[Congressional Record (Bound Edition), Volume 162 (2016), Part 3]
[Senate]
[Pages 3102-3105]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. BOXER:
  S. 2674. A bill to authorize the President to provide major disaster 
assistance for lead contamination of drinking water from public water 
systems; to the Committee on Homeland Security and Governmental 
Affairs.
  Mrs. BOXER. Mr. President, today I rise to address the crisis of lead 
contamination in drinking water that we are seeing all across this 
Nation. It is time for us to come together and solve these problems. We 
have all been outraged by the crisis in Flint, where we

[[Page 3103]]

know children and families are being poisoned by lead in their drinking 
water.
  My colleagues from Michigan, Senators Stabenow and Peters, have an 
excellent bipartisan bill--which Senator Inhofe and I helped to 
negotiate--that would provide emergency relief to address this crisis. 
The people of Flint need this relief now. So I call on any of those 
holding up this bill to get out of the way and let this legislation 
pass immediately. The crisis in Flint has also brought attention to the 
broader issue of lead in drinking water in communities throughout our 
Nation.
  I want to read to you some headlines from just the last few weeks. 
Here is one from the Clarion-Ledger in Jackson, MS: ``Pregnant women, 
kids cautioned over Jackson water, lead.'' That is February 25, 2016.
  From Newsweek: ``With lead in the water, could Sebring, Ohio, become 
the next Flint?'' That is January, 27, 2016.
  From the Associated Press: ``Elevated Lead Levels Found in Newark 
Schools' Drinking Water.''
  In Charlotte, the Charlotte Observer: ``Lead in water not confined to 
Flint.'' That is January 30, 2016.
  Whether it is Flint, MI; Newark, NJ; Jackson, MS; or Durham, NC--or 
shall I name some places that are going to hit us--the American people 
have a right to expect clean, safe drinking water when they turn on 
their faucets.
  It is clear that this is a national crisis that demands a national 
solution going forward. So that is why today I have introduced new 
legislation, the Lead in Drinking Water Disaster Act. We are doing this 
because, should there be more Flints, we want to have a better way to 
move forward.
  Currently, the President can declare a major disaster for 
catastrophes such as hurricanes, tornadoes, earthquakes, tsunamis, 
storms, droughts, fires, floods, and explosions. Now, sometimes those 
fires, floods, and explosions are manmade and, yet, we are able to act 
through FEMA, or the Federal Emergency Management Agency. But lead in 
drinking water is not on the list of major disasters covered under 
FEMA's rules.
  It is critical that future Presidents do not have their hands tied 
because the definition of a major disaster does not include lead in 
drinking water. My bill ensures that a lead-contamination crisis would 
be considered a disaster, which it clearly is.
  Take a look at the color of the water coming out of the fountains 
here--the faucets. Nobody could face this in their homes. You would get 
your kids out of there so fast. Current law doesn't think this is a 
disaster. So I think this simple way I have of moving forward should be 
attractive to colleagues. I hope they will sign on to this very simple 
bill.
  The way it would work is that the Governor in any State that is hit 
by this would ask the President for a major disaster declaration. So 
for all of my colleagues who feel we should process these things 
through the State, that is exactly what happens in my bill. If the 
President agrees, FEMA would provide immediate assistance to protect 
families from lead in the water.
  What we do in this legislation is we name several agencies who would 
help create the plan to address the emergency. It would be, in addition 
to FEMA, Health and Human Services, the EPA, and the Army Corps of 
Engineers. They would work together to create a plan to resolve the 
crisis.
  We can see what is happening to the kids in Flint. Instead of doing 
their afterschool activities--look how sweet they are--they are 
carrying bottles of water throughout their community.
  Look, there is no safe level of lead for children. The effects of 
exposure are generally irreversible. Lead harms the developing brains 
and nervous systems of children and babies. It can cause miscarriage, 
stillbirths, and infertility in both men and women. People with 
prolonged exposure to lead may be at risk for high blood pressure, 
heart disease, and kidney disease.
  What is the extent of this problem? Millions of homes across America 
receive water from pipes that date back to an era before scientists 
knew of the harm caused by lead exposure. While we take steps toward 
investing in modernizing our water infrastructure, which I hope we will 
do as we write a new Water Resources Development Act--Senator Inhofe 
and I are very hard at work in doing just that--we also have to step in 
and help communities that are in crisis right now.
  I want to conclude with this. Again, take a look at the drinking 
water coming out of the tap. Would anyone in the Senate stand still for 
a minute if their children or grandchildren were in a situation where 
this was the drinking water, this was the bathing water? We know there 
is no way we would ever allow that to happen.
  No American should ever have to drink water that puts their health 
and the health of their children at risk. I hope we take action by 
passing the emergency legislation by the Michigan Senators this week. 
The children and families of Flint should not have to wait one more 
day.
  After we pass that measure, which addresses itself just to Flint, MI, 
I hope we will take up my legislation to help future Presidents address 
this public health threat, which is going to pop up all over this great 
Nation of ours. We must be prepared. We cannot tie the hands of this 
President or any future President.
                                 ______
                                 
      By Mr. MENENDEZ (for himself, Mr. Schumer, Mr. Brown, Mr. 
        Blumenthal, Ms. Warren, and Mr. Booker):
  S. 2675. A bill to provide for the adjustment of the debts of the 
Commonwealth of Puerto Rico, and for other purposes; to the Committee 
on Finance.
  Mr. MENENDEZ. Mr. President, I rise to be a voice for the 3.5 million 
American citizens living in Puerto Rico, the 200,000 Puerto Ricans who 
have served in our Armed Forces in every conflict since World War I, 
and the 20,000 who currently wear the uniform and put their lives on 
the line for our country.
  I rise to introduce a comprehensive stability and recovery package 
that restores fairness, ensures accountability, and gives Puerto Rico 
the tools it needs to dig itself out of this hole. And I rise to 
implore this Congress to act before it is too late.
  Let me thank Senators Schumer, Brown, Warren, Cantwell, Blumenthal, 
and Booker for supporting these efforts and working so hard on behalf 
of the people of Puerto Rico. I also want to thank Congressman 
Pierluisi, who coauthored the tax sections of this bill along with 
parts of the healthcare titles.
  Finally, I want to thank Governor Padilla for his incredible 
leadership on the island and for strongly endorsing our legislation. 
The people of Puerto Rico are fortunate to have a Governor who cares 
deeply about their lives and is so dedicated to putting them first and 
above politics.
  Let me put it this bluntly: Puerto Rico is on the brink of default 
and staring into the abyss. For the better part of the past year, the 
government has been compelled to take drastic and unprecedented actions 
just to avoid a total default of the central government. They have 
closed schools and hospitals, they have laid off police officers and 
firefighters, and they have raised taxes on businesses and individuals. 
But all the spending cuts and tax hikes in the world will not make a 
dent in this crisis unless Puerto Rico has the ability to restructure 
its debts. That is because servicing the government's $72 billion debt 
is swallowing a massive 36 percent of the island's revenue. That is 36 
cents of every dollar the government takes in going not to roads or 
bridges and schools but to bondholders instead. This percentage is six 
times the U.S. State average and simply unsustainable by any measure.
  In fact, despite all we hear about Puerto Rico's significant annual 
budget deficits, the island would actually be running a surplus--a 
surplus--if it didn't have to make debt payments. Let me repeat that: 
It would have a surplus.
  These debt service payments act like an albatross and handcuff the 
people of Puerto Rico, preventing them from investing in their economy. 
Fewer resources for education, infrastructure, and essential services 
cause a death

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spiral as talented workers opt to leave the island, businesses are 
shuttered, and revenue drops even further. That is why the first and 
most important step we must take is to give Puerto Rico the ability to 
restructure its debt in an orderly fashion--a right that they had at 
one time and that was surreptitiously stripped out. There is no 
legislative history as to why it was stripped out, but they had this 
right. This is not novel. Our legislation would in essence do just 
that, providing a fair and reasonable way for Puerto Rico to 
restructure all of its debts while avoiding a costly race to the 
courthouse that would result in years--years--of costly litigation. But 
before Puerto Rico can even access this authority, it needs to 
affirmatively opt in and accept the establishment of an independent 
fiscal stability and reform board and create a chief financial officer.
  This both ensures that any restructuring plan is based on objective 
and independent analysis of the island's situation and provides 
assurances to creditors that future governments will adhere to a 
prudent long-term fiscal plan, while affirming and respecting Puerto 
Rico's sovereignty.
  Once Puerto Rico opts in, it receives an automatic 12-month stay to 
give government officials the necessary breathing room to organize 
their finances and develop a sustainable 5-year fiscal plan upon which 
annual budgets and their restructuring proposal will be based.
  Once the Governor submits a restructuring proposal, a judge selected 
by the First Circuit Court of Appeals would have to confirm that it 
complies with the fiscal plan, protects the rights of pensioners, and, 
if feasible, does not unduly impair general obligation bonds.
  Our process follows precedent by giving creditors a voice and the 
ability to object in court, and it ultimately gives an independent 
judge the authority to ensure that any plan is fair and reasonable. In 
order to ensure the long-term fiscal plan is followed--not just now, 
but in the future--our legislation gives the independent board the 
power to review annual budgets and future debt issuances and to 
exercise strong oversight and transparency powers.
  If future budgets do not comply with the fiscal plan, the board has 
the authority to issue a vote of no confidence, which will send a 
strong and unequivocal message to the legislature, to capital markets, 
and to the Puerto Rican people that the proposed path is unsustainable, 
which, in turn, will provide much needed transparency and 
accountability to the budgeting process.
  At the same time, we are careful to affirm the fundamental pillars of 
democracy by making the board of, by, and for the people of Puerto 
Rico. The board will consist of nine members chosen by the Governor of 
Puerto Rico, its legislature, both parties, the Supreme Court, and the 
President of the United States. At least six of the board members must 
be full-time residents of Puerto Rico, at least six must have knowledge 
of its history, culture, and socioeconomics, and all members--all 
members--must have financial and management expertise.
  This structure strikes the proper balance by providing strong and 
independent oversight and accountability while still respecting the 
sovereignty and democratic rights of the people of Puerto Rico.
  It is not a bailout--far from it, in fact. This proposal wouldn't 
cost the U.S. Treasury a penny--not a dime--and, because it is limited 
to the territories, wouldn't have a contagion effect on the broader 
municipal market.
  As I have said before, giving Puerto Rico the flexibility to 
restructure its debt is the top priority and a prerequisite for any 
legitimate recovery plan. But it is also clear that the lack of health 
care funding parity is adding pressure to the overall financial 
situation as the island's health care system accounts for 20 percent of 
the island's economy, and it is responsible for a third of its overall 
debt burden.
  Currently, Puerto Rico's Medicaid Program, rather than being 
reimbursed for necessary costs, is capped. Not only is it capped, it is 
set to hit a funding cliff as soon as mid-2017. When this happens, the 
island will instead receive funding to cover only a very small portion 
of its Medicaid costs, a burden no State could handle.
  The second piece of our legislation fixes this by moving Puerto Rico 
toward a Medicaid system that provides stable funding for the long 
term. Additionally, there are several policies in Medicare that treat 
the island differently from the rest of the Nation, leaving providers 
and seniors to face unfair penalties and low reimbursements.
  This bill eliminates many of these discrepancies to more accurately 
align Medicare policies in Puerto Rico with the rest of the country. As 
citizens of the United States--and I emphasize that because sometimes 
Members of Congress have asked me whether they need an American 
passport to go to Puerto Rico. I thought they were joking, but they 
were serious. As citizens of the United States, it is only fair that 
Puerto Ricans be afforded the same access to care, coverage, and health 
benefits as everyone else.
  Finally, our legislation would incentivize Puerto Rican workers to 
enter the formal economy and give families the help they need to raise 
their children by providing parity to the island for the earned-income 
tax credit and child tax credit. Praised by both Republicans and 
Democrats as one of the most effective tools to combat poverty and 
encourage workers to enter the labor market, the earned-income tax 
credit is currently unavailable to the people of Puerto Rico. However, 
as American citizens, all it takes for a resident of Puerto Rico to 
become eligible for a credit is a short plane ride to Miami.
  This is just another reason why so many Puerto Ricans have fled the 
island and taken up residence on the mainland. It makes no sense to 
prohibit American citizens living in Puerto Rico from taking advantage 
of this important credit, especially with such a stubbornly lower labor 
participation rate.
  Our legislation corrects this inequity, providing equal treatment for 
all American citizens, regardless of whether they reside in Puerto Rico 
or in the States.
  I shouldn't need to remind this body that from the infancy of our 
Nation, the people of Puerto Rico have been there for us and with us, 
and now we need to be there for them. Puerto Rico was ceded to the 
United States in 1898 after the Spanish-American War. Less than two 
decades later, in 1917, Congress passed the Jones-Shafroth Act, 
granting American citizenship to the residents of the island. But even 
long before they were granted U.S. citizenship, Puerto Ricans have had 
a long and profound history of fighting on the side of America.
  As far back as 1777, Puerto Rican ports were used by U.S. ships, 
enabling them to run British blockades and keep commerce flowing, which 
was so crucial to the war effort. It was Puerto Rican soldiers who took 
up arms in the U.S. Civil War, defending this Nation's Capital, 
Washington, DC, from attack, and they fought in the Battle of 
Fredericksburg.
  In World War I, almost 20,000 Puerto Ricans were drafted into the 
U.S. Armed Forces. Let's not forget about the 65th Infantry Regiment, 
known as the Borinqueneers, the segregated military unit composed 
almost entirely of soldiers from Puerto Rico, who played a crucial and 
prominent role in World War I, World War II, and the Korean war.
  I am proud to say that I worked with Senator Blumenthal and others to 
make sure that the heroic Borinqueneers--the only Active-Duty 
segregated Latino military unit in the history of the United States and 
the last segregated unit to be deactivated--received well deserved and 
long overdue national recognition when we passed a bill awarding these 
courageous patriots with the Congressional Gold Medal, the highest 
expression of national appreciation for distinguished achievements and 
contributions to the United States.
  While some might be tempted to point their finger at our brothers and 
sisters on the island and fault Puerto

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Rico for carrying more than $70 billion in debt, I challenge my Senate 
colleagues to work with us on finding solutions because this problem 
isn't going away.
  Mark my words. If we don't act now, this crisis will explode into a 
full-blown humanitarian catastrophe, not in a matter of decades or even 
years but in months. In just a couple of months, they have a major 
payment they do not have the wherewithal to make.
  We may think we will kick the ball down the road. But, no, that human 
catastrophe is going to take place in months, and we will be right back 
here next year with the same set of problems, only far, far worse.
  Delaying action is akin to letting an infection reach the bloodstream 
before seeking treatment. The longer you wait, the more painful and 
challenging the treatment is. Puerto Rico isn't asking us to pull them 
out of this, just to give them the wherewithal to help them help 
themselves be able to achieve the goal.
  Let's not stand aside and do nothing while the island burns. Let's 
not turn our backs on our friends and fellow citizens when they need us 
the most. Let's instead come together as a nation and support our 
fellow citizens like we always do when things get tough. The people of 
Puerto Rico have always been there for us and with us. Let's make sure 
that we are there for them.

                          ____________________