[Senate Report 110-41]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                                 SENATE
 1st Session                                                     110-41
_______________________________________________________________________

                                     

                                     

                                     


                              R E P O R T

                           ON THE ACTIVITIES

                                 of the

                          COMMITTEE ON FINANCE

                                 of the

                          UNITED STATES SENATE

                               during the

                             109th CONGRESS

                              pursuant to

                    Rule XXVI of the Standing Rules

                                 of the

                          UNITED STATES SENATE




                 March 29, 2007.--Ordered to be printed


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                 [109th Congress--Committee Membership]

                          COMMITTEE ON FINANCE

                  CHARLES E. GRASSLEY, Iowa, Chairman

ORRIN G. HATCH, Utah                 MAX BAUCUS, Montana
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
OLYMPIA J. SNOWE, Maine              Virginia
JON KYL, Arizona                     KENT CONRAD, North Dakota
CRAIG THOMAS, Wyoming                JAMES M. JEFFORDS (I), Vermont
RICK SANTORUM, Pennsylvania          JEFF BINGAMAN, New Mexico
BILL FRIST, Tennessee                JOHN F. KERRY, Massachusetts
GORDON SMITH, Oregon                 BLANCHE L. LINCOLN, Arkansas
JIM BUNNING, Kentucky                RON WYDEN, Oregon
MIKE CRAPO, Idaho                    CHARLES E. SCHUMER, New York

             Kolan Davis, Staff Director and Chief Counsel

              Russell Sullivan, Democratic Staff Director

                             SUBCOMMITTEES

                                 ______

                       TAXATION AND IRS OVERSIGHT

                       JON KYL, Arizona, Chairman

TRENT LOTT, Mississippi              JAMES M. JEFFORDS (I), Vermont
ORRIN G. HATCH, Utah                 MAX BAUCUS, Montana
OLYMPIA J. SNOWE, Maine              KENT CONRAD, North Dakota
MIKE CRAPO, Idaho                    BLANCHE L. LINCOLN, Arkansas
CRAIG THOMAS, Wyoming                CHARLES E. SCHUMER, New York
RICK SANTORUM, Pennsylvania

                                 ______

                          INTERNATIONAL TRADE

                    CRAIG THOMAS, Wyoming, Chairman

MIKE CRAPO, Idaho                    JEFF BINGAMAN, New Mexico
TRENT LOTT, Mississippi              MAX BAUCUS, Montana
GORDON SMITH, Oregon                 JOHN D. ROCKEFELLER IV, West 
JIM BUNNING, Kentucky                Virginia
ORRIN G. HATCH, Utah                 KENT CONRAD, North Dakota
OLYMPIA J. SNOWE, Maine              RON WYDEN, Oregon
BILL FRIST, Tennessee                CHARLES E. SCHUMER, New York

                                  (ii)
?

                   SOCIAL SECURITY AND FAMILY POLICY

                 RICK SANTORUM, Pennsylvania, Chairman

CHARLES E. GRASSLEY, Iowa            KENT CONRAD, North Dakota
JIM BUNNING, Kentucky                JOHN D. ROCKEFELLER IV, West 
BILL FRIST, Tennessee                Virginia
TRENT LOTT, Mississippi              JAMES M. JEFFORDS (I), Vermont
JON KYL, Arizona                     JEFF BINGAMAN, New Mexico
GORDON SMITH, Oregon                 JOHN F. KERRY, Massachusetts
MIKE CRAPO, Idaho                    BLANCHE L. LINCOLN, Arkansas

                                 ______

                              HEALTH CARE

                     ORRIN G. HATCH, Utah, Chairman

OLYMPIA J. SNOWE, Maine              JOHN D. ROCKEFELLER IV, West 
BILL FRIST, Tennessee                Virginia
JON KYL, Arizona                     JAMES M. JEFFORDS (I), Vermont
CRAIG THOMAS, Wyoming                JEFF BINGAMAN, New Mexico
RICK SANTORUM, Pennsylvania          JOHN F. KERRY, Massachusetts
JIM BUNNING, Kentucky                RON WYDEN, Oregon

                                 ______

                  LONG-TERM GROWTH AND DEBT REDUCTION

                     GORDON SMITH, Oregon, Chairman

CHARLES E. GRASSLEY, Iowa            JOHN F. KERRY, Massachusetts

                                 (iii)
?

                         LETTER OF TRANSMITTAL

                              ----------                              

                                       U.S. Senate,
                                      Committee on Finance,
                                    Washington, DC, March 30, 2007.
Hon. Nancy Erickson,
Secretary, U.S. Senate,
Washington, DC.
    Dear Ms. Erickson: In accordance with rule XXVI of the 
Standing Rules of the United States Senate and the pertinent 
unanimous consent order pertaining to this rule, I am 
transmitting herewith a report on the activities of the 
Committee on Finance of the United States Senate for the 109th 
Congress.

            Sincerely,
                                              Max Baucus, Chairman.
      

                                  (v)
                                     



                            C O N T E N T S

                               __________
                                                                   Page

109th Congress--Committee Membership.............................    ii
Letter of Transmittal............................................     v
Committee Jurisdiction...........................................     1
Rules of Procedure...............................................     2
Tax--Summary of Activities.......................................     5
    Hearings and Meetings........................................     6
    Full Committee Executive Meetings............................    14
Trade--Summary of Activities.....................................    17
    Full Committee Hearings and Meetings.........................    20
    Subcommittee on International Trade Hearings and Meetings....    23
    Full Committee Executive Meetings............................    24
    Informal Meetings............................................    25
Health--Summary of Activities....................................    27
    Welfare......................................................    27
    Full Committee Hearings and Meetings.........................    29
    Subcommittee on Health Care..................................    33
    Full Committee Executive Meetings............................    33
Social Security--Summary of Activities...........................    35
    Full Committee Hearings......................................    35
    Subcommittee on Long-Term Growth and Debt Reduction..........    36
Oversight and Investigations--Summary of Activities..............    37
    Hearings.....................................................    37
    Legislation..................................................    39
    Other Oversight Initiatives..................................    41
        Centers for Medicare and Medicaid Services...............    41
        Food and Drug Administration.............................    46
        Department of Health and Human Services..................    50
        Centers for Disease Control..............................    51
        Federal Bureau of Investigation..........................    52
        Department of Homeland Security..........................    58
        Miscellaneous............................................    60
Nominations......................................................    65
Bills and Resolutions referred to the Committee..................    83
Reports, Prints, and Studies.....................................    84
Official Communications..........................................    86

                                 (vii)

  
110th Congress                                                   Report
                                 SENATE
 1st Session                                                     110-41

======================================================================



 
 REPORT ON THE ACTIVITIES OF THE COMMITTEE ON FINANCE DURING THE 109TH 
                                CONGRESS

                                _______
                                

                 March 29, 2007.--Ordered to be printed

                                _______
                                

   Mr. Baucus, from the Committee on Finance, submitted the following

                              R E P O R T

    This report reviews the legislative and oversight 
activities of the Committee on Finance during the 109th 
Congress. These activities parallel the broad scope of 
responsibilities vested in the Committee by the Legislative 
Reorganization Act of 1946, as amended, rule XXV(k) of the 
Standing Rules of the Senate, and additional authorizing 
resolutions.

                         COMMITTEE JURISDICTION

    Rule XXV(i) of the Standing Rules of the Senate requires 
reference to this Committee of all proposed legislation, and 
other matters, dealing with (i) Committee on Finance, to which 
committee shall be referred all proposed legislation, messages, 
petitions, memorials, and other matters relating to the 
following subjects:
          1. Bonded debt of the United States, except as 
        provided in the Congressional Budget Act of 1974.
          2. Customs, collection districts, and ports of entry 
        and delivery.
          3. Deposit of public moneys.
          4. General revenue sharing.
          5. Health programs under the Social Security Act and 
        health programs financed by a specific tax or trust 
        fund.
          6. National social security.
          7. Reciprocal trade agreements.
          8. Revenue measures generally, except as provided in 
        the Congressional Budget Act of 1974.
          9. Revenue measures relating to the insular 
        possessions.
          10. Tariffs and import quotas, and matters related 
        thereto.
          11. Transportation of dutiable goods.

                                  (1)

                            COMMITTEE RULES

                         I. RULES OF PROCEDURE

    Rule 1.  Regular Meeting Days.--The regular meeting day of the 
committee shall be the second and fourth Tuesday of each month, except 
that if there be no business before the committee the regular meeting 
shall be omitted.
    Rule 2.  Committee Meetings.--(a) Except as provided by paragraph 3 
of Rule XXVI of the Standing Rules of the Senate (relating to special 
meetings called by a majority of the committee) and subsection (b) of 
this rule, committee meetings, for the conduct of business, for the 
purpose of holding hearings, or for any other purpose, shall be called 
by the chairman. Members will be notified of committee meetings at 
least 48 hours in advance, unless the chairman determines that an 
emergency situation requires a meeting on shorter notice. The 
notification will include a written agenda together with materials 
prepared by the staff relating to that agenda. After the agenda for a 
committee meeting is published and distributed, no nongermane items may 
be brought up during that meeting unless at least two-thirds of the 
members present agree to consider those items.
      (b) In the absence of the chairman, meetings of the committee may 
be called by the ranking majority member of the committee who is 
present, provided authority to call meetings has been delegated to such 
member by the chairman.
    Rule 3.  Presiding Officer.--(a) The chairman shall preside at all 
meetings and hearings of the committee except that in his absence the 
ranking majority member who is present at the meeting shall preside.
      (b) Notwithstanding the rule prescribed by subsection (a) any 
member of the committee may preside over the conduct of a hearing.
    Rule 4.  Quorums.--(a) Except as provided in subsection (b) one-
third of the membership of the committee, including not less than one 
member of the majority party and one member of the minority party, 
shall constitute a quorum for the conduct of business.
      (b) Notwithstanding the rule prescribed by subsection (a), one 
member shall constitute a quorum for the purpose of conducting a 
hearing.
    Rule 5.  Reporting of Measures or Recommendations.--No measure or 
recommendation shall be reported from the committee unless a majority 
of the committee is actually present and a majority of those present 
concur.
    Rule 6.  Proxy Voting; Polling.--(a) Except as provided by 
paragraph 7(a)(3) of Rule XXVI of the Standing Rules of the Senate 
(relating to limitation on use of proxy voting to report a measure or 
matter), members who are unable to be present may have their vote 
recorded by proxy.
      (b) At the discretion of the committee, members who are unable to 
be present and whose vote has not been cast by proxy may be polled for 
the purpose of recording their vote on any rollcall taken by the 
committee.
    Rule 7.  Order of Motions.--When several motions are before the 
committee dealing with related or overlapping matters, the chairman may 
specify the order in which the motions shall be voted upon.
    Rule 8.  Bringing a Matter to a Vote.--If the chairman determines 
that a motion or amendment has been adequately debated, he may call for 
a vote on such motion or amendment, and the vote shall then be taken, 
unless the committee votes to continue debate on such motion or 
amendment, as the case may be. The vote on a motion to continue debate 
on any motion or amendment shall be taken without debate.
    Rule 9.  Public Announcement of Committee Votes.--Pursuant to 
paragraph 7(b) of Rule XXVI of the Standing Rules of the Senate 
(relating to public announcement of votes), the results of rollcall 
votes taken by the committee on any measure (or amendment thereto) or 
matter shall be announced publicly not later than the day on which such 
measure or matter is ordered reported from the committee.
    Rule 10.  Subpoenas.--Subpoenas for attendance of witnesses and the 
production of memoranda, documents, and records shall be issued by the 
chairman, or by any other member of the committee designated by him.
    Rule 11.  Nominations.--In considering a nomination, the Committee 
may conduct an investigation or review of the nominee's experience, 
qualifications, and suitability, to serve in the position to which he 
or she has been nominated. To aid in such investigation or review, each 
nominee may be required to submit a sworn detailed statement including 
biographical, financial, policy, and other information which the 
Committee may request. The Committee may specify which items in such 
statement are to be received on a confidential basis. Witnesses called 
to testify on the nomination may be required to testify under oath.
    Rule 12.  Open Committee Hearings.--To the extent required by 
paragraph 5 of Rule XXVI of the Standing Rules of the Senate (relating 
to limitations on open hearings), each hearing conducted by the 
committee shall be open to the public.
    Rule 13.  Announcement of Hearings.--The committee shall undertake 
consistent with the provisions of paragraph 4(a) of Rule XXVI of the 
Standing Rules of the Senate (relating to public notice of committee 
hearings) to issue public announcements of hearings it intends to hold 
at least one week prior to the commencement of such hearings.
    Rule 14.  Witnesses at Hearings.--(a) Each witness who is scheduled 
to testify at any hearing must submit his written testimony to the 
staff director not later than noon of the business day immediately 
before the last business day preceding the day on which he is scheduled 
to appear. Such written testimony shall be accompanied by a brief 
summary of the principal points covered in the written testimony. 
Having submitted his written testimony, the witness shall be allowed 
not more than 10 minutes for oral presentation of his statement.
      (b) Witnesses may not read their entire written testimony, but 
must confine their oral presentation to a summarization of their 
arguments.
      (c) Witnesses shall observe proper standards of dignity, decorum 
and propriety while presenting their views to the committee. Any 
witness who violates this rule shall be dismissed, and his testimony 
(both oral and written) shall not appear in the record of the hearing.
      (d) In scheduling witnesses for hearings, the staff shall attempt 
to schedule witnesses so as to attain a balance of views early in the 
hearings. Every member of the committee may designate witnesses who 
will appear before the committee to testify. To the extent that a 
witness designated by a member cannot be scheduled to testify during 
the time set aside for the hearing, a special time will be set aside 
for the witness to testify if the member designating that witness is 
available at that time to chair the hearing.
    Rule 15.  Audiences.--Persons admitted into the audience for open 
hearings of the committee shall conduct themselves with the dignity, 
decorum, courtesy and propriety traditionally observed by the Senate. 
Demonstrations of approval or disapproval of any statement or act by 
any member or witness are not allowed. Persons creating confusion or 
distractions or otherwise disrupting the orderly proceeding of the 
hearing shall be expelled from the hearing.
    Rule 16.  Broadcasting of Hearings.--(a) Broadcasting of open 
hearings by television or radio coverage shall be allowed upon approval 
by the chairman of a request filed with the staff director not later 
than noon of the day before the day on which such coverage is desired.
      (b) If such approval is granted, broadcasting coverage of the 
hearing shall be conducted unobtrusively and in accordance with the 
standards of dignity, propriety, courtesy and decorum traditionally 
observed by the Senate.
      (c) Equipment necessary for coverage by television and radio 
media shall not be installed in, or removed from, the hearing room 
while the committee is in session.
      (d) Additional lighting may be installed in the hearing room by 
the media in order to raise the ambient lighting level to the lowest 
level necessary to provide adequate television coverage of the hearing 
at the then current state of the art of television coverage.
      (e) The additional lighting authorized by subsection (d) of this 
rule shall not be directed into the eyes of any members of the 
committee or of any witness, and at the request of any such member or 
witness, offending lighting shall be extinguished.
      (f) No witness shall be required to be photographed at any 
hearing or to give testimony while the broadcasting (or coverage) of 
that hearing is being conducted. At the request of any such witness who 
does not wish to be subjected to radio or television coverage, all 
equipment used for coverage shall be turned off.
    Rule 17.  Subcommittees.--(a) The chairman, subject to the approval 
of the committee, shall appoint legislative subcommittees. All 
legislation shall be kept on the full committee calendar unless a 
majority of the members present and voting agree to refer specific 
legislation to an appropriate subcommittee.
      (b) The chairman may limit the period during which House-passed 
legislation referred to a subcommittee under paragraph (a) will remain 
in that subcommittee. At the end of that period, the legislation will 
be restored to the full committee calendar. The period referred to in 
the preceding sentences should be 6 weeks, but may be extended in the 
event that adjournment or a long recess is imminent.
      (c) All decisions of the chairman are subject to approval or 
modification by a majority vote of the committee.
      (d) The full committee may at any time by majority vote of those 
members present discharge a subcommittee from further consideration of 
a specific piece of legislation.
      (e) Because the Senate is constitutionally prohibited from 
passing revenue legislation originating in the Senate, subcommittees 
may mark up legislation originating in the Senate and referred to them 
under Rule 16(a) to develop specific proposals for full committee 
consideration but may not report such legislation to the full 
committee. The preceding sentence does not apply to nonrevenue 
legislation originating in the Senate.
      (f) The chairman and ranking minority members shall serve as 
nonvoting ex officio members of the subcommittees on which they do not 
serve as voting members.
      (g) Any member of the committee may attend hearings held by any 
subcommittee and question witnesses testifying before that 
subcommittee.
      (h) Subcommittee meeting times shall be coordinated by the staff 
director to insure that--
          (1) no subcommittee meeting will be held when the committee 
        is in executive session, except by unanimous consent;
          (2) no more than one subcommittee will meet when the full 
        committee is holding hearings; and
          (3) not more than two subcommittees will meet at the same 
        time.
    Notwithstanding paragraphs (2) and (3), a subcommittee may meet 
when the full committee is holding hearings and two subcommittees may 
meet at the same time only upon the approval of the chairman and the 
ranking minority member of the committee and subcommittees involved.
      (i) All nominations shall be considered by the full committee.
      (j) The chairman will attempt to schedule reasonably frequent 
meetings of the full committee to permit consideration of legislation 
reported favorably to the committee by the subcommittees.
    Rule 18.  Transcripts of Committee Meetings.--An accurate record 
shall be kept of all markups of the committee, whether they be open or 
closed to the public. This record, marked as ``uncorrected,'' shall be 
available for inspection by Members of the Senate, or members of the 
committee together with their staffs, at any time. This record shall 
not be published or made public in any way except:
      (a) By majority vote of the committee after all members of the 
committee have had a reasonable opportunity to correct their remarks 
for grammatical errors or to accurately reflect statements made.
      (b) Any member may release his own remarks made in any markup of 
the committee provided that every member or witness whose remarks are 
contained in the released portion is given a reasonable opportunity 
before release to correct their remarks.
    Notwithstanding the above, in the case of the record of an 
executive session of the committee that is closed to the public 
pursuant to Rule XXVI of the Standing Rules of the Senate, the record 
shall not be published or made public in any way except by majority 
vote of the committee after all members of the committee have had a 
reasonable opportunity to correct their remarks for grammatical errors 
or to accurately reflect statements made.
    Rule 19.  Amendment of Rules.--The foregoing rules may be added to, 
modified, amended or suspended at any time.
                                  TAX

                         SUMMARY OF ACTIVITIES

    During the 109th Congress the Finance Committee was able to 
accomplish many long held goals. Major policy areas the 
Committee was actively engaged in included: (i) the tax title 
of the highway bill, (ii) the tax title of the energy bill, 
(iii) pensions and retirement security, (iv) budget 
reconciliation, (v) expiring tax provisions, (vi) rebuilding of 
the Gulf Coast following a series of devastating hurricanes, 
(vii) repeal of the telephone excise tax, (viii) taxpayer and 
whistleblower protection. The Committee also held many hearings 
to reinforce its legislative and oversight functions, including 
the continued investigation of the role and status of tax-
exempt organizations.
    In April 2005, the Committee marked-up and reported S. 
1230, the ``Highway Reauthorization and Excise Tax 
Simplification Act of 2005'' and S. 661, the ``United States 
Tax Court Modernization Act.'' S. 1230 and parts of S. 661 were 
included in a substitute amendment to H.R. 3, the ``Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A 
Legacy for Users'' (SAFETY-LU). After a successful conference, 
SAFETY-LU was signed into law on August 10, 2005 (Pub. L. No. 
109-59).
    On June 16, 2006, the Committee met in Executive Session to 
consider and report an original bill, the ``Energy Policy Tax 
Incentives Act of 2005,'' which was amended to H.R. 6, the 
``Energy Policy Act of 2005.'' The conference agreement was 
completed on July 27, 2005 and H.R. 6 was signed into law on 
August 8, 2005 (Pub. L. No. 109-58).
    On July 26, 2005, the Committee met in Executive Session to 
consider and report S. 1953, the ``National Employee Savings 
and Trust Equity Guarantee Act of 2005'' (NESTEG). After a 
conference with the House, most of the product of that 
conference was introduced as H.R. 4, the ``Pension Protection 
Act of 2006'' (PPA 2006). PPA 2006 was signed into law on 
August 17, 2006 (Pub. L. No. 109-280).
    In November 2005, the Committee marked-up and reported S. 
2020, the ``Tax Relief Act of 2005'' (TRA 2005), which passed 
the Senate on November 18, 2005. Several provisions of TRA 2005 
were included in H.R. 4440, the ``Gulf Opportunity Zone Act of 
2005,'' which passed the Senate on December 16, 2005, and was 
signed into law on December 22, 2005 (Pub. L. No. 109-135). 
Several other provisions of TRA 2005 were included in H.R. 
4297, the ``Tax Increase Prevention and Reconciliation Act of 
2005'' (TIPRA 2005), which passed the Senate on February 2, 
2006, and was successfully conferenced and signed into law on 
May 17, 2006 (Pub. L. No. 109-222). Many of the remaining 
provisions contained in TRA 2005 were included in H.R. 6111, 
the ``Tax Relief and Health Care Act of 2006,'' which passed 
the Senate on December 2, 2006, and was signed into law on 
December 20, 2006 (Pub. L. No. 109-432).
    In the tax administration area, the Committee marked-up and 
reported an expanded version of S. 1321, the ``Telephone Excise 
Tax Repeal Act of 2005,'' in June 2006. This bill incorporated 
S. 832, the ``Taxpayer Protection and Assistance Act of 2005,'' 
and was renamed S. 1321, the ``Telephone Excise Tax Repeal and 
Taxpayer Protection Assistance Act of 2006.'' Included among 
the provisions in the bill were the repeal of excise tax on 
telephone and other communications services, regulation of 
Federal tax return preparers, direct access to e-file Federal 
income tax returns, and reform of penalty and interest 
provisions. S. 1321 was reported by Senator Grassley on 
September 15, 2006, with an amendment in the nature of a 
substitute and an amendment to the title.

                         Hearings and Meetings

2005
February 8, 2005--Hearing on Revenue Proposals in the 
    President's FY 2006 Budget. Treasury Secretary John Snow 
    testified on the revenue proposals in the Administration's 
    FY 2006 Budget.
March 1, 2005--Hearing on Financial Status of PBGC and the 
    Administration's Defined Benefit Plan Funding Proposal. 
    This hearing on the state of defined benefit pension plans 
    focused on the government backer of that system, the 
    Pension Benefit Guaranty Corporation or ``PBGC,'' and the 
    Administration's recent proposal to strengthen pension 
    funding. Witnesses included Mr. Bradley D. Belt, Executive 
    Director, Pension Benefit Guaranty Corporation; Mr. Mark J. 
    Warshawsky, Assistant Secretary for Econonic Policy, 
    Department of the Treasury; Ms. Ann Combs, Assistant 
    Secretary for the Employee Benefits Security 
    Administration, Department of Labor; Mr. Larry Zimpleman, 
    President, Retirement and Investor Services, Principal 
    Financial Group, on behalf of the Business Roundtable; Mr. 
    Alan Reuther, Legislative Director, United Auto Workers; 
    and Mr. Randall S. Kroszner, Professor of Economics, The 
    University of Chicago Graduate School of Business.
March 16, 2005--Hearing on Expiring Tax Provisions: Live or Let 
    Die. This hearing reviewed tax provisions set to expire at 
    the end of 2005. It focused on the largely business-related 
    provisions that expire annually and examined the merits of 
    other expiring provisions by considering whether particular 
    provisions should be made permanent or allowed to lapse, 
    whether proposed expansions are appropriate or desirable, 
    and whether reforms are needed to make provisions more 
    administrable or more efficient. The Committee heard 
    testimony from The Honorable Robert Carroll, Deputy 
    Assistant Secretary for Tax Analysis, U.S. Department of 
    the Treasury; The Honorable Donald C. Alexander, Partner, 
    Akin, Gump, Strauss, Hauer & Feld, L.L.P.; Mr. Daniel L. 
    Doctoroff, Deputy Mayor for Economic Development and 
    Rebuilding, City of New York; Dr. David E. Martin, Chief 
    Executive Officer, M-CAM; Mr. David Hernandez, Vice 
    President of Tax, EDS; Mr. Dale Giovengo, Human Resource 
    Director, Giant Eagle; and Dr. Hy L. Dubowsky, Director, 
    Economic Development Services, New York State Department of 
    Labor.
April 5, 2005--Hearing on Charities and Charitable Giving: 
    Proposals for Reform. This hearing focused on strengthening 
    the role of charities in America and closing the tax gap as 
    it relates to charities and charitable giving. Testifying 
    before the Committee were The Honorable Mark Everson, 
    Commissioner, Internal Revenue Service; Mr. George K. Yin, 
    Chief of Staff, Joint Committee on Taxation; Mr. Leon 
    Panetta, Director, Panetta Institute for Public Policy; Mr. 
    Mike Hatch, Attorney General, State of Minnesota; Dr. Jane 
    Gravelle, Senior Specialist in Economic Policy, 
    Congressional Research Service; Mr. Richard Johnson, 
    Member, Waller Lansden Dortch and Davis, PLLC; Mr. David 
    Kuo, Former Special Assistant to the President and Deputy 
    Director, White House Office of Faith-Based & Community 
    Initiatives; Mr. Brian Gallagher, President, United Way; 
    and Ms. Diana Aviv, President and CEO, Independent Sector.
April 14, 2005--Hearing on The $350 Billion Question: How to 
    Solve the Tax Gap. This hearing identified causes of the 
    tax gap--such as underreporting, underpayment, non-filing 
    of taxes, and outright fraud--and presented recommendations 
    for closing the tax gap. Witnesses included The Honorable 
    David Walker, Comptroller General, U.S. Government 
    Accountability Office; Mr. George K. Yin, Chief of Staff, 
    Joint Committee on Taxation; The Honorable Mark Everson, 
    Commissioner, Internal Revenue Service; The Honorable 
    Eileen J. O'Connor, Assistant Attorney General, U.S. 
    Department of Justice; The Honorable Russell George, 
    Inspector General for Tax Administration, U.S. Department 
    of the Treasury; Ms. Nina E. Olson, National Taxpayer 
    Advocate, Taxpayer Advocate Service; Mr. Kevin M. Brown, 
    Commissioner, Small Business/Self Employed Division, 
    Internal Revenue Service; and Ms. Nancy J. Jardini, Chief, 
    Criminal Investigation, Internal Revenue Service.
May 15, 2005--Republican Member's Meeting to discuss Budget 
    Reconciliation.
May 23, 2005--Hearing on Blowing the Cover on the Stealth Tax: 
    Exposing the Individual AMT. The Subcommittee on Taxation 
    and IRS Oversight met to begin the process of educating 
    Senators and the public about the complexity of the 
    alternative minimum tax (AMT) and about how the AMT amounts 
    to a ``stealth'' tax that traps many unsuspecting 
    taxpayers. The Subcommittee heard testimony from The 
    Honorable Robert Carroll, Deputy Assistant Secretary for 
    Tax Analysis, U.S. Department of Treasury; Dr. Douglas 
    Holtz-Eakin, Director, Congressional Budget Office; Ms. 
    Nina E. Olson, National Taxpayer Advocate, Taxpayer 
    Advocate Service; Dr. Leonard E. Burman, Senior Fellow and 
    co-director of the Urban-Brookings Tax Policy Center, The 
    Urban Institute; Dr. Kevin A. Hassett, Director of Economic 
    Policy Studies, American Enterprise Institute; and Ms. 
    Carol C. Markman, CPA, President, National Conference of 
    CPA Practioners and Partner at Feldman, Meinberg & Co., 
    LLP.
May 25, 2005--Hearing on Social Security: Achieving Sustainable 
    Solvency. This hearing, the third in a series of hearings 
    on Social Security, focused on a menu of options to achieve 
    sustainable Social Security solvency and addressed the 
    potential payroll ``tax gap.'' Testifying before the 
    Committee were Dr. Douglas Holtz-Eakin, Director, 
    Congressional Budget Office; Dr. Eugene C. Steuerle, Senior 
    Fellow, Urban Institute; Mr. Stanford G. Ross, former 
    Commissioner of the Social Security Administration; Mr. 
    George K. Yin, Chief of Staff, Joint Committee on Taxation; 
    and The Honorable Russell George, Office of the Treasury 
    Inspector General for Tax Administration, U.S. Department 
    of the Treasury.
June 7, 2005--Hearing on Preventing the Next Pension Collapse: 
    Lessons from the United Airlines Case. This hearing 
    examined the bankruptcy of United Airlines and the massive 
    losses in its employee pension funds by attempting to 
    answer the following questions: how did it happen, why did 
    it happen, and how can Congress prevent it from happening 
    again? Witnesses included The Honorable David M. Walker, 
    Comptroller General of the United States, Government 
    Accountability Office; Mr. Bradley D. Belt, Executive 
    Director, Pension Benefit Guaranty Corporation; Dr. Douglas 
    Holtz-Eakin, Director, Congressional Budget Office; Ms. 
    Patricia A. Friend, International President, Association of 
    Flight Attendants-CWA, AFL-CIO; Mr. Robert Roach, Jr., 
    General Vice President, International Association of 
    Machinists and Aerospace Workers; Captain Duane E. Woerth, 
    President, Airline Pilots Association International; Mr. 
    Glenn F. Tilton, Chairman, President and Chief Executive 
    Officer, United Airlines; Mr. Gerald Grinstein, Chief 
    Executive Officer, Delta Airlines; and Mr. Douglas 
    Steenland, President and Chief Executive Officer, Northwest 
    Airlines.
June 8, 2005--Hearing on The Tax Code and Land Conservation: 
    Report on Investigations and Proposals for Reform. This 
    hearing examined two reports: the report on The Nature 
    Conservancy (TNC) prepared by the Finance Committee staff, 
    and the report on the Department of the Interior's proposed 
    purchase of mineral rights in Florida from a private 
    organization prepared by the Department of the Interior's 
    Inspector General. These two reports highlighted how lax 
    procedures by land trusts and improper valuations can give 
    land conservation efforts a bad name. In addition, the 
    hearing discussed the topic of questionable tax planning 
    activities by charities and raised issues about whether 
    charities are acting within the laws governing them as 
    Congress intended and within a manner that justifies their 
    tax exempt status to the public. The hearing also 
    facilitated a discussion about the problems and issues 
    facing Members of Congress as they attempt to ensure that 
    the tax code provisions that encourage donations of 
    conservation easements are effective. Testifying before the 
    Committee were Mr. Jonathan Selib, Tax Counsel, U.S. Senate 
    Committee on Finance; Mr. Dean Zerbe, Tax Counsel and 
    Senior Counsel to the Chairman, U.S. Senate Committee on 
    Finance; Mr. Earl E. Devaney, Inspector General, U.S. 
    Department of Interior; Mr. Steven J. McCormick, President 
    and CEO, Nature Conservancy; Mr. Ira Millstein, Weil, 
    Gotshal & Manges, LLP; Mr. Rand Wentworh, President, Land 
    Trust Alliance; Mr. Timothy Lindstrom, Director of 
    Protection & Staff Attorney, Jackson Hole Land Trust; Mr. 
    Burnet R. Maybank, III, Director, South Carolina Department 
    of Revenue; and Mr. Steven T. Miller, Commissioner, Tax 
    Exempt and Government Entities Operating Division, Internal 
    Revenue Service.
June 30, 2005--Hearing on Encouraging Savings and Investment: 
    Stay the Course or Change Direction? This hearing of the 
    Subcommittee on Taxation and IRS Oversight reviewed whether 
    certain tax provisions set to expire in 2010--section 179 
    expensing, the retirement savings contribution credit, and 
    the 15 percent rate on most individual dividends and 
    capital gains--are accomplishing what Congress intended and 
    if their cost is worth the economic benefit. Witnesses 
    included Mr. G. Scott Harding, President and CEO, F.B. 
    Harding, Inc.; Mr. Robert A. Weinberger, Vice President, 
    Government Relations, H&R Block; Mr. David Malpass, Chief 
    Economist, Bear Stearns; Dr. Eric Toder, Senior Fellow, The 
    Urban Institute; Mr. Stephen J. Entin, President and 
    Executive Director, Institute for Research on the Economics 
    of Taxation; and Mr. Brian Graff, Executive Director and 
    CEO, American Society of Pension Professionals & Actuaries.
July 21, 2005--Hearing on Updating Depreciable Lives: Is there 
    Salvage Value in the Current System? This hearing of the 
    Subcommittee on Long-Term Growth and Debt Reduction 
    examined the current tax depreciation system and its 
    effects on long-term economic growth. The Subcommittee 
    heard testimony from Mr. Joseph M. Mikrut, Partner, Capitol 
    Tax Partners; Dr. Thomas S. Neubig, National Director, 
    Quantitative Economics and Statistics, Ernst & Young LLP; 
    Dr. Jane Gravelle, Senior Specialist in Economic Policy, 
    Congressional Research Service, Library of Congress; Mr. 
    Kenneth D. Simonson, Chief Economist, Associated General 
    Contractors of America; and Mr. Christopher R. Anderson, 
    President, Massachusetts High Technology Council, Inc.
September 13, 2005--Hearing on Charities on the Frontline: How 
    the Nonprofit Sector Meets the Needs of America's 
    Communities. This hearing of the Subcommittee on Social 
    Security and Family Policy discussed the role of the 
    charitable community in meeting the needs of America's 
    communities. Witnesses included Mr. Luke Hingson, 
    President, Brother's Brother Foundation; Major George Hood, 
    Director of National Community Relations and Development, 
    The Salvation Army; Dr. Bob Reccord, President and CEO, 
    North American Mission Board, Southern Baptist Convention; 
    Dr. William G. Gale, Senior Fellow, The Brookings 
    Institution; and Dr. C. Eugene Steuerle, Senior Fellow, 
    Urban Institute.
September 28, 2005--Hearing on Hurricane Katrina: Community 
    Rebuilding Needs and Effectiveness of Past Proposals. This 
    hearing focused on efforts to deal with the aftermath of 
    Hurricane Katrina. Along with a distinguished panel of 
    witnesses, the Committee discussed how to find the most 
    efficient and effective ways to use the Federal resources 
    under the Finance Committee's jurisdiction to carry out the 
    overall policy of rebuilding the Gulf Coast region. 
    Witnesses included The Honorable Haley Barbour, via 
    videoconference, Governor, State of Mississippi; The 
    Honorable Kathleen Blanco, Governor, State of Louisiana; 
    The Honorable Bob Riley, via videoconference, Governor, 
    State of Alabama; Mr. George K. Yin, Chief of Staff, Joint 
    Committee on Taxation; Ms. Diana Aviv, President and CEO, 
    Independent Sector; Mr. Daniel L. Doctoroff, Deputy Mayor 
    for Economic Development and Rebuilding for the City of New 
    York; Mr. Gary P. LaGrange, president and CEO, Port of New 
    Orleans, New Orleans, LA and Chairman, American Association 
    of Port Authorities; and Ms. Jean-Mari Peltier, President 
    and CEO, National Council of Farmer Cooperatives.
October 5, 2005--Republican Member's Meeting to discuss 
    Reconciliation.
October 6, 2005--Hearing on The Future of the Gulf Coast: Using 
    Tax Policy to Help Rebuild Businesses and Communities and 
    Support Families after Disasters. This hearing examined 
    ways in which tax policy can be used effectively to help 
    rebuild businesses and communities and support families in 
    the Gulf Coast region following Hurricane Katrina. The 
    hearing also discussed past successes and failures in using 
    tax policy for disaster relief. Witnesses included The 
    Honorable John W. Snow, Secretary, U.S. Department of the 
    Treasury; The Honorable Jack Kemp, Founder and Chairman, 
    Kemp Partners, and Honorary Co-Chairman, Free Enterprise 
    Fund; The Honorable Tate Reeves, State Treasurer, State of 
    Mississippi; Ms. Dianne Bolen, Executive Director, 
    Mississippi Home Corporation; Mr. Harry Connick Jr., 
    Honorary Chair, Operation Home Delivery, Habitat for 
    Humanity International; Dr. Jane Gravelle, Senior 
    Specialist in Economic Policy, Congressional Research 
    Service, Library of Congress; and Mr. James R. Kelly, Chief 
    Executive Officer, Catholic Charities Archdiocese of New 
    Orleans.

                          Hearings and Meetings

2006
January 7, 2006--Hearing on the President's Fiscal Year 2007 
    Budget Proposal. Treasury Secretary John W. Snow testified 
    on revenue proposals in the Administration's 2007 budget.
March 8, 2006--Hearing on Taking a Checkup on the Nation's 
    Health Care Tax Policy: A Prognosis. This hearing examined 
    the impact of U.S. tax policy on our nation's health care 
    system and addressed whether the nation is ``getting its 
    money's worth'' from existing U.S. health tax incentives. 
    Witnesses included The Honorable Paul H. O'Neill, former 
    Secretary of the Treasury; Dr. Leonard E. Burman, Senior 
    Fellow, Co-Director of the Urban-Brookings Tax Policy 
    Center, Urban Institute; and Mr. Robert W. Lane, Chairman 
    and Chief Executive Officer, Deere & Company.
March 15, 2006--House-Senate Conference on H.R. 4297, Tax 
    Relief Extension Reconciliation Act.
March 16, 2006--Hearing on Cuno and Competitiveness: Where to 
    Draw the Line. This hearing of the Subcommittee on 
    International Trade assessed the Cuno case and its impact 
    on domestic and international competitiveness. Witnesses 
    included The Honorable George V. Voinovich, United States 
    Senator; Mr. Peter D. Enrich, Professor of Law, 
    Northeastern University School of Law; Mr. Harley Duncan, 
    Executive Director, Federation of Tax Administrators; Mr. 
    Walter Hellerstein, Francis Shackelford Distinguished 
    Professor of Taxation Law, University of Georgia School of 
    Law; Dr. Peter Fisher, Professor, Graduate Program in Urban 
    and Regional Planning, University of Iowa; and Mr. James H. 
    Renzas, President and Chief Executive Officer, Location 
    Management Services.
April 4, 2006--Hearing on Preparing Your Taxes: How Costly Is 
    It? This hearing examined the current state of electronic 
    filing services and tax preparation. More specifically, the 
    hearing showcased the successes of the states in the area 
    of electronic filing and scrutinized some bad practices 
    that seem to be pervasive and systemic in the tax 
    preparation industry. The Committee heard from several 
    witnesses including the GAO, the IRS, the Taxpayer 
    Advocate, the Free File Alliance, the National Association 
    of Enrolled Agents, and the Federation of Tax 
    Administrators.
April 6, 2006--Hearing on Saving for the 21st Century: Is 
    America Saving Enough to be Competitive in the Global 
    Marketplace? This hearing of the Subcommittee on Long-Term 
    Growth and Debt Reduction evaluated current trends in U.S. 
    national savings. The subcommittee heard testimony from Dr. 
    Thomas J. McCool, Director of the Center for Economics, 
    Government Accountability Office; Mr. Jurrien Timmer, 
    Director of Market Research, Fidelity Investments; Dr. 
    Barry P. Bosworth, Senior Fellow, Economic Studies, The 
    Robert V. Rossa Chair in International Economics, The 
    Brookings Institution; and Dr. Lael Brainard, Vice 
    President and Director of the Global Economy Development 
    Center, the New Century Chair in International Economics, 
    The Brookings Institution.
May 23, 2006--Hearing on Encouraging Economic Self-
    Determination in Indian Country. This hearing of the 
    Subcommittee on Long-Term Growth and Debt Reduction 
    examined the ability of Indian tribes to issue tax-exempt 
    bonds for purposes of infrastructure development and long-
    term, self-sustaining economic growth. Witnesses included 
    Mr. Raymond C. Etcitty, Esq., Chief Legislative Counsel, 
    Navajo Nation Office of Legislative Counsel; Ms. Lenor A. 
    Scheffler, Esq., Best & Flanagan LLP; Dr. Gavin Clarkson, 
    Assistant Professor, University of Michigan, School of 
    Information, School of Law, Native American Studies; Mr. 
    Scott Schickli, Esq., Orrick Herrington & Sutcliffe LLP; 
    and Mr. Wayne A. Shammel, Esq., General Counsel, Cow Creek 
    Band of Umpqua Tribe of Indians.
June 13, 2006--Hearing on A Tune-Up On Corporate Tax Issues: 
    What's Going On Under the Hood? This hearing focused on the 
    current state of the U.S. corporate tax system. In addition 
    to discussing corporate tax compliance and enforcement 
    matters, the hearing examined the last-in, first-out 
    (``LIFO'') method of inventory tax accounting and 
    considered lowering tax rates and broadening the tax base 
    in the context of business tax reform. The Committee heard 
    testimony from The Honorable Mark Everson, Commissioner, 
    Internal Revenue Service; The Honorable David Walker, 
    Comptroller General, U.S. Government Accountability Office; 
    The Honorable Eileen J. O'Connor, Assistant Attorney 
    General, Tax Division, U.S. Department of Justice; Dr. 
    George A. Plesko, Associate Professor, Department of 
    Accounting, University of Connecticut School of Business; 
    Mr. Edward D. Kleinbard, Partner, Cleary Gottlieb Steen & 
    Hamilton LLP; and Dr. Martin A. Sullivan, Contributing 
    Editor, Tax Analysts.
June 29, 2006--Hearing on Small Business Pension Plans: How Can 
    We Increase Work Coverage? This Subcommittee on Long-Term 
    Growth and Debt Reduction hearing focused on small employer 
    coverage and employee participation while discussing 
    Congress's role in helping small businesses and Americans 
    save for retirement. Witnesses at this subcommittee hearing 
    included Dr. Craig Copeland, Senior Research Associate, 
    Employee Benefit Research Institute; Mr. Steve Bjerke, 
    Investment Representative, Edward Jones; Mr. Daniel Hall, 
    Regional Pension Manager, The Standard, StanCorp Equities, 
    Inc.; Ms. Paula Calimafde, Chair, Small Business Council of 
    America; Mr. David C. John, Senior Research Fellow, The 
    Heritage Foundation; and Mr. J. Mark Iwry, Senior Advisor, 
    The Retirement Security Project, and Nonresident Senior 
    Fellow, The Brookings Institution.
July 25, 2006--Hearing on How Much Should Borders Matter?: Tax 
    Jurisdiction in the Economy. This hearing of the 
    Subcommittee on International Trade addressed the question 
    of whether traditional physical presence based on 
    geographic borders is still the most appropriate standard 
    for tax jurisdiction, and if not, what is the proper 
    standard? The question was examined in two separate 
    contexts: (1) increasing interstate and international 
    commerce over the internet, and (2) business activity taxes 
    (BAT) that are imposed directly by states on businesses or 
    individuals. The Subcommittee heard testimony from three 
    panels. Witnesses included The Honorable Michael B. Enzi, 
    United States Senator from Wyoming; state government 
    officials from Iowa, Montana, and Wyoming; taxation 
    experts; and business community representatives
July 26, 2006--Hearing on A Closer Look at the Size and Sources 
    of the Tax Gap. This hearing of the Subcommittee on 
    Taxation and IRS Oversight, a follow-up to a 2005 full 
    Finance Committee hearing and a 2006 Budget Committee 
    hearing, examined several aspects of the tax gap, including 
    its size, its causes, and potential solutions for 
    addressing it. Witnesses included Dr. Mark J. Mazur, 
    Director, Research, Analysis, and Statistics, Internal 
    Revenue Service; Mr. Michael Brostek, Director, Tax Issues, 
    Strategic Issues Team, U.S. Government Accountability 
    Office; The Honorable J. Russell George, Treasury Inspector 
    General for Tax Administration; Ms. Nina E. Olson, National 
    Taxpayer Advocate, Taxpayer Advocate Service; and The 
    Honorable Raymond T. Wagner, Jr., Chairman, IRS Oversight 
    Board, Washington, DC, Legal and Legislative Vice 
    President, Enterprise Rent-A-Car Company.
August 3, 2006--Hearing on Kick-Off for Tax Reform: Tackling 
    the Tax Code. The Committee met to discuss the 
    recommendations of the President's Advisory Panel on 
    Federal Tax Reform. The Committee heard testimony from the 
    following members of the President's Advisory Panel on 
    Federal Tax Reform: The Honorable Connie Mack, III, 
    Chairman, President's Advisory Panel on Federal Tax Reform, 
    Senior Policy Advisor, King & Spalding LLP; The Honorable 
    John Breaux, Vice-Chairman, President's Advisory Panel on 
    Federal Tax Reform, Senior Counsel, Patton Boggs LLP; Ms. 
    Elizabeth Garrett, Member, President's Advisory Panel on 
    Federal Tax Reform, Sydney M. Irmas Professor of Public 
    Interest, Law, Legal Ethics, Political Science, and Policy, 
    Planning, and Development, Gould School of Law, University 
    of Southern California; and Dr. James Poterba, Member, 
    President's Advisory Panel on Federal Tax Reform, Mitsui 
    Professor of Economics, Department of Economics, 
    Massachusetts Institute of Technology. Additional witnesses 
    included The Honorable David Walker, Comptroller General, 
    U.S. Government Accountability Office; and Dr. Jane 
    Gravelle, Senior Specialist in Economic Policy, 
    Congressional Research Service.
September 6, 2006--Hearing on Executive Compensation: 
    Backdating to the Future/Oversight of current issues 
    regarding executive compensation including backdating of 
    stock options; and tax treatment of executive compensation, 
    retirement and benefits. This hearing addressed the company 
    practice of ``back-dating'' stock options in addition to a 
    more general discussion of executive compensation issues. 
    The Committee heard testimony from The Honorable Paul J. 
    McNulty, Deputy Attorney General, United States Department 
    of Justice; The Honorable Mark Everson, Commissioner, 
    Internal Revenue Service; Ms. Linda Thomsen, Director, 
    Division of Enforcement, United States Securities and 
    Exchange Commission; Ms. Nell Minow, Editor, The Corporate 
    Library; Professor Lucian A. Bebchuk, William J. Friedman 
    and Alicia Townsend Friedman Professor of Law, Economic, 
    and Finance, Director, Program on Corporate Governance, 
    Harvard Law School; Professor Charles M. Elson, Edgar S. 
    Woolard, Jr., Chair, John L. Weinberg Center for Corporate 
    Governance, Lerner College of Business and Economics, 
    University of Delaware; and Professor Steven Balsam, 
    Professor of Accounting, The Fox School of Business and 
    Management, Temple University. A statement for the record 
    was also submitted by Mr. Christopher Cox, Chairman, U.S. 
    Security and Exchange Commission.
September 13, 2006--Hearing on Taking the Pulse of Charitable 
    Care and Community Benefits at Nonprofit Hospitals. This 
    hearing considered several issues of non-profit hospitals, 
    including measurements and reporting of community benefit 
    and discounted charges or free care for low-income, 
    uninsured individuals. Witnesses included The Honorable 
    Phill Kline, Attorney General, State of Kansas; Sister 
    Carol Keehan, D.C., President and CEO, The Catholic Health 
    Association of the United States; Mr. Kevin E. Lofton, 
    Chair-Elect, American Hospital Association; Mr. Scott A. 
    Duke, CEO, Glendive Medical Center; Dr. Nancy Kane, 
    Professor of Health Management, Department of Health Policy 
    and Management, Harvard School of Public Health; and Mr. 
    Ray Hartz, Executive Director, Legal Aid Society of Eastern 
    Virginia, Inc.
September 20, 2006--Hearing on Our Business Tax System: 
    Objectives, Deficiencies, and Options for Reform. This 
    hearing examined the objectives, challenges, and 
    deficiencies of the U.S. business tax system as well as 
    reform options to address some of those deficiencies. The 
    Committee heard testimony from The Honorable David Walker, 
    Comptroller General, U.S. Government Accountability Office; 
    Dr. Robert Carroll, Deputy Assistant Secretary for Tax 
    Analysis, U.S. Department of the Treasury; The Honorable 
    Charles Rossotti, Senior Advisor, The Carlyle Group; Dr. 
    Thomas Neubig, National Director, Quantitative Economics 
    and Statistics, Ernst & Young LLP; Mr. David Bernard, 
    International President, Tax Executives Institute, Inc., 
    Vice President, Tax and Real Estate, Kimberly-Clark 
    Corporation; and Mr. Jeff Johannesen, Managing Director, 
    RSM McGladrey, Inc.
September 26, 2006--Hearing on Health Savings Accounts: The 
    Experience So Far. In this hearing, the Subcommittee on 
    Health Care heard testimony regarding how health savings 
    accounts work in practice and discussed how Congress can 
    improve health savings accounts for current and future 
    participants. Witnesses included Dr. Robert Carroll, Deputy 
    Assistant Secretary for Tax Analysis, U.S. Department of 
    the Treasury; Mr. John Dicken, Director, Health Care 
    Issues, U.S. Government Accountability Office; Mr. Joseph 
    V. Knight, Chief Financial Officer, Setpoint Systems; Dr. 
    Sara R. Collins, Assistant Vice President, Program for the 
    Future of Health Insurance, The Commonwealth Fund; Dr. John 
    C. Goodman, President and Chief Executive Officer, National 
    Center for Policy Analysis, and Mr. Eric C. Beittel, Enders 
    Insurance Associates.
September 28, 2006--Hearing on America's Public Debt: How Do We 
    Keep It From Rising? This hearing of the Subcommittee on 
    Long-Term Growth and Debt-Reduction focused on ways to 
    solve the U.S. budget deficit problem in light of our 
    government's long-term fiscal challenges. Testifying before 
    the Subcommittee were Mr. Robert L. Bixby, Executive 
    Director, The Concord Coalition; Dr. Peter R. Orszag, 
    Joseph A. Pechman Senior Fellow, Deputy Director, Economic 
    Studies, The Brookings Institution; Mr. Chris Edwards, 
    Director of Tax Policy Studies, Cato Institute; and The 
    Honorable Charles W. Stenholm, Former Member of Congress.
December 5, 2006--Hearing on Report Card on Tax Exemptions and 
    Incentives for Higher Education: Pass, Fail, or Need 
    Improvement? This oversight hearing addressed the topic of 
    tax benefits for higher education. More specifically, the 
    hearing looked at incentives provided to families and 
    students to help pay for higher education and the 
    significant tax breaks provided to colleges and 
    universities as tax-exempt organizations. Witnesses 
    included Mr. Daniel Golden, Deputy Bureau Chief, Boston 
    Bureau, The Wall Street Journal; Dr. Bridget Terry Long, 
    Associate Professor of Education and Economics, Harvard 
    University; Dr. James Johnson Duderstadt, President 
    Emeritus, University Professor of Science and Engineering, 
    University of Michigan; Ms. Patricia McGuire, President, 
    Trinity (Washington) University; Dr. Susan M. Dynarski, 
    Associate Professor of Public Policy, Kennedy School of 
    Government, Harvard University; and Mr. Michael Brostek, 
    Director, Tax Issues, Strategic Issues Team, U.S. 
    Government Accountability Office.

                   Full Committee Executive Meetings

2005
April 19, 2005--Executive Session to consider an original bill 
    entitled, ``Highway Reauthorization and Excise Tax 
    Simplification Act of 2005'' and, the Chairman's mark to S. 
    661, the ``United States Tax Court Modernization Act.''
June 16, 2005--Executive Session to consider an original bill 
    entitled, ``Energy Policy Tax Incentives Act of 2005.''
July 26, 2005--Executive Session to consider an original bill 
    entitled, the ``National Employee Savings and Trust Equity 
    Guarantee Act of 2005.''
November 15, 2005--Executive Session to consider an original 
    bill that will include the Committee's budget 
    reconciliation instructions pertaining to expiring tax 
    provisions and also additional incentives for hurricane 
    affected areas.
2006
June 28, 2006--Executive Session to consider S. 1321, the 
    ``Telephone Excise Tax Repeal Act of 2005,'' and an 
    amendment that incorporates S. 832, the ``Taxpayer 
    Protection and Assistance Act of 2005,'' and S. 3569, the 
    ``U.S.-Oman Free Trade Agreement Implementation Act.''
                                 TRADE

                         SUMMARY OF ACTIVITIES

    During the 109th Congress, the Committee exercised its 
oversight responsibilities and acted upon many important issues 
related to customs and international trade law and the American 
economy.
    In the first session, the Committee convened hearings on 
economic relations between the United States and China, and on 
the Dominican Republic-Central America-United States Free Trade 
Agreement. In addition, the Subcommittee on International Trade 
held hearings on the United States-Bahrain Free Trade Agreement 
and the status of ongoing negotiations in the World Trade 
Organization. The Committee also convened an informal meeting 
to consider proposed legislation implementing the Dominican 
Republic-Central America-United States Free Trade Agreement, 
and another informal meeting to consider proposed legislation 
implementing the United States-Bahrain Free Trade Agreement. 
Separately, members of the Committee participated in two 
meetings of the bipartisan, bicameral Congressional Oversight 
Group (COG). During these two COG meetings, members met with 
respective United States Trade Representatives, i.e., 
Ambassador Robert B. Zoellick and Ambassador Robert J. Portman, 
to discuss priorities and strategies for both potential and 
ongoing bilateral and multilateral trade negotiations.
    Separately, the Committee convened in open executive 
session to consider: S. 1307, the Dominican Republic-Central 
America-United States Free Trade Agreement Implementation Act; 
S.J. Res. 18, a joint resolution approving the renewal of 
import restrictions contained in the Burmese Freedom and 
Democracy Act of 2003; and S. 2027, the United States-Bahrain 
Free Trade Agreement Implementation Act. The Committee also 
held confirmation hearings for Robert J. Portman to be United 
States Trade Representative, Executive Office of the President; 
Shara L. Aranoff to be a Member of the United States 
International Trade Commission; Susan C. Schwab to be Deputy 
United States Trade Representative, Executive Office of the 
President; Karan K. Bhatia to be Deputy United States Trade 
Representative, Executive Office of the President; Franklin L. 
Lavin to be Under Secretary of Commerce for International 
Trade, United States Department of Commerce; Richard T. Crowder 
to be Chief Agricultural Negotiator, Office of the United 
States Trade Representative, Executive Office of the President; 
David M. Spooner to be Assistant Secretary of Commerce for 
Import Administration, United States Department of Commerce; 
and David Steele Bohigian to be Assistant Secretary of 
Commerce, Market Access and Compliance, United States 
Department of Commerce.
    During 2005, the Chairman worked to include a repeal of the 
Continued Dumping and Subsidy Offset Act (CDSOA) in the Deficit 
Reduction Act of 2005 (Pub. L. 109-171), in order to bring the 
United States into compliance with its obligations as a member 
of the World Trade Organization. The Chairman also worked to 
extend nondiscriminatory treatment (normal trade relations 
treatment) to the products of Ukraine. On November 18, 2005, S. 
632, a bill to authorize the extension of nondiscriminatory 
treatment (normal trade relations treatment) to the products of 
Ukraine, was discharged from the Committee by unanimous consent 
and passed by the Senate, without amendment, by unanimous 
consent. Corresponding legislation was not, however, passed by 
the House of Representatives in 2005. Instead, the House passed 
H.R. 1053, a bill to authorize the extension of 
nondiscriminatory treatment (normal trade relations treatment) 
to the products of Ukraine, on March 8, 2006. That bill was not 
referred to the Committee, but was instead passed by the 
Senate, without amendment, by unanimous consent on March 9, 
2006. The President signed H.R. 1053 into law on March 23, 2006 
(Pub. L. 109-205).
    In the second session, the Committee convened hearings on: 
the Administration's trade agenda for 2006; U.S.-China economic 
relations (revisited); authorizations of customs and trade 
functions; the United States-Peru Trade Promotion Agreement; 
and S. 3495, a bill to authorize the extension of 
nondiscriminatory treatment (normal trade relations treatment) 
to the products of Vietnam. In addition, the Subcommittee on 
International Trade held hearings on: the United States-Oman 
Free Trade Agreement; Cuno and competitiveness--where to draw 
the line; How much should border taxes matter?--tax 
jurisdiction in the new economy; and the North American Free 
Trade Agreement at year twelve. The Committee also convened an 
informal meeting to consider proposed legislation implementing 
the United States-Oman Free Trade Agreement, and another 
informal meeting to consider proposed legislation implementing 
the United States-Peru Trade Promotion Agreement. Members of 
the Committee also participated in one COG meeting, during 
which members met with United States Trade Representative Susan 
C. Schwab to discuss priorities and strategies for bilateral 
and multilateral trade negotiations. The Committee convened one 
additional Members' Meeting with Ambassador Schwab to discuss 
the status of the ongoing Doha Development Round negotiations 
of the World Trade Organization; the United States-Peru Trade 
Promotion Agreement; the United States-Colombia Trade Promotion 
Agreement; and any other trade matters of interest to members, 
including the process by which the Administration consults with 
the Committee during the negotiation and implementation of 
trade agreements pursuant to the Trade Promotion Authority 
contained in the Trade Act of 2002 (Pub. L. 107-210).
    Separately, the Committee convened in open executive 
session to consider S. 3569, the United States-Oman Free Trade 
Agreement Implementation Act, and S. 3495, a bill to authorize 
the extension of nondiscriminatory treatment (normal trade 
relations treatment) to the products of Vietnam. The Committee 
also held confirmation hearings for W. Ralph Basham to be 
Commissioner of Customs, United States Department of Homeland 
Security; Susan C. Schwab to be United States Trade 
Representative, Executive Office of the President; John K. 
Veroneau to be Deputy United States Trade Representative, 
Executive Office of the President; Dean A. Pinkert, to be a 
Member of the United States International Trade Commission; and 
Irving A. Williamson, to be a Member of the United States 
International Trade Commission.
    During 2006, the Chairman and Ranking Member of the 
Committee worked together to develop and introduce a number of 
important customs and trade bills, including S. 2467, the 
United States Trade Enhancement Act of 2006 (which included a 
provision to suspend the new shipper bonding privilege and a 
separate title to overhaul U.S. laws pertaining to oversight of 
currency exchange rates); and S. 3658, the Customs and Trade 
Facilitation Reauthorization Act of 2006 (which authorized the 
Bureau of Customs and Border Protection (CBP) in the United 
States Department of Homeland Security and included an overhaul 
of U.S. customs laws to reflect the establishment of CBP). The 
Chairman and Ranking Member also worked together to include a 
number of miscellaneous tariff bills in H.R. 4, the Pension 
Protection Act of 2006 (Pub. L. 109-280), and H.R. 6111, the 
Tax Relief and Health Care Act of 2006 (Pub. L. 109-432). Also 
included in H.R. 4 was the provision suspending the new shipper 
bonding privilege that had been included in S. 2467, while H.R. 
6111 included, inter alia, a provision to extend 
nondiscriminatory treatment (normal trade relations treatment) 
to the products of Vietnam; the Haitian Hemispheric Opportunity 
through Partnership Encouragement Act of 2006; the Africa 
Investment Incentive Act of 2006; the Andean Trade Preferences 
Extension Act; and a two-year extension of the generalized 
system of preferences (GSP) program. Finally, the Chairman and 
Ranking Member engaged in extensive negotiations and 
consultations with the chairs and ranking members of the 
Committee on Commerce, Science, and Transportation, and the 
Committee on Homeland Security and Governmental Affairs, over 
the development of H.R. 4954, the Security and Accountability 
For Every (SAFE) Port Act of 2006 (Pub. L. 109-347), in order 
to ensure that the national economic security interests of the 
United States were appropriately advanced in the legislation in 
addition to U.S. port security interests.
    The Chairman also worked to include in H.R. 4297, the Tax 
Increase Prevention and Reconciliation Act of 2005 (Pub. L. 
109-222), a repeal of binding contract relief for foreign sales 
corporation (FSC)/extraterritorial income (ETI) contracts that 
had been grandfathered under the American Jobs Creation Act of 
2004 (Pub. L. 108-357), in order to bring the United States 
into compliance with its obligations as a member of the World 
Trade Organization. In addition, the Chairman facilitated the 
renewal of trade sanctions against Burma. S.J. Res. 38, a joint 
resolution approving the renewal of import restrictions 
contained in the Burmese Freedom and Democracy Act of 2003, was 
introduced on May 26, 2006, and referred to the Committee. A 
companion resolution, H.J. Res. 86, had been introduced in the 
House of Representatives on May 19, 2006. H.J. Res. 86 was 
passed by the House of Representatives on July 11, 2006. That 
resolution was not referred to the Committee, but was instead 
passed by the Senate, without amendment, by voice vote on July 
26, 2006. The President signed H.J. Res. 86 on August 1, 2006 
(Pub. L. 109-251).
    Separately, the Chairman led one congressional delegation 
to Brazil and Argentina as part of the Committee's oversight of 
ongoing negotiations in the World Trade Organization. In 
Brazil, the delegation met with, inter alia, the Minister of 
Foreign Affairs, Celso Amorim; the Minister of Agriculture, 
Roberto Rodrigues; the Minister of Development, Industry and 
Trade, Luiz Fernando Furlan; and several members of the 
National Congress of Brazil. In Argentina, the delegation met 
with, inter alia, the Minister of Foreign Affairs, 
International Trade and Worship, Jorge Taiana; the Secretary of 
Agriculture, Livestock, Fisheries, and Food, Miguel Santiago 
Campos; the Governor of the Central Bank of Argentina, Martin 
Redrado; and several members of the National Congress of 
Argentina.

                  Full Committee Hearings and Meetings

2005
February 2, 2005--Meeting: Congressional Oversight Group with 
    Ambassador Robert B. Zoellick, United States Trade 
    Representative.
April 13, 2005--Hearing: ``The U.S.-Central America-Dominican 
    Republic Free Trade Agreement.'' Received testimony from 
    Ambassador Peter F. Allgeier, Deputy United States Trade 
    Representative, and two panels of representatives from the 
    private sector including Patricia A. Forkan, President, 
    Humane Society International, and Mark Levinson, Chief 
    Economist and Director of Policy, UNITE HERE, regarding the 
    free trade agreement concluded with Costa Rica, El 
    Salvador, Nicaragua, Honduras, Guatemala, and the Dominican 
    Republic.
April 21, 2005--Hearing: ``Nomination of Robert J. Portman, to 
    be United States Trade Representative.'' Received testimony 
    from the Hon. Robert J. Portman. The nominee was ordered 
    favorably reported by the Committee on April 26, 2005.
May 24, 2005--Hearing: ``Nomination of Shara L. Aranoff, to be 
    a Member of the International Trade Commission.'' Received 
    testimony from Shara L. Aranoff (among other non-trade 
    related nominees). The nominee was ordered favorably 
    reported by the Committee on July 29, 2005.
June 23, 2005--Hearing: ``U.S.-China Economic Relations.'' 
    Received testimony from Senator Collins; Senator Bayh; 
    Senator Graham; Senator Stabenow; the Honorable Alan 
    Greenspan, Chairman, Board of Governors, The Federal 
    Reserve Board; the Honorable John W. Snow, Secretary, 
    United States Department of the Treasury; and a panel of 
    representatives from the private sector including Dr. 
    Kenneth Rogoff, Thomas D. Cabot Professor of Public Policy, 
    Department of Economics, Harvard University. The hearing 
    examined a number of tensions in economic relations between 
    the United States and China.
September 8, 2005--Meeting: Congressional Oversight Group with 
    Ambassador Robert J. Portman, United States Trade 
    Representative.
October 18, 2005--Hearing: ``Nomination of Susan C. Schwab, to 
    be Deputy United States Trade Representative, Executive 
    Office of the President; Karan K. Bhatia, to be Deputy 
    United States Trade Representative, Executive Office of the 
    President; and Franklin L. Lavin, to be Under Secretary of 
    Commerce for International Trade, United States Department 
    of Commerce.'' Received testimony from the three nominees 
    (among other non-trade related nominees). The three 
    nominees were ordered favorably reported by the Committee 
    on October 25, 2005.
December 14, 2005--Hearing: ``Nomination of Richard T. Crowder, 
    to be Chief Agricultural Negotiator, Office of the United 
    States Trade Representative, Executive Office of the 
    President; David M. Spooner, to be Assistant Secretary of 
    Commerce for Import Administration, United States 
    Department of Commerce; and David Steele Bohigian, to be 
    Assistant Secretary of Commerce, Market Access and 
    Compliance, United States Department of Commerce.'' 
    Received testimony from the three nominees (among other 
    non-trade related nominees). The three nominees were 
    ordered favorably reported by the Committee on December 16, 
    2005.
2006
February 16, 2006--Hearing: ``The Administration's Trade Agenda 
    for 2006.'' Received testimony from Ambassador Robert J. 
    Portman, United States Trade Representative, regarding, 
    inter alia, the implementation of existing trade 
    agreements; the status of ongoing bilateral and 
    multilateral trade negotiations; the Administration's 
    various trade enforcement efforts; and the Administration's 
    top-to-bottom review of U.S. trade relations with China.
March 29, 2006--Hearing: ``U.S.-China Economic Relations 
    Revisited.'' Received testimony from Ambassador Karan K. 
    Bhatia, Deputy United States Trade Representative, 
    Executive Office of the President; the Honorable Timothy D. 
    Adams, Under Secretary of the Treasury for International 
    Affairs, United States Department of the Treasury; the 
    Honorable Franklin L. Lavin, Under Secretary of Commerce 
    for International Trade, United States Department of 
    Commerce; and a panel of representatives from the private 
    sector including Dr. C. Fred Bergsten, Director, Institute 
    of International Economics. The hearing examined 
    developments in trade and economic relations between the 
    United States and China since the Committee conducted its 
    first oversight hearing in June 2005, as well as the 
    Administration's strategies and priorities for improving 
    such relations.
April 5, 2006--Hearing: ``Nomination of W. Ralph Basham, to be 
    Commissioner of Customs, United States Department of 
    Homeland Security.'' Received testimony from W. Ralph 
    Basham. The nominee was ordered favorably reported by the 
    Committee on May 18, 2006.
April 26, 2006--Hearing: ``Authorizations of Customs and Trade 
    Functions.'' Received testimony from the Honorable Stephen 
    Koplan, Chairman, United States International Trade 
    Commission; the Honorable Julie Myers, Assistant Secretary, 
    U.S. Immigration and Customs Enforcement, United States 
    Department of Homeland Security; the Honorable Jay Ahern, 
    Acting Commissioner of Customs, U.S. Customs and Border 
    Protection, United States Department of Homeland Security; 
    the Honorable Timothy Skud, Deputy Assistant Secretary of 
    Tax, Trade, and Tariff Policy, United States Department of 
    the Treasury; and a panel of representatives from the 
    private sector. The hearing reviewed the operation of 
    customs and trade functions in the Federal Government in 
    order to assist the Committee in preparing legislation to 
    reauthorize those functions. On July 13, 2006, the Chairman 
    introduced S. 3658, the Customs and Trade Facilitation 
    Reauthorization Act of 2006, on behalf of himself and the 
    Ranking Member. Senators Bingaman, Wyden, Conrad, and 
    Lincoln were subsequently added as cosponsors of the bill.
May 16, 2006--Hearing: ``Nomination of Susan C. Schwab, to be 
    United States Trade Representative, Executive Office of the 
    President.'' Received testimony from Ambassador Susan C. 
    Schwab. The nominee was ordered favorably reported by the 
    Committee on May 22, 2006.
June 29, 2006--Hearing: ``The U.S.-Peru Trade Promotion 
    Agreement.'' Received testimony from the Honorable Everett 
    Eissenstat, Assistant United States Trade Representative 
    for the Americas, Executive Office of the President, and a 
    panel of representatives from the private sector including 
    Richard L. Trumka, Secretary-Treasurer, American Federation 
    of Labor and Congress of Industrial Organizations (AFL-
    CIO), regarding the trade promotion agreement concluded 
    with Peru.
July 12, 2006--Hearing: ``S. 3495--A bill to authorize the 
    extension of nondiscriminatory treatment (normal trade 
    relations treatment) to the products of Vietnam.'' Received 
    testimony from Ambassador Karan K. Bhatia, Deputy United 
    States Trade Representative, Executive Office of the 
    President; the Honorable Eric John, Deputy Assistant 
    Secretary, Bureau of East Asian and Pacific Affairs, United 
    States Department of State; and two panels of 
    representatives from the private sector including Chris 
    Seiple, President, Institute for Global Engagement, and T. 
    Kumar, Advocacy Director for Asia, Amnesty International, 
    regarding the extension of permanent normal trade relations 
    to Vietnam.
July 19, 2006--Members' Meeting with Ambassador Susan C. 
    Schwab, United States Trade Representative, to discuss the 
    status of the ongoing Doha Development Round negotiations 
    of the World Trade Organization; the United States-Peru 
    Trade Promotion Agreement; the United States-Colombia Trade 
    Promotion Agreement; and any other trade matters of 
    interest to members, including the process by which the 
    Administration consults with the Committee during the 
    negotiation and implementation of trade agreements pursuant 
    to the Trade Promotion Authority contained in the Trade Act 
    of 2002 (Pub. L. 107-210).
September 21, 2006--Hearing: ``Nomination of John K. Veroneau, 
    to be Deputy United States Trade Representative, Executive 
    Office of the President.'' Received testimony from John K. 
    Veroneau (in addition to one other non-trade related 
    nominee). The nominee was ordered favorably reported by the 
    Committee on September 27, 2006.
September 27, 2006--Meeting: Congressional Oversight Group with 
    Ambassador Susan C. Schwab, United States Trade 
    Representative.
December 5, 2006--Hearing: ``Nomination of Dean A. Pinkert, to 
    be a Member of the International Trade Commission; Irving 
    A. Williamson, to be a Member of the International Trade 
    Commission.'' Received testimony from the two nominees 
    (among other non-trade related nominees). The two nominees 
    were ordered favorably reported by the Committee on 
    December 6, 2006.

                  Subcommittee on International Trade

                         Hearings and Meetings

2005
October 6, 2005--Hearing: ``U.S.-Bahrain Free Trade 
    Agreement.'' Received testimony from the Honorable Shaun 
    Donnelly, Assistant United States Trade Representative for 
    Europe and the Mediterranean, Executive Office of the 
    President, and a panel of representatives from the private 
    sector including Robert C. Baugh, Executive Director, 
    American Federation of Labor and Congress of Industrial 
    Organizations (AFL-CIO), and David Hamod, President and 
    CEO, National U.S.-Arab Chamber of Commerce, regarding the 
    free trade agreement concluded with Bahrain.
October 27, 2005--Hearing: ``The Status of World Trade 
    Organization Negotiations.'' Received testimony from 
    Ambassador Peter Allgeier, Deputy United States Trade 
    Representative, Executive Office of the President, and a 
    panel of representatives from the private sector including 
    Craig Lang, President, Iowa Farm Bureau Federation, 
    regarding the status of the ongoing Doha Development Round 
    negotiations of the World Trade Organization.
2006
March 6, 2006--Hearing: ``The U.S.-Oman Free Trade Agreement.'' 
    Received testimony from Ambassador Susan C. Schwab, Deputy 
    United States Trade Representative, Executive Office of the 
    President, and a panel of representatives from the private 
    sector including Thea M. Lee, Policy Director for 
    Legislation, American Federation of Labor and Congress of 
    Industrial Organizations (AFL-CIO), and David Hamod, 
    President and CEO, National U.S.-Arab Chamber of Commerce, 
    regarding the free trade agreement concluded with Oman.
March 16, 2006--Hearing: ``Cuno and Competitiveness: Where to 
    Draw the Line.'' Received testimony from Senator Voinovich 
    and a panel of representatives from both academia and the 
    private sector, as well as from Harley T. Duncan, Executive 
    Director, Federation of Tax Administrators, regarding the 
    decision of the United States Court of Appeals for the 
    Sixth Circuit in the case of Cuno v. DaimlerChrysler and S. 
    1066, the Economic Development Act of 2005.
July 25, 2006--Hearing: ``How Much Should Borders Matter?: Tax 
    Jurisdiction in the New Economy.'' Received testimony from 
    Senator Dorgan; Senator Enzi; the Honorable Christopher 
    Rants, Speaker, Iowa House of Representatives; and two 
    panels of representatives from both the private sector and 
    state taxation authorities, regarding the taxation of 
    remote sales over the Internet and S. 2152, the Sales Tax 
    Fairness and Simplification Act.
September 11, 2006--Hearing: ``NAFTA at Year Twelve.'' Received 
    testimony from the Honorable John Melle, Deputy Assistant 
    United States Trade Representative for North America, 
    Executive Office of the President; the Honorable Cathy 
    Sauceda, Director, Special Enforcement, U.S. Customs and 
    Border Protection, United States Department of Homeland 
    Security; and a panel of representatives from the private 
    sector and non-governmental organizations including Dr. 
    Sidney Weintraub, William E. Simon Chair in Political 
    Economy, Center for Strategic & International Studies, and 
    Sandra Polaski, Senior Associate and Director, Trade, 
    Equity, and Development Project, Carnegie Endowment for 
    International Peace, regarding U.S. trade and investment 
    relationships with Canada and Mexico.

                   Full Committee Executive Meetings

2005
June 28, 2005--Executive Session: ``S. 1307, the Dominican 
    Republic-Central America-United States Free Trade Agreement 
    Implementation Act, and S.J. Res. 18, a joint resolution 
    approving the renewal of import restrictions contained in 
    the Burmese Freedom and Democracy Act of 2003.'' In order 
    to allow Committee members ample opportunity to voice their 
    views on S. 1307, the Chairman held the meeting open until 
    the following day.
June 29, 2005--Executive Session: ``S. 1307, the Dominican 
    Republic-Central America-United States Free Trade Agreement 
    Implementation Act, and S.J. Res. 18, a joint resolution 
    approving the renewal of import restrictions contained in 
    the Burmese Freedom and Democracy Act of 2003.'' The 
    Committee ordered S. 1307 favorably reported without 
    amendment, by voice vote, a quorum being present. The 
    Committee unanimously ordered S.J. Res. 18 favorably 
    reported without amendment, by voice vote, a quorum being 
    present. See Report No. 109-128 for S. 1307, and Report No. 
    109-101 for S.J. Res. 18.
November 18, 2005--Executive Session: ``S. 2027, the United 
    States-Bahrain Free Trade Agreement Implementation Act.'' 
    The Committee ordered S. 2027 favorably reported without 
    amendment, by recorded vote, 20 ayes, 0 nays, a quorum 
    being present. See Report No. 109-199.
2006
June 28, 2006--Executive Session: ``S. 3569, the U.S.-Oman Free 
    Trade Agreement Implementation Act.'' The Committee ordered 
    S. 3569 favorably reported without amendment, by recorded 
    vote of those present and voting, 10 ayes, 3 nays, a quorum 
    being present. See Report No. 109-364.
July 27, 2006--Executive Session: ``S. 3495, a bill to 
    authorize the extension of nondiscriminatory treatment 
    (normal trade relations treatment) to the products of 
    Vietnam.'' In the absence of a quorum, the Chairman 
    recessed the meeting subject to the call of the Chair.
July 31, 2006--Executive Session: ``S. 3495, a bill to 
    authorize the extension of nondiscriminatory treatment 
    (normal trade relations treatment) to the products of 
    Vietnam.'' The Committee ordered S. 3495 favorably reported 
    without amendment, by recorded vote, 18 ayes, 0 nays, 2 
    present, a quorum being present. See Report No. 109-321.

                           Informal Meetings

2005
June 14, 2005--Informal Meeting: ``Proposed legislation 
    implementing the U.S.-Central America-Dominican Republic 
    Free Trade Agreement.'' The Committee considered draft 
    implementing legislation and a draft Statement of 
    Administrative Action for implementation of the Dominican 
    Republic-Central America-United States Free Trade 
    Agreement, which were submitted pursuant to the cooperative 
    procedures provided in the Trade Act of 2002 for the 
    approval of trade agreements. During the meeting, one 
    amendment was approved by voice vote, a quorum being 
    present. The Committee subsequently voted to approve the 
    informal recommendations, as amended, by recorded vote, 11 
    ayes, 8 nays (with one additional nay vote by proxy), a 
    quorum being present.
November 9, 2005--Informal Meeting: ``Proposed legislation 
    implementing the U.S.-Bahrain Free Trade Agreement.'' The 
    Committee considered draft implementing legislation and a 
    draft Statement of Administrative Action for implementation 
    of the United States-Bahrain Free Trade Agreement, which 
    were submitted pursuant to the cooperative procedures 
    provided in the Trade Act of 2002 for the approval of trade 
    agreements. The Chairman introduced one modification to the 
    draft Statement of Administrative Action. The Committee 
    subsequently voted to approve the informal recommendations, 
    as modified, by recorded vote, 20 ayes, 0 nays, a quorum 
    being present.
2006
May 18, 2006--Informal Meeting: ``Proposed legislation 
    implementing the U.S.-Oman Free Trade Agreement.'' The 
    Committee considered draft implementing legislation and a 
    draft Statement of Administrative Action for implementation 
    of the United States-Oman Free Trade Agreement, which were 
    submitted pursuant to the cooperative procedures provided 
    in the Trade Act of 2002 for the approval of trade 
    agreements. The Chairman introduced one modification to the 
    draft Statement of Administrative Action. During the 
    meeting, one amendment was approved by recorded vote, 18 
    ayes, 0 nays, a quorum being present. The Committee 
    subsequently voted to approve the informal recommendations, 
    as modified and amended, by recorded vote, 19 ayes, 0 nays, 
    a quorum being present.
July 27, 2006--Informal Meeting: ``Proposed legislation 
    implementing the U.S.-Peru Trade Promotion Agreement.'' The 
    Committee considered draft implementing legislation and a 
    draft Statement of Administrative Action for implementation 
    of the United States-Peru Trade Promotion Agreement, which 
    were submitted pursuant to the cooperative procedures 
    provided in the Trade Act of 2002 for the approval of trade 
    agreements. Without objection, the Committee adopted a 
    modified version of an amendment to the draft Statement of 
    Administrative Action offered by Senators Conrad, Thomas, 
    Wyden, Baucus, Grassley, and Bunning. In the absence of a 
    quorum, the Chairman recessed the meeting subject to the 
    call of the Chair.
July 31, 2006--Informal Meeting: ``Proposed legislation 
    implementing the U.S.-Peru Trade Promotion Agreement.'' The 
    Committee voted to approve the informal recommendations, as 
    amended, by recorded vote, 12 ayes, 7 nays, 1 present, a 
    quorum being present.
                                 HEALTH

                         SUMMARY OF ACTIVITIES

    The Committee on Finance under the leadership of Chairman 
Charles Grassley completed work on important legislation 
affecting Medicare, Medicaid, TANF and other health policy 
issues in its jurisdiction during the 109th Congress. During 
the first session, the Committee focused primarily on achieving 
savings required of it under the terms of the Budget Resolution 
but also held hearings on how to improve quality in Medicare.
    On October 25, 2006, the Committee considered and reported 
the Finance Committee provisions for S. 1932, ``The Deficit 
Reduction Omnibus Reconciliation Act of 2005.''
    As part of the budget reconciliation process, the Senate 
Finance Committee's legislation achieved $10 billion in net 
savings from Medicare and Medicaid by reducing wasteful 
spending and making other programmatic changes.
     Ultimately, the conference agreement on S. 1932, re-titled 
as the Deficit Reduction Act, made some of the most significant 
changes to the Medicaid program in the past 30 years including 
sweeping changes to allow states to provide different benefit 
packages and increased cost-sharing to certain populations. The 
bill made significant changes in senior's ability to access 
Medicaid's long-term care benefit by limiting senior's ability 
to transfer financial assets before becoming eligible for 
Medicaid and making other changes affecting senior's ability to 
hold certain assets while being eligible for Medicaid.
     Another key provision in the bill addressed Medicaid fraud 
and abuse by encouraging states to implement state false claims 
acts. The Federal False Claims Act has been the single most 
important available tool to recover the billions of dollars 
stolen through fraud or misspent every year, and committee 
members believed that adoption of a comparable act at the State 
level would lead to substantial savings for State Medicaid 
programs. In addition, the DRA reduced projected shortfalls in 
FY 06 Federal funds for the State Children's Health Insurance 
Program (SCHIP). The final bill also provided $2 billion in 
funding for relief to the states for health care costs 
resulting from Hurricane Katrina.
    The final conference report for the DRA was considered and 
passed by the Senate on December 21, 2006 and was signed into 
law by the President on February 8, 2006.
    During the second session of the 109th Congress, the 
Committee held hearings on implementation of the new 
prescription drug benefit, on healthcare coverage for small 
business, on physician-owned hospitals, and on the growing 
problems caused by the Methamphetamine epidemic for the child 
welfare system.
     On June 8, 2006 the Committee considered the Medicare, 
Medicaid, and SCHIP Indian Health Care Improvement Act of 2006, 
and the Improving Outcomes for Children Affected by Meth Act of 
2006. Both were reported favorably by the Committee.
     The final executive session of the 109th Congress 
considered S. 2010, the Elder Justice Act. The legislation 
highlighted several ways to combat the growing incidence of 
elder abuse each year in this country. The legislation enjoyed 
bipartisan support and was unanimously recommended to the full 
Senate.
     Following the Congressional elections of 2006, the 
Committee acted to ensure the continuation of critical health 
care programs by developing legislation to update certain 
payment policies, establish a voluntary quality reporting 
system for physicians, extend expiring provisions in the 
Medicare and Medicaid programs, and clarify legislative intent 
for certain Medicaid provisions enacted in the Deficit 
Reduction Act of 2005.
     Chairman Grassley and Ranking Member Baucus developed 
legislation in the Senate and, subsequently, in conjunction 
with the House Ways and Means and Energy and Commerce 
Committees, H.R. 6111, the Tax Relief and Health Care Act, was 
developed.
     The bill eliminated a 5-percent reduction in Medicare 
physician reimbursement scheduled to take effect in January of 
2007 and maintained reimbursement at the same level as in 2006. 
It also provided incentives for health care providers to 
deliver better quality care by establishing a voluntary quality 
reporting program for physicians and other eligible 
professionals who report quality measures beginning July 1, 
2007 and through December 31, 2007, and the legislation 
established a 1.5 percent bonus incentive payment for those who 
successfully participate in the program. The legislation also 
established a $1.35 billion fund to assist with physician 
payments in 2008. In addition, the legislation extended several 
expiring provisions enacted by the Medicare Prescription Drug, 
Improvement, and Modernization Act to help ensure 
beneficiaries' continued access to needed medical services.
     These included a provision extending the 1.0 floor in the 
Work Geographic Index for any locality in which the Index is 
less than 1.0, a provision continuing direct payments to 
independent laboratories for physician pathology services, a 
provision continuing Medicare reasonable cost payments for lab 
tests in small rural hospitals and extending payment for 
brachytherapy devices based on hospital costs. The legislation 
also authorized reimbursement for the administration by 
physicians of vaccines covered under the Medicare Part D 
program. Another important provision included in the final bill 
will result in improved accountability for the Medicare program 
with regard to fraud, abuse and payment errors by increasing 
funding for the Health Care Fraud and Abuse Control Account. 
The legislation codified the maximum rate at which a state can 
tax its health care providers under a state's Medicaid plan at 
5.5 percent through fiscal year 2011. The final bill also 
extended the Transitional Medical Assistance program and 
funding for abstinence education for two quarters of fiscal 
year 2007. The legislation also provided for a one-year 
extension of the therapy caps exceptions policy established in 
the Deficit Reduction Act. In addition, the legislation 
provided a 1.6 percent update to the composite rate for 
dialysis services under Medicare effective April 1, 2007, and 
made technical corrections to clarify legislative intent for 
certain Medicaid provisions enacted in the Deficit Reduction 
Act of 2005. After passage by the House, the bill was passed by 
the full Senate on December 9, 2006 and sent to the President 
for his signature.
    At the end of the session, Senators Grassley and Baucus 
worked with other members to develop legislation to redirect 
existing unspent fiscal year 2004 and 2005 SCHIP funds to 
reduce funding shortfalls experienced by some states. This 
provision was included as an amendment to H.R. 6164, the 
National Institutes of Health Reform Act. The amended bill was 
passed by the full Senate on December 9, 2006, passed by 
unanimous consent in the House, and sent to the President for 
his signature.

                  Full Committee Hearings and Meetings

2005
February 16, 2005--Hearing: ``The President's Budget 
        Proposals.'' The focus of the hearing was to provide an 
        opportunity for Secretary Leavitt to discuss the 
        Administration's priorities for the Department of 
        Health and Human Services in the President's Fiscal 
        Year 2006 proposed budget.
  The Honorable Michael O. Leavitt, Secretary of the Department 
        of Health and Human Services, was the only witness.

March 8, 2005--Hearing: ``Physician Owned Specialty Hospitals: 
        In the Interest of Patients or a Conflict of 
        Interest?''
  The purpose of the hearing was to hear from the Medicare 
        Payment Advisory Commission about the findings of a 
        study it undertook on physician-owned specialty 
        hospitals which were released to the public on March 8, 
        2006, as well as testimony from representatives of both 
        community and specialty hospitals. Witnesses included 
        Mr. Glenn Hackbarth, Chairman, Medicare Payment 
        Advisory Commission (MedPAC), Mr. Tom Gustafson, Deputy 
        Director, Center for Medicare Management, CMS, Dr. Alan 
        H. Pierrott, Past President, American Surgical Hospital 
        Association and Chief Executive Officer, PSC Health, 
        Inc., Mr. Larry Veitz, Chief Executive Officer, Lookout 
        Memorial Hospital, and Dr. J. Andy Sullivan, Chief 
        Medical Officer, Oklahoma University, Medical Center.

June 15, 2005--Hearing: ``The Future of Medicaid: Strategies 
        for Strengthening American's Vital Safety Net.'' The 
        hearing considered the bipartisan recommendations of 
        the National Governors Association and others on steps 
        that Congress should take to strengthen the Medicaid 
        program for the future in the context of the fiscal 
        challenges to this vital safety net program.
  Witnesses on the first panel included the Honorable Mark 
        Warner, Governor, State of Virginia and the Honorable 
        Mike Huckabee, Governor, State of Arkansas.

  Witnesses on the second panel included Alan Weil, J.D., 
        Executive Director and President, National Academy for 
        State Health Policy, Jeanne Lambrew, Ph.D., Senior 
        Fellow at the Center for American Progress, and Stuart 
        M. Butler, Ph.D., Vice President, Domestic and Economic 
        Policy Studies, The Heritage Foundation.

July 27, 2005--Hearing: ``Improving Quality in Medicare: The 
        Role of Value-Based Purchasing.'' The purpose of this 
        hearing was to better understand the role of value-
        based purchasing (also called pay-for-performance) in 
        improving the quality of care for Medicare 
        beneficiaries while also addressing the problem of 
        increasing health care costs.
  The witnesses provided perspectives from the government, 
        consumers, and providers. Witnesses included Mr. Herb 
        Kuhn, Director, Center for Medicare Management, Centers 
        for Medicare and Medicaid Services (CMS), Mr. Mark 
        Miller, Executive Director, The Medicare Payment 
        Advisory Commission (MedPAC), Dr. Byron Thames, M.D., 
        Board Member, AARP, Dr. Nancy H. Neilsen, M.D., Ph.D., 
        Speaker of the House of Delegates, American Medical 
        Association, Mr. Leo P. Brideau, President & CEO, 
        Columbia St. Mary's, Milwaukee, WI (representing the 
        American Hospital Association), and Dr. James J. 
        Mongan, M.D., President and CEO, Partners HealthCare.
2006
January 25, 2006--Members' Meeting: ``Medicare Prescription 
        Drug Benefit Implementation.'' The Members' Meeting 
        provided an opportunity for Finance Committee Members 
        to discuss issues that arose during initial weeks of 
        the Medicare prescription drug benefit and the 
        Administration's responses to those issues. 
        Administration participants included the Secretary of 
        Health and Human Services and the Administrator of the 
        Centers for Medicare & Medicaid Services.

February 8, 2006--Hearing: ``Implementation of the New Medicare 
        Drug Benefit.'' The goal of this hearing was to provide 
        an opportunity for the Centers for Medicare and 
        Medicaid Services (CMS) to inform the committee 
        concerning Part D implementation issues encountered 
        during the initial days of the new Medicare drug 
        benefit and address the steps taken by the Agency to 
        correct them.
  In addition to Administrator McClellan, the hearing included 
        testimony from representatives of two prescription drug 
        plans, a chain pharmacy, an independent pharmacy, and 
        groups involved in educating and enrolling 
        beneficiaries. The witnesses consisted of the Honorable 
        Mark McClellan, MD, Ph.D., Administrator, Centers for 
        Medicare and Medicaid Services, William Fleming, 
        PharmD., Vice President, Pharmacy Management, Humana 
        Inc., KY, Susan E. Rawlings, President, Senior 
        Services, WellPoint, David W. Bernauer, Chairman and 
        CEO, Walgreen Co., Tobey Schule, R. Ph., Owner of Sykes 
        Pharmacy, Joy Paeth, Chief Executive Officer, Area 
        Agency on Aging of Southwestern Illinois, and Pamela 
        Willoughby, R.N., Faith Community Nurse, St. Johns 
        Episcopal Church and Bedford Presbyterian Church.

February 9, 2006--Hearing: ``The President's Fiscal Year 2007 
        Budget Proposal.'' The focus of the hearing was to 
        provide an opportunity for Secretary Leavitt to discuss 
        the Administration's priorities for the Department of 
        Health and Human Services (HHS) in the President's 
        Fiscal Year 2007 proposed budget.
  The Honorable Michael O. Leavitt, Secretary, Department of 
        Health and Human Services, was the only witness.

April 6, 2006--Hearing: ``Health Care Coverage for Small 
        Business: Challenges and Opportunities.'' As part of 
        the Committee's ongoing effort to address the problem 
        of the uninsured, the hearing considered the challenges 
        faced by small businesses in providing health care 
        coverage for their employees.
  The witnesses included Mr. Joe Rossman, Vice President, 
        Associated Builders and Contractors, Dr. Deborah 
        Chollet, Senior Fellow, Mathematica Policy Research, 
        Dr. Len Nichols, Director, Health Policy Program, New 
        America Foundation, and Mr. Todd McCracken, President, 
        National Small Business Association.

April 25, 2006--Hearing: ``The Social and Economic Effects of 
        the Methamphetamine Epidemic on America's Child Welfare 
        System.'' This hearing focused on the strain on 
        America's child welfare system caused by the 
        methamphetamine epidemic.
  The witnesses on the first panel featured parents and 
        families in recovery from meth addiction. They 
        included: Ms. Allison Bruno, Ms. Aaronette Noble, Mr. 
        Darren Noble, and Mr. Joey Binkley.

  Witnesses on the second panel included Mr. Kevin T. Frank, 
        Regional Administrator for the Department of Public 
        Health and Human Services, Child and Family Services 
        Division in South Central Montana, Nancy K. Young, 
        Ph.D., Director, Children and Family Futures, Inc. 
        National Center on Substance Abuse and Child Welfare, 
        and Reverend Fredrick Aigner, Ph.D., President/CEO, 
        Lutheran Social Services of Illinois.

May 10, 2006--Hearing on Child Welfare: ``Fostering Permanence: 
        Progress Achieved and Challenges Ahead for America's 
        Child Welfare System.'' This hearing examined child 
        welfare issues generally, and specifically focused on 
        the Promoting Safe and Stable Families Program and the 
        Mentoring of Children of Prisoners programs. The 
        statutory authorization for both programs was scheduled 
        to expire at the end of fiscal year 2006. Witnesses 
        included: Joan Ohl, Commissioner of the Administration 
        for Children, Youth, and Families; Jackie Hammers-
        Crowell, former foster child and foster care advocate; 
        Gary Stangler, Executive Director, Jim Casey Youth 
        Opportunities Initiative; Arlene Templer MSW, ACSW, 
        CRC, Confederate Salish and Kootenai Tribe, Department 
        of Human Resources Development, Social Services 
        Division Manager, Pablo, Montana; and Joe Kroll, 
        executive director, North American Council on Adoptable 
        Children.

May 11, 2006--Members' Meeting: ``Pharmaceutical Manufacturer 
        Patient Assistance Programs.'' The purpose of the 
        meeting was to discuss pharmaceutical manufacturer 
        patient assistance programs (PAPs) and their continued 
        operation alongside the Medicare prescription drug 
        benefit. Participants included: David Brennan, CEO, 
        AstraZeneca Pharmaceuticals PLC; Peter R. Dolan, 
        CEOBristol-Myers Squibb Company; Sidney Taurel, 
        Chairman & CEO Eli Lilly & Company; David Stout, 
        President of Pharmaceutical Operations, 
        GlaxoSmithKline; Seth H.Z. Fischer, Company Group 
        Chairman, North America Pharmaceuticals, Johnson & 
        Johnson; Ian Spatz, Vice President, Merck & Co., Inc; 
        Karen Katen, Vice Chairman, Pfizer, Inc; Fred Hassan, 
        Ph.D., Chairman & CEO, Schering-Plough Corporation; 
        Billy Tauzin, President & CEO, PhRMA.

May 17, 2006--Hearing: ``Physician-Owned Specialty Hospitals: 
        Profits before Patients?'' The purpose of the hearing 
        was to reexamine the issue of physician ownership of 
        specialty hospitals utilizing information that was 
        recently obtained through an investigation into these 
        facilities by committee staff. The witnesses included 
        the Reverend Mike Wilson, Pastor, Sellwood Baptist 
        Church, the Honorable Mark McClellan, Administrator, 
        Centers for Medicare and Medicaid Services, Ms. Cindy 
        Morrison, Vice President, Sioux Valley Hospital, Mr. 
        Dan Mulholland, Horty, Springer & Mattern, P.C., Mr. 
        John M. House, MD, Managing Partner, Urology Associates 
        of North Texas, and Chairman of the Board, USMD 
        Hospital, representing the American Surgical Hospital 
        Association, and Mr. James Cobey, MD, Orthopedic 
        Surgeon, Washington, DC.

September 7, 2006--Members' Meeting: ``Issues Related to 
        Witholding of Medicare Advantage and Medicare 
        Prescription Drug Plan Premiums from Beneficiaries' 
        Social Security Checks.'' The Goal of the meeting was 
        to provide Members with an opportunity to ask the CMS 
        Administrator and SSA Commissioner questions related to 
        the withholding of premiums and the erroneous refunds 
        made to beneficiaries. Participants included Dr. Mark 
        McClellan, CMS Administrator and Jo Anne Barnhart, 
        Social Security Commissioner.

September 12, 2006--Hearing: ``Breaking the Methamphetamine 
        Supply Chain: Law Enforcement Challenges.'' The purpose 
        of this hearing was to gather information on the latest 
        strategies to combat the methamphetamine trade and 
        associated money laundering activities, and to examine 
        the effectiveness of partnerships that some local 
        authorities have built with Federal resources and in 
        partnership with Federal Agencies.

  The first panel featured witnesses from local law enforcement 
        and included Lt. Dan Springer, Commander of the 
        Missouri River Drug Task Force, Mr. Carl Venne, Crow 
        Tribal Chairman, Tribal Leaders Council Chairperson, 
        and Advisory Member of the Montana Meth Project, and 
        Mr. Sean McCullough, Special Agent in Charge, Iowa 
        Division of Narcotics Enforcement.

  The second panel featured witnesses from Federal law 
        enforcement and included Mr. Joseph T. Rannazzisi, 
        Deputy Assistant Administrator, Office of Diversion 
        Control, Drug Enforcement Administration, Mr. Gregory 
        Passic, Director, Office of Drug Interdiction, U.S. 
        Customs and Border Protection and Mr. C. Andre Martin, 
        Director, Operations Policy & Support, IRS Criminal 
        Investigation.

                      Subcommittee on Health Care

2006
July 25, 2006--Hearing: CHIP at 10: A Decade of Covering 
        Children. The focus of the hearing was to examine the 
        history of the Children's Health Insurance Program and 
        highlight the successes of the program throughout the 
        last decade. Witnesses included the Honorable Edward M. 
        Kennedy, United States Senator, the Honorable Mark 
        McClellan, Administrator, Centers for Medicare and 
        Medicaid Services, Ms. Evelyne Baumrucker, Analyst, 
        Congressional Research Service, and Mr. Chris Peterson, 
        Analyst, Congressional Research Service.

November 16, 2006--Hearing: The Chip Program From the States' 
        Perspective. The purpose of this hearing was to have 
        State directors of the CHIP program share their 
        perspectives and examine any possible problems and 
        challenges that might arise when the Senate works 
        towards reauthorizing the program in the future. The 
        witnesses included Mr. Nate Checketts, Director of 
        Bureau of Access, Utah Department of Health; Ms. Sharon 
        Carte, Executive Director, West Virginia CHIP, Ms. Ann 
        C. Kohler, Director, Division of Medical Assistance and 
        Health Services, Department of Human Services, Mrs. 
        Tobi Drabczyk, representing her family, Ms. Nina 
        Owcharenko, The Heritage Foundation, and Ms. Lisa C. 
        Dubay, Associate, Bloomberg School of Health, Johns 
        Hopkins University.

                   Full Committee Executive Meetings

2005
October 25, 2005--Executive Session to consider the Finance 
        Committee's budget reconciliation instructions to 
        reduce the growth of outlays as contained in H. Con. 
        Res. 95.
  The Finance Committee considered items under its jurisdiction 
        on October 25, 2005 and reported its Budget 
        Reconciliation legislation to the Committee on the 
        Budget. The Chairman's mark saved approximately $10 
        billion over a 5-year period by reducing wasteful and 
        unnecessary spending, closing loopholes, taking steps 
        to pay providers more accurately, and improving 
        oversight. Some of the savings were directed to make 
        improvements to the Medicaid program and provide 
        immediate help for individuals affected by Hurricane 
        Katrina.
  The legislation increased and preserved coverage under 
        Medicare and Medicaid and provided improved access to 
        health care for over 500,000 disabled children. It also 
        saved states from having to cut or eliminate coverage 
        for over 697,000 low-income beneficiaries currently 
        enrolled in the SCHIP program.
  President Bush signed the conference agreement on the Deficit 
        Reduction Act of 2005 into law on February 8, 2006.

June 8, 2006--Executive Session to consider ``Medicare, 
        Medicaid, and SCHIP Indian Health Care Improvement Act 
        of 2006'' On June 8, 2006, the Finance Committee 
        considered and favorably reported the Medicare, 
        Medicaid and SCHIP Indian Health Care Improvement Act 
        of 2006.
  The Chairman's mark dealt with issues within the ``Indian 
        Health Care Improvement Act'' (IHCIA) which were under 
        the Finance Committee's jurisdiction, such as issues 
        related to Medicare, Medicaid, and SCHIP.

  The full IHCIA (S. 1057) had been earlier reported favorably 
        out of the Senate Indian Affairs Committee on March 16, 
        2006. The Finance Committee's action on the Medicare, 
        Medicaid, and SCHIP Indian Health Care Improvement Act 
        cleared these provisions for consideration by the full 
        Senate.

June 8, 2006--Executive Session to consider ``Improving 
        Outcomes for Children Affected by Meth Act of 2006.'' 
        The Committee also considered at this Executive Session 
        the ``Improving Outcomes for Children Affected by Meth 
        Act of 2006,'' S. 3525.
  The bill amended subpart 2 of part B of the title IV of the 
        Social Security Act to improve outcomes for children in 
        families affected by methamphetamine abuse and 
        addiction by reauthorizing the Promoting Safe and 
        Stable Families program which provides grants to 
        States, territories, and tribes for the provision of 
        four categories of services to children and families: 
        family support, family preservation, time-limited 
        reunification, and adoption promotion and support.

  The bill was ordered reported to the full Senate by the 
        Committee. This legislation was approved unanimously by 
        the full Senate on July 13, 2006. The final 
        legislation, after amendments between the houses and 
        with a final title of ``Child and Family Services 
        Improvement Act of 2006,'' was approved by the Senate 
        and the House on September 26, 2006 and was signed by 
        the President on September 28, 2006 (P.L. 109-288).

August 3, 2006--Executive Session to consider ``S. 2010, the 
        Elder Justice Act.'' The Committee favorably reported 
        the Elder Justice Act to the Senate on August 3, 2006.
  The legislation was designed to address the serious problem 
        of elder abuse. The number of older individuals who are 
        abused each year is believed to be between 500,000 and 
        5 million. Many experts also believe that many cases of 
        elder abuse are never reported to competent authority. 
        The legislation included provisions which would improve 
        the quality, quantity, and accessibility of information 
        about elder abuse; increase knowledge of how best to 
        combat elder abuse and support promising projects in 
        the elder abuse field; develop forensic capacity; 
        increase prosecutions; and increase training in elder 
        abuse of law enforcement and other appropriate 
        personnel.
  The bill gained bi-partisan support and was passed 
        unanimously by the members of the Committee. While the 
        full Senate did not consider S. 2010, a study to 
        address the feasibility of the collection of data 
        relating to elder abuse and exploitation was included 
        in H.R. 6111.
                            SOCIAL SECURITY

                         SUMMARY OF ACTIVITIES

    During the 109th Congress, the Committee held a series of 
hearings on the long-term outlook for Social Security and 
options for making the program solvent on a sustainable basis. 
It also held a hearing on the administrative challenges facing 
the Social Security Administration.

                        Full Committee Hearings

February 2, 2005--Hearing: ``Long-Term Outlook for Social 
    Security.'' This hearing featured the testimony of Douglas 
    Holtz-Eakin, Director, Congressional Budget Office; 
    Washington, DC and Stephen Goss, Chief Actuary, Social 
    Security Administration, Baltimore, MD. The testimony 
    presented the latest actuarial projections of the Social 
    Security program's long-term finances.
April 26, 2005--Hearing: ``Proposals To Achieve Sustainable 
    Solvency, With and Without Personal Accounts.'' This 
    hearing featured the testimony of Robert Pozen, Chairman, 
    MFS Investment Management, Boston, MA; Michael Tanner, 
    Director, Project on Social Security Choice, Cato 
    Institute, Washington, DC; Peter Ferrara, Senior Fellow, 
    Institute for Policy Innovation, Director of the Social 
    Security Project, Free Enterprise Fund, Washington, DC; 
    Peter R. Orszag, Joseph A. Pechman Senior Fellow, Economic 
    Studies, The Brookings Institution, Washington, DC; Joan 
    Entmacher, Vice President for Family Economic Security, 
    National Women's Law Center, Washington, DC. The 
    testimonies presented various options to address Social 
    Security's long-term financial deficits through a 
    combination of tax and benefit changes. The testimony also 
    examined whether or not the creation of personal accounts 
    could help achieve sustainable solvency.
May 25, 2005--Hearing: ``Social Security: Achieving Sustainable 
    Solvency.'' This hearing featured the testimony of Douglas 
    Holtz-Eakin, Director, Congressional Budget Office, 
    Washington, DC; Eugene C. Steuerle, Senior Fellow, Urban 
    Institute, Washington, DC; Stanford G. Ross, former 
    Commissioner of the Social Security Administration, 
    Washington, DC; George K. Yin, Chief of Staff, Joint 
    Committee on Taxation, Washington, DC; Russell George, 
    Office of the Treasury Inspector General for Tax 
    Administration, U.S. Department of the Treasury, 
    Washington, DC. The testimony presented various options to 
    address Social Security's long-term deficits through a 
    combination of tax and benefit changes. The testimony also 
    examined whether or not closing the tax gap could help 
    achieve sustainable solvency.
March 14, 2006--Hearing: ``Administrative Challenges Facing the 
    Social Security Administration.'' This hearing featured the 
    testimony of Jo Anne B. Barnhart, Commissioner, Social 
    Security Administration, Baltimore, Maryland; Patrick P. 
    O'Carroll, Jr., Inspector General, Social Security 
    Administration, Baltimore, Maryland; Richard E. Warsinskey, 
    President, National Council of Social Security, Management 
    Associations, Inc., Cleveland, Ohio; Eileen Sweeney, Co-
    Chair, Social Security Task Force, Consortium for Citizens 
    with Disabilities Senior Fellow, Center on Budget and 
    Policy Priorities, Washington, DC; Erwin Hathaway, Social 
    Security Disability Insurance beneficiary, Trego, Montana. 
    The testimony highlighted the increasing responsibilities 
    being placed on the Social Security Administration in the 
    areas of Medicare, immigration, and identity fraud. The 
    testimony also examined the adverse impact these additional 
    responsibilities have on the agency's ability to perform 
    its primary duties. The hearing discussed the role of 
    Continuing Disability Reviews (CDRs) and how CDRs are not 
    being performed at the optimal level due to administrative 
    budget issues. The fact that CDRs save approximately $10 
    (ten) dollars for each dollar spent on CDRs was also 
    highlighted at the hearing. Related to budget constraints, 
    the long waiting times that disability applications must 
    endure to receive a resolution of their disability 
    application was also discussed. To better understand how 
    the long wait times affect constituents, a disability 
    beneficiary from Montana described his almost four year 
    ordeal of waiting for final resolution of his application 
    for disability benefits.

          Subcommittee on Long-Term Growth and Debt Reduction

September 28, 2006--Hearing: ``America's Public Debt: How Do We 
    Keep It From Rising?'' This hearing featured the testimony 
    of Robert L. Bixby, Executive Director, The Concord 
    Coalition, Arlington, VA; Peter R. Orszag, Joseph A. 
    Pechman Senior Fellow, Deputy Director, Economic Studies, 
    The Brookings Institution, Washington, DC; Chris Edwards, 
    Director of Tax Policy Studies, Cato Institute, Washington, 
    DC; Charles W. Stenholm, Former Member of Congress, 
    Washington, DC. The testimony highlighted the long-term 
    fiscal challenge facing the Federal Government and it 
    examined various options to address this challenge.
                      OVERSIGHT AND INVESTIGATIONS

                         SUMMARY OF ACTIVITIES

    Congressional authority to conduct oversight is extensive 
and powerful. Numerous Supreme Court decisions have established 
and supported the broad and encompassing power in the Congress 
to engage in oversight and investigation. In the seminal 
Supreme Court ruling in McGrain v. Daugherty (1927), the Court 
declared that, ``the power of inquiry--with the process to 
enforce it--is an essential and appropriate auxiliary to the 
legislative function.'' In the landmark decision in Watkins v. 
United States (1957), the Court emphasized that Congress' 
investigative power is at its peak when the subject is alleged 
waste, fraud, abuse, or maladministration within the government 
department. Senator Charles E. Grassley, Chairman of the 
Committee on Finance, takes seriously his constitutional 
oversight responsibilities and has tirelessly worked to keep 
the Federal Government effective, transparent, and accountable.
    During the 109th Congress, the Chairman's oversight efforts 
ranged from examining certain practices and fraud at the 
Department of Health and Human Services (``HHS''), the Centers 
for Medicare and Medicaid Services (``CMS''), and the Food and 
Drug Administration (``FDA'') to the agencies of the Department 
of Agriculture (``USDA''), the Securities and Exchange 
Commission (``SEC''), the Department of Housing and Urban 
Development (``HUD''), the Federal Bureau of Investigation 
(``FBI''), and the Department of Homeland Security (``DHS''). 
The Chairman continued working to control fraud, waste, and 
abuse including the misuse of government-issued credit cards in 
the aftermath of Hurricanes Katrina and Rita and mismanagement 
and corruption at the Federal Aviation Administration. 
Highlights of the Committee's investigations ranged from 
targeting fraud and abuse in the Medicaid prescription drug 
program to ensuring that the Government has adequate supplies 
of vaccines stockpiled in the event of an anthrax attack. The 
Chairman also continued to champion whistleblowers in 
government and private industry to come forward and expose 
fraud and wrongdoing for the public good. The Chairman also 
continued to rely heavily on the services and expertise of the 
Government Accountability Office (``GAO'') and the various 
agency inspectors general.

                                HEARINGS

Medicaid Waste, Fraud and Abuse
    A two-day oversight hearing was held June 28-29, 2005 
entitled, ``Medicaid Waste, Fraud and Abuse: Threatening the 
Health Care Safety Net.'' This hearing examined the various 
vulnerabilities of the Medicaid program which threaten both the 
long term sustainability of the Medicaid program and the 
quality of care provided to Medicaid beneficiaries. The 
Medicaid program was originally designed to provide healthcare 
coverage for the most vulnerable populations, including low-
income Americans, children, pregnant women, individuals with 
disabilities, and the elderly. With the ever increasing costs 
of healthcare in the United States and the increasing role 
Medicaid is asked to fill, the Committee chose to examine 
fraud, waste and abuse in the Medicaid program.
    The topics covered included the misappropriation of Federal 
funds through the upper payment level (``UPL'') rules and 
intergovernmental transfer (``IGT'') policies under the 
Medicaid program. Title XIX of the Social Security Act 
authorizes Federal Medicaid funds to be provided to the states 
to finance health care for low-income, elderly, and disabled 
individuals, subject to states' compliance with certain Federal 
requirements. Among these is the requirement that states' 
payment for services be consistent with efficiency, economy, 
and quality of care, and not exceed the upper payment limit of 
what Medicare pays for comparable services. A panel of experts 
including officials from the GAO, CMS, and the Office of the 
Inspector General for the Department of Health and Human 
Services (``HHS-OIG'') discussed new reports issued on both 
UPLs and IGTs in addition to releasing a report on states' use 
of contingency fee consultants to enhance Federal share of 
Medicaid monies.
    Day two of the hearing discussed the topics of prescription 
drug pricing in the Medicaid program and the transfer of 
personal assets in order to qualify for Medicaid coverage. The 
panel opened with testimony from a qui tam relator who used the 
Federal False Claims Act to unearth a fraud scheme perpetrated 
by a large pharmaceutical company. In doing so, the panel 
discussed the various complex pricing mechanisms used to 
calculate the prices for prescription drugs covered by 
Medicaid, and compared them to changes enacted in the Medicare 
program by the Medicare Prescription Drug, Improvement, and 
Modernization Act of 2003 (``MMA''). The conclusion the panel 
reached was that Medicaid pays too much for prescription drugs 
and that an update to the formula that Medicaid uses to pay for 
prescription drugs is warranted and would help to free more 
dollars in the program for other services.
    Asset transfers were also an issue of focus during the 
second day of the hearing. Asset transfers are essentially a 
scenario of seniors who transfer significant portions of their 
assets in order to qualify for Medicaid prior to requiring long 
term care. In Chairman Grassley's opening statement, he pointed 
out that in 2003, the GAO designated Medicaid a high-risk 
program because of escalating concerns about the quality of 
Federal oversight and the sheer size of the program. In Fiscal 
Year 2003, Medicaid spending was nearly $274 billion and was 
expected to double over the next decade. Because the Medicare 
and Medicaid programs are so large, even a small amount of 
fraud, waste and abuse is cause for concern. The Committee will 
continue to monitor this program in the 110th Congress.
Specialty Hospitals
    In May 2006, the Committee convened a hearing to examine 
several issues relating to the widespread growth of specialty 
hospitals and their effect on the Medicare system. At issue 
during the hearing was the impact that these arrangements had 
on patient safety and quality of care. The Committee also 
examined the various arrangements used to finance these 
hospitals. The Committee was concerned that many times, these 
arrangements would involve ``sweetheart'' deals with specialty 
physicians. With such deals, investors were often offered no to 
low-interest loans, investment without risk, and in some 
instances agreements to purchase land prior to significant 
appreciation. The Committee's investigation leading up to the 
hearing also identified at least 40 specialty hospitals that 
were constructed despite a congressional moratorium on building 
such. Also at issue for the hearing was CMS enforcement and 
oversight of the issue. The Committee will continue to monitor 
this issue in the 110th Congress.
Border Security
    In August 2006, the Committee held a follow-up hearing to a 
2003 hearing regarding lax controls near our nation's borders. 
In 2006, the Committee convened the hearing entitled, ``Border 
Insecurity, Take Two: Fake IDs Foil the First Line of 
Defense.'' The purpose of the hearing was to examine the 
progress made in further securing and strengthening various 
points of entry to our borders. The hearing presented an 
opportunity to demonstrate how the nation's border crossings 
are still extremely vulnerable. At issue was the publication of 
a GAO report where the investigative agency portrayed their 
ability to send investigators across the border without proper 
identification; in this case GAO investigators easily passed 
through using fraudulent documents and identifications. The 
Committee subsequently issued a new request to the GAO to 
identify weaknesses in Northern and Southern border crossings 
where there is little CBP presence. The Committee will continue 
to monitor this issue in the 110th Congress.
Nomination of Daniel Levinson for Inspector General of the Department 
        of Health and Human Services
    In February 2005, the Oversight Committee oversaw the 
successful nomination of Daniel Levinson to be Inspector 
General of the Department of Health and Human Services. Mr. 
Levinson was reported favorably out of Committee and confirmed 
by the U.S. Senate.

                              LEGISLATION

Budget Reconciliation and the Deficit Reduction Act of 2005
    The Committee considered a number of reforms to the 
Medicare and Medicaid programs as part of the Deficit Reduction 
Act of 2005 (``DRA''). Among the key reforms to the Medicaid 
program were some ground breaking anti-fraud provisions which 
were directly related to vulnerabilities highlighted as part of 
the Committee's two-day hearing on Medicaid fraud, waste, and 
abuse.
    Among the changes, the first major reform included amending 
the payment formula for prescription drugs from the average 
wholesale price to the average manufacturer price. The second 
major change included as part of the DRA was the enhancement of 
recovery by the Medicaid program for payments made when a 
beneficiary already has some form of insurance. Known as third 
party liability, this loophole costs Medicaid hundreds of 
millions of dollars per year.
    The third anti-fraud provision was perhaps the most 
significant. As noted in the Committee's hearing on Medicaid 
fraud, whistleblower lawsuits often provide the most 
information to the government in helping to curb abuses of 
government programs. Whistleblower lawsuits have been filed 
with the Federal government for over 100 years as part of the 
Federal False Claims Act (``FCA''), also known as Lincoln's 
law. Originally passed to help curb abuses resulting from war 
profiteering, the FCA has long been recognized as the premier 
law for preventing fraud in government programs. As part of the 
Medicaid package in the DRA, the Committee included two 
provisions further extending the reach of the FCA. The first 
provision would provide an incentive to states to pass a state 
FCA that contains, at a minimum, the same provisions as the 
Federal version. The second provision would require employers 
of corporations doing business with Medicaid to educate their 
employees about the FCA and how it works. Taken together, these 
provisions represent a major step forward in helping to prevent 
future fraud in the Medicaid program.
S. 930--Food and Drug Administration Safety Act of 2005
    In response to escalating questions of the FDA's ability to 
respond to safety issues for pharmaceutical drugs and medical 
devices, Senator Grassley and Senator Christopher Dodd (D-CT) 
introduced the Food and Drug Administration Safety Act of 2005. 
The purpose of the legislation is to establish a new, permanent 
office of safety for postmarketing drug evaluation. The 
legislation would require the director of the new center to 
conduct activities to ensure the safety and effectiveness of 
FDA approved drugs and licensed biological products, including: 
(1) conducting postmarket risk assessment and surveillance of 
such drugs and products; (2) determining whether a postmarket 
study is required; (3) contracting, or requiring the sponsor of 
such a drug or product to contract, with the holders of 
domestic and international surveillance databases to conduct 
epidemiologic and other observational studies; (4) determining 
whether a drug or product may present an unreasonable risk to 
the health of patients or the general public; (5) taking 
corrective action if such an unreasonable risk may exist; and 
(6) making information about the safety and effectiveness of 
such drugs and biological products available to the public and 
health care providers in a timely manner.
S. 470--Fair Access to Clinical Trials Act of 2005
    In 2005, Senator Grassley, along with Senators Dodd, 
Johnson (D-SD), and Wyden (D-OR) introduced the Fair Access to 
Clinical Trials Act of 2005 (``FACT Act''). This legislation 
was proposed following a string of incidents of drug sponsors 
not publishing adverse clinical trial results for experiment 
drugs in their pipeline. The FACT Act requires the Director of 
the National Institutes of Health (NIH), to establish and 
operate a data bank of information on clinical trials, to 
include: (1) a clinical trials registry of health-related 
interventions conducted to test the safety or effectiveness of 
any drug, biological product, or device intended to treat 
serious or life-threatening diseases and conditions; and (2) a 
clinical trials results database of health-related 
interventions to test the safety or effectiveness of any drug, 
biological product, or device.

                      OTHER OVERSIGHT INITIATIVES

               Centers for Medicare and Medicaid Services

Information Technology Programs
    Chairman Grassley requested that the GAO conduct two 
separate reviews of information technology at HHS. The first 
review sought to address concerns regarding the coordination of 
funding and oversight for information technology projects 
within HHS at the Department level. GAO discovered that, (1) 
HHS' senior investment board does not regularly review 
component agencies information technology (``IT'') investments, 
even when component agency IT investments account for 89 
percent of the discretionary IT funding at HHS--or $2.049 
billion in FY 2006, (2) HHS does not evaluate the performance 
of its IT portfolio on a regular basis and does not conduct 
post-implementation reviews to ensure the maximization of IT 
investments, and (3) HHS currently has no structured mechanism 
in place to ensure that component agencies are implementing 
investment processes in line with those of the department. GAO 
concluded that HHS will continue to be challenged in its 
ability to make informed and prudent investment decisions in 
managing its annual, multi-billion dollar IT investment 
portfolio.
    The second audit requested an assessment of information 
technology programs at CMS. Among the findings, GAO determined 
that, (1) CMS' investment management guide does not reflect 
current processes used by HHS, (2) procedures for selecting and 
reselecting investments are not fully documented, (3) CMS has 
not designed procedures for involving the board in efforts to 
systematically review the progress of IT projects and systems 
in meeting cost, schedule, risk and benefit expectations, (4) 
critical processes and procedures for portfolio management have 
not been implemented by CMS, (5) CMS lacks the key capabilities 
needed to manage its investments as a portfolio, and (6) CMS 
does not have a comprehensive plan to coordinate and guide its 
improvement efforts. GAO's conclusion was that CMS' 
capabilities to manage its internal investments are limited and 
until CMS establishes the key practices required to build the 
investment foundation and manage its investments as a 
portfolio, CMS will not have the capabilities it needs to 
ensure that investments supporting its multibillion-dollar 
Medicare and Medicaid programs are being managed to minimize 
risk and maximize reward. The Committee will continue to 
monitor this issue in the 110th Congress.
Effectiveness of Quality Improvement Organizations
    In 2005, the Committee began to receive a series of 
allegations concerning the integrity, effectiveness and 
administration of various state and regional Quality 
Improvement Organizations (``QIO'' or ``QIOs''). In addition to 
allegations at the individual QIOs, the Committee also received 
allegations concerning mismanagement and integrity problems at 
CMS. Chairman Grassley, along with Ranking Member Max Baucus 
(D-MT), requested information from CMS, the American Health 
Quality Association, and various state and regional QIOs on a 
broad range of matters. More specifically, the Chairman and 
Ranking Member requested information (e.g., contracts, travel 
expenses, board compensation, and performance audits) to ensure 
beneficiaries were receiving quality care and pertinent 
information in a timely and appropriate manner. The Chairman 
also requested that the GAO and the HHS-OIG evaluate the fiscal 
integrity, beneficiary complaint process, and quality of 
nursing home care of QIOs. The Committee will continue its 
oversight of the QIOs in the 110th Congress.
Oncology Demonstration Project
    Chairman Grassley requested the HHS-OIG to evaluate the 
cost and effectiveness of the CMS oncology demonstration to 
improve the quality of care for chemotherapy patients. Under 
this demonstration, CMS provides a $130 allowance each time a 
chemotherapy provider reports on a Medicare patient's levels of 
nausea and/or vomiting, pain, and fatigue--three conditions 
commonly experienced as symptoms of cancer or side effects of 
cancer treatment. Medicare beneficiaries are liable for a co-
payment of $26 each time their provider bills the demonstration 
codes in conjunction with their chemotherapy. Among other 
things, the OIG discovered that chemotherapy patients were 
paying for services already covered as part of their routine 
care. In light of the HHS-OIG's preliminary findings, Chairman 
Grassley wrote to President Bush to urge that problems with the 
demonstration be addressed quickly to ensure that public funds 
and patients' out-of-pocket expenses are spent effectively and 
efficiently. According to the HHS-OIG, beneficiary liability 
for the demonstration during the first six months of 2005 was 
$22 million. CMS estimated that Medicare and its beneficiaries 
will spend $300 million under this demonstration project. 
Senator Grassley asked that CMS work with the cancer community 
and other relevant stakeholders to identify ways to use money 
from the Medicare program and its beneficiaries to improve both 
quality and outcomes of care for cancer patients and achieve 
value for money spent. He also requested a list of all 
demonstration participants and the amounts collected by those 
participants, which include physicians who received over 
$300,000 from the demonstration.
Tissue Banks
    The Committee initiated an inquiry of tissue bank oversight 
in response to patients, nation-wide, receiving human tissue 
implants that were allegedly harvested without consent and 
donors and tissue not properly screened and tested for 
bacteria, virus, and other contaminants. The Committee has 
requested information from and is reviewing documentation 
submitted by the FDA which is responsible for tissue bank 
oversight. Additionally, the Committee continues to engage the 
American Association of Tissue Banks, the HHS-OIG, and the 
Congressional Research Service to determine how to improve 
tissue bank oversight. This Committee investigation is ongoing.
Medicaid Drug Prices
    Chairman Grassley and Ranking Member Baucus continued their 
inquiry into the use of an exception to the best-price 
reporting requirements that applies to the Medicaid drug rebate 
program. The Chairman and Ranking Member sent request letters 
to the major pharmaceutical manufacturers to inquire about 
their practices with respect to the exception. To participate 
in the drug rebate program, a drug company must report to the 
government its best price, which is the lowest price at which 
its drug was sold to any purchaser in the United States. 
Congress created an exception to best-price reporting to 
encourage drug companies to continue making drugs available to 
charitable organizations at cheaper than market rates. Concerns 
have been raised that this exception has been used primarily as 
a tool to promote the use of certain drugs and has not been 
limited to charitable organizations. The Committee issued its 
findings in a letter to CMS in January 2007, but this 
investigation is ongoing.
Pharmaceutical Companies' Use of Educational Grants
    Chairman Grassley and Ranking Member Max Baucus wrote to 18 
leading drug manufacturers and five leading biotech companies 
to inquire about their use of education grants for the 
promotion of off-label drugs and medical devices. The purpose 
of the request was to determine whether, and to what extent, 
educational grants are used to support activities that are not 
sponsored or organized by professional organizations or do not 
involve formal educational presentations and determine if 
further guidance or legislation is needed. Educational grants 
were identified by the Department of Health and Human Services 
Office of Inspector General as a key risk area in its 2003 OIG 
Compliance Program Guidance for pharmaceutical manufacturers. 
The Chairman stated that he wanted to be sure that educational 
grants are not just a ``backdoor way to funnel money to doctors 
and other individuals who can influence prescribing and 
purchasing of particular prescription medicines, including off-
label prescriptions.'' Given the potential risk that off-label 
promotion creates for overutilization of Federal monies, the 
Committee is working to ensure that Federal monies are 
protected and utilized to the fullest extent with the lowest 
risk of waste and mismanagement. The Committee's inquiry into 
this matter is ongoing.
Quality of Care in Nursing Homes
    The Chairman continued his vigorous oversight of the 
nursing home industry to ensure that Medicaid and Medicare 
beneficiaries receive the quality of care that they deserve. 
The Chairman conducted various oversight efforts in the 109th 
Congress to ensure that this goal was achieved. One example 
includes an inquiry into CMS about a possible loophole in the 
Federal regulations which do not specifically require nursing 
homes to report serious patient injuries where the cause of the 
injury is known and the injury did not result from mistreatment 
or abuse. Chairman Grassley also wrote letters to five 
organizations involved in improving health quality that had 
previously committed to ensuring that additional Medicare 
reimbursement, provided beginning in 2003, would be spent on 
direct patient care. In 2003, Chairman Grassley helped secure a 
measurable increase in Medicare reimbursement for Skilled 
Nursing Facilities (``SNF''), resulting in more than $7 billion 
in additional reimbursement in the past two years. In the 
letters, the Chairman expressed concern that facilities could 
not demonstrate that the additional $7 billion attributable to 
the increased funding was spent on direct patient care. 
Chairman Grassley also asked the HHS-OIG to review the 2004 
cost reports submitted by SNFs to CMS to determine the 
proportion of SNFs reporting increased spending on direct 
patient care. Chairman Grassley also continued to monitor CMS's 
efforts to address problems identified by the GAO in its 2004 
report entitled Nursing Home Fire Safety: Recent Fires 
Highlight Weaknesses in Federal Standards and Oversight. CMS 
recently issued a new regulation requiring nursing homes to 
install smoke detectors in patient rooms and public areas of 
those older nursing homes that do not have sprinkler systems or 
hardwired smoke detectors and it has taken additional steps to 
address the GAO recommendations. In addition, in 2006, CMS 
issued a new regulation requiring all pre-existing nursing 
homes to have sprinkler systems installed in their facilities. 
The Committee will continue to monitor this issue in the 110th 
Congress.
Quality of Care for End Stage Renal Disease
    As part of the Chairman's continuing efforts to improve 
patient care at dialysis facilities, Senator Grassley and 
Representative Pete Stark (D-CA) wrote to CMS about its 
proposed rule updating conditions of coverage for end stage 
renal disease facilities. The letter congratulated CMS for the 
long awaited changes to the conditions of coverage, which had 
not been updated in almost 30 years. Chairman Grassley and 
Congressman Stark also noted that the proposed rule addressed 
many of the recommendations made by the GAO.
University of Medicine and Dentistry of New Jersey
    The Chairman and Ranking Member, through published media 
reports, became aware of allegations of Medicaid fraud, 
corruption, and mismanagement at the University of Medicine and 
Dentistry of New Jersey (``UMDNJ''). UMDNJ is one of New 
Jersey's, and one of the country's, largest health care 
universities and medical research facilities. Chairman Grassley 
and Ranking Member Baucus urged Governor Jon Corzine to reign 
in fraud, corruption, and mismanagement at the UMDNJ. The 
Chairman and Ranking Member requested that the Governor's 
office, in cooperation with UMDNJ officials, provide a 
comprehensive briefing on their plans to ensure that the UMDNJ 
is free from corruption and fraud and managed in the best 
interests of the citizens of New Jersey and American taxpayers. 
The names of UMDNJ internal ``whistleblowers'' who may have 
first warned university officials and legal counsel of the 
potential criminal fraud and misconduct were also requested.
    Subsequent to media reports of the Chairman and Ranking 
Member's letter to Governor Corzine, the former Vice President 
of Ambulatory Care at UMDNJ, Adam Henick, contacted the 
Committee staff and agreed to be interviewed. Mr. Henick had 
initially reported irregularities and problems with the 
Medicare and physician billing methodology of the University 
Hospital. After repeatedly reporting these problems to UMDNJ 
officials he was fired without cause from his position after 
approximately 2\1/2\ years. Subsequently, the UMDNJ came under 
scrutiny by Federal authorities for double-billing Medicaid and 
allegations of additional fraud and mismanagement. To avoid 
criminal prosecution, the UMDNJ entered into a two year 
Deferred Prosecution Agreement with the U.S. Attorney's Office, 
District of New Jersey, approved by the school's trustees, 
allowing for a Federal monitor with broad control to be in 
place at the UMNDJ. The Committee will keep abreast of 
developments at the UMDNJ.
Pharmacy Benefit Managers
    In 2006, the Committee received allegations regarding 
certain practices at mail order pharmacies where management may 
have prevented pharmacists from acting in the best interests of 
the patients they serve, including Medicare and Medicaid 
beneficiaries. As a result of these allegations, the Committee 
sent letters to three of the major pharmacy benefit managers in 
the industry inquiring about their practices relative to this 
concern. Among many concerns, the Committee received 
allegations suggesting that mail order pharmacies were: (1) 
pressuring staff pharmacists to increase the number of 
prescriptions each staff pharmacist handles per hour, (2) 
interfering with pharmacist judgment by denying requests to 
contact physicians when pharmacists are presented prescriptions 
that are illegible or otherwise unintelligible, (3) ignoring 
complaints raised by staff pharmacists regarding problems with 
automated software that cause prescriptions to be filled 
incorrectly, and (4) misrepresenting the published error rate 
at mail order facilities to mask the true number of errors.
Power Mobility Devices
    The Committee has a long-standing commitment to ensuring 
that Medicare funds used for power mobility devices (``PMDs'') 
are used effectively and efficiently. In 2004, the Committee 
conducted a hearing examining the extent to which Medicare 
overpaid for PMDs. As a result of this hearing and reports by 
the GAO and HHS-OIG, CMS began the process of modifying the 
payment schedule for PMDs. CMS' change in the fee schedule led 
to significant modifications for payments in the industry to 
eliminate the problems identified in the wide body of work 
concerning fraud, waste and abuse for this benefit. The 
Committee worked with CMS throughout its payment restructuring 
process to ensure that fair and adequate payments were made 
while ensuring that safeguards were in place to prevent fraud, 
waste and abuse. A new fee schedule went into effect on 
November 15, 2006.

                      Food and Drug Administration

Medicaid Reimbursements for Adderall and Adderall XR
    As part of the Committee's continuing oversight of the 
safety of prescription drugs, many of which are paid for with 
taxpayer dollars through the Medicare and Medicaid programs, an 
examination was conducted into a number of allegations 
regarding Adderall and Adderall XR. Adderall is a prescription 
amphetamine most often used to treat Attention Deficit 
Hyperactivity Disorder (``ADHD'') in both children and adults. 
According to an HHS-OIG estimate, Medicaid reimbursed for 
several million prescriptions over the past four years for 
Adderall and Adderall XR. Committee staff were advised that a 
series of meetings relating to Adderall and Adderall XR 
(Adderall meetings) were held between the FDA and its Canadian 
counterpart, Health Canada. Health Canada announced that it had 
suspended market authorization of Adderall due to safety 
information concerning the association of sudden deaths, heart-
related deaths, and strokes in both children and adults taking 
usual recommended doses. Information obtained by Committee 
suggests that during a recent Adderall meeting, one or more FDA 
employees requested that the Canadian government refrain from 
suspending the use of Adderall XR because there was concern 
that FDA could not handle another ``drug safety crisis.'' The 
Committee will continue to address this issue should any 
developments develop.
PolyHeme
    The Committee led an inquiry into the FDA's handling of a 
large clinical trial for Polyheme, a synthetic blood substitute 
that is currently in wide-spread clinical trials in major 
metropolitan areas. The clinical trial relies upon an informed-
consent exception in regulations relating to human subject 
protection. Specifically, the exception allows for testing 
human subjects in emergency situations without requiring their 
consent. While the Committee recognizes the need to conduct 
clinical trials in such situations, Senator Grassley was 
concerned with the way safety information was distributed by 
both the sponsor and the FDA. Essentially, consistent 
information was not presented to each of the test sites. 
Moreover, questions were raised about the level of community 
awareness that non-informed consent trials were in fact taking 
place. Those who wished not to participate in the clinical 
trial were required to wear a wrist-bracelet indicating such. 
It appeared that many people in the areas of the trials were 
not aware that such a trial was taking place. In addition, 
Senator Grassley voiced concern with the fact that in some 
instances, when authentic blood became available to a patient, 
it was withheld as part of the study.
Delay in Labeling Changes for Viagra
    Chairman Grassley initiated an investigation into the delay 
for labeling changes for Viagra, a prescription drug for 
erectile dysfunction (``ED''). At issue was whether the FDA and 
the drug sponsor took the necessary and timely steps to inform 
doctors and patients of permanent blindness associated with the 
use of the drug.
    Senator Grassley was specifically troubled that the FDA did 
not initiate label change discussions with the sponsor until 
more than a year after the Office of New Drugs (``OND'') was 
first made aware of non-arteritic anterior ischemic optic 
neuropathy risks (``NAION'').
    According to the safety evaluator monitoring adverse events 
associated with Viagra, OND was under time pressures to approve 
new drugs, so safety concerns often need to ``fit in'' wherever 
they could. Senator Grassley stated that this is yet another 
example of the ``separate but unequal'' relationship between 
OND and the Office of Drug Safety at the FDA.
     In a letter to the FDA, Senator Grassley asked how the 
agency planned to inform patients who have been prescribed 
erectile dysfunction drugs, including Viagra, of the blindness 
risks. According to the safety evaluator, conversations between 
physicians and their patients about NAION and ED drug use do 
not typically take place before patients are prescribed the 
medication. This is usually because physicians prescribing 
Viagra, such as urologists, may not be aware of the risks. 
Ophthalmologists who would address the condition are not in the 
position to prescribe ED drugs.
    Senate Grassley noted that this creates an environment for 
underreporting to the FDA of NAION that occurs in patients who 
have taken Viagra or another ED drug. Ultimately, the drug 
sponsor, and other sponsors of the same drug class, made 
labeling changes that made note of these risks.
Management at the Center for Biologics Evaluation and Research
    Chairman Grassley initiated an investigation involving the 
FDA's approval of a human immunodeficiency virus (``HIV'') test 
kit over the objections of the FDA employee responsible for 
reviewing the product. It was alleged that the test kit's 
sponsor had a cozy relationship with FDA management and that 
the FDA employee who objected to approval of the test kit was 
threatened with retaliation for bringing complaints forward. 
The Chairman sent several letters to the FDA requesting 
documentation relating to the approval of the test kit in 
addition to interviewing several FDA employees involved in the 
matter. Documentation submitted by FDA demonstrated that it had 
conducted a thorough investigation of the test kit's safety and 
efficiency that supported the decision to approve it. However, 
the investigation revealed significant problems with the 
management of the approval process in the approving division, 
including problems with the dispute resolution process. The 
Chairman is concerned that the management problems uncovered in 
this investigation are present throughout the FDA. The 
Committee has concluded this investigation.
Cyberonics
    In February 2005, Senator Grassley and Senator Baucus 
initiated an inquiry into the FDA's handling of Cyberonics, 
Inc.'s (``Cyberonics'') pre-market approval application to add 
a new indication--treatment-resistant depression (``TRD'')--to 
Cyberonics' Vagus Nerve Stimulation (``VNS'') Therapy System, 
an implanted device. On July 15, 2005, the FDA approved the 
device for TRD. The FDA approved the VNS Therapy System for TRD 
based upon a senior official overruling the comprehensive 
scientific evaluation of more than 20 FDA scientists, medical 
officers, and management staff who reviewed Cyberonics' 
application over the course of 15 months. The official approved 
the device despite the conclusion of the FDA reviewers that the 
data provided by Cyberonics in support of its application for a 
new indication did not demonstrate a reasonable assurance of 
safety and effectiveness sufficient for approval of the device 
for TRD. The FDA has publicized differences of scientific 
opinion within the agency when it has announced other 
controversial regulatory decisions. Throughout the review of 
Cyberonics's application, the team of FDA scientists, medical 
officers, and management staff involved recommended that the 
device not be approved for TRD. However, at every stage of the 
review, the team was instructed by the FDA official, who 
ultimately made the decision to approve the device, to proceed 
with the next stage of pre-market review. The Committee staff 
issued a report to the Chairman and Ranking Member of the 
Committee concerning these findings in February 2006.
Dr. Victoria Hampshire
    In 2005 and 2006, Senator Grassley wrote to the FDA after 
receiving allegations that a drug sponsor conducted an 
independent investigation into Dr. Victoria Hampshire, an FDA 
scientist and a commissioned officer in the Public Health 
Service. This investigation was conducted for the purpose of 
discrediting Dr. Hampshire because of her work cataloging 
adverse events for a product the company produced, information 
which ultimately led to the product's removal from the market. 
One fact that the investigation uncovered was that the FDA 
provided inaccurate statements to the general public in stating 
that the investigation into Dr. Hampshire was conducted with 
her knowledge and was not a criminal investigation. A thorough 
document review by the Committee revealed these two statements 
to be false. Senator Grassley and the Committee also sought 
information on how the agency interacted with the drug sponsor 
to actively discredit Hampshire for her work cataloging adverse 
events. Documents and information obtained by the Committee 
show that the then-FDA commissioner and chief counsel held a 
private meeting with the manufacturer at which no notes or 
minutes were taken. This meeting took place shortly before the 
FDA removed Hampshire as a presenter at its advisory meeting 
for the company's product. The Committee found issue with the 
event since a meeting of this nature was required by FDA 
regulations to retain accurate transcripts and notes of the 
meeting. However, no documents relevant to this event were 
created. This matter is currently ongoing.
Pharmacy Compounding of Drugs
    In 2006, the Committee received allegations concerning the 
inappropriate compounding of inhalation drugs. Specifically, 
the allegation was that some pharmacies, in particular mail-
order pharmacies and durable medical equipment (``DME'') 
suppliers may be producing and/or providing unsafe and/or 
ineffective or less effective nebulizer medications by 
inappropriately compounding prescription drugs. While 
recognizing the various legitimate needs for compounding 
medications, Senator Grassley remains concerned about the 
health and safety of the patients using these drugs as well as 
the financial impact that unsafe and/or ineffective compounded 
medications may have on the Medicare program in particular and 
the health care system generally. The Committee will continue 
its oversight of this matter into the 110th Congress.
Ketek
    In April 2006, Senator Grassley initiated an investigation 
into the FDA's approval and post-market surveillance of 
telithromycin (``Ketek''), an antibiotic approved by the FDA in 
April 2004.
    The Committee first became concerned when it discovered 
that the FDA approved the drug despite a fraudulent clinical 
study of the drug.
     Citing this concern, the Committee contacted both the FDA 
and HHS to request documents and access to FDA investigators 
conducting a criminal investigation. However, over the course 
of the investigation, it became apparent to the Chairman that 
both agencies were stonewalling the process. The agencies have 
selectively provided documents to the Committee while 
withholding certain pieces of information based on an 
interpretation of executive branch policies.
    Senator Grassley remained concerned about this lack of 
cooperation. He, and Ranking Member Baucus, issued two 
subpoenas to HHS and FDA to produce both documents and access 
to the Special Agent in charge of the criminal investigation. 
Senator Grassley also traveled to the HHS headquarters in 
Washington, DC to try to meet with the Special Agent. The 
agency, however, continues to restrict access to the Special 
Agent as well as certain documents.
    In December 2006, the Committee reported on a portion of 
its findings to the Commissioner of the FDA. This review is 
currently ongoing.
SFBC
    In November 2005, the Committee examined the practices of 
SFBC, the largest clinical research organization (``CRO'') in 
the country, following media reports that the CRO had failed to 
adequately safeguard test subjects involved in clinical trials. 
In particular, after a critical article was published about the 
company, reports began to emerge that three test subjects who 
provided information to the publication were threatened and 
intimidated by managers at SFBC for their cooperation.
     In addition to examining this CRO, the Committee also 
began looking at the entire CRO industry as well as FDA's 
oversight of the industry. The Committee concluded that serious 
deficiencies were present at SFBC and that the company and the 
FDA had not done all they could to protect test subjects at the 
center.
    SFBC has closed the testing center in question and has 
reorganized the company. While Senator Grassley's investigation 
into SFBC has concluded, he will continue to monitor the 
industry and work to ensure that the FDA is providing proper 
and effective oversight of human subject studies.

                Department of Health and Human Services

Transfer of Medicare Administrative Appeals
    Chairman Grassley and Ranking Member Baucus continued their 
oversight of the transfer of Medicare administrative appeals 
from the Social Security Administration (``SSA'') to HHS as 
mandated by section 931 of the Medicare Modernization Act 
(``MMA''). Chairman Grassley and Ranking Member Baucus wrote to 
Secretary Leavitt and Commissioner Barnhart regarding concerns 
leading up to the July 1, 2005 transfer and questioned whether 
the limited number of on-site facilities for in-person hearings 
was in line with the intent of the MMA. HHS responded that it 
believed a limited presence in the field--only four sites 
nationally--would be supplemented through the extensive use of 
video-teleconferencing. The Committee continues to monitor this 
matter.
Anthrax Vaccine Stockpile
    Chairman Grassley initiated an investigation into the 
Project BioShield contract between HHS and VaxGen to purchase 
75 million doses of VaxGen's new, experimental anthrax vaccine 
for the Strategic National Stockpile. Letters to the Secretary 
of HHS raised concerns about the decision to buy vaccine from a 
single manufacturer. Senator Grassley also questioned claims 
made by HHS in a press release that a stronger and more 
effective anthrax vaccine was available. The new anthrax 
vaccine, however, did not exist, and HHS immediately removed 
the press release from its website when Grassley brought this 
to the agency's attention.
     Senator Grassley also examined the adequacy of the 
nation's current stockpile of anthrax vaccine. HHS had not 
stockpiled a single dose of anthrax vaccine since the anthrax 
incidents of October 2001, and it took the agency close to two 
years to negotiate the purchase of an existing vaccine for the 
stockpile.
    Senator Grassley asked HHS what steps the agency was taking 
to ensure that the national stockpile has adequate supplies of 
vaccines in the event of an anthrax attack.
     HHS purchased 5 million doses of the licensed anthrax 
vaccine for the stockpile and anticipates purchasing more.
     The Committee will continue monitoring this matter.
Allegations of Employee Misconduct at the DAIDS
    Chairman Grassley and Ranking Member Baucus investigated 
allegations of scientific and employee misconduct, including 
allegations of sexual harassment, within the Division of AIDS 
(``DAIDS'') at the National Institutes of Health (``NIH''). 
These allegations were brought to their attention by Dr. 
Jonathan Fishbein, the former director of DAIDS's Office for 
Policy in Clinical Research Operations. Senator Grassley also 
asked the HHS-OIG to conduct a separate investigation.
     The HHS-OIG completed its investigation and issued a 
report of its findings to the Chairman and Ranking Member in 
early 2006. Dr. Fishbein asserted that he was told by NIH that 
his employment would be terminated because he had complained to 
his supervisor about the inappropriate and unprofessional 
conduct of another DAIDS employee and acted on his concerns 
regarding the conduct of DAIDS-sponsored clinical research. 
Senator Grassley was troubled that the individuals included in 
Dr. Fishbein's allegations were the same individuals 
responsible for preparing the justification for terminating his 
employment with the NIH.
    Dr. Fishbein was placed on administrative leave for almost 
a year before his employment was terminated on July 1, 2005.
     Senators Grassley and Baucus wrote to the NIH to voice 
concerns that the actions and events surrounding Fishbein's 
termination appeared to be retaliation against Dr. Fishbein. 
Those actions and events also suggested broader, more systemic 
problems related to the management and functioning of DAIDS, 
which NIH has acknowledged and informed the Chairman and 
Ranking Member that the agency is addressing those problems.
     Dr. Fishbein was ultimately reinstated to his position. 
The Committee continues to monitor NIH's progress in resolving 
problems in DAIDS.
Organ Transplant Centers
    The Committee initiated an investigation of Federal 
oversight of organ transplant centers. The Committee's 
involvement began in 2005 in response to investigative 
reporting conducted by the L.A. Times. The L.A. Times 
investigation initially found that a Saudi national allegedly 
paid to move to the top of the organ transplant waiting list at 
St. Vincent Medical Center in Los Angeles. The Committee began 
an inquiry of this incident. The L.A. Times subsequently 
identified a functionally inactive transplant center at the 
University of California Irvine (``UCI'') which the committee 
also inquired about. The Committee completed its inquiry of St. 
Vincent and UCI transplant centers, but continues to conduct a 
broader investigation of transplant system oversight.
     As part of this broader inquiry, the Committee asked the 
GAO to conduct a review of the effectiveness of transplant 
center oversight. The Committee has also requested information 
from the HRSA and CMS, the two Federal agencies responsible for 
oversight of the organ transplant system.
    The Committee is also engaging the United Network for Organ 
Sharing (``UNOS'') which is a private contractor that 
administers the organ procurement and transplantation network 
on behalf of HRSA to determine their role in oversight of the 
nation's transplant system. The investigation is currently 
ongoing.

                      Centers for Disease Control

    Senator Grassley wrote to Centers for Disease Control and 
Prevention (``CDC'') Director Julie Gerberding and to other CDC 
officials concerning reported deficiencies in the process by 
which CDC monitors and seeks to improve the abilities of state 
and local public health departments to respond to public health 
emergencies such as bioterrorism, pandemic influenza, and 
natural disasters. Improvements in emergency response 
preparedness are largely the result of billions of dollars in 
grants awarded to the states by the Federal Government through 
cooperative agreements between the states and the CDC. 
Officials at the CDC provided briefings in response to the 
inquiries. CDC officials acknowledged during those briefings 
that the CDC has not yet been able to develop a stable set of 
metrics that can be uniformly applied across the nation to 
measure the abilities of state health departments to quickly 
and effectively respond to public health emergencies. The CDC 
officials reported that the agency is constantly reviewing and 
developing the metrics and that the agency had recruited state 
and local health officials and subject matter experts to 
participate in the development of the metrics so that they 
provide valid measures of preparedness. Because of the 
importance of this issue to the safety of the American people, 
Senator Grassley became a co-requestor on a request for an 
evaluation by GAO of the process by which the CDC develops the 
metrics used by the CDC to evaluate the preparedness of state 
and local public health offices to respond to emergencies.
    Senator Grassley also wrote letters to Dr. Gerberding 
expressing concern over reports of serious employee morale 
problems at the CDC. The CDC denied the existence of any morale 
problems and asserted that if any such problems did exist, they 
were the result of stresses brought on by a large-scale 
reorganization of the agency. CDC officials claimed that these 
stresses would diminish with the passage of time and that 
employee morale should gradually improve. The CDC also provided 
the Committee with data indicating that the agency had not yet 
suffered losses of significant numbers of employees. The CDC 
asserted that this data contradicts the reported problems with 
employee morale.
     The Committee continues to monitor employee morale at CDC 
and seeks to ensure that CDC officials are aware that problems 
with employee morale will have a negative influence on the 
ability of the agency to respond to future public health 
emergencies.

                    Federal Bureau of Investigation

Sharing of Information by Law Enforcement Agencies
    Senator Grassley wrote to FBI Director Robert Mueller 
regarding reported problems with information sharing between 
Federal agencies in the aftermath of the tragic events of 
September 11, 2001. The letter to Director Mueller concerned 
representations made by the FBI to both Congress and the media 
that the development of the FBI's Investigative Data Warehouse 
(``IDW''), a computer database and networking system, provided 
counterterrorism investigators with ``one stop shopping'' for 
all information available from Federal law enforcement agencies 
on terrorism suspects. A cursory review by the Committee of a 
list of sources of the information accessible through IDW 
queries revealed that the list failed to include the 
information contained in computer databases controlled by other 
major Federal law enforcement agencies. The letter from Senator 
Grassley requested a complete listing of all sources of 
information accessible to a terrorism investigator conducting 
queries on suspects through IDW. Committee staff determined 
that the list of sources of information provided to the 
Committee by the FBI indeed failed to include the information 
contained in databases controlled by other major Federal law 
enforcement agencies who have publicly claimed to be actively 
involved in investigations of terrorist organizations. Senator 
Grassley will request explanations from both the FBI and the 
non-participating agencies for their failures to engage in the 
sharing of information on terrorism suspects. It is the 
position of Senator Grassley that this information developed by 
our nation's law enforcement agencies does not belong to the 
agencies themselves but that the information instead belongs to 
the American people, and is always to be used for our nation's 
protection. The Committee continues to monitor this situation.
Misconduct by Supervisory FBI Personnel
    Senator Grassley joined with Judiciary Committee Chairman 
Arlen Specter (R-PA) and Ranking Member Patrick Leahy (D-VT) in 
writing a letter to FBI Director Robert Mueller concerning 
reports of unethical conduct and possible criminal activities 
by FBI officials involved in supervising the FBI's 
investigation of the suspicious circumstances surrounding the 
death of Baltimore, Maryland, Assistant United States Attorney 
(``AUSA'') Jonathan Luna. The letter followed the release of a 
report by the Office of the Inspector General, U.S. Department 
of Justice (``DOJ-OIG''). The report criticized the FBI's 
Inspection Division for failing to refer certain allegations to 
the FBI's Office of Professional Responsibility (``OPR'') 
allegations that FBI supervisors had engaged in acts of serious 
misconduct and possible criminal offenses. Further, it was 
reported that FBI supervisors were suspected of having had an 
improper personal relationship with AUSA Luna. This field agent 
was thereafter subjected to abusive and potentially criminal 
mistreatment by her supervisors. The letter also expressed 
concern that the DOJ-OIG report indicated that during a series 
of interviews with agents of the FBI's Inspection Division, the 
subject FBI supervisors had given sharply conflicting 
statements concerning their treatment of the victim field 
agent. These conflicting statements indicated a lack of candor 
among the supervisors and possible violations by those 
supervisors of Federal criminal statutes that prohibit the 
making of false statements to law enforcement officials. During 
a briefing, the Director of the FBI's Office of Professional 
Responsibility reported that no disciplinary action(s) would be 
taken by the FBI against the supervisors. This incident appears 
to be one of many in which the FBI has wrongfully given 
preferential treatment to FBI supervisory personnel involved in 
acts of misconduct or criminal activities. Senator Grassley 
continues to monitor this situation.
FBI Mishandling of Terrorism Investigation
    Senator Grassley wrote a letter to FBI Director Robert 
Mueller regarding the reported negligent failure of the FBI to 
seek a court order authorizing the non-consensual monitoring of 
telephone conversations in an investigation of persons believed 
to be involved in raising funds to support terrorist 
activities. The letter of inquiry resulted from reports made by 
a former Special Agent in Charge for the Houston, Texas, office 
of U.S. Immigration and Customs Enforcement (``ICE''). It was 
reported that the FBI office in Houston failed to seek a court 
order authorizing wiretaps in a case developed by ICE agents 
but reported to the FBI in accordance with the terms of a 
Memorandum of Understanding (``MOU'') between the two agencies. 
This MOU provided that the FBI would have primary investigative 
jurisdiction in cases involving funds to support terrorism. 
Houston ICE agents also reported that toll records for the 
targeted telephones indicated that in negligently failing to 
seek the order, FBI agents had missed valuable opportunities to 
intercept numerous calls that were placed to a telephone 
associated with a known terrorist suspect. The FBI provided the 
Committee with briefings and reports on this issue and it 
became apparent to the Committee from these briefings and 
reports that FBI officials were making multiple conflicting 
statements and providing widely-varying accounts on the 
circumstances surrounding the FBI's failure to seek the wiretap 
authorization. These conflicting statements from FBI personnel 
have thwarted efforts by the Committee to properly identify the 
specific FBI officials responsible for the FBI's failure to 
conduct an investigation that had national security importance. 
The conflicts in statements are also disturbingly indicative of 
a lack of candor and integrity on the parts of FBI personnel. 
FBI Director Mueller concurred with the position of the 
Committee that the FBI should have addressed this investigation 
more quickly. He also reported to the Committee that steps were 
being taken to educate FBI field offices on their 
responsibilities under the Memorandum of Understanding between 
the FBI and ICE. The Committee has closed this investigation.
Mishandling by FBI of Terrorism Financing Investigation and Retaliation 
        by the FBI Against FBI Agent Who Reported Mishandling of 
        Investigation
    Senator Grassley, Senate Judiciary Chairman Specter, and 
Ranking Senate Judiciary Committee Member Leahy wrote joint 
letters to both U.S. Department of Justice Inspector General 
Glenn A. Fine and FBI Director Robert Mueller regarding 
information received from former FBI Special Agent Michael 
German concerning the FBI's handling of an investigation of 
persons believed to be supporting terrorism. The reported 
mismanagement of the investigation by the FBI was deemed to be 
particularly disturbing. Specifically, Agent German reported to 
the Committee that the subjects of the investigation had ties 
to both foreign terrorist organizations and domestic terrorist 
organizations and that the investigation indicated that steps 
were being taken by members of those terrorist organizations to 
become allies in their efforts to commit terrorist activities 
against the United States. In response to requests from the 
Committee, the FBI and the Inspector General provided 
information on the terrorism financing investigation. Senators 
Grassley, Specter and Leahy also expressed concerns to the FBI 
and the Inspector General that Agent German appears to have 
suffered retaliation from the FBI as a result of his reporting 
the mishandling of this investigation to his FBI superiors and 
to Congress. A report prepared by the Inspector General 
concluded that an investigation of the FBI's handling of Agent 
German's information indicated that he had, in fact, suffered 
acts of retaliation from high-ranking officials of the FBI. The 
Committee continues to examine this matter.
Mismanagement of Resources Available for Counterterrorism 
        Investigations and Retaliation Against FBI Whistleblower
    Senator Grassley wrote a joint letter with Senate Judiciary 
Committee Chairman Specter and Ranking Member Leahy to FBI 
Director Robert Mueller regarding the FBI failure to utilize 
the experience and expertise of Bassem Youssef, an Arab-
American Special Agent of the FBI. After meeting with his 
superiors, Agent Youssef suffered acts of retaliation by the 
FBI, including the refusal to transfer Youssef to the agency's 
International Terrorism Operations Section (``ITOS''). After 
the FBI received the letter of complaint from Senators 
Grassley, Specter and Leahy, the agency relented and 
transferred Agent Youssef to ITOS, where he now serves as a 
supervisory agent. Senator Grassley will continue to monitor 
this situation.
FBI Mishandling of Information Relating to Terrorist Activities
    Senator Grassley wrote letters to FBI Director Robert 
Mueller regarding the mishandling of critical information 
available to the FBI in the months leading up to the September 
11, 2001, terrorist attack on the United States. One of the 
letters made reference to testimony given by Minneapolis, 
Minnesota, FBI Agent Harry Samit during the sentencing hearing 
for convicted terrorist Zacarias Moussaoui. Agent Samit 
testified during that hearing that attempts by the Minneapolis 
office of the FBI to investigate Moussaoui were thwarted at the 
agency's headquarters level by FBI supervisors who refused to 
support the investigation. Agent Samit even described the 
refusal of those supervisors to support the Moussaoui 
investigation as being ``criminally negligent.'' Inquiries by 
Congress revealed that these supervisors, rather than being 
disciplined or dismissed from service, had actually been 
promoted and that one of them had even been promoted to a 
position in which he supervised all of the terrorism 
investigations being conducted by the FBI in one of America's 
largest cities. Senator Grassley's letter requested information 
on how and why the FBI reached the decision to promote this 
supervisor. The FBI responded to Senator Grassley's inquiries 
with a letter advising him that the FBI had referred 
allegations concerning the handling of the Moussaoui 
investigation to the DOJ-OIG, for investigation. The letter 
from the FBI further reported that the DOJ-OIG had completed 
their investigation and that the DOJ-OIG was seeking permission 
of the Court to release to the public that portion of the 
report that related to the FBI's investigation of Moussaoui. 
Senator Grassley will continue to monitor this situation as is 
warranted.
Misconduct by FBI Officials in Saudi Arabian FBI Office
    Senator Grassley joined with Senate Judiciary Committee 
Chairman Specter and Ranking Member Leahy in writing letters to 
FBI Director Robert Mueller regarding allegations of misconduct 
and mismanagement in the Riyadh, Saudi Arabia FBI Legat Office. 
The allegations included failures by the FBI Legat in Saudi 
Arabia to pursue thousands of investigative leads, 
inappropriate behavior by senior FBI officials assigned to the 
Legat Office, providing prostitutes to FBI agents on temporary 
duty assignments to the Legat Office, and the destruction by 
FBI officials of documents that related to the investigation of 
the September 11, 2001, terrorist attacks on the United States. 
The letter requested that the FBI provide the Committee with 
inspection reports for the Riyadh office and a briefing from 
FBI officials on steps being taken by the FBI to correct the 
problems in that office. The FBI provided Congress with a 
briefing on steps taken by the FBI to correct the reported 
problems in the Riyadh office and provided copies of the 
office's inspection reports. This matter is now closed.
Preferential Treatment Wrongfully Being Afforded to Supervisory FBI 
        Personnel in Disciplinary Matters
    Senator Grassley wrote letters to FBI Director Robert 
Mueller concerning the decision reached by FBI officials who 
allegedly retaliate against Special Agent Cecilia Woods for 
reporting to FBI officials that her former supervisor Gil 
Torrez had engaged in an inappropriate sexual relationship with 
a paid FBI informant. Torrez was then the FBI's Legal Attache 
for Panama. After reporting the misconduct by Torrez, Agent 
Woods alleged that she was targeted by the FBI for reporting 
the misconduct and was subjected by the FBI to a series of 
disciplinary actions that ultimately resulted in her early 
retirement from the agency. Circumstances support that these 
actions against Woods were taken for the purpose of retaliating 
against her for reporting that supervisor, Torrez, eventually 
admitted to engaging in an illicit sexual relationship with a 
paid FBI informant and was also investigated and disciplined. 
After discovering that Torrez's employment had not been 
terminated by the FBI, despite Torrez having engaged in a 
sexual relationship with a paid informant, the Committee 
requested a copy of the FBI's written standards for discipline 
of agents involved in various acts of misconduct. Senator 
Grassley found it disturbing that the FBI's written standards 
of conduct do not mandate immediate dismissal from the FBI of 
all agents who engage in sexual misconduct with paid 
informants. Senator Grassley will continue to follow-up on this 
matter.
Retaliation by FBI Against Agent Who Reported Deficiencies in FBI 
        Counterterrorism Efforts
    Senator Grassley and Senator Leahy wrote letters to U.S. 
Attorney General Alberto Gonzales and FBI Director Robert 
Mueller concerning acts of retaliation taken by the FBI against 
Special Agent Robert G. Wright. It was alleged that once Agent 
Wright made public statements criticizing the commitment and 
ability of many FBI supervisors to conduct international 
terrorism investigations, he was subjected to multiple 
disciplinary investigations. Agent Wright continues to be 
employed by the FBI. This matter is now closed.
Information Sharing by Counterterrorism Agencies and Compatibility of 
        Their Computer Systems
    Senator Grassley wrote a letter to National Intelligence 
Director John Negroponte concerning persistent failures by the 
FBI and DHS to develop computer information systems that are 
compatible with one another. This system incompatibility 
prevents the agencies from effectively sharing information with 
one another and additionally diminishes the ability of the 
intelligence community to gather and analyze intelligence from 
the two systems. Director Negroponte was asked in the letter to 
describe any efforts being made by his office to pursue better 
coordination and standardization of computer databases and to 
thereby ensure seamless sharing of information among Federal 
agencies that are a part of the intelligence community. In a 
reply letter, the Office of the Director of National 
Intelligence (``DNI'') reported that in response to 
Presidential directives mandating the use of common information 
sharing standards across the Federal Government, the Office of 
the Program Manager, Information Sharing Environment (``ISE'') 
had been created to ensure that all Federal systems that 
contain terrorism information are compatible. The DNI further 
reported that the ISE was working to resolve all issues 
relating to the compatibility of the Federal systems, to 
specifically include those used by DOJ and DHS. Senator 
Grassley will continue to monitor this situation.
Mishandling of Anthrax Investigation
    Senator Grassley wrote a letter to Attorney General Alberto 
Gonzales regarding apparent mishandling by the FBI of the 
agency's investigation of the October, 2001, mailings of 
letters laced with anthrax to several targets in the United 
States, including members of Congress and the national media. 
The investigation has not resulted in any persons being charged 
with this crime. The letter expressed concern that the 
investigation appears to have been hindered by the FBI's 
institutional resistance to criticism and dissent and by the 
misallocation of resources toward protecting the FBI's image 
rather than protecting the United States. Senator Grassley also 
expressed dissatisfaction with the FBI's refusal to provide 
Congress with periodic briefings on the status of the 
investigation. He requested both a briefing on the status of 
the investigation and a number of documents and records 
relating to the case. The Attorney General responded with a 
refusal to provide either the requested documents or a briefing 
on the status of the investigation, citing DOJ's policy against 
disclosing non-public information concerning pending law 
enforcement and litigation issues. Senator Grassley along with 
34 other Members of Congress requested a briefing from the FBI. 
The Committee is currently awaiting a response.
Intervention on Behalf of FBI Special Agent
    Senator Grassley wrote a letter to FBI Director Robert 
Mueller on behalf of an Iowa constituent who had been selected 
for employment by the FBI as a Special Agent. After being 
offered employment and in reliance upon the FBI's job offer, 
the selectee had sold his business and entered into a non-
competitive agreement. Only a few days before he was scheduled 
to begin training at the FBI Academy, the agency withdrew its 
offer of employment. Senator Grassley requested an explanation 
for the FBI's decision to withdraw the offer of employment. The 
FBI reviewed the decision to withdraw the employment offer and 
decided to re-extend the offer to the applicant. He is now 
serving as a Special Agent of the FBI. This matter is now 
closed.
Weaknesses in FBI Linguistic Capabilities
    Senator Grassley and Senator Leahy continued to receive 
periodic information from the FBI concerning efforts to improve 
the agency's linguistic translations capabilities and security. 
Senator Grassley and Senator Leahy first contacted the FBI in 
2002 to express their concerns over reports that the FBI was 
unable to quickly and accurately translate recorded 
conversations and documents in languages most commonly used by 
terrorists. Since 2002, the FBI has invested considerable 
effort and resources toward improving the agency's language 
capabilities. Senator Grassley will continue to monitor the 
agency's language translation program to ensure that the agency 
will be prepared to protect the United States from future 
terrorist attacks.

                    Department of Homeland Security

Fraud, Abuse and Mismanagement at CIS
    Senator Grassley wrote a letter to U.S. Citizenship and 
Immigration Service (``CIS'') Director Emilio Gonzalez 
regarding reports of fraud, abuse and mismanagement at CIS. The 
letter from Senator Grassley was prompted by reports of delayed 
and incomplete evaluations by CIS of many applications for 
immigration benefits. The letter also requested information on 
allegations that some 2,500 alien files that contained 
derogatory information had not been turned over to ICE agents 
for criminal investigation. Perhaps most significant were 
reports that CIS failed to conduct timely internal 
investigations of more than 2,000 complaints of misconduct by 
CIS employees. At the time of the letter, CIS reportedly 
assigned only five field investigators to the unit responsible 
for conducting internal investigations of employee misconduct.
     Senator Grassley requested access to the written 
complaints received or developed by CIS so that they could be 
reviewed by the Committee in an effort to determine the 
severity of the employee misconduct alleged in them. Committee 
staff reviewed more than 1,500 written complaints, identified 
the complaints that appeared to require additional scrutiny, 
and requested additional information on the matters alleged in 
those complaints. Director Gonzalez subsequently met with 
Senator Grassley and Committee staff and pledged that in the 
future, his office will be committed to making national 
security and fraud prevention the number one priority at CIS.
    Senator Grassley plans to follow-up on this matter.
Lack of Cooperation Between DHS Agencies
    Senator Grassley wrote a letter to U.S. Customs and Border 
Protection (``CBP'') Commissioner Robert Bonner concerning 
reports that thousands of immigration benefits adjudicators for 
CIS had been denied access to information contained in CBP's 
computer databases. Much of the information contained in those 
CBP databases is needed by the CIS immigration benefits 
adjudicators to determine whether applications for immigrations 
benefits should be approved. The reason the CIS adjudicators 
were denied access was the expiration of their security 
clearances, which are required by CBP for all persons seeking 
access to the CBP computer databases. In the letter, Senator 
Grassley expressed his concern that CIS immigration benefits 
adjudicators were being denied the tools necessary to do their 
jobs and that this situation posed a national security risk. He 
also requested information on the reasons for the delays in 
granting security clearances to CIS immigration benefits 
adjudicators and asked for information on steps being taken by 
CBP to increase inter-agency cooperation with CIS. Senator 
Grassley plans to follow-up on this matter.
Criminal Sexual Misconduct by Senior DHS Official
    Senator Grassley wrote letters to Secretary of Homeland 
Security Michael Chertoff regarding the department's response 
to the involvement of ICE senior executive Frank Figueroa in 
criminal misconduct involving a minor female. Figueroa, who was 
then the Special Agent in Charge of the ICE office in Tampa, 
Florida, was convicted on Florida state criminal charges 
related to an incident in which he exposed himself to a minor 
female seated in the food court of a Florida shopping mall. 
After his arrest by local law enforcement officers, Figueroa 
was allowed by ICE to use his accrued sick and annual leave to 
reach his retirement eligibility date and to then retire from 
ICE with a full lifetime pension. Senator Grassley objected to 
the decision reached by ICE officials to allow Figueroa to 
retire with a full pension after being found guilty of having 
committed sex offenses against a minor. Senator Grassley 
requested a briefing from ICE officials on the matter. During 
the briefing, ICE officials reported to Committee staffers that 
Merit Service Protection Board (``MSPB'') guidelines and the 
timeframes required for prosecution of criminal cases in the 
state of Florida combined to make it impossible for ICE to be 
successful in any efforts to terminate Figueroa's employment 
prior to his retirement eligibility date. This matter is now 
closed.
Potentially Dangerous Errors in Processing Applications for Immigration 
        Benefits
    Senator Grassley wrote a letter to CIS Director Emilio 
Gonzalez regarding information received by the Committee from 
an employee of CIS indicating that CIS adjudication officers 
had not been properly trained in conducting queries of law 
enforcement databases. The whistleblower reported that as a 
result of this lack of training, CIS adjudication officers were 
not conducting all of the database queries necessary to 
determine whether or not applicants for immigration benefits 
had been identified by law enforcement agencies as suspected 
terrorists, sex offenders, or other criminal suspects. As a 
result, it is possible that immigration benefits were granted 
by CIS to persons whose presence in this nation poses a danger 
to national security and public safety. Senator Grassley has 
requested a review of all immigration benefits granted by CIS 
and a briefing on steps taken by CIS to correct this problem 
with the agency's operations.
Appointment of Unqualified Persons to Key Counterterrorism Positions
    Senator Grassley wrote a letter to DNI John Negroponte 
expressing his concerns over the appointment of Gary Bald as 
head of the National Security Service. The concerns relate to 
the testimony given by Bald in response to questions that he 
answered during the taking of a sworn deposition. The questions 
related to Bald's position on the importance of nominees to key 
counterterrorism investigative positions having subject matter 
expertise on topics that are related to counterterrorism. 
Bald's answers indicated that he did not believe that subject 
matter expertise on topics related to counterterrorism was 
necessary for candidates to be considered for appointment to 
key counterterrorism investigative positions. In the letter, 
Senator Grassley expressed his belief to Director Negroponte 
that senior managers in the nation's war on terrorism need to 
have unquestionable credentials, substantial counterterrorism 
experience, and subject matter expertise. Senator Grassley will 
continue to monitor counterterrorism positions in the United 
States government must not be positions for on-the-job 
training.
Admission of Taliban Spokesman into United States on Student Visa
    Senator Grassley wrote a letter to Secretary of State 
Condoleezza Rice and Secretary of Homeland Security Michael 
Chertoff regarding the admission of former Taliban spokesman 
Sayed Rahmatullah Hashemi into the United States on a student 
visa. Media reports indicate that Hashemi, while serving as a 
leader of the Taliban, made public statements defending both 
the terrorist activities of Osama bin Laden and the 2001 
destruction by the Taliban of two ancient towering statues of 
Buddha that had been carved into some cliffs in Afghanistan. 
Senator Grassley requested copies of Hashemi's application for 
a student visa and all other documents that were used by the 
U.S. State Department in reaching the decision to grant 
Hashemi's application to enter the United States on a student 
visa. Those documents were provided to the Committee by the 
U.S. State Department and the documents are being analyzed by 
Committee staff to identify those flaws and/or deficiencies in 
the visa application and/or the application review process that 
resulted in the admission of Hashemi into the United States.

                             Miscellaneous

Waste, Fraud, Conflict of Interest, and Inappropriate Political 
        Influence Related to FAA Contractor
    Senator Grassley wrote to U.S. Department of Transportation 
(``DOT'') Inspector General Kenneth Mead regarding reported 
allegations of waste, fraud, conflict of interest, and 
inappropriate political influence related to a contract between 
the Federal Aviation Administration (``FAA'') and Crown 
Consulting, Inc., for the development of computer software for 
the FAA's military operations division. Information received by 
the Committee indicated that Crown Consulting, Inc., failed to 
fulfill the requirements of the contract and had engaged in 
suspicious activities such as billing for some $30,000 in 
office furniture that was unaccounted for, as well as billing 
for leased properties in Australia, a $3,500 per month auto 
lease, and unauthorized and unexplained trips to Las Vegas, 
Nevada,. The FAA terminated the contract for convenience rather 
than for negligence on behalf of the contractor. The Committee 
intends to follow-up on this matter.
Costs of Relocating Government Employees
    Chairman Grassley continued action on his earlier 
investigation into relocation expenses for Federal employees. 
Accordingly, he sent letters to Joshua Bolton, Director of the 
Office of Management and Budget, and Stephen A. Perry, 
Administrator of the General Services Administration (``GSA'') 
to inquire about delays in responding to past questions about 
GSA's efforts to ensure that it received complete, accurate 
data about employee moves. Further, Senator Grassley inquired 
about measures GSA had taken to revise faulty Relocation Income 
Tax Allowance provisions. GSA provided the requested 
information and worked with the Government-wide Relocation 
Advisory Board (``GRAB'') to address the Chairman's concerns. 
The advisory board ultimately developed a report with multiple 
recommendations for improving government relocation practices 
in the areas of administration and management, budget tracking 
and data collection, relocation reimbursement, residence 
transactions, and transportation and storage. The Committee 
will continue to monitor GSA's efforts to implement the GRAB 
recommendations.
    Chairman Grassley also sent a separate series of letters to 
the Postmaster General inquiring about miscellaneous relocation 
expense allowance payments of $10,000, $25,000, and in one case 
$50,000 to United States Postal Service (``USPS'') executives. 
These allowances were paid in addition to other relocation 
related costs and were not required to be supported by 
receipts, allowing employees to pocket any money not used for 
relocation related expenses. After a review of its benefit 
policies, the USPS limited the miscellaneous relocation expense 
to the equivalent of two weeks' base pay.
Backlogged Whistleblower Complaints and Disclosure Cases
     Chairman Grassley wrote a letter to the Office of Special 
Counsel (``OSC'') with respect to wide-spread reports of 
backlogged whistleblower cases at the office. The OSC's primary 
mission is to safeguard the merit system by protecting Federal 
employees and applicants from prohibited personnel practices, 
especially reprisal for whistleblowing. In conjunction with 
staff of the U.S. House of Representatives, Committee on 
Government Reform, an internal review was conducted of OSC's 
handling and disposition of backlogged whistleblower complaints 
and disclosures cases. This bi-partisan review examined closed 
cases that were handled by OSC's Complaints Examining Unit 
(``CEU'') and Disclosure Unit (``DU''). In particular, the 
review team focused on the disposition and resolution of 
hundreds of backlogged cases in the CEU and DU. In conducting 
this review, the team acknowledged that there were historical 
problems in the OSC that gave rise to the backlog of cases. The 
OSC initiated and organized a Special Projects Unit (``SPU'') 
that ultimately resolved the issue of backlogged whistleblower 
disclosure and Prohibited Personnel Practice (``PPP'') cases. 
The key factors in the resolution of the backlog by the SPU 
included the recruitment of subject matter experts to handle 
and evaluate cases and policy and procedural changes to prevent 
the backlog from reoccurring.
    Committee staff also examined the number of cases in the 
Investigations and Prosecution Division (``IPD'') including the 
number of cases pending over and above the statutory 240-day 
determination period. This statutory time-frame determination 
period mandated by law that no later than 240-days after the 
date of receipt of an allegation of a PPP, the OSC is to make a 
determination whether there are reasonable grounds to believe a 
PPP has occurred, exists, or is to be taken. If the OSC is 
unable to make the required determination within the statutory 
240-day time period, an additional period of time for 
determination shall be granted; if agreed upon by OSC and the 
person submitting the allegation. The initial concern was that 
in reducing the backlog of cases in the CEU and increasing the 
rate of referrals, OSC may have increased the backlog of cases 
in the IPD. The review discerned that this did not occur and 
the number of cases in the IPD did not disproportionably 
increase in relation to the decrease of cases in the CEU. The 
matter is currently closed.
Use of Offshore Vehicles and Transactions to Evade Taxes
     Chairman Grassley and Ranking Member Baucus initiated an 
investigation into the use of offshore vehicles and 
transactions to evade U.S. taxes. The Committee suspects that 
offshore hedge funds may provide a vehicle for domestic 
investors to evade U.S. tax by masquerading as foreign 
investors through the use of offshore corporations and trusts, 
especially in tax haven countries. The Chairman and Ranking 
Member requested the assistance of the GAO, Forensic Audit and 
Special Investigations unit to conduct and develop this 
investigation. The Committee was interested in having GAO 
investigators attempt to identify specific offshore vehicles or 
abusive schemes used to evade U.S. taxes, particularly any 
involving hedge funds. In addition, the Committee also 
requested that GAO investigators test due diligence of 
financial institutions involved in any transactions conducted 
offshore, particularly with regard to establishing accounts and 
beneficial ownership. The Committee requested that GAO develop 
a plan to perform undercover operations and to use innovative 
techniques necessary to show how financial institutions and 
other entities assist U.S. taxpayers in these abusive schemes. 
The Chairman authorized the GAO, pursuant to section 6103(f) 
(4) of the Internal Revenue Code, to have access to the 
necessary protected tax information to complete this requested 
work. GAO's work is ongoing and the Committee is awaiting 
completion of the investigation and subsequent report.
USDA/APHIS, VS, NVSL and CVB
    Senator Grassley wrote to the Secretary of the USDA to 
request a briefing on the various problems and issues arising 
at the Animal Plant Health Inspection Service, Veterinary 
Services, National Veterinary Services Laboratory (``NVSL'') 
and Center for Veterinary Biologics (``CVB''), referred to 
collectively as the Labs, in Ames, Iowa. Senator Grassley was 
inquiring into allegations that the Labs have been grossly 
mismanaged. Both current and former employees of the Labs 
contacted his office about systemic and long-standing problems 
that were not being addressed by USDA management. Interviews 
conducted with both current and past employees of the Labs 
detailed how they are mismanaged and the employees were working 
in a climate of fear and intimidation. The interviewees claimed 
that this mismanagement resulted in the retirement of competent 
employees, overall poor morale, a loss of creativity and a fear 
of reporting wrongdoing and mistakes. These allegations were 
coupled with yet additional allegations of discrimination, 
cronyism and favoritism where the best qualified candidates 
were neither being hired nor promoted to key positions. 
According to those interviewed and the documents reviewed, it 
appeared that the USDA was advised and had been aware of these 
concerns for years.
    The requested briefing was provided to Committee staff by 
the USDA (acting) Under Secretary for Marketing and Regulatory 
Programs. The Under Secretary outlined the USDA's efforts to 
address the allegations of mismanagement and employee problems 
reported at the Labs. It was reported that the USDA had 
initiated steps to begin addressing these longstanding 
complaints and allegations including conducting an off-site 
forum with employees of the Labs and members of the USDA 
Coalition of Minority Employees, replacing the existing NVSL 
Director and appointing an (interim) Director, with significant 
human resources, planning, evaluation, and management 
experience. Committee staff was further advised that the 
(interim) Director would conduct a complete analysis of the 
workforce and develop a plan to correct any problems that may 
exist. These changes were a step in the right direction; 
however, problems still linger at the CVB. The Chairman will 
continue to monitor USDA and its efforts to address and 
alleviate these problems.
Legal Services Corporation
     Senator Grassley, along with Congressman Christopher 
Cannon (R-UT) and Senate Health, Education, Labor and Pensions 
Chairman Michael Enzi (R-WY) began an investigation into 
inappropriate expenditures by the Legal Services Corporation 
(``LSC''). The primary mission of the LSC is to provide legal 
counsel to underprivileged members of our society. The Members 
became concerned after learning that many of the expenditures 
at LSC seemed excessive and not necessarily indicative of the 
mission of the group. The investigation uncovered widespread 
mismanagement of funds and lavish expenditures by members of 
the LSC board. A few examples of mismanagement include using a 
limousine service for meetings in-town, having the board's 
annual meeting at a luxury hotel while adequate space was 
available at LSC headquarters, and even excessive purchases 
such as $14 for a cookie at an annual meeting. After a series 
of inquiries and meetings with the respective congressional 
staffs, LSC has now made proactive changes in order to prevent 
the aforementioned problems. Specifically, LSC is taking the 
following steps: following General Services Administration 
(``GSA'') policy on first class travel and meal purchases; the 
LSC president is doing a cost comparison in order to minimize 
LSC reimbursements for her travel; eliminating a 200 percent 
per diem for board members; holding its annual meeting at LSC 
headquarters; minimizing other meeting related expenses such as 
cookies and other unnecessary items; minimizing excessive meal 
costs; following GSA standards for lodging; developing a policy 
regarding chauffeured car services; revising its policy 
regarding business entertainment; revising its personnel 
manual; and establishing direct access between the LSC 
treasurer and the Committee on Finance. Congress also requested 
that the GAO conduct two reviews of LSC and will continue to 
monitor LSC's progress in improving its operations.
Abramoff Investigation
    Investigations into the activities of Jack Abramoff began 
after a Washington Post story by Susan Schmidt in February, 
2004 entitled ``A Jackpot From Indian Gaming Tribes; PR Firms 
Paid $45 million Over 3 Years.''
    Department of Justice investigations culminated in a guilty 
plea by Jack Abramoff to charges of conspiracy, mail and wire 
fraud, bribery, and evasion of Federal income tax in January of 
2006.
    The Senate Finance Committee staff investigation examined 
the use and potential abuse by Mr. Abramoff of tax-exempt 
organizations. This investigation continued a long-term effort 
by the Finance Committee to oversee the activities of 
nonprofits and to seek reforms in the tax law affecting these 
organizations.
    Subpoenas were issued to the Preston Gates and Greenberg 
Traurig law firms in the fall of 2005. After reviewing 
materials obtained through those subpoenas, mostly e-mail 
correspondence, the Democratic staff identified potentially 
troubling transactions with five nonprofits.
    A report issued in October, 2006 entitled ``Investigation 
of Jack Abramoff's Use of Tax-Exempt Organizations'' outlined 
these transactions and the issues arising from the use of 
nonprofits by Mr. Abramoff for lobbying and public relations 
for his clients. Sufficiently serious issues were identified to 
justify referring this report and the materials gathered by the 
Committee staff to the Department of Justice, the Department of 
Treasury, and the Internal Revenue Service.
    The Democratic staff also identified a number of reforms 
that could be considered by the Finance Committee in the 
nonprofit sector.
                              NOMINATIONS

Jeffrey Robert Brown, of Illinois, to be a Member of the Social 
        Security Advisory Board for a term expiring Sept. 30, 
        2008, vice Bradley D. Belt, resigned, to which position 
        he was appointed during the last recess of the Senate.
  Dec. 5, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 6, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Social Security Administration)

Andrew G. Biggs, of New York, to be Deputy Commissioner of 
        Social Security for a term expiring Jan. 19, 2013. 
        (Reappointment)
  Nov. 13, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Social Security Administration)

Andrew G. Biggs, of New York, to be Deputy Commissioner of 
        Social Security for the remainder of the term expiring 
        Jan. 19, 2007, vice James B. Lockhart III.
  Nov. 13, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Social Security Administration)

Anthony W. Ryan, of Massachusetts, to be an Assistant Secretary 
        of the Treasury, vice Timothy S. Bitsberger.
  Nov. 13, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 5, 2006--Committee on Finance. Hearings held.
  Dec. 6, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 6, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1022. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Robert F. Hoyt, of Maryland, to be General Counsel for the 
        Department of the Treasury, vice Arnold I. Havens, 
        resigned.
  Sept. 29, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Nov. 14, 2006--Committee on Finance. Hearings held.
  Dec. 6, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 6, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1023. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Michele A. Davis, of Virginia, to be an Assistant Secretary of 
        the Treasury, vice Antonio Fratto.
  Sept. 28, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Nov. 14, 2006--Committee on Finance. Hearings held.
  Dec. 6, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 6, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1021. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Phillip L. Swagel, of Maryland, to be an Assistant Secretary of 
        the Treasury, vice Mark J. Warshawsky, resigned.
  Sept. 26, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 5, 2006--Committee on Finance. Hearings held.
  Dec. 6, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 6, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1020. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Dana K. Bilyeu, of Nevada, to be a Member of the Social 
        Security Advisory Board for a term expiring Sept. 30, 
        2010, vice Gerald M. Shea, term expired.
  Sept. 20, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 6, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 6, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1019. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Social Security Administration)

Mark J. Warshawsky, of Maryland, to be a Member of the Social 
        Security Advisory Board for a term expiring Sept. 30, 
        2012, vice Harold Daub, term expired.
  Sept. 20, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 6, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 6, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1018. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Social Security Administration)

Michael J. Astrue, of Massachusetts, to be Commissioner of 
        Social Security for a term expiring Jan. 19, 2013, vice 
        Jo Anne Barnhart.
  Sept. 15, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Social Security Administration)

Daniel Meron, of Maryland, to be General Counsel of the 
        Department of Health and Human Services, vice Alex 
        Azar, II, to which position he was appointed during the 
        last recess of the Senate.
  Sept. 7, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Department of Health and Human Services)

Irving A. Williamson, of New York, to be a Member of the United 
        States International Trade Commission for the term 
        expiring June 16, 2014, vice Stephen Koplan, term 
        expired.
  Sept. 7, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 5, 2006--Committee on Finance. Hearings held.
  Dec. 6, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1016. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 6, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1016. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: United States International Trade Commission)

Dean A. Pinkert, of Virginia, to be a Member of the United 
        States International Trade Commission for the term 
        expiring Dec. 16, 2015, vice Jennifer Anne Hillman, 
        term expiring.
  Sept. 7, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 5, 2006--Committee on Finance. Hearings held.
  Dec. 6, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1015. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 6, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1015. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: United States International Trade Commission)

Robert K. Steel, of Connecticut, to be an Under Secretary of 
        the Department of the Treasury, vice Randal Quarles.
  Sept. 6, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Sept. 21, 2006--Committee on Finance. Hearings held.
  Sept. 27, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Sept. 27, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Sept. 27, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 935. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Sept. 29, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Peter E. Cianchette, of Maine, to be a Member of the Internal 
        Revenue Service Oversight Board for a term expiring 
        Sept. 14, 2010, vice Nancy Killefer, term expired.
  Sept. 5, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Department of the Treasury)

John K. Veroneau, of Virginia, to be a Deputy United States 
        Trade Representative, with the Rank of Ambassador, vice 
        Susan C. Schwab, resigned.
  Aug. 3, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Sept. 21, 2006--Committee on Finance. Hearings held.
  Sept. 27, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Sept. 27, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Sept. 27, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 934. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Sept. 29, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Executive Office of the President)

Henry M. Paulson, Jr., of New York, to be Secretary of the 
        Treasury, vice John W. Snow, resigned.
  June 19, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  June 27, 2006--Committee on Finance. Hearings held.
  June 28, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  June 28, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  June 28, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 745. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  June 28, 2006--By unanimous consent agreement, debate set for 
        June 28, 2006.
  June 28, 2006--Considered by Senate pursuant to previous 
        order.
  June 28, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Eric Solomon, of New Jersey, to be an Assistant Secretary of 
        the Treasury, vice Pamela F. Olson, resigned.
  May 9, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  July 13, 2006--Committee on Finance. Hearings held.
  Dec. 7, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 7, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 7, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1024. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Susan C. Schwab, of Maryland, to be United States Trade 
        Representative, with the rank of Ambassador 
        Extraordinary and Plenipotentiary, vice Robert J. 
        Portman.
  May 3, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  May 16, 2006--Committee on Finance. Hearings held.
  May 22, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  May 22, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  May 22, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 663. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  June 7, 2006--By unanimous consent agreement, debate and vote 
        set for June 8, 2006.
  June 8, 2006--Considered by Senate pursuant to order of June 
        7, 2006.
  June 8, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Executive Office of the President)

Deborah L. Wince-Smith, of Virginia, to be a Member of the 
        Internal Revenue Service Oversight Board for a term 
        expiring Sept. 14, 2010, vice Larry L. Levitan, term 
        expired.
  May 1, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Nov. 14, 2006--Committee on Finance. Hearings held.
  Dec. 6, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 6, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1014. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Catherine G. West, of the District of Columbia, to be a Member 
        of the Internal Revenue Service Oversight Board for a 
        term expiring Sept. 14, 2008, vice Karen Hastie 
        Williams, term expired.
  May 1, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Department of the Treasury)

Donald V. Hammond, of Virginia, to be a Member of the Internal 
        Revenue Service Oversight Board for a term expiring 
        Sept. 21, 2010, vice Robert M. Tobias, term expired.
  May 1, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Sept. 29, 2006--Returned to the President under the 
        provisions of Senate Rule XXXI, paragraph 6 of the 
        Standing Rules of the Senate at adjournment of the 
        Senate on Sept. 29, 2006.
  (Organization: Department of the Treasury)

Paul Cherecwich, Jr., of Utah, to be a Member of the Internal 
        Revenue Service Oversight Board for a term expiring 
        Sept. 14, 209, vice Charles L. Kolbe, term expired.
  May 1, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Nov. 14, 2006--Committee on Finance. Hearings held.
  Dec. 6, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 6, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1013. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

W. Ralph Basham, of Virginia, to be Commissioner of Customs, 
        Department of Homeland Security, vice Robert C. Bonner, 
        resigned.
  Jan. 31, 2006--Received in the Senate and referred to the 
        Committee on Finance.
  Apr. 5, 2006--Committee on Finance. Hearings held.
  May 18, 2006--Committee on Finance. Ordered to be reported 
        favorably.
  May 18, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  May 18, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 640. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  May 26, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Department of Homeland Security)

Daniel Meron, of Maryland, to be General Counsel of the 
        Department of Health and Human Services, vice Alex Azar 
        II.
  Nov. 16, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Department of Health and Human Services)

Richard T. Crowder, of Virginia, to be Chief Agricultural 
        Negotiator, Office of the United States Trade 
        Representative, with the rank of Ambassador, vice Allen 
        Frederick Johnson, resigned.
  Nov. 16, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 14, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-502.
  Dec. 16, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 16, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 16, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 482. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 17, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Executive Office of the President)

David M. Spooner, of Virginia, to be an Assistant Secretary of 
        Commerce, vice James J. Jochum, resigned.
  Nov. 10, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 14, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-502.
  Dec. 16, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 16, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 16, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 481. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 17, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of Commerce)

Thomas R. Saving, of Texas, to be a Member of the Board of 
        Trustees of the Federal Supplementary Medical Insurance 
        Trust Fund for a term of four years. (Reappointment)
  Nov. 7, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Federal Insurance Trust Funds)

Thomas R. Saving, of Texas, to be a Member of the Board of 
        Trustees of the Federal Old-Age and Survivors Insurance 
        Trust Fund and the Federal Disability Insurance Trust 
        Fund for a term of four years. (Reappointment)
  Nov. 7, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Federal Insurance Trust Funds)

John L. Palmer, of New York, to be a Member of the Board of 
        Trustees of the Federal Old-Age and Survivors Insurance 
        Trust Fund and the Federal Disability Insurance Trust 
        Fund for a term of four years. (Reappointment)
  Nov. 7, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Federal Insurance Trust Funds)

Thomas R. Saving, of Texas, to be a Member of the Board of 
        Trustees of the Federal Hospital Insurance Trust Fund 
        for a term of four years. (Reappointment)
  Nov. 7, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Federal Insurance Trust Funds)

John L. Palmer, of New York, to be a Member of the Board of 
        Trustees of the Federal Hospital Insurance Trust Fund 
        for a term of four years. (Reappointment)
  Nov. 7, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Federal Insurance Trust Funds)

John L. Palmer, of New York, to be a Member of the Board of 
        Trustees of the Federal Supplementary Medical Insurance 
        Trust Fund for a term of four years. (Reappointment)
  Nov. 7, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 9, 2006--Returned to the President under the provisions 
        of Senate Rule XXXI, paragraph 6 of the Standing Rules 
        of the Senate.
  (Organization: Federal Insurance Trust Funds)

Susan C. Schwab, of Maryland, to be a Deputy United States 
        Trade Representative, with the rank of Ambassador, vice 
        Linnet F. Deily, resigned.
  Nov. 2, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Nov. 10, 2005--Senate Committee on Finance discharged by 
        Unanimous Consent.
  Nov. 10, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Executive Office of the President)

Susan C. Schwab, of Maryland, to be a Deputy United States 
        Trade Representative, with the rank of Ambassador, vice 
        Peter F. Allgeier.
  Oct. 6, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Oct. 18, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-371.
  Oct. 25, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Oct. 25, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Oct. 25, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 404. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Oct. 28, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Executive Office of the President)

Antonio Fratto, of Pennsylvania, to be an Assistant Secretary 
        of the Treasury, vice Robert Stanley Nichols.
  Oct. 6, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 14, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-502.
  Dec. 16, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 16, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 16, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 480. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 17, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

David Steele Bohigian, of Missouri, to be an Assistant 
        Secretary of Commerce, vice William Henry Lash, III, 
        resigned.
  Oct. 6, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 14, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-502.
  Dec. 16, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 16, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 16, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 479. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 17, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of Commerce)

Karan K. Bhatia, of Maryland, to be Deputy United States Trade 
        Representative, with the Rank of Ambassador, vice 
        Josette Sheeran Shiner.
  Sept. 15, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Oct. 18, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-371.
  Oct. 25, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Oct. 25, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Oct. 25, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 403. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Oct. 28, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Executive Office of the President)

James S. Halpern, of the District of Columbia, to be a Judge of 
        the United States Tax Court for a term of fifteen 
        years. (Reappointment)
  Sept. 6, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Oct. 18, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-371.
  Oct. 25, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Oct. 25, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Oct. 25, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 402. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Oct. 28, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: The Judiciary)

John E. Maupin, Jr., of Tennessee, to be a Member of the Social 
        Security Advisory Board for a term expiring Sept. 30, 
        2010, vice Gerald M. Shea, term expired.
  Sept. 6, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Sept. 20, 2006--Received message of withdrawal of nomination 
        from the President.
  (Organization: Social Security Administration)

Clay Lowery, of Virginia, to be a Deputy Under Secretary of the 
        Treasury, vice Randal Quarles.
  Sept. 6, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Oct. 18, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-371.
  Oct. 25, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Oct. 25, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Oct. 25, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 401. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Oct. 28, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Franklin L. Lavin, of Ohio, to be Under Secretary of Commerce 
        for International Trade, vice Grant D. Aldonas, 
        resigned. Senate Banking, Housing, and Urban Affairs 
        Senate Banking, Housing, and Urban Affairs
  Sept. 15, 2005--Committee on Banking, Housing, and Urban 
        Affairs. Hearings held. Hearings printed: S.Hrg. 109-
        414.
  July 29, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Sept. 29, 2005--Referred to the Committee on Banking, 
        Housing, and Urban Affairs by unanimous consent on
  Sept. 29, 2005 as a joint referral.
  Sept. 29, 2005--Committee on Banking, Housing, and Urban 
        Affairs. Ordered to be reported favorably.
  Oct. 18, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-371.
  Oct. 25, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Sept. 29, 2005--Reported by Senator Shelby, Committee on 
        Banking, Housing, and Urban Affairs, without printed 
        report.
  Oct. 25, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Oct. 25, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 400. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Oct. 28, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of Commerce)

Vincent J. Ventimiglia, Jr., of Maryland, to be an Assistant 
        Secretary of Health and Human Services, vice Jennifer 
        Young.
  July 18, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 14, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-502.
  Dec. 19, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Dec. 19, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 19, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 483. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 21, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of Health and Human Services)

Robert M. Kimmitt, of Virginia, to be Deputy Secretary of the 
        Treasury, vice Samuel W. Bodman, resigned.
  June 29, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  July 20, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-219.
  July 29, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  July 29, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  July 29, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 307. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  July 29, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Kevin I. Fromer, of Virginia, to be a Deputy Under Secretary of 
        the Treasury, vice John M. Duncan.
  June 6, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  July 20, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-219.
  July 29, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  July 29, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  July 29, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 306. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  July 29, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Philip D. Morrison, of the District of Columbia, to be an 
        Assistant Secretary of the Treasury, vice Pamela F. 
        Olson, resigned.
  May 26, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Oct. 7, 2005--Received message of withdrawal of nomination 
        from the President.
  (Organization: Department of the Treasury)

Randal Quarles, of Utah, to be an Under Secretary of the 
        Treasury, vice Brian Carlton Roseboro.
  May 26, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  July 20, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-219.
  July 29, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  July 29, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  July 29, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 305. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  July 29, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Sandra L. Pack, of Maryland, to be an Assistant Secretary of 
        the Treasury, vice Teresa M. Ressel, resigned.
  May 16, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  July 20, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-219.
  July 29, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  July 29, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  July 29, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 303. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  July 29, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Shara L. Aranoff, of Maryland, to be a Member of the United 
        States International Trade Commission for a term 
        expiring Dec. 16, 2012, vice Marcia E. Miller, term 
        expired.
  Apr. 27, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  May 24, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-265.
  July 29, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  July 29, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  July 29, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 308. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  July 29, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: United States International Trade Commission)

Charles E. Johnson, of Utah, to be an Assistant Secretary of 
        Health and Human Services, vice Janet Hale, resigned.
  Apr. 25, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  May 24, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-265.
  July 20, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  July 20, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  July 20, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 216.
  July 22, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of Health and Human Services)

Alex Azar II, of Maryland, to be Deputy Secretary of Health and 
        Human Services, vice Claude A. Allen, resigned.
  Apr. 19, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  May 24, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-265.
  July 20, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  July 20, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  July 20, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 215.
  July 22, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of Health and Human Services)

Robert J. Portman, of Ohio, to be United States Trade 
        Representative, with the rank of Ambassador 
        Extraordinary and Plenipotentiary, vice Robert B. 
        Zoellick, resigned.
  Apr. 13, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Apr. 21, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-215.
  Apr. 26, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Apr. 26, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Apr. 26, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 74. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Apr. 27, 2005--Cloture motion presented in Senate.
  Apr. 28, 2005--Vote on cloture motion withdrawn by unanimous 
        consent in Senate.
  Apr. 28, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Executive Office of the President)

Timothy D. Adams, of Virginia, to be an Under Secretary of the 
        Treasury, vice John B. Taylor.
  Apr. 6, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  May 24, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-265.
  July 29, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  July 29, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  July 29, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 304. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  July 29, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Suzanne C. DeFrancis, of Maryland, to be an Assistant Secretary 
        of Health and Human Services, vice Kevin Keane.
  Apr. 4, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  May 24, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-265.
  July 20, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  July 20, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  July 20, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 214.
  July 22, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of Health and Human Services)

Daniel R. Levinson, of Maryland, to be Inspector General, 
        Department of Health and Human Services, vice Janet 
        Rehnquist, resigned.
  Jan. 24, 2005--Received in the Senate and referred to the 
        Committee on Finance and when reported, to be 
        sequentially referred to the Committee on Homeland 
        Security and Governmental Affairs for not more than 20 
        days, pursuant to an order of the Senate of Jan. 20, 
        2005.
  Feb. 17, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-73.
  Mar. 17, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Mar. 17, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Mar. 17, 2005--Referred to the Committee on Homeland Security 
        and Governmental Affairs for not more than 20 days, 
        pursuant to an order of the Senate of Jan. 20, 2005.
  Apr. 13, 2005--Senate Committee on Homeland Security and 
        Governmental Affairs discharged by Unanimous Consent. 
        Pursuant to an order of the Senate of Jan. 20, 2005.
  Apr. 13, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 57. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  June 8, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of Health and Human Services)

Harold Damelin, of Virginia, to be Inspector General, 
        Department of the Treasury, vice Jeffrey Rush, Jr., 
        resigned. Jointly referred to Senate Finance and Senate 
        Homeland Security and Governmental Affairs.
  Jan. 24, 2005--Received in the Senate and referred to the 
        Committee on Finance and when reported, to be 
        sequentially referred to the Committee on Homeland 
        Security and Governmental Affairs for not more than 20 
        days, pursuant to an order of the Senate of Jan. 20, 
        2005.
  Feb. 17, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-73.
  Mar. 9, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Mar. 9, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Mar. 9, 2005--Referred sequentially to the Committee on 
        Homeland Security and Governmental Affairs for not more 
        than 20 days, purusant to an order of the Senate of 
        Jan. 20, 2005.
  Mar. 17, 2005--Senate Committee on Homeland Security and 
        Governmental Affairs discharged by Unanimous Consent. 
        and confirmed.
  Mar. 17, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Raymond Thomas Wagner, Jr., of Missouri, to be a Member of the 
        Internal Revenue Service Oversight Board for a term 
        expiring Sept. 14, 2009. (Reappointment)
  Jan. 24, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Feb. 17, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-73.
  Mar. 9, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Mar. 9, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Mar. 9, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 24.
  Mar. 16, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of the Treasury)

Jeffrey Robert Brown, of Illinois, to be a Member of Social 
        Security Advisory Board for a term expiring Sept. 30, 
        2008, vice Bradley D. Belt, resigned.
  Jan. 4, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Dec. 14, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-502.
  Dec. 6, 2006--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Dec. 6, 2006--Placed on Senate Executive Calendar. Calendar 
        No. 1017. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Dec. 9, 2006--Confirmed by the Senate by Voice Vote.
  (Organization: Social Security Administration)

Michael O. Leavitt, of Utah, to be Secretary of Health and 
        Human Services, vice Tommy G. Thompson, resigned.
  Jan. 4, 2005--Received in the Senate and referred to the 
        Committee on Finance.
  Jan. 19, 2005--Committee on Finance. Hearings held. Hearings 
        printed: S.Hrg. 109-170.
  Jan. 25, 2005--Committee on Finance. Ordered to be reported 
        favorably.
  Jan. 18, 2005--Committee on Health, Education, Labor, and 
        Pensions. Hearings held. Hearings printed: S.Hrg. 109-
        56.
  Jan. 25, 2005--Reported by Senator Grassley, Committee on 
        Finance, without printed report.
  Jan. 25, 2005--Placed on Senate Executive Calendar. Calendar 
        No. 6. Subject to nominee's commitment to respond to 
        requests to appear and testify before any duly 
        constituted committee of the Senate.
  Jan. 26, 2005--Confirmed by the Senate by Voice Vote.
  (Organization: Department of Health and Human Services)
                     BILLS AND RESOLUTIONS REFERRED
                            TO THE COMMITTEE

    There were 1622 Senate bills and 7 House bills referred to 
the Committee for consideration during the 109th Congress. In 
addition, 24 Senate and House resolutions (joint, concurrent or 
simple resolutions) were referred to the Committee.

                      REPORTS, PRINTS, AND STUDIES

    During the 109th Congress, the Committee and supporting 
Joint Committees, prepared and issued 18 reports, special 
prints, and studies on the following topics:
          

------------------------------------------------------------------------
              Title                  Senate Report       To accompany
------------------------------------------------------------------------
UNITED STATES-OMAN FREE TRADE     109-364...........  S. 3569
 AGREEMENT IMPLEMENTATION ACT.
ELDER JUSTICE ACT...............  109-337...........  S. 2010
TELEPHONE EXCISE TAX REPEAL AND   109-336...........  S. 1321
 TAXPAYER PROTECTION AND
 ASSISTANCE ACT OF 2006.
A BILL TO AUTHORIZE THE           109-321...........  S. 3495
 EXTENSION OF NONDISCRIMINATORY
 TREATMENT (NORMAL TRADE
 RELATIONS TREATMENT) TO THE
 PRODUCTS OF VIETNAM FILED,
 UNDER AUTHORITY OF THE ORDER OF
 THE SENATE OF AUGUST 4,
 (LEGISLATIVE DAY AUGUST 3) 2006.
MEDICARE, MEDICAID, AND SCHIP     109-278...........  S. 3524
 INDIAN HEALTH CARE IMPROVEMENT
 ACT OF 2006.
IMPROVING OUTCOMES FOR CHILDREN   109-269...........  S. 3525
 AFFECTED BY METH ACT OF 2006.
UNITED STATES-BAHRAIN FREE TRADE  109-199...........  S. 2027
 AGREEMENT IMPLEMENTATION ACT
 FILED UNDER AUTHORITY OF THE
 ORDER OF THE SENATE OF NOVEMBER
 18, 2005.
NATIONAL EMPLOYEE SAVINGS AND     109-174...........  S. 1953
 TRUST EQUITY GUARANTEE ACT.
DOMINICAN REPUBLIC-CENTRAL        109-128...........  S. 1307
 AMERICA-UNITED STATES FREE
 TRADE AGREEMENT IMPLEMENTATION
 ACT FILED, UNDER AUTHORITY OF
 THE ORDER OF THE SENATE OF JULY
 29, 2005.
APPROVING THE RENEWAL OF IMPORT   109-101...........  S.J. Res. 18
 RESTRICTIONS CONTAINED IN THE
 BURMESE FREEDOM AND DEMOCRACY
 ACT OF 2003.
HIGHWAY REAUTHORIZATION AND       109-082...........  S. 1230
 EXCISE TAX SIMPLIFICATION ACT
 OF 2005.
UNITED STATES TAX COURT           109-064...........  S. 661
 MODERNIZATION ACT.
PERSONAL RESPONSIBILITY AND       109-051...........  S. 667
 INDIVIDUAL DEVELOPMENT FOR
 EVERYONE ACT (PRIDE).
REPORT ON THE ACTIVITIES OF THE   109-048...........  ..................
 COMMITTEE ON FINANCE OF THE
 UNITED STATES SENATE DURING THE
 108TH CONGRESS PURSUANT TO RULE
 XXVI OF THE STANDING RULES OF
 THE SENATE.
RULES OF PROCEDURE..............  S.Prt. 109-3......  ..................
REPORT OF STAFF INVESTIGATION OF  S.Prt. 109-27.....  ..................
 THE NATURE CONSERVANCY.
REVIEW OF THE FDA'S APPROVAL      S.Prt. 109-45.....  ..................
 PROCESS FOR THE VAGUS NERVE
 STIMULATION THERAPY SYSTEM FOR
 TREATMENT-RESISTANT DEPRESSION.
MINORITY STAFF REPORT--           S.Prt. 109-68.....  ..................
 INVESTIGATION OF JACK
 ABRAMOFF'S USE OF TAX-EXEMPT
 ORGANIZATIONS.
------------------------------------------------------------------------


                        OFFICIAL COMMUNICATIONS

    During the 109th Congress, a total of 805 official 
communications were submitted to the Committee. Of these, 5 
were Presidential Messages; 745 were Executive Communications--
these communications include reports to advise and inform the 
Congress, required annual or semi-annual agency budget and 
activities summaries, and requests for legislative action. The 
committee also received 90 Petitions and Memorials.
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