who have been preyed upon 
far too often by unscrupulous sweepstakes mailers.
  Those individuals, as few as they may be, who have come where the 
laws are apparently insufficient and have used deceptive practices to 
prey upon generally the elderly, but in other measures certainly the 
infirm, those who are most vulnerable, as I said, and in many cases, 
bilking them out of thousands, sometimes tens and even hundreds of 
thousands of dollars of hard-earned money and their life savings.
  Today, this House can make again the statement that this Congress 
will not abide by that kind of activity and we will enact those laws 
necessary to ensure that future sweepstakes proposals are done under 
the guise of full disclosure, that deceptive practices, that misleading 
claims, that facsimile presentations so that checks are made to look 
like actual government documents, can no longer be continued.
  Beyond the efforts that I mentioned of the ranking member and others 
on the committee, I certainly want to extend a particular thanks to the 
gentleman from New Jersey (Mr. LoBiondo), who really brought this 
House's attention to this issue last year when he began formulating a 
response. We also owe great thanks to others, including the gentleman 
from California (Mr. Rogan); the gentleman from Florida (Mr. McCollum); 
and of course the language in this bill is based, in large measure, 
upon Senator Susan Collins's comprehensive bipartisan sweepstakes 
mailing legislation which passed the other body by a 93-to-0 vote.
  So, Mr. Speaker, as my colleagues can see, we have drawn from many 
sources here to craft what I believe is not just a reasonably balanced, 
but a tremendously effective and most needed piece of legislation. I 
urge its immediate and overwhelming approval.
  Mr. Speaker, I reserve the balance of my time.
  Mr. FATTAH. Mr. Speaker, I yield myself such time as I may consume.
  I rise in support of Senate bill 335, the Deceptive Mail Prevention 
and Enforcement Act. As has been mentioned by my colleague and the 
majority chairman from the great State of New York, a number of other 
provisions have been added to this bill. H.R. 807, which would respond 
I think appropriately to some adjustments needed and retirement 
opportunities for Federal Reserve Board employees, and H.R. 3187, 
having to do with the disposition of surplus Federal property.
  I would note that under the disposition of Federal property bill, 
that no property will be able to be disposed of, but that this 
extension will allow a continuation of applications and appropriate 
consideration by the GSA of proposals by local governments and 
nonprofits for usage of those Federal properties.
  I would like to say that I think that on the primary bill, the 
sweepstakes bill, that we have done a very good job, and I would like 
to compliment the work of the gentleman from California (Mr. Condit) on 
my side of the aisle who was also a prime sponsor, cosponsor of the 
original legislation. I think that this bill as presented now and as 
agreed to by the Senate appropriately addresses the need for 
curtailment of some of the excesses that we have seen in terms of 
sweepstakes mailings.
  I am particularly pleased that adopted and embraced in this bill is 
my amendment that will provide a private right of action for 
individuals in relationship to abuses that they face. Again, I am 
pleased that the committee found it appropriate, the conference 
committee, to endorse and embrace the amendment that I offered that 
would allow a private right of action to individual citizens who want 
to seek redress for excesses that we all have found all too common 
through parts of this industry.
  So I rise in support of S. 335. I would hope that the House would 
adopt it. I think it is appropriate, and moderate in its approaches, 
but I think it will get the job done. I do want to thank the majority 
Chairman, because I think he has helped guide this legislation through, 
and on this evening we are going to see the result of his hard work.
  Mr. Speaker, as the Ranking Minority member of the Subcommittee on 
the Postal Service, I am pleased to join Chairman McHugh in the 
consideration of S. 335, the Deceptive Mail Prevention and Enforcement 
Act. In addition, I support the consideration of this measure amended, 
with the text of the following three bills:
  H.R. 170, the Deceptive Mail Prevention and Enforcement Act of 1999, 
as passed by the House by voice vote on November 2, 1999;
  H.R. 807, the Federal Reserve Board Retirement Portability Act, as 
passed by the House by voice vote on March 16, 1999, and
  H.R. 3187, legislation amending the Federal Property and 
Administrative Services Act of 1949 to temporarily continue authority 
relating to transfers of certain surplus property to State and local 
governments for law enforcement and emergency response purposes.
  H.R. 170, was introduced on January 6, 1999, by Congressmen LoBiondo 
and Condit, and reported on October 28, 1999, from the Government 
Reform Committee, and passed unanimously by the House on November 2, 
1999.
  While closely mirroring the sweepstakes language contained in S. 335, 
H.R. 170, adds two very important and critical consumer protection 
provisions. First, although we provided the Postal Service with 
subpoena authority to combat sweepstakes fraud, we have limited the 
scope of subpoena authority to only those provisions of law addressing 
deceptive mailings, and required the Postal Service to develop 
procedures for the issuance of subpoenas.
  Second, we have added language which I authored, establishing a 
private right of action to sweepstakes legislation. The private right 
of action would allow consumers to file suit in state court if a 
sweepstakes promoter continues to send mailings despite having 
requested removal from a mailer's list. This is an important 
enforcement tool particularly with respect to the problem of unwanted 
mailings. I am pleased to note that it is supported by the National 
Consumers League, the American Association of Retired Persons and the 
Direct Marketing Association.
  The issue of consumer protection, whether it relates to telemarketing 
fraud or sweepstakes deception is receiving the attention it deserves. 
Just last week, the United States Inspection Service joined key 
government and civic organizations at a national press conference to 
launch the most ambitious fraud prevention initiative in history. On 
November 16, 1999, a jumbo postcard containing valuable mail and 
telemarketing fraud prevention tips will be mailed to every home in 
America. A portion of the card reads, ``Fraudulent Telemarketers: 
They've got your number . . . now they want your money!'' I am pleased 
my colleagues have recognized the importance of consumer protection and 
voted support a private right of action!


                                h.r. 807

  H.R. 807, the Federal Reserve Board Retirement Portability Act was 
introduced by Congressman Scarborough, Chairman of the Subcommittee on 
Civil Service. It is cosponsored by the Ranking Minority Member of that 
subcommittee, Congressman Cummings and the Ranking full committee 
member, Congressman Waxman. It was passed unanimously by the House on 
August 2, 1999.
  The legislation would amend title 5, of the U.S. code pertaining to 
government organization and employees, to provide portability of 
service credit for persons who leave employment with the Federal 
Reserve Board to take positions with other Government agencies.
  Currently, if an employee of the Federal Reserve Board leaves to work 
for another federal agency, the employee is required to join the

[[Page 29296]]

Federal Employees Retirement System (FERS). Under the current FERS 
statute, time spent working at the Board after 1988, does not count as 
``creditable service'' towards a FERS annuity. As a result, these 
employees will receive smaller pensions upon retirement.
  H.R. 807 will correct this problem and also allow current and future 
Federal employees who transfer to the Board, to transfer the funds from 
their FERS Thrift Savings Accounts (TSP) to the Federal Reserve Thrift 
Savings Plan.
  In addition, H.R. 807 contains clarifying language ensuring that 
America's veterans are hired as Career Status appointees. Apparently, 
the Office of Personnel Management (OPM) interpreted the Veterans' 
Employment Opportunities Act of 1998, to mean that veterans could be 
hired for a Federal job as Schedule B appointees, rather than as Career 
Status appointees. Schedule B appointments are not afforded the same 
rights and privileges as Career Status employees.
  The Veterans' Employment Opportunities Act improves the ability of 
veterans to compete during the Federal hiring process and extends 
veterans preference to all branches of the Federal government. Both the 
Senate and OPM have agreed that language was needed to clarify the 
original intent of Congress.


                               H.R. 3187

  H.R. 3187, which would amend the Federal Property and Administrative 
Services Act of 1949 to temporarily continue authority relating to 
transfers of certain surplus property to State and local governments 
for law enforcement and emergency response purposes, was introduced by 
Congressman Calvert on November 1, 1999.
  The Federal Property Act is the basic law regarding the acquisition, 
utilization, and disposition of federal property. Under the Federal 
Property Act, real property that is no longer needed by a federal 
agency is reported to the General Services Administration (GSA) as 
excess property. Excess property is screened for reuse by other federal 
agencies. If another federal agency determines that it can use the 
property, it is reused. If there is no other federal use for the 
property, it becomes available for disposal as ``surplus'' real 
property.
  Under existing law, eligible state and local government units and 
certain nonprofit institutions may acquire surplus real property for 
public benefit purposes at monetary discounts of up to 100%. Public 
benefit discount conveyance categories include public parks and 
recreation, historic monuments, public airports, health, education, 
correctional facilities, highways, and wildlife conservation. H.R. 3187 
would establish a temporary public benefit conveyance for law 
enforcement and emergency services training.
  Current authority expires by December 31, 1999, the sunset date for 
transfers of surplus federal property to state and local government at 
substantial discounts for law enforcement or emergency management 
response purposes. Under H.R. 3187, the sunset date would be extended 
to July 31, 2000. While, no properties can be conveyed under this 
authority, the GSA can accept, consider, and approve applications for 
transfer.
  Currently, at least 22 jurisdictions around the country have 
submitted applications to acquire surplus federal property for law 
enforcement or emergency response purposes. At least three of these 
jurisdictions have successfully acquired the surplus property for law 
enforcement and emergency response. The current expiration date for 
this program would jeopardize existing applications, as well as the 
filing of new ones.
  I am pleased that the House is moving this important measure, S 335, 
as amended and I urge all my colleagues to vote in support of the bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. McHUGH. Mr. Speaker, I yield myself 15 seconds to just briefly 
respond to the gracious comments of the ranking member by saying, as he 
noted and as I want very much to make clear, his input and constructive 
suggestions were very important to making this, I think, a better bill 
than when we received it.
  Mr. Speaker, I am pleased and honored to yield 2 minutes to the 
gentleman from New Jersey (Mr. LoBiondo), whose name I mentioned just 
moments ago, and who is certainly, from my perspective, the individual 
who first brought this situation to light and, through his hard work, 
helped articulate a response to the problem for our attention.
  Mr. LoBIONDO. Mr. Speaker, I rise in very strong support of this 
legislation. I most importantly want to thank all of my colleagues for 
joining in to recognize an issue that has impact on so many in our 
society that have been made vulnerable by dishonest marketing 
practices. I want to especially thank the gentleman from New York (Mr. 
McHugh) for his leadership. The hearing that we had earlier this year 
really served to focus and highlight on the problem. I want to thank 
the gentleman from Philadelphia (Mr. Fattah) for his efforts, the 
gentleman from California (Mr. Condit) for gaining so many cosponsors 
on the other side, the gentleman from California (Mr. Waxman), and of 
course the gentleman from Indiana (Mr. Burton) for all of his help in 
this area.
  When I first went to senior centers and asked how many had received 
some of these mailings, it was unbelievable the stories that took 
place, and each one of our districts can have examples of seniors who 
have fallen prey and unfortunately in many cases have lost their life 
savings to these unfortunate marketing practices.
  This bill will send a very strong message. We are acting for the 
people of the United States of America who really deserve our help, the 
seniors of America. I thank everyone.

                              {time}  1915

  Mr. FATTAH. Mr. Speaker, I yield 1 minute to the gentleman from the 
great State of Maryland (Mr. Cardin), who is a member of the Committee 
on Ways and Means and also is a better golfer than me.
  Mr. CARDIN. I am not sure about the last comment, Mr. Speaker, but 
let me thank my friend, the gentleman from Pennsylvania, for his work 
on this legislation and all that is involved in bringing forward the 
sweepstake legislation.
  I know in my district I have heard from many of my seniors who have 
been victimized by believing that they have won a sweepstake, only to 
send back information, and the only thing that they found out is that 
it cost them money to buy magazine subscriptions. They have spent 
thousands of dollars in hopes of winning the sweepstake that they never 
won.
  The Attorney General in my State, Joe Curran, has documented many, 
many abuses by many, many sweepstake operators. This is true around the 
Nation.
  This is an important bill. I am glad we are able to move it forward. 
It is going to affect thousands of our constituents in each one of our 
districts. Hopefully it is going to change the practice of magazine 
owners or magazine companies in the way that they sell their 
subscriptions. They have to be more direct with our constituents and 
let them know that they have not won a sweepstake.
  Mr. McHUGH. Mr. Speaker, I yield 2 minutes to the gentleman from Utah 
(Mr. Hansen), a good friend of this bill and a colleague of mine on the 
Committee on Armed Services.
  As I mentioned, Mr. Speaker, there were many who had input into this 
process, and he is one of the gentlemen who has spoken to me about a 
very important related issue with respect to billing processes through 
the mail.
  Mr. HANSEN. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, I think this is an excellent piece of legislation. I 
commend the gentleman from Pennsylvania (Mr. Fattah) and the gentleman 
from New York (Mr. McHugh) for the hard work they have done on this.
  Mr. Speaker, a lot of people do not realize that at the end of these 
sweepstakes they enter, what do they do? A lot say they buy something.
  I think it is very interesting. I went down to my little town where I 
live and where the gentlemen hold court that are all retired and have 
their coffee every morning. They told me, they said, ``I buy this 
stuff,'' and they talked about a certain magazine, nine of them sitting 
around the table. ``We all bought this magazine popular in the Second 
World War. We paid it immediately.''
  And then what happened? They kept billing them and billing them and 
billing them, and they sent their canceled check and nothing would 
happen. This is an outfit out of Florida, and one time after another.
  I started checking into it. I said, well, I think you folks do not 
understand it. I put one in, paid mine, and

[[Page 29297]]

immediately they billed me. I paid it, and I got billed five times in a 
row. I finally had to call them up to get them off of it. I tried that 
a number of other places. I tried it with one on home repairs, and they 
billed me and billed me, and finally turned it over to a collection 
agency.
  Then I looked at my father-in-law who is 89 years old. I pay all his 
bills for him. He paid one bill 10 times because he did not realize he 
had been billed all these times. I commend the gentleman for what he is 
doing. I would point out, I think there is a predator billing problem 
going on in America right now. It has an a lot to do with these 
magazines and all this other paraphernalia they sell through the mail.
  There is no way on Earth these people get a response. They send a 
letter, a copy of their canceled check, and nobody ever responds. There 
ought to be a way, Mr. Speaker, and maybe it is to the point that this 
organization called the U.S. House and Senate should do something about 
it, to take care of the people who are getting bilked by these people.
  I thank the gentleman, and I support this legislation. I wanted to 
add that one further note.
  Mr. FATTAH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, in conclusion, I would like to say that the first 
amendment that I passed on the floor of this House had to do with going 
after telemarketing fraud. This sweepstakes issue is just another, I 
think, head of the same animal.
  It is of note that just last week the United States Postal Service, 
along with key government and civic leaders, had a press conference to 
announce a nationwide effort to go after telemarketing fraud in a very 
serious way, and I just want to say that I think the House this evening 
collaborates in that effort by the passage of this very important piece 
of legislation.
  I thank my colleague, the gentleman from New York (Mr. McHugh), 
someone who I have had the pleasure to work with for a few years on 
this committee, and we have gotten a lot done.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. McHUGH. Mr. Speaker, I yield myself such time as I may consume.
  As we have heard today, this is a good bill. It needs to be acted on 
now, so let us do that.
  Mr. McHUGH. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Walden of Oregon). The question is on 
the motion offered by the gentleman from New York (Mr. McHugh) that the 
House suspend the rules and pass the Senate bill, S. 335, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended, and the Senate bill, as amended, was 
passed.
  A motion to reconsider was laid on the table.

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