[Congressional Record (Bound Edition), Volume 152 (2006), Part 18]
[Extensions of Remarks]
[Pages 23077-23078]
[From the U.S. Government Publishing Office, www.gpo.gov]




INTRODUCING ``AMERICAN NATIONAL RED CROSS GOVERNANCE MODERNIZATION ACT 
                               OF 2006''

                                 ______
                                 

                         HON. GEORGE RADANOVICH

                             of california

                    in the house of representatives

                      Wednesday, December 6, 2006

  Mr. RADANOVICH. Mr. Speaker, charitable giving makes a real 
difference in the lives of people in need, and I have continually 
sought ways to encourage all Americans to give more. More than a 
government program or grant or stipend--nothing reflects better the 
spirit of man caring for his fellow man than the act of freely, 
benevolently giving out of his own pocket. I truly believe that by 
increasing charitable giving, we can make a real difference in the 
world. The Red Cross is the symbol that best represents charitable 
giving to most Americans. That is why I became involved in this effort 
to make the American Red Cross a more effective organization, capable 
of carrying out its mission of meeting critical disaster and emergency 
needs around the

[[Page 23078]]

globe. We need to better enable the Red Cross to meet the needs of 
victims from natural disasters like Katrina, the tsunamis, and the 
California wildfires.
  Yesterday, I introduced the ``American National Red Cross Governance 
Modernization Act of 2006.'' This bill is in large part the result of a 
report done by the Red Cross, entitled American Red Cross Governance 
for the 21st Century, and the hard work and dedication of Senator 
Charles Grassley and his staff. Earlier this year the American Red 
Cross undertook its first significant review of internal governance 
since 1947, in an effort to modernize and strengthen its governance 
structure and practice. In February of this year, the Red Cross 
challenged its Governance Committee to conduct a comprehensive review 
and analysis of the Board of Governors, the role of management, the 
relationship with local chapters, and the transparency and 
accountability of the Red Cross. To conduct this review, the Committee 
brought together an independent panel of the country's preeminent 
governance experts and with this panel produced recommendations that 
were unanimously approved by the Board of Governors in October.
  The most important aspects of effectively operating a large 
corporation are governance, oversight, and accountability. This 
carefully crafted legislation will modernize the Red Cross governance 
structure by decreasing the size of the Board of Governors and 
clarifying their role as being responsible for governance, not day-to-
day operations. The bill subjects the Red Cross to enhanced oversight 
by creating an Office of the Ombudsman that reports annually to 
Congress, and ensuring that oversight is a primary responsibility of 
the Board. Through the legislation, the Comptroller General is 
authorized to review Red Cross involvement in any Federal program or 
activity, and the bill includes findings that Congress expects the Red 
Cross to maintain open communications with State regulators of 
charitable organizations and cooperate with them as necessary. These 
provisions will help the Red Cross achieve greater transparency and 
accountability.
  Governance, oversight, and accountability are the hallmarks of an 
efficient corporation that meets the needs of its consumers. In the 
case of the Red Cross, those needs are great and, unfortunately, 
continue to grow. But the changes made by the American National Red 
Cross Governance Modernization Act of 2006 will better equip the Red 
Cross to achieve its mission worldwide. We need to pass this bill as 
soon as possible to enable the Red Cross to begin making these changes. 
This will allow the Red Cross to continue to be a major conduit for 
charitable givers and better utilize the generosity of all Americans.
  That is why, Mr. Speaker, I have introduced the American National Red 
Cross Governance Modernization Act and strongly encourage my colleagues 
to cosponsor and pass this important legislation.

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