[Congressional Record (Bound Edition), Volume 145 (1999), Part 20]
[Extensions of Remarks]
[Pages 29663-29664]
[From the U.S. Government Publishing Office, www.gpo.gov]



             DECEPTIVE MAIL PREVENTION AND ENFORCEMENT ACT

                                 ______
                                 

                               speech of

                          HON. JOHN M. McHUGH

                              of new york

                    in the house of representatives

                       Tuesday, November 9, 1999

  Mr. McHUGH. Mr. Speaker, 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 take this opportunity to thank the members 
of the Subcommittee on the Postal Service for the interest they showed 
in moving this important legislation, particularly our ranking member, 
the gentlemen from Pennsylvania, Mr. Fattah, for his input in making 
this legislation stronger and of wider appeal to those affected by its 
provisions. By taking this action today, we help to ensure enactment of 
this important legislation in 1999.
  On behalf of our full committee chairman, Mr. Burton, I must also 
note that S. 335 includes additional provisions that, it is my 
understanding, that the other body has agreed to include in the bill. 
Incorporated in the bill is H.R. 807, which passed the House under 
suspension of the rules by voice vote on March 16, 1999, after being 
introduced on February 23 by our Civil Service Subcommittee chairman, 
Mr. Scarborough of Florida, with eight original cosponsors, including 
the committee's ranking member, Mr. Waxman of California.
  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 will 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 the Federal Reserve from other federal 
agencies. Without this correction, former Board employees would receive 
smaller annuities upon retirement than they otherwise should.
  This title will also correct an inequity in current law that prevents 
certain Federal Reserve employees from withdrawing their funds from 
their 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 1998 to ensure that veterans will receive the 
benefits that Congress intended when it passed that act last year.
  Title III includes H.R. 3187, a bill introduced by Representative Ken 
Calvert, that 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 pubic airports. 
A bill that became law in the 105th Congress, introduced by 
Representative Calvert, added law enforcement and emergency management 
response purposes to this list. Prior to its enactment, however, Mr. 
Calvert's bill was amended to include a December 31, 1999 sunset date 
for these new public purpose categories.
  Three properties have been conveyed to local governments, under these 
authorities. There are more than 22 pending State and local government 
application nationwide. These new conveyance categories have been 
invaluable for local governments who are enhancing their law 
enforcement, and fire and rescue training efforts. These new 
authorities have allowed for an excellent reuse of surplus Federal 
property.
  H.R. 3187 provides that during the extension, the General Services 
Administration may not convey surplus Federal property at no cost for 
law enforcement and emergency response purposes. However, the General 
Services Administration could at least accept, consider, and approve 
applications for transfer during this extension. Additionally, prior to 
December 31, 1999, the General Services Administration can convey 
surplus property at no cost, for law enforcement and emergency response 
proposes, to qualifying State and local government entities.
  In regard to S. 335 itself, Mr. Speaker, the testimony from the 
General Accounting Office at the subcommittee's August 4 hearing summed 
it up well: when it comes to deceptive mail, which includes sweepstakes 
and other kinds of mailed material, ``Consumers' Problems Appear 
Substantial.'' We are all concerned by the way some sweepstakes 
mailings entice consumers, particularly senior citizens, into making 
unwanted purchases under the mistaken impression that this will enhance 
their changes of winning a major prize.
  As I have stated previously, sweepstakes, themselves, are not evil. 
They are an effective marketing tool that are accessed by willing and 
often highly satisfied millions. But experience teaches, us, where the 
laws fall short, the dishonest will flock and honest people will 
suffer. Now is the time to correct these shortfalls.
  S. 335, as amended with the language of the House passed H.R. 170, 
was carefully developed with our ranking member, Mr. Fattah, and the 
bill's original author, the gentleman from New Jersey, Mr. LoBiondo. 
Keeping with H.R. 170's objective of ensuring honesty in sweepstakes 
mailings, the amended language incorporates and responds to the 
extensive testimony submitted at the hearing conducted by the 
Subcommittee on the Postal Service, and was agreed to by the House 
under suspension of the rules on November 2.
  The gentleman from New Jersey, Mr. LoBiondo is to be commended for 
championing the necessary changes to our nation's postal laws in this 
area, and I deeply appreciate the assistance of the gentleman from 
Pennsylvania, Mr. Fattah. In fact, the language before us today 
reflects the input of other Members who also introduced bills, 
including the gentleman from California, Mr. Rogan, and the gentleman 
from Florida, Mr. McCollum, authors of H.R. 237 and H.R. 2678 
respectively. This language is also based upon Senator Susan Collins' 
comprehensive, bipartisan sweepstakes mailing legislation, which passed 
in the other body, by a 93-0 vote on August 2. Mr. Speaker, you can see 
we have drawn from many sources to craft what I believe is a reasonably 
balanced and effective piece of legislation.
  S. 335, as amended, would establish strong consumer protections to 
prevent a number of types of deceptive mailings. It would impose 
various requirements on sweepstakes mailings, skill contests, facsimile 
checks, and mailings made to look like govenrment documents. It would 
establish strong financial penalties, provide the Postal Service with 
additional authority to investigate and stop deceptive mailings, and 
preserve the ability of states to impose stricter requirements on such 
mailings.
  I should note that in adopting H.R. 170, the House made changes to 
the notification system required by those sending skill contests or 
sweepstakes mailings. The House increased the number of days after 
which a name must be removed from such mailings lists from 35 to 60 
days due to concerns raised by nonprofit mailers in the House hearing; 
the nonprofit

[[Page 29664]]

mailers did not testify before the other body. In addition, the House 
included the opportunity for a consumer to bring an individual, private 
right of action in State court when they receive a mailing after 
previously requesting to be removed from the mailing list of a skill 
contest or sweepstakes promoter. The House included provisions stating 
that promoters will have an affirmative defense against such actions if 
they have established and implemented, with due care, reasonable 
practices and procedures to effectively prevent mailings in violation 
of the section allowing names to be removed.
  Pursuant to the new section 3016(d), promoters of skill contests or 
sweepstakes must establish and maintain a notification system that will 
allow for any individual to elect to have the name and address of that 
individual excluded from all lists of names and addresses used by that 
promoter to mail any skill contest or sweepstakes. The notification 
system in the bill passed by the Senate, and modified by the House, 
does not require that companies establish a specific type of system to 
allow consumers to request the removal of their names from mailing 
lists. The legislation requires companies to include in every mailing 
the address or a toll-free telephone number of the notification system, 
but does not require that consumers submit their request in writing to 
comply with the removal system. Companies are encouraged to adopt a 
consumer friendly system for the removal of names from their mailing 
lists, which may include the ability to have names removed by means of 
a call to a toll-free number. Companies using such a system would not 
be required to additionally require a consumer to provide their name in 
writing, but may wish to elect to verify the validity and accuracy of 
the consumer's election to be removed from their mailing list. Any 
appropriate method of establishing a record of removal requests by 
consumers would comply with the requirements of Section 8(d). This 
requirement should not require a promoter originating sweepstakes or 
skill contests on behalf of multiple unaffiliated entities to honor 
removal requests made to one entity in mailings sent on behalf of any 
other entity.

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