[Senate Report 111-360]
[From the U.S. Government Publishing Office]
111th Congress
2d Session SENATE Report
111-360
_______________________________________________________________________
ACTIVITIES OF THE COMMITTEE ON
HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
and its
SUBCOMMITTEES
for the
ONE HUNDRED TENTH CONGRESS
December 10, 2010--Ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
00-000 WASHINGTON : 2010
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COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware SCOTT P. BROWN, Massachusetts
MARK L. PRYOR, Arkansas JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana GEORGE V. VOINOVICH, Ohio
CLAIRE McCASKILL, Missouri JOHN ENSIGN, Nevada
JON TESTER, Montana LINDSEY GRAHAM, South Carolina
CHRISTOPHER A. COONS, Delaware MARK KIRK, Illinois
Michael L. Alexander, Staff Director
Brandon L. Milhorn, Minority Staff Director and Chief Counsel
Trina Driessnack Tyrer, Chief Clerk
Patricia R. Hogan, Publications Clerk and GPO Detailee
Laura W. Kilbride, Hearing Clerk
------
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS DURING THE
110TH CONGRESS
JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii TED STEVENS, Alaska
THOMAS R. CARPER, Delaware GEORGE V. VOINOVICH, Ohio
MARK L. PRYOR, Arkansas NORM COLEMAN, Minnesota
MARY L. LANDRIEU, Louisiana TOM COBURN, Oklahoma
BARACK OBAMA, Illinois PETE V. DOMENICI, New Mexico
CLAIRE McCASKILL, Missouri JOHN WARNER, Virginia
JON TESTER, Montana JOHN E. SUNUNU, New Hampshire
------
SUBCOMMITTEES OF THE 110TH CONGRESS
FEDERAL FINANCIAL MANAGEMENT, GOVERNMENT INFORMATION, FEDERAL SERVICES,
AND INTERNATIONAL SECURITY (FFM)
THOMAS R. CARPER, Delaware, Chairman
CARL LEVIN, Michigan TOM COBURN, Oklahoma
DANIEL K. AKAKA, Hawaii TED STEVENS, Alaska
BARACK OBAMA, Illinois GEORGE V. VOINOVICH, Ohio
CLAIRE MCCASKILL, Missouri PETE V. DOMENICI, New Mexico
JON TESTER, Montana JOHN E. SUNUNU, New Hampshire
------
OVERSIGHT OF GOVERNMENT MANAGEMENT, THE FEDERAL WORKFORCE, AND THE
DISTRICT OF COLUMBIA (OGM)
DANIEL K. AKAKA, Hawaii, Chairman
CARL LEVIN, Michigan GEORGE V. VOINOVICH, Ohio
THOMAS R. CARPER, Delaware TED STEVENS, Alaska
MARK L. PRYOR, Arkansas TOM COBURN, Oklahoma
MARY L. LANDRIEU, Louisiana JOHN W. WARNER, Virginia
------
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS (PSI)
CARL LEVIN, Michigan, Chairman
THOMAS R. CARPER, Delaware NORM COLEMAN, Minnesota
MARK L. PRYOR, Arkansas TOM COBURN, Oklahoma
BARACK OBAMA, Illinois PETE V. DOMENICI, New Mexico
CLAIRE MCCASKILL, Missouri JOHN W. WARNER, Virginia
JON TESTER, Montana JOHN E. SUNUNU, New Hampshire
------
AD HOC SUBCOMMITTEE ON STATE, LOCAL, AND PRIVATE SECTOR PREPAREDNESS
AND INTEGRATION (SLPSPI)
MARK L. PRYOR, Arkansas, Chairman
DANIEL K. AKAKA, Hawaii JOHN E. SUNUNU, New Hampshire
MARY L. LANDRIEU, Louisiana GEORGE V. VOINOVICH, Ohio
BARACK OBAMA, Illinois NORM COLEMAN, Minnesota
CLAIRE MCCASKILL, Missouri PETE V. DOMENICI, New Mexico
JON TESTER, Montana JOHN WARNER, Virginia
------
AD HOC SUBCOMMITTEE ON DISASTER RECOVERY (SDR)
MARY L. LANDRIEU, Louisiana, Chairman
THOMAS R. CARPER, Delaware TED STEVENS, Alaska
MARK L. PRYOR, Arkansas PETE V. DOMENICI, New Mexico
CONTENTS
------
Page
I. Highlights of Activities.........................................1
Homeland Security.......................................... 3
A. 9/11 Commission Recommendations: Round Two............ 3
B. DHS Authorization Act................................. 4
C. Fighting For First Responders......................... 5
D. Protecting Against Terrorist Threats.................. 8
E. Oversight of Disaster Response........................ 12
F. Information Security.................................. 15
G. Border Security and Immigration....................... 16
H. Transportation Security............................... 19
I. Regulating the Chemical Industry...................... 19
J. Securing Against IEDs................................. 20
Contracting Reform......................................... 23
A. Wartime Contracting and DCAA.......................... 23
B. Contracting Process and S. 680........................ 24
C. DHS Contracting....................................... 25
Lobbying and Ethics Reform................................. 25
Inspector General Reform................................... 26
Commodities Speculation.................................... 27
District of Columbia....................................... 28
A. Voting Rights......................................... 28
B. Courts................................................ 28
E-Government............................................... 29
Protecting Federal Employees............................... 29
A. Domestic Partners..................................... 29
B. Employee Rights....................................... 30
Working for Connecticut.................................... 31
A. Port, Transit Security Grants......................... 31
B. Urban Area Security Initiative Grants................. 31
C. General Homeland Security, Disaster Aid............... 32
D. Immigration........................................... 32
Miscellaneous.............................................. 32
A. Bipartisanship........................................ 32
B. New Subcommittees..................................... 32
C. CRS Reports........................................... 33
D. Presidential Records.................................. 33
E. Presidential Library Donations........................ 33
F. GAO................................................... 33
G. Privacy............................................... 34
II. Committee Jurisdiction..........................................34
III. Bills and Resolutions Referred and Considered...................37
IV. Hearings........................................................37
V. Reports, Prints, and GAO Reports................................41
VI. Official Communications.........................................49
VII. Legislative Actions.............................................50
Measures Enacted Into Law................................ 50
Postal Naming Bills...................................... 54
VIII.Presidential Nominations........................................61
IX. Activities of the Subcommittees.................................65
Federal Financial Management, Government Information, and International
Security Subcommittee (FFM)
I. Hearings........................................................65
II. Legislation.....................................................74
III. GAO Reports.....................................................83
Oversight of Government Management, the Federal Workforce, and the
District of Columbia Subcommittee (OGM)
I. Hearings........................................................85
II. Legislation....................................................110
Measures Enacted Into Law................................ 110
Measures Favorably Reported by the Subcommittee and
Passed by the Senate..................................... 112
Measures Referred to the Subcommittee on which Hearings
were held or other Legislative Action was taken.......... 113
Measures which did not advance beyond referral to
Subcommittee............................................. 116
III. GAO Reports....................................................125
Permanent Subcommittee on Investigations (PSI)
I. Historical Background..........................................129
A. Subcommittee Jurisdiction............................. 129
B. Past Investigations................................... 131
II. Subcommittee Hearings during the 110th Congress................135
III. Legislative Activities during the 110th Congress...............158
IV. Reports, Prints and Studies....................................166
V. Requested and Sponsored GAO Reports............................178
Ad Hoc Subcommittee on State, Local, and Private Sector Preparedness
and Integration (SLPSPI)
I. Hearings.......................................................195
II. Legislation....................................................204
Ad Hoc Subcommittee on Disaster Recovery (SDR)
I. Hearings.......................................................205
II. Legislation....................................................218
111th Congress
SENATE
Report
2d Session 111-360
======================================================================
ACTIVITIES OF THE COMMITTEE ON HOMELAND
SECURITY AND GOVERNMENTAL AFFAIRS
DURING THE 110TH CONGRESS
_______
December 10, 2010.--Ordered to be printed
_______
Mr. LIEBERMAN, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
This report reviews the legislative and oversight
activities of the Committee on Homeland Security and
Governmental Affairs and its Subcommittees during the 110th
Congress. These activities were conducted pursuant to the
Legislative Reorganization Act of 1946, as amended; by Rule
XXV(k) of the Standing Rules of the Senate; and by additional
authorizing resolutions of the Senate. See Section II,
``Committee Jurisdiction,'' for details.
Senator Joseph I. Lieberman was Chairman of the Committee
during the 110th Congress; Senator Susan M. Collins was the
Ranking Member.
Major activities of the Committee during the 110th Congress
covered investigations, oversight, and legislation including
the second round of 9/11 Commission recommendations, and
Congressional ethics, procurement, and Inspector General
reforms; introduction of the Committee's first Department of
Homeland Security authorization bill, and a successful campaign
to persuade YouTube to remove scores of videos that showed
gratuitous violence against U.S. troops in Iraq and that could
be used to indoctrinate terrorists. Discussion of these major
activities appears in Section I below; additional information
on these and other measures appears in Section VII,
``Legislative Actions.''
Extensive information about the Committee's history,
hearings, legislation, documents, Subcommittees, and other
matters is available at the Web site, http://hsgac.senate.gov/.
I. HIGHLIGHTS OF ACTIVITIES
Five years and two Congresses after the creation of the
U.S. Department of Homeland Security (DHS), the government's
third largest cabinet level department faced serious management
deficiencies within its two dozen agencies and programs,
exposing it to continued threats from those who would dismantle
all or parts of it.
Despite steady progress in strengthening airline and port
security, the Department continued to struggle with effective
administration of its sprawling portfolio, including major
procurement projects to keep terrorists and nuclear weapons out
of the country.
Working as usual in a bipartisan manner with his Ranking
Member Susan Collins, R-Maine, Senator Lieberman's response to
these shortcomings came in the form of two pieces of
legislation--Implementing the 9/11 Commission Recommendations
Act of 2007, H.R. 1 (Public Law 110-53), which passed Congress
July 27, 2007, and the Committee's first DHS authorization
bill, the Department of Homeland Security Authorization Act of
2008 and 2009, S. 3623, introduced September 26, 2008.
In 2007, for the third year in a row, the Department was
placed on the Government Accountability Office's (GAO) biennial
``high-risk list'' of Federal agencies most at risk of
mismanagement, fraud, waste, and abuse. Poor management
throughout the Department continued to jeopardize a number of
priorities, including protection of the Federal Government's
information systems, development of second generation nuclear
radiation detectors, and an effective Southern border security
system.
On the other hand, the Administration took steps to
strengthen security at seaports and by funding for the Western
Hemisphere Travel Initiative and stepped up its efforts to
secure the Federal Government's computer networks. And, in
response to a series of hurricanes that struck the Gulf Coast
and Texas in September 2008, the Department proved that it had
learned at least some of the hard lessons of Hurricane Katrina,
pre-positioning commodities and coordinating well with State
and local officials to avert major displacement of and
suffering by those in the storm struck areas.
If 2007 was dominated by the second installment of
legislation implementing the 9/11 Commission recommendations,
2008 was dedicated primarily to oversight of that law and three
other major reorganizing laws the Committee originated and
passed in previous years.
The Committee worked to ensure proper implementation of
legislation passed in 2006 to reinvent the troubled Federal
Emergency Management Agency (FEMA). It monitored DHS' efforts
to prevent a major catastrophe involving the Nation's chemical
plants and asked probing questions when security lapses
occurred at the borders.
In its investigatory capacity, the Committee uncovered
troubling evidence that DHS' efforts to develop and deploy
radiation monitors at the Nation's major seaports were not as
successful or as cost effective as the Department has claimed.
This came as part of a broader investigation into how well
prepared the Nation was to deal with nuclear terrorism. The
Committee also dug into the phenomenon of homegrown terrorism,
winning a significant victory when Google, the owner of
YouTube, took down scores of videos that showed gratuitous
violence against U.S. troops in Iraq and that could be used to
indoctrinate terrorists. And with an eye toward efficient
government, the Senator, through hearings and perfecting
legislation, redoubled his oversight of accountability of the
procurement process--both within DHS and the Department of
Defense (DOD).
Beyond homeland security, the Senator continued to fight to
guard against government waste, fraud, and abuse with
legislation to strengthen the government's offices of
Inspectors General. He worked successfully to ensure the
highest possible ethical standards for members of Congress and
their staffs with Congressional passage of the Honest
Leadership and Open Government Act of 2007, S. 1, large
portions of which were drafted by the Committee. The Committee
also marked up a major procurement reform bill that was passed
by the Senate. Core provisions were signed into law as part of
the FY 2008 and FY 2009 National Defense Authorization Acts.
Ever cognizant of consumer woes, the Senator also held hearings
and introduced legislation on speculation in the commodities
markets in an effort to bring down escalating oil prices.
Senator Lieberman continued his strong advocacy for Federal
workers with, among other things, a push for benefits for the
domestic partners of Federal employees. And he continued to
look out for the citizens of Connecticut, particularly via
port, transit, and first responder grants.
HOMELAND SECURITY
Senator Lieberman has consistently believed that a
centralized focus on homeland security has added to the
security of the Nation. Despite some successes, the broad scope
of the Department's responsibilities, its frequent turnover in
top leadership positions, and its lax management of major
procurement contracts have prevented it from achieving the
vision Senator Lieberman first laid out for it in the Homeland
Security Act of 2002.
A. 9/11 Commission Recommendations: Round Two
The Implementing the Recommendations of the 9/11 Commission
Act of 2007 dominated the Committee's 2007 homeland security
agenda, representing another step toward improving DHS
operations and policies to make the Nation safer. Because the
measure was one of the Democratic leadership's top priorities,
Senator Harry Reid introduced it on behalf of Senators
Lieberman and Collins immediately upon the opening of the 110th
Congress on January 4, 2007. The version he introduced as the
Improving America's Security Act of 2007, S. 4, was a simple
``Sense of Congress'' provision, pending the Committee's
consideration of substantive provisions that Committee staff
had begun to draft the previous month.
The Committee held a hearing on January 9, 2007, to set
priorities for the legislation that would fill in the gaps and
implement the 9/11 Commission recommendations that were never
legislated or that had not been fully implemented. On February
15, 2007, the Committee marked up the legislation, and the bill
was reported to the Senate on February 22, 2007. More than 250
pages long, the legislation addressed a wide range of
provisions designed to enhance homeland security protections.
Given the Senator's longstanding interest in improving the
training and equipping of first responders, one of the
legislation's most significant provisions established in
statute the main homeland security grant programs with a risk-
based funding formula. Among other things, it also authorized
more than $4 billion for dedicated grant programs to secure
railways, transit systems, and buses; and established a
dedicated grant program for interoperable communications. The
bill increased authorized funding levels to $3 billion annually
for key homeland security grants that support State
preparedness and first responders; strengthened security
measures for the Visa Waiver Program and other Federal efforts
to detect and disrupt terrorist travel; strengthened the
Privacy and Civil Liberties Oversight Board; established a
voluntary certification program for private sector
preparedness; improved counterterrorism and homeland security
information sharing within the Federal Government and among
Federal, State and local officials; required all cargo carried
on passenger airplanes be scanned for explosives within 3
years; and gave Transportation Security Officers the same
employment rights other TSA workers enjoyed.
Working with Senate leadership, Senator Lieberman developed
a bill that incorporated the Committee's bill with additional
titles reported out by other committees. This broader
legislation was then introduced as a substitute amendment on
February 28, 2007. For the next two weeks Senator Lieberman
served as floor manager, shepherding the bill through a lengthy
process in which hundreds of filed amendments were considered
for inclusion. After many votes on controversial amendments and
several cloture votes, on March 13, 2007, the Senate approved
the measure by a vote of 60-38. After Senate passage, chief
conferees Chairman Lieberman and House Homeland Security
Committee Chairman Bennie Thompson, D-MS, and their staffs
conducted lengthy negotiations also involving numerous other
House and Senate committees.
The Senate and House conferees held a public meeting on
July 19, 2007, attended by most of the 62 conferees. Conferees
approved a provision to establish a 5-year deadline for 100
percent cargo scanning. A week later, on July 25, 2007, a
compromise was agreed to by House and Senate negotiators. An
additional provision to protect from lawsuits people who in
good faith report what they believe is terrorist activity in
and around airplanes, trains, and buses was added before
adoption of the conference report. On July 26, 2007, the Senate
approved the conference report by a vote of 85-8, and the House
followed the next day. The bill was signed by the President on
August 3, 2007.
On October 30, 2007, Senator Lieberman commented on the
declassification and public disclosure of the top line of the
intelligence budget, a reform the Senator had pressed for that
was included in the 9/11 legislation. The intelligence budget
for Fiscal Year 2007 was $43.5 billion. On October 28, 2008, he
issued a similar statement when the FY 2008 intelligence budget
was revealed to be $47.5 billion.
B. DHS Authorization Act
On September 26, 2008, Senator Lieberman introduced with
Senator Collins the Committee's first ever authorization bill
for the Department as a guide for more effective and efficient
homeland security management. Based on the Committee's
considerable experience overseeing the Department, the bill
contained provisions, among many others, to create an Under
Secretary for Policy to ensure policy coordination across the
Department; to strengthen the Chief Information Officer's
authorities and give that position greater control over IT
investments; to strengthen contract oversight by requiring DHS
to certify program managers for all major acquisitions and to
report to Congress on its use of various contracting
authorities; to help ensure the accountability and cost-
effectiveness of major acquisitions projects by requiring a
formal investment review process, and by requiring, for
investments with significant technological challenges, formal
testing and evaluation prior to investment; to strengthen the
authorities of the Office of International Affairs to improve
coordination with the Department's international activities and
employees; and to require a consolidated headquarters for DHS.
The bill also would strengthen the Department's hand to
impose cyber security by establishing a National Cyber Security
Center--a key component of the Comprehensive National
Cybersecurity Initiative (CNCI)--to coordinate efforts to
protect government networks; by strengthening the Department's
ability to hire cyber security experts; and establishing a
private sector board to advise the Secretary on cyber security
policy.
C. Fighting For First Responders
Since the 2001 terrorist attacks, Senator Lieberman has
worked assiduously to obtain adequate funding for first
responders through budget letters, amendments, statements, and
frequent visits with Connecticut firefighters, police officers,
and emergency personnel. In 2007, the Senator succeeded--in the
Implementing Recommendations of the 9/11 Commission Act of
2007--in making permanent several grants programs--including a
program for interoperable communications. And he helped resolve
a year-long dispute over grant funding formulas.
At the end of the year, the Associated Press reported that
the Administration planned to reduce grant funding by almost
half. And when the President's FY 2009 budget was released in
February 2008, a 48-percent cutback was proposed, similar to
the dramatic cutbacks proposed in the previous 4 years.
Congress did not play along.
1. Increasing Resources for Homeland Security Grants--When
the President unveiled his homeland security budget proposal
for FY 2008 on February 5, 2007, Senator Lieberman issued a
blistering statement chastising the Administration for
attempting to cut first responder funds for the fourth year in
a row, despite no evidence the terrorist threat had diminished
and abundant evidence first responders needed additional
training and equipment to deal with a large scale natural
disaster. The Senator said the President's proposal to cut by
52 percent the main source of funds for first responder
training and equipment represented a ``disconnect between his
rhetoric and the reality of protecting Americans from terrorist
threats and natural disasters.''
On March 12, 2007, Senator Lieberman sent a letter to the
Chairman and Ranking Member of the Senate Budget Committee
outlining his proposal to increase homeland security funding by
$3.4 billion over the President's request--including $1.1
billion more for State homeland security grants and urban area
security initiative grants, which support State and local
preparedness efforts, including training and equipment for
first responders; $719 million more for all-hazards Emergency
Management Performance Grants; $400 million more for
interoperable communications grants; $477 million more for fire
fighters; and $225 million more for rail and transit grants.
On March 23, 2007, Senators Lieberman and Collins
successfully added $731 million for communications
interoperability and emergency planning to the FY 2008 budget
resolution.
On May 17, 2007, after the Senate passed its FY 2008 budget
resolution, Senator Lieberman expressed gratification that
Congress restored cuts the President had proposed to first
responder programs and added $400 million for an interoperable
communications grant program and $331 million in additional
funds for Emergency Management Performance Grants.
The 9/11 Commission recommendations bill, passed in July
2007, called for more than $4 billion over 4 years for rail,
transit, and bus security grants, of which $412 million was
appropriated for 2008; a $1.8 billion authorization for FY 2008
to assist States and high-risk urban areas in preparing for
terrorist threats, all of which was appropriated for 2008; $400
million for Emergency Management Performance Grants to assist
States in preparing for all-hazards, appropriated at $300
million; and $400 million for interoperable emergency
communications, of which $100 million was appropriated.
When the FY 2009 budget was released on February 4, 2008,
the Senator issued another strong statement rejecting the
Administration's proposed cuts for State and local homeland
security grants and defunding of interoperability grants
altogether. On February 22, 2008, the Senator called on the
Senate Budget Committee to fund homeland security needs at
least at their FY 2008 levels.
A month later, on March 14, 2008, the Senate restored
funding for the State Homeland Security Grant Program, the
largest source of State and local first responder funding, to
$950 million, the same amount the Committee called for in its
9/11 Commission recommendations bill the year before.
On April 11, 2008, Senators Lieberman and Collins, along
with the Chairman and Ranking Member of the House Homeland
Security Committee, wrote to DHS Secretary Michael Chertoff
urging him to abide by the provisions of the 9/11 Commission
recommendations law and allow State and local governments to
use up to 50 percent of their grant money on overtime and other
personnel costs. The Department had issued grant guidance that
placed lower limits on how much grant money could be used for
those purposes. Even after receiving the bicameral, bipartisan
letter, DHS resisted changing its guidance. Through Senator
Lieberman's efforts, however, the Personnel Reimbursement for
Intelligence Cooperation and Enhancement of Homeland Security
Act of 2008, H.R. 6098, enacted on October 14, 2008, further
clarified the provisions of the 9/11 Commission recommendations
act and helped ensure that the Department complied with the
law.
On September 23, 2008, the Senator hailed the increased
funding and flexibility authorized in the United States Fire
Administration Reauthorization Act of 2008, S. 2606, a bill he
co-sponsored. The United States Fire Administration (USFA)
provides support to more than 30,000 fire departments through
training, emergency incident data collection, fire awareness
and education, and research and development. The
reauthorization enabled USFA to adapt to evolving threats such
as the wildfires that have plagued the Western States in 2007
and 2008.
Connecticut received $36.6 million in grant money for 2007,
which included a onetime only $13 million grant for
interoperability. The State received $33.5 million in 2008.
2. Changing the Grant Funding Formula--Passage of the
second installment of the 9/11 Commission recommendations bill
in July 2007 formally authorized the State Homeland Security
Grant Program (SHSGP) and the Urban Area Security Initiative
(UASI) grant program into law and increased the authorization
amounts for both programs. It also cemented into law a key
policy change in grant distribution that Senator Lieberman had
been advocating for several years. The measure established in
statute that homeland security grants would be distributed to
States and high-risk urban areas based on risk, while still
ensuring that all States have funds available for basic
preparedness. Each State was guaranteed a minimum of .375
percent of funds in FY 2008 to prevent, prepare for, respond
to, and recover from terrorist attacks, scaling down to a
minimum of 0.35 percent in 2012.
3. Interoperability--On April 24, 2007, Senators Lieberman
and Collins wrote to DHS Secretary Chertoff expressing
disappointment that the Department had not moved more
efficiently to improve its interoperability communications
program and warned that without a strategic approach and firm
leadership, first responders would continue to be imperiled
because of an inability among Federal, State, and local
officials to communicate effectively during an emergency or
disaster. Based on a GAO report dated April 2, 2007, the
Senators identified several major weaknesses in DHS'
interoperable program, including inadequate procedures to
assess grant requests; poor communications planning among
Federal, State, and local governments; ambiguous radio
standards; and a lack of training.
The second 9/11 commission recommendations bill, passed in
July 2007, created a dedicated interoperability grant program
within DHS to improve interoperability at local, State, and
Federal levels. The program was authorized at $400 million a
year and States were required to pass through at least 80
percent of awarded funds to local and tribal governments.
The President's FY 2009 budget request called for defunding
the interoperable communications grant program. But on July 27,
2007, Senator Lieberman hailed the inclusion of a Lieberman-
Collins amendment to the Senate DHS appropriations bill for FY
2008 providing $100 million for a dedicated interoperable
communications program.
Ultimately, the new grant program received $50 million in
appropriations in both FY 2008 and FY 2009.
4. Making the Case for More Resources--On February 13,
2007, the Committee held a hearing on the DHS budget for FY
2008 with Secretary Chertoff as its sole witness. The Senator
told the Secretary he was ``deeply disappointed'' that the
Department's budget request ``continues a risky policy of
underfunding some of the Nation's most pressing homeland
security priorities.''
The Senator's March 12, 2007, letter to the Senate Budget
Committee proposed an increase in homeland security funding by
$3.4 billion--including $25 million for the air cargo screening
program; $25 million for chemical security; and $477 million
for firefighters.
On February 14, 2008, the Committee held a hearing on the
FY 2009 DHS budget, again with Secretary Chertoff as the only
witness. The Senator focused on securing adequate funding for
homeland security grants. ``I will, as I have in the past,
oppose the Administration's proposed cuts to these grant
programs and work to restore funding to full levels authorized
by last year's 9/11 legislation,'' Senator Lieberman said.
On March 14, 2008, the Senate accepted an amendment by
Senators Lieberman and Collins, as part of the FY 2009 budget,
to increase funding for FEMA operations and management by $141
million.
5. Employment Compensation Benefits for First Responders--
On October 1, 2008, the Committee reported out the Federal
Firefighters Fairness Act of 2007, S. 1924, a bill Senator
Lieberman cosponsored. S. 1924 would create a presumption that
a disability or death of a Federal employee in fire protection
activities caused by any of certain diseases is the result of
the performance of such employee's duty and is therefore
compensable under worker compensation law. This bill would
bring the Federal Government in line with the 40 States whose
laws provide such a presumption, and would ease the difficulty
that fire fighters experience in proving that such conditions
resulted directly from the hazardous workplace environment.
Senator Lieberman was disappointed that S. 1924 was not passed
by the Senate.
On June 7, 2007, Senator Lieberman signed a letter to
President Bush urging that applications under the Public Safety
Officers' Benefits Program be expedited. The program provides
for the compensation for the families of public safety officers
who die as a result of heart attack or stroke, with the
presumption that the death was a result of an injury sustained
in the line of duty. Senator Lieberman was dismayed that many
applications had seemingly been stalled, and this letter in
part led to the favorable processing of many applications.
D. Protecting Against Terrorist Threats
To mark the sixth anniversary of the terrorist attacks on
the United States, the Committee held a hearing September 10,
2007, to assess current terrorist threats against the Nation.
The Nation's most senior law enforcement and intelligence
officials--the Secretary of DHS, the Director of National
Intelligence (DNI), the Director of the National
Counterterrorism Center (NCTC), and the Director of the FBI
told the Committee that while the Nation is safer than it was
before 2001, threats remain and they are evolving.
In January 2008, Senator Lieberman launched an
investigation into whether the Federal Government is prepared
to respond to and help the country recover from a potential
terrorist nuclear attack. The investigation consisted of a
series of hearings on various aspects of preparation, response,
and recovery and incorporated an ongoing investigation into two
large acquisition programs--the $1.12 billion Advanced
Spectroscopic Portals (ASPs) acquisition and the $1.3 billion
Cargo Automated Advanced Radiography System (CAARS)
acquisition--designed to develop better nuclear radiation
detectors for our ports of entry. The Committee planned to
release a report examining the threat of nuclear terrorism and
the ability of the Federal Government to respond to such an
attack. The report will include recommendations on ways in
which the Federal Government can strengthen its capabilities.
1. Domestic Nuclear Detection Office--In the 110th
Congress, Senator Lieberman continued his aggressive oversight
of DHS's Domestic Nuclear Detection Office (DNDO), which is
charged with developing second-generation radiation detection
technology. On May 15, 2007, Senator Lieberman, along with
Reps. Thompson, Henry Waxman, D-CA., James Langevin, D-R.I.,
and Michael McCaul, R-TX., asked GAO to evaluate the costs
associated with deploying DNDO's new radiation portal monitors,
the ASP, designed to help identify nuclear weapons and
eliminate the high false alarm rate for the first generation
radiation portals, the Polyvinyl Toluene (PVT).
On August 15, 2007, Senator Lieberman, along with Senator
Daniel Akaka, D-HI., Congressman Bennie G. Thompson, D-MS., and
Congressman James Langevin, D-R.I., sent a letter to DHS
Secretary Chertoff requesting that he delay certification of
the new ASP program until GAO had finished its cost benefit
analysis. They also applauded Secretary Chertoff for appointing
an independent review panel to determine the effectiveness of
the ASPs. In a letter to Senator Lieberman, dated Oct. 12,
2007, Secretary Chertoff said he was ``committed to meet with
the GAO team assessing this issue prior to making a final
decision on the matter.''
On March 5, 2008, Senator Lieberman issued a statement
expressing concern about the independent review panel's
findings. The panel found that DNDO testing at the Nevada Test
Site in 2007 did not show that ASPs monitors would provide the
Bureau of Customs and Border Protection (CBP) with a
significant improvement in detection performance over current
generation PVT radiation monitors during primary screening at
domestic ports of entry. The limitations of DNDO's testing
methods, analysis, and scoring make it almost impossible to
evaluate the ASPs' performance for detecting nuclear threat
materials or for rapidly identifying whether the radioactive
object is dangerous, the expert panel concluded.
On July 16, 2008, the Committee held a hearing to examine
the DNDO's Global Nuclear Detection Architecture (GNDA). The
plan is intended to coordinate 74 Federal programs into a
coherent comprehensive nuclear detection global system. The
Senators heard testimony from GAO and Congressional Research
Service (CRS) experts who stated that the DNDO did not have a
strategic plan for the GNDA.
A second hearing followed on September 25, 2008, during
which GAO released a report Senator Lieberman requested in 2007
that found the ASPs program over budget, behind schedule, and
not meeting performance expectations. Senator Lieberman plans
to issue a Committee report with findings and recommendations
based on lessons learned from DNDO's two largest acquisition
programs, the ASPs acquisition and the $1.3 billion Cargo
Automated Advanced Radiography System (CAARS) acquisition.
2. Responding to Nuclear Terror Attacks--A series of
hearings explored the Federal Government's readiness to respond
to a nuclear terrorist attack equivalent to the bomb dropped on
Hiroshima.
On July 19, 2007, the Committee explored the Defense
Department's progress in coordinating with DHS to respond
efficiently to a natural disaster or terrorist attack. The
Post-Katrina Emergency Management Reform Act, enacted into law
in 2006, required greater coordination efforts between DOD and
DHS during a catastrophe.
On February 8, 2008, Senators Lieberman and Collins
formally requested all relevant Federal agencies provide
information about their roles and responsibilities for
preventing and responding to a terrorist nuclear attack. The
information request was sent to the Departments of Defense,
Energy, Agriculture, Homeland Security, Health and Human
Services, State, Transportation, Labor, Veterans Affairs,
Commerce, Interior, Justice, the Environmental Protection
Agency, the National Aeronautics and Space Administration, the
Nuclear Regulatory Commission, and the Director of National
Intelligence.
On February 13, 2008, the Committee evaluated the
recommendations of The Commission on National Guard and
Reserves, particularly the recommendations that DOD's civil
support mission have equal priority to its war-fighting
missions, and that National Guard and Reserve forces play a
lead in providing civil support. Senators Lieberman and Collins
announced their intention to draft legislation to clarify the
DOD's role in supporting the response to a catastrophic event,
and introduced the Ensuring Defense Support to Catastrophic
Incident Response Act of 2008, S. 3585, on September 25, 2008.
On April 2, 2008, Senators Lieberman and Collins focused on
the nature of the threat of nuclear terrorism to the homeland,
specifically the intent and capability of terrorists to obtain
nuclear materials, build a bomb, transport it, and detonate it.
Following a public hearing, Members of the Committee received a
classified briefing from several intelligence agencies on the
threat of nuclear terrorism.
On April 15, 2008, the Senators examined the consequences
of a nuclear terrorist attack on a major metropolitan city. The
hearing took a broad look at what would happen on the ground
the day after a nuclear attack. Senators heard testimony
stating that medical facilities would be quickly overwhelmed,
that plume modeling and effective communications were necessary
to minimize the loss of life, and that in many cases,
sheltering in place would be the best option for those near the
blast area.
A May 15, 2008, hearing looked at the current gaps in
providing medical treatment and mass care in the event of a
nuclear attack. One witness, Joseph C. Becker, Senior Vice
President, Disaster Services from the American Red Cross stated
that ``the needed facilities, supplies, volunteers and
infrastructure are not prepared to operate effectively or
quickly enough in this environment.'' The Red Cross requested
Federal funding to perform its responsibilities during a large
scale disaster, which it was eventually granted.
Building on the previous hearing, on June 26, 2008, the
Committee heard testimony from Federal Government witnesses on
the capability of the Federal Government to respond to a
catastrophic event. The witnesses admitted that the Federal
Government is not properly prepared for the event the size of a
terrorist nuclear attack.
Committee staff planned a final report examining the threat
of nuclear terrorism, the consequences of such an attack, and
several major challenges our Nation would face in responding to
such an attack. The report will include recommendations on ways
in which the Federal Government can strengthen its
capabilities.
3. Islamist Radicalization and Homegrown Terrorism--A
September 19, 2006, hearing on Islamist radicalization in U.S.
prisons held by Senator Collins, then Chairman of the
Committee, piqued Senator Lieberman's interest in the issue of
homegrown terrorism. When Senator Lieberman became Chairman in
2007, he decided to launch a full scale investigation into the
issue. In 2007 and 2008, the Committee held seven hearings on
related topics such as the threat against the United States,
the roots of Islamist ideology, how the Internet plays a role
in recruitment, and what the U.S. Government was doing to
combat the threat. The Senator drove home the point that
violent Islamist extremism is an international and domestic
threat that demands coordination across government, including
agencies that traditionally have different jurisdictions, such
as the FBI and Department of State.
On March 14, 2007, Senator Lieberman's hearing examined the
homegrown threat and U.S. efforts to understand and reduce
Islamist radicalization in this country. Lieberman called for a
government-wide strategy to stem the threat. Witnesses were DHS
Secretary Chertoff, Assistant Secretary for Intelligence and
Analysis Charlie Allen, and Daniel Sutherland, head of DHS's
Office for Civil Rights and Civil Liberties.
A May 3, 2007, hearing focused on use of the Internet by
extremists to recruit and train terrorists, and to carry out
terrorist attacks. Frank J. Cilluffo, Director of the Homeland
Security Policy Institute at The George Washington University
released a report that recommended the government combat
Internet recruitment by creating an online counter-offensive
and bolstering cross-cultural dialogue.
On May 9, 2007, Senator Lieberman issued a press release on
the arrest of six men allegedly plotting an attack on U.S.
soldiers stationed at Fort Dix, N.J. Senator Lieberman
reiterated his call for a government strategy to combat
radicalization. ``We simply have not devoted the proper amount
of attention and resources to address the spread of Islamic
extremism,'' he said. ``Nor do I see the kind of leadership we
need to put together an effective, government-wide effort to
respond to the ideology the extremists are spreading.''
On May 10, 2007, Senator Lieberman explored government
coordination to address the homegrown threat, including
countering terrorist propaganda and outreach efforts to
American Muslim communities. The plot to attack Fort Dix, N.J.,
highlighted the critical importance of such coordination, as
well as the role local law enforcement must play in countering
the homegrown threat.
On June 27, 2007, the Senator took a look at the European
experience. Counterterrorism officials from France and the
Netherlands discussed factors in European society that lead
disaffected youth to join or emulate terrorist organizations
like al-Qaeda and described their governments' efforts to
prevent terrorist networks from succeeding on their soil.
On August 15, 2007, Senator Lieberman issued a press
release praising the work of the New York City Police
Department which examined in detail the homegrown
radicalization process of Islamist terrorism in the West. ``The
NYPD's report is a breakthrough in our efforts to defend our
homeland in the global war with Islamist terrorism, and it has
important implications for our national homeland security
strategy. The report underscores the critical role of local law
enforcement in proactive efforts to find the terrorists before
they strike. . . . The Department of Homeland Security and
Congress must ensure adequate funding for similar programs in
other high-risk areas of the country.''
On October 30, 2007, the Committee held a sixth hearing on
the response of State and local law enforcement with witnesses
from four police departments--New York, Los Angeles, Miami-
Dade, and Kansas City, who talked about their proactive
approach to countering the homegrown threat. Senator Lieberman
said the local law enforcement agencies should serve as models
for other cities around the Nation and that the Federal
Government should provide more direction and resources to help
make that happen.
On May 8, 2008, Senator Lieberman released a Committee
staff report citing the growing threat of homegrown terror
caused in large part by the Internet's role in radicalizing
potential terrorists around the globe, which, in turn,
increases the potential for homegrown terrorism within our own
borders. The report called for a national strategy to counter
the influence of the ideology.
On July 10, 2008, the Committee held a seventh hearing on
the ideological roots that lead to violent Islamist extremism
and what the United States can do to diminish the influence of
the ideology here at home. The Committee's lead witness, Maajid
Nawaz, a former leader of Hizb ut-Tahrir in the United Kingdom,
explained how he was radicalized by Islamist ideology and how
the ideology leads to terrorism.
A week later, the Senator sent a letter to Google, owner of
the largest video sharing Website ``YouTube,'' asking YouTube
to follow its own standards for posting videos and take down
terrorist videos on the site. On May 20, 2007, the Senator
issued a statement commending Google for taking down about 80
videos that violated its video posting standards, but the
Senator called on the Internet giant to do more. On September
11, 2007, Google changed its video posting standards to bar
videos that ``incite violence''--a direct result of the
Senator's pressure.
E. Oversight of Disaster Response
Following the Committee's comprehensive investigation into
the poor government response to Hurricane Katrina in 2005 and
passage of the Post-Katrina Emergency Management Reform Act of
2006--which sought to restructure FEMA so that for the first
time in its history it would be prepared for not just a
disaster, but a catastrophe--Senator Lieberman bore in on FEMA
oversight.
1. Preparedness and Implementing the Post-Katrina Act--On
January 3, 2007, Senator Lieberman announced that he had
written a letter to Secretary Chertoff with Senator Collins and
House Homeland Security Committee Chairman and Ranking Member
Bennie Thompson and Peter King, R-N.Y., to complain about
insufficient progress in implementation of the Post-Katrina
Emergency Management Reform Act. The lawmakers asked that DHS
brief Congress on actions being taken to ensure that all
relevant functions and components of the Department's
Preparedness Directorate were being transferred to FEMA.
On May 22, 2007, Senator Lieberman chaired a hearing
entitled ``Implementing FEMA Reform: Are We Prepared for the
2007 Hurricane Season?'' at which he called on DHS and FEMA to
boost hurricane preparedness efforts and move quickly to
implement recently passed emergency response reforms.
On July 12, 2007, Senators Lieberman and Collins asked GAO
to evaluate DHS's disaster response and disaster response
exercises to make sure response plans were complete and
understood by participants. In a letter to GAO Comptroller
General David Walker, the Senators stressed ``the need for
improved planning for disasters and the need to exercise plans
to ensure preparedness.'' The Senators also asked GAO to
examine selected DHS responses to actual disasters and
exercises.
Given that effective, efficient, and timely implementation
of the Post-Katrina Act is vital to our homeland security, on
September 17, 2007, Senator Lieberman asked GAO to evaluate DHS
and FEMA's implementation of the Post-Katrina Act.
In July 2007, Senator Lieberman was successful, along with
Senators McCaskill, Obama, Pryor, Landrieu, Kerry, and Johnson,
in securing Senate passage of a measure in the 2008 Homeland
Security Appropriations bill that would require comprehensive
testing for formaldehyde in trailers used to house disaster
victims and an investigation into FEMA's handling of the issue.
On October 22, 2007, Senators Lieberman and Collins wrote
to Secretary Chertoff about the draft National Response
Framework, a document describing the roles of Federal, State
and nongovernmental actors in a disaster. In their letter,
Senators Lieberman and Collins raised several concerns, and in
some instances, asked questions, about the draft National
Response Framework, especially as it related to the Post-
Katrina Act. Senator Lieberman was pleased when many of the
concerns raised in the letter were addressed in the final
National Response Framework.
On February 7, 2008, Senators Lieberman, Collins, Landrieu,
and Stevens wrote to FEMA Administrator Ken Paulison
criticizing FEMA's failure to have sufficiently improved its
disaster surge workforce, leaving the Nation susceptible to the
same problems the country experienced in Hurricane Katrina. The
letter urged FEMA to make its surge workforce a priority.
On March 4, 2008, Senator Lieberman endorsed the findings
of a GAO report that determined FEMA must improve its crisis
counseling program for victims of catastrophic disasters.
On April 3, 2008, Senator Lieberman chaired a hearing to
review progress FEMA had made in its preparedness capabilities
since Hurricane Katrina and passage of the Post-Katrina
Emergency Management Reform Act. At the hearing entitled ``The
New FEMA: Is the Agency Better Prepared for a Catastrophe Now
Then It Was in 2005?'' DHS Inspector General Richard Skinner
said the agency had made modest or moderate progress in eight
of nine categories in need of reform. Senator Lieberman said
``much more'' remains to be done.
On June 5, 2008, Senators Lieberman and Collins wrote to
DHS Secretary Chertoff requesting an update on efforts to
implement a public emergency response system, as required by an
Executive Order 2 years earlier.
On June 25, 2008, the Committee marked up and reported out
the Predisaster Mitigation Act, S. 3175, which authorized as a
competitive grant program the FEMA program that gives grants to
States for projects to mitigate the risk of natural disasters.
The Pre-Disaster Mitigation Program was later reauthorized in
legislation signed by the President.
In late August, in responding to Hurricane Gustav, a major
hurricane that made landfall in the Gulf Coast, DHS and FEMA
successfully implemented many of the provisions of the Post-
Katrina Act, leading to a response far better than FEMA's
response to Hurricane Katrina. On September 2, 2008, Senators
Lieberman and Collins congratulated FEMA on its response to
Hurricane Gustav. ``It seems clear that all levels of
government--Federal, State, and local--and key agencies,
especially FEMA, have learned important lessons from Hurricane
Katrina, and those lessons have helped save lives.'' Later in
September, a second devastating hurricane, Hurricane Ike,
struck the Gulf Coast, and DHS and FEMA once again used the
additional tools, resources, and authorities provided in the
Post-Katrina Act to improve the Federal Government's
preparedness for and response to the disaster.
2. Hurricane Katrina Recovery--Due to the extreme
challenges in recovering from Hurricane Katrina, when Senator
Lieberman became Chairman of the Committee in January 2007, he
created the Ad Hoc Subcommittee on Disaster Recovery, chaired
by Senator Landrieu. This subcommittee has oversight over
issues related to the government's work in helping communities
recover from disasters.
On January 29, 2007, the Committee held a field hearing in
New Orleans--also attended by Senator Landrieu and Senator
Obama--to examine the slow pace of the ongoing recovery
following Hurricane Katrina and the weaknesses in Federal
programs designed to help.
On June 29, 2007, Senator Lieberman, responding to a GAO
report, said that long term rebuilding assistance to the Gulf
Coast States was needed.
On August 29, 2007, Senators Lieberman and Landrieu marked
the second anniversary of Hurricane Katrina's landfall by
requesting a thorough analysis of what the Federal Government
has done, is doing, and still can do, to help hurricane victims
rebuild their lives.
3. Mass Care--In addition to a hearing in 2008 held on mass
care as part of the series on preparedness for nuclear
terrorist attack, Senator Lieberman closely tracked the role of
voluntary organizations in helping FEMA provide food and
shelter to victims of a disaster. On April 17, 2007, Senators
Lieberman and Collins asked GAO to assess how well FEMA would
be able to coordinate mass care in a catastrophe. The mission
had previously been assigned to the American Red Cross but DHS
decided FEMA would be the lead agency. On September 18, 2008,
Senator Lieberman expressed concern after a GAO report found
that FEMA still was not fully prepared for a catastrophic
disaster because it had not filled gaps created by the fact
that the voluntary organizations upon which it relies for mass
care and shelter lack the capacity needed to adequately respond
to disasters.
On September 24, 2008, Senators Lieberman and Collins sent
a letter to Senate Appropriations Committee Chairman Robert
Byrd, D-W.V., and Ranking Member Judd Gregg, R-N.H., requesting
that the Senate include funding in the 2009 Continuing
Resolution to the Red Cross for disaster response. A short time
later, Red Cross received $100 million dollars, which will help
alleviate its budget constraints due to a high number of large
scale disasters in 2008.
4. Private Sector Preparedness--The second 9/11 Commission
bill, which passed Congress July 27, 2007, established for the
first time a voluntary certification program to assess whether
private sector entities are complying with voluntary
preparedness standards. DHS, in consultation with appropriate
private sector entities, was tasked with developing program
guidelines and selecting a qualified nongovernmental entity to
manage certification and accreditation.
On July 21, 2008, Senator Lieberman commended DHS for
beginning to implement its Voluntary Private Sector
Preparedness Accreditation and Certification Program. Private
sector's preparedness is critical given that it owns 85 percent
of the Nation's critical infrastructure.
F. Information Security
The Federal Government's ability to protect its information
systems and databases hobbled along in 2007, but by 2008 the
Administration began to tackle the problem with its
Comprehensive National Cybersecurity Initiative (CNCI),
although the secrecy surrounding the initiative made oversight
more difficult.
On July 27, 2007, GAO found ``significant weaknesses''
government-wide in agencies' information security policies and
practices, placing sensitive data at risk for theft, loss, or
improper disclosure. ``The Federal Government is not doing
enough to guarantee the security of its computer systems and
the vast databases within them,'' Senator Lieberman stated.
On August 3, 2007, Senator Lieberman released another GAO
report on the information security of U.S. VISIT, a program
that tracks visitors entering the country. The report
maintained that U.S. VISIT's information controls were so weak
that terrorists could hack into and compromise the integrity of
the entire system. ``DHS is spending $1.7 billion of taxpayer
money on a program to detect potential terrorist crossing our
borders yet isn't taking the most basic precautions to keep
them from hacking into and changing or deleting sensitive
information,'' the Senator said.
In 2008, reports indicating foreign governments had been
able to hack into Federal computer systems led Senator
Lieberman to step up his oversight of Federal cybersecurity
efforts. On March 5, 2008, Senator Lieberman held a classified
hearing about the little known CNCI, in which DHS has a key
role. ``The cyber threat to our Nation's computer systems is
real and we must take action now to secure our government
systems and vast cyber infrastructure, held largely by the
private sector,'' the Senator said.
On May 2, 2008, Senators Lieberman and Collins drafted a
lengthy letter to Secretary Chertoff seeking detailed
explanations of various aspects of CNCI. They received a ``for
office use only'' response on June 2, 2008, asked for a version
that could be released to the public, and on July 31, 2008,
they released to the public the answers DHS did not redact.
Senator Lieberman also co-sponsored the Federal Information
Security Management Act (FISMA), S. 3474, which was introduced
on September 11, 2008, by Senator Tom Carper, D-DE. It would
have amended FISMA to, among other things, create a Chief
Information Security Officer Council to establish information
security best practices and guidelines; require DHS to conduct
``red team'' penetration tests against civilian agencies based
upon known attacks and vulnerabilities; and help standardize
information security measures. It was subjected to a Senatorial
hold.
G. Border Security and Immigration
Border security and immigration issues gained in currency
as the Senate failed once again to pass massive immigration
reform and DHS struggled to complete the Southern border fence,
allowed two tuberculosis patients to cross the border even
though their medical conditions were known, and tried to
overcome reports of deaths, lack of health care, and poor
living conditions among immigrant detainees.
1. Tuberculosis Investigations--On July 24, 2007, Senators
Lieberman and Collins asked GAO to investigate the
circumstances of how an Atlanta, Georgia, man was able to cross
into the United States over the Canadian border, even though
his medical condition was known to authorities. In a letter to
the GAO, the Senators asked for an assessment of why DHS did
not stop Andrew Speaker from crossing the border. On August 3,
2007, GAO agreed to study the issue, and Senator Clinton joined
in the request.
On October 18, 2007, the media reported another case where
someone with TB flew across the Southern border multiple times.
``Our border security and aviation controls are not working if
this type of breach is allowed to occur over and over again,''
Senator Lieberman said.
On October 30, 2007, Senators Lieberman and Collins wrote
to Secretary Chertoff, seeking clarifications from DHS and the
Department of Health and Human Services about their roles in
the Mexican TB border crossing case, after it was learned that
his medical condition had been relayed to Customs and Border
Protection officials.
On January 24, 2008, Senators Lieberman and Collins wrote
again to Secretary Chertoff, asking for DHS's ``after action
report'' on the TB border crossing cases and certain computer
records relating to the Mexican case.
The GAO released its report in November 2008, finding that
DHS and the Department of Health and Human Services failed to
properly share information and coordinate their efforts.
2. Treatment of Immigrant Detainees--Since 2005, Senator
Lieberman has pushed DHS to improve the Nation's treatment of
asylum seekers and conditions at immigration detention centers,
develop better alternatives to detention, and expand rights to
review of detention decisions by immigration judges
On January 17, 2007, Senator Lieberman warned of potential
widespread mistreatment of immigration detainees in response to
a DHS Inspector General audit of five immigration detention
centers. Less than a month later, on February 8, 2007, the
Senator announced he would introduce legislation requiring DHS
to implement the 2005 recommendations of the U.S. Commission on
International Religious Freedom, to protect asylum seekers from
harsh treatment in the United States. The legislation tracked
an amendment offered in 2006 to an immigration reform bill.
On June 6, 2007, Senator Lieberman won Senate approval of
his amendment to the Comprehensive Immigration Reform Act of
2007, S. 1348. The amendment required recorded interviews with
asylum seekers, accurate translation services, improved
detention conditions for asylum seekers and other detainees,
more alternatives to detention, and better oversight of
detention facilities. The underlying bill, however, failed to
pass the Senate.
On January 15, 2008, after complaining to DHS about the
forced drugging of detainees held for deportation, Immigration
and Customs Enforcement (ICE) made clear it would bar forced
drugging without a court order. Senator Lieberman issued a
statement of commendation.
On May 12, 2008, the Senator announced his intention to re-
introduce the legislation to ensure humane treatment of asylum
seekers and other detained immigrants. Also on May 12, 2008,
Senator Robert Menendez, D-N.J., introduced legislation to
provide basic medical care to immigration detainees. Senator
Lieberman gladly joined on as an original co-sponsor, having
previously introduced similar amendments. The bill was referred
to the Senate Judiciary Committee.
On June 11, 2008, the Secure and Safe Detention and Asylum
Act, S. 3114, was introduced with Senators Sam Brownback, R-
KS., Edward Kennedy, D-MA., and Chuck Hagel, R-NE., The
measure, essentially identical to the 2006 and 2007 amendments,
would have required better detention conditions, including
prompt medical care, unobstructed access to legal counsel,
limits on solitary confinement, and special standards for
families and victims of torture or persecution. The legislation
was referred to the Senate Judiciary Committee.
3. Traveler Inspections--On June 18, 2007, Senator
Lieberman joined Senator Conrad and more than half the Senate
to urge the Secretary of State to take immediate action to
resolve a passport approval backlog that was ruining the summer
travel plans of thousands of Americans.
On November 14, 2007, GAO released a report critical of the
Nation's traveler inspection procedures. Senators Lieberman and
Collins asked DHS for details on steps it was taking to
implement recommendations GAO made in its report, which found
that Customs and Border Protection personnel were inconsistent
in their enforcement of border procedures. The Canadian and
Mexican TB cases vividly illustrated the problems.
On January 28, 2008, Senator Lieberman announced his
approval of DHS's intent to begin requiring proof of
citizenship and identity for all travelers crossing land and
sea borders into this country from Mexico, Canada, and Bermuda.
Previously, an oral declaration of citizenship was sufficient.
On September 16, 2008, Lieberman expressed disappointment
that DHS was moving forward on its Visa Waiver Program, even
though key security precautions required by law for current
participants had not been fully implemented. The comments came
in response to a GAO report that found DHS management problems
with the program, specifically that DHS was not able to fully
assess risks to its electronic travel authorization program,
much less mitigate those risks.
On October 16, 2008, Senator Lieberman told the Associated
Press that the Administration planned on announcing seven new
Visa Waiver member countries before the electronic screening
program, the Electronic Security Travel Authorization (ESTA)
was in effect for current members. The AP produced a story on
the matter that mentioned Senator Lieberman's concerns about
ESTA.
4. Southern Border Initiative--In October 2007, HSGAC staff
visited the Southern border to review the implementation of
SBInet. After the on-site visit, Senators Lieberman, Collins,
and Voinovich wrote Secretary Chertoff on January 31, 2008,
about a series of problems with SBInet--a part of the
Administration's troubled Southern Border Initiative, designed
to keep illegal traffic from entering the country across the
Southern border. SBInet is the technological part of the
program--the surveillance and communications infrastructure.
The Senators expressed concern that the Department had relied
too heavily on contractors to oversee the network and that the
program did not have clear operational requirements.
``Securing our borders is an important homeland security
priority; however, wise use of taxpayer dollars requires that
the SBInet project have clearly defined goals and expectations,
and that the Department provide assurances to Congress that
these investments will result in a system that fully meets
CBP's needs,'' the Senators wrote. ``Therefore, we urge the
Department to provide greater clarify on CBP's operational
objectives for SBInet and the projected milestones and
anticipated costs for the project.''
Subsequently, Committee staff visited Boeing headquarters
in Arlington, VA, to review a SBInet demonstration, and have
been regularly briefed by the Department on challenges faced by
the SBInet program and its limited progress. In response to
these briefings, the Senator has urged appropriators to proceed
with caution in funding the program and demand that additional
expenditures be justified with clear objectives. Additionally,
the Senator has emphasized the importance of fully
understanding associated lifecycle costs.
5. Agricultural Inspectors--On July 10, 2007, Senator
Lieberman and Senator Collins authored a letter to the Senate
Committee on Agriculture, Nutrition, and Forestry stating their
strong objection to using the farm bill to transfer the border
agricultural import inspectors from DHS to the Department of
Agriculture. They ultimately prevented any such measure from
being attached to the legislation, preventing a significant
weakening of the integrated border force and saving several
successful initiatives that have increased the biosecurity of
the Nation. Senator Lieberman continued to push improvement in
the agriculture inspection program by proposing several strong
measures in the DHS authorization bill that would increase
agriculture inspector effectiveness.
H. Transportation Security
1. Rail and Transit Security--The second installment of the
9/11 Commission recommendations bill authorized more than $4
billion over 4 years for rail, transit, and bus security
grants. It also required that rail and transit systems work
with DHS to develop comprehensive risk assessments and security
plans, provided protections for whistleblowers, authorized
additional surface transportation security inspectors and
canine units, required improved information sharing techniques
between Federal, State and local governments, and expanding
rail and transit security training, exercise, and research and
development programs.
2. Port Security--With passage of the second 9/11
Commission recommendations bill, Congress mandated 100 percent
scanning within 5 years of maritime cargo before it is loaded
on ships in foreign ports bound for the United States. Under
the provision, the Secretary of the Department of Homeland
Security may extend the deadline by 2-year increments.
The Committee held a hearing on October 16, 2007, to
examine implementation of the SAFE Port Act a year after
Congress passed and the President signed the bill. The
consensus from witnesses was that the Nation's port security
has improved as a result of the law and programs authorized by
it, such as the Container Security Initiative (CSI) and the
Customs-Trade Partnership Against Terrorism (C-TPAT).
On June 12, 2008, Senators Lieberman and Collins responded
to a DHS report that found 100 percent scanning of cargo would
be possible at smaller ports but cost prohibitive at larger
ports. Senator Lieberman welcomed the initial data the report
provided, urged DHS to continue the pilot program so more
information could be obtained, and has asked the Department to
define the ``high risk'' corridors it next expects to deploy
and test the system in.
3. Aviation Security--The 9/11 Commission recommendations
bill approved in 2007 authorized funding increases for critical
aviation security programs, including $250 million annually for
checkpoint screening, $450 million annually for baggage
screening, and $50 million annually for the next 4 years for
aviation security research and development. The bill also
requires DHS to screen all cargo on passenger airplanes within
3 years.
I. Regulating the Chemical Industry
Senators Lieberman and Collins drafted bipartisan
legislation in the 109th Congress to improve security at
chemical facilities. Although the bill was approved by the
Committee, it failed to reach the Senate floor, and instead, a
bare bones version was approved by Congress as part of the FY
2007 appropriations bill for the Department of Homeland
Security. In the 110th Congress, as the program got underway,
Senator Lieberman actively monitored its progress and worked to
make it as strong as possible.
He voiced serious concerns on February 9, 2007, about
chemical security regulations proposed by DHS. In a letter to
Secretary Chertoff, he took issue with the rules relating to
the use of safer chemicals and technologies, preemption of
State and local laws, and accountability for the security
program. ``The proposed regulations depart from the House and
Senate chemical security bills in some critical respects,'' he
wrote, alluding to the Collins-Lieberman bill and a parallel
House measure from the preceding year.
When the Department announced its final regulations on
April 2, 2007, Senator Lieberman commended the Department for
beginning the process to close a vulnerable security gap but
criticized it for not following Congressional legislation,
especially with respect to preempting tougher State laws
regulating the chemical industry.
On November 2, 2007, when the Department released its
revised list of potentially dangerous chemicals that must be
reported by industry in order to secure chemical facilities,
Senator Lieberman noted the Department was ``moving forward on
critical efforts to secure the Nation's chemical sites. This
new list lays the foundation for the Department to fully assess
the risk to chemical facilities and require appropriate
security improvements. The Department consulted a number of
stakeholders and made adjustments in response to earlier
criticisms.''
Senator Lieberman has also fought for adequate funding for
the new program. In the spring of 2007, he wrote to
appropriators complaining that the Administration's request for
the new chemical security program was ``inadequate'' and
requesting that it be doubled to $50 million--a request
reflected in the final appropriation. In February 2008, Senator
Lieberman learned that the Administration requested a $13
million increase for chemical security in its FY 2009 budget.
He supported that request in his annual letter to the Senate
Budget Committee Chairman and Ranking Member. ``The program is
getting underway and is badly in need of increases resources to
ensure adequate inspectors and other capabilities,'' he wrote.
J. Securing Against IEDs
Senator Lieberman joined with Senator Collins on November
1, 2007, to introduce legislation to strengthen Federal
preparations for the threat of improvised explosive device
(IED) attacks. The legislation--the National Bombing Prevention
Act of 2007, S. 2292--would improve DHS's ability to prepare
State and local government officials, emergency responders, and
the private sector to prevent against, detect, and respond to
terrorist explosive attacks by codifying the DHS Office of
Bombing Prevention, providing additional resources for it, and
requiring the Administration to produce a long-delayed National
Strategy for Bombing Prevention. A recent National Intelligence
Estimate identified IEDs as a significant homeland security
threat and Senator Lieberman said an IED ``is relatively easy
and inexpensive to make and can cause mass casualties, even to
armored military personnel. They are a global threat, and the
American public here at home is not immune.''
The Committee favorably reported out the measure on
November 14, 2007, but it was blocked on the floor by a hold
from Senator Tom Coburn, R-OK. The bill remained blocked by
Senator Coburn for the duration of 2008. K. Information Sharing
On May 1, 2007, Senators Lieberman and Collins wrote to DHS
Secretary Chertoff and others expressing concerns over the
Federal Government's failure to adopt government-wide
procedures for designating and sharing ``Sensitive But
Unclassified (SBU)'' information within and among all levels of
government. They requested that the Administration quickly
adopt and implement a consistent set of procedures for agencies
to follow when handling SBU information.
On April 17, 2008, the Senators wrote to President Bush
encouraging him to implement draft SBU policies that had been
developed at the interagency level. On May 7, 2008, in part as
a result of the Senators' letter, the President issues a
memorandum that set forth new guidelines for the marking,
handling, and dissemination of Controlled Unclassified
Information (CUI).
Title V of the 9/11 Commission Recommendations Act included
a number of provisions to strengthen terrorism-related
information-sharing. The bill extended the authorization and
strengthened the authorities of the Program Manager for the
Information Sharing Environment, who has played a critical role
in strengthening information sharing since 2004. The bill also
established the State and Local Fusion Center Program at DHS to
improve the Department's support of fusion centers and ensure
that privacy and civil liberties are adequately protected in
their operations. The bill also codified the new Interagency
Threat Assessment Coordination Group (ITACG), a part of the
NCTC intended to improve dissemination of intelligence to State
and local stakeholders and ensure that intelligence products
are written in a way that considers State and local needs.
On July 23, 2008, the Committee held a hearing to assess
the progress the government was making to share information
among Federal agencies and State and local officials. The GAO
released a report in tandem with the hearing that found that
despite some progress, goals and milestones for information
sharing remained unidentified as did a way to measure the goals
and milestones. L. Miscellaneous
1. GAO's High-Risk List--In 2007, for the third time in a
row, the GAO placed DHS on its high-risk list of government
agencies in danger of mismanagement, fraud, waste, and abuse.
Senators Lieberman and Collins held a press conference with GAO
Comptroller General David Walker on January 31, 2007, during
which General Walker singled out DHS's protection of Federal
information systems and the Nation's critical infrastructures
and the establishment of effective information sharing systems
as areas in need of urgent attention.
Senator Lieberman acknowledged that coalescing 22 agencies
and programs, and 180,000 employees into the Department would
take some time. ``We will continue to work to transform DHS
into a first-class Department with a special emphasis on
information sharing and other areas on the GAO high-risk
list.''
On September 6, 2007, GAO released a status report on the
progress the Department has made toward achieving some of its
mission goals since it was established in 2003. The verdict:
Significant progress had been made to improve maritime
security. Only moderate progress has been made in aviation
security and critical infrastructure protection. And DHS has
failed in establishing a comprehensive strategy for an agency
wide transformation. The report also said DHS has not
adequately involved the private sector in preventing potential
attacks and its emergency preparedness and response
capabilities are not yet sufficient for responding to man-made
or natural disasters.
Senator Lieberman said: ``This report confirms what many of
us have believed: First, that the Department has made important
progress establishing programs and procedures that make us
safer today than we were before the September 11, 2001,
attacks. And second, that there are also serious deficiencies
at the Department that require more focused attention and
resources than they have received to date. My observation,
confirmed by DHS and GAO is that the Department is doing a
better job in fulfilling its missions than it is in managing
its internal operations.''
2. Closed Circuit Television--Senator Lieberman
successfully offered an amendment to the FY 2008 Department of
Homeland Security appropriations bill that would require DHS to
develop a national strategy for Closed Circuit TVs (CCTV) to
guide the Department, as well as State and local governments,
toward more effective and appropriate use of CCTV. The Senator
said ``a national strategy for CCTV use would help officials at
the Federal, State, and local levels use CCTV systems
effectively to protect citizens, while at the same time making
sure that appropriate civil liberties protections are
implemented for the use of cameras and recorded data.
3. Campus Security--A week after the April 16, 2007,
massacre of 32 people on the campus of Virginia Tech, Senator
Lieberman called a hearing on April 23, 2007, to examine campus
security. The hearing was intended to answer questions about
the security of college campuses around the country and what
could be done to make them more secure. It was not intended in
any way to examine the job performance of Virginia Tech
administration and security officials. Witnesses at the
hearing, entitled ``Security on America's College Campuses,''
included administrators, campus public safety officials, and
mental health counselors. All cited measures being implemented
to protect those who live, work, and study on college campuses
but reported that campus counseling is stretched thin and will
require additional resources to adequately serve large
university populations. They also stressed the need for greater
coordination between campus agencies and Federal, State, and
local law enforcement to enable swift, effective responses as
problems arise.
4. Homeland Security Academy--On June 15, 2007, Senator
Lieberman applauded the opening of the Homeland Security
Academy in Shepherdstown, WV. Established under the auspices of
DHS, the academy had been advocated by the Senator since the
Department was first created, and was authorized in legislation
drafted by the Senator and accepted as part of the 2007 DHS
appropriations bill.
5. Federal Protective Service--On February 28, 2007,
Senator Lieberman and three other Members of the Committee sent
a letter to Comptroller General David Walker asking him to
conduct a comprehensive review of the Federal Protective
Service (FPS), which protects Federal buildings, including its
ability to help defend against the threat of terrorism under
current funding levels. On June 19, 2008, the Subcommittee held
a hearing to examine the results of GAO's first report of
several on the FPS and its ability to protect Federal employees
and property.
House Delegate Eleanor Holmes Norton drafted The Federal
Protective Service guard Contracting Reform Act of 2007, H.R.
3068, to prevent FPS from awarding contracts for guard services
to companies owned, controlled, or operated by individuals
convicted of serious felonies who may present a risk to the
security of Federal employees and Federal property. The House
passed the bill on October 2, 2007.
At a July 30, 2008, mark up, Senator Lieberman offered an
amendment in the nature of a substitute that directed DHS to
develop regulations identifying which serious felonies would
prohibit a business from being awarded a contract and giving
the DHS Secretary flexibility to consider permanent or interim
prohibitions, or both, as necessary. The Committee adopted
Senator Lieberman's substitute and on September 23, 2008, the
Senate passed the Federal Protective Service Guard Contracting
Reform Act of 2008, by unanimous consent. On September 28,
2008, the House agreed to the Senate amendment, and the bill
was signed into law on October 8, 2008.
CONTRACTING REFORM
Given the more than $400 billion spent on Federal
acquisitions annually and the decreasing size of the
acquisition workforce, the government's record of clear
contracts and stringent oversight left much to be desired. The
Senator held a number of hearings and passed legislation to
improve the accountability and transparency of the procurement
process. In particular, since the start of U.S. operations in
Afghanistan and Iraq, Senator Lieberman has pushed for greater
oversight of reconstruction contracts, and he has been a
vigilant overseer of DHS contracts since the Department was
established.
A. Wartime Contracting and DCAA
On March 22, 2007, the Committee held a hearing on a report
released by the Special Inspector General for Iraqi
Reconstruction (SIGIR) and pushed for better coordination among
government agencies involved in reconstruction. The hearing
provided a platform for the Senator to advance legislation
Senator Collins introduced, and he co-sponsored, called the
Accountability in Government Contracting Act, S. 680, to inject
more competition and transparency into the Federal contracting
process.
A number of violent incidents involving private security
contractors in Iraq and Afghanistan called into question the
U.S. Government's increasing reliance on private companies to
perform security functions. Following an investigation by
Committee staff, on February 27, 2008, Senator Lieberman called
to order a hearing on the role of private security contractors
and the regulatory regime governing them. He called on the
Departments of State and Defense to devise a comprehensive
framework for the hiring, training, vetting, and oversight of
private security contractors in foreign theaters.
On November 1, 2007, Senator Lieberman responded to an
independent commission report on failures of Army contracting
in Iraq and Afghanistan. The lessons learned from the report
``could be applied across the Federal Government,'' Senator
Lieberman said. ``The number of personnel we have to plan,
negotiate, and oversee contracts has dwindled while the dollars
spent on contracts have skyrocketed.''
Strengthening the Federal acquisition workforce, therefore,
has been a centerpiece of Senator Lieberman's efforts to
improve Federal contracting.
The GAO released a report on March 26, 2008, that found 42
percent of contract specialists at the Army's Contracting
Center for Excellence were contractors. The Center was
responsible for awarding $1.8 billion in contracts in FY 2007.
Senator Lieberman issued a response calling for the immediate
overhaul of Federal ethics policies to ensure that conflicts of
interest don't impair the impartiality of contractors or their
employees.
He then authored an amendment, signed into law as part of
the FY 2009 Defense Authorization Act, requiring stricter
government-wide conflict-of-interest rules for contractors who
are hired to assist Federal agencies with their procurements.
GAO produced another report on July 23, 2008, on the
Defense Contracting Audit Agency (DCAA) that substantiated
whistleblower allegations that, at certain DCAA offices,
auditors' conclusions were overruled by supervisors without
adequate supporting evidence and that auditors came under
pressure from supervisors to change audit conclusions to
benefit contractors. ``This shows a blatant disregard for the
safeguards that are supposed to be in place to ensure that
contractors charge the government no more than a fair and
reasonable price,'' Senator Lieberman said.
The Committee held a hearing on September 10, 2008, to
review the GAO report on the DCAA and to hear from the
whistleblowers about audit manipulation by supervisors. Senator
Lieberman concluded that DCAA was ``obsessed with the speed of
process rather than the accuracy of the results.''
As a result of the hearing, DCAA has undertaken a number of
reforms, including an overhaul of its performance measures.
Also, at the request of Senators Lieberman and Collins, GAO is
conducting a broader review of DCAA auditing practices and is
expected to report to the Committee late in 2008.
B. Contracting Process and S. 680
On July 17, 2007, the Committee held a hearing on ways to
strengthen accountability and competition in the Federal
contracting process. Senator Lieberman said: ``A successful
system for buying goods and services is more than just
selecting the right vendor and signing a contract. It requires
careful planning and negotiation before the contract is signed,
followed by rigorous oversight through the life of the
contract. With billions and billions of dollars of the
taxpayers' money at stake, both the government and contractors
have a responsibility to do a better job than they are now to
see that the taxpayers are getting their money's worth.''
On August 1, 2007, the Committee marked up and reported out
S. 680 to combat waste, fraud, and abuse in Federal
contracting.
On November 8, 2007, the Senate unanimously approved S. 680
and, in early 2008, several provisions of the bill were signed
into law as part of the FY 2008 National Defense Authorization
Act. Key provisions required greater competition by limiting
the circumstances under which agencies can award large sole
source contracts, allowing protests of task orders exceeding
$10 million (in other words, orders placed against existing
contracts), and providing broader notice and debriefings for
task and delivery orders exceeding $5 million. In addition, in
order to bring greater focus to needed improvements in the
acquisition workforce, the bill created a new position of
Associate Administrator for Acquisition Workforce Programs
within the Office of Federal Procurement Policy.
Additional provisions of S. 680 were signed into law on
October 18, 2008 as part of the FY 2009 National Defense
Authorization Act. These reforms include provisions to: Create
a Contingency Contracting Corps to ensure that emergency
contracting in response to disasters or in support of military
operations is performed swiftly, effectively, and efficiently;
require greater competition of task and delivery orders; limit
to 1 year the duration of any non-competitive contract;
regulate use of cost-reimbursement contracts that expose the
government to greater financial risk than fixed-priced
contracts; link contractor award fees to outcomes so that
contractors are not rewarded for poor work; limit tiering of
subcontracts that allow contractors to charge the government
while merely passing work along to layers of subcontractors;
and require the Office of Federal Procurement Policy to prepare
a long-term plan for increasing the size of the Federal
acquisition workforce.
C. DHS Contracting
In addition to digging into the details of major DHS
procurements such as SBInet and ASP's, the Committee continued
its oversight of broader trends in DHS acquisition. On October
17, 2007, the Committee held its third contracting hearing of
the year, this time on the overreliance of DHS on contractors
to do ``inherently governmental'' work. A GAO report requested
by the Committee and released at the hearing found that DHS had
not revisited it original justification for relying on
contractors--the need to stand the Department up quickly--and
has not conducted a comprehensive assessment of the appropriate
mix of Federal employees and contractors.
On May 8, 2008, the GAO again found significant
shortcomings in DHS acquisition practices, saying that four out
of eight major investments at DHS lacked measurable performance
standards or well defined requirements. ``The lesson is
simple,'' Lieberman said. ``Know what you want to buy before
you buy it and have a plan in place to measure the contractor's
performance.''
In response to these problems, Senator Lieberman's proposed
DHS authorization bill would strengthen departmental oversight
of contracts and strengthen the investment review board process
for major investments
LOBBYING AND ETHICS REFORM
Continuing the leadership role he played in the 109th
Congress, Senator Lieberman and HSGAC helped shepherd lobbying
disclosure and ethics reform legislation, S. 1, through the
Senate in 2007. As the Rules Committee crafted parts of the
legislation having to do with internal Senate regulations,
HSGAC worked on the portions pertaining to lobbyists and
outside groups. Key provisions within HSGAC jurisdiction: Slow
the ``revolving door'' between Congress and K Street by
tightening post-employment restrictions on former Senators and
senior staff; require quarterly and electronic filing of
lobbying disclosure reports by lobbyists; require new
disclosures on lobbying disclosure forms of lobbyist campaign
contributions and other payments to honor Members of Congress
and Executive Branch officials; increase civil and criminal
penalties for knowing violations of the Lobbying Disclosure
Act; and deny Congressional retirement benefits to Members of
Congress who are convicted of bribery, perjury, or similar
crimes. As a floor manager of the bill, Senator Lieberman also
lent support to other key provisions of the bill, such as those
to: Ban lobbyists and their clients from giving gifts to
Senators and their staff; require Senators and their staff to
pay full charter fare for use of private jets (rather than the
equivalent of a first-class ticket); ban lobbyists and their
private-sector clients from paying for multi-day travel for
Senators and staff; require disclosure under campaign finance
laws of lobbyists who bundle campaign contributions; and
require, for the first time, that sponsors of earmarks be
identified within legislation.
On January 9, 2007, the Senator helped launch the opening
of Senate debate on the matter, saying the legislation would
hold lobbyists and Members of Congress more accountable to the
public and would help restore the public's confidence in
Congress following the scandals involving lobbyist Jack
Abramoff.
The Senate passed the measure 10 days later on January 19,
2007. Lieberman praised the move, although he expressed
disappointment that the Senate rejected an amendment he offered
with Senators John McCain, R-AZ, Barack Obama, D-IL, and
Collins for an independent Office of Public Integrity to help
enforce Senate ethics rules.
On July 30, 2007, the House and Senate reached agreement on
the bill, now called the Honest Leadership and Open Government
Act, S. 1. The Senate passed the conference report on August 2,
2007, and the President signed it into law on September 14,
2007.
On April 11, 2008, Senator Lieberman greeted news that U.S.
District Court for the District of Columbia rejected a
challenge by the National Association of Manufacturers to a
provision in the Honest Leadership and Open Government Act
regarding transparency of coalitions and associations that
lobby Congress.
On March 12, 2008, Senator Lieberman commended House
Speaker Nancy Pelosi for enacting a new independent system for
initiating investigations into potential violations of House
ethics rules, similar to an amendment Senator Lieberman offered
unsuccessfully in the Senate to create an Office of Public
Integrity.
INSPECTOR GENERAL REFORM
Senator Lieberman began working with Senators Collins and
Claire McCaskill, D-MO., in 2007 to draft and pass legislation
to strengthen the Federal Government's corps of Inspectors
General (IGs). On July 11, 2007, Senators Lieberman and Collins
convened a hearing on the need for reform and called for
legislation to strengthen the independence and accountability
of IGs based on the testimony they heard, which included
concerns that some IGs had been retaliated against by agency
heads for critical investigations while others lacked
appropriate independence from their agency heads.
On November 8, 2007, the three Senators plus Senator Tom
Coburn introduced the Inspector General Reform Act of 2007, S.
2324, to build upon the strong tradition of inspectors general
by guaranteeing that qualified individuals are appointed, that
they remain independent of pressure or influences from the
agencies they investigate and that IG reports be made more
accessible to the public. A week later, on November 14, 2007,
the Committee marked up and reported out the legislation. On
April 24, 2008, the Senate passed the legislation, which would
require that Congress be notified of any proposal to remove an
IG within 30 days; that a Council on Integrity and Efficiency
for Inspectors General be established; that all IG audits be
posted on publicly accessible Websites within 3 days of
issuance; and, among other things, that the President's budget
proposal show how much money is requested for each IG office
and the funding level requested by that office.
Senator Lieberman and the other lead sponsors worked with
the House to reconcile the Senate-passed bill with a comparable
House measure (H.R. 928). Final Senate passage came on
September 24, 2008, by unanimous consent, with a unanimous
House vote coming 3 days later. The legislation was signed into
law on October 14, 2008 (P.L. 110-409).
COMMODITIES SPECULATION
As food and fuel prices soared during the first part of
2008 and consumers felt the pinch, Senator Lieberman called for
a series of hearings to investigate the unprecedented level of
cost increases of these commodities. A hearing held on May 7,
2008, looked at the impact that fuel subsidies might have on
food supply and prices. Witnesses explained that food prices
had increased dramatically for many reasons, including higher
demand in developing countries, higher energy costs, and
drought in food producing countries like Australia and the
Ukraine. The increased demand for corn-based ethanol was also
identified as a factor and one that could be addressed through
revised government policy.
The Committee held a second hearing on May 20, 2008, about
the impact of financial speculation by institutional investors
and hedge funds in the commodity markets as a factor in rising
food and fuel costs. Potential solutions were discussed at the
hearing, including barring certain institutional investors such
as pension funds, from investing in commodity markets through
the use of index funds and closing the so-called swaps loophole
that allows large investors to sidestep limits on excessive
speculative activity in the commodity markets.
On June 18, 2008, Senators Lieberman and Collins held a
press conference to unveil three proposals to help curb
escalating commodity prices and posted the proposals on the
Committee Website for public comment. The proposals, based on
testimony from the previous two hearings, would have prohibited
certain large pension funds and governmental entities from
investing in commodities; or would have capped the amount of
overall market share in any one commodity that could be held by
financial speculators; or would close the swaps loophole.
On June 24, 2008, the Committee held its third hearing,
this time to hear testimony from financial experts about the
legislative proposals. Across the board, witnesses endorsed the
proposal to close the swaps loophole and expressed various
degrees of skepticism about the other two proposals.
On July 11, 2008, Senators Lieberman, Collins, and
Cantwell, D-WA., introduced the Commodity Speculation Reform
Act of 2008, S. 3248. The legislation would have closed the
swaps loophole, required the Commodity Futures Trading
Commission (CFTC) to consider the effect of speculation when
setting position limits, extend existing rules that apply to
regulated exchanges to unregulated over the counter and foreign
markets, direct the CFTC to set speculative position limits
rather than letting them be set by the futures exchanges, and
remedy CFTC staffing shortfalls.
Financier T. Boone Pickens was the star witness at the
Committee's fourth and final hearing on the subject of the high
cost of food and fuel. The July 22, 2008, hearing focused on
how the Nation could improve its energy security by reducing
the amount of oil used by the transportation sector and the
effect reduced oil consumption would have on process and
pollution.
DISTRICT OF COLUMBIA
A. Voting Rights
The 110th Congress saw Senator Lieberman renew efforts he
began in 2001 to provide voting rights to the citizens of the
District of Columbia. A new strategy was developed by Rep. Tom
Davis, R-VA., and Delegate Eleanor Holmes Norton to concentrate
on voting rights in the House of Representatives for District
residents, paired with the addition of another representative
for the State of Utah, in keeping with updated census numbers.
On April 16, 2007, Senator Lieberman introduced such
legislation with Senators Orrin Hatch and Bob Bennett, both
Utah Republicans. The District of Columbia House Voting Rights
Act of 2007, S. 1257, would have righted an historic wrong by
giving voting rights to citizens who ``pay taxes and die for
the Nation's democracy like other voting citizens.'' The bill
also would have added a fourth congressional district for Utah,
based upon 2000 census data.
On May 15, 2007, the Senator called a hearing before the
Committee and heard arguments from both Republicans and
Democrats for granting voting rights to D.C. residents.
Witnesses included D.C. Mayor Adrian Fenty, Rep. Davis, and
Delegate Norton. Senator Collins expressed her support for the
bill calling it a ``matter of fundamental fairness.'' On June
13, 2007, the Committee favorable reported the measure out of
Committee on a bipartisan vote of 9-1.
Despite Senator Lieberman's optimism for the bill, it
failed to win the necessary 60 votes to overcome a filibuster
on September 18, 2007, falling three votes shy with a 57-42
tally. The Senator vowed to continue to work to gain the
necessary three votes.
B. Courts
Senator Lieberman worked to secure passage of two bills to
assist with the smooth and proper functioning of the District
of Columbia court system, which, since enactment of the
National Capital Revitalization and Self-Government Improvement
Act of 1997, has been under Federal jurisdiction.
The first of these bills, S. 550, was cosponsored by
Senator Lieberman and was intended to preserve existing
judgeships on the D.C. Superior Court that were inadvertently
affected by the District of Columbia Family Court Act of 2001.
The District of Columbia Family Court Act had the effect of
permitting an increase in the number of judges serving on the
Family Court division of the D.C. Superior Court. At the same
time, the Family Court Act failed to adjust the ceiling on the
overall number of judges who could serve on the Superior Court,
effectively reducing the number of judges in non-Family Court
assignments. S. 550 corrected this problem by increasing the
overall number of associate judges on the Superior Court from
58 to 61. It was signed into law on April 18, 2008 (P.L. 110-
201).
The second bill, H.R. 5551, authorized an increase in the
hourly compensation for private attorneys appointed to
represent indigent criminal defendants in the D.C. Superior
Court and the D.C. Court of Appeals and increase the maximum
total compensation such attorneys can receive for each case.
This was the first time compensation amounts had been increased
since 2002. The funds to support the increased rates had been
appropriated in the 2008 D.C. Appropriations Act but could not
be used without the corresponding changes in the D.C. Code
enacted by H.R. 5551. H.R. 5551 became law on October 2, 2008
(P.L. 110-335).
E-GOVERNMENT
Senator Lieberman introduced the E-Government Act of 2007,
S. 2321, on November 7, 2007, to renew for another 5 years the
original 2002 legislation aimed at improving the government's
use of information technology to collaborate and interact with
the public. On November 14, 2007, the Act was marked up and
passed out of Committee but the Senate never acted. It was
marked up and reported out again September 16, 2008, but was
the object of a Senatorial hold.
The next month, the Committee held a hearing on December
11, 2007, on ways for the Federal Government to provide greater
accessibility to, transparency of, and interactivity with
Federal services and information. Leading public and private
sector witnesses, including Wikipedia founder Jimmy Wales,
testified to the challenges of making Federal Government
information more accessible, transparent, and interactive.
PROTECTING FEDERAL EMPLOYEES
A. Domestic Partners
On December 19, 2007, Senators Lieberman, Gordon Smith, R-
Ore., and 20 co-sponsors introduced legislation to extend
domestic partner benefits to Federal employees. More than half
of Fortune 500 companies and almost 10,000 others, provide
benefits to domestic partners. So do hundreds of State and
local governments--including Connecticut and Oregon--and scores
of colleges and universities. ``It's time for the Federal
Government to catch up to the private sector, not just to set
an example but so that it can compete for the most qualified
employees and ensure that all of our public servants receive
fair and equitable treatment,'' the Senator said. ``It makes
good economic and policy sense. And it is the right thing to
do.''
On September 24, 2008, Senator Lieberman held the first
hearing ever on domestic partner benefits for Federal employees
to discuss the Domestic Partnership Benefits and Obligations
Act of 2007, S. 2521. Although time had run out in the 110th
Congress to pass the bill, Senator Lieberman vowed to pursue it
in the 111th Congress.
B. Employee Rights
1. Transportation Security Administration Employee Rights--
Since the establishment of the Department of Homeland Security,
Senator Lieberman has fought vigorously for the rights of DHS
employees. Ever since Transportation Security Administration's
(TSAs) screeners were denied their collective bargaining rights
and other employee protections, Senator Lieberman has worked to
restore them.
On February 15, 2008, HSGAC marked up the second 9/11
Commission recommendations bill. An amendment offered by
Senator Lieberman to revise TSA's management practices to
provide TSA screeners with the same rights and protections as
other TSA or homeland security personnel was accepted by the
full Committee.
On the floor of the Senate, Senator Lieberman and others
successfully defended the Lieberman provision against attempts
to strike or weaken it, but, unfortunately, the provision was
dropped in conference.
2. DHS Employee Rights--On February 19, 2008, Senator
Lieberman hailed the end of a long fight over DHS employee
rights with a victory for the employees. After the creation of
the Department, DHS had tried to deny employees collective
bargaining rights because it said their work was national
security related. The National Treasury Employees Union had
filed suit against the Department in 2002. Senator Lieberman's
statement came as DHS announced its decision to drop its legal
efforts to revise its labor regulations.
3. DHS Employee Praise--On March 5, 2008, during the fifth
anniversary week of the establishment of the Department,
Senators Lieberman and Collins introduced a resolution saluting
the Department's 208,000 employees for their ``sacrifices and
commitment'' and expressing the Nation's appreciation for their
work.
4. GAO Employee Pay and Benefits--In January 2008, Senator
Lieberman introduced the Government Accountability Office Act
of 2007, S. 2564, to improve statutes governing GAO's
authorities and operations in a number of ways. On June 25,
2008, the Committee considered a modified version of the bill,
H.R. 5683, which focused on resolving a long-standing dispute
between GAO and many of its employees over pay and benefits.
Senator Lieberman worked to achieve an acceptable compromise
that would adequately protect GAO employees, and such
legislation was enacted on September 22, 2008.
WORKING FOR CONNECTICUT
Senator Lieberman's chief work on behalf of Connecticut--as
Chairman of the Committee--revolved around ensuring Connecticut
was given fair consideration in the quest for sufficient
homeland security funding to protect its long coastline, its
critical infrastructure, particularly its transportation
network and nuclear power plant, and to train and equip
Connecticut first responders in the event they were needed
again to help New York recover from a terrorist attack. His
efforts to establish a fair homeland security grant funding
formula and to establish that formula into law served the State
well. Connecticut secured $39.9 million in homeland security
grants in 2007, which included a one time only $13 million
grant for interoperability; and $33.9 million, so far, in 2008.
(Additional FY 2008 grants through the Assistance to
Firefighters Grants program are still anticipated). The
Department recently announced tentative 2009 homeland security
grants to Connecticut from several different programs totaling
approximately $25 million. Important additional grant funding--
including transit security and fire grants--will be announced
at a later date.
A. Port, Transit Security Grants
Senator Lieberman worked to secure millions of dollars in
port and transit security grants to Connecticut, which has a
long coastline bordering the Long Island Sound and a major
commuter rail line, Metro North, for commuters into the New
York area. On May 10, 2007, he and Senator Dodd announced $1.3
million in port and transit security funds from the
Infrastructure Protection Program for Bridgeport, New Haven,
and New London. On August 17, 2007, he announced another $2
million in grants for ports in New London, Bridgeport, and New
Haven. On November 5, 2008, he announced that those ports would
receive $4.3 million in 2009.
B. Urban Area Security Initiative Grants
Urban Area Security Initiative (UASI) grants provide
funding to the Nation's highest risk metropolitan areas. In
drafting the 9/11 Commission Recommendations Act, Senator
Lieberman sought to ensure that each of the Nation's 100
largest metropolitan areas would have an opportunity to provide
relevant information to DHS about the terrorism risks they
faced and that DHS would have to consider relevant risk factors
such as population density and coastlines. Using these new
procedures, in FY 2008 DHS for the first time awarded UASI
grants to the Hartford and Bridgeport metropolitan areas--the
first time a Connecticut city had received UASI funding since a
grant to New Haven in 2004. The East and West Hartford region
was awarded $1.997 million and the Bridgeport-Stamford-Norwalk
region was awarded $1.967 million in FY 2008. DHS recently
announced that both areas will receive UASI grants again in FY
2009 and that the amounts of both grants will be increased: The
Hartford metropolitan area is slated to receive $2.7 million
and the Bridgeport Region to receive $2.8 million.
C. General Homeland Security, Disaster Aid
On July 18, 2007, Senator Lieberman announced that
Connecticut would receive more in FY 2007 homeland security
grants than it did in FY 2006, and he announced a one-time
grant of $13 million for interoperable communications.
On June 13, 2008, he announced Connecticut would receive
disaster aid for five Connecticut counties hit hard by storm
flooding that had previously been turned down for FEMA aid.
D. Immigration
On June 11, 2007, Senators Lieberman and Christopher Dodd
and Rep. Chris Shays asked Secretary Michael Chertoff for
clarification about the timing of and way in which an
immigration raid in New Haven was conducted. Witnesses
suggested that violations of protocol may have occurred and the
raid came the day after the New Haven Board of Aldermen
approved a city identification card available for all
residents, including undocumented immigrants.
MISCELLANEOUS
A. Bipartisanship
The first session of the 110th Congress witnessed a
personal change in Senator Lieberman's self identification as a
Democrat. Following a difficult 2006 election in which he lost
the Democratic primary but was re-elected in November under an
independent banner, he changed his party affiliation to
Independent-Democrat.
In part because of the Senator's new status and in part to
express his commitment to bipartisanship, he and Senator
Collins announced a new dais seating arrangement whereby
Democrats and Republicans would alternate seats, rather than be
separated on opposite sides of the dais. Senator McCaskill
offhandedly suggested the idea, and the Chairman and Ranking
Member happily implemented it.
``In the last election, the voters said they were sick of
the partisanship that produces gridlock,'' Senators Lieberman
and Collins said in a joint statement on March 9, 2007. ``They
want us to work together and get things done. So, as a start,
instead of sitting on opposite sides of the room like a house
divided, we want the American people to see us sitting side by
side as our Committee Members work together to make our Nation
more secure and our government more efficient.''
B. New Subcommittees
Senator Lieberman used his power as Committee Chairman to
expand the Committee by establishing and funding two new ad hoc
subcommittees--one called Disaster Recovery led by Senator Mary
Landrieu and the other called State, Local, and Private Sector
Preparedness and Integration, led by Senator Mark Pryor.
C. CRS Reports
On December 11, 2007, Senators Lieberman, John McCain,
Collins, John Cornyn, Russ Feingold, Tom Harkin, Patrick Leahy,
Dick Lugar, and Claire McCaskill introduced S. Res. 401, a
resolution to provide wider public access to valuable
Congressional Research Service (CRS) reports. It was referred
to the Rules Committee. Although Rules did not pass the
resolution, it requested that CRS begin a pilot to
automatically place these reports on Members' Websites. On
February 28, 2008, in a letter to Rules Committee Chairman
Dianne Feinstein, D-CA., Lieberman asked the Rules Committee to
implement a pilot program, along the lines of S. Res. 401,
guaranteeing full access. ``Unfortunately, Congress and CRS'
policies have severely limited the public's ability to read
these unclassified reports,'' the Senator wrote. The Rules
Committee measure was in the process of being implemented.
D. Presidential Records
On June 20, 2007, the Committee considered and reported out
H.R. 1255/S. 886 the Presidential Records Act Amendments of
2007. Senator Lieberman was a cosponsor of S. 886. This bill
repealed a 2001 Executive Order that undermined the
Presidential Records Act of 1978, creating new obstacles for
the timely release of Presidential Records after the conclusion
of a presidency. These new authorities included the expansion
of executive privilege to allow a former President's designees
and descendents to prevent the release of these records
altogether. In addition to repealing the Executive Order, the
bill created a new process to ensure that the intent of the
Presidential Records Act would be met. The White House opposed
the bill, and efforts to reach a compromise were unsuccessful.
Senator Jim Bunning initially put a hold on the legislation,
followed by Senator Jeff Sessions.
Senator Lieberman lobbied to get the bill passed. These
efforts included press releases and statements given to the
press, as well as an oped written by the Senator and published
in The Dallas Morning News that also discussed the Presidential
Library Donation Reform Act.
E. Presidential Library Donations
The Committee has worked to pass H.R. 1254, the
Presidential Library Donation Reform Act of 2007, a major
reform bill that would require disclosure of donations to
presidential libraries. There are now no requirements for these
donations to be reported except in limited cases. On August 1,
2007, the Committee passed the legislation, by Senator
Lieberman with a substitute amendment to address concerns of
Committee Members--creating different disclosure requirements
for sitting presidents and former presidents. Despite these
changes, the bill faced a hold on the floor by Senator Stevens,
who wanted the bill only to apply to future presidents. The
Committee continued to revise the bill to close potential
loopholes and further reduce the reporting the requirements for
former presidents. The Committee attempted to pass the bill
with a new substitute amendment on July 31, 2007, but Senator
Stevens continued to object to Unanimous Consent passage.
F. GAO
On March 21, 2007, the Committee held a hearing to examine
GAO's needs to meet the growing demand for examinations into
how the Federal Government can become more effective and save
taxpayers money. ``We depend heavily on GAO,'' Senator
Lieberman said. ``In the last 12 months alone, we've received
over 200 reports from the office.''
G. Privacy
On May 6, 2007, Senators Lieberman reacted to the theft of
a TSA hard drive containing personal information of current and
past employees. ``We have witnessed far too many incidents over
the past few years in which Federal employees or American
citizens are subjected to potential identity theft because of
the negligence of government agencies.'' He called for
improvements in Federal privacy protections, and staff began
consideration of new privacy legislation.
On June 18, 2008, Senator Lieberman and Collins responded
to a GAO report noting weaknesses in Federal privacy policy,
relating to the protection of personal information that becomes
part of government databases. Senator Lieberman, who originally
requested the report, said that Federal privacy policy must be
updated for the digital age to protect the growing amount of
personally identifiable information the government collects,
uses, and stores.
II. COMMITTEE JURISDICTION
The jurisdiction of the Committee (which was renamed the
Committee on Homeland Security and Governmental Affairs when
the 109th Congress convened) derives from the Rules of the
Senate and from Senate Resolutions:
RULE XXV
* * * * * * * *
(k)(1) Committee on Governmental Affairs, to which
committee shall be referred all proposed legislation, messages,
petitions, memorials, and other matters relating to the
following subjects:
1. Archives of the United States.
2. Budget and accounting measures, other than
appropriations, except as provided in the Congressional Budget
Act of 1974.
3. Census and collection of statistics, including economic
and social statistics.
4. Congressional organization, except for any part of the
matter that amends the rules or orders of the Senate.
5. Federal Civil Service.
6. Government information.
7. Intergovernmental relations.
8. Municipal affairs of the District of Columbia, except
appropriations therefore.
9. Organization and management of United States nuclear
export policy.
10. Organization and reorganization of the executive branch
of the Government.
11. Postal Service.
12. Status of officers and employees of the United States,
including their classification, compensation, and benefits.
(2) Such committee shall have the duty of----
(A) receiving and examining reports of the Comptroller
General of the United States and of submitting such
recommendations to the Senate as it deems necessary or
desirable in connection with the subject matter of such
reports;
(B) studying the efficiency, economy, and effectiveness of
all agencies and departments of the Government;
(C) evaluating the effects of laws enacted to reorganize
the legislative and executive branches of the Government; and
(D) studying the intergovernmental relationships between
the United States and the States and municipalities, and
between the United States and international organizations of
which the United States is a member.
SENATE RESOLUTION 89, 110TH CONGRESS
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS.
Sec. 11. (a) * * *
* * * * * * * *
(e) INVESTIGATIONS----
(1) In General--The committee, or any duly authorized
subcommittee of the committee, is authorized to study or
investigate----
(A) the efficiency and economy of operations of all
branches of the Government including the possible existence of
fraud, misfeasance, malfeasance, collusion, mismanagement,
incompetence, corruption, or unethical practices, waste,
extravagance, conflicts of interest, and the improper
expenditure of Government funds in transactions, contracts, and
activities of the Government or of Government officials and
employees and any and all such improper practices between
Government personnel and corporations, individuals, companies,
or persons affiliated therewith, doing business with the
Government; and the compliance or noncompliance of such
corporations, companies, or individuals or other entities with
the rules, regulations, and laws governing the various
governmental agencies and its relationships with the public;
(B) the extent to which criminal or other improper
practices or activities are, or have been, engaged in the field
of labor-management relations or in groups or organizations of
employees or employers, to the detriment of interests of the
public, employers, or employees, and to determine whether any
changes are required in the laws of the United States in order
to protect such interests against the occurrence of such
practices or activities;
(C) organized criminal activity which may operate in or
otherwise utilize the facilities of interstate or international
commerce in furtherance of any transactions and the manner and
extent to which, and the identity of the persons, firms, or
corporations, or other entities by whom such utilization is
being made, and further, to study and investigate the manner in
which and the extent to which persons engaged in organized
criminal activity have infiltrated lawful business enterprise,
and to study the adequacy of Federal laws to prevent the
operations of organized crime in interstate or international
commerce; and to determine whether any changes are required in
the laws of the United States in order to protect the public
against such practices or activities;
(D) all other aspects of crime and lawlessness within the
United States which have an impact upon or affect the national
health, welfare, and safety; including but not limited to
investment fraud schemes, commodity and security fraud,
computer fraud, and the use of offshore banking and corporate
facilities to carry out criminal objectives;
(E) the efficiency and economy of operations of all
branches and functions of the Government with particular
reference to----
(i) the effectiveness of present national security methods,
staffing, and processes as tested against the requirements
imposed by the rapidly mounting complexity of national security
problems;
(ii) the capacity of present national security staffing,
methods, and processes to make full use of the Nation's
resources of knowledge and talents;
(iii) the adequacy of present intergovernmental relations
between the United States and international organizations
principally concerned with national security of which the
United States is a member; and
(iv) legislative and other proposals to improve these
methods, processes, and relationships;
(F) the efficiency, economy, and effectiveness of all
agencies and departments of the Government involved in the
control and management of energy shortages including, but not
limited to, their performance with respect to----
(i) the collection and dissemination of accurate statistics
on fuel demand and supply;
(ii) the implementation of effective energy conservation
measures;
(iii) the pricing of energy in all forms;
(iv) coordination of energy programs with State and local
government;
(v) control of exports of scarce fuels;
(vi) the management of tax, import, pricing, and other
policies affecting energy supplies;
(vii) maintenance of the independent sector of the
petroleum industry as a strong competitive force;
(viii) the allocation of fuels in short supply by public
and private entities;
(ix) the management of energy supplies owned or controlled
by the Government;
(x) relations with other oil producing and consuming
countries;
(xi) the monitoring of compliance by governments,
corporations, or individuals with the laws and regulations
governing the allocation, conservation, or pricing of energy
supplies; and
(xii) research into the discovery and development of
alternative energy supplies; and
(G) the efficiency and economy of all branches and
functions of Government with particular references to the
operations and management of Federal regulatory policies and
programs.
(2) EXTENT OF INQUIRIES--In carrying out the duties
provided in paragraph (1), the inquiries of this committee or
any subcommittee of the committee shall not be construed to be
limited to the records, functions, and operations of any
particular branch of the Government and may extend to the
records and activities of any persons, corporation, or other
entity.
(3) SPECIAL COMMITTEE AUTHORITY--For the purposes of this
subsection, the committee, or any duly authorized subcommittee
of the committee, or its chairman, or any other member of the
committee or subcommittee designated by the chairman, from
March 1, 2007, through February 28, 2009, is authorized, in
its, his, or their discretion----
(A) to require by subpoena or otherwise the attendance of
witnesses and production of correspondence, books, papers, and
documents;
(B) to hold hearings;
(C) to sit and act at any time or place during the
sessions, recess, and adjournment periods of the Senate;
(D) to administer oaths; and
(E) to take testimony, either orally or by sworn statement,
or, in the case of staff members of the Committee and the
Permanent Subcommittee on Investigations, by deposition in
accordance with the Committee Rules of Procedure.
(4) AUTHORITY OF OTHER COMMITTEES--Nothing contained in
this subsection shall affect or impair the exercise of any
other standing committee of the Senate of any power, or the
discharge by such committee of any duty, conferred or imposed
upon it by the Standing Rules of the Senate or by the
Legislative Reorganization Act of 1946.
(5) SUBPOENA AUTHORITY--All subpoenas and related legal
processes of the committee and its subcommittee authorized
under S. Res. 50, agreed to February 17, 2005 (109th Congress)
are authorized to continue.
III. BILLS AND RESOLUTIONS REFERRED AND CONSIDERED
During the 110th Congress, 202 Senate bills and 149 House
bills were referred to the Committee for consideration. In
addition, 9 Senate Resolutions and 2 Senate Concurrent
Resolutions were referred to the Committee.
The Committee reported 149 bills; an additional 28 measures
were discharged.
Of the legislation received by the Committee, 113 measures
became public laws, including 93 postal naming bills.
IV. HEARINGS
During the 110th Congress, the Committee held 69 hearings
on legislation, oversight issues, and nominations.
The Committee also held 14 scheduled business meetings.
Lists of hearings with copies of statements by Members and
witnesses, with archives going back to 1997, are online at the
Committee's Web site, http://hsgac.senate.gov/.
Hearing titles and dates follow:
Ensuring Full Implementation of the 9/11 Commission's
Recommendations. Jan. 9, 2007. (Printed, 271 pp. S. Hrg. 110-
865.)
Hurricanes Katrina and Rita: Outstanding Need, Slow
Progress. Field Hearing in New Orleans, Louisiana. Jan. 29,
2007. (Printed, 192 pp. S. Hrg. 110-33.)
The Homeland Security Department's Budget Submission for
Fiscal Year 2008. Feb. 13, 2007. (Printed, 249 pp. S. Hrg. 110-
633.)
Violence Islamist Extremism. The Threat of Islamic
Radicalism to the Homeland. Mar. 14, 2007. The Internet: A
Portal to Violent Islamist Extremism. May 3, 2007. Violent
Islamist Extremism: Government Efforts to Defeat It. May 10,
2007. Violent Islamist Extremism: The European Experience. June
27, 2007. The Role of Local Law Enforcement in Countering
Violent Islamist Extremism. Oct. 30, 2007. (Printed, 747 pp. S.
Hrg. 110-178.)
Nomination of Gregory B. Cade to be Administrator, U.S.
Fire Administration, U.S. Department of Homeland Security. Mar.
15, 2007. (Printed, 48 pp. S. Hrg. 110-21.)
GAO's Role in Supporting Congressional Oversight: An
Overview of Past Work and Future Challenges and Opportunities.
Mar. 21, 2007. (Printed, 74 pp. S. Hrg. 110-322.)
Deconstructing Reconstruction: Problems, Challenges, and
the Way Forward in Iraq and Afghanistan. Mar. 22, 2007.
(Printed, 417 pp. S. Hrg. 110-331.)
Dangerous Exposure: The Impact of Global Warming on Private
and Federal Insurance. Apr. 19, 2007. (Printed, 170 pp. S. Hrg.
110-147.)
Security on America's College Campuses. Apr. 23, 2007.
(Printed, 102 pp. S. Hrg. 110-867.)
Nomination of Howard C. Weizmann to be Deputy Director,
U.S. Office of Personnel Management. May 1, 2007. (Printed, 58
pp. S. Hrg. 110-74.)
Equal Representation in Congress: Providing Voting Rights
to the District of Columbia. May 15, 2007. (Printed, 273 pp. S.
Hrg. 110-575.)
Implementing FEMA Reform: Are We Prepared for the 2007
Hurricane Season? May 22, 2007. (Printed, 294 pp. S. Hrg. 110-
566.)
The Juvenile Diabetes Research Foundation and the Federal
Government: A Model Public-Private Partnership Accelerating
Research Toward a Cure. June 19, 2007. (Printed, 61 pp. S. Hrg.
110-316.)
Strenghthening the Unique Role of the Nation's Inspectors
General. July 11, 2007. (Printed, 147 pp. S. Hrg. 110-587.)
Federal Acquisition: Ways to Strengthen Competition and
Accountability. July 17, 2007. (Printed, 110 pp. S. Hrg. 110-
891.)
The Military's Role in Disaster Response: Progress Since
Hurricane Katrina. July 19, 2007. (Printed, 150 pp. S. Hrg.
110-549.)
Nomination of Hon. James A. Nussle, to be Director, Office
of Management and Budget. July 24, 2007. (Printed, 134 pp. S.
Hrg. 110-620.)
Nomination of Dennis R. Schrader to be Deputy Administrator
for National Preparedness, Federal Emergency Management Agency,
U.S. Department of Homeland Security. July 25, 2007. (Printed,
89 pp. S. Hrg. 110-274.)
Department of Homeland Security Status Report: Assessing
Challenges and Measuring Progress. Sept. 6, 2007. (Printed, 460
pp. S. Hrg. 110-588.)
Confronting the Terrorist Threat to the Homeland: Six Years
After 9/11. Sept. 10, 2007. (Printed, 162 pp. S. Hrg. 110-893.)
Nomination of Hon. Julie L. Myers to be Assistant
Secretary, U.S. Immigration and Customs Enforcement, U.S.
Department of Homeland Security. Sept. 12, 2007. (Printed, 211
pp. S. Hrg. 110-556.)
One Year Later: A Progress Report on the Security and
Accountability for Every (Safe) Port Act. Oct. 16, 2007.
(Printed, 139 pp. S. Hrg. 110-676.)
Is the Department of Homeland Security Too Dependent on
Contractors to Do the Government's Work? Oct. 17, 2007.
(Printed, 126 pp. S. Hrg. 110-530.)
Nomination of Hon. Ellen C. Williams to be a Governor, U.S.
Postal Service. Oct. 18, 2007. (Printed, 43 pp. S. Hrg. 110-
276.)
Six Years After Anthrax: Are We Better Prepared to Respond
to Bioterrorism? Oct. 23, 2007. (Printed, 160 pp. S. Hrg. 110-
558.)
Watching the Watch List: Building an Effective Terrorist
Screening System. Oct. 24, 2007. (Printed, 312 pp. S. Hrg. 110-
621.)
Nominations of Robert D. Jamison to be Under Secretary for
National Protection and Programs, and W. Ross Ashley III to be
Assistant Administrator for Grant Programs of the Federal
Emergency Management Agency, U.S. Department of Homeland
Security. Nov. 9, 2007. (Printed, 166 pp. S. Hrg. 110-528.)
E-Government 2.0: Improving Innovation, Collaboration, and
Access. Dec. 11, 2007. (Printed, 119 pp. S. Hrg. 110-894.)
Nominations of Harvey E. Johnson, Jr. to be Deputy
Administrator, Federal Emergency Management Agency, U.S.
Department of Homeland Security, and Jeffrey W. Runge to be
Assistant Secretary for Health Affairs and Chief Medical
Officer, and U.S. Department of Homeland Security. Dec. 12,
2007. (Printed, 260 pp. S. Hrg. 110-577.)
Nomination of Steven H. Murdock to be Director of the
Census, U.S. Department of Commerce. Dec. 18, 2007. (Printed,
72 pp. S. Hrg. 110-524.)
Nuclear Terrorism: The Defense Department's Homeland
Security Role: How the Military Can and Should Contribute. Feb.
13, 2008; Nuclear Terrorism: Assessing the Threat to the
Homeland. Apr. 2, 2008; Nuclear Terrorism: Confronting the
Challenges of the Day After. Apr. 15, 2008; Nuclear Terrorism:
Providing Medical Care and Meeting Basic Needs in the
Aftermath. May 15, 2008; Nuclear Terrorism: Providing Medical
Care and Meeting Basic Needs in the Aftermath--The Federal
Response. June 26, 2008; The Global Nuclear Detection
Architecture: Are We Building Domestic Defenses That Will Make
the Nation Safer From Nuclear Terrorism? July 16, 2008; and
Preventing Nuclear Terrorism: Hard Lessons Learned From
Troubled Investments. Sept. 25, 2008. (7 Days) (Printed, 903
pp. S. Hrg. 110-1038.)
The Homeland Security Department's Budget Submission for
Fiscal Year 2008. Feb. 14, 2008. (Printed, 137 pp. S. Hrg. 110-
996.)
An Uneasy Relationship: U.S. Reliance on Private Security
Firms in Overseas Operations. Feb. 27, 2008. (Printed, 162 pp.
S. Hrg. 110-1016.)
Census in Peril: Getting the 2010 Decennial Back on Track--
Part I and II. Mar. 5 and Apr. 15, 2008. (Printed, 187 pp. S.
Hrg. 110-1039.)
The New FEMA: Is the Agency Better Prepared for a
Catastrophe Now Than It Was in 2005? Apr. 3, 2008. (Printed,
227 pp. S. Hrg. 110-1021.)
Nominations of Hon. Andrew M. Saul, Hon. Alejandro M.
Sanchez, and Hon. Gordon J. Whiting to be Members of the
Federal Retirement Thrift Investment Board. Apr. 10, 2008.
(Printed, 67 pp. S. Hrg. 110-934.)
Nomination of Nanci E. Langley to be Commissioner, Postal
Regulatory Commission. Apr. 23, 2008. (Printed, 38 pp. S. Hrg.
110-938.)
High Price of Commodities. Fuel Subsidies: Is There An
Impact on Food Supply and Prices? May 7, 2008. Financial
Speculation in Commodity Markets: Are Institutional Investors
and Hedge Funds Contributing to Food and Energy Price
Inflation? May 20, 2008. Ending Excessive Speculation in
Commodity Markets: Legislative Options. June 24, 2008.
(Printed, 383 pp. S. Hrg. 110-705.)
Nomination of Hon. Paul A. Schneider to be Deputy
Secretary, U.S. Department of Homeland Security. May 14, 2008.
(Printed, 108 pp. S. Hrg. 110-947.)
Protecting Personal Information: Is the Federal Government
Doing Enough? June 18, 2008. (Printed, 170 pp. S. Hrg. 110-
1025.)
Nomination of Elaine C. Duke to be Under Secretary for
Management, U.S. Department of Homeland Security. June 20,
2008. (Printed, 87 pp. S. Hrg. 110-946.)
Securing the Northern Border: Views From the Front Lines.
July 2, 2008. Field Hearing in Havre, MT. (Printed, 115 pp. S.
Hrg. 110-1024.)
The Roots of Violent Islamist Extremism and Efforts to
Counter It. July 10, 2008. (Printed, 145 pp. S. Hrg. 110-942.)
Nomination of Gus P. Coldebella to be General Counsel, U.S.
Department of Homeland Security. July 15, 2008. (Printed, 185
pp. S. Hrg. 110-965.)
Energy Security: An American Imperative. July 22, 2008.
(Printed, 171 pp. S. Hrg. 110-1023.)
Information Sharing: Connecting the Dots at the Federal,
State, and Local Levels. July 23, 2008. (Printed, 170 pp. S.
Hrg. 110-1028.)
Nomination of Carol A. Dalton, Anthony C. Epstein, and
Heidi M. Pasichow to be Associate Judges of the Superior Court
of the District of Columbia. July 23, 2008. (Printed, 92 pp. S.
Hrg. 110-966.)
Nomination of James A. Williams to be Administrator of the
U.S. General Services Administration. July 25, 2008. (Printed,
99 pp. S. Hrg. 110-990.)
Nomination of Ruth Y. Goldway to be Commissioner, Postal
Regulatory Commission. Sept. 9, 2008. (Printed, 69 pp. S. Hrg.
110-970.)
Expediency Versus Integrity: Do Assembly-Line Audits at the
Defense Contract Audit Agency Waste Taxpayer Dollars? Sept. 10,
2008. (Printed, 137 pp. S. Hrg. 110-1035.)
Nominations of Carol W. Pope and Thomas M. Beck to be
Members, Federal Labor Relations Authority. Sept. 11, 2008.
(Printed, 59 pp. S. Hrg. 110-983.)
Domestic Partner Benefits for Federal Employees: Fair
Policy and Good Business. Sept. 24, 2008. (Printed, 229 pp. S.
Hrg. 110-944.)
Nomination of Robert W. McGowan to be a Governor, United
States Postal Service. Nov. 17, 2008. (Printed, 33 pp. S. Hrg.
110-993.)
Nominations of Kathryn A. Oberly, Associate Judge, District
of Columbia Court of Appeals, and Alfred S. Irving, Jr.,
Associate Judge, Superior Court of the District of Columbia.
Nov. 17, 2008. (Printed, 67 pp. S. Hrg. 110-969.)
World at Risk: A Report From the Commission on the
Prevention of Weapons of Mass Destruction Proliferation and
Terrorism. Dec. 11, 2008. (Printed, 212 pp. S. Hrg. 110-1036.)
V. REPORTS, PRINTS, AND GAO REPORTS
During the 110th Congress, the Committee prepared and
issued 36 Reports and 4 Committee Prints on the following
topics. Reports issued by Subcommittees are listed in their
respective sections of this document.
COMMITTEE REPORTS
To extend the District of Columbia College Access Act of
1999. S. Rept. 110-52, re. S. 343.
To extend the date on which the National Security Personnel
System will first apply to certain defense laboratories. S.
Rept. 110-79, re. S. 457.
To provide the District of Columbia a voting seat and the
State of Utah an additional seat in the House of
Representatives. S. Rept. 110-123, re. S. 1257.
To amend the National Capital Transportation Act of 1969 to
authorize additional Federal contributions for maintaining and
improving the transit system of the Washington Metropolitan
Area Transit Authority, and for other purposes. S. Rept. 110-
188, re. S. 1446.
To ensure proper oversight and accountability in Federal
contracting, and for other purposes. S. Rept. 110-201, re. S.
680.
To amend title 44, United States Code, to require
information on contributors to the Presidential library
fundraising organization. S. Rept. 110-202, re. H.R. 1254.
Extending the special postage stamp for breast cancer
research for 2 years. S. Rept. 110-222, re. S. 597.
To amend chapter 23 of title 5, United States Code, to
clarify the disclosures of information protected from
prohibited personnel practices, require a statement in
nondisclosure policies, forms, and agreements that such
policies, forms, and agreements conform with certain disclosure
protections, provide certain authority for the Special Counsel,
and for other purposes. S. Rept. 110-232, re. S. 274.
To reform mutual aid agreements for the National Capital
Region. S. Rept. 110-237, re. S. 1245.
To provide for the flexibility of certain disaster relief
funds, and for improved evacuation and sheltering during
disasters and catastrophes. S. Rept. 110-240, re. S. 2445.
To preserve existing judgeships on the Superior Court of
the District of Columbia. S. Rept. 110-256, re. S. 550.
To amend the Inspector general Act of 1978 (5 U.S.C. app.)
to enhance the Offices of the Inspectors General, to create a
Council of Inspectors General on Integrity and Efficiency, and
for other purposes. S. Rept. 110-262, re. S. 2324.
To establish a pilot program for the expedited disposal of
Federal real property. S. Rept. 110-279, re. S. 1667.
To modify pay provisions relating to certain senior-level
positions in the Federal Government, and for other purposes. S.
Rept. 110-328, re. S. 1046.
To encourage the donation of excess food to nonprofit
organizations that provide assistance to food-insecure people
in the United States in contracts entered into be executive
agencies for the provision, service, or sale of food. S. Rept.
110-338, re. S. 2420.
To amend title 40, United States Code, to authorize the use
of Federal supply schedules for the acquisition of law
enforcement, security, and certain other related items by State
and local governments. S. Rept. 110-344, re. H.R. 3179.
To reauthorize the United States Fire Administration, and
for other purposes. S. Rept. 110-411, re. S. 2606.
To enhance citizen access to Government information and
services by establishing plain language as the standard style
of Government documents issued to the public, and for other
purposes. S. Rept. 110-412, re. S. 2291.
To amend title 11, District of Columbia Official Code, to
implement the increase provided under the District of Columbia
Appropriations Act, 2008, in the amount of funds made available
for the compensation of attorneys representing indigent
defendants in the District of Columbia courts, and for other
purposes. S. Rept. 110-432, re. H.R. 5551.
To prevent the abuse of Government credit cards. S. Rept.
110-437, re. S. 789.
To establish a fact-finding Commission to extend the study
of a prior Commission to investigate and determine facts and
circumstances surrounding the relocation, internment, and
deportation to Axis countries of Latin Americans of Japanese
descent from December 1941 through February 1948, and the
impact of those actions by the United States, and to recommend
appropriate remedies, and for other purposes. S. Rept. 110-452,
re. S. 381.
To require the Administrator of the Federal Emergency
Management Agency to quickly and fairly address the abundance
of surplus manufactures housing units stored by the Federal
Government around the country at taxpayer expense. S. Rept.
110-453, re. S. 2382.
Amending the Homeland security Act of 2002 to provide for a
one-year extension of other transaction authority. S. Rept.
110-454, re. S. 3328.
To prohibit the award of contract to provide guard services
under the contract security guard program of the Federal
Protective Service to a business concern that is owned,
controlled, or operated by an individual who has been convicted
of a felony. S. Rept. 110-455, re. H.R. 3068.
To provide for retirement equity for Federal employees in
nonforeign areas outside the 48 contiguous States and the
District of Columbia, and for other purposes. S. Rept. 110-456,
re. S. 3013.
To amend the E-Government Act of 2002 (Public Law 107-347)
to reauthorize appropriations, and for other purposes. S. Rept.
110-465, re. S. 2321.
To provide for the appointment of the Chief Human Capital
Officer of the Department of Homeland Security by the Secretary
of Homeland Security. S. Rept. 110-466, re. S. 2816.
To reauthorize and improve the Federal Financial Assistance
Management Improvement Act of 1999. S. Rept. 110-468, re. S.
3341.
To improve the provision of disaster assistance for
Hurricanes Katrina and Rita, and for other purposes. S. Rept.
110-471, re. H.R. 3247.
To improve the Robert T. Stafford Disaster Relief and
Emergency Assistance Act to reauthorize the predisaster hazard
mitigation program, to make technical corrections to that Act,
and for other purposes. S. Rept. 110-479, re. S. 3175.
To amend the Homeland Security Act of 2002, to establish
the Office for Bombing Prevention, to address terrorist
explosive threats, and for other purposes. S. Rept. 110-481,
re. S. 2292.
To provide for greater diversity within, and to improve
policy direction and oversight of, the Senior Executive
Service. S. Rept. 110-517, re. S. 2148.
To amend chapter 81 of title 5, United States Code, to
create a presumption that disability or death of a Federal
employee in fire protection activities caused by any of certain
diseases is the result of the performance of such employee's
duty. S. Rept. 110-520, re. S. 1924.
To amend chapter 41 of title 5, United States Code, to
provide for the establishment and authorization of funding for
certain training programs for supervisors of Federal employees.
S. Rept. 110-523, re. S. 967.
To amend title 44, United States Code, to authorize grants
for Presidential Centers of Historical Excellence. S. Rept.
110-525, re. S. 3477.
To enhance the Federal Telework Program. S. Rept. 110-526,
re. S. 1000.
COMMITTEE PRINTS
The Committee issued the following Committee Prints during
the 110th Congress:
Rules of Procedure. Committee on Homeland Security and
Governmental Affairs. (Printed. 36 pp. S. Prt. 110-14.)
Rules of Procedure. Permanent Subcommittee on
Investigations. (Printed. 18 pp. S. Prt. 110-15.)
Organization of Federal Executive Departments and Agencies.
Agencies and Functions of the Federal Government Established,
Abolished, Continued, Modified, reorganized, Extended,
Transferred, or Changed in Name by Legislative or Executive
Action During Calendar Years 2005 and 2006. (Prepared by the
Office of the Federal Register, national Archives and Records
Administration for the Committee on Homeland Security and
Governmental Affairs.) (Printed. 26 pp. S. Prt. 110-26)
Policy and Supporting Positions. Committee on Homeland
Security and Governmental Affairs. (Printed. 210 pp. S. Prt.
110-36.)
GAO REPORTS
Also during the 110th Congress, the Government
Accountability Office (GAO) issued 107 reports at the request
of the Committee. GAO reports requested by the Subcommittees
appear in their respective sections. Reports are listed here by
title, GAO number, and release date.
Budget Issues: FEMA Needs Adequate Data, Plans, and Systems
to Effectively Manage Resources for Day-to-Day Operations. GAO-
07-139. January 19, 2007.
Office of Personnel Management: Key Lessons Learned to Date
for Strengthening Capacity to Lead and Implement Human Capital
Reforms. GAO-07-90. January 19, 2007.
Small Business Administration: Additional Steps Needed to
Enhance Agency Preparedness for Future Disasters. GAO-07-114.
February 14, 2007.
Disaster Assistance: Better Planning Needed for Housing
Victims of Catastrophic Disasters. GAO-07-88. February 28,
2007.
Hurricane Katrina: Agency Contracting Data Should Be More
Complete Regarding Subcontracting Opportunities for Small
Businesses. GAO-07-205. March 1, 2007.
Financial Market Regulation: Agencies Engaged in
Consolidated Supervision Can Strengthen Performance Measurement
and Collaboration. GAO-07-154. March 15, 2007.
Hurricanes Katrina and Rita Disaster Relief: Continued
Findings of Fraud, Waste, and Abuse. GAO-07-300. March 15,
2007.
Climate Change: Financial Risks to Federal and Private
Insurers in Coming Decades Are Potentially Significant. GAO-07-
285. March 16, 2007.
Operation Iraqi Freedom: DOD Should Apply Lessons Learned
Concerning the Need for Security over Conventional Munitions
Storage Sites to Future Operations Planning. GAO-07-444. March
22, 2007.
Information Security: Sustained Progress Needed to
Strengthen Controls at the Securities and Exchange Commission.
GAO-07-256. March 27, 2007.
Disaster Preparedness: Better Planning Would Improve OSHA's
Efforts to Protect Workers' Safety and Health in Disasters.
GAO-07-193. March 28, 2007.
Port Risk Management: Additional Federal Guidance Would Aid
Ports in Disaster Planning and Recovery. GAO-07-412. March 28,
2007.
Emergency Preparedness: Current Emergency Alert System Has
Limitations, and Development of a New Integrated System Will Be
Challenging. GAO-07-411. March 30, 2007.
Financial Audit: Independent and Special Counsel
Expenditures for the Six Months Ended September 30, 2006. GAO-
07-531. March 30, 2007.
Information Security: Further Efforts Needed to Address
Significant Weaknesses at the Internal Revenue Service. GAO-07-
364. March 30, 2007.
Customs Revenue: Customs and Border Protection Needs to
Improve Workforce Planning and Accountability. GAO-07-529.
April 12, 2007.
Federal Real Property: Progress Made Toward Addressing
Problems, but Underlying Obstacles Continue to Hamper Reform.
GAO-07-349. April 13, 2007.
Transportation Security: DHS Efforts to Eliminate Redundant
Background Check Investigations. GAO-07-756. April 26, 2007.
Privacy: Lessons Learned about Data Breach Notification.
GAO-07-657. April 30, 2007.
Financial Audit: Congressional Award Foundation's Fiscal
Years 2006 and 2005 Financial Statements. GAO-07-786. May 15,
2007.
Rebuilding Iraq: Integrated Strategic Plan Needed to Help
Restore Iraq's Oil and Electricity Sectors. GAO-07-677. May 15,
2007.
Internal Revenue Service: Status of GAO Financial Audit and
Related Financial Management Report Recommendations. GAO-07-
629. June 7, 2007.
Avian Influenza: USDA Has Taken Important Steps to Prepare
for Outbreaks, but Better Planning Could Improve Response. GAO-
07-652. June 11, 2007.
Emergency Management: Most School Districts Have Developed
Emergency Management Plans, but Would Benefit from Additional
Federal Guidance. GAO-07-609. June 12, 2007.
Federal Retirement Thrift Investment Board: Many
Responsibilities and Investment Policies Set by Congress. GAO-
07-611. June 21, 2007.
U.S. Postal Service: Mail Processing Realignment Efforts
Under Way Need Better Integration and Explanation. GAO-07-717.
June 21, 2007.
Federal Real Property: DHS Has Made Progress, but
Additional Actions Are Needed to Address Real Property
Management and Security Challenges. GAO-07-658. June 22, 2007.
Energy Efficiency: Important Challenges Must Be Overcome to
Realize Significant Opportunities for Energy Efficiency
Improvements in Gulf Coast Reconstruction. GAO-07-654. June 26,
2007.
Emergency Management Assistance Compact: Enhancing EMAC's
Collaborative and Administrative Capacity Should Improve
National Disaster Response. GAO-07-854. June 29, 2007.
Intercollegiate Athletics: Recent Trends in Teams and
Participants in National Collegiate Athletic Association
Sports. GAO-07-535. July 12, 2007.
Information Security: Homeland Security Needs to
Immediately Address Significant Weaknesses in Systems
Supporting the US-VISIT Program. GAO-07-870. July 13, 2007.
Human Capital: DOD Needs Better Internal Controls and
Visibility over Costs for Implementing Its National Security
Personnel System. GAO-07-851. July 16, 2007.
Military Personnel: Improved Quality Controls Needed over
Servicemembers' Employment Rights Claims at DOL. GAO-07-907.
July 20, 2007.
Financial Audit: Significant Internal Control Weaknesses
Remain in the Preparation of the Consolidated Financial
Statements of the U.S. Government. GAO-07-805. July 23, 2007.
Information Security: Despite Reported Progress, Federal
Agencies Need to Address Persistent Weaknesses. GAO-07-837.
July 27, 2007.
Financial Management: Long-standing Financial Systems
Weaknesses Present a Formidable Challenge. GAO-07-914. August
3, 2007.
Department of Homeland Security: Progress Report on
Implementation of Mission and Management Functions. GAO-07-454.
August 17, 2007.
Securing, Stabilizing, and Rebuilding Iraq: Iraqi
Government Has Not Met Most Legislative, Security, and Economic
Benchmarks. GAO-07-1195. September 4, 2007.
Defense Business Transformation: Achieving Success Requires
a Chief Management Officer to Provide Focus and Sustained
Leadership. GAO-07-1072. September 5, 2007.
General Services Administration: Improvements Needed in
Managing Delegated Authority of Real Property Activities. GAO-
07-1000. September 5, 2007.
National Flood Insurance Program: FEMA's Management and
Oversight of Payments for Insurance Company Services Should Be
Improved. GAO-07-1078. September 5, 2007.
Critical Infrastructure Protection: Multiple Efforts to
Secure Control Systems Are Under Way, but Challenges Remain.
GAO-07-1036. September 10, 2007.
Department of Homeland Security: Improved Assessment and
Oversight Needed to Manage Risk of Contracting for Selected
Services. GAO-07-990. September 17, 2007.
Department of Homeland Security: Challenges in Implementing
the Improper Payments Information Act and Recovering Improper
Payments. GAO-07-913. September 19, 2007.
Financial Audit: Special Counsel Expenditures for the Six
Months Ended March 31, 2007. GAO-07-1205. September 28, 2007.
Stabilizing and Rebuilding Iraq: U.S. Ministry Capacity
Development Efforts Need an Overall Integrated Strategy to
Guide Efforts and Manage Risk. GAO-08-117. October 1, 2007.
Terrorist Watch List Screening: Opportunities Exist to
Enhance Management Oversight, Reduce Vulnerabilities in Agency
Screening Processes, and Expand Use of the List. GAO-08-110.
October 11, 2007.
Homeland Security: Federal Efforts Are Helping to Alleviate
Some Challenges Encountered by State and Local Information
Fusion Centers. GAO-08-35. October 30, 2007.
U.S. Postal Service: Agencies Distribute Fund-raising Stamp
Proceeds and Improve Reporting. GAO-08-45. October 30, 2007.
Critical Infrastructure Protection: Sector-Specific Plans'
Coverage of Key Cyber Security Elements Varies. GAO-08-113.
October 31, 2007.
Office of Personnel Management: Opportunities Exist to
Build on Recent Progress in Internal Human Capital Capacity.
GAO-08-11. October 31, 2007.
Financial Audit: Bureau of the Public Debt's Fiscal Years
2007 and 2006 Schedules of Federal Debt. GAO-08-168. November
7, 2007.
Financial Audit: IRS's Fiscal Years 2007 and 2006 Financial
Statement Audits. GAO-08-166. November 9, 2007.
Financial Audit: Securities and Exchange Commission's
Financial Statements for Fiscal Years 2007 and 2006. GAO-08-
167. November 16, 2007.
Hurricane Katrina: Ineffective FEMA Oversight of Housing
Maintenance Contracts in Mississippi Resulted in Millions of
Dollars of Waste and Potential Fraud. GAO-08-106. November 16,
2007.
Tax Compliance: Federal Grant and Direct Assistance
Recipients Who Abuse the Federal Tax System. GAO-08-31.
November 16, 2007.
U.S. Postal Service Facilities: Improvements in Data Would
Strengthen Maintenance and Alignment of Access to Retail
Services. GAO-08-41. December 10, 2007.
Military Base Realignments and Closures: Cost Estimates
Have Increased and Are Likely to Continue to Evolve. GAO-08-
159. December 11, 2007.
Supply Chain Security: Examinations of High-Risk Cargo at
Foreign Seaports Have Increased, but Improved Data Collection
and Performance Measures Are Needed. GAO-08-187. January 25,
2008.
Federal Workers' Compensation: Better Data and Management
Strategies Would Strengthen Efforts to Prevent and Address
Improper Payments. GAO-08-284. February 26, 2008.
National Disaster Response: FEMA Should Take Action to
Improve Capacity and Coordination between Government and
Voluntary Sectors. GAO-08-369. February 27, 2008.
Catastrophic Disasters: Federal Efforts Help States Prepare
for and Respond to Psychological Consequences, but FEMA's
Crisis Counseling Program Needs Improvements. GAO-08-22.
February 29, 2008.
Electronic Government: Additional OMB Leadership Needed to
Optimize Use of New Federal Employee Identification Cards. GAO-
08-292. February 29, 2008.
Defense Contracting: Army Case Study Delineates Concerns
with Use of Contractors as Contract Specialists. GAO-08-360.
March 26, 2008.
Federal Contracting: Congressional Action Needed to Address
Long-standing Problems with Reporting of Advisory and
Assistance Services. GAO-08-319. March 31, 2008.
Financial Audit: Special Counsel Expenditures for the Six
Months Ended September 30, 2007. GAO-08-541. March 31, 2008.
Department of Homeland Security: Better Planning and
Assessment Needed to Improve Outcomes for Complex Service
Acquisitions. GAO-08-263. April 22, 2008.
Supply Chain Security: U.S. Customs and Border Protection
Has Enhanced Its Partnership with Import Trade Sectors, but
Challenges Remain in Verifying Security Practices. GAO-08-240.
April 25, 2008.
Interagency Contracting: Need for Improved Information and
Policy Implementation at the Department of State. GAO-08-578.
May 8, 2008.
Financial Audit: Congressional Award Foundation's Fiscal
Years 2007 and 2006 Financial Statements. GAO-08-715. May 15,
2008.
Privacy: Alternatives Exist for Enhancing Protection of
Personally Identifiable Information. GAO-08-536. May 19, 2008.
Information Security: TVA Needs to Address Weaknesses in
Control Systems and Networks. GAO-08-526. May 21, 2008.
U.S. Postal Service: Mail-Related Recycling Initiatives and
Possible Opportunities for Improvement. GAO-08-599. June 3,
2008.
Homeland Security: The Federal Protective Service Faces
Several Challenges That Hamper Its Ability to Protect Federal
Facilities. GAO-08-683. June 11, 2008.
Federal Real Property: Property Conveyances between the
District of Columbia and the Federal Government Await
Completion, and Development Will Take Many Years. GAO-08-684.
June 13, 2008.
Financial Audit: Material Weaknesses in Internal Control
over the Processes Used to Prepare the Consolidated Financial
Statements of the U.S. Government. GAO-08-748. June 17, 2008.
Information Sharing Environment: Definition of the Results
to Be Achieved in Improving Terrorism-Related Information
Sharing Is Needed to Guide Implementation and Assess Progress.
GAO-08-492. June 25, 2008.
Homeland Security: First Responders' Ability to Detect and
Model Hazardous Releases in Urban Areas Is Significantly
Limited. GAO-08-180. June 27, 2008.
Telecommunications: Agencies Are Generally Following Sound
Transition Planning Practices, and GSA Is Taking Action to
Resolve Challenges. GAO-08-759. June 27, 2008.
Internal Revenue Service: Status of GAO Financial Audit and
Related Financial Management Report Recommendations. GAO-08-
693. July 2, 2008.
DCAA Audits: Allegations That Certain Audits at Three
Locations Did Not Meet Professional Standards Were
Substantiated. GAO-08-857. July 22, 2008.
Supply Chain Security: CBP Works with International
Entities to Promote Global Customs Security Standards and
Initiatives, but Challenges Remain. GAO-08-538. August 15,
2008.
Aviation Security: TSA Is Enhancing Its Oversight of Air
Carrier Efforts to Identify Passengers on the No Fly and
Selectee Lists, but Expects Ultimate Solution to Be
Implementation of Secure Flight. GAO-08-992. September 9, 2008.
Human Capital: DOD Needs to Improve Implementation of and
Address Employee Concerns about Its National Security Personnel
System. GAO-08-773. September 10, 2008.
U.S. Postal Service: New Delivery Performance Measures
Could Enhance Managers' Pay for Performance Program. GAO-08-
996. September 10, 2008.
Visa Waiver Program: Actions Are Needed to Improve
Management of the Expansion Process, and to Assess and Mitigate
Program Risks. GAO-08-967. September 15, 2008.
Voluntary Organizations: FEMA Should More Fully Assess
Organization's Mass Care Capabilities and Update the Red Cross
Role in Catastrophic Events. GAO-08-823. September 18, 2008.
Electricity Restructuring: FERC Could Take Additional Steps
to Analyze Regional Transmission Organizations' Benefits and
Performance. GAO-08-987. September 22, 2008.
Department of Homeland Security: Improvements Could Further
Enhance Ability to Acquire Innovative Technologies Using Other
Transaction Authority. GAO-08-1088. September 23, 2008.
U.S. Asylum System: Significant Variation Existed in Asylum
Outcomes across Immigration Courts and Judges. GAO-08-940.
September 25, 2008.
Disaster Recovery: Past Experiences Offer Insights for
Recovering from Hurricanes Ike and Gustav and Other Recent
Natural Disasters. GAO-08-1120. September 26, 2008.
Combating Nuclear Smuggling: DHS's Phase 3 Test Report on
Advanced Portal Monitors Does Not Fully Disclose the
Limitations of the Test Results. GAO-08-979. September 30,
2008.
Federal Energy Management: Addressing Challenges through
Better Plans and Clarifying the Greenhouse Gas Emission Measure
Will Help Meet Long-term Goals for Buildings. GAO-08-977.
September 30, 2008.
Financial Management: Persistent Financial Management
Systems Issues Remain for Many CFO Act Agencies. GAO-08-1018.
September 30, 2008.
Lobbying Disclosure: Observations on Lobbyists' Compliance
with New Disclosure Requirements. GAO-08-1099. September 30,
2008.
Contingency Contracting: DOD, State, and USAID Contracts
and Contractor Personnel in Iraq and Afghanistan. GAO-09-19.
October 1, 2008.
Information Technology: Management Improvements Needed on
the Department of Homeland Security's Next Generation
Information Sharing System. GAO-09-40. October 8, 2008.
Public Health and Border Security: HHS and DHS Should
Further Strengthen Their Ability to Respond to TB Incidents.
GAO-09-58. October 14, 2008.
Financial Audit: Bureau of the Public Debt's Fiscal Years
2008 and 2007 Schedules of Federal Debt. GAO-09-44. November 7,
2008.
Financial Audit: IRS's Fiscal Years 2008 and 2007 Financial
Statements. GAO-09-119. November 10, 2008.
Financial Audit: Securities and Exchange Commission's
Financial Statements for Fiscal Years 2008 and 2007. GAO-09-
173. November 14, 2008.
Confirmation of Political Appointees: Eliciting Nominees'
Views on Management Challenges within Agencies and across
Government. GAO-09-194. November 17, 2008.
Department of Homeland Security: A Strategic Approach Is
Needed to Better Ensure the Acquisition Workforce Can Meet
Mission Needs. GAO-09-30. November 19, 2008.
Northern Border Security: DHS's Report Could Better Inform
Congress by Identifying Actions, Resources, and Time Frames
Needed to Address Vulnerabilities. GAO-09-93. November 25,
2008.
Disaster Assistance: Federal Efforts to Assist Group Site
Residents with Employment, Services for Families with Children,
and Transportation. GAO-09-81. December 11, 2008.
Radio Communications: Congressional Action Needed to Ensure
Agencies Collaborate to Develop a Joint Solution. GAO-09-133.
December 12, 2008.
Disaster Recovery: FEMA's Public Assistance Grant Program
Experienced Challenges with Gulf Coast Rebuilding. GAO-09-129.
December 18, 2008.
VI. OFFICIAL COMMUNICATIONS
During the 110th Congress, 1,172 official communications
were referred to the Committee. Of these, 1,150 were Executive
Communications and 22 were Petitions or Memorials. Of the
official communications, 460 dealt with the District of
Columbia.
VII. LEGISLATIVE ACTIONS
During the 110th Congress, the Committee reported
significant legislation that was approved by Congress and
signed into law by the President.
The following are brief legislative histories of measures
to the Committee and, in some cases, drafted by the Committee,
which (1) became public law or (2) were favorably reported from
the Committee and passed by the Senate, but did not become law.
In addition to the measures listed below, the Committee
received during the 110th Congress numerous legislative
proposals that were not considered or reported, or that were
reported but not passed by the Senate. Additional information
on these measures appears in the Committee's Legislative
Calendar for the 110th Congress, S. Prt. 110-52, Government
Printing Office (December 31, 2010).
MEASURES ENACTED INTO LAW
The following measures considered by the Committee were
enacted into Public Law. The descriptions following the signing
date of each measure note selected provisions of the text, and
are not intended to serve as section-by-section summaries.
H.R. 1130.--To amend the Ethics in Government Act of 1978
to extend the authority to withhold from public availability a
financial disclosure report filed by an individual who is a
judicial officer or judicial employee, to the extent necessary
to protect the safety of that individual or a family member of
that individual, and for other purposes. (Public Law 110-24).
May 3, 2007.
Amends the Ethics in Government Act of 1978 to: (1)
restrict disclosure of personal information about family
members of judges whose revelation might endanger them; and (2)
extend through 2009 the authority of the Judicial Conference to
redact certain personal information of judges from financial
disclosure reports. Further, the bill specifies additional
types of information the Administrative Council of the U.S.
Courts must include in its annual report to certain
congressional committees on redaction of judicial financial
disclosure reports.
H.R. 1.--To provide for the implementation of the
recommendations of the National Commission on Terrorist Attacks
Upon the United States. (Public Law 110-53). August 3, 2007.
Changes laws and authorizes funds to implement
recommendations made by the National Commission on Terrorist
Attacks upon the United States in 2004. The bill makes
provisions addressing: homeland security grants; emergency
management performance grants; ensuring communications
interoperability for first responders; strengthening use of the
incident command system; improving intelligence and information
sharing within the Federal Government and with State, local,
and tribal governments; congressional oversight of
intelligence; strengthening efforts to prevent terrorist
travel; privacy and civil liberties; private sector
preparedness; improving critical infrastructure security;
enhanced defenses against weapons of mass destruction;
transportation security planning and information sharing;
transportation security enhancements; public transportation
security; surface transportation security; aviation; maritime
cargo; preventing weapons of mass destruction proliferation and
terrorism; international cooperation on antiterrorism
technologies; 9/11 Commission international implementation;
advancing democratic values; interoperable emergency
communications; and other provisions.
S. 1099.--To amend chapter 89 of title 5, United States
Code, to make individuals employed by the Roosevelt Campobello
International Park Commission eligible to obtain Federal health
insurance. (Public Law 110-74). August 9, 2007.
Makes citizens of the United States who are employed by the
Roosevelt Campobello International Park Commission eligible to
obtain health insurance under the Federal Employees Health
Benefits (FEHB) program. The park is administered by the
commission that was created in 1964 under an international
treaty between the United States and Canada. (The park is
affiliated with the National Park Service.) The treaty
specifies that the two countries equally share the
administrative costs to operate the park.
According to park officials, however, the U.S. Government
currently covers the full cost associated with the employer
share of health premiums for employees who are U.S. citizens.
S. 597.--To extend the authority of the United States
Postal Service to issue a semipostal to raise funds for breast
cancer research. (Amended) (Public Law 110-150). December 21,
2007.
Reauthorizes the Stamp Out Breast Cancer Act (P.L. 105-41)
through December 31, 2009. This special postage stamp for
First-Class mail was designed specifically to raise funds for
breast cancer research efforts. The price of this stamp is 55
cents, 14 cents above the regular rate of 41 cents.
H.R. 3571.--To amend the Congressional Accountability Act
of 1995 to permit individuals who have served as employees of
the Office of Compliance to serve as Executive Director, Deputy
Executive Director, or General Counsel of the Office, and to
permit individuals appointed to such positions to serve one
additional term. (Public Law 110-164). December 26, 2007.
Amends the Congressional Accountability Act of 1995 to
allow former Office of Compliance (OC) employees to serve as
board members or in executive-level positions for that office
sooner than they would be eligible to under current law. In
addition, the legislation would allow the Executive Director,
Deputy Executive Director, or General Counsel of the OC to
serve up to two terms.
S. 550.--To preserve existing judgeships on the Superior
Court of the District of Columbia. (Public Law 110-201). April
18, 2008.
Preserves existing judgeships within the Superior Court of
the District of Columbia inadvertently impacted by the 107th
Congress under the Family Court Act of 2001.
S. 2420.--To encourage the donation of excess food to
nonprofit organizations that provide assistance to food-
insecure people in the United States in contracts entered into
by executive agencies for the provision, service, or sale of
food. (Public Law 110-247). June 20, 2008.
Encourages Federal agencies and their contractors to donate
excess food to nonprofit organizations serving the needy. The
bill requires Federal contracts above $25,000 for the provision
of food, or for the lease or rental of Federal property to a
private entity for events at which food is provided, to include
a clause that encourages--but does not require--the donation of
excess food to nonprofit organizations.
H.R. 3179.--To amend title 40, United States Code, to
authorize the use of Federal supply schedules for the
acquisition of law enforcement, security, and certain other
related items by State and local governments. (Public Law 110-
248). June 26, 2008.
Allows State and local governments to purchase homeland
security and public safety equipment and services from the
Schedules Program of the General Services Administration (GSA).
This procurement authority will help State and local
governments reduce the administrative costs of negotiating
their own contracts by authorizing them to use the pre-
negotiated contracts of GSA.
S. 1245.--To reform mutual aid agreements for the National
Capital Region. (Public Law 110-250). June 26, 2008.
Amends Section 7302 of the Intelligence Reform and
Terrorism Prevention Act of 2004 (P.L. 108-458), to make
technical changes affecting mutual aid agreements in the
National Capital Region.
H.R. 5683.--To make certain reforms with respect to the
Government Accountability Office, and for other purposes.
(Public Law 110-323). September 22, 2008.
Requires the Government Accountability Office (GAO) to
change certain pay practices and, subject to the availability
of appropriations, compensate employees for certain past
practices. It also would increase the cap on employees' pay.
H.R. 3068.--To prohibit the award of contracts to provide
guard services under the contract security guard program of the
Federal Protective Service to a business concern that is owned,
controlled, or operated by an individual who has been convicted
of a felony. (Public Law 110-356). October 8, 2008.
The purpose of this legislation is to prevent the Federal
Protective Service from awarding contracts for guard services
to companies owned, controlled or operated by individuals
convicted of serious felonies who may present a risk to the
security of Federal employees and Federal property.
S. 1046.--To modify pay provisions relating to certain
senior-level positions in the Federal Government, and for other
purposes. (Public Law 110-372). October 8, 2008.
Raises the maximum pay levels for certain senior
professionals in the Federal Government to match the maximum
pay levels now allowed for members of the Senior Executive
Service (SES), and the bill generally bring the pay system for
senior professionals more in line with the pay system for the
SES. Just as agencies that have certified performance
management systems may now provide to SES members higher pay
than other agencies may provide, this bill will likewise allow
agencies with certified performance management systems to
provide higher pay to covered senior professionals than may
other agencies. S. 1046 also makes a number of clarifications
and technical corrections to the process by which agencies
obtain such certification of their performance management
systems.
S. 2606.--To reauthorize the United States Fire
Administration, and for other purposes. (Public Law 110-376).
October 8, 2008.
Authorizes appropriations for the United States Fire
Administration (USFA) for fiscal years 2009 through 2012, and
authorize USFA's activities related to training, public
education, data collection, research, and national voluntary
consensus standards. With regard to USFA's activities, the
legislation would update the curriculum of the National Fire
Academy, expand on-site training programs for fire service
personnel, upgrade the National Fire Incident Reporting System,
encourage more research related to wildland fires and the
publication of such research, and promote the adoption of
national voluntary consensus standards for firefighter health
and safety. It would also establish a fire service position at
the U.S. Department of Homeland Security's National Operations
Center and require appropriate coordination at all levels of
government with regard to fire prevention and control and
emergency medical services.
S. 2816.--To provide for the appointment of the Chief Human
Capital Officer of the Department of Homeland Security by the
Secretary of Homeland Security. (Public Law 110-388). October
10, 2008.
Provides for the appointment or designation of the Chief
Human Capital Officer (CHCO) of the Department of Homeland
Security (DHS) by the Secretary of Homeland Security, so the
DHS CHCO would be selected in the same manner as all other
department and agency CHCOs.
S. 3477.--To amend title 44, United States Code, to
authorize grants for Presidential Centers of Historical
Excellence. (Public Law 110-404). October 13, 2008.
Seeks to promote funding to preserve, digitize, and provide
online access to documents of historical significance that may
not have received funding in the past. The bill would modify an
existing grant program administered by the National Historical
Publications and Records Commission (``the Commission'') to
specify that grants can support public-private partnerships to
preserve presidential documents that are not included in the
existing Presidential library system. The bill also seeks to
make other key improvements to the system for archiving
Presidential documents.
S. 3536.--To amend section 5402 of title 39, United States
Code, to modify the authority relating to United States Postal
Service air transportation contracts, and for other purposes.
(Public Law 110-405). October 13, 2008.
Authorizes the U.S. Postal Service to contract, through an
open procurement process, for air transportation of mail
between foreign points only with certificated air carriers
(carriers that hold a certificate of public convenience and
necessity issued under specified provisions). Allows a contract
to be awarded to transport mail between any foreign points the
Secretary of Transportation has authorized the carrier to serve
either directly or through a code-share relationship.
Requires that the Postal Service use a method for
determining fair and reasonable prices developed in
consultation with, and with the concurrence of, certificated
air carriers representing at least 51 percent of available ton
miles in the markets of interest. Presumes ceiling prices
determined by that method to be fair and reasonable if they do
not exceed the ceiling prices derived from a weighted average
based on market rate data furnished by the International Air
Transport Association (or its subsidiary unit) or such other
neutral weighted average market rates as the Postal Service,
with the concurrence of such air carriers representing at least
51 percent of available ton miles, may designate.
Additionally, provides for exceptions for emergency or
unanticipated conditions or inadequate lift space; removes
provisions requiring that the Secretary of Transportation set
prices to be paid by the Postal Service for the transportation
of mail by aircraft in foreign air transportation; removes
references to foreign air transportation from provisions
relating to a duty to provide certain transportation of mail;
removes a requirement that the Postal Service make a fair and
equitable distribution of mail business to carriers providing
similar modes of transportation; and modifies provisions
regarding the mail of members of the U.S. Armed Forces and of
friendly foreign nations.
H.R. 928.--To amend the Inspector General Act of 1978 to
enhance the independence of the Inspectors General, to create a
Council of the Inspectors General on Integrity and Efficiency,
and for other purposes. (Public Law 110-409). October 14, 2008.
Amends the Inspector General Act of 1978 to require
Inspectors General (IGs) for designated Federal entities to be
appointed without regard to political affiliation and solely on
the basis of integrity and demonstrated ability in accounting,
auditing, financial analysis, law, management analysis, public
administration, or investigations; requires the President and
the heads of designated Federal entities to communicate to
Congress in writing the reasons for removing or transferring an
IG no later than 30 days before such removal or transfer; sets
the pay for presidentially appointed IGs at Executive Schedule
III plus 3 percent; requires IGs of designated Federal entities
to be classified at a grade, level, or rank designation at or
above those of a majority of the senior level executives of
their entity; and prohibits IGs from receiving cash awards or
bonuses.
H.R. 6098.--To amend the Homeland Security Act of 2002 to
improve the financial assistance provided to State, local, and
tribal governments for information sharing activities, and for
other purposes. (Public Law 110-412). October 14, 2008.
Permits State and local governments to use funds provided
through the State Homeland Security Grant Program (SHSGP) and
the Urban Area Security Initiative (UASI) to pay the salaries
and expenses of individual intelligence analysts beyond the
current two-year limitation for such expenses. The act also
would allow recipients greater flexibility in using grant funds
for various personnel costs.
H.R. 6073.--To provide that Federal employees receiving
their pay by electronic funds transfer shall be given the
option of receiving their pay stubs electronically. (Public Law
110-423). October 15, 2008.
Requires the Office of Personnel Management (OPM) to ensure
that executive agency employees who receive their pay by
electronic funds transfer are given the option of receiving
their pay stubs electronically.
POSTAL NAMING BILLS
H.R. 49.--To designate the facility of the United States
Postal Service located at 1300 North Frontage Road West in
Vail, Colorado, as the ``Gerald R. Ford, Jr. Post Office
Building.'' (Public Law 110-7). March 7, 2007.
H.R. 335.--To designate the facility of the United States
Postal Service located at 152 North 5th Street in Laramie,
Wyoming, as the ``Gale W. McGee Post Office.'' (Public Law 110-
8). March 7, 2007.
H.R. 433.--To designate the facility of the United States
Postal Service located at 1700 Main Street in Little Rock,
Arkansas, as the ``Scipio A. Jones Post Office Building.''
(Public Law 110-9). March 7, 2007.
H.R. 514.--To designate the facility of the United States
Postal Service located at 16150 Aviation Loop Drive in
Brooksville, Florida, as the ``Sergeant Lea Robert Mills
Brooksville Aviation Branch Post Office.'' (Public Law 110-10).
March 7, 2007.
H.R. 577.--To designate the facility of the United States
Postal Service located at 3903 South Congress Avenue in Austin,
Texas, as the ``Sergeant Henry Ybarra III Post Office
Building.'' (Public Law 110-11). March 7, 2007.
H.R. 521.--To designate the facility of the United States
Postal Service located at 2633 11th Street in Rock Island,
Illinois, as the ``Lane Evans Post Office Building.'' (Public
Law 110-12). March 15, 2007.
H.R. 988.--To designate the facility of the United States
Postal Service located at 5757 Tilton Avenue in Riverside,
California, as the ``Lieutenant Todd Jason Bryant Post
Office.'' (Public Law 110-27). May 25, 2007.
H.R. 414.--To designate the facility of the United States
Postal Service located at 60 Calle McKinley, West in Mayaguez,
Puerto Rico, as the ``Miguel Angel Garcia Mendez Post Office
Building.'' (Public Law 110-29). June 1, 2007.
H.R. 437.--To designate the facility of the United States
Postal Service located at 500 West Eisenhower Street in Rio
Grande City, Texas, as the ``Lino Perez, Jr. Post Office.''
(Public Law 110-30). June 1, 2007.
H.R. 625.--To designate the facility of the United States
Postal Service located at 4230 Maine Avenue in Baldwin Park,
California, as the ``Atanacio Haro-Marin Post Office.'' (Public
Law 110-31). June 1, 2007.
H.R. 1402.--To designate the facility of the United States
Postal Service located at 320 South Lecanto Highway in Lecanto,
Florida, as the ``Sergeant Dennis J. Flanagan Lecanto Post
Office Building.'' (Public Law 110-32). June 1, 2007.
S. 1352.--To designate the facility of the United States
Postal Service located at 127 East Locust Street in Fairbury,
Illinois, as the ``Dr. Francis Townsend Post Office Building.''
(Public Law 110-43). July 3, 2007.
H.R. 1260.--To designate the facility of the United States
Postal Service located at 6301 Highway 58 in Harrison,
Tennessee, as the ``Claude Ramsey Post Office.'' (Public Law
110-58). August 9, 2007.
H.R. 1335.--To designate the facility of the United States
Postal Service located at 508 East Main Street in Seneca, South
Carolina, as the ``S/Sgt. Lewis G. Watkins Post Office
Building.'' (Public Law 110-59). August 9, 2007.
H.R. 1425.--To designate the facility of the United States
Postal Service located at 4551 East 52nd Street in Odessa,
Texas, as the ``Staff Sergeant Marvin `Rex' Young Post Office
Building.'' (Public Law 110-61). August 9, 2007.
H.R. 1434.--To designate the facility of the United States
Postal Service located at 896 Pittsburgh Street in Springdale,
Pennsylvania, as the ``Rachel Carson Post Office Building.''
(Public Law 110-62). August 9, 2007.
H.R. 1617.--To designate the facility of the United States
Postal Service located at 561 Kingsland Avenue in University
City, Missouri, as the ``Harriett F. Woods Post Office
Building.'' (Public Law 110-63). August 9, 2007.
H.R. 1722.--To designate the facility of the United States
Postal Service located at 601 Banyan Trail in Boca Raton,
Florida, as the ``Leonard W. Herman Post Office.'' (Public Law
110-64). August 9, 2007.
H.R. 2025.--To designate the facility of the United States
Postal Service located at 11033 South State Street in Chicago,
Illinois, as the ``Willye B. White Post Office Building.''
(Public Law 110-65). August 9, 2007.
H.R. 2077.--To designate the facility of the United States
Postal Service located at 20805 State route 125 in Blue Creek,
Ohio, as the ``George B. Lewis Post Office Building.'' (Public
Law 110-66). August 9, 2007.
H.R. 2078.--To designate the facility of the United States
Postal Service located at 14536 State Route 136 in Cherry Fork,
Ohio, as the ``Staff Sergeant Omer T. `O.T.' Hawkins Post
Office.'' (Public Law 110-67). August 9, 2007.
H.R. 2127.--To designate the facility of the United States
Postal Service located at 408 West 6th Street in Chelsea,
Oklahoma, as the ``Clem Rogers McSpadden Post Office
Building.'' (Public Law 110-68). August 9, 2007.
H.R. 2563.--To designate the facility of the United States
Postal Service located at 309 East Linn Street in Marshalltown,
Iowa, as the ``Major Scott Nisely Post Office.'' (Public Law
110-71). August 9, 2007.
H.R. 2570.--To designate the facility of the United States
Postal Service located at 301 Boardwalk Drive in Fort Collins,
Colorado, as the ``Dr. Karl E. Carson Post Office Building.''
(Public Law 110-72). August 9, 2007.
H.R. 954.--To designate the facility of the United States
Postal Service located at 365 West 125th Street in New York,
New York, as the ``Percy Sutton Post Office Building.'' (Public
Law 110-87). September 28, 2007.
H.R. 2467.--To designate the facility of the United States
Postal Service located at 69 Montgomery Street in Jersey City,
New Jersey, as the ``Frank J. Guarini Post Office Building.''
(Public Law 110-98). October 24, 2007.
H.R. 2587.--To designate the facility of the United States
Postal Service located at 555 South 3rd Street Lobby in
Memphis, Tennessee, as the ``Kenneth T. Whalum, Sr. Post
Office.'' (Public Law 110-99). October 24, 2007.
H.R. 2654.--To designate the facility of the United States
Postal Service located at 202 South Dumont Avenue in
Woonsocket, South Dakota, as the ``Eleanor McGovern Post Office
Building.'' (Public Law 110-100). October 24, 2007.
H.R. 2765.--To designate the facility of the United States
Postal Service located at 44 North Main Street in Hughesville,
Pennsylvania, as the ``Master Sergeant Sean Michael Thomas Post
Office.'' (Public Law 110-101). October 24, 2007.
H.R. 2778.--To designate the facility of the United States
Postal Service located at 3 Quaker Ridge Road in New Rochelle,
New York, as the ``Robert Merrill Postal Station.'' (Public Law
110-102). October 24, 2007.
H.R. 2825.--To designate the facility of the United States
Postal Service located at 326 South Main Street in Princeton,
Illinois, as the ``Owen Lovejoy Princeton Post Office
Building.'' (Public Law 110-103). October 24, 2007.
H.R. 3052.--To designate the facility of the United States
Postal Service located at 954 Wheeling Avenue in Cambridge,
Ohio, as the ``John Herschel Glenn, Jr. Post Office Building.''
(Public Law 110-104). October 24, 2007.
H.R. 3106.--To designate the facility of the United States
Postal Service located at 805 Main Street in Ferdinand,
Indiana, as the ``Staff Sergeant David L. Nord Post Office.''
(Public Law 110-105). October 24, 2007.
H.R. 3233.--To designate the facility of the United States
Postal Service located at Highway 49 South in Piney Woods,
Mississippi, as the ``Laurence C. and Grace M. Jones Post
Office Building.'' (Public Law 110-107). October 26, 2007.
H.R. 2089.--To designate the facility of the United States
Postal Service located at 701 Loyola Avenue in New Orleans,
Louisiana, as the ``Louisiana Armed Services Veterans Post
Office.'' (Public Law 110-121). November 30, 2007.
H.R. 2276.To designate the facility of the United States
Postal Service located at 203 North Main Street in Vassar,
Michigan, as the ``Corporal Christopher E. Esckelson Post
Office Building.'' (Public Law 110-122). November 30, 2007.
H.R. 3297.--To designate the facility of the United States
Postal Service located at 950 West Trenton Avenue in
Morrisville, Pennsylvania, as the ``Nate DeTample Post Office
Building.'' (Public Law 110-123). November 30, 2007.
H.R. 3307.--To designate the facility of the United States
Postal Service located at 570 Broadway in Bayonne, New Jersey,
as the ``Dennis P. Collins Post Office Building.'' (Public Law
110-124). November 30, 2007.
H.R. 3308.--To designate the facility of the United States
Postal Service located at 216 East Main Street in Atwood,
Indiana, as the ``Lance Corporal David K. Fribley Post
Office.'' (Public Law 110-125). November 30, 2007.
H.R. 3325.--To designate the facility of the United States
Postal Service located at 235 Mountain Road in Suffield,
Connecticut, as the ``Corporal Stephen R. Bixler Post Office.''
(Public Law 110-126). November 30, 2007.
H.R. 3382.--To designate the facility of the United States
Postal Service located at 200 North William Street in
Goldsboro, North Carolina, as the ``Philip A. Baddour, Sr. Post
Office.'' (Public Law 110-127). November 30, 2007.
H.R. 3446.--To designate the facility of the United States
Postal Service located at 202 East Michigan avenue in Marshall,
Michigan, as the ``Michael W. Schragg Post Office Building.''
(Public Law 110-128). November 30, 2007.
H.R. 3518.--To designate the facility of the United States
Postal Service located at 1430 South Highway 29 in Cantonment,
Florida, as the ``Charles H. Hendrix Post Office Building.''
(Public Law 110-129). November 30, 2007.
H.R. 3530.--To designate the facility of the United States
Postal Service located at 1400 Highway 41 North in Inverness,
Florida, as the ``Chief Warrant Officer Aaron Weaver Post
Office Building.'' (Public Law 110-130). November 30, 2007.
H.R. 3572.--To designate the facility of the United States
Postal Service located at 4320 Blue Parkway in Kansas City,
Missouri, as the ``Wallace S. Hartsfield Post Office
Building.'' (Public Law 110-131). November 30, 2007.
S. 2174.--To designate the facility of the United States
Postal Service located at 175 South Monroe Street in Tiffin,
Ohio, as the ``Paul E. Gillmor Post Office Building.'' (Public
Law 110-152). December 21, 2007.
H.R. 2011.--To designate the Federal building and United
States courthouse located at 100 East 8th Avenue in Pine Bluff,
Arkansas, as the ``George Howard, Jr. Federal Building and
United States Courthouse.'' (Public Law 110-159). December 26,
2007.
H.R. 3470.--To designate the facility of the United States
Postal Service located at 744 West Oglethorpe Highway in
Hinesville, Georgia, as the ``John Sidney `Sid' Flowers Post
Office Building.'' (Public Law 110-162). December 26, 2007.
H.R. 3569.--To designate the facility of the United States
Postal Service located at 16731 Santa Ana Avenue in Fontana,
California, as the ``Beatrice E. Watson Post Office Building.''
(Public Law 110-163). December 26, 2007.
H.R. 3974.--To designate the facility of the United States
Postal Service located at 797 Sam Bass Road in round Rock,
Texas, as the ``Marine Corps Corporal Steven P. Gill Post
Office Building.'' (Public Law 110-165). December 26, 2007.
H.R. 4009.--To designate the facility of the United States
Postal Service located at 567 West Nepessing Street in Lapeer,
Michigan, as the ``Turrill Post Office Building.'' (Public Law
110-167). December 26, 2007.
S. 1896.--To designate the facility of the United States
Postal Service located at 11 Central Street in Hillsborough,
New Hampshire, as the ``Officer Jeremy Todd Charron Post
Office.'' (Public Law 110-169). December 26, 2007.
S. 2110.--To designate the facility of the United States
Postal Service located at 427 North Street in Taft, California,
as the ``Larry S. Pierce Post Office.'' (Public Law 110-184).
February 6, 2008.
S. 2478.--To designate the facility of the United States
Postal Service located at 59 Colby Corner in East Hampstead,
New Hampshire, as the ``Captain Jonathan D. Grassbaugh Post
Office.'' (Public Law 110-194). March 11, 2008.
S. 2272.--To designate the facility of the United States
Postal Service known as the Southpark Station in Alexandria,
Louisiana, as the John ``Marty'' Thiels Southpark Station, in
honor and memory of Thiels, a Louisiana postal worker who was
killed in the line of duty on October 4, 2007. (Public Law 110-
195). March 12, 2008.
H.R. 3196.--To designate the facility of the United States
Postal Service located at 20 Sussex Street in Port Jervis, New
York, as the ``E. Arthur Gray Post Office Building.'' (Public
Law 110-210). May 7, 2008.
H.R. 3468.--To designate the facility of the United States
Postal Service located at 1704 Weeksville Road in Elizabeth
City, North Carolina, as the ``Dr. Clifford Bell Jones, Sr.
Post Office.'' (Public Law 110-211). May 7, 2008.
H.R. 3532.--To designate the facility of the United States
Postal Service located at 5815 McLeod Street in Lula, Georgia,
as the ``Private Johnathon Millican Lula Post Office.'' (Public
Law 110-212). May 7, 2008.
H.R. 3720.--To designate the facility of the United States
Postal Service located at 424 Clay Avenue in Waco, Texas, as
the ``Army FPC Juan Alonso Covarrubias Post Office Building.''
(Public Law 110-213). May 7, 2008.
H.R. 3803.--To designate the facility of the United States
Postal Service located at 3100 Cashwell Drive in Goldsboro,
North Carolina, as the ``John Henry Wooten, Sr. Post Office
Building.'' (Public Law 110-214). May 7, 2008.
H.R. 3936.--To designate the facility of the United States
Postal Service located at 116 Helen Highway in Cleveland,
Georgia, as the ``Sgt. Jason Harkins Post Office Building.''
(Public Law 110-215). May 7, 2008.
H.R. 3988.--To designate the facility of the United States
Postal Service located at 3701 Altamesa Boulevard in Fort
Worth, Texas, as the ``Master Sergeant Kenneth N. Mack Post
Office Building.'' (Public Law 110-216). May 7, 2008.
H.R. 4166.--To designate the facility of the United States
Postal Service located at 701 East Copeland Drive in Lebanon,
Missouri, as the ``Steve W. Allee Carrier Annex.'' (Public Law
110-217). May 7, 2008.
H.R. 4203.--To designate the facility of the United States
Postal Service located at 3035 Stone Mountain Street in
Lithonia, Georgia, as the ``Specialist Jamaal RaShard Addison
Post Office Building.'' (Public Law 110-218). May 7, 2008.
H.R. 4211.--To designate the facility of the United States
Postal Service located at 725 Roanoke Avenue in Roanoke Rapids,
North Carolina, as the ``Judge Richard B. Allsbrook Post
Office.'' (Public Law 110-219). May 7, 2008.
H.R. 4240.--To designate the facility of the United States
Postal Service located at 10799 West Alameda Avenue in
Lakewood, Colorado, as the ``Felix Sparks Post Office
Building.'' (Public Law 110-220). May 7, 2008.
H.R. 4454.--To designate the facility of the United States
Postal Service located at 3050 Hunsinger Lane in Louisville,
Kentucky, as the ``Iraq and Afghanistan Fallen Military Heroes
of Louisville Memorial Post Office Building,'' in honor of the
servicemen and women from Louisville, Kentucky, who dies in
service during Operation Enduring Freedom and Operation Iraqi
Freedom. (Public Law 110-221). May 7, 2008.
H.R. 5135.--To designate the facility of the United States
Postal Service located at 201 West Greenway Street in Derby,
Kansas, as the ``Sergeant Jamie O. Maugans Post Office
Building.'' (Public Law 110-222). May 7, 2008.
H.R. 5220.--To designate the facility of the United States
Postal Service located at 3800 SW. 185th Avenue in Beaverton,
Oregon, as the ``Major Arthur Chin Post Office Building.''
(Public Law 110-223). May 7, 2008.
H.R. 5400.--To designate the facility of the United States
Postal Service located at 160 East Washington Street in Chagrin
Falls, Ohio, as the ``Sgt. Michael M. Kashkoush Post Office
Building.'' (Public Law 110-224). May 7, 2008.
H.R. 3721.--To designate the facility of the United States
Postal Service located at 1190 Lorena Road in Lorena, Texas, as
the ``Marine Gunnery Sgt. John D. Fry Post Office Building.''
(Public Law 110-265). July 15, 2008.
H.R. 4185.--To designate the facility of the United States
Postal Service located at 11151 Valley Boulevard in El Monte,
California, as the ``Marisol Heredia Post Office Building.''
(Public Law 110-267). July 15, 2008.
H.R. 5168.--To designate the facility of the United States
Postal Service located at 19101 Cortez Boulevard in
Brooksville, Florida, as the ``Cody Grater Post Office
Building.'' (Public Law 110-268). July 15, 2008.
H.R. 5395.--To designate the facility of the United States
Postal Service located at 11001 Dunklin Drive in St. Louis,
Missouri, as the ``William `Bill' Clay Post Office Building.
(Public Law 110-269). July 15, 2008.
H.R. 5479.--To designate the facility of the United States
Postal Service located at 117 North Kidd Street in Ionia,
Michigan, as the ``Alonzo Woodruff Post Office Building.''
(Public Law 110-270). July 15, 2008.
H.R. 5517.--To designate the facility of the United States
Postal Service located at 7231 FM 1960 in Numble, Texas, as the
``Texas Military Veterans Post Office.'' (Public Law 110-271).
July 15, 2008.
H.R. 5528.--To designate the facility of the United States
Postal Service located at 120 Commercial Street in Brockton,
Massachusetts, as the ``Rocky Marciano Post Office Building.''
(Public Law 110-272). July 15, 2008.
S. 3145.--To designate a portion of United States Route
20A, located in Orchard Park, New York, as the ``Timothy J.
Russert Highway. (Public Law 110-282). July 23, 2008.
H.R. 4210.--To designate the facility of the United States
Postal Service located at 401 Washington Avenue in Weldon,
North Carolina, as the ``Dock M. Brown Post Office Building.''
(Public Law 110-303). August 12, 2008.
H.R. 5477.--To designate the facility of the United States
Postal Service located at 120 South Del Mar Avenue in San
Gabriel, California, as the ``Chi Mui Post Office Building.''
(Public Law 110-305). August 12, 2008.
H.R. 5483.--To designate the facility of the United States
Postal Service located at 10449 White Granite Drive in Oakton,
Virginia, as the ``Private First Class David H. Sharrett II
Post Office Building.'' (Public Law 110-306). August 12, 2008.
H.R. 5631.--To designate the facility of the United States
Postal Service located at 1155 Seminole Trail in
Charlottesville, Virginia, as the ``Corporal Bradley T. Arms
Post Office Building.'' (Public Law 110-307). August 12, 2008.
H.R. 6061.--To designate the facility of the United States
Postal Service located at 219 East Main Street in West
Frankfort, Illinois, as the ``Kenneth James Gray Post Office
Building.'' (Public Law 110-308). August 12, 2008.
H.R. 6085.--To designate the facility of the United States
Postal Service located at 42222 Rancho Las Palmas Drive in
Rancho Mirage, California, as the ``Gerald R. Ford Post Office
Building.'' (Public Law 110-309). August 12, 2008.
H.R. 6150.--To designate the facility of the United States
Postal Service located at 14500 Lorain Avenue in Cleveland,
Ohio, as the ``John P. Gallagher Post Office Building.''
(Public Law 110-310). August 12, 2008.
S. 171.--To designate the facility of the United States
Postal Service located at 301 Commerce Street in Commerce,
Oklahoma, as the ``Mickey Mantle Post Office Building.''
(Public Law 110-331). September 30, 2008.
S. 3241.--To designate the facility of the United States
Postal Service located at 1717 Orange Avenue in Fort Pierce,
Florida, as the ``CeeCee Ross Lyles Post Office Building.''
(Public Law 110-333). September 30, 2008.
H.R. 5975.--To designate the facility of the United States
Postal Service located at 101 West Main Street in Waterville,
New York, as the ``Cpl. John P. Sigsbee Post Office.'' (Public
Law 110-347). October 7, 2008.
H.R. 6092.--To designate the facility of the United States
Postal Service located at 101 Tallapoosa Street in Bremen,
Georgia, as the ``Sergeant Paul Saylor Post Office Building.''
(Public Law 110-348). October 7, 2008.
H.R. 6437.--To designate the facility of the United States
Postal Service located at 200 North Texas Avenue in Odessa,
Texas, as the ``Corporal Alfred Mac Wilson Post Office.''
(Public Law 110-349). October 7, 2008.
S. 3015.--To designate the facility of the United States
Postal Service located at 18 S. G Street, Lakeview, Oregon, as
the ``Dr. Bernard Daly Post Office Building.'' (Public Law 110-
352). October 7, 2008.
S. 3082.--To designate the facility of the United States
Postal Service located at 1700 Cleveland Avenue in Kansas City,
Missouri, as the ``Reverend Earl Abel Post Office Building.''
(Public Law 110-353). October 7, 2008.
H.R. 4010.--To designate the facility of the United States
Postal Service located at 100 West Percy Nepessing Street in
Indianola, Mississippi, as the ``Minnie Cox Post Office
Building.'' (Public Law 110-440). October 21, 2008.
VIII. PRESIDENTIAL NOMINATIONS
The Committee received a total of 44 Presidential
nominations during the 110th Congress. Of these, 22 were
reported favorably and confirmed by the Senate, 10 were
discharged from Committee and confirmed, 6 were withdrawn by
the President, and 6 were not acted upon by the Committee.
Hearing dates and reports on these nominations appear in
Section IV.
The following 17 nominations were favorably reported by the
Committee and confirmed by the Senate:
Julie L. Myers, of Kansas, to be Assistant Secretary of
Homeland Security, Department of Homeland Security; vice
Michael J. Garcia. Confirmed December 19, 2007.
Gregory B. Cade, of Virginia, to be Administrator of the
United States Fire Administration, Department of Homeland
Security; vice R. David Paulison, resigned. Confirmed May 25,
2007.
Heidi M. Pasichow, of the District of Columbia, to be
Associate Judge of the Superior Court of the District of
Columbia for a term of fifteen years; vice Anna Blackburne-
Rigsby, elevated. Confirmed August 1, 2008.
Carol A. Dalton, of the District of Columbia, to be
Associate Judge of the Superior Court of the District of
Columbia for the term of fifteen years; vice A. Noel Anketell
Kramer, elevated. Confirmed August 1, 2008.
Anthony C. Epstein, of the District of Columbia, to be
Associate Judge of the Superior Court of the District of
Columbia for the term of fifteen years; vice Susan Rebecca
Holmes, retired. Confirmed August 1, 2008.
Michael W. Tankersley, of Texas, to be Inspector General,
Export-Import Bank. (New Position) Confirmed June 28, 2007.
Howard C. Weizmann, of Maryland, to be Deputy Director of
the Office of Personnel Management; vice Dan Gregory Blair.
Confirmed June 28, 2007.
Ellen C. Williams, of Kentucky, to be a Governor of the
United States Postal Service, United States Postal Service;
vice for a term expiring December 8, 2014. (Reappointment)
Confirmed June 4, 2008.
Claude M. Kicklighter, of Georgia, to be Inspector General,
Department of Defense; vice Joseph E. Schmitz, resigned.
Confirmed April 12, 2007.
Carol W. Pope, of the District of Columbia, to be a Member
of the Federal Labor Relations Authority for the term of five
years expiring July 1, 2009. (Reappointment) Confirmed October
2, 2008.
Dennis R. Schrader, of Maryland, to be Deputy
Administrator, Federal Emergency Management Agency, Department
of Homeland Security. (New Position) Confirmed August 3, 2007.
Steven H. Murdock, of Texas, to be Director of the Census,
Department of Commerce; vice Louis Kincannon. Confirmed
December 19, 2007.
James A. Nussle, of Iowa, to be Director, Office of
Management and Budget; vice Robert J. Portman. Confirmed
September 4, 2007.
W. Ross Ashley III, of Virginia, to be Associate
Administrator for Grant Programs of the Federal Emergency
Management Agency, U.S. Department of Homeland Security. (New
Position) Confirmed December 19, 2007.
Jeffrey W. Runge, of North Carolina, to be Assistant
Secretary for Health Affairs and Chief Medical Officer, U.S.
Department of Homeland Security. (New Position) Confirmed
December 19, 2007.
Todd J. Zinser, of Virginia, to be Inspector General,
Department of Commerce, vice Johnnie E. Frazier, resigned.
Confirmed December 19, 2007.
Eric M. Thorson, of Virginia, to be Inspector General,
Department of the Treasury, vice Harold Damelin, resigned.
Confirmed August 1, 2008.
Harvey E. Johnson, Jr., of Virginia, to be Deputy
Administrator, Federal Emergency Management Agency, Department
of Homeland Security. Confirmed June 27, 2008.
Thomas M. Beck, of Virginia, to be a Member of the Federal
Labor Relations Authority for a term of five years expiring
July 1, 2010, vice Wayne Cartwright Beyer, resigned. Confirmed
October 2, 2008.
Robert D. Jamison, of Virginia, to be an Under Secretary of
Homeland Security, vice George W. Foresman, resigned. Confirmed
December 19, 2007.
Paul A. Schneider, of Maryland, to be Deputy Secretary,
U.S. Department of Homeland Security, vice Michael Jackson,
resigned. Confirmed June 4, 2008.
Nanci E. Langley, of Virginia, to be a Commissioner of the
Postal Regulatory Commission for a term expiring November 22,
2012, vice Dawn A. Tisdale, term expired. Confirmed June 4,
2008.
Elaine C. Duke, of Virginia, to be Under Secretary for
Management, U.S. Department of Homeland Security, vice Paul A.
Schneider. Confirmed June 27, 2008.
Ruth Y. Goldway, of California, to be a Commissioner of the
Postal Regulatory Commission for the term expiring November 22,
2014. (Reappointment) Confirmed October 2, 2008.
Alfred S. Irving, Jr., of the District of Columbia, to be
an Associate Judge of the Superior Court of the District of
Columbia, for the term of fifteen years, vice Mary Ann Gooden
Terrell, retired. Confirmed November 20, 2008.
Kathryn A. Oberly, of the District of Columbia, to be an
Associate Judge of the District of Columbia Court of Appeals
for the term of fifteen years, vice Michael W. Farrell,
retired. Confirmed November 20, 2008.
Neil M. Barofsky, of New York, to be Special Inspector
General for the Troubled Asset Relief Program, Department of
the Treasury (New Position) Confirmed December 8, 2008.
The following 5 nominations were favorably reported by the
Committee but not acted upon by the Senate. Each was returned
to the President under provisions of Senate Rule XXXI,
paragraph 6, of the Standing Rules of the Senate:
Andrew Saul, of New York, to be a Member of the Federal
Retirement Thrift Investment Board for a term expiring
September 25, 2012. (Reappointment) Returned January 2, 2009.
Gordon J. Whiting, of New York, to be a Member of the
Federal Retirement Thrift Investment Board for a term expiring
September 25, 2010. (Reappointment) Returned January 2, 2009.
Alejandro M. Sanchez, of Florida, to be a Member of the
Federal Retirement Thrift Investment Board for a term expiring
October 11, 2010. (Reappointment) Returned January 2, 2009.
Gus P. Coldebella, of Massachusetts, to be General Counsel,
U.S. Department of Homeland Security; vice Philip J. Perry,
resigned. Returned January 2, 2009.
James A. Williams, of Virginia, to be Administrator, U.S.
General Services Administration; vice Lurita Alexis Doan,
resigned. Returned January 2, 2009.
The following 6 nominations were withdrawn by the
President:
Wayne Cartwright Beyer, of New Hampshire, to be a Member of
the Federal Labor Relations Authority for a term of five years
expiring July 1, 2010; vice Othoniel Armendariz, to which
position he was appointed during the last recess of the Senate.
Withdrawn December 14, 2007.
Ellen C. Williams, of Kentucky, to be a Governor, United
States Postal Service; vice for a term expiring December 8,
2016. (Reappointment) Withdrawn February 12, 2007.
Dale Cabaniss, of Virginia, to be a Member of the Federal
Labor Relations Authority for a term of five years expiring
July 29, 2012. (Reappointment) Withdrawn June 28, 2007.
Thomas M. Beck, of Virginia, to be a Member of the Federal
Labor Relations Authority for a term of five years expiring
July 29, 2012; vice Dale Cabaniss, term expiring. Withdrawn
December 14, 2007.
Robert D. Jamison, of Virginia, to be Under Secretary for
National Protection and Programs, Department of Homeland
Security, vice George W. Foresman, resigned. Withdrawn December
19, 2007.
Harvey E. Johnson, Jr., of Virginia, to be Deputy
Administrator and Chief Operating Officer, Federal Emergency
Management Agency, Department of Homeland Security. Withdrawn
December 12, 2007.
The following 6 nominations were not acted upon by the
Committee. Each was returned to the President under provisions
of Senate Rule XXXI, paragraph 6, of the Standing Rules of the
Senate:
Susan E. Dudley, of Virginia, to be Administrator of the
Office of Information and Regulatory Affairs, Office of
Management and Budget; vice John D. Graham, resigned. Recieved
in the Senate January 9, 2007.Returned January 2, 2009.
Susan E. Dudley, of Virginia, to be Administrator of the
Office of Information and Regulatory Affairs, Office of
Management and Budget, vice John D. Graham, resigned, to which
position she was appointed during the last recess of the
Senate. Received in the Senate May 16, 2007. Returned January
2, 2009.
Brandon Chad Bungard, of Virginia, to be General Counsel of
the Federal Labor Relations Authority for a term of five years,
vice Colleen Duffy Kiko, resigned. Received in the Senate April
2, 2008. Returned January 2, 2009.
Michael W. Hager, of Virginia, to be director of the Office
of Personnel Management for a term of four years, vice Linda M.
Springer. Received in the Senate August 1, 2008. Returned
January 2, 2009.
Paul A. Quander, Jr., of the District of Columbia, to be
Director of the Court Services and Offender Supervision Agency
for the District of Columbia for a term of six years.
(Reappointment). Received in the Senate September 21, 2008.
Returned January 2, 2009.
Robert W. McGowan, of Nevada, to be a Governor of the
United States Postal Service for a term expiring December 8,
2015, vice Alan Craig Kessler, term expiring. Received in the
Senate September 30, 2008. Returned January 2, 2009.
IX. ACTIVITIES OF THE SUBCOMMITTEES
SUBCOMMITTEE ON FEDERAL FINANCIAL
MANAGEMENT, GOVERNMENT INFORMATION,
FEDERAL SERVICES, AND INTERNATIONAL SECURITY
The Subcommittee on Federal Financial Management,
Government Information, Federal Services, and International
Security held the following hearings during the 110th Congress.
Chairman: Thomas R. Carper
Ranking Minority Member: Tom Coburn
I. Hearings 2007-2008
Improving Federal Financial Management: Progress Made and the
Challenges Ahead (March 1, 2007)
The hearing focused on the improvements made in Federal
financial management over the years, particularly since the
passage of the Chief Financial Officers Act of 1990 (CFO ACT).
It will also examine the accomplishments and goals discussed in
the 2007 Federal Financial Management Report recently issued by
OMB's Office of Federal Financial Management (OFFM).
Witnesses: David M. Walker, Comptroller General of the
United States, GAO; Linda M. Combs, Controller, Office of
Federal Financial Management (OFFM).
Eliminating and Recovering Improper Payments (March 29, 2007)
The hearing focused on the progress agencies are making in
implementing the Improper Payments Information Act of 2002 and
the Recovery Auditing Act of 2001, which was enacted as part of
the FY 2002 National Defense Authorization Act. It will also
examine the accomplishments and goals discussed in the report
entitled ``Improving the Accuracy and Integrity of Federal
Payments'' released by OMB's Office of Federal Financial
Management (OFFM) on January 31, 2007
Witnesses: Linda M. Combs, Controller, OFFM, OMB; McCoy
Williams, Director, Financial Management and Assurance, GAO;
John W. Cox, Chief Financial Officer, Department of Housing and
Urban Development; David M. Norquist, Chief Financial Officer,
Department of Homeland Security; Timothy B. Hill, Chief
Financial Officer, the Centers for Medicare and Medicaid
Services; Terry Bowie, Deputy Chief Financial Officer, NASA;
Lee White, Executive Vice President for U.S. Operations, PRG-
Schultz.
The Road Ahead: Implementing Postal Reform (April 19, 2007)
The hearing focused on the current state of the Postal
Service. It will also examine the progress being made at the
Postal Service and the Postal Regulatory Commission (formerly
the Postal Rate Commission) in implementing the Postal
Accountability and Enhancement Act (Public Law 109-435), the
comprehensive postal reform legislation signed into law by the
President in December.
Witnesses: John E. Potter, Postmaster General and Chief
Executive Officer, U.S. Postal Service; Dan G. Blair, Chairman,
Postal Regulatory Commission; Kate Siggerud, Physical
Infrastructure, GAO.
Federal Real Property: Real Waste in Need of Real Reform (May 24, 2007)
The hearing focused on the findings in the recent GAO High
Risk List update on Federal real property management: Federal
Real Property: Progress Made Toward Addressing Problems, but
Underlying Obstacles Continue to Hamper Reform (GAO-07-349). It
will also examine agencies' progress in implementing Executive
Order 13327, issued in February 2004 a year after Federal real
property management was first placed on GAO's High Risk list.
Witnesses: Clay Johnson, Deputy Director for Management,
OMB; Mark L. Goldstein, Director, Physical Infrastructure, GAO;
Boyd Rutherford, Assistant Secretary for Administration, USDA;
David Winstead, Commissioner, Public Buildings Service, GSA;
Phillip Grone, Deputy Under Secretary for Installations and
Environment, DOD; Robert Henke, Assistant Secretary for
Management, U.S. Department of Veterans Affairs (VA).
Meeting the Challenge: Are Missed Opportunities Costing Us Money? (June
28, 2007)
The hearing focused on the findings in a recent GAO report
on the Department of Homeland Security's (DHS) challenges in
modernizing its financial management systems: Homeland
Security: Department-wide Integrated Financial Management
Systems Remain a Challenge. It will also focus on the progress
made by the department since GAO's prior report in putting into
place the financial management systems and processes needed to
support the department's mission and operations.
Witnesses: McCoy Williams, Director, Financial Management
and Assurance, GAO; Keith Rhodes, Chief Technologist, Applied
Research and Methods, Center for Engineering and Technology,
GAO; David Norquist, Chief Financial Officer, DHS; Scott
Charbo, Chief Information Officer, DHS.
Preparing for 2010: Is the Census Bureau Ready For the Job Ahead? (July
17, 2007)
The hearing focused on the efforts the Census Bureau has
undertaken to date to prepare for the 2010 Census.
Witnesses: Louis I. Kincannon, Director, U.S. Census
Bureau; Matthew J. Scirce, Director, Strategic Issues, GAO;
David A. Powner, Director, Information Technology, GAO; Andrew
Reamer, Fellow, Metropolitan Policy Institute, The Brookings
Institution; Maurice McTigue, Vice President, Director of the
Government Accountability Project, and Distinguished Visiting
Scholar Mercatus Center at George Mason University.
Views From the Postal Workforce on Implementing Postal Reform (July 25,
2007)
The hearing is the second the Subcommittee has held this
year to take testimony on the implementation of the Postal
Accountability and Enhancement Act of 2006, H.R. 6407,
legislation that was signed into law in December.
Witnesses: William Burrus, President, American Postal
Workers Union; John Hegarty, President, National Postal Mail
Handlers Union; Donnie Pitts, President, National Rural Letter
Carriers Association; William H. Young, President, National
Association of Letter Carriers; Louis Atkins, Executive Vice
President, National Association of Postal Supervisors; Dale
Goff, President, National Association of Postmasters of the
United States.
Service Standards at the Postal Service: Are Customers Getting What
They Paid For? (August 2, 2007)
The hearing will be the third the Subcommittee has held
this year to take testimony on the implementation of the Postal
Accountability and Enhancement Act of 2006 (H.R. 6407),
legislation that was signed into law in December. This hearing
focused on the implementation of Title III of the Act, which
calls for the creation of service standards for most postal
products.
Witnesses: John E. Potter, Postmaster General, U.S. Postal
Service; Dan G. Blair, Chairman, Postal Regulatory Commission;
Jody Berenblatt, Senior Vice President for Postal Strategy,
Bank of America; Anthony Conway, Executive Director, Alliance
of Nonprofit Mailers; Robert McLean, Executive Director,
Mailers Council; James West, Director of Postal and Legislative
Affairs, Williams-Sonoma, Inc.
High-Risk Information Technology Projects: Is Poor Management Leading
to Billions in Waste? (September 20, 2007)
The hearing focused on the Office of Management and
Budget's ability to properly analyze, track, and evaluate
information system investments that have been poorly planned
and underperforming. In addition, five agencies will be
testifying on a separate panel regarding their own agency's
management of projects that have been identified OMB as ``at
risk.'' This hearing is a follow-up to one held last September.
Witnesses: Hon. Karen Evans, Administrator for Electronic
Government and Information Technology, Office of Management and
Budget; David A. Powner, Director, Information Technology,
Government Accountability Office; Barry West, Chief Information
Officer, Department of Commerce; Daniel Mintz, Chief
Information Officer, Department of Transportation; Michael
Duffy, Deputy Assistant Secretary for Information Systems and
Chief Information Officer, Department of Treasury; Scott
Charbo, Chief Information Officer, Department of Homeland
Security; Paul Brinkley, Deputy Undersecretary for Business
Transformation, Department of Defense.
Cost Effective Airlift in the 21st Century (September 27, 2007)
The hearing focused on how to meet the U.S.'s strategic
airlift demands in a cost effective way. Strategic Airlift
allows the U.S. military to deliver much needed cargo,
supplies, weapon systems, and troops anywhere in the world and
also allows the U.S. to respond militarily to threats abroad in
real time. This capability is currently being fulfilled
admirably by the C-5 and the C-17.
As the strategic airlift fleet gets older, the question is
how do we sustain this capability in a cost-effective manner?
Two options are currently on the table: The first is to
modernize existing C-5s in order to increase the performance
and reliability of the C-5 fleet, and thus enhance the
capability; the second option is to retire older C-5s and use
the funding to procure newer C-17s. A clear decision on which
option to pursue has not officially occurred, and this hearing
will comprehensively explore the arguments for and against each
option in order to achieve the most cost effective option.
Witnesses: Ms. Sue Payton, Assistant Secretary of the Air
Force for Acquisition; General Norton A. Schwartz, Commander of
U.S. Transportation Command; Mr. Christopher Bolkcom,
Specialist in National Defense, Congressional Research Service;
Larry J. McQuien, Vice President, Business Venture, Lockheed
Martin Aeronautics Company.
Improving Financial and Business Management at the Department of
Defense (October 16, 2007)
The hearing will examine the Department of Defense's (DOD)
financial management as it relates to the department's overall
business transformation process. This is a follow-up to a
hearing held in August 2006.
The focus of the hearing will be on the Department of
Defense's Financial Improvement and Audit Readiness (FIAR)
plan, Enterprise Transition Plan (ETP), and how both plans link
into DOD's overall business transformation strategy. There will
be particular focus on the recent establishment of a Chief
Management Officer within the department.
Witnesses: Hon. David Walker, Comptroller General,
Government Accountability Office; Mr. J. David Patterson,
Principal Deputy Under Secretary of Defense (Comptroller),
Department of Defense; Mr. Paul Brinkley, Deputy Under
Secretary, Business Transformation, Department of Defense; Mr.
Dov S. Zakheim, former Under Secretary of Defense
(Comptroller).
Single Audits: Are They Helping To Safeguard Federal Funds? (October
25, 2007)
The hearing will examine the implementation of the Single
Audit Act, which as you know is a key mechanism used by the
Federal Government to monitor hundreds of billions in Federal
Grants and other types of Federal assistance annually.
The President's Council on Integrity and Efficiency issued
a report in June 2007 that identified a number of issues
related to the execution of these single audits. The report
projected that based on the single audits reviewed in a
statistical sample:
L49 percent of the universe was acceptable and
could be relied upon,
L16 percent of the universe had significant
deficiencies and was of limited reliability, and
L35 percent of the universe was unacceptable and
could not be relied upon.
The study noted that audits of entities that expended more
than $50 million were of noticeably higher quality than those
that spent less than $50 million.
The hearing focused on the results of this study and the
various roles oversight organizations have in monitoring single
audits. The hearing will also explore the study's
recommendations and the potential impact that implementing the
recommendations could have to help ensure Federal funds are
safeguarded.
Witnesses: Jeanette Franzel, Director, Government
Accountability Office (GAO develops governmental audit
standards); Hugh Monaghan, Director, Non-Federal Audits, U.S.
Department of Education Office of Inspector General; Daniel
Werfel, Acting Controller, Office of Management and Budget;
Mary Foelster, Director, Governmental Auditing and Accounting,
American Institute of Certified Public Accountants.
Small Business Administration: Is the 7(a) Program Achieving Measurable
Outcomes? (November 1, 2007)
The hearing focused on a recent report from GAO (GAO-07-
769) on the Small Business Administration's efforts to measure
the performance of its 7(a) loan program.
Witnesses: William B. Shear, Director, Financial Markets
and Community Investment, Government Accountability Office;
Grady Hedgespeth, Director of Financial Assistance, Office of
Capital Access, Small Business Administration; Anthony R.
Wilkinson, President and CEO, the National Association of
Government Guaranteed Lenders; Veronique de Rugy, Senior
Research Fellow, the Mercatus Center at George Mason
University.
Management and Oversight of Contingency Contracting in Hostile Zones
(January 24, 2008)
The focus of the joint hearing with the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia hearing will be contracting practices
in Iraq and Afghanistan.
Witnesses: Stuart W. Bowen, Jr. Special Inspector General
for Iraq Reconstruction; William M. Solis, Director, Defense
Capabilities and Management, Government Accountability Office;
Dina L. Rasor, Director, Follow the Money Project, and co-
author of Betraying Our Troops: The Destructive Results of
Privatizing War, with Robert H. Bauman, co-author Betraying our
Troops: The Destructive Results of Privatizing War; First
Sergeant Perry Jefferies, U.S. Army (Ret.); Hon. P. Jackson
(``Jack'') Bell, Deputy Under Secretary for Logistics and
Materiel Readiness, Department of Defense; Gen. David M.
Maddox, U.S. Army (Ret.), Former Commander-in-Chief, U.S. Army
Europe; Member of the Gansler Commission; Ambassador John
Herbst, Coordinator for Reconstruction and Stabilization,
Department of State; William H. Moser, Deputy Assistant
Secretary for Logistics Management, Department of State; James
R. Kunder, Acting Deputy Assistant Administrator, U.S. Agency
for International Development.
Eliminating Agency Payment Errors (January 31, 2008)
The hearing focused on agencies' improper payments
estimates for FY07. According to agencies' FY07 financial
statements and a summary improper payments report set to be
issued by OMB this week, nearly $55 billion in improper
payments are estimated to have been made in FY07. This is up
from $41 billion in FY06, $38 billion in FY05, and $45 billion
in FY04. GAO has released an analysis of the new numbers in a
January 23 report (GAO-08-377R) that includes a list of each
agencies reported error estimates.
Witnesses: Danny Werfel, Deputy Controller, Office of
Budget and Management; McCoy Williams, Managing Director,
Financial Management and Assurance Team, U.S. Government
Accountability Office; Charles Christopherson, Chief Financial
Officer and Chief Information Officer, U.S. Department of
Agriculture; Anthony Dale, Managing Director, Federal
Communications Commission; Charles Johnson, Assistant Secretary
and Chief Financial Officer, Resources and Technology; U.S.
Department of Health and Human Services; David Rust, Acting
Deputy Commissioner, Disability and Income Security Programs,
U.S. Social Security Administration.
The State of the U.S. Postal Service One Year After Reform (March 5,
2008)
The Postal Accountability and Enhancement Act of 2006--the
first major reform of the Postal Service in more than 30
years--was signed into law in December 2007. Since then, the
Postal Rate Commission has become the Postal Regulatory
Commission and, in October 2007, established a new postal
pricing system mandated by the Act that features a CPI-based
price cap. In addition, the Postal Service met its statutory
mandate at the end of 2007 to publish a new set of service
standards for its Market Dominant products that take into
account such things as the new Act, the current mailing
economy, and projected future demand and need for postal
services.
Going forward, there are still a number of reports and
other actions expected over the course of the year as a result
of the Act. The Postal Service will be issuing a report in July
on how it plans to reorganize itself, including its workforce
and facilities network, to meet the new service standards it
set last year. In addition, the Regulatory Commission is
working to set new Postal Service accounting standards, to
prepare its first annual report on whether the Postal Service
is operating in compliance with the Act, and to publish a year-
end report on the status and history of the Postal Service's
universal service obligation and monopoly.
Witnesses: John E. Potter, Postmaster General/CEO, U.S.
Postal Service; Dan G. Blair, Chairman, Postal Regulatory
Commission.
Agencies in Peril: Are We Doing Enough To Protect Federal IT and Secure
Sensitive Information (March 12, 2008)
The hearing will examine select agencies' compliance with
and implementation of the Federal Information Security
Management Act (FISMA) that was passed under Title III of the
E-Government Act of 2002. In addition, the hearing will review
OMB's and agency CIOs ability to measure and track progress in
implementing information security policies and procedures. The
hearing focused on what constructive and proactive measures
Congress, OMB, and agencies can undertake to cost-effectively
secure government information systems.
Witnesses: Hon. Karen Evans, Administrator of E-Government
and Information Technology, Office of Management and Budget;
Gregory Wilshusen, Director, Information Security Issues,
Government Accountability Office; Tim Bennett, President, Cyber
Security Industry Alliance; Hon. Robert Howard, Department of
Veteran Affairs; Susan Swart, Chief Information Officer,
Department of State; Daren Ash, Chief Information Officer,
Nuclear Regulatory Commission; Phil Heneghan, Chief Information
Security Officer, U.S. Agency for International Development.
Addressing Iran's Nuclear Ambitions (April 24, 2008)
The focus of the hearing is what the most effective policy
options are regarding Iran moving forward.
Witnesses: Mr. Jeffrey Feltman, Principal Deputy Assistant
Secretary for Near Eastern Affairs, U.S. Department of State;
Ms. Patricia McNerney, Principal Deputy Assistant Secretary for
International Security and Nonproliferation, U.S. Department of
State; Hon. Dennis Ross, Counselor and Ziegler Distinguished
Fellow, Washington Institute for Near East Policy, and Former
Middle East envoy in both George H.W. Bush and Bill Clinton
Administrations; Hon. Stephen Rademaker, Senior Counsel,
Barbour Griffith and Rogers, LLC, and Former Assistant
Secretary of Arms Control and Nonproliferation under President
George W. Bush, and Former National Security Advisor to Senate
Majority Leader Bill Frist; Dr. Graham Allison, Director of the
Belfer Center for Science and International Affairs and Douglas
Dillon Professor of Government, Harvard University's John F.
Kennedy School of Government, and Former Special Advisor to
Secretary of Defense under President Reagan, and Former
Assistant Secretary of Defense for Policy and Plans under
President Clinton; Dr. Jim Walsh, Research Associate,
Massachusetts Institute of Technology, and Former Executive
Director of the Managing the Atom Project, Belfer Center for
Science and International Affairs at Harvard University's John
F. Kennedy School of Government.
National Archives Oversight: Protecting Our Nation's History for Future
Generations (May 14, 2008)
This hearing will serve as the only Senate oversight
hearing of the National Archives since at least 1997. It will
provide a forum for the National Archives and outside groups to
address Congress about previous accomplishments providing
public access to Federal records, present challenges
transitioning to electronic records management, and future
opportunities to increase open access worldwide through the use
of information technology.
Witnesses: Hon. Allen Weinstein, Ninth Archivist of the
United States, National Archives and Records Administration.
Weinstein was accompanied by Adrienne Thomas, Deputy Archivist
of the United States; Linda Koontz, Director, Information
Management Issues, Government Accountability Office; Paul
Brachfeld, Inspector General, National Archives and Records
Administration; Patrice McDermott, Director,
OpenGovernment.org; Thomas Blanton, Director, National Security
Archives; Dr. Jim Henderson, Former State Archivist, State of
Maine; Dr. Martin Sherwin, Pulitzer Prize-winning American
Historian and University Professor of History, George Mason
University.
Addressing the U.S.-Pakistan Strategic Relationship (June 12, 2008)
The focus of the hearing is what the most effective policy
options are regarding Pakistan.
Witnesses: Don Camp, Principal Deputy Assistant Secretary
of State for South and Central Asian Affairs, U.S. Department
of State; K. Alan Kronstadt, Specialist in South Asian Affairs,
Foreign Affairs, Defense and Trade Division, Congressional
Research Service; Lisa Curtis, Senior Research Fellow, Asian
Studies Center, The Heritage Foundation; Dr. Stephen P. Cohen,
Senior Fellow, Foreign Policy Studies, The Brookings
Institution; Michael Krepon, Co-Founder, The Henry L. Stimson
Center.
In the Red: Addressing the Nation's Financial Challenges (June 26,
2008)
The hearing will examine the results of the fiscal year
2007 audit of the U.S. Government's consolidated financial
statements and the status of the Federal Government's fiscal
condition. The hearing will also focus on the government's
reported long term fiscal challenge highlighted in the 2007
audit report and the government's first ever clean opinion on
the Statement of Social Insurance.
Witnesses: Gene Dodaro, Comptroller General, Government
Accountability Office; Danny Werfel, Acting Controller, Office
of Management and Budget; Kenneth Carfine, Fiscal Assistant
Secretary, U.S. Department of Treasury; Hon. David Walker, CEO
and President, Peterson Foundation; Robert Bixby, CEO, Concord
Coalition; James Horney, Director, Federal Fiscal Policies,
Center on Budget and Policy Priorities; Hon. Maurice McTigue,
Vice President, Mercatus Center at George Mason University,
Regulatory Studies and Government Accountability Program.
Improving Federal Program Management Using Performance Information
(July 24, 2008)
The hearing will consider what performance data government
agencies have been collecting and measuring under key
performance-based reform initiatives such as GPRA; the focus on
performance as the centerpiece of the current Administration's
President Management Agenda (PMA); and the Office of Management
and Budget's (OMB) push for integration of budget and
performance data using the Program Assessment and Rating Tool
(PART). The hearing will examine will examine the use of
performance information in decisionmaking and resource
allocation at Federal agencies. It will explore where and how
performance information is successfully used in managing
government programs and what remains to be done to support its
more comprehensive use across government. Finally, the hearing
will attempt to lay out what a new management reform strategy
for the 21st Century might include.
Witnesses: Hon. Martin O'Malley, Governor of Maryland;
Bernice Steinhardt, Director for Strategic Issues, Government
Accountability Office (GAO); Marcus C. Peacock, Deputy
Administrator, U.S. Environmental Protection Agency (EPA);
former official at Office of Management and Budget (OMB); Dr.
Donald F. Kettl, Director of Fels Institute of Government and
Robert A. Fox Professor of Leadership, University of
Pennsylvania; James (``Jim'') Dyer, Chief Financial Officer and
Performance Improvement Officer, Nuclear Regulatory Commission
(NRC); Scott Pace, Associate Administrator for Program Analysis
and Evaluation and Performance Improvement Officer, National
Aeronautics and Space Administration (NASA); Daniel Tucker,
Deputy Assistant Secretary for Budget and Performance
Improvement Officer, U.S. Department of Veterans Affairs (VA).
Offline and Off-budget: The Dismal State of Information Technology
Planning in the Federal Government (July 31, 2008)
The hearing will highlight the current management,
reporting, and oversight of the Federal Government's IT
portfolio. The first panel will discuss the major reasons why
agencies rebaseline their projects, whether appropriate
guidance is in place, and what the Federal Government can do to
make sure IT projects are delivered on-time and on-budget. The
second panel will take a solutions-oriented approach to
ensuring high-cost mission critical IT investments are
effectively managed.
Witnesses: Karen Evans, Administrator for E-Government and
Information Technology, Office of Management and Budget; Paul
Denett, Administrator for Federal Procurement Policy, Office of
Management and Budget; Dave Powner, Director, Information
Management, Government Accountability Office; Al Grasso, Chief
Executive Officer, Mitre Corporation; Dr. Norm Brown, Executive
Director, Center for Program Transformation; Tom Jarrett,
Secretary of the Department of Technology and Information,
State of Delaware.
Reducing the Undercount in the 2010 Census (September 23, 2008)
The hearing will examine the Census Bureau's plans to
achieve a complete and accurate count in the 2010 Census.
Specific topics to be discussed are the significance of
partnerships to ensuring accurate counts; the importance of
culturally appropriate outreach; challenges to reaching and
counting ethnic and racial minorities; the impact of the
current immigration debate on future response rates to the
decennial census; and the Bureau's efforts to ensure a diverse
workforce.
Witnesses: Hon. Steven H. Murdock, Director, U.S. Census
Bureau; Robert Goldenkoff, Director, Strategic Issues, U.S.
Government Accountability Office; Hon. Kenneth Prewitt, Former
Census Director Roderick Harrison, Director Databank, Joint
Center for Political and Economic Studies; Karen Narasaki,
President and Executive Director, Asian American Justice
Center; Joseph Salvo, Director, Population Division, New York
City Department of City Planning; and Arturo Vargas, Executive
Director, National Association of Latino Elected and Appointed
Officials.
Addressing Cost Growth of Major Department of Defense Weapons Systems
(September 25, 2008)
This hearing will look at how and why the majority of the
Department of Defense's (DOD) major weapons systems have
experienced $295 billion in cost overruns and average schedule
delays of 2 years. DOD's major weapon programs are some of the
most expensive discretionary spending items in the Federal
budget. A recent Government Accountability Office (GAO) study
determined that the number of DOD's weapons programs that
experience cost overruns and schedule delays has grown
considerably since FY 2000. The reasons for these delays and
cost growths must be thoroughly investigated in order to
improve efficiency and curb wasteful spending. This hearing
will examine the factors responsible for these delays and cost
overruns and identify potential legislative solutions Congress
can undertake.
Witnesses: Hon. James I. Finley, Deputy Under Secretary of
Defense for Acquisition and Technology, U.S. Department of
Defense; Michael J. Sullivan, Director, Acquisition Sourcing
Management, U.S. Government Accountability Office; Steve L.
Schooner, Associate Professor of Law and Co-Director of the
Government Procurement Law Program, The George Washington
University Law School; Clark A. Murdock, Senior Adviser,
International Security Program, Center for Strategic and
International Studies.
II. Legislation
The following bills were considered by the Subcommittee on
Federal Financial Management, Government Information, and
International Security during the 110th Congress:
MEASURES REFERRED TO THE SUBCOMMITTEE UPON WHICH HEARINGS WERE HELD OR
OTHER ACTION WAS TAKEN
S. 171--A bill to designate the facility of the United
States Postal Service located at 301 Commerce Street in
Commerce, Oklahoma, as the ``Mickey Mantle Post Office
Building.''
S. 194--A bill to designate the facility of the United
States Postal Service located at 1300 North Frontage Road West
in Vail, Colorado, as the ``Gerald R. Ford, Jr. Post Office
Building.''
S. 219--A bill to designate the facility of the United
States Postal Service located at 152 North 5th Street in
Laramie, Wyoming, as the ``Gale W. McGee Post Office.''
S. 295--Servitude and Emancipation Archival Research
ClearingHouse Act or the SEARCH Act--Directs the Archivist of
the United States to establish, as part of the National
Archives, a national database consisting of historic records of
servitude and emancipation in the United States to assist
African Americans in researching their genealogy. Requires the
National Historical Publications and Records Commission to
maintain the database.
S. 303--A bill to designate the facility of the United
States Postal Service located at 324 Main Street in Grambling,
Louisiana, shall be known and designated as the ``Coach Eddie
Robinson Post Office Building.''
S. 412--A bill to designate the facility of the United
States Postal Service located at 2633 11th Street in Rock
Island, Illinois, as the ``Lane Evans Post Office Building.''
S. 597--A bill to amend title 39, United States Code, to
extend the authority of the United States Postal Service to
issue a semipostal to raise funds for breast cancer research.
Extends through December 31, 2011, provisions requiring the
U.S. Postal Service to issue a special postage stamp for First-
Class mail that costs not less than 15 percent more than the
regular First-Class stamp to contribute funding for breast
cancer research. Requires the National Institutes of Health
(NIH) and the Department of Defense (DOD) to annually report to
Congress and the Government Accountability Office (GAO) on the
use of any such funding, including a description of any
significant advances or accomplishments.
S. 619--Fair and Accurate Representation Act of 2007--
Amends Federal census law to direct the Secretary of Commerce
to adjust census figures as necessary so that illegal aliens
are not counted for purposes of the apportionment of
Representatives in Congress.
S. 1134--Transparency in Federal Funding Act of 2007--
Requires each cabinet-level department and independent agency
that administers a program containing an earmark in the
preceding year to disclose annually to Congress whether any
portion of such earmarked funds were retained by the agency or
any other organization tasked with distributing them.
S. 1390--Perpetual Purple Heart Stamp Act--Directs the
Postmaster General to provide for the issuance of a forever
stamp (a stamp that meets First-Class postage requirements even
if postage rates increase) to honor the sacrifices of the men
and women of the Armed Forces who have been awarded the Purple
Heart.
S. 1444--Supply Our Soldiers Act of 2007--Directs the
Secretary of Defense to provide for a program under which
postal benefits are provided to a member of the Armed Forces
who is on active duty and who is either: (1) serving in Iraq or
Afghanistan; or (2) hospitalized at a military medical facility
as a result of such service. Provides the postal benefits in
the form of coupons or other evidence of credit (vouchers) to
use for postal-free mailings.
S. 1457--Mail Delivery Protection Act of 2007--Prohibits
the U.S. Postal Service from contracting for the delivery of
mail on any route with one or more families per mile. Allows
existing contracts to remain in effect until terminated by
their terms and to be renewed one or more times. (Chapter 52 of
title 39, U.S. Code, was repealed by P.L. 109-435, the Postal
Accountability and Enhancement Act.)
S. 1539--A bill to designate the post office located at 309
East Linn Street, Marshalltown, Iowa, as the ``Major Scott
Nisely Post Office.''
S. 1596--A bill to designate the facility of the United
States Postal Service located at 103 South Getty Street in
Uvalde, Texas, as the ``Dolph S. Briscoe, Jr. Post Office
Building.''
S. 1713--A bill to provide for the issuance of a
commemorative postage stamp in honor of Rosa Parks.
S. 2107--A bill to designate the facility of the United
States Postal Service located at 570 Broadway in Bayonne, New
Jersey, as the ``Dennis P. Collins Post Office Building.''
S. 2110--A bill to designate the facility of the United
States Postal Service located at 427 North Street in Taft,
California, as the ``Larry S. Pierce Post Office.''
S. 2150--A bill to designate the facility of the United
States Postal Service located at 4320 Blue Parkway in Kansas
City, Missouri, as the ``Wallace S. Hartsfield Post Office
Building.''
S. 2534--A bill to designate the facility of the United
States Postal Service located at 2650 Dr. Martin Luther King
Jr. Street, Indianapolis, Indiana, as the ``Julia M. Carson
Post Office Building.''
S. 2583--Improper Payments Elimination and Recovery Act of
2008--Amends the Improper Payments Information Act of 2002 to
require the head of each Federal agency to: (1) annually review
all agency programs and identify those programs and activities
that may be susceptible to significant improper payments; and
(2) report on agency actions to reduce and recover improper
payments. Defines ``improper payment'' as any payment that
should not have been made, that was made in an incorrect or
duplicate amount, or that was made to an ineligible recipient.
Requires the Director of the Office of Management and Budget
(OMB) to: (1) provide guidance to agencies for reducing
improper payments, addressing risks, and establishing
appropriate prepayment and postpayment internal controls; and
(2) prepare an annual report with an identification of the
compliance status of each agency in identifying improper
payments and the delinquent programs responsible for the
agency's status. Requires Federal agencies with outlays of $1
million or more to conduct a recovery audit of all programs and
activities to assist in recouping improper payments. Requires:
(1) each agency's Inspector General to report each fiscal year
on agency compliance with the Improper Payments Information Act
of 2002 and this Act; (2) the head of an agency determined not
to be in compliance for two consecutive fiscal years to expend
available appropriations on intensified compliance; and (3) an
agency determined not to be in compliance for three consecutive
fiscal years, with a delinquent program reported for two of
those years consecutively, to transfer 5 percent of the
appropriations for each of delinquent program to the Treasury.
Suspends appropriations to agencies that have an improper
payment rate greater than 15 percent for three consecutive
fiscal years until the agency's Inspector General certifies
that sufficient changes have been implemented to warrant
resumed authorization of appropriations.
S. 2600--A bill to provide for the designation of a single
ZIP code for Windsor Heights, Iowa.
S. 2622--A bill to designate the facility of the United
States Postal Service located at 11001 Dunklin Road in St.
Louis, Missouri, as the ``William `Bill' Clay Post Office.''
S. 2626--A bill to designate the facility of the United
States Postal Service located at 160 East Washington Street in
Chagrin Falls, Ohio, as the ``Sergeant Michael M. Kashkoush
Post Office Building.''
S. 2673--A bill to designate the facility of the United
States Postal Service located at 10799 West Alameda Avenue in
Lakewood, Colorado, as the ``Felix Sparks Post Office
Building.''
S. 2675--A bill to designate the facility of the United
States Postal Service located at 201 West Greenway Street in
Derby, Kansas, as the ``Sergeant Jamie O. Maugans Post Office
Building.''
S. 2725--A bill to designate the facility of the United
States Postal Service located at 6892 Main Street in
Gloucester, Virginia, as the ``Congresswoman Jo Ann S. Davis
Post Office.''
S. 3015--A bill to designate the facility of the United
States Postal Service located at 18 S. G Street, Lakeview,
Oregon, as the ``Dr. Bernard Daly Post Office Building.''
S. 3082--A bill to designate the facility of the United
States Postal Service located at 1700 Cleveland Avenue in
Kansas City, Missouri, as the ``Reverend Earl Abel Post Office
Building.''
S. 3241--A bill to designate the facility of the United
States Postal Service located at 1717 Orange Avenue in Fort
Pierce, Florida, as the ``CeeCee Ross Lyles Post Office
Building.''
S. 3309--A bill to designate the facility of the United
States Postal Service located at 2523 7th Avenue East in North
Saint Paul, Minnesota, as the Mayor William ``Bill'' Sandberg
Post Office Building.
S. 3317--A bill to designate the facility of the United
States Postal Service located at 101 West Main Street in
Waterville, New York, as the ``Corporal John P. Sigsbee Post
Office.''
S. 3350--A bill to provide that claims of the United States
to certain documents relating to Franklin Delano Roosevelt
shall be treated as waived and relinquished in certain
circumstances. Declares that any claim of the United States to
certain property relating to Franklin Delano Roosevelt, his
family, or staff shall be treated as having been waived and
relinquished on the day before any person makes a gift of such
property to the National Archives and Records Administration.
Specifies such property as any part of the collection of
documents, papers, and memorabilia relating to Roosevelt, or
any member of his family or staff, which was originally in the
possession of Grace Tully and retained by her at the time of
her death, and included in her estate.
S. 3384--Information Technology Investment Oversight
Enhancement and Waste Prevention Act of 2008--Revises the
requirement that each head of an executive agency identify, in
strategic information resources management plans, any major
information acquisition programs (or phase or increment) that
have significantly deviated from the cost, performance, or
schedule goals established for the program. Requires each
Federal agency head primarily responsible for the information
technology (IT) investment project under review, and the
Director of the Office of Management and Budget (OMB), to
jointly designate at least five of the agency's most mission
critical IT investment projects (or fewer, under certain
circumstances) as core IT investment projects or core projects,
after considering specified criteria. Requires the Chief
Information Officer (CIO) of the Federal agency primarily
responsible for the IT investment project under review, after
receiving a quarterly report from the project manager, to
determine if the project has significantly deviated, in cost,
schedule, or performance variance, at least 20 percent from the
Original Baseline. Requires a report of any significant
deviation to the appropriate congressional committees and to
the Government Accountability Office (GAO). Requires the
agency's CIO, similarly, to: (1) determine if the project has
grossly deviated, in cost, schedule, or performance variance,
at least 40 percent from the Original Baseline; and (2) report
such a deviation to the appropriate congressional committees
and GAO if the agency head does not. Specifies remedial actions
in the event of a gross deviation. Requires each agency head to
establish a program meeting specified requirements to improve
the agency's IT processes. Requires the Administrator of the
Office of Electronic Government and Information and Technology
at OMB (the E-Gov Administrator) to establish a small group of
individuals (IT Strike Force) to assist agencies in avoiding
significant and gross deviations in the cost, schedule, and
performance of IT investment projects. Requires the E-Gov
Administrator to carry out certain activities upon determining
that there is reasonable cause to believe that a major IT
investment project is likely to significantly or grossly
deviate, including the receipt of inconsistent or missing data.
S. 3477--Presidential Historical Records Preservation Act
of 2008--Authorizes appropriations for the National Historical
Publications and Records Commission for FY 2010. Requires the
Archivist of the United States, with the recommendation of the
Commission, to make grants to eligible entities on a
competitive basis to promote the historical preservation of,
and public access to, historical records and documents relating
to any President who does not have a presidential archival
depository currently managed and maintained by the Federal
Government pursuant to the Presidential Libraries Act of 1955.
Defines eligible entities as specified tax-exempt organizations
or state or local governments. Prohibits the use of grants for
the maintenance, operating costs, or construction of any
facility to house the historical records or documents.
Prohibits the Commission from considering or recommending a
grant application unless an entity establishes that it has met
certain factors, including: (1) ensuring the preservation of,
and access to, such historical works and collections of
historical sources at no charge to the public; (2) having
educational programs that make the use of such documents part
of the entity's mission; and (3) having funds from non-federal
sources in support of the entity's efforts to promote such
preservation and access.
S. Res. 111--A resolution expressing the sense of the
Senate that the Citizen's Stamp Advisory Committee should
recommend to the Postmaster General that a commemorative stamp
be issued honoring the life of Oskar Schindler.
S. Res. 269--A resolution expressing the sense of the
Senate that the Citizens' Stamp Advisory Committee should
recommend to the Postmaster General that a commemorative
postage stamp be issued in honor of former United States
Representative Barbara Jordan.
S. Res. 273--A resolution expressing the sense of the
Senate that the United States Postal Service should issue a
semipostal stamp to support medical research relating to
Alzheimer's disease.
S. Res. 283--A resolution expressing the sense of the
Senate that the United States Postal Service should discontinue
the practice of contracting out mail delivery services.
S. Res. 497--A resolution expressing the sense of the
Senate that public servants should be commended for their
dedication and continued service to the Nation during Public
Service Recognition Week, May 5 through 11, 2008.
S. Res. 680--A resolution to authorize the production of
records by the Permanent Subcommittee on Investigations of the
Committee on Homeland Security and Governmental Affairs.
S. Con. Res. 22--A concurrent resolution expressing the
sense of the Congress that the Citizens' Stamp Advisory
Committee should recommend to the Postmaster General that a
commemorative postage stamp be issued to promote public
awareness of Down syndrome.
S. Con. Res. 44--A concurrent resolution expressing the
sense of Congress that a commemorative postage stamp should be
issued honoring Rosa Louise McCauley Parks.
H.R. 390--Preservation of Records of Servitude,
Emancipation, and Post-Civil War Reconstruction Act--Requires
the Archivist of the United States to: (1) establish, as part
of the National Archives, an electronically searchable database
of historic records of servitude, emancipation, and post-Civil
War reconstruction contained within Federal agencies, including
the Southern Claims Commission Records, Records of the
Freedmen's Bank, Slave Impressments Records, Slave Payroll
Records, and the Slave Manifest, for genealogical and
historical research; and (2) preserve relevant records.
Requires the National Historical Publications and Records
Commission to provide grants to states, colleges and
universities, and genealogical associations to preserve records
and establish databases of local records of such information.
Requires such databases to be maintained by entities designated
by the National Historical Publications and Records Commission.
H.R. 414--To designate the facility of the United States
Postal Service located at 60 Calle McKinley, West in Mayaguez,
Puerto Rico, as the ``Miguel Angel Garcia Mendez Post Office
Building.''
H.R. 437--To designate the facility of the United States
Postal Service located at 500 West Eisenhower Street in Rio
Grande City, Texas, as the ``Lino Perez, Jr. Post Office.''
H.R. 1236--To amend title 39, United States Code, to extend
the authority of the United States Postal Service to issue a
semipostal to raise funds for breast cancer research.
H.R. 1260--To designate the facility of the United States
Postal Service located at 6301 Highway 58 in Harrison,
Tennessee, as the ``Claude Ramsey Post Office.''
H.R. 1335 --To designate the facility of the United States
Postal Service located at 508 East Main Street in Seneca, South
Carolina, as the ``S/Sgt Lewis G. Watkins Post Office
Building.''
H.R. 1425--To designate the facility of the United States
Postal Service located at 4551 East 52nd Street in Odessa,
Texas, as the ``Staff Sergeant Marvin ``Rex'' Young Post Office
Building.''
H.R. 1434--To designate the facility of the United States
Postal Service located at 896 Pittsburgh Street in Springdale,
Pennsylvania, as the ``Rachel Carson Post Office Building.''
H.R. 1617--To designate the facility of the United States
Postal Service located at 561 Kingsland Avenue in University
City, Missouri, as the ``Harriett F. Woods Post Office
Building.''
H.R. 1722--To designate the facility of the United States
Postal Service located at 601 Banyan Trail in Boca Raton,
Florida, as the ``Leonard W. Herman Post Office.''
H.R. 1734--To designate the facility of the United States
Postal Service located at 630 Northeast Killingsworth Avenue in
Portland, Oregon, as the ``Dr. Martin Luther King, Jr. Post
Office.''
H.R. 2025--To designate the facility of the United States
Postal Service located at 11033 South State Street in Chicago,
Illinois, as the ``Willye B. White Post Office Building.''
H.R. 2077--To designate the facility of the United States
Postal Service located at 20805 State Route 125 in Blue Creek,
Ohio, as the ``George B. Lewis Post Office Building.''
H.R. 2078--To designate the facility of the United States
Postal Service located at 14536 State Route 136 in Cherry Fork,
Ohio, as the ``Staff Sergeant Omer T. `O.T.' Hawkins Post
Office.''
H.R. 2089--To facilitate the restoration of the native
ecosystem on Santa Rosa Island within Channel Islands National
Park, and for other purposes.
H.R. 2127--To designate the facility of the United States
Postal Service located at 408 West 6th Street in Chelsea,
Oklahoma, as the ``Clem Rogers McSpadden Post Office
Building.''
H.R. 2276--To designate the facility of the United States
Postal Service located at 203 North Main Street in Vassar,
Michigan, as the ``Corporal Christopher E. Esckelson Post
Office Building.''
H.R. 2563--To designate the facility of the United States
Postal Service located at 309 East Linn Street in Marshalltown,
Iowa, as the ``Major Scott Nisely Post Office.''
H.R. 2765--To designate the facility of the United States
Postal Service located at 44 North Main Street in Hughesville,
Pennsylvania, as the ``Master Sergeant Sean Michael Thomas Post
Office.''
H.R. 3196--To designate the facility of the United States
Postal Service located at 20 Sussex Street in Port Jervis, New
York, as the ``E. Arthur Gray Post Office Building.''
H.R. 3297--To designate the facility of the United States
Postal Service located at 950 West Trenton Avenue in
Morrisville, Pennsylvania, as the ``Nate DeTample Post Office
Building.''
H.R. 3308--To designate the facility of the United States
Postal Service located at 216 East Main Street in Atwood,
Indiana, as the ``Lance Corporal David K. Fribley Post
Office.''
H.R. 3325--To designate the facility of the United States
Postal Service located at 235 Mountain Road in Suffield,
Connecticut, as the ``Corporal Stephen R. Bixler Post Office.''
H.R. 3382--To designate the facility of the United States
Postal Service located at 200 North William Street in
Goldsboro, North Carolina, as the ``Philip A. Baddour, Sr. Post
Office.''
H.R. 3468--To designate the facility of the United States
Postal Service located at 1704 Weeksville Road in Elizabeth
City, North Carolina, as the ``Dr. Clifford Bell Jones, Sr.
Post Office.''
H.R. 3518--To designate the facility of the United States
Postal Service located at 1430 South Highway 29 in Cantonment,
Florida, as the ``Charles H. Hendrix Post Office Building.''
H.R. 3532--To designate the facility of the United States
Postal Service located at 5815 McLeod Street in Lula, Georgia,
as the ``Private Johnathon Millican Lula Post Office.''
H.R. 3530--To designate the facility of the United States
Postal Service located at 1400 Highway 41 North in Inverness,
Florida, as the ``Chief Warrant Officer Aaron Weaver Post
Office Building.''
H.R. 3569--To designate the facility of the United States
Postal Service located at 16731 Santa Ana Avenue in Fontana,
California, as the ``Beatrice E. Watson Post Office Building.''
H.R. 3572--To designate the facility of the United States
Postal Service located at 4320 Blue Parkway in Kansas City,
Missouri, as the ``Wallace S. Hartsfield Post Office
Building.''
H.R. 3721--To designate the facility of the United States
Postal Service located at 1190 Lorena Road in Lorena, Texas, as
the ``Marine Gunnery Sgt. John D. Fry Post Office Building.''
H.R. 3730--United States-India Interparliamentary Exchange
Act of 2007--Establishes the United States-India
Interparliamentary Exchange Group.
H.R. 3803--To designate the facility of the United States
Postal Service located at 3100 Cashwell Drive in Goldsboro,
North Carolina, as the ``John Henry Wooten, Sr. Post Office
Building.''
H.R. 3911--To designate the facility of the United States
Postal Service located at 95 Church Street in Jessup,
Pennsylvania, as the ``Lance Corporal Dennis James Veater Post
Office.''
H.R. 3936--To designate the facility of the United States
Postal Service located at 116 Helen Highway in Cleveland,
Georgia, as the ``Sgt. Jason Harkins Post Office Building.''
H.R. 3974--To designate the facility of the United States
Postal Service located at 797 Sam Bass Road in Round Rock,
Texas, as the ``Marine Corps Corporal Steven P. Gill Post
Office Building.''
H.R. 3988--To designate the facility of the United States
Postal Service located at 3701 Altamesa Boulevard in Fort
Worth, Texas, as the ``Master Sergeant Kenneth N. Mack Post
Office Building.''
H.R. 4010--To designate the facility of the United States
Postal Service located at 100 West Percy Street in Indianola,
Mississippi, as the ``Minnie Cox Post Office Building.''
H.R. 4166--To designate the facility of the United States
Postal Service located at 701 East Copeland Drive in Lebanon,
Missouri, as the ``Steve W. Allee Carrier Annex.''
H.R. 4185--To designate the facility of the United States
Postal Service located at 11151 Valley Boulevard in El Monte,
California, as the ``Marisol Heredia Post Office Building.''
H.R. 4203--To designate the facility of the United States
Postal Service located at 3035 Stone Mountain Street in
Lithonia, Georgia, as the ``Specialist Jamaal RaShard Addison
Post Office Building.''
H.R. 4210--To designate the facility of the United States
Postal Service located at 401 Washington Avenue in Weldon,
North Carolina, as the ``Dock M. Brown Post Office Building.''
H.R. 4211--To designate the facility of the United States
Postal Service located at 725 Roanoke Avenue in Roanoke Rapids,
North Carolina, as the ``Judge Richard B. Allsbrook Post
Office.''
H.R. 4240--To designate the facility of the United States
Postal Service located at 10799 West Alameda Avenue in
Lakewood, Colorado, as the ``Felix Sparks Post Office
Building.''
H.R. 4342--To designate the facility of the United States
Postal Service located at 824 Manatee Avenue West in Bradenton,
Florida, as the ``Dan Miller Post Office Building.''
H.R. 4454--To designate the facility of the United States
Postal Service located at 3050 Hunsinger Lane in Louisville,
Kentucky, as the ``Iraq and Afghanistan Fallen Military Heroes
of Louisville Memorial Post Office Buildin,'' in honor of the
servicemen and women from Louisville, Kentucky, who died in
service during Operation Enduring Freedom and Operation Iraqi
Freedom.
H.R. 4774--To designate the facility of the United States
Postal Service located at 10250 John Saunders Road in San
Antonio, Texas, as the ``Cyndi Taylor Krier Post Office
Building.''
H.R. 5135--To designate the facility of the United States
Postal Service located at 201 West Greenway Street in Derby,
Kansas, as the ``Sergeant Jamie O. Maugans Post Office
Building.''
H.R. 5168--To designate the facility of the United States
Postal Service located at 19101 Cortez Boulevard in
Brooksville, Florida, as the ``Cody Grater Post Office
Building.''
H.R. 5220--To designate the facility of the United States
Postal Service located at 3800 SW. 185th Avenue in Beaverton,
Oregon, as the ``Major Arthur Chin Post Office Building.''
H.R. 5395--To designate the facility of the United States
Postal Service located at 11001 Dunklin Drive in St. Louis,
Missouri, as the ``William `Bill' Clay Post Office Building.''
H.R. 5400--To designate the facility of the United States
Postal Service located at 160 East Washington Street in Chagrin
Falls, Ohio, as the ``Sgt. Michael M. Kashkoush Post Office
Building.''
H.R. 5477--To designate the facility of the United States
Postal Service located at 120 South Del Mar Avenue in San
Gabriel, California, as the ``Chi Mui Post Office Building.''
H.R. 5479--To designate the facility of the United States
Postal Service located at 117 North Kidd Street in Ionia,
Michigan, as the ``Alonzo Woodruff Post Office Building.''
H.R. 5483--To designate the facility of the United States
Postal Service located at 10449 White Granite Drive in Oakton,
Virginia, as the ``Private First Class David H. Sharrett II
Post Office Building.''
H.R. 5506--To designate the facility of the United States
Postal Service located at 369 Martin Luther King Jr. Drive in
Jersey City, New Jersey, as the ``Bishop Ralph E. Brower Post
Office Building.''
H.R. 5517--To designate the facility of the United States
Postal Service located at 7231 FM 1960 in Humble, Texas, as the
``Texas Military Veterans Post Office.''
H.R. 5528--To designate the facility of the United States
Postal Service located at 120 Commercial Street in Brockton,
Massachusetts, as the ``Rocky Marciano Post Office Building.''
H.R. 5631--To designate the facility of the United States
Postal Service located at 1155 Seminole Trail in
Charlottesville, Virginia, as the ``Corporal Bradley T. Arms
Post Office Building.''
H.R. 5975--To designate the facility of the United States
Postal Service located at 101 West Main Street in Waterville,
New York, as the ``Cpl. John P. Sigsbee Post Office.''
H.R. 6061--To designate the facility of the United States
Postal Service located at 219 East Main Street in West
Frankfort, Illinois, as the ``Kenneth James Gray Post Office
Building.''
H.R. 6085--To designate the facility of the United States
Postal Service located at 42222 Rancho Las Palmas Drive in
Rancho Mirage, California, as the ``Gerald R. Ford Post Office
Building.''
H.R. 6092--To designate the facility of the United States
Postal Service located at 101 Tallapoosa Street in Bremen,
Georgia, as the ``Sergeant Paul Saylor Post Office Building.''
H.R. 6208--To designate the facility of the United States
Postal Service located at 1100 Town and Country Commons in
Chesterfield, Missouri, as the ``Lance Corporal Matthew P.
Pathenos Post Office Building.''
H.R. 6226--To designate the facility of the United States
Postal Service located at 300 East 3rd Street in Jamestown, New
York, as the ``Stan Lundine Post Office Building.''
H.R. 6437--To designate the facility of the United States
Postal Service located at 200 North Texas Avenue in Odessa,
Texas, as the ``Corporal Alfred Mac Wilson Post Office.''
H. Con. Res. 307--Expressing the sense of Congress that
Members' Congressional papers should be properly maintained and
encouraging Members to take all necessary measures to manage
and preserve these papers.
GAO REPORTS
GAO-07-274, Federal Capital: Three Entities' Implementation
of Capital Planning Principles Is Mixed, (02/23/2007)
GAO-07-361, 2010 Census: Census Bureau Should Refine
Recruiting and Hiring Efforts and Enhance Training of Temporary
Field Staff, (04/27/2007)
GAO-07-736, 2010 Census: Census Bureau Has Improved the
Local Update of Census Addresses Program, but Challenges
Remain, (06/14/2007)
GAO-07-717, U.S. Postal Service: Mail Processing
Realignment Efforts Under Way Need Better Integration and
Explanation, (06/21/2007)
GAO-07-536, Homeland Security: Departmentwide Integrated
Financial Management Systems Remain a Challenge, (06/21/2007)
GAO-07-769, Small Business Administration: Additional
Measures Needed to Assess 7(a) Loan Program's Performance, (07/
13/2007)
GAO-07-913, Department of Homeland Security: Challenges in
Implementing the Improper Payments Information Act and
Recovering Improper Payments, (09/19/2007)
GAO-08-79, Information Technology: Census Bureau Needs to
Improve Its Risk Management of Decennial Systems, (10/05/2007)
GAO-08-45, U.S. Postal Service, Agencies Distribute Fund-
raising Stamp Proceeds and Improve Reporting, (10/30/2007)
GAO-08-77, Improper Payments: Weakness in USAID's and
NASA's Implementation of the Improper Payments Information Act
and Recovery Auditing, (11/09/2007)
GAO-08-41, U.S. Postal Service Facilities: Improvements in
Data Would Strengthen Maintenance and Alignment of Access to
Retail Services, (12/10/2007)
GAO-O8-16, DOD Travel Improper Payments: Fiscal Year 2006
Reporting Was Incomplete and Planned Improvement Efforts Face
Challenges, (12/14/2007)
GAO-08-197, Federal Real Property: Strategy Needed to
Address Agencies' Long-standing Reliance on Costly Leasing,
(01/24/2008)
GAO-08-349, Federal Real Property: Corps of Engineers Needs
to Improve Reliability of Its Real Property Disposal Data, (05/
09/2008)
GAO-08-599, U.S. Postal Service: Mail-Related Recycling
Initiatives and Possible Opportunities for Improvement, (06/03/
2008)
GAO-08-787, U.S. Postal Service: Data Needed to Assess the
Effectiveness of Outsourcing, (07/24/2008)
GAO-08-925, Information Technology: Agencies Need to
establish Comprehensive Policies to Address Changes to
Projects' Cost, Schedule, and Performance Goals, (07/31/2008)
GAO-08-432, Grants Management: Attention Needed to Address
Undisbursed Balances in Expired Grant Accounts, (08/29/2008)
GAO-08-996, U.S. Postal Service: New Delivery Performance
Measures Could Enhance Managers' Pay for Performance Program,
(09/10/2008)
SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT
MANAGEMENT, THE FEDERAL WORKFORCE,
AND THE DISTRICT OF COLUMBIA
Chairman: Daniel K. Akaka
Ranking Minority Member: George V. Voinovich
I. Hearings
The Subcommittee on Oversight of Government Management, the
Federal Workforce, and the District of Columbia held the
following 00 hearings during the 110th Congress:
Lost in Translation: A Review of the Federal Government's Efforts to
Develop a Foreign Language Strategy (January 25, 2007)
The hearing reviewed the Federal Government's efforts to
improve the nation's language proficiency. According to the
2000 Census, only 9.3 percent of Americans speak both their
native language and another language fluently, compared with 56
percent of citizens in the European Union. The inability of
Federal law enforcement officers, intelligence officers,
scientists, and military personnel to interpret information
from foreign sources, as well as interact with foreign
nationals, presents a threat to their mission and to the well
being of our nation. It also risks the nation's economic
security as U.S. companies lose an estimated $2 billion a year
due to inadequate cultural understanding.
In 2006, the Administration launched the National Security
Language Initiative (NSLI) to coordinate efforts among the
Intelligence Directorate and the Departments of Defense,
Education, and State to address our national security language
needs. However, hearing found shortfalls in NSLI, namely that
the program was not sustainable, it lacks input from all
stakeholders, and fails to address both national and economic
security needs.
Witnesses: Panel I: Mr. Michael Dominguez, Principal Deputy
Under Secretary of Defense for Personnel Readiness, U.S.
Department of Defense; Ms. Holly Kuzmich, Deputy Chief of Staff
to Secretary Spellings, U.S. Department of Education; Mr.
Everette Jordan, Director, National Virtual Translation Center,
on behalf of the Federal Bureau of Investigations; Panel II:
Ms. Rita Oleksak, President, American Council on the Teaching
of Foreign Languages; Mr. Michael Petro, Vice President and
Director of Business and Government Policy, The Committee for
Economic Development; and Dr. Diane Birckbichler, Director of
the Foreign Language Center, Ohio State University.
Private Health Records: Privacy Implications of the Federal
Government's Health Information Technology Initiative (February
1, 2007)
The hearing is intended to review the Federal Government's
efforts to include privacy protections in the development of a
nationwide interoperable health information technology (IT)
strategy. Studies show that the use of health IT can save
money, reduce medical errors, and improve the delivery of
health services. As a result, in 2004, President Bush called
for the widespread adoption of interoperable electronic health
records within 10 years and issued an executive order that
established the position of the National Coordinator for Health
Information Technology. The National Coordinator is charged
with developing and implementing a strategic plan to guide the
nationwide implementation of interoperable health IT in both
the public and private sectors.
Two months later, the Department of Health and Human
Services (HHS) released a framework for strategic action to
promote health IT, which calls on all levels of government to
work with the private sector to stimulate change in the health
care industry. In turn, the Office of Personnel Management
(OPM) began to use its leverage as the administrator of the
Federal Employees Health Benefit Program (FEHBP), which covers
approximately eight million Federal employees, retirees, and
their dependents, to expand the use of health IT. OPM, through
its annual Call Letter to carriers, has been encouraging
carriers to increase the use of electronic health records,
electronic prescribing, and other health IT-related provisions.
In 2005, a Harris Interactive survey showed that 70 percent
of Americans were concerned that an electronic medical records
system would lead to sensitive medical records being exposed
due to weak electronic security. Government Accountability
Office (GAO) was asked to review the efforts of HHS and the
National Coordinator to protect personal health information.
GAO's report, which was released at the hearing, found that
while HHS and the National Coordinator have taken steps to
study the protection of personal health information, an overall
strategy is needed to identify milestones for integrating
privacy into the health IT framework; ensure privacy is fully
addressed; and address key challenges associated with the
nationwide exchange of information.
The hearing highlighted the need for HHS to integrate
privacy into the nationwide health IT infrastructure and the
loopholes in the Health Insurance Portability and
Accountability Act that need to be addressed in order to move
forward with health IT and protect the private health
information of Federal employees and all Americans.
Witnesses: Panel I: Dr. Rob Kolodner, Interim National
Coordinator for Health Information Technology, U.S. Department
of Health and Human Services; Mr. Daniel Green, Deputy
Assistant Director, Center for Employee and Family Support
Policy, Strategic Human Resources Policy Division, Office of
Personnel Management; Panel II: Mr. David Powner, Director
Information Technology Management Issues, U.S. Government
Accountability Office; Ms. Linda Koontz, Director Information
Management Issues, U.S. Government Accountability Office; Mr.
Mark A. Rothstein, Herbert F. Boehl, Chair of Law and Medicine
and the Director of the Institute for Bioethics, Health Policy
and Law, University of Louisville School of Medicine; and Dr.
Carol Diamond, Managing Director, Markle Foundation.
A Review of the Transportation Security Administration Personnel System
(March 5, 2007)
The purpose of the hearing is to review the personnel
management system for Transportation Security Administration
(TSA) screeners and non-screeners. To secure the aviation
industry after the terrorist attacks on September 11, 2001,
Congress passed the Aviation and Transportation Security Act
(ATSA), which, among other things, created TSA and federalized
the aviation screening workforce. The Act required TSA to
follow the personnel system for the Federal Aviation
Administration (FAA), but the agency was allowed to employ,
appoint, discipline, terminate, and fix the compensation,
terms, and conditions of employment for Transportation Security
Officers (TSOs) without regard to other laws. A year later,
Congress passed the Homeland Security Act to merge 22 agencies,
including TSA, into a Department of Homeland Security (DHS) in
an effort to improve the Federal Government's ability to
prevent and respond to terrorist attacks. The Homeland Security
Act also provided broad personnel flexibility to DHS in order
to quickly respond to threats and ensure that the Secretary had
the flexibility to move resources as needed. However, the Act
provided that DHS employee would have an independent and fair
appeals process, full whistleblower rights, and collective
bargaining. TSA was not included in this personnel system and
as a result TSOs were left without many of the statutory
protections for DHS employees.
Since 2001, TSA has faced high attrition rates, high
numbers of workers compensation claims, and low employee
morale. The hearing reviewed steps that TSA had taken to
address these workforce issues, but also examined the claim by
employee representatives that giving TSOs the same rights and
protections as other employees at the FAA or DHS would solve
the problems.
Witnesses: Panel I: Hon. Kip Hawley, Assistant Secretary of
Homeland Security, Transportation Security Administration,
Department of Homeland Security; and Panel II: Mr. John Gage,
National President, American Federation of Government Employees
A Review of U.S. International Efforts to Secure Radiological Materials
(March 13, 2007)
The hearing reviewed efforts by the U.S. Department of
Energy (DOE) and U.S. Nuclear Regulatory Commission (NRC) to
secure radiological materials through the IAEA and other
multilateral organizations. The hearing also reviewed findings
of the U.S. Government Accountability Office in its report,
DOE's International Radiological Threat Reduction Program Needs
to Focus Future Efforts on Securing the Highest Priority
Radiological Sources.''
Witnesses: Panel I: Mr. Richard Stratford, Director, Office
of Nuclear Energy, Safety, and Security, U.S. Department of
State, Mr. Andrew Bieniawski, Associate Deputy Administrator,
National Nuclear Security Administration, U.S. Department of
Energy, Ms. Janice Dunn Lee, Director, Office of International
Programs, U.S. Nuclear Regulatory Commission, Mr. Eugene
Aloise, Director, Natural Resources and Environment, U.S.
Government Accountability Office, Panel II: Dr. Brian Dodd,
President, Health Physics Society, Dr. Charles Ferguson, Fellow
for Science and Technology, Council on Foreign Relations, and
Mr. Joel Lubenau, Certified Health Physicist.
Safeguarding the Merit Systems Principles: A Review of the Merit
Systems Protection Board and the Office of Special Counsel
(March 22, 2007)
The purpose of the hearing was to review how the Merit
Systems Protection Board (MSPB) and the Office of Special
Counsel (OSC) were meeting their statutory mission and discuss
each agency's reauthorization request. Both MSPB and OSC were
created by the Civil Service Reform Act of 1978 to safeguard
the merit system principles and to help ensure that Federal
employees are free from discriminatory, arbitrary, and
retaliatory actions, especially against those who step forward
to disclose government waste, fraud, and abuse. These
protections are essential so that employees can perform their
duties in the best interests of the American public. The
enforcement of the merit system principles by MSPB and OSC
helps ensure that the Federal Government is an employer of
choice.
Over the past few years, both agencies have been criticized
for failing to live up to their mission. For example, the most
recent Federal employee satisfaction survey conducted by OSC
shows that less than five percent of the respondents reported
any degree of satisfaction with the results obtained by OSC
while more than 92 percent were dissatisfied. Both agencies
have also been criticized for their activities with respect to
the interpretation of the Whistleblower Protection Act and
other prohibited personnel practices, including protections
against sexual orientation discrimination. The hearing reviewed
MSPB's and OSC's interpretation and application of these laws,
Federal employee views of each agency, and the legislative
proposals submitted by each agency to be included in their
reauthorization bill.
Witnesses: Hon. Neil McPhie, Chairman, U.S. Merit Systems
Protection Board, and Hon. Scott Bloch, Special Counsel, U.S.
Office of Special Counsel.
Understanding the Realities of REAL ID: A Review of Efforts To Secure
Drivers' Licenses and Identification Cards (March 26, 2007)
The Subcommittee held a hearing to review the proposed
regulations released by the Department of Homeland Security
(DHS) on March 1, 2007, implementing the REAL ID Act of 2005.
REAL ID was enacted in response to the terrorist attacks on
September 11, 2001, and the recommendation of the 9-11
Commission for the Federal Government set standards for issuing
sources of identification, such as drivers' licenses. In
December 2004, Congress passed the Intelligence Reform and
Terrorism Prevention Act (IRTPA) to establish a negotiated
rulemaking process among the Federal Government, State, and
local governments, privacy groups, and other stakeholders to
develop standards for drivers' licenses and identification
cards. Shortly thereafter, Congress passed the REAL ID Act,
without any congressional hearings, which replaced the
negotiated rulemaking process of the IRTPA.
Concerns about REAL ID have been raised by state and local
government officials as it is an unfunded mandate estimated to
cost nearly $17.2 billion and by privacy advocates who believe
the Act poses a real threat to privacy and civil liberties. As
a result, over half of the nation's state legislatures, 28,
have introduced or passed legislation expressing concern or
calling for the repeal of REAL ID. Two states, Maine and Idaho,
have passed legislation to opt out of complying with REAL ID.
The hearing reviewed the proposed regulations to implement the
program and the need for Federal funding, flexibility to states
in implementing the Act, and the need for improvements to
protect privacy and civil liberties.
Witnesses: Panel I: Hon. Richard C. Barth, Ph.D., Assistant
Secretary for the Office of Policy Development, Department of
Homeland Security; Panel II: Hon. Leticia Van de Putte, Texas
State Senator and President, National Conference of State
Legislatures; Hon. Mufi Hannemann, Mayor, City and County of
Honolulu Hawaii (accompanied by Mr. Dennis Kamimura, Licensing
Administrator, City and County of Honolulu); Mr. David Quam,
Director of Federal Relations, National Governors Association;
Mr. Timothy Sparapani, Legislative Counsel for Privacy Rights,
American Civil Liberties Union; and Mr. Jim Harper, Director of
Information Policy Studies, The Cato Institute
Federal Government's Role in Empowering Americans to Make Informed
Financial Decisions (April 30, 2007)
This oversight hearing examined the status and
effectiveness of Federal financial literacy programs, including
the Financial Literacy and Education Commission, of which
Senator Akaka has been a strong supporter.
Government and private studies, statistics, and national
surveys indicate that far too many Americans of all ages lack
the knowledge to make informed decisions regarding their
personal finances. Lack of understanding and uncertainty about
financial matters and decision-making leaves individuals
vulnerable to negative consequences, which include excessive
credit card and household debt, payment of excessive fees, and
an inability to save for retirement, a first home, education,
or other long-term goals. Financial decision-making has become
so complicated that most individuals would benefit from further
financial education.
The hearing highlighted the need for continued investment
in expanding financial literacy. It heard that Federal efforts
to date have been positive though more Federal investment could
improve consumer financial literacy. The hearing also
highlighted the need to invest more in early financial literacy
education in elementary and secondary schools in order to
create a foundation for young Americans to make informed
financial decisions.
Witnesses: Panel I: Sheila C. Bair, Chairman, Federal
Deposit Insurance Corporation; Panel II: Morgan Brown,
Assistant Deputy Secretary for Innovation and Improvement,
Department of Education; Dan Iannicola, Jr., Deputy Assistant
Secretary for the Office of Financial Education, Department of
the Treasury; Robert F. Danbeck, Associate Director of Human
Resources Products and Services, Office of Personnel
Management; Yvonne D. Jones, Director of Financial Markets and
Community Investment, Government Accountability Office; Stephen
Brobeck, Executive Director, Consumer Federation of America;
Robert F. Duvall, President and CEO, National Council on
Economic Education.
Managing the Department of Homeland Security: A Status Report on Reform
Efforts by the Under Secretary for Management (May 10, 2007)
The purpose of the hearing was to review the Department of
Homeland Security's (DHS) management challenges, the status of
the development of a comprehensive management strategy for the
Department, and needed improvements.
The March 2003 formation of DHS, which is the third-largest
cabinet agency, was the largest restructuring of the Federal
Government since the creation of the Department of Defense in
1947. DHS continues to face significant management and
organizational challenges. In particular, the hearing
highlighted the Department's human capital challenges,
including improving employee recruitment, retention, and
morale; the Department's inadequate acquisitions oversight,
particularly with large-scale projects such as the Coast
Guard's Deepwater project and Customs and Border Protection's
Secure Border Initiative; and DHS's difficulty creating
integrated and effective financial management and information
technology systems.
Witnesses: Paul Schneider, Under Secretary for Management,
DHS, and David Walker, Comptroller General, Government
Accountability Office (GAO).
Evaluating the Progress and Identifying Obstacles in Improving the
Federal Government's Security Clearance Process (May 17, 2007)
This hearing assessed progress in addressing the
longstanding backlog of security clearance investigations and
the overall timeliness of the clearance process. The hearing
examined obstacles to reducing backlogs and completing
clearances in a timely manner, as well as roadblocks to
improving the security clearance process, including but not
limited to budgetary, human capital, and technology issues.
The number of clearance requests from the Department of
Defense (DOD) skyrocketed after the terrorist attacks of
September 11, 2001. In 2005, the Government Accountability
Office (GAO) placed the Department of Defense Security
Clearance process on the GAO High Risk List due to a mounting
backlog of clearance requests as well as DOD's inability to
manage the backlog. In February 2005, DOD transferred its
investigative function to the Office of Personnel Management's
Federal Investigative Services Division (OPM/FISD). However,
many security clearances still take in excess of one year to
complete.
The hearing found that the players in the clearance process
were struggling to meet timeliness benchmarks established under
the Intelligence Reform and Terrorism Prevention Act (IRTPA).
Some of the challenges that OPM appears to face are an outdated
clearance process that relies heavily on paper, and inadequate
technology that slows the process considerably.
Witnesses: Panel I: Hon. Clay Johnson, Deputy Director for
Management, Office of Management and Budge; Kathy Dillaman,
Associate Director, Federal Investigative Services Division,
Office of Personnel Management; Robert Andrews, Deputy Under
Secretary of Defense for Counterintelligence and Security,
accompanied by Kathleen Watson, Director, Defense Security
Service; Derek Stewart, Director of Military and Civilian
Personnel Issues, U.S. Government Accountability Office; Panel
II: Tim Sample, President, Intelligence and National Security
Alliance; Doug Wagoner, Chief Operating Officer, Sentrillion,
representing the Information Technology Association of America.
Up, Up, and Away! Growth Trends in Health Care Premiums for Active and
Retired Federal Employees (May 18, 2007)
The hearing assessed the impact of rising health care
premiums on Federal workers and retirees, the use of the Office
of Personnel Management's (OPM) negotiating authority on health
care premiums, and ways health care premiums could be reduced.
The Government Accountability Office released a report
``Federal Employee Health Benefits Program: Premium Growth has
Slowed, and Varies among Participating Plans'' in December
2006. The report and the hearing criticized OPM for deciding
not to apply for the Medicare Part D employer subsidy, for
which it is eligible. Furthermore, OPM denied the Postal
Service the opportunity to apply for the subsidy as an
independent government agency operating with out any
appropriated funds. The answers provided to the Chairman and
Ranking Member did not satisfy the criticisms and the witness
from OPM admitted that premium rates would have dropped should
OPM have applied for the subsidy.
Witnesses: Panel I: Nancy Kichak, Associate Director and
Chief Actuary, Strategic Human Resources Policy Division, U.S.
Office of Personnel Management; John Dicken, Director, Health
Care Team, U.S. Government Accountability Office; Panel II:
Stephen Gammarino, Senior Vice President, national Programs,
Blue Cross Blue Shield Association; Alan Lopatin, Legislative
Counsel, National Active and Retired Federal Employees
Association
GAO Personnel Reform: Does it Meet Expectations? (May 22, 2007)
The Subcommittee held a joint hearing with the House
Subcommittee on the Federal Workforce, Postal Service, and the
District of Columbia to examine the personnel system for the
Government Accountability Office (GAO) and the implementation
of the GAO Human Capital Reform Act of 2004, which allowed GAO
to decouple employee pay increases from the General Schedule
and implement a pay for performance system.
Over the last 15 months, Congress has conducted oversight,
and more recently, investigated the implementation of GAO's new
personnel system to determine if it meets the aforementioned
criteria and whether or not it should be replicated government-
wide. The hearing reviewed information discovered by the
investigation and concerns regarding the fact that GAO
employees who were meeting and exceeding expectations in 2006
and 2007 did not receive the annual across the board increase
that all other Federal employees received; the lack of
transparency in the new GAO personnel system and employee
involvement in the development of the system; and the lack of
due process for analysts in Band II who were not placed in Band
IIB.
Witnesses: Panel I: Hon. David Walker, Comptroller General,
Government Accountability Office; Ms. Anne Wagner, General
Counsel, Personnel Appeals Board, Government Accountability
Office; Panel II: Mr. Ronald Stroman, Managing Director, Office
of Opportunity and Inclusiveness, Government Accountability
Office; Mr. Curtis Copeland, Specialist in American National
Government, Congressional Research Service; Mr. Jon
Shimabukuro, Attorney, American Law Division, Congressional
Research Service; Ms. Jane K. Weizmann, Senior Consultant,
Watson Wyatt Worldwide; Dr. Charles H. Fay, Professor of Human
Resource Management, Rutgers University School of Management
and Labor Relations; Mr. Max Stier, President and CEO,
Partnership for Public Service; Mr. Greg Junemann,
International Federation of Technical and Professional
Engineers; Dr. Barry J. Seltser, Former Director, Center for
Design, Government Accountability Office; and Ms. Janice M.
Reece, Former General Counsel, Personnel Appeals Board,
Government Accountability Office
DHS's Acquisition Organization: Who is Really in Charge? (June 7, 2007)
This hearing examined the Department of Homeland Security's
(DHS) acquisition organization and looked at the current state
of the Department's acquisition management. In particular, this
focused on the relationship between the Office of the Chief
Procurement Officer (CPO), the Chief Acquisition Officer (CAO),
and individual acquisition organizations within DHS, as well as
lessons learned from problematic acquisitions, including
Deepwater.
The formation of the Department of Homeland Security was
the single largest restructuring of the Federal Government
since the creation of the Department of Defense in 1947,
bringing together 22 Federal agencies and offices. In fiscal
year 2006, DHS spent over $15 billion on contracts for goods
and services, making it third in line behind the Departments of
Defense and Energy in contract spending. Several of the
agencies that were brought together under DHS already had their
own acquisition organizations which stayed largely intact. All
but two of these organizations--the U.S. Coast Guard and the
Secret Service--were brought under partial authority of DHS's
Chief Acquisition Officer.
The hearing found that despite the complex acquisition
organization at DHS, there was good cooperation between
component agencies and the Office of Procurement Operations,
headed by the CPO. The hearing heard testimony from the Coast
Guard, which credited increased focus on acquisitions,
especially in the Deepwater contract, in improving acquisition
outcomes. The Subcommittee, however, remained concerned that
better oversight may be needed in other large contracts,
especially SBInet. Overall, the hearing found that DHS suffers
from the same acquisition management challenges that face the
rest of the Federal Government, especially in the acquisition
workforce.
Witnesses: Paul Schneider, Under Secretary for Management,
Department of Homeland Security; John P. Hutton, Director,
Acquisition and Sourcing Management, Government Accountability
Office; Rear Admiral John P. Currier, Assistant Commandant for
Acquisition, United States Coast Guard.
Assessing Telework Policies and Initiatives in the Federal Government
(June 12, 2007)
The hearing examined the current government-wide telework
policies and ways that agencies can improve participation and
utilization of this program. The Subcommittee also solicited
input on improving the Telework Enhancement Act of 2007 (S.
1000), introduced by Senators Ted Stevens and Mary Landrieu and
referred to your Subcommittee, to expand telework eligibility
and establish a position at each agency for the development and
implementation of telework programs. Telework policies have
been slowed due to resistance from agency leaders and managers.
However, witnesses cited the need for robust telework policies
to improve agency recruitment and retention of a talented
workforce, reduce overall traffic congestion and commute times,
reduce environmental pollutants, and save agencies money on
overhead costs.
Witnesses: Panel I: Daniel Green, Deputy Associate
Director, Center for Employee and Family Support Policy, Office
of Personnel Management; Hon. Jon Dudas, Under Secretary of
Commerce for Intellectual Property and Director, U.S. Patent
and Trademark Office; Stan Kaczmarczyk, Principal Deputy
Associate Administrator for Government-Wide Policy, General
Services Administration; Bernice Steinhardt, Director of
Strategic Issues, Government Accountability Office; Panel II:
Tom Davison, Trustee of the Board, Federal Managers
Association; Stephen O'Keeffe, Executive Officer, Telework
Exchange; David Isaacs, Government Affairs Director, Hewlett-
Packard, Inc.
From Warehouse to Warfighter: An Update On Supply Chain Management at
DOD (July 10, 2007)
The hearing focused on the progress made by the Department
of Defense (DOD) in improving supply chain management since the
Subcommittee's last hearing on July 25, 2006. In particular,
the hearing examined at progress in implementing the Supply
Chain Management Improvement Plan, and the status of
initiatives in that plan, with a focus on Joint Theater
Logistics.
The goal of supply chain management is to deliver the
``right items to the right place at the right time'' to the
warfighter. The Department of Defense (DOD) relies on a number
of individual processes and activities, which collectively make
up supply chain management to purchase, produce, and deliver
products and services to operational military forces during
wartime or contingency operations. Since the 1990's, the
Government Accountability Office (GAO) has identified DOD's
supply chain management as a high-risk area because of high
inventory levels and a supply system that is not responsive
enough to the needs of the warfighter.
The hearing found that much progress has been made in
improving supply chain management, including the implementation
of Joint Theater Logistics, more needs to be done. The hearing
highlighted the need for increased coordination between the
many players in the supply chain, as well as the need to
develop specific objectives and plans to give the Department
direction in moving forward with future supply chain
initiatives.
Witnesses: Hon. Jack Bell, Deputy Under Secretary for
Logistics, Department of Defense; General Norton Schwartz, U.S.
Air Force, Commander, U.S. Transportation Command; Lieutenant
General Dail, U.S. Army, Director, Defense Logistics Agency;
Bill Solis, Director, Defense Capabilities and Management,
Government Accountability Office.
Great Expectations: Assessments, Assurances, and Accountability in the
Mayor's Proposal to Reform the District of Columbia's Public
School System (July 19, 2007)
The hearing examined D.C. Mayor Adrian Fenty's recently
approved proposal to assume control of the D.C. Public Schools
(DCPS) and review his implementation plan, establish
expectations, and ensure accountability in this effort. While
they had not fully developed plans for reforming the schools,
the Mayor's leadership team discussed ways in which they
planned to bring about changes to the physical structures
within the school system, the quality of the teachers, and the
overall administration of the system. The Chairman was pleased
with the ongoing efforts of the Mayor and his leadership team.
He and the Ranking Member requested that the Government
Accountability Office conduct a short-term and long-term study
of the reform efforts in the system, and they plan to hold
future oversight hearings.
Witnesses: Hon. Adrian Fenty, Mayor of the District of
Columbia; Ms. Michelle Rhee, Chancellor of Education for the
District of Columbia; Mr. Robert C. Bobb, President of the
State Board of Education; Mr. Victor Reinoso, Acting Deputy
Mayor for Education for the District of Columbia; Ms. Deborah A
Gist, State Superintendent of Education; and Mr. Allen Y. Lew,
Executive Director of the Office of Public Education Facilities
Modernization for D.C. Public Schools.
Building a Stronger Diplomatic Presence (August 1, 2007)
The first part of this hearing examined what the State
Department has done to address staffing needs and its ability
to direct resources to areas of the world that present the
greatest diplomatic challenges. It will also examine steps
taken by the Department to develop a staff with the linguistic,
cultural, and management skills necessary to meet these
challenges. The hearing also heard the views and
recommendations of knowledgeable representatives from the
diplomatic and audit communities on how the U.S. can promote
greater American participation in international organizations.
Witnesses: Panel I: Ambassador Heather Hodges, Acting
Director General, Department of State, Mr. James Warlick,
Principal Deputy Assistant Secretary, Bureau of International
Organizations, Department of State; Panel II: Mr. Jess T. Ford,
Director, Foreign Affairs Management, International Affairs and
Trade, U.S. Government Accountability Office, Mr. Thomas
Melito, Director, Multilateral Organizations and International
Finance, International Affairs and Trade, U.S. Government
Accountability Office; Panel III: Mr. John Naland, President,
American Foreign Service Association, Ambassador Thomas Boyatt,
Ambassador, Retired, President and CEO, Foreign Affairs Council
and Ms. Deborah Derrick, Executive Director, Better World
Campaign, United Nations Foundation.
The Role of Federal Executive Boards in Pandemic Preparedness
(September 28, 2007)
The hearing examined a recent Government Accountability
Report (GAO) report entitled ``The Federal Workforce:
Additional Steps Needed to Take Advantage of Federal Executive
Boards' Ability to Contribute to Emergency Operations'' (GAO-
07-515). The Office of Personnel Management (OPM) and the
Federal Emergency Management Agency testified that they have
been working together since 2004 to develop a strategic plan to
use Federal Executive Boards in the overall response effort to
a public health, natural, or man-made disaster, and are close
to finishing the strategic plan. The Federal Executive Board
(FEBs) witnesses from around the country testified that
inconsistencies in resources and organizational structures were
weaknesses that hindered their efforts to keep the Federal
communities prepared and informed in the event of an emergency.
The Chairman was very interested in seeing a final copy of
OPM's strategic plan for FEBs. He and the Ranking Member also
asked the GAO to conduct a report on the preparedness of
Federal agencies in the event of a pandemic.
Witnesses: Panel I: Ms. Bernice Steinhardt, Director
Strategic Issues, Government Accountability Office; Mr. Kevin
Mahoney, Associate Director, Human Capital Leadership and Merit
System Accountability Division, Office of Personnel Management;
Mr. Art Cleaves, Regional Administrator, Region 1, Federal
Emergency Management Agency; Panel II: Mr. Ray Morris,
Executive Director, Federal Executive Board of Minnesota; Ms.
Kimberly Ainsworth, Executive Director, Greater Boston Federal
Executive Board; and Mr. Michael Goin, Executive Director,
Cleveland Federal Executive Board.
Preparing the National Capital Region for a Pandemic (October 2, 2007)
The hearing reviewed the efforts being made by the District
of Columbia, Maryland, Virginia, the OGM Subcommittee, the
local jurisdictions, and the Federal Government to prepare the
National Capital Region for a pandemic influenza outbreak. This
was the third OGM Subcommittee hearing on strategic planning
and preparedness in the National Capital Region (NCR) in the
past two years, and was the second in a series of three
hearings the Subcommittee is holding on pandemic influenza
preparedness. The witnesses testified to the pandemic response
plans in the region and the steps being taken to address
overall preparedness of the NCR in the event of such an
emergency. The witnesses discussed three main areas related to
pandemic influenza preparedness: funding and support of
emergency response for pandemic planning in the NCR, evaluating
the development and exercising of strategic plans, and the
issues related to treatment in the event of an outbreak.
According to the State of Virginia, they would be ready if
a pandemic outbreak were to occur. However, the same confidence
was not express by the other witnesses leading the Chairman to
believe that more needed to be done to prepare the region for
hospital surge capacity, triage protocols, and overall
communication between the Federal Government and the local
governments.
Witnesses: Dr. Kevin Yeskey, M.D. Deputy Assistant
Secretary, Office of Preparedness and Emergency Operations,
U.S. Department of Health and Human Services; Mr. Chris
Geldart, Director, Office of National Capital Region,
Department of Homeland Security; Mr. Darrell Darnell, Director,
Homeland Security and Emergency Management, District of
Columbia; Mr. Robert Mauskapf, Director Emergency Operations,
Planning and Logistics, Virginia Department of Health.
Forestalling the Coming Pandemic: Infectious Disease Surveillance
Overseas (October 4, 2007)
The hearing examined a number of U.S.-funded programs to
help developing countries, particularly those at risk for
pandemic disease outbreaks, to conduct emerging disease
surveillance. Such surveillance is conducted in order to
identify disease threats and to take measures to isolate them
before they spread to other countries.
Witnesses: Panel I: David Gootnick, Director, International
Affairs and Trade, U.S. Government Accountability Office (GAO),
Dr. Ray Arthur, Director, Global Disease Detection Operations
Center, CDC, Dr. Kimothy Smith, DHS, Colonel Ralph Erickson,
Director, Department of Defense Global Emerging Infections
System (GEIS), Walter Reed Army Institute of Research, Dr. Kent
Hill, Assistant Administrator for Health, US Agency for
International Development (USAID); Panel II: Mr. Nathan
Flesness, Executive Director, International Species Information
System (ISIS) Office, Dr. Daniel Janies, Assistant Professor,
Department of Biomedical Informatics, Ohio State University
Medical Center and Dr. James Wilson, Director, Division of
Integrated Biodefense, Imaging Science and Information Systems
Center (ISIS), Georgetown University.
The Perils of Politics in Government: A Review of the Scope and
Enforcement of the Hatch Act (October 18, 2007)
The purpose of this hearing is to examine the scope of the
Hatch Act, how it is enforced, and whether the Act needs to be
enhanced or clarified.
The Hatch Act restricts the political activity of employees
of the Federal Government, the District of Columbia, and
certain state and local employees. The purposes of the Hatch
Act include ensuring that Federal resources are not directed
for partisan political goals; promoting a merit-based Federal
civil service system, rather than a political spoils system;
and protecting Federal employees from being coerced to
participate in political activities.
The hearing highlighted uneven enforcement of the Hatch
Act, which in recent years has been enforced against civil
servants for relatively trivial actions while high-level
appointees and White House officials effectively are insulated
from punishment. Additionally, the hearing underscored the need
to ensure that Federal employees receive complete and accurate
information to understand their obligations under the Hatch
Act.
Witnesses: Panel I: James Byrne, Deputy Special Counsel,
U.S. Office of Special Counsel; Ana Galindo-Marrone, Hatch Act
Unit Chief, U.S. Office of Special Counsel; Chad Bungard,
General Counsel, Merit Systems Protection Board; Panel II:
Colleen Kelley, National President, National Treasury Employees
Union; John Gage, National President, American Federation of
Government Employees; and Thomas Devine, Legal Director,
Government Accountability Project.
Human Capital Needs of the U.S. Customs and Border Protection ``One
Face at the Border'' Initiative (November 13, 2007)
The hearing reviewed the results of a Government
Accountability Office (GAO) report on the traveler inspection
process at land and air ports of entry, entitled Border
Security: Despite Progress, Weaknesses in Traveler Inspections
Exist at Our Nation's Ports of Entry (GAO-08-219).
The hearing highlighted serious weaknesses in the traveler
inspection process at ports of entry revealed by GAO's review.
The central cause of these weaknesses is a critical shortage of
CBP officers, which has led to CBP cutting back on training and
proactive inspection activities. Additionally, the
understaffing is leading to forced overtime and contributing to
low morale and high turnover rates.
Senator Akaka noted that CBP officers do not receive the
same law enforcement benefits that law enforcement officers in
Border Patrol and other agencies receive, and he stated that
Congress should remedy that inequity to help CBP attract and
retain qualified officers.
Witnesses: Panel I: Paul Morris, Executive Director,
Admissibility Passenger Programs, Office of Field Operations,
U.S. Customs and Border Protection (CBP), Department of
Homeland Security; Richard Stana, Director, Homeland Security
and Justice Issues, GAO; Panel II: Colleen Kelley, National
President, National Treasury Employees Union.
Not a Matter of ``If'' But of ``When'': The Status of U.S. Response
Following a RDD Attack (November 15, 2007)
The Subcommittee held a joint hearing with the Ad Hoc
Subcommittee on State, Local, and Private Sector Preparedness
and Integration on November 15, 2007.
The hearing examined our national level of preparedness to
respond to a terrorist attack using a radiological dispersion
device or ``dirty bomb'' and, in particular, at how the U.S.
Department of Homeland Security coordinates with other agencies
within the Federal Government, such as the Department of Energy
and Department of Health and Human Services, as well as
coordination with and capabilities of regional, State and local
governments to respond to a dirty bomb attack.
Witnesses: Mr. Eugene Aloise, Director, Natural Resources
and Environment, U.S. Government Accountability Office (GAO),
Mr. Glenn M. Cannon, Assistant Administrator for Disaster
Operations, Federal Emergency Management Agency, U.S.
Department of Homeland Security (DHS), Dr. Steven Aoki, Deputy
Undersecretary of Energy for Counterterrorism, Department Of
Energy/National Nuclear Security Administration, Thomas P.
Dunne, Associate Administrator for Homeland Security,
Environmental Protection Agency (EPA), Dr. Kevin Yeskey, Deputy
Assistant Secretary for Preparedness and Response, Department
of Health and Human Services (HHS), accompanied by Dr. Richard
J. Hatchett, Associate Director for Radiation Countermeasures
Research and Emergency Preparedness, at the National Institute
for Allergy and Infectious Diseases (NIAID), National
Institutes of Health, HHS, Dr. Thomas Tenforde, National
Council on Radiation Protection and Measurements, Mr. Wayne
Tripp, Domestic Preparedness Equipment Training Assistance
Program, and Mr. Ken Murphy, Oregon Department of Emergency
Management.
Prioritizing Management: Implementing Chief Management Officers at
Federal Agencies (December 13, 2007)
The hearing examined recent legislative and agency action
to improve management at Federal agencies through the
establishment of Chief Management Officers (CMO), and reviewed
a recent Government Accountability Office (GAO) report
entitled, ``Organizational Transformation: Implementing Chief
Operating Officer/Chief Management Officer Positions in Federal
Agencies'' (GAO-08-34). Mr. Johnson and Mr. Walker engaged in a
lively debate about the importance of a second deputy secretary
for management, and whether such a position was necessary
especially as the Federal Government transitions to a new
administration. The Chairman and Ranking Member continued to
see a need for management to be addressed by a dedicated senior
level agency official.
Witnesses: Mr. Clay Johnson, Deputy Director for
Management, White House Office of Management and Budget; Mr.
Paul Brinkley, Deputy Under Secretary for Business
Transformation, Department of Defense; and Mr. David Walker,
Comptroller General, Government Accountability Office.
Management and Oversight of Contingency Contracting in Hostile Zones
(January 24, 2008)
This oversight hearing examined the issue of war zone
contingency contracting, which has long suffered from runaway
costs due to fraud, waste, and abuse.
For more than a decade, the Government Accountability
Office (GAO) has reported shortcomings in oversight of
contractors who support deployed forces. GAO noted that
commanders and other military personnel who are most
responsible for contractor oversight continue to receive little
or no training either as part of their pre-deployment training
or their professional military education on how to fulfill this
duty. GAO and the Special Inspector General for Iraq
Reconstruction also have found similar problems within the
Department of State (DOS) and within the U.S. Agency for
International Development (USAID); these problems also were
explored in the hearing.
The hearing highlighted the need to solve problems caused
by inadequate staffing in contracting and contract management
at DOD; better train military and civilian personnel for future
contingency operations; better equip the government to handle
reconstruction and stabilization; and improve the DOD, DOS, and
USAID operational planning.
Witnesses: Panel I: Stuart W. Bowen, Jr., Special Inspector
General for Iraq Reconstruction; William M. Solis, Director,
Defense Capabilities and Management, U.S. Government
Accountability Office; Carole F. Coffey, Assistant Director,
Defense Capabilities and Management Team, U.S. Government
Accountability Office; Dina L. Rasor, Director, and co-author
Betraying our Troops: The Destructive Results of Privatizing
War; Robert H. Bauman, Investigator, Follow the Money Project,
and co-author Betraying our Troops: The Destructive Results of
Privatizing War; and First Sergeant Perry Jefferies, U.S. Army
(Ret.). Panel II: Confronting Inter-Agency Challenges:
Recommendations - Hon. P. Jackson (``Jack'') Bell, Deputy Under
Secretary for Logistics and Materiel Readiness, Department of
Defense; General David M. Maddox, U.S. Army (Ret.), Former
Commander-in-Chief, U.S. Army Europe; Member of the Gansler
Commission; Ambassador John Herbst, Coordinator for
Reconstruction and Stabilization, Department of State; William
H. Moser, Deputy Assistant Secretary for Logistics Management,
Department of State; and James R. Kunder, Acting Deputy
Assistant Administrator, U.S. Agency for International
Development.
Building and Strengthening the Federal Acquisition Workforce (February
14, 2008)
The hearing examined the current status of the Federal
Government's acquisition workforce by focusing on initiatives
underway to recruit, train, and retain acquisition personnel.
Despite the billions of dollars spent government-wide on
procurement, it is increasingly difficult to fill the ranks of
the Federal acquisition workforce to oversee and manage Federal
contracts. This category of Federal employees is in high demand
but suffers from high turnover. In recruiting and retaining
these employees, agencies also face stiff competition from the
private sector and from other agencies.
The Government Accountability Office and other experts
agree that the acquisition workforce cannot adequately meet the
government's needs. Like much of the Federal Government, the
acquisition workforce faces tough challenges in the years to
come as over half of the workforce will be eligible to retire
in the next 10 years, according to the Federal Acquisition
Institute (FAI).
The Subcommittee found that the Office of Federal
Procurement Policy, along with the Federal Acquisition
Institute and the Defense Acquisition University (DAU) are all
working to address these workforce challenges including
additional certification requirements, training programs and
internship programs. However, much more remains to be improved
to address this issue.
Witnesses: Hon. Paul A. Denett, Administrator, Office of
Federal Procurement Policy, Office of Management and Budget;
Frank J. Anderson, Jr., President, Defense Acquisition
University, Department of Defense; and Karen A. Pica, Director,
Federal Acquisition Institute, General Services Administration.
Government-wide Intelligence Community Management Reforms: Ensuring
Effective Congressional Oversight and the Role of the
Government Accountability Office (February 29, 2008)
This hearing examined how to improve oversight and
accountability of the intelligence community (IC).
In the years since September 11, 2001, and with the passage
of the Intelligence Reform and Terrorism Prevention Act of 2004
(IRTPA), the IC has undergone extensive restructuring. IRTPA
created a Director of National Intelligence (DNI) with broad
responsibility across Federal departments and agencies for
information sharing, collection, and analysis. The DNI has
proposed a series of additional community-wide management
reforms to implement a common performance management system;
create a civilian joint-duty program; modernize the community's
business practices, including reforming the process for
granting security clearances; establish an equal opportunity
and diversity program; establish new acquisition processes; and
develop a community-wide information sharing environment.
With these reforms, the need for effective oversight of the
intelligence community has never been greater. The witnesses
addressed how to enhance congressional oversight of the
intelligence community and, in particular, the role the
Government Accountability Office (GAO), as Congress's
investigative arm, could play in reviewing ongoing IC
management reforms.
The Intelligence Community Auditing Act (S. 82), introduced
by Chairman Akaka was discussed at the hearing. S. 82 would
reaffirm GAO's authority to perform audits and evaluations of
financial transactions, programs, and activities of elements of
the intelligence community, and to obtain the documents needed
to do so.
Witnesses: Hon. David M. Walker, Comptroller General,
Government Accountability Office (GAO); Marvin C. Ott,
Professor of National Security Policy, National War College,
National Defense University; Steven Aftergood, Director,
Government Secrecy Project, Federation of American Scientists;
Frederick M. Kaiser, Specialist in American National
Government, Government and Finance Division, Congressional
Research Service; and Ronald A. Marks, Senior Vice President
for Government Relations, Oxford Analytica, Inc.
On the Path to Great Educational Results for the District's Public
Schools? (March 14, 2008)
This hearing was a status update of the major reform effort
underway within the District of Columbia Public Schools.
Chairman Akaka and Ranking Member Voinovich requested that
the Government Accountability Office (GAO) conduct a short-term
and long-term evaluation of the reforms. GAO testified about
its initial findings, which generally praised the District for
its efforts to establish a foundation for the reforms. However,
GAO criticized the Chancellor and Deputy Mayor for Education
for not putting together a long-term strategic plan for the
reforms. The Chancellor and Deputy Mayor testified that they
believe action is needed more urgently than planning.
Witnesses: Cornelia Ashby, Director, Education, Workforce,
and Income Security Issues, U.S. Government Accountability
Office; Michelle Rhee, Chancellor, District of Columbia Public
Schools; Victor Reinoso, Deputy Mayor for Education, District
of Columbia; Deborah A. Gist, State Superintendent of
Education, District of Columbia; Allen Y. Lew, Executive
Director, Office of the Public Education and Facilities
Modernization for the District of Columbia Public Schools; John
W. Hill, Chief Executive Officer, Federal City Council; and
Jane Hannaway, Director, Education Policy Center, Urban
Institute.
Managing Diversity of Senior Leadership in the Federal Workforce and
the Postal Service (April 3, 2008)
The hearing examined diversity in the Senior Executive
Service (SES) of the Federal Government, in terms of women,
racial and ethnic minorities, and persons with disabilities in
the SES. Legislation to improve SES diversity, S. 2148/H.R.
3774, the Senior Executive Diversity Assurance Act of 2007 was
an important focus on the hearing.
The Government Accountability Office presented findings
from its ongoing report evaluating diversity in the SES, the
Office of Personnel Management discussed its efforts to improve
the diversity of the SES, and associations representing senior
executives testified to the importance of diversity in the SES
and the need for an SES resource office within the Office of
Personnel Management (OPM).
The hearing also examined diversity in the senior ranks of
the Postal Career Executive Service, and the equivalent career
executive positions in the Postal Regulatory Commission, the
U.S. Postal Inspection Service, and the U.S. Postal Service
Office of the Inspector General. Although the Administration
expressed concerns with S. 2148/H.R. 3774, witnesses' testimony
clearly demonstrated diversity in the SES could be improved.
Witnesses: Nancy Kichak, Associate Director and Chief
Actuary, Strategic Human Resources Policy Division, U.S. Office
of Personnel Management; Susan LaChance, Vice President of
Employee Development & Diversity, U.S. Postal Service; George
H. Stalcup, Director of Strategic Issues, U.S. Government
Accountability Office; Katherine Siggerud, Director of Physical
Infrastructure, U.S. Government Accountability Office; Steven
W. Williams, Secretary and Chief Administrative Officer, Postal
Regulatory Commission; Ronald Stith, Assistant Inspector
General for Mission Support, U.S. Postal Service, Office of
Inspector General; Nicole A. Johnson, Assistant Chief Inspector
Investigations and Security Support, U.S. Postal Inspection
Service; Bray Barnes, Acting Chief Human Capital Officer,
Department of Homeland Security; Carmen Walker, Deputy Officer,
Office for Civil Rights & Civil Liberties, Department of
Homeland Security; William Bransford, General Counsel, Senior
Executives Association; William Brown, President, African
American Federal Executives Association; Rhonda Trent,
President, Federally Employed Women; Dr. Carson Eoyang,
Executive Director, Asian American Government Executives
Network; Jose Osegueda, President, National Association of
Hispanic Federal Executives; and Darlene Young, President,
Blacks in Government.
Beyond Control: Reforming Export Licensing Agencies for National
Security and Economic Interests (April 24, 2008)
The purpose of the hearing was to examine the structure of
the Federal government agencies that are responsible for
licensing controlled exports, what kinds of processes they have
in place for doing so, how those structures can help or impede
decision making related to those licenses, and any
recommendations for improving the export control processes.
The Federal agencies overseeing U.S. exports of military
and dual-use technology must weigh national security, foreign
policy, and economic interests in determining whether
technology may be exported. The Export Administration Act and
the Arms Export Control Act provide the statutory basis for
making these evaluations and were created to prevent the
Nation's enemies from gaining a military advantage. The context
of export controls has changed since modern export regulations
originally were put in place, before and during the Cold War.
Since then, rapid globalization, decentralized networks of
enemy non-state actors, and quickly advancing, more accessible
advanced technology, have presented new challenges to U.S.
national security and economic interests.
At the hearing, Chairman Akaka stated that the U.S. export
control system has not been adapted for a globalized world. The
hearing highlighted many of the management problems that plague
the organizations charged with administering export controls
over both munitions and dual-use technology. The witnesses
provided a number of recommendations to improve U.S. export
controls.
Witnesses: Ambassador Stephen D. Mull, Acting Assistant
Secretary for Political-Military Affairs, Department of State;
Beth M. McCormick, Acting Director, Defense Technology Security
Administration, Department of Defense; Matthew S. Borman,
Deputy Assistant Secretary, Bureau of Industry and Security,
Department of Commerce; Ann Calvaresi Barr, Director,
Acquisition and Sourcing Management, Government Accountability
Office; William A. Reinsch, President, National Foreign Trade
Council; Daniel B. Poneman, Principal, The Scowcroft Group; and
Edmund B. Rice, President, Coalition for Employment through
Exports.
The Impact of Implementation: A Review of the REAL ID Act and the
Western Hemisphere Travel Initiative (April 29, 2008)
This hearing examined how the Federal Government is
preparing, with regard to staffing, infrastructure, and
planning, to implement REAL ID and the Western Hemisphere
Travel Initiative (WHTI).
The 9-11 Commission report recommended that the Federal
Government set standards identification documents including
drivers' licenses. In addition, the Commission concluded that
U.S. citizens, as well as non-citizens, should be required to
carry documents allowing their identity and citizenship to be
securely verified when entering the United States. The REAL ID
Act of 2005 governs the implementation of the standards for
identification documents. The WHTI created pursuant to the
Intelligence Reform and Terrorism Prevention Act of 2004
(IRTPA), governs the implementation of required verification of
identity and citizenship to enter the United States.
Concerns have been raised about both REAL ID and WHTI.
State and local government officials are deeply concerned about
REAL ID because it is an unfunded mandate. Moreover, privacy
advocates believe that REAL ID does not sufficiently protect
the personal information that will be contained in
identification documents and linked State databases. Eighteen
States have passed laws either prohibiting compliance with REAL
ID or resolutions expressing opposition to REAL ID.
The chief concerns over the WHTI requirements are the
impact the new requirements will have on travel, trade, and the
economy of border areas, as many travelers do not have
passports or other acceptable documents. In addition, there
have been concerns about alerting travelers of the WHTI
requirements in a timely fashion and the impact WHTI may have
on legitimate travel and trade. The hearing revealed that
problems of funding, privacy, and overall planning for REAL ID
and WHTI have not yet been resolved.
Witnesses: Hon. Stewart A. Baker, Assistant Secretary,
Office of Policy Directorate, U.S. Department of Homeland
Security; Derwood K. Staeben, Senior Advisor, Western
Hemisphere Travel Initiative, Bureau of Consular Affairs, U.S.
Department of State; Hon. Donna Stone, President, National
Conference of State Legislatures; David Quam, Director of
Federal Relations, National Governors Association; Caroline
Fredrickson, Director, American Civil Liberties Union,
Washington Legislative Office; Roger J. Dow, President and CEO,
Travel Industry Association; Angelo I. Amador, Director of
Immigration Policy, U.S. Chamber of Commerce; and Sophia Cope,
Staff Attorney; and Ron Plesser Fellow, Center for Democracy
and Technology.
From Candidates to Change Makers: Recruiting and Hiring the Next
Generation of Federal Employees (May 8, 2008)
The hearing examined the challenges of improving the
recruiting and hiring processes for Federal Government jobs in
order to meet the challenge created by the large number of
Federal employees eligible to retire in the next 5 years.
The Office of Personnel Management (OPM) testified to the
work it is doing with the Chief Human Capital Officers Council
to develop the best practices for hiring, succession planning,
and strategic human capital plans to recruit new hires. OPM
further discussed the need for modernized information
technology systems at agencies to move candidates quickly
through the process.
The Nuclear Regulatory Commission testified about its
robust effort to attract highly-talented scientific and
technical employees from diverse backgrounds. The second panel
of witnesses testified to the need for improvements across
agencies to expedite the hiring process, improve communication,
and adhere closely to the Merit System Principles.
Witnesses: Robert Goldenkoff, Director of Strategic Issues,
Government Accountability Office; Angela Bailey, Deputy
Associate Director, Talent and Capacity Policy Center,
Strategic Human Resources Division, Office of Personnel
Management; John Crum, Acting Director, Office of Policy and
Evaluation, Merit Systems Protection Board; James McDermott,
Chief Human Capital Officer, Nuclear Regulatory Commission;
John Gage, National President, American Federation of
Government Employees, Colleen M. Kelley, National President,
National Treasury Employees Union; Dan Solomon, Chief Executive
Officer, Virilion, Inc.; Max Stier, President and Chief
Executive Officer, Partnership for Public Service; and Donna M.
Matthews, Principal, Federal Sector Programs, Hewitt
Associates, LLC.
National Security Bureaucracy for Arms Control, Counterproliferation,
and Nonproliferation: The Role of the Department of State--Part
I (May 15, 2008)
The purpose of this hearing was to examine the
organizational structures within the State Department
responsible for arms control, counterproliferation, and
nonproliferation; the responsiveness of those structures to and
processes for optimizing national efforts and implementing
policy and international regimes; human capital challenges; and
any recommendations for improving the arms control,
counterproliferation, and nonproliferation bureaucracies.
The State Department's ``T'' bureau contains the
organizational elements that oversee the areas of arms control,
nonproliferation, and counterproliferation. The State
Department was not always the lead agency for these issues. The
Arms Control and Disarmament Agency (ACDA) was established in
1961 to address the growing international security threat of
nuclear weapons. This agency was independently led by a
director who could take issues directly to the President. There
remain many lingering concerns about the consequences of the
decision to disestablish ACDA and merge its functions into the
State Department.
The hearing highlighted the dissolution of ACDA and
problems with the current organizational structure at the State
Department. In July 2005, Secretary of State Condoleezza Rice
reorganized the bureaus supporting the Under Secretary of State
for Arms Control and International Security within the T bureau
in order to address the threat of weapons of mass destruction.
Witnesses reported that the 2005 reorganization resulted in
a reduction of the number and capabilities of existing staff to
handle arms control and nonproliferation matters. All witnesses
provided recommendations that would strengthen this
organization. The viability of an independent arms control and
nonproliferation agency was also discussed by the witnesses.
Witnesses: Hon. Thomas Graham, Jr., former Acting Director,
Arms Control and Disarmament Agency; Andrew K. Semmel, former
Deputy Assistant Director, Nuclear Nonproliferation Policy and
Negotiations, Department of State; and Hon. Norman A. Wulf,
former Deputy Assistant Director, Nonproliferation and Arms
control, Arms Control and Disarmament Agency, Department of
State.
Security Clearance Reform: The Way Forward (May 22, 2008)
This hearing provided an update to the Subcommittee
regarding progress made to date in addressing the longstanding
backlog of security clearance investigations, and focused on
new reforms outlined by the Administration in a report released
on April 30, 2008. This was the fifth in a series of hearings
regarding the clearance process.
The number of security clearance requests that the
Department of Defense now processes, primarily for contractors,
has greatly increased over the past 7 years. In 2005, the
Government Accountability Office (GAO) placed the Department of
Defense Security Clearance process on the GAO High-Risk List
due to a mounting backlog of clearance requests as well as
DOD's inability to manage the backlog. In response DOD
transferred the investigative role for clearances to the Office
of Personnel Management (OPM), which has made some improvements
in the backlog and processing times. However, the Subcommittee
found that OPM continues to rely on antiquated technology
systems and cumbersome processes to conduct investigations.
Over the course of 2008, the President directed DOD, the
Office of Management and Budget (OMB), and the Office of the
Director of National Intelligence (ODNI) to submit plans for
improving the security clearance process, leading to the
creation of the Joint Security and Suitability Reform Team and
their issuance of a report with several recommendations for
reform.
That report, which was presented to the Subcommittee, laid
out goals to improve the process, most notably increasing
automation and continuously reevaluating clearances to
eliminate periodic reinvestigations. After testimony on both
proposed improvements, as well as ongoing problems with the
process, the Subcommittee committed to continued oversight of
this issue.
Witnesses: Brenda S. Farrell, Director, Defense
Capabilities and Management, Government Accountability Office;
Hon. Clay Johnson, III, Deputy Director for Management, Office
of Management and Budget; Beth McGrath, Principal Deputy Under
Secretary of Defense for Business Transformation, Department of
Defense; John Fitzpatrick, Director, Specialty Security Center,
Office of the Director of National Intelligence; and Kathy L.
Dillaman, Associate Director, Federal Investigative Services
Division, Office of Personnel Management.
Non-Foreign COLA: Finding an Equitable Solution (May 29, 2008)
The purpose of the field hearing at the Oahu Veterans
Center in Honolulu, Hawaii, was to review various proposals,
including S. 3013, the Non-Foreign Area Retirement Equity
Assurance Act, to phase-out the non-foreign cost-of-living
allowance (COLA) and replace it with locality pay for Federal
civilian employees living in Alaska, Hawaii, and the U.S.
territories.
The Office of Personnel Management presented justification
for the need for action, its proposal, and concerns with
provisions in S. 3013. The second panel of witnesses offered
perspectives from local employees endorsing the need for
improved retirement equity while preserving take-home pay in
any conversion process away from non-foreign cost-of-living
allowance to locality pay.
Witnesses: Chuck D. Grimes, Deputy Associate Director,
Strategic Human Resources Policy Division, Office of Personnel
Management; Bradley Bunn, Program Executive Officer, National
Security Personnel System, Department of Defense; Jo Ann
Mitchell, Manager, Accounting Services, U.S. Postal Service;
Joyce Matsuo, President, Oahu COLA Defense Committee, Inc.;
Sharon Warren, President, COLA Defense Committee of Anchorage,
Inc.; Manuel Q. Cruz, President, COLA Defense Committee of
Guam; Michael Fitzgerald, President, Chapter 187, NAVFAC
Hawaii, Federal Managers Association; and Terry Kaolulo,
President, Hawaii State Association of Letter Carriers.
National Security Bureaucracy for Arms Control, Counterproliferation,
and Nonproliferation: The Role of the Department of State--Part
II (June 6, 2008)
This hearing was the Subcommittee's second hearing to
examine the organizational structures within the State
Department responsible for arms control, counterproliferation,
and nonproliferation.
The hearing went into a great deal of detail about the 2005
reorganization of the bureaus supporting the Under Secretary of
State for Arms Control and International Security within the
State Department's ``T'' bureau, which is responsible for arms
control, nonproliferation, and counterproliferation. In
particular, the hearing highlighted the human capital
challenges confronting the T bureau.
Witnesses: Patricia A. McNerney, Principal Deputy Assistant
Secretary, Bureau of International Security and
Nonproliferation, Department of State, and Linda S.
Taglialatela, Deputy Assistant Secretary for Human Resources,
Department of State.
Management Challenges Facing the Federal Protective Service: What Is At
Risk? (June 19, 2008)
This hearing examined a GAO report that highlighted serious
staffing and management challenges within the Federal
Protective Service (FPS).
With responsibility for protecting approximately nearly
9,000 Federal facilities nationwide, FPS plays a critical role
in the defense of terrorism and other criminal activity.
The GAO report revealed numerous problems that undermine
FPS's ability to protect Federal buildings, including
understaffing, poor morale and high attrition, budget and
equipment problems, and poor oversight of contract security
guards.
Although Congress, through an amendment that Senator
Clinton offered and Chairman Akaka cosponsored, recently placed
a floor on the number of FPS employees and required FPS to
raise fees to cover the costs, the hearing made clear that
further action is needed to improve FPS management and
operations.
Witnesses: Gary W. Schenkel, Director, Federal Protective
Service, U.S. Immigration and Customs Enforcement; Mark L.
Goldstein, Director, Physical Infrastructure Issues, Government
Accountability Office; David Wright, President, American
Federation of Government Employees (AFGE), Local 918 (Federal
Protective Service).
A Domestic Crisis With Global Implications: Reviewing the Human Capital
Crisis at the State Department (July 16, 2008)
The State Department testified about its efforts to address
concerns raised in two State Department Inspector General
reports on the Bureau of Human Resources, which included more
than 60 recommendations to address the Department's failing
human capital efforts. The State Department witnesses were
questioned on the success of addressing staffing and management
needs in foreign or civil service through the Transformational
Diplomacy Initiative (TDI).
The second pnel of witnesses offered criticism of the
current Administration's approach to investing in diplomatic
readiness and offered recommendations for the next
Administration.
Witnesses: Panel I: Ambassador Harry Thomas, Director
General of the Foreign Service and Director of Human Resources,
U.S. Department of State; Linda Taglialatela, Deputy Assistant
Secretary, Bureau of Human Resources, Department of State;
Panel II: John Naland, President, American Foreign Service
Association; and Ambassador Ronald Neumann (Ret.), President,
American Academy of Diplomacy.
Improving Performance: A Review of Pay-for-Performance Systems in the
Federal Government (July 22, 2008)
The purpose of this hearing was to discuss the many reform
efforts to transition employees out of Title 5 personnel system
and into pay-for-performance systems.
The Office of Personnel Management and representative
agencies testified to the importance and successes of pay-for-
performance systems and responded to questions and concerns
from the Chairman about the use of quotas and forced
distribution of ratings in the performance evaluation process.
The second panel of witnesses offered criticisms of the
systems suggesting that efforts to elicit higher performance
lacked transparency and fairness, leading to lower morale and
less confidence in the system.
Witnesses: Panel I: Hon. Linda Springer, Director, U.S.
Office of Personnel Management; Richard Spires, Deputy
Commissioner for Operational Support, Internal Revenue Service;
Gale Rossides, Deputy Administrator, Transportation Security
Administration; Ronald Sanders, Chief Human Capital Officer,
Office of the Director of National Intelligence; Bradley Bunn,
Program Executive Officer, National Security Personnel System,
Department of Defense; J. Christopher Mihm, Managing Director,
Strategic Issues, Government Accountability Office; Panel II:
Carol Bonosaro, President, Senior Executives Association; John
Gage, National President, American Federation of Government
Employees; Colleen M. Kelley, National President, National
Treasury Employees Union; Jonathan D. Bruel, Executive
Director, IBM Center for the Business of Government; and Dr.
Charles Fay, Professor of Human Resources Management, Rutgers
University School of Management.
A Reliance on Smart Power--Reforming the Foreign Assistance Bureaucracy
(July 31, 2008)
The purpose of this hearing was to examine the
organizational structures of the State Department responsible
for coordinating and leading U.S. foreign assistance; their
missions; the processes in place for optimizing national
efforts; the responsiveness of those structures to and
processes for implementing policy; human capital challenges;
issues related to the 2006 foreign assistance reorganization at
the Department; and any recommendations for improving the
foreign assistance bureaucracy.
In January 2006, Secretary of State Condoleezza Rice
announced her intention to more closely align the U.S. Agency
for International Development (USAID) with the State
Department. This action, which became known as the ``F
Process,'' was intended to ensure more effective use of
resources in meeting policy objectives. The State Department's
F Bureau has become the primary entity within the U.S.
Government for coordinating U.S. foreign assistance.
There have been many ongoing concerns with this
reorganization such as concerns over a continuing lack of a
strategic plan, too many agencies and programs providing aid
overseas without adequate coordination, the militarization of
foreign assistance, and unresolved human capital challenges at
USAID.
At the hearing, Chairman Akaka stated that improving the
organizational and human capital issues would help the next
Presidential administration better focus its efforts overseas
and strengthen national security. There was broad agreement
among the witnesses that management and coordination must
improve and that human capital challenges need more attention.
Witnesses: Richard L. Greene, Deputy Director for U.S.
Foreign Assistance, Department of State; Leo Hindery, Jr., Vice
Chairman, Helping to Enhance the Livelihood of Persons around
the Globe (HELP) Commission; Dr. Gordon Adams, Distinguished
Fellow, The Henry L. Stimson Center; Anne C. Richard, Vice
President for Government Relations and Advocacy, International
Rescue Committee; Sam A. Worthington, President and Chief
Executive Officer, InterAction; and Dr. Gerald Hyman, Senior
Adviser and President of Hills Program on Governance, Center
for Strategic and International Studies.
Managing the Challenges of the Federal Government Transition (September
10, 2008)
In 2008, the Federal Government faced an unprecedented
transition challenge, with major government reorganizations and
the creation of the Department of Homeland Security since the
last presidential transition. Additionally, the transition to
the next Administration will take place during a time with
great economic and national security risks and major management
challenges across the Federal Government. Therefore, it was
essential that the outgoing Administration ensured that
agencies laid the groundwork for transitioning to a new
Administration, without letting management planning and human
capital planning lag.
The hearing focused on ensuring that the Bush
Administration was planning and preparing adequately for a
smooth transition so that agencies could avoid a management
vacuum after much of the political leadership leaves in January
2009. The hearing also examined whether any changes are needed
to the vetting and appointment process to get appointees
confirmed more quickly.
The Subcommittee heard testimony from three of the
principal agencies involved in the transition. The Office of
Management and Budget informed the Subcommittee that the Deputy
Director for Management had been working closely with agency
heads to undertake extensive transition planning, especially
the identification of career individuals to take on leadership
roles until successors were appointed. The Office of Government
Ethics and the General Services Agency assured the Subcommittee
that they were adequately equipped to handle the incoming
transition teams and expeditiously handle the required ethics
certifications.
Witnesses: Gene L. Dodaro, Acting Comptroller General,
Government Accountability Office; Hon. Clay Johnson, III,
Deputy Director for Management, Office of Management and
Budget; Hon. Robert Cusick, Director, Office of Government
Ethics; and Gail T. Lovelace, Chief Human Capital Officer,
General Services Administration.
Keeping the Nation Safe through the Presidential Transition (September
18, 2008)
This hearing examined the Department of Homeland Security's
(DHS) planning for the upcoming presidential transition. In
particular, the hearing reviewed a June 2008 report by the
National Academy of Public Administration (NAPA) entitled,
Addressing the 2009 Presidential Transition at the Department
of Homeland Security.
The Federal Government faces significant challenges as it
prepares for the first presidential transition since the
attacks of Sepatember 11, 2001. Smooth functioning during the
transition is critical, as there may be a heightened risk of
terrorist attack during the time around the presidential
transition. The challenges of the transition will be especially
acute for DHS. DHS has been on the Government Accountability
Office's high-risk list since its formation in 2003, and this
will be its first presidential transition.
The hearing made clear that DHS is taking transition
planning seriously and was working to address problems that
could undermine a smooth transition. However, it also was clear
that high turnover and a large number of career executive
vacancies would make the presidential transition especially
challenging.
Witnesses: Hon. Elaine Duke, Under Secretary for
Management, Department of Homeland Security; Frank Chellino,
Chairman, NAPA Panel for the U.S. Congress and U.S. Department
of Homeland Security; Patricia McGinnis, President and Chief
Executive Officer, Council for Excellence in Government; and
John Rollins, Specialist in Terrorism and National Security,
Congressional Research Service.
A Reliance on Smart Power--Reforming the Public Diplomacy Bureaucracy
(September 23, 2008)
The purpose of this hearing was to examine the structures
of the State Department responsible for coordinating U.S.
public diplomacy, their missions, processes in place for
implementing U.S. policy, the responsiveness of the
organizational structures and processes to the executive
branch's public diplomacy policies, human capital challenges,
and any recommendations for improving public diplomacy.
Public diplomacy, also known as strategic communication, is
generally defined as the promotion of U.S. national interests
through understanding, informing, and influencing foreign
audiences. These foreign audiences are not always government
officials with whom our diplomats engage. Instead, public
diplomacy most frequently seeks to influence a foreign public's
opinion in support of our national policies and objectives. In
1999, the U.S. Information Agency, the lead U.S. public
diplomacy agency, was merged into the State Department. Most of
its functions, with the exception of the Broadcasting Board of
Governors (BBG) and associated networks, became what is now
known as the ``R'' Bureau. Challenges affecting U.S. public
diplomacy include interagency coordination, the usefulness of
the existing public diplomacy strategy, and human capital.
Mr. Midura, a State Department witness, informed the
Subcommittee that the modernization of public diplomacy is a
top priority of the State Department. Private witnesses
addressed not only the important role of the American public in
public diplomacy, but also dysfunctional staffing arrangements,
training gaps, the involvement of the private sector, and the
viability of having an official in the White House directing
government-wide public diplomacy efforts.
Witnesses: Christopher Midura, Acting Director, Office of
Policy, Planning, and Resources for Public Diplomacy and Public
Affairs, Department of State; Ambassador Scott H. Delisi,
Director, Career Development and Assignments, Bureau of Human
Resources, Department of State; Rick A. Ruth, Director, Office
of Policy and Evaluation, Bureau of Education and Cultural
Affairs, Department of State; Peter Kovach, Director, Global
Strategic Engagement Center, Department of State; Hon. Douglas
K. Bereuter, President and Chief Executive Officer, The Asia
Foundation; Ambassador Elizabeth F. Bagley, Vice Chairman, U.S.
Advisory Commission on Public Diplomacy; Stephen M. Chaplin,
Senior Adviser, The American Academy of Diplomacy; Hon. Ronna
A. Freiberg, Former Director of Congressional and
Intergovernmental Affairs, U.S. Information Agency; and Hon.
Jill A. Schuker, Fellow, University of Southern California--
Center for Public Diplomacy.
II. Legislation
The following bills were considered by the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia during the 110th Congress:
MEASURES ENACTED INTO LAW
P.L. 110-33, H.R. 2080--This bill amends the District of
Columbia Home Rule Act to conform the District charter to
revisions made by the Council of the District of Columbia
relating to public education. H.R. 2080 also repeals the grant
of authority to the Mayor and the District Council to establish
the annual budget for the District's Board of Education, which
also prohibits the Mayor and Council from specifying the
amounts of and purposes for which funds may be expended.
Further, H.R. 2080 repeals: (1) the authority of the Board to
govern D.C. public schools; and (2) provisions for election of
the Board. H.R. 2080 was introduced by Delegate Norton on May
1, 2007 and referred to the House Committee on Oversight and
Government Reform. The bill was cosponsored by Representative
Tom Davis. On May 1, 2007, the House Committee on Oversight and
Government Reform held hearings and reported the bill to the
House of Representatives by voice vote. H.R. 2080 passed the
House of Representatives on suspension of the rules by voice
vote on May 8, 2007. H.R. 2080 was received in the Senate on
May 9, 2007 and placed on the Senate Legislative Calendar under
General Orders on May 9, 2007 (Calendar No. 145). The bill
passed the Senate without amendment by unanimous consent on May
22, 2007. H.R. 2080 was enacted on June 1, 2007. After
enactment, on March 14, 2008, the Senate Committee on Homeland
Security and Governmental Affairs Subcommittee on Oversight of
Government Management, the Federal Workforce, and the District
of Columbia held hearings on the bill.
P.L. 110-372, S. 1046--The Senior Professional Performance
Act of 2008 amends provisions relating to locality-based
comparability payments for Federal employees to exempt senior-
level (SL) and scientific and professional personnel (ST)
employees from limitations on total basic and comparability pay
established at level III of the Executive Schedule. S. 1046
further increases the rate of basic pay for certain senior-
level positions to level III.
S. 1046 also permits a further increase to level II for
agencies with a performance appraisal system that has been
certified as making meaningful distinctions based on relative
performance. S. 1046 protects employees who are transferred to
an agency subject to existing pay limitations from pay
reductions. Moreover, S. 1046 provides that appointments to
positions classified above GS-15 may be made on approval of the
appointee's qualifications by the Director of the Office of
Personnel Management (OPM) on the basis of qualification
standards developed by the agency involved in accordance with
criteria prescribed by the Director. S. 1046 also prohibits a
reduction in the rate of basic pay for certain senior-level
positions as a result of amendments made by this Act.
S. 1046 limits an agency's certification of performance
appraisal systems to 24 months, with an additional extension of
up to six months by the Director. S. 1046 additionally allows
extensions of certifications scheduled to expire at the end of
2008 or 2009. S. 1046 was introduced on March 29, 2007, by
Senator Voinovich and was referred to the Homeland Security and
Governmental Affairs Committee.
S. 1046 was further referred to the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia on June 6, 2007. On April 22, 2008 the
bill was reported to the Senate by Senator Lieberman without
amendment (S. Rept. 110-328) at which point it was placed on
the Senate Legislative Calendar under General Orders (Calendar
No. 703).
The bill was passed by unanimous consent, with an amendment
on July 11, 2008. S. 1046 was received in the House of
Representatives on July 14, 2008 and referred to the House
Committee on Oversight and Government Reform. S. 1046 was
passed by the House of Representatives on September 26, 2008 by
the Yays and Nays under suspension of the rules. S. 1046 was
enacted on October 8, 2008.
P.L. 110-250, S. 1245--This bill amends provisions of the
Intelligence Reform and Terrorism Prevention Act of 2004
relating to the implementation of a mutual aid agreement for
the National Capital Region in the event of a regional or
national emergency to: (1) remove the requirement that agents
and volunteers acting on behalf of a regional organization or
entity be committed (listed) in a mutual aid agreement in order
to prepare for or respond to such an emergency; and (2) expand
the list of organizations or entities authorized to enter into
and be covered by such an agreement to include any governmental
agency, authority, or institution within the Region.
S. 1245 was introduced by Senator Cardin on April 26, 2007
and was referred to the Homeland Security and Governmental
Affairs Committee. The bill was cosponsored by Senators
Mikulski, Warner and Webb. On June 6, 2007, the bill was
further referred to Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of
Columbia. On December 6, 2007, Senator Lieberman reported the
bill to the Senate without amendment (S. Rept. 110-237) and S.
1245 was placed on the Senate Legislative Calendar under
General Orders (Calendar No. 525).
S. 1245 passed the Senate by unanimous consent without
amendment on December 12, 2007. On December 13, 2007, S. 1245
was received in the House of Representatives. On June 9, 2008,
the bill was agreed to by voice vote under suspension of the
rules by the House of Representatives. S. 1245 was enacted on
June 26, 2008.
MEASURES FAVORABLY REPORTED BY THE SUBCOMMITTEE AND PASSED BY THE
SENATE
S. 274--The Federal Employee Protection of Disclosures Act
protects Federal employees who have lawfully disclosed credible
evidence of waste, abuse, or gross mismanagement in the
government. Also, S. 274 includes disclosure of national
defense or the conduct of foreign affairs that the employee
reasonably believes is direct evidence of waste, abuse or gross
mismanagement disclosed to a Member or employee of Congress who
is authorized to receive information of the type disclosed. S.
274 excludes disclosures pertaining to policy decisions that
lawfully exercise discretionary authority unless the disclosing
employee reasonably believes that there is evidence of a
violation of law or government waste, fraud, or abuse. The bill
also codifies the legal standard for determining whether a
whistleblower has a reasonable belief that a disclosure
evidences governmental waste, fraud, or abuse, or a violation
of law.
S. 274 was introduced by Senator Akaka on January 11, 2007
and referred to the Committee on Homeland Security and
Governmental Affairs. The bill was cosponsored by Senators
Carper, Collins, Durbin, Grassley, Kennedy, Lautenberg, Leahy,
Levin, Lieberman, Mikulski, Pryor and Voinovich. The bill was
further referred to the Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of Columbia
on March 30, 2007. Senator Lieberman reported the bill to the
Senate with an amendment in the nature of a substitute on
November 15, 2007 (S. Rept. 110-232) and S. 274 was placed on
the Senate Legislative Calendar under General Orders (Calendar
No. 513). The substitute amendment of the Committee on Homeland
Security and Governmental Affairs was agreed to by unanimous
consent and the S 274 was passed by unanimous consent on
December 17, 2007. The bill was received in the House of
Representatives and held at the desk on December 17, 2007.
S. 3013--The Non-Foreign Area Retirement Equity Assurance
Act of 2008 revises Federal employee locality-based
comparability payments provisions to include U.S. territories
and possessions, including the Commonwealth of Puerto Rico and
the Commonwealth of the Northern Mariana Islands, within a pay
locality. S. 3013 sets forth maximum rates of pay for Senior
Executive Service (SES) personnel in such areas. S. 3013 was
introduced by Senator Akaka on May 13, 2008 with Senators
Inouye, Murkowski and Stevens as cosponsors. The bill was
referred to the Committee on Homeland Security and Governmental
Affairs and further referred to the Subcommittee on Oversight
of Government Management, the Federal Workforce, and the
District of Columbia on June 19, 2008.
Senator Lieberman reported S. 3013 to the Senate with
amendments on September 11, 2008 (S. Rept. 110-456). At which
time, it was placed on the Senate Legislative Calendar under
General Orders (Calendar No. 954). The amendments proposed by
the Committee on Homeland Security and Governmental Affairs
were agreed to by unanimous consent and S. 3013 passed the
Senate by unanimous consent on October 1, 2008. S. 3013 was
received in the House and referred to the Committee on
Oversight and Government Reform, and in addition to the
Committee on Veterans' Affairs, for a period to be subsequently
determined by the speaker on October 2, 2008.
MEASURES REFERRED TO THE SUBCOMMITTEE UPON WHICH HEARINGS WERE HELD OR
OTHER LEGISLATIVE ACTION WAS TAKEN
H.R. 404--The Federal Customer Service Enhancement Act of
2008 requires the Director of the Office of Management and
Budget (OMB) to prescribe guidance that establishes best
practices to: (1) ensure that Federal agencies are providing
high quality customer service; and (2) monitor customer service
quality at Federal agencies. H.R. 404 was introduced to the
House of Representatives by Representative Cuellar on January
11, 2007 and referred to the House Committee on Oversight and
Government Reform. The bill was cosponsored by Representatives
John R. Carter, John J. Duncan, Jr., Virginia Foxx, Bob
Goodlatte and Thaddeus G. McCotter.
H.R. 404 was further referred to the Subcommittee on
Government Management, Organization and Procurement. After
hearings on June 12, 2007, the House Committee on Oversight and
Government Reform reported the bill out of committee with an
amendment in the nature of a substitute by voice vote. After
debate and tabling, H.R. 404 was passed by the House of
Representatives on suspension of the rules by the Yeas and Nays
on July 23, 2007. H.R. 404 was received in the Senate on July
24, 2007 and referred to the Committee on Homeland Security and
Governmental Affairs. The bill was further referred to the
Subcommittee on Oversight of Government Management, the Federal
Workforce, and the District of Columbia on August 22, 2007. On
October 1, 2008, Senator Lieberman reported the bill to the
Senate with an amendment in the nature of a substitute without
a written report. H.R. 404 was placed on the Senate Legislative
Calendar under General Orders (Calendar No. 1107).
H.R. 3774--The Senior Executive Service Diversity Assurance
Act requires the Director of the Office of Personnel Management
(OPM) to establish within OPM the Senior Executive Service
Resource Office to make recommendations to the Director with
respect to regulations, and to provide guidance to agencies,
concerning the structure, management, and diverse composition
of the Senior Executive Service (SES). H.R. 3774 was introduced
by Representative Danny Davis on October 9, 2007.
Representatives William Lacy Clay, Steve Cohen, Elijah
Cummings, Charles Gonzalez, Alcee Hastings, Ruben Hinojosa,
Henry Johnson, Jr., Dennis Kucinich, Stephen Lynch, James
Moran, Eleanor Holmes Norton, and John Sarbanes cosponsored the
bill.
H.R. 3774 was referred to the House Committee on Oversight
and Government Reform and further referred to the Subcommittee
on Federal Workforce, Post Office, and the District of Columbia
on October 11, 2007. On April 3, 2008, The Senate Committee on
Homeland Security and Governmental Affairs, Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia held hearings. The Subcommittee
forwarded the bill to the Committee on Oversight and Government
Reform by voice vote on April 15, 2008. The Full Committee held
hearings and reported the bill to the House of Representatives
with amendment by voice vote on May 1, 2008 (H. Rept. 110-672).
The bill was placed on the Union Calendar (Calendar No. 423) on
May 22, 2008 and passed the House of Representatives as amended
by voice vote on June 3, 2008. H.R. 3774 was received in the
Senate and referred to the Committee on Homeland Security and
Governmental Affairs on Jun 4, 2008. The bill was further
referred to Subcommittee on Oversight of Government Management,
the Federal Workforce, and the District of Columbia on June 19,
2008.
S. 717--Indentification Security Enhancement Act of 2007
repeals title II of the Real ID Act of 2005. S. 717 prohibits
Federal agencies from accepting state-issued driver's licenses
and personal identification cards after specified deadlines
unless such identification conforms to the minimum standards
promulgated under this Act. The bill further directs the
Secretary of Homeland Security to: (1) establish by regulation
minimum standards for acceptance of state-issued driver's
licenses and personal identification cards by Federal agencies;
(2) establish a negotiated rulemaking process before publishing
such standards; and (3) award grants to states to assist them
in conforming to such standards. Senator Akaka introduced the
bill on February 28, 2007. S. 717 was cosponsored by Senators
Alexander, Baucus, Kerry, Leahy, McCaskill, Sununu, and Tester.
On introduction, S. 717 was referred to the Committee on the
Judiciary. Committee on Homeland Security and Governmental
Affairs Subcommittee on Oversight of Government Management, the
Federal Workforce, and the District of Columbia held hearings
on the bill on S. 717.
S. 967--The Federal Supervisor Training Act of 2007 revises
provisions relating to specific training programs for Federal
agency supervisors. The bill requires the head of Federal
agencies to establish training programs with instructor-based
training to supervisors on employee development, managing
unacceptable performance, employee rights and mentoring new
supervisors. S. 967 was introduced into the Senate on March 22,
2007 by Senator Akaka and referred to the Committee on Homeland
Security and Governmental Affairs. The bill was further
referred to the Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of Columbia
on March 30, 2007. S. 967 was reported out of Committee by
Senator Lieberman with amendments on October 1, 2008 (S. Rept.
110-523). The bill was placed on the Senate Legislative
Calendar under General Orders on October 1, 2008 (Calendar No.
1100).
S. 1000--The Telework Enhancement Act of 2007 requires the
head of each executive agency to establish a policy for
eligible employees to telework, notify them of their
eligibility. S. 1000 mandates that the policy should not
diminish employee performance, requires a written agreement to
participate with terms of compliance, excludes employee's whose
official duties require daily physical presence and the use of
telework as part of the agency's continuity of operations in
the event of an emergency. The bill establishes that the agency
must have a training program regarding teleworking, make no
distinctions between teleworkers and non-teleworkers for
performance appraisals and consults with the Office of
Personnel Management (OPM) regarding guidelines and performance
metrics. S. 1000 was introduced by Senator Stevens on March 27,
2007 with Senators Coleman, Landrieu, and Voinovich as
cosponsors. The bill was referred to the Committee on Homeland
Security and Governmental Affairs at introduction and further
referred to the Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of Columbia
on June 6, 2007. S. 1000 was reported to the Senate with an
amendment in the nature of a substitute (S. Rept. 110-526) on
October 1, 2008 and was placed on the Senate Legislative
Calendar under General Orders (Calendar No. 1101).
S. 1446--The National Capital Transportation Amendments Act
of 2007 amends the National Capital Transportation Act of 1969
to authorize the Secretary of Transportation to provide
additional funding through grants to the Washington
Metropolitan Area Transit Authority (WMATA) to finance in part
the capital and preventive maintenance projects included in the
Capital Improvement Program. S. 1446 subjects such grants to
specified limitations and conditions. S. 1446 also prohibits
funding to the WMATA until it notifies the Secretary that
certain amendments to the Washington Metropolitan Area Transit
Authority Compact have taken effect, including: (1) requiring
that all local payments for the cost of operating and
maintaining the adopted regional rail system are made from
dedicated funding sources (i.e., funding which is earmarked or
required under state or local law to be used to match Federal
appropriations authorized under this Act for payments to the
WMATA); (2) establishing the Office of the Inspector General of
WMATA; and (3) expanding the WMATA Board of Directors to
include four additional Directors appointed by the
Administrator of General Services.
S. 1446 further authorizes appropriations in increments
over ten fiscal years beginning in FY 2009. Moreover, the bill
establishes within WMATA the Office of Inspector General.
Requires the Inspector General to make specified reports on
Office activities: (1) semiannually, to the WMATA Board of
Directors and General Manager who shall transmit reports to the
appropriate committees or subcommittees of Congress; and (2)
annually, to the Governors of Maryland and Virginia, the Mayor
of the District of Columbia, and Congress. Finally, S. 1446
requires the Comptroller General to study and report to
Congress on the use of funds provided under this Act. S. 1446
was introduced by Senator Cardin on May 22, 2007. Senator
Lieberman reported the bill to the Senate on October 3, 2007
without amendment (S. Rept. 110-188). S. 1446 was placed on the
Senate Legislative Calendar under General Orders on the same
day (Calendar No. 402).
S. 1924--The Federal Firefighters Fairness Act of 2008
establishes that specified diseases, including heart disease,
lung disease, tuberculosis, hepatitis, human immunodeficiency
virus, and specified cancers, of Federal employees in fire
protection activities shall be presumed to be proximately
caused by such employment; (2) the disability or death of such
an employee due to such a disease shall be presumed to result
from personal injury sustained while in the performance of
duty; and (3) such presumptions may be rebutted by a
preponderance of the evidence. S. 1924 was introduced in the
Senate by Senator Carper on August 1, 2007. Senators Bingaman,
Brown, Cantwell, Casey, Collins, Dodd, Durbin, Isakson,
Kennedy, Kerry, Landrieu, Lieberman, McCaskill, Menendez,
Murray, Sanders, Snowe, Warner and Whitehouse cosponsored the
bill. The bill was referred to the Committee on Homeland
Security and Governmental Affairs on August 1, 2007 and further
referred to the Subcommittee on Oversight of Government
Management, the Federal Workforce and the District of Columbia
on August 22, 2007. Senator Lieberman reported the bill to the
Senate with an amendment in the nature of a substitute on
October 1, 2008 (S. Rept. 110-520) and it was placed on the
Senate Legislative Calendar under General Orders (Calendar No.
1102).
S. 2148--The Senior Executive Service Diversity Assurance
Act requires the Director of the Office of Personnel Management
(OPM) to establish within OPM the Senior Executive Service
Resource Office to make recommendations to the Director with
respect to regulations, and to provide guidance to agencies,
concerning the structure, management, and diverse composition
of the Senior Executive Service (SES). S. 2148 was introduced
by Senator Akaka on October 4, 2007 and referred to the
Committee on Homeland Security and Governmental Affairs on
October 4, 2007 and further referred to the Subcommittee on
Oversight of Government Management, the Federal Workforce and
the District of Columbia on October 18, 2007. The Subcommittee
on Oversight of Government Management, the Federal Workforce
and the District of Columbia held hearings on April 3, 2008.
Senator Lieberman reported the bill out of the Full Committee
to the Senate on October 1, 2008 (S. Rept. 110-517). S. 2148
was placed on the Senate Legislative Calendar under General
Orders (Calendar No. 1108).
MEASURES WHICH DID NOT ADVANCE BEYOND REFERRAL TO SUBCOMMITTEE
H.R. 985--The Whistleblower Protection Enhancement Act of
2007 expands the types of whistleblower disclosures protected
from personnel reprisals to include disclosures without
restriction as to time, place, form, motive, context, forum, or
prior disclosures made to any person by an employee or
applicant for employment, including a disclosure made in the
ordinary course of an employee's duties, that the employee or
applicant reasonably believes is a violation of any law. H.R.
985 was introduced by Representative Henry Waxman on February
12, 2007. Representatives Gary Ackerman, Thomas Allen, Howard
Berman, Bruce Braley, William Lacy Clay, John Conyers, Jr., Jim
Cooper, Elijah Cummings, Danny Davis, Tom Davis, Keith Ellison,
Steve Israel, Paul Kanjorski, Dennis Kucinich, Zoe Lofgren,
Carolyn Maloney, Betty McCollum, John McHugh, George Miller,
Christopher Murphy, Jerrold Nadler, Eleanor Holmes Norton, Todd
Platts, Allyson Schwartz, Christopher Shays, Chris Van Hollen,
Diane Watson, Peter Welch, and John Yarmuth cosponsored the
bill. H.R. 985 was referred to the Committee on Oversight and
Government Reform and the Committee on Armed Services on
February 2, 2007. The Committee on Oversight and Government
Management held hearings and reported the bill with amendment
to the House of Representatives by the Yeas and Nays on
February 14, 2007 (H. Rept. 110-42). The Committee on Armed
Services referred H.R. 985 to the Subcommittee on Readiness on
February 14, 2007. The Committee on Armed Services discharged
the bill on March 9, 2007, at which time it was placed on the
Union Calendar (Calendar No. 18). On March 12, 2007,
Representative John Tierney received unanimous consent that the
Committee on Oversight and Government Reform could submit a
supplemental report (H. Rept. 110-42, Part II). H.R. 985 passed
the House of Representatives by the Yeas and Nays on special
rules (H. Res. 239). H.R. 985 was received in the Senate and
referred to the Committee on Homeland Security and Governmental
Affairs and further referred to Subcommittee on Oversight of
Government Management, the Federal Workforce, and the District
of Columbia on June 6, 2007.
H.R. 4106--Telework Improvements Act of 2008 requires: (1)
the head of each executive agency to establish a policy under
which employees may be authorized to telework; (2) such
policies to conform to telework regulations prescribed by the
Administrator of General Services; and (3) such policies to
ensure that all employees are authorized to telework to the
maximum extent possible and without diminishing employee
performance or agency operations. H.R. 4106 was introduced in
the House of Representatives by Danny Davis on November 7,
2007. Representatives William Lacy Clay, Elijah Cummings, Tom
Davis, Stephen Lynch, James Moran, Eleanor Holmes Norton, John
Sarbanes, Henry Waxman, and Frank Wolf cosponsored the bill.
H.R. 4106 was referred to the House Committee on Oversight and
Government Reform on November 7, 2007 and further referred to
the Subcommittee on Federal Workforce, Post Office, and the
District of Columbia on November 14, 2007. The Subcommittee
held hearings and forwarded the bill to the Full Committee with
amendment by voice vote on February 28, 2008. The Committee on
Oversight and Government Reform held hearings on March 13, 2008
and reported the bill to the House of Representatives as
amended by voice vote on March 13, 2008. H.R. 4106 was reported
by the Committee on Oversight and Government Report (H Rept.
110-663) and placed on the Union Calendar on May 21, 2008
(Calendar No 416). H.R. 4106 passed the House of
Representatives as amended by voice vote under suspension of
the rules on June 3, 2008. On June 4, 2008, H.R. 4106 was
received in the Senate and referred to the Committee on
Homeland Security and Governmental Affairs. On Jun 19, 2008,
the Committee referred H.R. 4106 to the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia.
H.R. 4108--This bill requires the Office of Personnel
Management (OPM) to provide regulations governing
determinations of ineligibility for appointment to a position
in an executive agency because of deliberate failure to
register with the selective service to provide exceptions for:
(1) the appointment of an individual who was discharged or
released from active duty in the armed forces under honorable
conditions; and (2) the appointment or continued employment of
an individual who has reached 31 years of age. Representative
George Miller introduced H.R. 4108 in the House of
Representatives on November 7, 2007. Representative Darrell
Issa cosponsored the bill. The bill was referred to the House
Committee on Oversight and Government Reform. The Committee
held hearings and reported H.R. 4108 to the House of
Representatives by voice vote on November 8, 2007 (H. Rept.
110-479). The bill was placed on the Union Calendar (Calendar
No. 295) on December 10, 2007 and agreed to with amendment
under suspension of the rules by voice vote on December 11,
2007. H.R. 4108 was received in the Senate and referred to the
Senate Committee on Homeland Security and Governmental Affairs
on December 12, 2007. On February 27, 2008, the bill was
further referred to the Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of
Columbia.
H.R. 5781--The Federal Employees Paid Parental Leave Act of
2008 allows Federal employees to substitute any available paid
leave for any leave without pay available for either the: (1)
birth of a child; or (2) placement of a child with the employee
for either adoption or foster care. Makes available for any of
the 12 weeks of leave an employee is entitled to for such
purposes: (1) four administrative weeks of paid parental leave
in connection with the birth or placement involved; and (2) any
accumulated annual or sick leave. Representative Carolyn
Maloney introduced the bill to the House of Representatives on
April 14, 2008. Representatives Howard Berman, Elijah Cummings,
Danny Davis, Tom Davis, Rosa DeLauro, Keith Ellison, Chaka
Fattah, Bob Filner, Kirsten Gillibrand, Al Green, Steny Hoyer,
Dennis Kucinich, John Lewis, Betty McCollum, George Miller,
James Moran, John Sanbanes, Janice Schakowsky, Jose Serrano,
Chris Van Hollen, and Lynn Woolsey. H.R. 5781 was referred to
the Committee on Oversight and Government Reform and the
Committee on House Administration. The Committee on Oversight
and Government Reform referred the bill to the Subcommittee on
Federal Workforce, Post Office, and the District of Columbia on
April 15, 2008, which held hearings on April 16, 2008 and
forwarded the bill back to the Full Committee. The Committee on
Oversight and Government Reform held hearings and reported the
bill to the House of Representatives by the Yeas and Nays on
April 16, 2008 (H. Rept. 110-624). House Administration
discharged H.R. 5781 on May 8, 2008 and was placed on the Union
Calendar (Calender No. 389). The Committee on Oversight and
Government Reform filed a supplemental report on June 17, 2008
(H. Rept. 110-624, Part II). H.R. 5781 passed the House by the
Yeas and Nays on June 19, 2008). On June 20, 2008, H.R. 5781
was received in the Senate and was referred to the Committee on
Homeland Security and Governmental Affairs. The bill was
further referred to the Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of
Columbia.
S. 61--Clinical Social Workers' Recognition Act of 2007
amends Federal law concerning Federal workers' compensation to
authorize the use of clinical social workers to conduct
evaluations to determine work-related emotional and mental
illnesses. S. 61 was introduced by Senator Inouye on January 4,
2007 and referred to the Committee on Homeland Security and
Governmental Affairs. On March 30, 2007, the bill was further
referred to the Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of
Columbia.
S. 80--Executive Branch Family Leave Act entitles a Federal
employee of the executive branch to paid leave of: (1) eight
weeks for giving birth; (2) at least five days for a father for
the birth of a child; (3) at least five days for adopting a
child; and (4) eight hours during any 12-month period to
accompany a child to medical or school appointments. Senator
Stevens introduced the bill on January 4, 2007 with Senators
Collins, Hutchinson, Inouye, and Murkowski as cosponsors. The
bill was referred to the Committee on Homeland Security and
Governmental Affairs at introduction and further referred to
the Subcommittee on Oversight of Government Management, the
Federal Workforce, and the District of Columbia on March 30,
2007.
S. 920--Rhode Island Federal Worker Fairness Act of 2007
states that the wage schedules and rates applicable to
prevailing rate employees in the Narragansett Bay, Rhode
Island, wage area shall be the same as the wage schedules and
rates applicable to prevailing rate employees in the Boston,
Massachusetts, wage area. Senator Reed, with Senator Whitehouse
as a cosponsor, introduced S. 920 on March 20, 2007. On the day
of introduction, S. 920 was referred to the Committee on
Homeland Security and Government Affairs. On March 30, 2007,
the Committee referred the bill to the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia.
S. 960--Public Service Academy Act of 2007 establishes in
the Department of Homeland Security (DHS) a U.S. Public Service
Academy for the instruction in and preparation for public
service of selected individuals. Sets forth provisions relating
to: (1) key personnel positions and faculty and departments;
(2) student qualifications and requirements for admission; (3)
procedures for the appointment of students to the Academy by
Members of Congress and the President; (4) curriculum
standards; and (5) study abroad requirements. S. 960 requires
each Academy student to sign an agreement with respect to
length of public service. Imposes tuition and cost repayment
requirements for Academy students who fail to graduate or
accept or complete assigned public service. The bill also
establishes a Board of Visitors to inquire into the efficiency
and effectiveness of the operations of the Academy. The bill
further requires the tuition of each Academy student to be
fully subsidized. Finally, S. 960 provides for public (80
percent) and private funding for the Academy. The bill was
introduced on March 22, 2007 by Senator Clinton. Senators
Baucus, Bayh, Biden, Boxer, Brown, Cantwell, Cardin, Casey,
Coleman, Hutchinson, Inouye, Kennedy, Landrieu, Lautenberg,
Levin, Lincoln, Menendez, Mikulski, Murray, Pryor, Rockefeller,
Specter and Stabenow cosponsored the bill. The bill was
referred to the Committee on Homeland Security and Governmental
Affairs and, on March 30, 2007, referred to the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia.
S. 1045--Federal Workforce Performance Appraisal and
Management Improvement Act of 2007 revises provisions relating
to the establishment of performance appraisal systems by
certain Federal agencies. The bill requires agencies to
establish one or more new performance appraisal systems to
promote high performance. S. 1045 also revises provisions
relating to the responsibilities of the Office of Personnel
Management (OPM) for the development of performance appraisal
systems. S. 1045 further revises provisions relating to
specific mandatory training programs for supervisors. Finally,
S. 1045 revises provisions relating to Federal employee pay
rates and systems with respect to employees, whose performance
rating is below the fully successful level to, among other
things, prohibit a pay increase for such employees. The bill
was introduced by Senator Voinovich on March 29, 2007 and
referred to the Committee on Homeland Security and Governmental
Affairs. The bill was further referred to the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia on June 6, 2007.
S. 1221--Countdown to Coverage Act of 2007 provides that if
legislation ensuring accessible, affordable, and meaningful
health insurance for all Americans is not enacted before the
adjournment sine die of the 111th Congress: (1) Federal
contributions under the Federal Employees Health Benefits
(FEHB) Program for Members of Congress shall be prohibited; and
(2) Members shall pay 100 percent of all premiums for such
Programs. The bill also requires the Institute of Medicine to
notify the Office of Personnel Management (OPM), the Secretary
of the Senate, and the Chief Administrative Officer (CAO) of
the House of Representatives: (1) that such legislation has not
been enacted, if it has not been; and (2) the dates and
adjustments required to take effect under this Act. S. 1221
further requires, upon receipt of such notice, OPM, the
Secretary, and the CAO to make such adjustments. The bill was
introduced on April 25, 2007 by Senator Kerry and referred to
the Committee on Homeland Security and Governmental Affairs. S.
1221 was further referred to the Subcommittee on Oversight of
Government Management, the Federal Workforce, and the District
of Columbia on June 6, 2007.
S. 1345--Clarification of Federal Employment Protections
Act repudiates, in order to dispel any public confusion, any
assertion that Federal employees are not protected from
discrimination on the basis of sexual orientation. S. 1345
prohibits any Federal employee who has authority to take,
direct others to take, recommend, or approve any personnel
action, from discriminating for or against any Federal employee
or applicant for Federal employment on the basis of sexual
orientation. The bill further affirms that, in the absence of
such prohibition, discrimination against Federal employees and
applicants for Federal employment on the basis of sexual
orientation is already prohibited under current law. Senator
Akaka introduced the bill on May 9, 2007 with Senators Brown,
Clinton, Collins, Feingold, Leahy, Levin, and Lieberman as
cosponsors. On introduction S. 1345 was referred to the
Committee on Homeland Security and Governmental Affairs. Then,
further referred to the Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of Columbia
on June 6, 2007.
S. 1354--Law Enforcement Officers Retirement Equity Act
redefines the term ``law enforcement officer'' under provisions
of the Federal Employees Retirement System (FERS) and the Civil
Service Retirement System (CSRS) to include: (1) Federal
employees not otherwise covered by such term whose duties
include the investigation or apprehension of suspected or
convicted individuals and who are authorized to carry a
firearm; and (2) such employees of the Internal Revenue Service
(IRS) whose duties are primarily the collection of delinquent
taxes and the securing of delinquent returns. S. 1354 also
requires that such service which is performed by an incumbent
law enforcement officer be treated: (1) on or after the
enactment date of this Act, for all purposes, as service
performed as a law enforcement officer, irrespective of how
such service is treated under the following; and (2) before,
on, or after such date, for purposes of CSRS and FERS, as
service performed as such an officer, but only if an
appropriate written election is submitted to the Office of
Personnel Management (OPM) five years after such date or before
separation from government service, whichever is earlier.
Senator Mikulski introduced S. 1354 on May 10, 2007 with
Senators Boxer, Cardin, Clinton, Feinstein, Leahy, Sanders, and
Schumer as cosponsors. S. 1354 was referred to the Committee on
Homeland Security and Governmental Affairs on introduction and
then referred to the Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of Columbia
on June 6. 2007.
S. 1357--A bill to amend the Law Enforcement Pay Equity Act
of 2000 to permit certain annuitants of the retirement programs
of the United States Park Police and United States Secret
Service Uniformed Division to receive the adjustments in
pension benefits to which such annuitants would otherwise be
entitled as a result of the conversion of members of the United
States Park Police and United Sates Secret Service Uniformed
Division to a new salary schedule under the amendments made by
such Act. (Thus permits cost-of-living adjustments in pension
benefits for annuitants of the U.S. Park Police and the U.S.
Secret Service Uniformed Division for payments made in 2007 and
in subsequent years.) Senator Mikulski introduced the bill on
May 10, 2007 with Senators Warner and Webb as cosponsored. On
May 10, 2007, the bill was referred to the Committee on
Homeland Security and Governmental Affairs. S. 1357 was further
referred to the Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of Columbia
on June 6, 2007.
S. 1456--The Federal Employees Electronic Personal Health
Records Act of 2007 amends Federal civil service law to require
each contract between the Office of Personnel Management (OPM)
and a qualified carrier offering a health benefit plan for
Federal employees to provide for establishment and maintenance
of electronic personal health records for each individual and
family member enrolled in the plan. S. 1456 further requires
such records to be: (1) in a standard electronic format,
available for electronic access through the Internet; and (2)
based on the Federal messaging and health vocabulary standards
endorsed by the Office of the National Coordinator for Health
Information Technology, the American Health Information
Community, or the Secretary of Health and Human Services. The
bill was introduced on May 23, 2007 by Senator Carper and
cosponsored by Senator Voinovich. On introduction, S. 1456 was
referred to the Committee on Homeland Security and Governmental
Affairs. S. 1456 was further referred to the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia on June 6, 2007.
S. 1490--Federal Employees Electronic Personal Health
Records Act of 2007 amends Federal civil service law to require
each contract between the Office of Personnel Management (OPM)
and a qualified carrier offering a health benefit plan for
Federal employees to provide for establishment and maintenance
of electronic personal health records for each individual and
family member enrolled in the plan. S. 1490 further requires
such records to be: (1) in a standard electronic format,
available for electronic access through the Internet; and (2)
based on the Federal messaging and health vocabulary standards
endorsed by the Office of the National Coordinator for Health
Information Technology, the American Health Information
Community, or the Secretary of Health and Human Services. The
bill was introduced on May 24, 2007 by Senator Carper and
cosponsored by Senator Voinovich. On introduction, S. 1456 was
referred to the Committee on Homeland Security and Governmental
Affairs. S. 1456 was further referred to the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia on June 6, 2007.
S. 1649--Military Family Support Act of 2007 directs the
Office of Personnel Management (OPM) to establish a program to
authorize a caregiver (a Federal employee at least 21 years of
age capable of providing care to a child or other dependent
family member of a member of the Armed Forces) to use: (1) any
available sick leave for the provision of such care in the same
manner as annual leave is used; and (2) any Federal leave
available to that caregiver as though that period of caregiving
is a medical emergency. Requires the service member for whom
the caregiving is provided to be performing service in support
of a contingency operation or in situations for which hostile
fire or imminent danger pay is authorized and to designate the
caregiver for his or her family. On June 19, 2007, Senator
Feingold introduced S. 1649 with Senators Casey, Coleman,
Kennedy, and Mikulski as cosponsors. On introduction, S. 1649
was referred to the Committee on Homeland Security and
Governmental Affairs. S. 1649 was further referred to the
Subcommittee on Oversight of Government Management, the Federal
Workforce, and the District of Columbia on July 13, 2007.
S. 1795--The Improving Access to Workers' Compensation for
Injured Federal Workers Act amends the Federal Employees'
Compensation Act to include nurse practitioners and physician
assistants as eligible providers of medical, surgical, and
hospital services and supplies under such Act. Senator Kennedy
introduced the S. 1795 on July 17, 2007. The bill was
cosponsored by Senators Collins, Craig, Harkin, Isakson,
Murkowski, Sanders, Sununu, Tester, and Whitehouse. On
introduction, S. 1795 was referred to the Committee on Homeland
Security and Governmental Affairs. S. 1795 was further referred
to the Subcommittee on Oversight of Government Management, the
Federal Workforce, and the District of Columbia on August 22,
2007.
S. 2003--A bill to facilitate the part-time reemployment of
annuitants, and for other purposes. S. 2003 allows a Federal
agency head to waive the application of civil service
retirement system and Federal employee retirement system
provisions restricting annuities and pay upon reemployment with
respect to an annuitant employed as a limited time appointee,
but prohibits waiving such provisions with respect to an
annuitant for more than: (1) 520 hours of service performed
during the six months following the individual's annuity
commencing date; (2) 1040 hours of service performed during any
12-month period; or (3) 6240 hours of service performed during
the individual's lifetime. Senator Collins introduced S. 2003
on August 2, 2007. Senators Voinovich and Warner cosponsored
the bill. On introduction, S. 2003 was referred to the
Committee on Homeland Security and Governmental Affairs. S.
2003 was further referred to the Subcommittee on Oversight of
Government Management, the Federal Workforce, and the District
of Columbia on August 22, 2007.
S. 2197--The Federal Labor-Management Partnership Act of
2007 establishes the Federal Labor-Management Partnership
Council to advise the President on matters involving labor-
management relations in the executive branch. Includes among
the Council's activities: (1) supporting the creation of local
labor-management partnership councils that promote partnership
efforts; (2) collecting and disseminating information about and
providing guidance on such efforts; (3) using the expertise of
individuals, inside and outside the Federal Government, to
foster partnership arrangements in the executive branch; and
(4) proposing statutory changes to improve the civil service to
better serve the public and carry out the mission of the
various agencies. Senator Akaka introduced S. 2197 on October
18, 2007 with Senators Carper and Clinton as cosponsors. On
introduction, S. 2197 was referred to the Committee on Homeland
Security and Governmental Affairs. S. 2197 was further referred
to the Subcommittee on Oversight of Government Management, the
Federal Workforce, and the District of Columbia on December 12,
2007.
S. 2446--The Citizenship Processing Backlog Reduction Act
of 2007 authorizes the Secretary of Homeland Security to waive
the application of provisions relating to annuities and pay on
reemployment or any similar legal provision under a government
retirement system on a case-by-case basis for an annuitant
reemployed on a temporary basis if: (1) such waiver is
necessary due to an emergency involving a direct threat to life
or property or other unusual circumstances; or (2) the
annuitant is employed in a position that provides assistance to
the Secretary with a substantial backlog of naturalization
petitions or assistance for processing petitions filed from
January 31-July 30, 2007. S. 2446 further provides that an
annuitant as to whom such a waiver is in effect shall not be
considered an employee for purposes of any government
retirement system. Senator Schumer introduced S. 2446 on
December 11, 2007 with Senator Hagel as cosponsor. On
introduction, S. 2446 was referred to the Committee on Homeland
Security and Governmental Affairs. S. 2446 was further referred
to the Subcommittee on Oversight of Government Management, the
Federal Workforce, and the District of Columbia on February 27,
2008.
S. 3140--The Federal Employees Paid Parental Leave Act of
2008 allows Federal employees to substitute any available paid
leave for any leave without pay available for either the: (1)
birth of a child; or (2) placement of a child with the employee
for either adoption or foster care. The bill also makes
available for any of the 12 weeks of leave an employee is
entitled to for such purposes: (1) four administrative weeks of
paid parental leave in connection with the birth or placement
involved; and (2) any accumulated annual or sick leave. S. 3140
further authorizes the Director of the Office of Personnel
Management (OPM) to increase the amount of paid parental leave
available to up to eight administrative workweeks, based on the
consideration of: (1) the benefits provided to the Federal
Government of offering increased paid parental leave, including
enhanced recruitment and retention of employees; (2) the cost
to the Federal Government of increasing the amount of paid
parental leave that is available to employees; (3) trends in
the private sector and in state and local governments with
respect to offering paid parental leave; and (4) the Federal
Government's role as a model employer. S. 3140 amends the
Congressional Accountability Act of 1995 to allow the same
substitution for covered congressional employees. The bill also
amends the Family and Medical Leave Act of 1993 to allow the
same substitution for Government Accountability Office (GAO)
and Library of Congress employees. Senator Webb introduced S.
3140 on June 16, 2008. Senators Cardin, Casey, Clinton, Durbin,
Inouye, Kerry, Lautenberg, Lieberman, McCaskill, Menendez,
Mikulski, Obama, Sanders, Schumer, Stabenow, Tester, and Warner
cosponsored the bill. On introduction, S. 3160 was referred to
the Committee on Homeland Security and Governmental Affairs. S.
3140 was further referred to the Subcommittee on Oversight of
Government Management, the Federal Workforce, and the District
of Columbia on July 21, 2008.
S. 3163--The Military Family Support Act directs the Office
of Personnel Management (OPM) to establish a program to
authorize a caregiver (a Federal employee at least 18 years of
age capable of providing care to a child or other dependent
family member of a member of the Armed Forces) to use: (1) any
available sick leave for the provision of such care in the same
manner as annual leave is used; and (2) any Federal leave
available to that caregiver as though that period of caregiving
is a medical emergency. S. 3163 further requires the program
to: (1) provide a process for reasonable notice of the need for
leave; and (2) protect employees from discrimination or
retaliation for the use of leave under this Act and provide the
opportunity to appeal a denial of its use. The bill also
requires the service member for whom the caregiving is provided
to be performing service in support of a contingency operation
or in situations for which hostile fire or imminent danger pay
is authorized and to designate the caregiver for his or her
family. Senator Feingold introduced the bill on June 19, 2008
with Senator Casey as a cosponsor. On introduction, S. 3163 was
referred to the Committee on Homeland Security and Governmental
Affairs. S. 3163 was further referred to the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia on July 21, 2008.
III. GAO Reports
The following reports were issued by the Government
Accountability Office at the request of the Chairman/Ranking
Member of the Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of Columbia
during the 110th Congress:
Human Capital: Diversity in the Federal SES and Processes
for Selecting New Executives, GAO-09-110 (11/26/2008)
Results Oriented Management: Opportunities Exist for
Refining the Oversight and Implementation of the Senior
Executive Performance-Based Pay System, GAO-09-82 (11/21/2008)
Department of Homeland Security: A Strategic Approach Is
Needed to Better Ensure the Acquisition Workforce Can Meet
Mission Needs, GAO-09-30 (11/19/2008)
Confirmation of Political Appointees: Eliciting Nominees'
Views on Management Challenges within Agencies and across
Government, GAO-09-194 (11/17/2008)
Health Information Technology: HHS Has Taken Important
Steps to Address Privacy Principles and Challenges, Although
More Work Remains, GAO-08-1138 (09/17/2008)
Information Sharing Environment: Definition of the Results
to Be Achieved in Improving Terrorism-Related Information
Sharing Is Needed to Guide Implementation and Assess Progress,
GAO-08-492 (06/25/2008)
Influenza Pandemic: Federal Agencies Should Continue to
Assist States to Address Gaps in Pandemic Planning, GAO-08-539
(06/19/2008)
Homeland Security: The Federal Protective Service Faces
Several Challenges That Hamper Its Ability to Protect Federal
Facilities, GAO-08-683 (06/11/2008)
Privacy: Agencies Should Ensure That Designated Senior
Officials Have Oversight of Key Functions, GAO-08-603 (05/30/
2008)
International Food Security: Insufficient Efforts by Host
Governments and Donors Threaten Progress to Halve Hunger in
Sub-Saharan Africa by 2015, GAO-08-680 (05/29/2008)
Centers for Disease Control and Prevention: Human Capital
Planning Has Improved, but Strategic View of Contractor
Workforce Is Needed, GAO-08-582 (05/28/2008)
Federal Disability Programs: More Strategic Coordination
Could Help Overcome Challenges to Needed Transformation, GAO-
08-635 (05/20/2008)
Human Capital: Corps of Engineers Needs to Update Its
Workforce Planning Process to More Effectively Address Its
Current and Future Workforce Needs, GAO-08-596 (05/07/2008)
Department of Homeland Security: Better Planning and
Assessment Needed to Improve Outcomes for Complex Service
Acquisitions, GAO-08-263 (04/22/2008)
Intellectual Property: Federal Enforcement Has Generally
Increased, but Assessing Performance Could Strengthen Law
Enforcement Efforts, GAO-08-157 (03/11/2008)
Federal Workers' Compensation: Better Data and Management
Strategies Would Strengthen Efforts to Prevent and Address
Improper Payments, GAO-08-284 (02/26/2008)
Supplemental Appropriations: Opportunities Exist to
Increase Transparency and Provide Additional Controls, GAO-08-
314 (01/31/2008)
Influenza Pandemic: Efforts Under Way to Address
Constraints on Using Antivirals and Vaccines to Forestall a
Pandemic, GAO-08-92 (12/21/2007)
Border Security: Despite Progress, Weaknesses in Traveler
Inspections Exist at Our Nation's Ports of Entry, GAO-08-219
(11/05/2007)
Organizational Transformation: Implementing Chief Operating
Officer/Chief Management Officer Positions in Federal Agencies,
GAO-08-34 (11/01/2007)
Office of Personnel Management: Opportunities Exist to
Build on Recent Progress in Internal Human Capital Capacity,
GAO-08-11 (10/31/2007)
Homeland Security: Federal Efforts Are Helping to Alleviate
Some Challenges Encountered by State and Local Information
Fusion Centers, GAO-08-35 (10/30/2007)
Global Health: U.S. Agencies Support Programs to Build
Overseas Capacity for Infectious Disease Surveillance, GAO-07-
1186 (09/28/2007)
Department of Homeland Security: Improved Assessment and
Oversight Needed to Manage Risk of Contracting for Selected
Services, GAO-07-990 (09/17/2007)
Defense Business Transformation: Achieving Success Requires
a Chief Management Officer to Provide Focus and Sustained
Leadership, GAO-07-1072 (09/05/2007)
NASA: Progress Made on Strategic Human Capital Management,
but Future Program Challenges Remain, GAO-07-1004 (08/08/2007)
Defense Contract Management: DOD's Lack of Adherence to Key
Contracting Principles on Iraq Oil Contract Put Government
Interests at Risk, GAO-07-839 (07/31/2007)
Military Personnel: Improved Quality Controls Needed over
Servicemembers' Employment Rights Claims at DOL, GAO-07-907
(07/20/2007)
Human Capital: DOD Needs Better Internal Controls and
Visibility over Costs for Implementing Its National Security
Personnel System, GAO-07-851 (07/16/2007)
Defense Logistics: Efforts to Improve Distribution and
Supply Support for Joint Military Operations Could Benefit from
a Coordinated Management Approach, GAO-07-807 (06/29/2007)
Influenza Pandemic: Efforts to Forestall Onset Are Under
Way; Identifying Countries at Greatest Risk Entails Challenges,
GAO-07-604 (06/20/2007)
Avian Influenza: USDA Has Taken Important Steps to Prepare
for Outbreaks, but Better Planning Could Improve Response, GAO-
07-652 (06/11/2007)
The Federal Workforce: Additional Steps Needed to Take
Advantage of Federal Executive Boards' Ability to Contribute to
Emergency Operations, GAO-07-515 (05/04/2007)
Intellectual Property: Better Data Analysis and Integration
Could Help U.S. Customs and Border Protection Improve Border
Enforcement Efforts, GAO-07-735 (04/26/2007)
Nuclear Nonproliferation: DOE's International Radiological
Threat Reduction Program Needs to Focus Future Efforts on
Securing the Highest Priority Radiological Sources, GAO-07-282
(01/31/2007)
Office of Personnel Management: Key Lessons Learned to Date
for Strengthening Capacity to Lead and Implement Human Capital
Reforms, GAO-07-90 (01/19/2007)
DOD's High-Risk Areas: Progress Made Implementing Supply
Chain Management Recommendations, but Full Extent of
Improvement Unknown, GAO-07-234 (01/17/2007)
Human Capital: Retirements and Anticipated New Reactor
Applications Will Challenge NRC's Workforce, GAO-07-105 (01/17/
2007)
Health Information Technology: Early Efforts Initiated but
Comprehensive Privacy Approach Needed for National Strategy,
GAO-07-238 (01/10/2007)
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
Chairman: Carl Levin
Ranking Minority Member: Tom Coburn
The following is the Activities Report of the Permanent
Subcommittee on Investigations during the 110th Congress:
I. Historical Background
A. Subcommittee Jurisdiction
The Permanent Subcommittee on Investigations was originally
authorized by Senate Resolution 189 on January 28, 1948. At its
creation in 1948, the Subcommittee was part of the Committee on
Expenditures in the Executive Departments. The Subcommittee's
records and broad investigative jurisdiction over government
operations and national security issues, however, actually
antedate its creation, since it was given custody of the
jurisdiction of the former Special Committee to Investigate the
National Defense Program (the so-called ``War Investigating
Committee'' or ``Truman Committee''), chaired by Senator Harry
S Truman during the Second World War. Today, the Subcommittee
is part of the Committee on Homeland Security and Governmental
Affairs.\1\
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\1\In 1952, the parent committee's name was changed to the
Committee on Government Operations. It was changed again in early 1977,
to the Committee on Governmental Affairs, and again in 2005, to the
Committee on Homeland Security and Governmental Affairs, its present
title.
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The Subcommittee has had 10 Chairmen: Senators Homer
Ferguson of Michigan (1948), Clyde R. Hoey of North Carolina
(1949-1952), Joseph R. McCarthy of Wisconsin (1953-1954), John
L. McClellan of Arkansas (1955-1972), Henry M. Jackson of
Washington (1973-1978), Sam Nunn of Georgia (1979-1980 and
1987-1994), William V. Roth of Delaware (1981-1986 and 1995-
1996), Susan M. Collins of Maine (1997-2001); Carl Levin of
Michigan (2001-2002); and Norm Coleman of Minnesota (2003-
present).
Until 1957, the Subcommittee's jurisdiction focused
principally on waste, inefficiency, impropriety, and illegality
in government operations. Its jurisdiction has expanded
considerably since then, however, today encompassing
investigations within the broad ambit of the parent committee's
responsibility for matters relating to the efficiency and
economy of operations of all branches of the government,
including matters related to: (a) waste, fraud, abuse,
malfeasance, and unethical practices in government contracting
and operations; (b) criminality or improper practices in labor-
management relations; (c) organized criminal activities
affecting interstate or international commerce; (d) criminal
activity affecting the national health, welfare, or safety,
including investment fraud, commodity and securities fraud,
computer fraud, and use of offshore banking and corporate
facilities to carry out criminal objectives; (e) the
effectiveness of present national security methods, staffing
and procedures, and U.S. relationships with international
organizations concerned with national security; (f) energy
shortages, energy pricing, management of government-owned or
controlled energy supplies; and relationships with oil
producing and consuming countries; and (g) the operations and
management of Federal regulatory policies and programs. While
technically reduced to a subcommittee of a standing committee,
the Subcommittee has long exercised its authority on an
independent basis, selecting its own staff, issuing its own
subpoenas, and determining its own investigatory agenda.
The Subcommittee acquired its sweeping jurisdiction in
several successive stages. In 1957--based on information
developed by the Subcommittee--the Senate passed a Resolution
establishing a Select Committee on Improper Activities in the
Labor or Management Field. Chaired by Senator McClellan, who
also chaired the Subcommittee at that time, the Select
Committee was composed of eight Senators--four of whom were
drawn from the Subcommittee on Investigations and four from the
Committee on Labor and Public Welfare. The Select Committee
operated for 3 years, sharing office space, personnel, and
other facilities with the Permanent Subcommittee. Upon its
expiration in early 1960, the Select Committee's jurisdiction
and files were transferred to the Subcommittee on
Investigations, greatly enlarging the latter body's
investigative authority in the labor-management area.
The Subcommittee's jurisdiction expanded further during the
1960s and 1970s. In 1961, for example, it received authority to
make inquiries into matters pertaining to organized crime and,
in 1963, held the famous Valachi hearings described below,
examining the inner workings of the Italian Mafia. In 1967,
following a summer of riots and other civil disturbances, the
Senate approved a Resolution directing the Subcommittee to
investigate the causes of this disorder and to recommend
corrective action. In January 1973, the Subcommittee acquired
its national security mandate when it merged with the National
Security Subcommittee. With this merger, the Subcommittee's
jurisdiction was broadened to include inquiries concerning the
adequacy of national security staffing and procedures,
relations with international organizations, technology transfer
issues, and related matters. In 1974, in reaction to the
gasoline shortages precipitated by the Arab-Israeli war of
October 1973, the Subcommittee acquired jurisdiction to
investigate government operations involving the control and
management of energy resources and supplies.
In 1997, the full Committee on Governmental Affairs was
charged by the Senate to conduct a special examination into
illegal or improper activities in connection with Federal
election campaigns during the 1996 election cycle. The
Permanent Subcommittee provided substantial resources and
assistance to this investigation, contributing to a greater
public understanding of what happened, to subsequent criminal
and civil legal actions taken against wrongdoers, and to
enactment of campaign finance reforms in 2001.
B. Past Investigations
Armed with its broad jurisdictional mandate, the
Subcommittee has in recent years conducted investigations into
a wide variety of topics of public concern, ranging from
corporate misconduct, including the Senate's most in-depth
investigation of the collapse of the Enron Corporation, to
unfair energy prices, predatory lending, and tax evasion. The
Subcommittee has also conducted investigations into numerous
aspects of criminal wrongdoing, including money laundering, the
narcotics trade, child pornography, labor racketeering, and
organized crime activities. In addition, the Subcommittee has
investigated a wide range of allegations of waste, fraud, and
abuse in government programs and consumer protection issues,
addressing problems ranging from food safety to Medicare fraud
to mortgage ``flipping.''
Most recently, under the leadership of Senator Coleman, the
Subcommittee has focused on exposing corruption problems in the
United Nations' Oil-for-Food Program, port and supply-chain
security, credit counseling abuses, and Federal contractors
with billions of dollars in unpaid taxes. At Senator Levin's
request, the Subcommittee has also examined offshore tax
abuses, the role of tax professionals in promoting abusive tax
shelters, transparency and pricing problems in U.S. crude oil
markets, abusive credit card practices, and the failure of U.S.
bank regulators to crack down on possible money laundering
practices at financial institutions like Riggs Bank.
In 1998, the Subcommittee marked the 50th anniversary of
the Truman Committee's conversion into a permanent subcommittee
of the U.S. Senate.\2\ In the half-century of its existence,
the Subcommittee's many successes have made clear to the Senate
the importance of retaining a standing investigatory body
devoted to keeping government not only efficient and effective,
but also honest and accountable.
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\2\This anniversary also marked the first date upon which internal
Subcommittee records generally began to become available to the public.
Unlike most standing committees of the Senate whose previously
unpublished records open after a period of 20 years has elapsed, the
Permanent Subcommittee on Investigations, as an investigatory body, may
close its records for 50 years to protect personal privacy and the
integrity of the investigatory process. With this 50th anniversary, the
Subcommittee's earliest records, housed in the Center for Legislative
Archives at the National Archives and Records Administration, began to
open seriatim. The records of the predecessor committee--the Truman
Committee--were opened by Senator Nunn in 1980.
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(1) Historical Highlights
The Subcommittee's investigatory record as a permanent
Senate body began under the Chairmanship of Republican Senator
Homer Ferguson and his Chief Counsel (and future Attorney
General and Secretary of State) William P. Rogers, as the
Subcommittee inherited the Truman Committee's role in
investigating fraud, waste and abuse in U.S. Government
operations. This investigative work became particularly
colorful under the chairmanship of Senator Clyde Hoey, a North
Carolina Democrat who took the chair from Senator Ferguson
after the 1948 elections. The last U.S. Senator to wear a long
frock coat and wing-tipped collar, Mr. Hoey was a distinguished
southern gentleman of the old school. Under his leadership, the
Subcommittee won national attention for its investigation of
the so-called ``five percenters,'' notorious Washington
lobbyists who charged their clients 5 percent of the profits
from any Federal contracts they obtained on the client's
behalf. Given the Subcommittee's jurisdictional inheritance
from the Truman Committee, it is perhaps ironic that the ``five
percenters'' investigation raised allegations of bribery and
influence-peddling that reached right into the White House and
implicated members of President Harry Truman's staff. In any
event, the fledgling Subcommittee was off to a rapid start.
What began colorful soon became contentious. When
Republicans returned to the Majority in the Senate in 1953,
Wisconsin's junior Senator, Joseph R. McCarthy, became the
Subcommittee's Chairman. Two years earlier, as Ranking Minority
Member, Senator McCarthy had arranged for another Republican
Senator, Margaret Chase Smith of Maine, to be removed from the
Subcommittee. Senator Smith's offense, in Senator McCarthy's
eyes, was her issuance of a ``Declaration of Conscience''
repudiating those who made unfounded charges and used character
assassination against their political opponents. Although
Senator Smith had carefully declined to name any specific
offender, her remarks were universally recognized as criticism
of Senator McCarthy's accusations that communists had
infiltrated the State Department and other government agencies.
Senator McCarthy retaliated by engineering Senator Smith's
removal from the Subcommittee, replacing her with the newly-
elected Senator from California, Richard M. Nixon.
Upon becoming Subcommittee Chairman, Senator McCarthy
staged a series of highly publicized anti-communist
investigations, culminating in an inquiry into communism within
the U.S. Army, which became known as the Army-McCarthy
hearings. During the latter portion of these hearings, in which
the parent Committee examined the Wisconsin Senator's attacks
on the Army, Senator McCarthy recused himself, leaving South
Dakota Senator Karl Mundt to serve as Acting Chairman of the
Subcommittee. Gavel-to-gavel television coverage of the
hearings helped turn the tide against Senator McCarthy by
raising public concern about his treatment of witnesses and
cavalier use of evidence. In December 1954, in fact, the Senate
censured Senator McCarthy for unbecoming conduct; in the
following year, the Subcommittee adopted new rules of procedure
that better protected the rights of witnesses. The Subcommittee
also strengthened the rules ensuring the right of both parties
on the Subcommittee to appoint staff, initiate and approve
investigations, and review all information in the
Subcommittee's possession.
In 1955, Senator John McClellan of Arkansas began 18 years
of service as Chairman of the Permanent Subcommittee on
Investigations. Senator McClellan appointed the young Robert F.
Kennedy as the Subcommittee's Chief Counsel. That same year,
Members of the Subcommittee were joined by Members of the
Senate Labor and Public Welfare Committee on a special
committee to investigate labor racketeering. Chaired by Senator
McClellan and staffed by Robert Kennedy and other Subcommittee
staff members, this special committee directed much of its
attention to criminal influence over the Teamsters Union, most
famously calling Teamsters' leaders Dave Beck and Jimmy Hoffa
to testify. The televised hearings of the special committee
also introduced Senators Barry Goldwater and John F. Kennedy to
the Nation, as well as leading to passage of the Landrum-
Griffin Labor Act.
After the special committee completed its work, the
Permanent Subcommittee on Investigations continued to
investigate organized crime. In 1962, the Subcommittee held
hearings during which Joseph Valachi outlined the activities of
La Cosa Nostra, or the Mafia. Former Subcommittee staffer
Robert Kennedy--who had by now become Attorney General in his
brother's Administration--used this information to prosecute
prominent mob leaders and their accomplices. The Subcommittee's
investigations also led to passage of major legislation against
organized crime, most notably the Racketeer Influenced and
Corrupt Organizations (RICO) provision of the Crime Control Act
of 1970. Under Chairman McClellan, the Subcommittee also
investigated fraud in the purchase of military uniforms,
corruption in the Department of Agriculture's grain storage
program, securities fraud, and civil disorders and acts of
terrorism. From 1962 to 1970, the Permanent Subcommittee on
Investigations conducted an extensive probe of political
interference in the awarding of government contracts for the
Pentagon's ill-fated TFX (``tactical fighter, experimental'').
In 1968, the Subcommittee also examined charges of corruption
in U.S. servicemen's clubs in Vietnam and elsewhere around the
world.
In 1973, Senator Henry ``Scoop'' Jackson, a Democrat from
Washington State, replaced Senator McClellan as the
Subcommittee's Chairman. During these years, recalled Chief
Clerk Ruth Young Watt--who served in that position from the
Subcommittee's founding until her retirement in 1979--Ranking
Minority Member Charles Percy, an Illinois Republican, was more
active on the Committee than Chairman Jackson, who was often
distracted by his Chairmanship of the Interior Committee and
his active role on the Armed Services Committee.3
Senator Percy worked closely in this regard with Georgia
Democrat Sam Nunn, who subsequently succeeded Senator Jackson
as Chairman in 1979. As Chairman, Senator Nunn continued the
Subcommittee's investigations into the role of organized crime
in labor-management relations and also investigated pension
frauds.
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\3\It had not been uncommon in the Subcommittee's history for the
Chairman and Ranking Minority Member to work together closely despite
their partisan differences, but Senator Percy was unusually active in
the Minority--a role that included chairing one investigation of the
hearing aid industry.
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The regular reversals of political fortunes in the Senate
of the 1980s and 1990s saw Senator Nunn trade chairmanship
three times with Delaware Republican William Roth. Senator Nunn
served from 1979 to 1980 and again from 1987 to 1995, while
Senator Roth served from 1981 to 1986, and again from 1995 to
1996. These 15 years saw a strengthening of the Subcommittee's
bipartisan tradition in which investigations were initiated by
either the Majority or Minority and fully supported by the
entire Subcommittee. For his part, Senator Roth led a wide
range of investigations into commodity investment fraud,
offshore banking schemes, money laundering, and child
pornography. Senator Nunn led inquiries into Federal drug
policy, the global spread of chemical and biological weapons,
abuses in Federal student aid programs, computer security,
airline safety, and health care fraud. Senator Nunn also
appointed the Subcommittee's first female counsel, Eleanore
Hill, who served as Chief Counsel to the Minority from 1982 to
1986 and then as Chief Counsel from 1987 to 1995. Ms. Hill
subsequently served as Inspector General at the Department of
Defense.
(2) Recent Investigations
In January 1997, Republican Senator Susan Collins of Maine,
became the first woman to Chair the Permanent Subcommittee on
Investigations. Senator John Glenn of Ohio became the Ranking
Minority Member. After Senator Glenn's retirement, Michigan
Democrat Carl Levin succeeded him in January 1999, as the
Ranking Minority Member. During Senator Collins' chairmanship,
the Subcommittee conducted a number of investigations affecting
Americans in their day-to-day lives, including investigations
into mortgage fraud, phony credentials obtained through the
Internet, deceptive mailings and sweepstakes promotions, day
trading of securities, and securities fraud on the Internet.
Senator Levin, while Ranking Minority Member, initiated an
investigation into money laundering. At his request, the
Subcommittee held hearings in 1999 on money laundering issues
affecting private banking services provided to wealthy
individuals, and in 2001 on how major U.S. banks providing
correspondent accounts to offshore banks were being used to
advance money laundering and other criminal schemes. Senator
Collins chaired the Subcommittee until June 2001, when the
Senate Majority party changed hands, and Senator Levin assumed
the chairmanship. Senator Collins, in turn, became the Ranking
Minority Member.
During the 107th Congress, both Senator Collins and Senator
Levin chaired the Subcommittee. In her 6 months chairing the
Subcommittee at the start of the 107th Congress, Senator
Collins held hearings examining issues related to cross border
fraud, the improper operation of tissue banks, and Federal
programs designed to fight diabetes. Over the following 18
months, Senator Levin led a bipartisan investigation into Enron
Corporation, which had collapsed into bankruptcy just before he
became Chairman. The Subcommittee reviewed over 2 million pages
of documents, conducted more than 100 interviews, held four
hearings, and issued three bipartisan reports on the role
played by Enron's Board of Directors, Enron's use of tax
shelters, and how major U.S. financial institutions had
contributed to Enron's accounting deceptions, corporate abuses,
and ultimate collapse. The Subcommittee's investigative work
contributed to passage of the Sarbanes-Oxley Act which enacted
accounting and corporate reforms in July 2002. Senator Levin
also advanced the money laundering investigation initiated
while he was Ranking Minority Member and opened new
investigations into offshore tax abuses, border security, and
the pricing of gasoline and other fuels.
In January 2003, at the start of the 108th Congress,
Senator Collins became Chairman of the full Committee on
Homeland Security and Governmental Affairs, and Republican
Senator Norm Coleman of Minnesota became the Subcommittee
Chairman. Over the next 2 years, Senator Coleman held 15
hearings on topics of national and global concern including
illegal file sharing on peer-to-peer networks, abusive
practices in the credit counseling industry, the dangers of
purchasing pharmaceuticals over the Internet, Federal
contractors with billions of dollars in unpaid taxes, SARS
preparedness, border security, and how Saddam Hussein abused
the United Nations Oil-for-Food Program. At the request of
Senator Levin, then Ranking Minority Member, the Subcommittee
examined how some U.S. accounting firms, banks, investment
firms, and tax lawyers were designing, promoting, and
implementing abusive tax shelters across the country; and how
some U.S. financial institutions were failing to comply with
anti-money laundering controls mandated by the Patriot Act,
using as a case history Riggs Bank accounts involving Augusto
Pinochet, former President of Chile, and Equatorial Guinea, an
oil-rich country in Africa.
During the 110th Congress, Chairman Coleman held 13
hearings on a wide range of topics, including three additional
hearings on abuses associated with the United Nation's Oil-for-
Food Program, two hearings on Federal contractors who failed to
pay billions of dollars in taxes, additional border security
hearings focused on securing the global supply chain, two
hearings on the Department of Defense (DOD) travel abuses, and
two field hearings on consumers hurt by abusive tax refund
loans or unfair energy pricing. At Senator Levin's request, the
Subcommittee also held hearings on offshore tax abuses, which
are responsible for $100 billion in unpaid taxes each year, and
on U.S. money laundering vulnerabilities due to the failure of
the States to obtain ownership information for the 2 million
companies formed within their jurisdictions each year.
In January 2007, Senator Levin once again became
Subcommittee Chairman. During the 110th Congress, Senator Levin
held 14 hearings on a wide range of topics, including two
hearings on unfair credit card practices, a hearing on tax and
accounting mismatches involving executive stock options,
hearings on excessive speculation in the natural gas market and
the crude oil market, and hearings on offshore tax abuses
involving tax haven banks and non-U.S. persons ducking payment
of U.S. taxes on U.S. stock dividends. At the request of
Senator Coleman, then Ranking Minority Member, the Subcommittee
also held hearings on Medicare and Medicaid health care
providers who cheat on their taxes, the payment of Medicare
claims tied to deceased doctors, abusive practices involving
transit benefits, U.S. dirty bomb vulnerabilities, Federal
payroll tax abuses, and problems involving the United Nations
Development Program.
The following pages describe the Subcommittee's work during
the 110th Congress.
II. Subcommittee Hearings During the 110th Congress
A. Credit Card Practices: Fees, Interest Charges, and Grace Periods
(March 7, 2007)
The Subcommittee's first hearing in the 110th Congress
focused on unfair credit card practices. Two years earlier, in
2005, Senator Levin had initiated a Subcommittee investigation
into credit cards by asking the Government Accountability
Office (GAO) to conduct a study of credit card finance charges
and disclosures to consumers. In 2006, GAO released a 125-page
report which, for the first time in years, provided a detailed
description of the various fees, interest rates, and disclosure
practices associated with 28 popular credit cards at the six
largest U.S. credit card issuers. On March 7, 2007 the
Subcommittee held a hearing that focused on three fundamental
credit card issues: fees, interest rates, and grace periods.
The Subcommittee investigation determined that credit card
issuers imposed a wide range of fees on card holders, including
annual fees, late fees, over-the-limit fees, balance transfer
fees, foreign exchange fees, and fees charged for paying a
credit card bill over the telephone. Those high fees were made
worse by the industry practice of including all fees in a
consumer's outstanding balance so that the fees incurred
interest charges. In other words, card issuers charged interest
not only on funds lent to a consumer, but also on any fees
assessed to a credit card account.
The Subcommittee investigation also found that credit card
issuers typically applied multiple interest rates to the same
card, depending upon the circumstances. For example, the credit
card industry typically used one interest rate for cash
advances, another for regular purchases, a third for balance
transfers, and if a cardholder paid late or exceeded a credit
limit, the issuer often imposed a so-called penalty interest
rate that could exceed 30 percent. These interest rates often
varied over time, rising and falling with the prime rate. These
multiple interest rates that changed over time made it nearly
impossible for consumers to track their finance charges. In
addition, when a consumer paid off a portion of a monthly
balance, but not the entire amount owed, credit card issuers
typically charged interest on the entire balance, including the
portion paid on time.
The Subcommittee investigation found that although many
consumers thought that all credit cards provided them with a
grace period before interest is charged, in fact, most credit
card issuers did not provide a grace period to cardholders
unless they paid their credit card balances in full each month.
If a consumer owed any balance on a card from the prior month,
there was typically no grace period provided for new purchases.
The hearing presented testimony from two panels,
representing credit cardholders and credit card issuers. The
first panel heard from Wesley Wannemacher, a credit card user,
and Alys Cohen, a staff attorney at the National Consumer Law
Center. Mr. Wannemacher testified about his experiences with a
credit card he had obtained in 2001, with a $3,000 credit
limit. He used the card to pay for expenses mostly related to
his wedding, and charged a total of about $3,200, exceeding the
card's credit limit by $200. He spent the next 6 years trying
to pay off the debt, averaging payments of about $1,000 per
year. Evidence showed that, during those 6 years, he was
charged about $4,900 in interest, $1,100 in late fees, and
$1,500 in over-the-limit fees. He was hit 47 times with over-
the-limit fees, even though he went over the limit only 3 times
and exceeded the limit by only $200. He was also assessed
interest rates as high as 30 percent. Altogether, the fees and
the interest charges added up to $7,500 which, on top of the
original $3,200 credit card debt, produced total charges to him
of $10,700. At the time of the hearing, he'd paid about $6,300
on his $3,200 debt, but still owed $4,400. After Mr.
Wannemacher agreed to testify before the Subcommittee, his
credit card issuer, Chase Bank USA, forgave his entire
outstanding debt.
Ms. Cohen testified that exorbitant interest rates and
multiple fees charged to already overburdened consumers are a
growing source of financial hardship for American families. Ms.
Cohen identified a list of abusive credit card practices,
including burdensome fees, penalty interest rates, universal
default practices, unfair allocation of payments, late payment
triggers, unfair subprime credit cards, and mandatory
arbitration clauses. She described penalty interest rates that
dramatically increased a card's interest rate, and that were
sometimes imposed for a single occasion of exceeding a credit
limit or for a payment that was one day late. She noted that
these penalty rates were applied, not just to future credit
card transactions, but also to existing balances, which
constituted a retroactive, unilateral change in the terms of
the credit card loan. Ms. Cohen also criticized the practice of
universal default, in which credit card lenders impose penalty
rates, not for any conduct affecting the consumer's credit card
account, but for conduct applicable only to other creditors.
Ms. Cohen recommended a number of reforms to end these and
other abuses.
The second panel presented testimony from three leading
credit card issuers: Bruce Hammonds, President of Bank of
America Card Services; Richard Srednicki, CEO of Chase Bank
USA; and Vikram Atal, Chairman and CEO of Citi Cards. Mr.
Hammonds testified about how credit cards work and the benefits
they provide. He testified that, under the current system,
consumers are able to access money or shop anywhere in the
world, merchants can sell merchandise to consumers they don't
know or may never see, and transactions are processed safely
and almost instantaneously. According to Mr. Hammonds, credit
cards also help consumers build their credit histories,
participate in reward programs, and obtain protection against
transaction fraud and identity theft. Mr. Hammonds also
testified that Bank of America prices its credit cards based
upon four primary factors: competition, risk, return, and
regulation. He explained that the risk of nonpayment was
managed in three ways: by issuing cards to those who
demonstrated the ability to repay, monitoring customers'
behavior, and working with customers who are experiencing
problems to give them opportunities to repay.
Mr. Srednicki from Chase began his testimony with an
apology to Mr. Wannemacher. He stated that Chase has policies
and procedures in place to identify customers like Mr.
Wannemacher, who have fallen into debt and are finding it
difficult to work their way out. According to Mr. Srednicki,
Chase policies and procedures failed to help Mr. Wannemacher,
and he regretted it. Mr. Srednicki testified that Chase
believed his case was an exception and not the rule, and that
it was caused by human error, which is why they forgave the
debt. Mr. Srednicki also announced that, as a result of the
Wannemacher case, Chase had changed its policy on over-the-
limit fees for all of its 100 million credit card accounts, and
would no longer charge more than three over-the-limit fees for
a single instance of exceeding a credit limit.
Mr. Srednicki testified that consumers use credit cards to
manage cash flow, out of convenience, for protection, and for
the special offers of credit cards. He explained that most of
Chase customers fell into the industry categories of ``super-
prime'' and ``prime,'' and were fully able to pay their credit
card bills. According to Mr. Srednicki, Chase was taking
proactive steps to help improve the clarity of information
disclosed to clients, and that 92 percent of Chase customers
began and ended the year with the same or a better interest
rate. Mr. Srednicki also referenced the 2006 GAO report finding
that the total annual and penalty fees were roughly the same in
2004 as they were in 1990, and that most bankruptcies occur--
not as a result of credit card debt, but primarily as a result
of ``unforeseen adverse events such as job loss, divorce and
uninsured illness.''
Mr. Atal testified that, at Citi Cards, customer
satisfaction drove their revenues, because lost customers were
difficult to replace. He announced at the hearing that, to
better serve their customers, Citi Cards had decided to stop
using ``universal default'' practices, and would no longer
impose penalty interest rates for conduct that applied only to
another creditor. Mr. Atal also announced that Citi Cards would
eliminate from its credit card agreements the clause allowing
it to raise credit card rates ``at any time for any reason.''
Mr. Atal also described other services Citi Cards provided to
clients, including customer alerts, financial literacy and
consumer credit education, security and protection,
disclosures, and hardship assistance, in order to treat
consumers fairly and communicate with them in a clear and
understandable way.
After the hearing, in May 2007, Senator Levin introduced S.
1395, The Stop Unfair Practices in Credit Cards Act, in order
to combat the credit card abuses identified at the hearing. In
2008, Senator Dodd introduced S. 3252, a Dodd-Levin credit card
reform bill that incorporated most of the Levin bill as well as
additional measures to stop credit card abuses.
B. Medicare Doctors Who Cheat on Their Taxes and What Should Be Done
About It (March 20, 2007)
As part of the Subcommittee's continuing investigation of
Federal contractors who are tax-delinquent, the Subcommittee
examined the extent to which physicians and other health care
providers who receive Medicare payments from the Federal
Government also have unpaid tax debt. In addition, the
Subcommittee investigated why the Centers for Medicare and
Medicaid Services (CMS) had failed to establish systems to
screen payments to Medicare health care providers to identify
recipients with outstanding tax debt and subject them to levies
under the Federal Payment Levy Program (FPLP). The Subcommittee
held a hearing on these issues on March 20, 2007.
At the hearing, GAO testified that more than 21,000
physicians, health professionals, and suppliers who received
payments from the Medicare Part B Program during the first 9
months of 2005 owed more than $1 billion in unpaid Federal
taxes. GAO also reported that Medicare physicians owed $33
million in unpaid child support, $27 million in delinquent
student loans, $22 million in unpaid State taxes, and $114
million that was owed to Federal agencies. These other types of
debt were not being collected, because CMS is statutorily
exempt from collecting non-tax debt.
GAO identified 40 specific instances of abusive or
potentially criminal activity related to Medicare health care
providers with unpaid taxes. These 40 cases included a
physician who received more than $100,000 in Medicare payments,
while owing nearly $1 million in back taxes; an ambulance
company that received more than $1 million, while owing nearly
$11 million in taxes; and a medical imaging company that
received more than $1 million, while owing nearly $3 million in
unpaid taxes.
GAO also noted that, 6 years earlier, CMS had been cited
for not participating in the FPLP tax levy program in a July
2001 GAO report entitled, ``Tax Administration: Millions of
Dollars Could Be Collected If IRS Levied More Federal
Payments,'' GAO-01-711. GAO testified that CMS had failed to
take any steps over the subsequent 6 years to establish the
required FPLP screening procedures.
IRS Commissioner Mark Everson then testified about the
recent progress that has taken place in the FPLP program to
increase the number of Federal payments screened for unpaid
taxes. The overall result has been a dramatic increase in tax
collections, which have more than tripled from $89 million in
fiscal year 2003, to $299 million in fiscal year 2006. With
respect to CMS payments to Medicare health care providers,
Commissioner Everson stated that these payments were legally
subject to levy, and that the Internal Revenue Service (IRS),
Financial Management Service (FMS), and CMS had begun talks to
evaluate the steps needed to include these payments in the
FPLP.
FMS Commissioner Kenneth R. Papaj testified that all levy
collections have continued to increase due to improvements in
the FPLP program. These improvements have included an increase
in the types of payments that are being levied, more frequent
screening of payments, and improved information enabling FMS to
target tax levies successfully. He also testified that the
issue of how to include Medicare payments in the FPLP had been
taken up by the Federal Contractor Tax Compliance Task Force
comprised of staff from IRS, FMS and CMS.
Finally, Acting CMS Administrator Leslie V. Norwalk
testified that CMS was in the process of implementing the
HealthCare Integrated General Ledger Accounting System, which
will simplify the Medicare payment process and make it feasible
to impose levies under the FPLP. CMS expected to complete
implementation of the new system in 2011.
To deepen understanding of the extent of the problem, the
Subcommittee asked GAO to conduct an expanded review of
Medicare health care providers with unpaid taxes. On June 13,
2008, the GAO released a report entitled, ``Medicare: Thousands
of Medicare Providers Abuse the Federal Tax System,'' GAO-08-
618, which looked at an entire year of data from 2006 for
health care providers in both the Medicare Part A and Part B
Programs. Overall, GAO estimated that over 27,000 Medicare
providers, or about 6 percent of all Medicare providers, had
unpaid Federal taxes totaling over $2 billion. GAO also found
instances of abusive and criminal activity in a
nonrepresentative sample of 25 Medicare health care providers,
often involving established businesses that had failed to remit
their payroll taxes. The GAO report determined that CMS had no
mechanism to prevent providers with substantial unpaid Federal
taxes from becoming Medicare providers or receiving Medicare
payments. In addition, because CMS was not participating in the
FPLP, GAO estimated that the government had lost the
opportunity to collect between $50 and $140 million in unpaid
taxes from payments disbursed in 2006 alone.
As a result of the Subcommittee's investigation,
legislation was included in the Medicare Improvements for
Patients and Providers Act of 2008, Public Law 110-275, to
require CMS, over a 4-year period, to establish tax levy
procedures for all Medicare payments to health care providers.
CMS was required to begin screening a portion of those Medicare
payments in 2008, and to increase the payments subject to levy
until 100 percent were screened for unpaid taxes.
C. Transit Benefits: How Some Federal Employees Are Taking Uncle Sam
For a Ride (April 24, 2007)
At the request of Senator Coleman, the Subcommittee
initiated an investigation into reports that federally
subsidized transit benefits in the form of Metrocheks and
Smartrip cards, which were designed to be used only by Federal
employees riding mass transit, were being sold to third parties
in potential violation of Federal regulations. On April 24,
2007, the Subcommittee held a hearing which disclosed that
program abuses were occurring, and that internal controls to
prevent such abuses were inadequate.
Less than 10 years ago, the Federal transit benefits
program was established to encourage Federal employees to use
public transportation, like subways and buses, for the purpose
of reducing road congestion, air pollution, gasoline
consumption, and U.S. dependence on foreign oil. Nationwide,
the program distributes about $250 million in Federal travel
subsidies each year and encourages nearly 300,000 Federal
employees to commute to work on mass transit systems, by
supplying them with monthly benefits that can pay for subway
tokens or bus passes. More than half of these employees work in
the Nation's capital and supply nearly a third of the 1.1
million daily trips taken on the local subway system. By
getting these workers off the roads and into mass transit, the
Federal transit benefit program was intended not only to
support public transportation, but also benefit other Americans
by lessening pollution, gasoline consumption, and wear and tear
on roads.
Federal employees using Metrocheks and Smartrip cards are
required to certify under penalty of perjury that they will not
sell or transfer their transit benefits to anyone else and that
the amount received does not exceed their monthly commuting
costs. No single Federal agency is responsible for overseeing
the transit benefits program; instead, each participating
Federal agency is responsible for ensuring that its own
employees make proper use of the transit benefits received.
A GAO investigation undertaken at the request of the
Subcommittee determined that a variety of fraudulent and
abusive practices affecting transit benefits were taking place
in the Washington, D.C. metropolitan area. GAO identified, for
example, Federal employees who were selling their transit cards
on the Internet; falsifying benefit applications to claim
excess benefits; claiming mass transit and parking benefits at
the same time; distributing benefits to friends and family; and
receiving benefits after leaving employment with the Federal
Government. GAO identified specific Federal employees engaged
in these practices and turned their cases over to their agency
employers. GAO also found that these abuses occurred in part
because Federal agencies lacked the necessary internal controls
to detect and prevent abuses.
GAO testified at the hearing about its findings.
Representatives of Federal agencies also testified. They
generally admitted abuses were occurring, and that each
participating agency bore the responsibility for implementing
internal controls to prevent them. These witnesses included
Linda J. Washington, Acting Assistant Secretary for
Administration, Department of Transportation; Calvin Scovel
III, Inspector General for the Department of Transportation;
Michael L. Rhodes, Director of Washington Headquarters
Services, Department of Defense (DOD); and Acting DOD Inspector
General Thomas Gimble. The hearing also disclosed that six
different inspectors general, including the DOD IG, had
previously audited use of transit benefits and concluded that
the program controls were inadequate.
In response to the hearing, the Transportation Department
and other agencies agreed to tighten controls, consider
specifying uniform application forms and internal controls
across the country, and exercise better oversight of Federal
transit benefits.
D. Executive Stock Options: Should the Internal Revenue Service and
Stockholders Be Given Different Information? (June 5, 2007)
In 2007, the Subcommittee initiated an investigation into
excessive executive pay and abusive practices involving
compensation paid to U.S. corporate executives, including
through stock options. In 2006, the average pay of chief
executive officers (CEOs) at large U.S. public companies was
$15.2 million, of which nearly half, $7.3 million, came from
exercising stock options. In 2006, CEOs received nearly 400
times the average pay earned by workers, and stock options were
a key reason.
On June 5, 2007, the Subcommittee held a hearing examining
how current U.S. accounting and tax rules require stock option
compensation expenses to be valued in different ways on
corporate financial statements compared to corporate tax
returns, and how, in most cases, corporations take stock option
tax deductions that are far in excess of the stock option
expenses recorded on their financial statements. Stock option
compensation is currently the only type of compensation in
which corporations are allowed to take tax deductions that
exceed their book expenses. The Subcommittee investigation
found that, by providing overly generous stock option tax
deductions, Federal tax policy encouraged corporations to
provide excessive stock option pay, fueled the pay gap between
executives and workers, and enabled profitable corporations to
avoid paying billions in taxes.
At the hearing, the Subcommittee detailed the stock option
book-tax difference at nine Fortune 500 companies. The data
showed that the nine companies alone produced $1 billion more
in tax deductions than the expenses shown on their books, even
after using a new accounting rule requiring stock option
compensation to be expensed on corporate financial statements.
Three of the nine companies testified at the hearing:
Stephen F. Bollenbach, Chairman of the Board of Directors of KB
Home, a residential construction company; John S. Chalsty,
Chairman of the Compensation Committee of Occidental Petroleum
Corporation, an oil company; and William Y. Tauscher, Member
and former Chairman of the Compensation Committee of Safeway,
Inc., a large grocery chain. The data showed that KB Home had
claimed a $143 million tax deduction for stock option expenses
that, under the new accounting rule, would have totaled $11.5
million, with the result that its tax deduction was 12 times
bigger than its book expense. The data showed that Occidental
Petroleum claimed a $353 million tax deduction for a stock
option book expense that, under the new accounting rule, would
have totaled just $29 million, a book-tax difference of more
than 1,200 percent. The data also showed that Safeway claimed a
$39 million tax deduction for a stock option book expense that
would have totaled about $6.5 million, a difference of more
than 600 percent. Altogether, the data showed that the nine
companies took stock option tax deductions totaling $1.2
billion, a figure five times larger than their combined stock
option book expenses of $217 million. The corporate witnesses
did not dispute these figures; instead, they explained that
their corporations had simply complied with the required
accounting and tax rules which are responsible for producing
these disparate results.
The second panel at the hearing presented testimony from
government witnesses. Kevin M. Brown, Acting IRS Commissioner,
presented a data analysis performed by the IRS at the request
of the Subcommittee on the overall size and composition of the
stock option book-tax difference. Using actual tax return
information from schedules filed over 7 months from December
31, 2004 to June 30, 2005, Mr. Brown reported that about 3,000
companies had disclosed a book-tax difference related to stock
option compensation, and overall, these companies had claimed
$43 billion more in stock option tax deductions than book
expenses. He also reported that approximately 250 companies
accounted for 82 percent of the $43 billion in excess tax
deductions. John W. White, Director of the Division of
Corporation Finance of the U.S. Securities and Exchange
Commission (SEC) testified that the dramatic growth of stock
options as compensation was accompanied by abuses and deserved
additional disclosure and transparency.
In the last panel, three experts discussed the stock option
book-tax difference. Lynn E. Turner, former SEC Chief
Accountant, testified about how the disparity in U.S.
accounting and tax rules had created an incentive for companies
to maximize stock options in order to benefit from the income
tax deductions while also minimizing expenses for financial
reporting purposes. He noted the conflicting information
reported to investors and the SEC versus the IRS. Mihir A.
Desai, an associate professor at the Harvard University
Graduate School of Business Administration, testified that the
dual reporting system created incentives for corporations to
maximize the deductions reported to tax authorities, while
minimizing the expenses reported to investors. He noted that
investors did not have access to the information being given to
tax authorities or to the size of the book-tax discrepancy,
which would help investors evaluate a company's actual economic
performance. He also noted that the United States was an
anomaly among its peers in its dependence on dual reporting, as
most other countries have moved to align stock option tax and
financial reporting without negative consequences. Finally,
Jeff Mahoney, General Counsel to the Council of Institutional
Investors, which represents corporate and union pension fund
investors, testified that stock option compensation represented
a true expense to corporations, that the existing policy
encourages excessive stock option awards, and that it is simply
bad tax policy to continue to allow profitable corporations to
avoid payment of taxes by claiming large stock option tax
deductions.
In 2008, at the request of the Subcommittee, the IRS
updated its data to provide analysis for a full year of stock
option book-tax differences. The IRS determined that, for tax
returns filed in 2004, the amount by which corporate stock
option tax deductions exceeded the equivalent book expenses was
$49 billion, up from the $43 billion announced at the hearing.
In addition, the IRS determined that the excess stock option
tax deductions for corporate returns filed in 2005 totaled $61
billion.
As a result of the Subcommittee investigation, on Sept. 28,
2007, Senator Levin introduced legislation, S. 2116, to require
stock option tax deductions to match, and not exceed, a
corporation's book expense.
E. Excessive Speculation In The Natural Gas Market (June 25 and July 9,
2007)
In June and July 2007, the Subcommittee held two days of
hearings and released a 400-page bipartisan staff report which
found excessive speculation in the natural gas market, using
the case history of Amaranth Advisors LLC, a hedge fund which
the report found had distorted 2006 U.S. natural gas prices
through large speculative trades, traded in both regulated and
unregulated energy commodity markets, and played each type of
market off the other.
The Subcommittee investigation detailed the reasons for
relatively high prices and volatility in the natural gas
futures markets in 2006, and demonstrated how excessive
speculation by a single hedge fund had dominated the natural
gas market and distorted natural gas futures prices. The
investigation also examined the extent to which speculative
trading on unregulated energy exchanges had contributed to the
price distortions. The report presented landmark evidence
demonstrating for the first time that regulated and unregulated
energy commodity markets affected each other's prices and U.S.
energy costs.
The report also contained bipartisan recommendations to
reduce excessive speculation in commodity markets, including by
enacting legislation to close ``the Enron loophole.'' The Enron
loophole, inserted at the request of Enron and others into U.S.
legislation that was enacted into law, exempts from government
oversight any electronic commodity exchange whose trading is
limited to large traders of energy or metals commodities, on
the theory that large traders have no need for government
safeguards. As a result of this exemption, one of the largest
U.S. energy exchanges, the Intercontinental Exchange (ICE), has
operated without government oversight or regulation since its
inception, even after it has become clear that its trades
affect prices on regulated markets like the New York Mercantile
Exchange (NYMEX). The report recommended eliminating this
statutory exemption from government oversight.
The first day of hearings, on June 25, presented three
panels. On the first panel, three industry experts testified
about the natural gas market: Arthur Corbin, President and CEO
of the Municipal Gas Authority of Georgia, who testified on
behalf of the American Public Gas Association; Paul N. Cicio,
President of the Industrial Energy Consumers of America; and
Sean Cota, President of the New England Fuel Institute. Each
stated that Amaranth's large positions in the 2006 natural gas
commodity markets had driven up natural gas prices beyond the
levels of supply and demand, urged transparency in the
unregulated over-the-counter energy markets, and advocated for
enhanced authority for the Commodity Futures Trading Commission
(CFTC) to prevent price manipulation and excessive speculation
in energy markets. All three stated that U.S. energy prices
were affected by trades in both the regulated commodity markets
like NYMEX and unregulated electronic markets like ICE, and
called for closing the Enron loophole.
The second panel presented testimony from two academic
experts, Professor Vince Kaminski, Jesse H. Jones Graduate
School of Management at Rice University; and Professor Michael
Greenberger, University of Maryland School of Law. Both
supported the findings in the Subcommittee staff report,
including the recommendation to close the Enron loophole.
The final witness was Shane Lee, a former natural gas
trader at Amaranth, who testified about Amaranth's natural gas
trading practices. He admitted that the volume of Amaranth's
trading was very large and took place in both regulated and
unregulated markets, but disagreed that Amaranth's trading
drove prices, and instead opined that the company merely
responded to market forces. He supported extending reporting
requirements and limits to unregulated exchanges.
On July 9, 2007, the Subcommittee held the second day of
hearings, focused on the role of market regulators to protect
the public from commodity price manipulation and excessive
speculation. The first panel heard from Dr. James Newsome,
President and CEO of NYMEX, and Jeffrey C. Sprecher, Chairman
of the Board and CEO of ICE. Dr. Newsome testified that the
existing statutory framework was unworkable, because of the
regulatory disparity between CFTC's authority over NYMEX, but
not ICE. Mr. Sprecher agreed with the Subcommittee
recommendations to increase the CFTC budget and enhance its
access to trading information, but disagreed that new
legislation was needed to fill a regulatory gap. The final
witness was the CFTC, represented by the Hon. Walter L. Lukken,
Acting Chairman, and the Hon. Michael V. Dunn, Commissioner.
They explained the limitations on CFTC regulatory authority,
including with respect to exempt commercial markets such as
ICE, the absence of over-the-counter reporting obligations, and
the CFTC's difficulty in detecting fraud and manipulation.
In response to the Subcommittee's investigative work, on
September 17, 2007, Senator Levin introduced S. 2058, the Close
the Enron Loophole Act. In May 2008, legislation based upon the
Levin bill was included in the 2008 farm bill and effectively
closed the Enron loophole and subjected electronic commodity
markets that affect prices to CFTC regulation and oversight. In
late July 2007, both the CFTC and the Federal Energy Regulatory
Commission filed civil complaints against Amaranth and its head
energy trader Brian Hunter for manipulating prices in the
natural gas market.
F. Dirty Bomb Vulnerabilities: Fake Companies, Fake Licenses, Real
Consequences (July 12, 2007)
As part of the Subcommittee's continuing examination of
nuclear and radiological threats to the United States, the
Subcommittee initiated an investigation into certain aspects of
the materials licensing policies and procedures of the Nuclear
Regulatory Commission (NRC). To evaluate the effectiveness of
these policies and procedures, GAO, in response to a
Subcommittee request, agreed to establish a false company and
test whether the NRC's licensing procedures were sufficient to
guard against the aggregation and misuse of relatively low-
grade radioactive materials, including efforts to include these
materials in a so-called ``dirty bomb.'' On July 12, 2007, the
Subcommittee held a hearing and issued a bipartisan staff
report on the results of the GAO exercise, the process by which
parties obtain NRC materials licenses, the vulnerability of NRC
materials licenses to counterfeiting and fraud, and
recommendations to strengthen NRC safeguards.
At the hearing, GAO was the first witness and testified
about NRC licensing procedures and GAO's efforts to test those
procedures. GAO explained that the NRC and certain ``Agreement
States'' to which the NRC has delegated authority are
responsible for regulating the possession and use of low-grade
radiological materials within U.S. borders. GAO disclosed that
the NRC and Agreement States use different licensing policies
and procedures to issue about 1,000 new licenses each year
allowing specified entities to possess and use certain
radiological materials in a variety of medical and industrial
fields.
GAO then described how it used aliases and a dummy
corporation to apply simultaneously for two materials
licenses--one through an Agreement State and one from the NRC.
GAO testified that the Agreement State, as part of its
licensing process, insisted on interviews with company
officials and a physical tour of the company's facilities.
Satisfied with the Agreement State's safeguards, GAO withdrew
its application. GAO reported that, in contrast, the NRC opted
not to conduct a site visit or in-person interviews with
company officials as part of its licensing procedure. According
to the GAO, in less than 30 days, after exchanging a handful of
phone calls and faxes with GAO's sham corporate executives, the
NRC issued a materials license to its dummy corporation
allowing it to take possession of radiological materials.
GAO also testified that NRC materials licenses were
singularly susceptible to counterfeiting. GAO described how,
using off-the-shelf computer software, it electronically
scanned the NRC license it had received and created a near-
identical facsimile. Using the counterfeit license, GAO then
contracted with two different companies to purchase a number of
radiological devices. GAO testified that the aggregate amount
of radioactive materials that it had contracted to buy vastly
exceeded the quantity authorized on the original NRC license,
met the NRC's definition of a ``dangerous'' quantity, and could
have been sufficient to construct a dirty bomb. GAO testified
that it could have used the counterfeit NRC licenses to
purchase virtually unlimited amounts of radioactive material.
GAO offered a number of recommendations to strengthen NRC
licensing procedures and combat counterfeit materials licenses.
On the second hearing panel, Edward McGaffigan, Jr., NRC
Commissioner, acknowledged that GAO had revealed flaws in the
NRC's licensing procedures for possession and use of low-grade
radioactive materials. He noted that applicants for these
materials do not undergo the same degree of scrutiny as
applicants for more dangerous radioactive materials. For
example, he acknowledged that, when reviewing applications for
low-grade radioactive materials, NRC licensing officers were
authorized to exercise judgment on whether pre-licensing site
visits were necessary. Regarding the vulnerability of materials
licenses to modification or counterfeiting, McGaffigan
acknowledged that GAO's work provided ``cause for concern.''
In response to the Subcommittee's investigative work, the
NRC proposed performing a retrospective examination of certain
licenses issued by the NRC to verify that the licensees were
legitimate; re-evaluating NRC licensing procedures and
guidance; examining options to combat counterfeit licenses; and
reevaluating security measures. After the hearing, the NRC
established an ``Independent External Review Panel to Identify
Vulnerabilities in the NRC's Materials Licensing Program,'' a
``Materials Program Working Group,'' and a ``Pre-Licensing
Guidance Working Group.'' The Independent Review Panel and NRC
staff embraced virtually all of the Subcommittee staff report's
recommendations. Most notably, the NRC recognized the need to
suspend its ``good faith presumption'' that new applicants
seeking radioactive materials were honest and hasten
implementation of a National Source Tracking System and a Web-
Based Licensing System.
G. Medicaid Providers That Cheat on Their Taxes and What Should Be Done
About It (November 14, 2007)
As part of the Subcommittee's continuing investigation into
Federal contractors who are tax-delinquent, the Subcommittee
examined the extent to which physicians and other health care
providers who receive Medicaid payments from the 50 States,
each payment of which includes some Federal funds, have unpaid
Federal tax debt. As part of this investigation, the
Subcommittee examined the complexity of the Medicaid payment
system and how Medicaid payments could be screened to identify
recipients with outstanding Federal tax debt and made subject
to levies under the Federal Payment Levy Program (FPLP). The
Subcommittee held a hearing on these issues on November 14,
2007.
At the request of the Subcommittee, GAO had initiated an
evaluation of the unpaid Federal taxes owed by Medicaid health
care providers. At the hearing, GAO testified that it had
examined seven States accounting for 43 percent of Medicaid
payments in FY 2006, and identified more than 30,000 providers,
or about 5 percent of the total, who owed more than $1 billion
in unpaid Federal taxes. GAO testified that more than half of
the unpaid taxes were payroll taxes that employers had withheld
from their employees and were required by law to remit to the
Internal Revenue Service (IRS), but failed to do so. GAO
estimated that, if the Federal Government had levied Medicaid
payments in the seven selected States through the FPLP, it
could have collected between $70 and $160 million in unpaid
taxes.
GAO identified 25 specific instances of abusive or
potentially criminal activity related to Medicaid health care
providers with unpaid taxes. Those 25 cases included a nursing
home facility that received more than $39 million in Medicaid
payments in FY 2006, while owing more than $16 million in back
taxes, primarily from unremitted payroll taxes; a hospital that
received more than $9 million from Medicaid, while owing nearly
$5 million in taxes; and a medical clinic that received nearly
$3 million, while owing nearly $1 million in unpaid taxes.
GAO reported that, in addition to unpaid tax debt, Medicaid
health care providers owed about $31 million in unpaid child
support, $66 million in other Federal agency debt including
delinquent student loans, and $5 million in unpaid State taxes.
GAO explained that these other types of debt were not being
collected, because Medicaid payments are not processed through
Federal payment systems.
The second hearing panel heard testimony from three Federal
agencies: Linda Stiff, Acting IRS Commissioner; Kenneth R.
Papaj, head of the Financial Management Service that operates
the FPLP; and Dennis G. Smith, Director of the Center for
Medicaid and State Operations at the Center for Medicare and
Medicaid Services (CMS). Ms. Stiff and Mr. Papaj testified that
Medicaid payments include both State and Federal components,
are administered by the States under 50 different systems, and
are currently not subject to the Federal Payment Levy Program
(FPLP) because they are not considered ``Federal payments.''
Mr. Smith described the procedures under which CMS makes
quarterly payments to the States which, in turn, use those
Federal funds in their Medicaid programs, including by making
payments to health care providers. All three witnesses
testified that incorporating Medicaid payments into the FPLP
would be complex and difficult, and would likely require a
change in law. They also pledged, as a result of the
Subcommittee's investigative work, to examine the issues more
closely.
In response to the Subcommittee's investigative work, in
April 2008, Senators Coleman and Levin introduced S. 2843, the
Medicaid Levy Enhancement Act, to authorize Federal tax levies
on Medicaid payments to health care providers. The bill was
referred to the Committee on Finance for further consideration.
H. Credit Card Practices: Unfair Interest Rate Increases (December 4,
2007)
On December 4, 2007 the Subcommittee held its second
hearing of the year examining abusive credit card practices.
The hearing focused on the problem of unfair interest rate
increases, in particular the industry practice of increasing
interest rates even for card holders who have paid their credit
card bills on time, stayed below their credit limits, and paid
at least the minimum amount due. The hearing took testimony
from both credit card holders and issuers.
The first panel took testimony from three consumers who
described their experiences. Janet Hard of Freeland, Michigan,
testified that, in 2006, Discover increased her credit card
interest rate from 18 percent to 24 percent, even though she
had made payments to Discover on time and paid at least the
minimum amount due for over 2 years. Discover applied the 24
percent rate retroactively to her existing credit card debt of
$8,300, increasing her minimum payments and increasing the
amount that went to finance charges instead of the principal
debt. The result was that, despite making steady payments
totaling $2,400 over 12 months and keeping her purchases to
less than $100, Ms. Hard's credit card debt decreased by only
$350. According to Mrs. Hard, out of more than $5,600 that she
paid to Discover over a longer period of time, more than $3,400
went solely to interest charges. Ms. Hard testified that the
unilateral interest rate increase imposed on her by Discover,
despite her record of on-time payments, had caused great
hardship for her family.
Millard Glasshof of Milwaukee, Wisconsin, is a senior
citizen on a fixed income. He testified that, for many years,
he had made a $119 monthly payment to Chase Bank to pay off a
$5,000 debt on a closed credit card account and was gradually
reducing the amount owed. In December 2006, according to Mr.
Glasshof, Chase suddenly increased his interest rate from 15
percent to 17 percent, and then hiked it again to 27 percent.
He said that Chase applied the new 27 percent rate
retroactively to his existing debt, which meant that, out of
his $119 payment, $114 went to pay finance charges and only $5
went to reducing his principal debt. Due to the new high
interest rates as well as the imposition of excessive fees, Mr.
Glasshof testified that, despite his making payments totaling
$1,300 over a 12-month period, his credit card debt did not go
down at all.
Bonnie Rushing of Naples, Florida, described her experience
with a Bank of America credit card that carried an interest
rate of about 8 percent. She testified that, in April 2007,
despite a history of timely payments on her credit card debt,
Bank of America nearly tripled her interest rate to 23 percent.
According to Ms. Rushing, she had received no prior
notification of the rate hike. Ms. Rushing testified that a
bank representative told her she had no recourse other than to
accept the increased interest rate, pay off the account with
another credit card, or try to renegotiate an interest rate
higher than the prior 8 percent rate. Ms. Rushing testified
that she asked to close the account and pay off the existing
debt at the prior 8 percent rate, but was told it was not an
option. Ms. Rushing testified that she closed the account and,
after complaining to the Florida Attorney General, the
Subcommittee, and her card sponsor, she was able to get Bank of
America to restore the 8 percent rate she had been paying.
The second hearing panel heard from three leading credit
card issuers: Bruce Hammonds, President of Bank of America Card
Services; Roger Hochschild, President and Chief Operating
Officer of Discover Financial Services; and Ryan Schneider,
President for Card Services at Capital One. Mr. Hammonds
described the benefits that credit cards provide to consumers
and the need to use risk-based pricing to ensure that credit is
widely available and reduce costs for the least risky
borrowers. Mr. Hammond testified that credit card issuers
employ different risk-based pricing strategies, and consumers
can make informed choices among them. Mr. Hochschild testified
that Discover's ability to make risk-based and default-based
price adjustments to annual percentage rates allows them to
offer credit to a wider segment of the public, and price credit
at a level appropriate for each borrower. According to Mr.
Hochschild, many credit card users have seen the costs of
credit come down. Mr. Hochschild testified that changes in
interest rates occur for several reasons, including changes
driven by a customer's payment behavior and changes reflecting
credit costs and risks to an issuer's credit card portfolio.
Mr. Schneider testified that a flexible pricing structure
is an essential tool in the safe and sound underwriting of
open-ended, unsecured credit products. He testified that the
ability to modify the terms of a credit card agreement to
accommodate changes over time to the economy or the
creditworthiness of consumers must be preserved as a matter of
fiduciary responsibility. He testified that the consequences of
imposing severe restrictions on the ability to reprice such
loans in response to these changes could include significant
reductions in the availability of credit to many and higher
pricing for all, particularly for customers who pose a higher
level of risk. Mr. Schneider testified that Capital One
supported permitting consumers to reject a new interest rate in
exchange for stopping the use of their card, and paying off
their existing balance at their previous rate, and requiring a
45-day advance repricing notification.
In addition to the testimony of Ms. Hard, Mr. Glasshof, and
Ms. Rushing, the hearing presented evidence that retroactive
interest rate hikes on consumers with on-time payment histories
were common in the credit card industry. Both Senator Levin's
and Senator Dodd's credit card reform bills introduced in 2007
and 2008, as described earlier, included provisions to end this
type of unfair credit card practice.
I. Speculation In the Crude Oil Market (Joint Hearing, Permanent
Subcommittee on Investigations and the Subcommittee on Energy
of the Committee on Energy and Natural Resources) (December 11,
2007)
In June 2006, the Subcommittee released a bipartisan staff
report entitled, The Role of Market Speculation In Rising Oil
and Gas Prices: A Need To Put The Cop Back On The Beat. It
found that the traditional forces of supply and demand no
longer fully accounted for rising prices and ongoing price
volatility in the U.S. oil and gasoline markets. The report
found that, in 2006, market speculation had also contributed to
rising oil and gasoline prices, perhaps accounting for $20 out
of a $70 barrel of oil. The report made a number of
recommendations to increase market oversight and stop price
manipulation and excessive speculation. In December 2007, the
Subcommittee held a joint hearing with the Senate Subcommittee
on Energy to examine further the reasons for rising U.S. oil
prices despite adequate U.S. supplies of oil, and the role of
speculative trades in elevating energy prices.
The hearing focused on the role of speculators in driving
up oil prices. Data was presented showing that, in recent
years, the trading volume for oil futures contracts had
increased dramatically, and the percentage of oil futures
contracts held by speculators, as opposed to parties involved
in the actual delivery of oil, had risen from approximately 15
percent to nearly 45 percent. Speculators were defined as
traders seeking to profit from an increase in price as opposed
to those seeking to hedge their position in order to assure a
stable supply of oil at a set price. The hearing also examined
evidence of the extent to which the Administration's policy for
adding oil to the Strategic Petroleum Reserve (SPR), regardless
of price, had contributed to rising oil prices by depleting
market supplies. This issue had been explored in detail by the
Subcommittee years earlier in a 2003 report prepared by Senator
Levin's staff. In addition, the hearing looked at the
disproportionate impact of sweet crude oil deliveries in
Cushing, Oklahoma on U.S. oil prices overall. That particular
type of sweet crude oil provides the benchmark price for U.S.
crude oil in standard futures contracts on the New York
Mercantile Exchange (NYMEX), which means that changes in its
price can cause price swings across the entire U.S. oil market.
Four witnesses provided testimony about the likely cause of
oil price increases. According to Guy F. Caruso, Administrator
of the Energy Information Administration (EIA), research by
EIA, CFTC, and other agencies indicated that recent oil price
increases were caused by a confluence of multiple supply and
demand factors: strong world economic growth, moderate supply
growth from non-OPEC nations, OPEC production decisions, low
spare production capacity, tight global commercial inventories,
refining bottlenecks, and ongoing geopolitical risks. He
discounted the role of speculative trades in producing rising
oil prices.
The other three witnesses disagreed. Fadel Gheit, a Wall
Street energy analyst, testified that, in his view, oil prices
were inflated by as much as 100 percent from excessive
speculation in the oil markets. He noted that this view was
supported by the current Energy Secretary, most OPEC ministers,
and the heads of major international oil companies. He urged
regulation of oil trading to improve transparency, discourage
excessive speculation, and prevent conflicts of interest by
traders. Edward N. Krapels, Director of Financial Energy Market
Services at Energy Security Analysis, Inc., concurred that
financial speculators were driving up oil prices and that the
government should respond by increasing disclosure and
regulating the market. Dr. Philip K. Vergleger, Jr., an oil
expert and President of PK Verleger, LLC, likewise testified
that speculation was responsible for driving up oil prices in
commodity markets. He indicated that oil prices had also
increased because of the increased demand fueled by the
Administration's large purchase of sweet crude oil for the SPR.
In February 2008, Senator Levin joined Senator Dorgan and
others in introducing legislation, S. 2598, to place a
moratorium on purchases of high-priced oil for the SPR. A
similar House bill, H.R. 6022, was enacted into law a few
months later.
J. United Nations Development Program: A Case Study of North Korea
(January 24, 2008)
In 2007, as part of an ongoing inquiry into management
issues at the United Nations (UN), the Subcommittee commenced
an examination into allegations of mismanagement and misconduct
in the operations of the United Nations Development Program
(UNDP) in the Democratic People's Republic of Korea (DPRK).
Over the course of its investigation, the Subcommittee
collected voluminous documents and interviewed dozens of
individuals, including persons from the U.S. Mission to the
United Nations, UNDP, other U.N. organizations, financial
institutions, and the DPRK's Permanent Mission to the United
Nations.
On January 24, 2008, the Subcommittee held a hearing and
released a bipartisan staff report on its investigation. The
report found that the UNDP had operated in North Korea with
inappropriate staffing, questionable use of foreign currency
instead of local currency, and insufficient administrative and
fiscal controls. The report also showed how, in 2002, the DPRK
government had used its relationship with the United Nations to
execute deceptive financial transactions, moving over $2.7
million of its own funds from Pyongyang to DPRK diplomatic
missions abroad through a bank account intended to be used
solely for UNDP activities and referencing UNDP in the wire
transfer documentation. The report found that the UNDP also
transferred U.N. funds to a company that, according to a letter
from the U.S. State Department to UNDP, had ties to an entity
involved in DPRK weapons activity. Additionally, the report
found that, by preventing access to its audits and not
submitting to the jurisdiction of the U.N. Ethics Office, the
UNDP had impeded reasonable oversight and undermined its
whistleblower protections.
The hearing heard from three panels of witnesses. The first
panel featured the Hon. Zalmay Khalilzad, U.S. Ambassador to
the United Nations, and the Hon. Mark Wallace, U.S. Ambassador
to the United Nations for Management and Reform. The two
ambassadors discussed a number of U.N. reform efforts,
including establishment of the Independent Audit Advisory
Committee (IAAC); extension of the U.N. ethics code to apply to
the overall U.N. system, including U.N. Funds and Programmes;
ongoing work by the U.N. Procurement Task Force; and the U.N.
Transparency and Accountability Initiative (UNTAI) aimed at
ensuring that Funds and Programme funds are delivered
efficiently and effectively.
Both ambassadors discussed problems related to UNDP
operations in North Korea. They noted that the UNDP operations
had been shut down in March 2007, and a May 31, 2007 Board of
Auditors preliminary inquiry had validated concerns that the
UNDP acted in North Korea in violation of U.N. policies and
rules by: (1) making payments in hard foreign currency; (2)
utilizing staff provided by the North Korean government in core
UNDP functions; and (3) failing to make adequate project site
visits.
The second panel featured GAO which has conducted a number
of studies over the years on issues related to the United
Nations. GAO testified that recent events demonstrated the
continuing need to reform and modernize the United Nations in
such areas as management, ethics, procurement, and
accountability. GAO attributed the lack of progress in various
budgetary, financial management, and administrative reforms to,
in part, disagreements among member states about the priorities
and importance of U.N. management reform efforts; the lack of
comprehensive implementation plans for some management reform
proposals; and administrative policies and procedures that
complicate human resource reforms. GAO also testified that the
governing bodies responsible for U.N. oversight, as well as
member states, lacked full access to internal U.N. audit
reports that identify and analyze critical issues.
The third panel featured four key U.N. officials: Frederick
Tipson, Director of the UNDP Liaison Office; David Lockwood,
Deputy Director of the UNDP Bureau for Asia and the Pacific;
David Morrison, UNDP Director of Communications; and Robert
Benson, Director of the U.N. Ethics Office. The Subcommittee
acknowledged the privileges and immunities of the United
Nations and expressed appreciation that the U.N. witnesses had
voluntarily agreed to brief the Subcommittee. The UNDP
officials discussed the UNDP operations in DPRK, noting that
the North Korean development projects presented a host of
management and administrative challenges. Mr. Tipson noted
that, contrary to some allegations, the evidence showed that
the UNDP had not transferred hundreds of millions of dollars in
hard currency to the North Korean Government. He stated that
the objective of the UNDP as an organization must be to satisfy
the standards of their major government supporters, and that
the organization was sufficiently transparent and accountable
to provide confidence in its operations. He agreed, however, to
communicate to UNDP management concerns about the existing
restrictions on access to UNDP and other U.N. audit reports.
Mr. Benson briefed the Subcommittee on the establishment
and jurisdiction of the U.N. Ethics Office of the United
Nations Secretariat and its ability to review cases of
retaliation against whistleblowers working at U.N. Funds and
Programmes, such as UNDP. He noted that the U.N. Ethics Office
had been established as a new and independent office within the
U.N. Secretariat reporting directly to the Secretary-General.
According to Mr. Benson, the new U.N. Ethics Office's
jurisdiction was limited to the U.N. Secretariat, did not reach
the U.N. Funds and Programmes, and could not protect UNDP
whistleblowers. He noted that the heads of the U.N. Funds and
Programmes had agreed to establish a single ethics code and
oversight system, but that was outside his office.
K. Medicare Vulnerabilities: Payments for Claims Tied to Deceased
Doctors (July 9, 2008)
As part of an ongoing investigation into waste, fraud, and
abuse in the Medicare and Medicaid programs, on July 9, 2008,
the Subcommittee held a hearing and released a bipartisan staff
report on the payment by Medicare of durable medical equipment
(DME) claims using identification numbers belonging to deceased
physicians. Using Medicare data from 2000-2007, the report
estimated that nearly half a million payments, totaling about
$76 million, had been provided to medical equipment suppliers
submitting claims using the identification numbers of 17,000
deceased doctors, which is about half of the deceased doctor
population.
For many years, Medicare had required all medical claims to
include an identifier for the prescribing physician. The
identifier, until recently, was called the Unique Physician
Identification Number (UPIN). In 2001, the Inspector General
(IG) of the U.S. Department of Health and Human Services (HHS)
issued a report alerting the Centers for Medicare and Medicaid
Services (CMS) to failures in the UPIN system after finding
that, in 1999 alone, over $90 million had been paid for medical
equipment claims with invalid UPINs. In response, CMS
instructed the contractors that maintained the UPIN registry to
review the UPIN database, eliminate UPINs for deceased
physicians, and keep the registry updated going forward. The
contractors were also told to modify the claims process to bar
payment of claims with invalid UPINs. CMS reported to the HHS
IG that the needed UPIN reforms had been completed, but neither
CMS nor its contractors ever tested them to ensure they worked.
The Subcommittee's investigation showed that, despite the 2001
reform effort, CMS continued to pay millions of dollars of
Medicare claims referencing deceased physicians.
The hearing took testimony from three agency officials
about the problem: Herb Kuhn, CMS Deputy Administrator; Robert
Vito, Regional HHS IG; and William E. Gray, Deputy Commissioner
at the Social Security Administration (SSA). Mr. Vito discussed
three consecutive HHS IG reports that had identified problems
with inaccurate UPIN data, the most recent of which, in 2003,
found that 52 percent of medical providers in the UPIN database
had inaccurate information in at least one of the practice
settings. Mr. Vito noted that CMS had decided to replace the
UPIN system and was in the process of converting to a new
National Provider Identifier (NPI) system, with stronger
controls, including Social Security number verifications. He
voiced concerns, however, that initial IG work had already
identified invalid physician identifiers in the new NPI system
and that additional studies were needed. Mr. Gray described
SSA's procedures for providing death information to CMS on an
electronic and automated systems, to facilitate contractor
efforts to update the NPI system and remove identifiers for
deceased physicians. Mr. Kuhn described CMS' efforts to ensure
that invalid provider numbers are not used to perpetrate
Medicare fraud, including its intent to work with the IG and
SSA to ensure the NPI system was effective. CMS also committed
to instituting software changes to bar payment of Medicare
claims with invalid physician identifiers, and to testing those
changes once they were in place to make sure they worked.
L. Tax Haven Banks and U.S. Tax Compliance (July 17 and 25, 2008)
Since 2001, the Subcommittee has devoted investigative
resources to exposing tax haven and tax shelter abuses that are
undermining the integrity of the Federal tax system, diverting
tens of billions of dollars each year from the U.S. Treasury,
and shifting the tax burden from high income corporations and
individuals onto the middle class. The Subcommittee has
determined that offshore tax abuses alone result in an
estimated revenue loss of $100 billion in unpaid taxes each
year. In July 2008, the Subcommittee held two days of hearings
and released a bipartisan staff report demonstrating how two
offshore banks, UBS and LGT, had facilitated tax dodging by
U.S. taxpayers and used offshore secrecy laws to hide the
actions of both their clients and their own personnel.
UBS AG is one of the largest financial institutions in the
world, with headquarters in Switzerland and banking branches
across the United States and other countries. LGT Bank is the
leading private bank in Liechtenstein and is owned by the
Liechtenstein royal family. The report released by the
Subcommittee detailed how both banks opened accounts for U.S.
clients and deliberately helped them hide assets, dodge taxes,
and duck creditors and courts. At the hearing, UBS admitted
helping over 19,000 U.S. taxpayers open Swiss bank accounts
with about $18 billion in assets that were not disclosed to the
IRS. UBS promised to close those accounts and no longer offer
Swiss accounts to U.S. taxpayers without notifying the IRS of
the account openings. With respect to LGT, the report presented
seven case histories of U.S. persons who opened LGT accounts
and used the services of the bank and its affiliates to conceal
assets and engage in tax evasion. The hearing also presented a
list of some of the deceptive practices used by the two tax
haven banks and offered recommendations to stop the abuses.
On the first day of hearings, a half dozen witnesses
appeared before the Subcommittee. The opening panel took
testimony from two U.S. Government officials involved in the
fight against offshore tax abuse: Hon. Douglas H. Shulman, IRS
Commissioner, and the Hon. Kevin O'Connor, Associate Attorney
General at the U.S. Department of Justice (DOJ). Mr. Shulman
discussed some of the tools used by the IRS to stop offshore
tax evasion, including requests for information about foreign
bank accounts made under tax treaties and tax information
exchange agreements. He also discussed use of so-called ``John
Doe summons,'' which are summons that request information
related to a class of U.S. taxpayers who may be violating tax
laws but cannot be identified by name. Mr. O'Connor discussed
DOJ's role in combating offshore tax evasion through civil and
criminal tax cases. He described DOJ efforts to pursue
professionals who help create and promote offshore tax evasion
schemes, including tax attorneys, accountants, and bankers. He
also described DOJ's use of tax treaties, tax information
exchange agreements, and Mutual Legal Assistance Treaties to
obtain evidence.
The hearing next accepted sworn testimony from Henrich
Kieber, a former LGT employee who had provided over 12,000
pages of internal LGT documents detailing accounts opened by
U.S. persons. Because Mr. Kieber was in a witness protection
program, the Subcommittee presented a video recording of his
statement. In it, he described some of the tactics used by LGT
to help clients keep assets out of the reach of tax
authorities, such as transferring funds through shell
corporations or foundations in an effort to confuse audit
trails tracing wire transfers; requiring LGT bankers to use pay
phones to contact clients; using pre-established code words for
clients or accounts; and retaining account statements in
Liechtenstein.
On the next panel, two witnesses invoked their right to
remain silent under the Fifth Amendment of the U.S.
Constitution. The witnesses were Shannon Marsh, the son of a
Florida construction company owner who had opened accounts in
the names of four Liechtenstein foundations with combined
deposits of nearly $50 million; and William Wu, a New York
resident who established two Liechtenstein foundations at LGT,
transferred substantial sums to them, and conducted a sham sale
of his New York residence to an offshore company he secretly
controlled. A third witness was Steven Greenfield, a New York
toy importer with $30 million in offshore funds that LGT sought
to have transferred to an LGT account. Mr. Greenfield attempted
to assert his Fifth Amendment rights at the hearing through a
letter from his lawyer, but was instructed of his need to
appear in person at a subsequent hearing. A fourth witness,
Peter S. Lowy, a California resident associated with a $68
million LGT account held in the name of a Liechtenstein
foundation and the subject of a Subcommittee subpoena, also
committed to appear at the later hearing.
The next witness was Martin Liechti, a Swiss citizen who
was the head of UBS Wealth Management Americas in Switzerland
and who had been detained in Florida for some weeks by DOJ as a
material witness to UBS' activities in the United States. He
had been subpoenaed by the Subcommittee to testify at the
hearing, but also asserted his right to remain silent under the
Fifth Amendment.
The final witness was Mark Branson, the Chief Financial
Officer of UBS Global Wealth Management and Business Banking in
Switzerland. As a Swiss citizen residing outside of the United
States, Mr. Branson was not subject to the Subcommittee's
subpoena authority and appeared on a voluntary basis. Mr.
Branson began his statement with an apology on behalf of UBS
for its compliance failures and committed the bank to operating
in the United States within the law. He stated that UBS
intended to close all Swiss accounts that had been opened for
U.S. accountholders without alerting the IRS, and that UBS
would no longer open such accounts. He testified that UBS was
working with U.S. authorities to identify the names of the U.S.
accountholders who may have been engaged in tax fraud.
The Subcommittee had also invited LGT to appear, but LGT
was outside the reach of the Subcommittee's subpoena authority
and chose not to attend the hearing.
A week later, on July 25, the Subcommittee reconvened the
hearing to take testimony from the two witnesses who had not
appeared in person on July 17: Steven Greenfield and Peter
Lowy. Both made appearances and asserted their rights to remain
silent under the Fifth Amendment.
M. Payroll Tax Abuse: Businesses Owe Billions and What Needs To Be Done
About It (July 29, 2008)
Consistent with the Subcommittee's ongoing interest in
exposing schemes involving tax evasion, on July 29, 2008, the
Subcommittee held a hearing on the problem of unpaid payroll
taxes. Payroll taxes require businesses to withhold certain
amounts from employee paychecks and remit those amounts to the
IRS to pay individual Social Security and Medicare taxes.
Businesses are also required to remit employer matching
amounts. At the hearing, the Subcommittee released a GAO
report, Tax Compliance: Businesses Owe Billions in Federal
Payroll Taxes (GAO-08-617), which had been prepared at the
request of the Subcommittee and which found that over 1.6
million businesses owed in excess of $58 billion in unpaid
Federal payroll taxes.
At the hearing, the Subcommittee heard from two witnesses.
The first witness was GAO which summarized its report. GAO
stated that the total amount of unpaid payroll taxes had grown
from $49 billion in 1998, to $59 billion in 2007, but estimated
that more than half of the debt was uncollectible. GAO
testified that much of the debt was attributable to repeat
offenders, as the number of businesses with over 5 years of
unpaid taxes had increased nearly three-fold, and the number
with over 10 years of unpaid taxes had increased five-fold. GAO
explained that, to collect the tax, the IRS had two primary
enforcement tools, filing liens against the business and filing
personal claims against the business' officers or owners, but
often failed to utilize these tools in a timely or effective
manner. GAO noted, for example, of the cases awaiting
assignment to an IRS agent, 80 percent did not have a tax lien
filed. In addition, of the individuals who were subject to a
personal claim, 43 percent never made a payment. GAO noted that
the failure to collect these payroll taxes gave tax-delinquent
businesses a competitive advantage over honest companies, and
also forced tax compliant taxpayers to pick up the tab.
The next witness was Linda Stiff, IRS Deputy Commissioner
for Services and Enforcement. She discussed the IRS'
enforcement efforts and future plans to collect payroll taxes.
She noted the collections problems posed by old debt and by
businesses that were bankrupt or out of business. She announced
the agency's intention to establish a new task force to better
focus enforcement efforts on payroll tax collection and launch
new research efforts to identify cost effective enforcement
strategies.
Senators Coleman and Levin made several recommendations to
strengthen payroll tax collection. They included developing an
expedited process to impose automatic tax liens and personal
penalties against businesses and business officers who are
repeat offenders; supporting the Levin-Coleman Tax Lien
Simplification Act, S. 1124, to establish an electronic tax
lien registry at the Federal level, which would save $570
million over 10 years; and establishing performance metrics to
measure payroll tax collection efforts.
N. Dividend Tax Abuse: How Offshore Entities Dodge Taxes on U.S. Stock
Dividends (September 11, 2008)
In continuation of its efforts to combat offshore tax
abuse, on September 11, 2008, the Subcommittee held a hearing
and released a staff report on how major U.S. financial
institutions have been helping offshore hedge funds and other
non-U.S. persons dodge payment of U.S. taxes on U.S. stock
dividends. The hearing showed how these financial institutions
enabled their offshore clients to use complex derivative and
stock loan transactions to recharacterize their taxable U.S.
stock dividends as allegedly tax-free dividend equivalents or
substitute dividend payments. According to the GAO, in 2003,
$42 billion in U.S. stock dividend payments were sent abroad,
but less than 5 percent, or $2 billion was paid as tax. The
general tax rate for non-U.S. stockholders is 30 percent,
unless their country of residence has a lower negotiated rate
with the United States, usually 15 percent, which indicates
that billions of dollars in tax revenue were being lost each
year due to dividend tax abuses. To illustrate how this was
happening, the report presented six case histories of large
U.S. financial institutions engaging in such ``dividend
enhancement'' practices. In addition, the report showed that
the offshore hedge funds benefiting from these practices were,
in large part, offshore in name only, while their main offices,
key decision makers, and investment professionals were located
in the United States.
The hearing took testimony from four panels of witnesses.
On the first panel, an international tax law expert, Professor
Reuven S. Avi-Yonah from the University of Michigan School of
Law, explained different dividend payment structures and how,
despite the equivalent financial character among them, they are
treated differently for tax purposes. He testified that, where
there are multiple ways to achieve the same economic result,
there is an open invitation for abuse by taxpayers to avoid
taxation.
The next panel featured witnesses from three offshore hedge
funds: Joseph M. Manogue, Treasurer of Maverick Capital, Ltd.;
Richard Potapchuck, Director of Treasury and Finance at
Highbridge Capital Management; and Gary Wolfe, Managing
Director of Angelo, Gordon and Co. All three acknowledged that
their hedge funds had engaged in derivative transactions and
stock loans to avoid payment of U.S. stock dividend taxes. Mr.
Manogue testified that Maverick Capital had engaged in tax-free
dividend transactions until 2007, when the financial
institutions with whom they did the transactions suspended
them, because the IRS was reviewing their legitimacy. Mr.
Potapchuck testified that if the 30 percent withholding tax
were to be applied to U.S. stock dividends, it would likely
diminish the volume of stock dividends paid to non-U.S.
investors who would shift to other tax-free dividend-paying
securities investments. Mr. Wolfe testified that the swap
transactions were carried out to maximize returns for
investors, and that the tax benefits associated with swaps for
non-U.S. investors were a significant factor in evaluating the
overall return. All three witnesses also acknowledged that
their offshore hedge funds had no employees or physical offices
in the Cayman Islands where they were registered, and instead
had all of their key decisionmakers in the United States.
The next panel featured representatives from three large
financial institutions engaged in tax-free dividend
transactions with non-U.S. investors: John DeRosa, Managing
Director and Global Tax Director at Lehman Brothers Inc.;
Matthew Berke, Managing Director and Global Head of Equity Risk
Management at Morgan Stanley and Co.; and Andrea Leung, Global
Head of Synthetic Equity Finance at Deutsche Bank AG. All three
testified that they believed their usage of swaps and stock
loans that referenced dividend amounts was in compliance with
U.S. tax laws. In their view, investors engaged in those
transactions in order to gain leverage, obtain operational and
other efficiencies, and execute strategies hidden from the
scrutiny of competitors. Mr. Berke also acknowledged that the
tax benefits were an attractive reason for engaging in the swap
transactions.
The final panel took testimony from the Hon. Douglas H.
Shulman, IRS Commissioner. Mr. Shulman acknowledged that the
IRS had observed swaps and stock loan transactions that were
not being conducted for bona fide business purposes, but failed
to issue guidance or take strong enforcement actions. He noted
that the IRS had recently initiated an extensive review of the
transactions to identify and put an end to abusive practices.
He also stated that IRS was working with the Treasury
Department to review, and modify if necessary, IRS Notice 97-
66, the primary guidance that permits investors to avoid
withholding on the payment of dividends in certain securities
lending deals, given that companies have been able to
circumvent the original purpose of the notice.
III. Legislative Activities During the 110th Congress
The Permanent Subcommittee on Investigations does not have
legislative authority, but because its investigations play an
important role in bringing issues to the attention of Congress
and the public, the Subcommittee's work frequently contributes
to the development of significant legislative initiatives. The
Subcommittee's activity during the 110th Congress was no
exception, with Subcommittee hearings and Members playing
prominent roles in the development of a number of legislative
initiatives.
A. Credit Card Accountability Responsibility and Disclosure Act (S.
3252)
On May 15, 2007, Senator Levin introduced S. 1395, the Stop
Unfair Practices in Credit Cards Act, to put an end to the
credit card abuses examined during the Subcommittee's hearings.
In 2008, Senator Chris Dodd, Chairman of the Committee on
Banking, Housing, and Urban Affairs, joined with Sen. Levin and
others to introduce an even stronger bill, S. 3252, the Credit
Card Accountability Responsibility and Disclosure Act. This
Dodd-Levin bill incorporated almost all of the provisions from
the Levin bill and added additional provisions from an earlier
Dodd bill, resulting in the strongest consumer protections of
any credit card reform bill in Congress.
Among other provisions, the Dodd-Levin bill would prohibit
interest charges on any portion of a credit card debt which the
card holder paid on time during a grace period; prohibit
interest rate hikes for cardholders who pay on time and meet
their credit card obligations; require increased interest rates
to apply only to future credit card debt, and not to debt
incurred prior to the increase; prohibit the charging of
interest on credit card transaction fees, such as late fees and
over-the-limit fees; prohibit the charging of repeated over-
the-limit fees for a single instance of exceeding a credit card
limit; require card issuers to offer consumers the option of
operating under a fixed credit limit that cannot be exceeded;
prohibit charging a fee to allow a credit card holder to make a
payment on a credit card debt, whether payment is by mail,
telephone, electronic transfer, or otherwise; and require
payments to be applied first to the credit card balance with
the highest rate of interest, and in a manner that would
minimize finance charges.
The bill was referred to the Banking Committee for further
consideration.
B. Stop Tax Haven Abuse Act (S. 681)
On February 17, 2007, Senators Levin, Coleman, and Obama
introduced the Stop Tax Haven Abuse Act, a comprehensive bill
to eliminate offshore tax haven and tax shelter abuses. This
legislation arises from Subcommittee's 4 years of investigation
into offshore tax havens, abusive tax shelters, and the
professionals who design, market, and implement these tax
dodges. The loss to the Treasury from offshore tax evasion
alone approaches an estimated $100 billion per year, including
$40 to $70 billion from individuals and another $30 to $50
billion from corporations engaging in offshore tax evasion.
Among other measures, the bill would strengthen penalties
on tax shelter promoters; authorize the Treasury to take
special measures against foreign jurisdictions and financial
institutions that impede U.S. tax enforcement; establish
rebuttable presumptions in tax enforcement cases that offshore
companies and trusts are controlled by the U.S. persons who
send or receive assets from them; and stop offshore trusts from
claiming they can buy jewelry, artwork, or real estate for use
by U.S. beneficiaries on a tax-free basis. It would also
strengthen detection of offshore misconduct by requiring U.S.
financial institutions to report certain offshore activities to
the IRS; and require hedge funds and company formation agents
to understand the identity of their offshore clients and report
suspicious activity to U.S. law enforcement.
In addition, Section 303 of the bill marked the first time
that legislation had been introduced in Congress to prohibit
the U.S. Patent and Trademark Office from issuing patents for
``inventions'' to avoid taxes. The Patent Office has already
issued numerous tax patents, and is considering hundreds more.
Unscrupulous tax shelter promoters could claim a patent
represents an official endorsement of an abusive tax product
and use the patent to generate income. Tax patents issued for
legitimate tax avoidance strategies could require taxpayers to
pay a royalty fee to minimize their taxes, even though all
persons ought to be able to use legal means to reduce their tax
burden. Companies could even patent a legal method to minimize
taxes and refuse to license the patent to competitors in order
to prevent them from lowering their operating costs. Such tax
patents could end up hindering productivity and competition. A
companion bill was introduced in the House (H.R. 2136), and a
prior bill was introduced in the last Congress (S. 2210). The
bill was referred to the Senate Finance Committee for further
consideration.
C. Tax Lien Simplification Act (S. 1124)
On April 17, 2007, Senators Levin and Coleman introduced S.
1124, the Tax Lien Simplification Act, to simplify and
modernize the Federal tax lien system. The bill would create an
electronic Federal tax lien registry on the Internet, available
to the public at no cost, replacing the current antiquated
system requiring Federal tax liens to be filed on paper in more
than 4,000 locations across the country. According to the IRS,
moving to this electronic registry would save taxpayers an
estimated $570 million over 10 years.
Tax liens are the principal means used by the IRS to
collect funds from tax delinquents. Tax lien notices must be
made public, and current law requires the IRS to file public
notices on paper in more than 4,000 local recording offices,
each with its own formatting requirements. An electronic
national tax lien registry would simplify and standardize the
filing process, reduce the incidence of lost and misfiled tax
liens, make it easier for taxpayers to review their liens and
fix errors, reduce staffing needs, allow the public to search
the registry through the Internet at no cost, and enable the
IRS to eliminate tax liens more quickly once they are paid. The
bill would give the Treasury 2 years to establish the registry,
but also allow continued use of the old system during a
transition period.
The bill was referred to the Finance Committee for further
consideration.
D. The Medicare Improvements for Patients and Providers Act (Public Law
110-275)
In response to a 2007 Subcommittee hearing revealing that
over 30,000 Medicare health care service providers owed unpaid
taxes exceeding $1 billion, on May, 3, 2007, Senators Coleman
and Levin introduced S. 1307, the Medicare Provider
Accountability Act. The Subcommittee hearing disclosed that,
despite a legal requirement to do so, the Federal Government's
lead agency in the Medicare program, the Centers for Medicare
and Medicaid Services (CMS), had failed to subject Medicare
payments to the Federal Payment Levy Program, which screens
Federal payments and, if the recipient is tax-delinquent, takes
a portion of the payment to reduce the recipient's outstanding
tax debt. The Coleman-Levin bill sought to require CMS to meet
certain deadlines for bringing Medicare payments into the levy
program.
In 2008, Congress enacted the Medicare Improvements for
Patients and Providers Act to avert a payment reduction to
physicians in Medicare. To help pay for the costs of this
legislation, the bill included a provision based upon the
Coleman-Levin bill. The enacted law requires Medicare, over a
4-year period, to establish systems to apply the tax levy
program to all Medicare payments, screen those payments to
determine whether the recipients owe U.S. taxes, and retain a
portion of the payments to be applied to recipients'
outstanding tax debt. The resulting tax levies are expected to
produce at least $335 million in tax revenues over 10 years.
E. Medicaid Levy Enhancement Act (S. 2843)
On April 10, 2008, in response to a November 2007
Subcommittee hearing revealing that over 30,000 Medicaid health
care providers owed more than $1 billion in unpaid Federal
taxes, Senators Coleman and Levin introduced S. 2843, the
Medicaid Levy Enhancement Act.
The Subcommittee hearing disclosed that Medicaid payments,
which contain a mixture of Federal and State dollars, are
currently not subject to the Federal Payment Levy Program which
screens Federal payments and, if the recipient is tax-
delinquent, takes a portion of the payment to reduce the
recipient's outstanding Federal tax debt. At the hearing, GAO
testified that if tax levies had been applied to Medicaid
payments in the seven States reviewed for the Subcommittee, the
Federal Government could have collected between $70 and $160
million in unpaid taxes in 2006 alone.
The Coleman-Levin bill would amend the Federal tax levy law
to authorize tax levies on Medicaid payments to health care
providers. The bill was referred to the Committee on Finance
for further consideration.
F. Ending Corporate Tax Favors For Stock Options Act (S. 2116)
On September 28, 2007, after a Subcommittee investigation
and hearing showing that, each year, corporations are claiming
tens of billions of dollars in stock option tax deductions in
excess of the stock option expenses shown on their books,
Senator Levin introduced S. 2116, the Ending Corporate Tax
Favors For Stock Options Act, to limit stock option tax
deductions to the amounts recorded on company books as an
expense.
The bill would amend Section 83 of the tax code to require
that corporate tax deductions for stock option compensation
match, and not exceed, the stock option expenses shown on a
corporation's financial statements. It would allow corporations
to deduct stock option compensation in the same year it is
recorded on the company books, without waiting for the options
to be exercised; ensure research tax credits use the same stock
option deduction when computing the ``wages'' eligible for that
tax credit; and create a transition rule to phase in the new
tax treatment. The bill would also eliminate favored treatment
of corporate stock options under Section 162(m) of the tax code
by making executive stock option deductions subject to that
section's existing $1 million cap on allowable corporate tax
deductions for compensation paid to the top executives of
publicly held corporations.
The bill was referred to the Finance Committee for further
consideration.
G. Close the Enron Loophole Act (S. 2058) and 2008 Farm Bill (Public
Law 110-246)
On September 17, 2007, Senator Levin introduced S. 2058,
the Close the Enron Loophole Act, to eliminate an existing
statutory provision that bars government regulation and
oversight of key energy commodity exchanges. The legislation
was a response to a Subcommittee investigation showing that
commodity trades on unregulated markets like the
Intercontinental Exchange (ICE) were affecting energy prices on
regulated markets like the New York Mercantile Exchange
(NYMEX), and that the lack of oversight invited price
manipulation, excessive speculation, and inflated energy prices
for U.S. consumers and businesses.
The bill's key provision would close the so-called ``Enron
loophole,'' a measure that was inserted at the behest of Enron
and other large energy traders into the Commodity Futures
Modernization Act of 2000 and enacted into law. Since 2000, the
Enron loophole in Section 2(h)(3) of the Commodity Exchange Act
has exempted from government oversight the electronic trading
of energy commodities by large traders. Using as an example the
Amaranth case history in which a single hedge fund dominated
the 2006 U.S. natural gas market and inflated natural gas
prices, the Subcommittee investigation demonstrated how the
exemption created by the Enron loophole made it impossible for
government regulators to prevent traders from distorting energy
prices through large trades on unregulated exchanges. The bill
would close the loophole and require any trading facility that
functions as an energy exchange to be subject to CFTC oversight
to prevent price manipulation and excessive speculation.
The bill would also require the currently unregulated
energy exchanges to comply with the same standards as the
regulated futures exchanges, like NYMEX; require them to
establish trading limits to prevent price manipulation and
excessive speculation; provide a comprehensive new definition
of energy commodities; and impose large-trader reporting
requirements for trades of U.S. energy commodities on foreign
exchanges so that U.S. regulators could monitor those trades
for price manipulation and excessive speculation.
In May 2008, provisions based upon the Levin bill and the
Subcommittee's investigative work were included in the 2008
farm bill, H.R. 6124, and enacted into law. These provisions,
in Sections 13201-04 of the farm bill, effectively closed the
Enron loophole, by making commodity trades that affect prices
subject to CFTC regulation and oversight when made on an exempt
electronic exchange, and by requiring the electronic exchanges
that handle such trades to comply with the same key operating
standards as regulated future exchanges.
H. Strategic Petroleum Reserve Fill Suspension and Consumer Protection
Act (S. 2598/H.R. 6022, Public Law 110-232)
On February 6, 2008, Senators Dorgan, Bingaman, Levin,
Collins, and others introduced S. 2598, the Strategic Petroleum
Reserve Fill Suspension and Consumer Protection Act. In 2003,
at Senator Levin's request, the Subcommittee issued a Minority
staff report showing that an Administration policy of buying
oil for the Strategic Petroleum Reserve (SPR) regardless of
price was taking millions of barrels of oil off the market for
the SPR, reducing private sector supplies, and pushing oil
prices higher.
On December 11, 2007, the Subcommittee held a joint hearing
with the Subcommittee on Energy of the Committee on Energy and
Natural Resources on rising crude oil prices and, again, raised
questions about the Administration's SPR fill policy.
In 2007 and 2008, crude oil prices had become very volatile
and reached a record high of $126 per barrel, which led, in
turn, to record high prices for fuels produced from crude oil,
including gasoline, heating oil, diesel fuel, and jet fuel.
These rising prices created new concerns about buying higher-
priced oil for the SPR and placing additional pressure on
private sector supplies and U.S. oil prices. To relieve this
pressure, the bill proposed a moratorium on filling the SPR
until U.S. oil prices dropped below a specified level.
On May 19, 2008, a similar companion House bill, H.R. 6022,
was approved by Congress and became Public Law 110-232. The
moratorium placed on SPR oil purchases remained in place for
the rest of the year.
I. Oil Trading Transparency Act (S. 2995), and Close the London
Loophole Act (S. 3129)
In mid-2008, Senator Levin introduced two additional bills
with Senator Feinstein to address energy price manipulation and
excessive speculation problems that were not resolved by the
energy commodity provisions in the 2008 farm bill. Both of
these bills focused on the issue of U.S. energy commodities,
such as futures to buy or sell U.S.-produced crude oil and
gasoline, that were traded on foreign exchanges outside the
regulatory reach of the CFTC.
The Subcommittee's investigative work had found that U.S.
crude oil and gasoline futures were traded primarily on two
exchanges, one in New York and the other in London. While the
CFTC had clear authority to stop trading abuses on the New York
exchange, its authority was less clear regarding U.S. energy
futures traded on the London exchange. In addition, the
Subcommittee's work showed that, under existing law, the CFTC
obtained the information it needed to detect price manipulation
and excessive speculation involving U.S. futures on foreign
exchanges only through voluntary data-sharing agreements
arranged with the relevant foreign regulators. In many
instances, the CFTC could take an enforcement action against a
U.S. trader on a foreign exchange to prevent manipulation or
excessive speculation only with the cooperation and consent of
the foreign regulator. The Levin-Feinstein bills were designed
to close this ``London loophole'' by ensuring the CFTC had the
same authority to detect, prevent, and punish price
manipulation and excessive speculation for traders in the
United States who traded energy commodities on foreign
exchanges as the CFTC had for traders who traded on U.S.
exchanges.
On May 8, 2008, the first Levin-Feinstein bill, S. 2995,
the Oil Trading Transparency Act, was introduced. This bill
sought to require the CFTC to ensure that any foreign exchange
operating a trading terminal in the United States for the
trading of a U.S. energy commodity met two regulatory
requirements that already applied to U.S. exchanges: (1)
imposition of speculative trading limits to prevent price
manipulation and excessive speculation; and (2) daily
publication of trading information from the exchange to ensure
market transparency. The bill would also require the CFTC to
obtain information from the foreign exchange to enable it to
determine how much trading in U.S. energy commodities was due
to speculation.
A month later, on June 12, 2008, the second Levin-Feinstein
bill, S. 3129, the Close the London Loophole Act, was
introduced. This legislation was more extensive than the first
bill. In addition to requiring the CFTC to obtain agreements
with foreign exchanges to impose position limits on U.S. energy
commodities trades and provide daily trading information, the
bill sought to strengthen the CFTC's oversight and enforcement
capabilities by providing the CFTC with clear legal authority
over U.S. traders directing trades through foreign exchanges.
For example, the bill would make it clear that the CFTC had the
authority to impose its own recordkeeping requirements on U.S.
traders conducting trades on foreign exchanges, to direct those
U.S. traders to reduce their holdings on a foreign exchange
when those holdings exceeded applicable position limits, and to
prosecute U.S. persons who manipulate or attempt to manipulate
the price of a commodity in interstate commerce through trading
on a foreign exchange.
The two Levin-Feinstein bills sought to ensure that the
U.S. Government had the information, authority, and enforcement
tools needed to protect American markets from price
manipulation and excessive speculation carried out through
foreign exchanges. They also sought to ensure that U.S. energy
traders would no longer be able to avoid CFTC oversight and
enforcement authority by routing their trades through a foreign
exchange. Both bills were referred to the Committee on
Agriculture, Nutrition, and Forestry for further consideration.
J. Over-The-Counter Speculation Act (S. 3255)
On July 10, 2008, Senators Levin and Feinstein introduced
S. 3255, the Over-The-Counter Speculation Act, to give the CFTC
oversight authority to stop price manipulation and excessive
speculation in the currently unregulated over-the-counter (OTC)
markets for commodity trades.
The 2008 farm bill later enacted into law included
provisions to impose CFTC regulation and oversight for the
first time on electronic exchanges used by large commodity
traders. Those provisions did not, however, apply to the rest
of the OTC market, which involves commodity trades conducted
through voice brokers, swap dealers, direct party-to-party
negotiations, or other non-electronic means. Many of these OTC
trades involve swap contracts that reference specified
commodity prices and, due to the swaps close resemblance to
futures contracts, have raised concerns that they might affect
commodity prices on regulated futures markets.
The bill would authorize the CFTC for the first time to
gather and analyze OTC trading information, conduct inquiries
into particular OTC trades, and, if appropriate, require
traders to reduce their holdings to prevent price manipulation
or excessive speculation. The bill would, in effect, enable the
CFTC to police all types of OTC trades in a manner similar to
futures trades, and ensure that traders could not avoid CFTC
reporting requirements or trading limits by using swaps in the
unregulated OTC market instead of futures on a regulated
exchange.
The bill was referred to the Committee on Agriculture,
Nutrition, and Forestry for further consideration.
K. Prevent Excessive Speculation Act (S. 3577)
On September 25, 2008, Senator Levin introduced S. 3577,
the Prevent Excessive Speculation Act, together with Senator
Harkin, Chairman of the Agriculture Committee, and Senator
Bingaman, Chairman of the Energy Committee. This legislation
represented their collective efforts to present the strongest
and most workable measures to prevent excessive speculation and
price manipulation in U.S. energy markets. The bill
incorporated a number of measures from prior Levin-Feinstein
bills and other legislation, while also adding new provisions.
The bill's objectives were to close loopholes in the U.S.
commodities laws that impeded U.S. oversight of U.S. energy
trades on foreign exchanges and in the OTC markets; ensure that
large commodity traders could not use those markets to avoid
CFTC oversight or trading limits; and strengthen disclosure,
oversight, and enforcement in all aspects of U.S. commodity
markets to restore the financial regulation crucial to
protecting American consumers, businesses, and economy from
further energy and other pricing shocks.
The bill proposed four sets of provisions. First, it would
require the CFTC, rather than individual exchanges, to set
position limits on the amount of futures contracts any trader
can hold on regulated exchanges to prevent excessive
speculation and price manipulation. Second, it would close the
``London loophole'' by giving the CFTC the same authority to
police traders in the United States who trade U.S. futures
contracts on a foreign exchange as it has to police trades on
U.S. exchanges, and by requiring foreign exchanges that want to
install trading terminals in the United States to impose
comparable position limits as the CFTC imposes on domestic
exchanges to prevent excessive speculation and price
manipulation. Third, the bill would close the ``swaps
loophole'' by requiring traders in the over-the-counter energy
markets to report large trades to the CFTC, and it would
authorize the CFTC to set trading limits in the OTC markets to
prevent excessive speculation and price manipulation. Finally,
it would require the CFTC to revise the standards that allow
certain traders who use futures markets to hedge their holdings
so that those traders are bound by the same speculation limits
that apply to everyone else.
The Levin-Harken-Bingaman bill was referred to the
Committee on Agriculture, Nutrition, and Forestry for further
consideration.
L. Incorporation Transparency and Law Enforcement Assistance Act (S.
2956)
On May 1, 2008, Senators Levin, Coleman, and Obama
introduced S. 2956, the Incorporation Transparency and Law
Enforcement Assistance Act, to address inadequate State
incorporation practices that allow criminals to form new U.S.
corporations without disclosing their identities and use those
corporations to commit crimes, including terrorism, drug
trafficking, money laundering, tax evasion, financial fraud,
and corruption.
The legislation was based upon a 2006 Subcommittee
investigation as well as two GAO reports requested by the
Subcommittee examining the problem of U.S. corporations with
hidden owners. The Subcommittee investigation found that the 50
States establish nearly two million U.S. companies each year
without knowing who is behind them, inviting money laundering,
tax evasion and other misuse of U.S. companies. During the
Subcommittee's 2006 hearing, the Department of Justice, IRS,
and Department of Treasury's Financial Crimes Enforcement
Network each testified that the failure of States to collect
beneficial ownership information for the legal entities they
form has impeded Federal efforts to investigate and prosecute
terrorism and other crimes.
In response to the concerns expressed at the hearing, the
National Association of Secretaries of State developed a
proposal to strengthen State incorporation practices, but it
fell far short of the needed reforms. Because the States
appeared unable to resolve the problem on their own, S. 2956
was introduced to set minimum standards for the States to
acquire beneficial ownership information for the corporations
or limited liability companies they form, and to provide that
information to law enforcement in response to a subpoena or
summons. The bill was referred to the Committee on Homeland
Security and Governmental Affairs for further consideration.
IV. Reports, Prints, and Studies
A. Excessive Speculation in the Natural Gas Markets, June 25, 2007
(Report Prepared by the Majority and Minority Staffs and
released in conjunction with the Subcommittee Hearing on June
25, 2007) (Printed in June 25th and July 9th hearing record.)
Since 2001, the Subcommittee has been examining the
structure, operation, and pricing mechanisms of U.S. energy
markets. In June 2006, the Subcommittee issued a report, The
Role of Market Speculation in Rising Oil and Gas Prices: A Need
to Put the Cop Back on the Beat analyzing the extent to which
the increasing amount of financial speculation in energy
markets had contributed to the steep rise in energy prices over
the past few years. The report concluded, ``Speculation has
contributed to rising U.S. energy prices,'' but also that
``gaps in available market data'' made quantification of the
speculative component problematic.
Shortly after the Subcommittee issued its report in 2006,
the natural gas market entered a period of extreme price
volatility punctuated by the collapse in September 2006 of
Amaranth LLC (``Amaranth''), one of the largest hedge funds in
the natural gas market. From the last week in August to the
middle of September 2006, Amaranth's natural gas positions lost
over $2 billion in value, precipitating the liquidation of the
entire portfolio of the $8 billion fund.
The collapse followed a period in late summer when natural
gas prices began falling. For example, the price of the NYMEX
futures contract to deliver natural gas in October 2006 fell
from a high of $8.45 per MMBtu in late July to just under $4.80
per MMBtu in September, the lowest level for that contract in
over 2 years. Throughout this period, despite the price change,
the market fundamentals of supply and demand were largely
unchanged. Natural gas supplies were plentiful, and the amount
of natural gas in storage remained higher than average
throughout the summer and into the early fall.
In October 2006, the Subcommittee began its investigation
into the falling prices for natural gas and Amaranth's
collapse. The Subcommittee analyzed millions of natural gas
transactions from trading records obtained from NYMEX and ICE,
the two principal exchanges for energy commodities, and from
Amaranth and other traders. In addition, the Subcommittee
conducted numerous interviews of natural gas market
participants, including natural gas traders, producers,
suppliers, and hedge fund managers, as well as exchange
officials, regulators, and energy market experts. NYMEX, ICE,
Amaranth and many traders cooperated with detailed inquiries.
The Subcommittee also reviewed commodity market statutes and
regulations, and researched a variety of legal issues.
This investigation culminated in a hearing and the release
of a 400-page bipartisan staff report on June 25, 2007. The
trading records examined by the Subcommittee disclosed that,
from early 2006 until its September collapse, Amaranth had
dominated trading in the U.S. natural gas financial markets.
Amaranth had held as many as 100,000 natural gas contracts in a
single month, representing 1 trillion cubic feet of natural
gas, or 5 percent of the natural gas used in the entire United
States in a year. At times Amaranth controlled 40 percent of
all of the outstanding contracts in the NYMEX exchange for
natural gas in the winter season (October 2006 through March
2007), including as much as 75 percent of the outstanding
contracts to deliver natural gas in November 2006.
The report found that Amaranth's large positions and trades
caused significant price movements in key natural gas futures
prices and price relationships. For example, Amaranth's
purchases of contracts to deliver natural gas in the winter
months, in conjunction with Amaranth's sales of natural gas
contracts for delivery in the summer months, drove winter
prices far above summer prices. These differences between
winter and summer prices, called ``price spreads,'' were far
higher in 2006 than in previous years--until the collapse of
Amaranth, when the price spreads returned to more normal
levels. On several specific dates, Amaranth's massive trades
were responsible for large jumps in the price differences
between the futures contracts for March and April 2007. Traders
interviewed by the Subcommittee said that during the spring and
summer of 2006 the differences between winter and summer prices
were ``clearly out-of-whack,'' at ``ridiculous'' levels, and
unjustified by supply or demand.
The report found that many market participants were harmed
by Amaranth's massive speculative trading. For example,
utilities that provide gas-powered electricity or heating to
homes, schools, and hospitals, and some industries that use
natural gas in manufacturing paid inflated prices. Many of
their costs were passed onto consumers.
The report also found that the current regulatory system
was unable to prevent Amaranth's excessive speculation in the
2006 natural gas market. Under current law, NYMEX is required
to monitor the positions of its traders to determine whether a
trader's positions are too large. If a trader's position
exceeds pre-set ``accountability levels,'' the exchange may
require a trader to reduce its positions. The Amaranth case
history demonstrated two critical flaws. First, NYMEX had no
routine access to information about a trader's positions on
ICE, the other principal commodity exchange, in determining
whether a trader's positions were too large. It was therefore
impossible under the current system for NYMEX to have a
complete and accurate view of a trader's position in
determining whether it was too large.
Second, the case history showed that, even if NYMEX ordered
a trader to reduce its positions on NYMEX, that trader could
simply shift its positions to ICE where no limits applied. The
case history showed that is precisely what Amaranth did after
NYMEX finally told Amaranth, in August 2006, to reduce its
positions in two contracts nearing expiration. NYMEX's
instructions to Amaranth did nothing to reduce Amaranth's size,
but simply caused Amaranth's trading to move from a regulated
market to an unregulated one.
The evidence provided in the report showed that NYMEX and
ICE were functionally equivalent markets. Natural gas traders
used both markets, employing coordinated trading strategies. In
many instances the trading volumes on ICE were comparable to or
greater than the volumes on NYMEX. Traders used the natural gas
contract on NYMEX, called a futures contract, in the same way
they used the natural gas contract on ICE, called a swap, for
risk management and economic purposes. The data also showed
that prices on one exchange affected the prices on the other.
Given their equivalence, the report concluded there was no
sound basis for one exchange to be regulated and the other not.
The report also explained that the disparity in regulation
between NYMEX and ICE was a result of the so-called ``Enron
Loophole'' in the Commodity Exchange Act. The Enron Loophole,
which was inserted into the law in 2000 at the request of Enron
and others, exempts electronic energy exchanges such as ICE
from CFTC oversight and regulation. Unlike NYMEX, there are no
limits on the trading on ICE, and no routine government
oversight. The Amaranth case history demonstrated that the
disparity in regulation of the two markets prevented the CFTC
and the exchanges from fully analyzing market transactions,
understanding trading patterns, and compiling accurate pictures
of trader positions and market concentration; it required them
to make regulatory judgments on the basis of incomplete and
inaccurate information; and it impeded their authority to
detect, prevent, and punish market manipulation and excessive
speculation.
The report's landmark analysis of NYMEX and ICE trades
demonstrated the interconnectedness of the two markets, and the
inherent problems with regulating one of them but not the
other. To repair the broken regulatory system, the report
offered a number of recommendations. First, the report
recommended that Congress close the Enron Loophole to require
unregulated exchanges, such as ICE, to comply with the same
statutory obligations as regulated markets, such as NYMEX. The
report also recommended that the CFTC, if given additional
legal authority, monitor both ICE and NYMEX and conduct
oversight of aggregate trading positions in both markets.
Third, the report recommended that Congress increase the CFTC
budget and authorize user fees on the commodity traders to
provide the additional staff and technology needed to conduct
stronger oversight and put a stop to price manipulation and
excessive speculation in the commodity markets.
B. Dirty Bomb Vulnerabilities, July 12, 2007 (Report Prepared by the
Majority and Minority Staffs and released in conjunction with
the Subcommittee's Hearing on July 12, 2007) (Printed in July
12th hearing record.)
On July 12, 2007, as part of its ongoing examination of
nuclear and radiological threats to the United States, the
Subcommittee released a bipartisan report prepared by the
Majority and Minority staffs summarizing the Subcommittee's
investigation into certain vulnerabilities related to the
materials licensing policies and procedures of the Nuclear
Regulatory Commission (NRC) and offering several
recommendations to strengthen NRC safeguards. This report was
released in conjunction with a Subcommittee hearing on the same
date.
The report focused on the process by which parties obtain
NRC materials licenses, the vulnerability of NRC materials
licenses to counterfeiting and fraud, and several long-standing
weaknesses in the NRC licensing procedures. The report also
described a GAO effort, undertaken at the request of the
Subcommittee, to test whether the NRC's licensing procedures
were sufficient to guard against the aggregation and misuse of
relatively low-grade radioactive materials, including efforts
to include these materials in a so-called ``dirty bomb''--a
conventional bomb used to disburse radioactive materials.
The report explained that the NRC and certain ``Agreement
States'' to which the NRC has delegated authority are
responsible for regulating the possession and use of low-grade
radiological materials within U.S. borders. The report detailed
the procedures used by the NRC and Agreement States to issue
licenses allowing applicants to possess and use certain
radiological materials available in a variety of medical and
industrial fields. The report also described how GAO used
aliases and a sham corporation to test the effectiveness of
those procedures. The sham corporation applied simultaneously
for two materials licenses--one through an Agreement State and
one from the NRC. Because the Agreement State, as part of its
licensing process, insisted on interviews with company
officials and a physical tour of the company's facilities, GAO
withdrew its application. In contrast, because the NRC opted
not to conduct a site visit or in-person interviews with the
sham company's officials, GAO's sham corporation was able in
less than 30 days to obtain an official NRC license to take
possession of radiological materials. The report described how
GAO then used off-the-shelf computer software to electronically
scan the NRC license, create a near-identical facsimile, and
use that counterfeit license to contract with two different
companies to purchase radiological devices. The report showed
how GAO used the counterfeit license to circumvent restrictions
on the quantity of radioactive materials it was permitted to
purchase, and concluded that GAO could have purchased enough
radioactive materials to meet the NRC's definition of a
``dangerous'' quantity--enough to build a dirty bomb.
The report also detailed past reports from GAO, the NRC
Inspector General, and this Subcommittee which identified
problems and made recommendations to strengthen the NRC
licensing procedures to prevent abuses. The report analyzed the
NRC's response to those recommendations as well as ongoing
licensing vulnerabilities. The report offered several
recommendations to further strengthen NRC licensing procedures,
including urging the NRC to: (1) reevaluate the apparent good-
faith presumption that pervades its licensing process; (2)
regulate Category 3 sources more stringently by physically
inspecting applicants' facilities before the issuance of a
Category 3 materials license, and considering including
Category 3 sources in the proposed National Source Tracking
System; and (3) acting quickly to establish a Web-Based
Licensing System to ensure that source materials can be
obtained only in authorized amounts by legitimate users.
In response to the Subcommittee's hearing and report, the
NRC proposed performing a retrospective examination of certain
licenses issued by the NRC to verify that the licensees were
legitimate; re-evaluating NRC licensing procedures and
guidance; and examining options to combat counterfeit licenses;
and reevaluating security measures. The NRC also established an
``Independent External Review Panel to Identify Vulnerabilities
in the NRC's Materials Licensing Program,'' a ``Materials
Program Working Group,'' and a ``Pre-Licensing Guidance Working
Group.'' The Independent Review Panel and NRC staff embraced
virtually all of the report's recommendations. Most notably,
the NRC recognized the need to suspend its ``good faith
presumption'' that new applicants seeking radioactive materials
were honest and hasten the implementation of a National Source
Tracking System and a Web-Based Licensing System.
C. United Nations Development Program: A Case Study of North Korea,
January 24, 2008 (Report Prepared by the Majority and Minority
Staffs and released in conjunction with the Subcommittee's
Hearing on January 24, 2008) (Printed in January 24th hearing
record.)
Since 2004, the Subcommittee has conducted a bipartisan
investigation into evidence of waste, fraud, and mismanagement
in United Nations programs and operations. The first phase of
that investigation examined the United Nations Oil-for-Food
Program and resulted in four Subcommittee hearings and five
staff reports disclosing widespread problems with that program.
In 2007, the Subcommittee commenced an examination into
allegations of mismanagement and misconduct in the operations
of the United Nations Development Program (UNDP) in the
Democratic People's Republic of Korea (DPRK). On January 24,
2008, the Subcommittee released a bipartisan staff report
summarizing its investigation. That report was released in
conjunction with a Subcommittee hearing on the same day.
The report contained a number of findings of fact and
recommendations. It found, for example, that the UNDP had
operated in North Korea with inappropriate staffing,
questionable use of foreign currency instead of local currency,
and insufficient administrative and fiscal controls. The report
found that the UNDP's DPRK office was staffed in large part
with North Korean nationals who were selected by the DPRK,
contrary to UNDP policy; and that the UNDP had paid the
salaries of local staff directly to the North Korean government
without ensuring that the monies were disbursed to the workers
and despite suspicions that the DPRK was, in the words of one
UNDP official, ``skimming'' money from the payments. The report
also found that the UNDP paid salaries and other expenses in
convertible currencies, such as U.S. Dollars or Euros, rather
than in the local currency, contrary to UNDP's best practices;
and UNDP was allowed to conduct on-site project visits only
with prior notice and in the company of North Korean officials,
again contrary to UNDP's best practices.
In addition, a Subcommittee review of a UNDP internal audit
revealed that nearly half of the UNDP projects in North Korea
were conducted under a National Execution Strategy that
ostensibly required direct payments to the host government for
the implementation of UNDP projects. The Subcommittee learned,
however, that by agreement with North Korea, UNDP maintained
control of most of the projects' financing and management. UNDP
officials explained to the Subcommittee that, by directly
controlling funds that were ostensibly slated to be managed
nationally, UNDP accomplished two objectives: it respected
sensitivities about national sovereignty and formal control
over projects within a country's borders, and it executed the
projects using UNDP management and controls. In the case of the
UNDP program in North Korea, however, this strategy also led to
confusion over the amount of direct payments actually made to
North Korea. In sum, UNDP operations in North Korea were
carried out under significant constraints that undermined its
standard administrative, fiscal, and program controls.
The report also showed how, in 2002, the DPRK government
had used its relationship with the United Nations to execute
deceptive financial transactions, by moving over $2.7 million
of its own funds from Pyongyang to DPRK diplomatic missions
abroad through a bank account intended to be used solely for
UNDP activities and by referencing UNDP in the wire transfer
documentation. UNDP has stated that the wire transfers were
wholly unrelated to its development projects, and North Korean
officials have confirmed that the funds originated with the
DPRK Ministry of Foreign Affairs and were not related to the
UNDP. North Korean officials explained to the Subcommittee that
these transfers occurred soon after President George Bush's
2002 State of the Union address in which he described North
Korea as part of an ``axis of evil,'' that they expected
sanctions against their country; and used the UNDP-related
account as a more secure channel to fund their embassies
abroad. The report also found that the UNDP had transferred
U.N. funds to a company that, according to a letter from the
U.S. State Department to UNDP, had ties to an entity involved
in DPRK weapons activity.
Finally, the report found that, by preventing access to its
audits and not submitting to the jurisdiction of the U.N.
Ethics Office, the UNDP had impeded reasonable oversight and
undermined its whistleblower protections. The UNDP had
commissioned four audits of its North Korean operations in
1999, 2001, 2004, and 2007. Problems were identified in all
four. The first three audits were nonpublic and, in accordance
with UNDP policy, unavailable for review even by nations
serving on the UNDP Executive Board. After repeated requests,
UNDP made an exception to this policy and, in 2007, showed the
audit reports to the U.S. Mission to the United Nations, whose
personnel were allowed to read but not copy them. The
Subcommittee obtained copies from other sources and found the
audits to be of great assistance in examining UNDP operations
in North Korea. In addition, the Subcommittee spoke with Artjon
Shkurtaj, former Operations Manager of the UNDP office in
Pyongyang, who had raised concerns about management and
operational deficiencies. After raising these concerns, Mr.
Shkurtaj's UNDP employment contract was not renewed. He filed a
complaint with the U.N. Ethics Office claiming retaliation. The
U.N. Ethics Office determined that, although Mr. Shkurtaj had
established ``a prima facie case of retaliation,'' it lacked
jurisdiction to decide his claim and the UNDP declined a
request to voluntarily submit the Shkurtaj matter for a U.N.
Ethics Office review. The report found that these actions had
undermined confidence among U.N. employees that U.N.
whistleblowers who speak out about U.N. mismanagement would be
protected from retribution. In November 2007, the U.N.
Secretary General issued a bulletin requiring each U.N. agency
to establish its own ethics office or submit to the
jurisdiction of the U.N. Ethics Office within the Secretariat.
The report offered several recommendations to strengthen
UNDP management. First, the report recommended that the UNDP
provide U.N. member states with unfettered access to UNDP audit
reports. The report recommended that UNDP approve a pending
proposal to grant routine access to UNDP Executive Board
members to UNDP audit reports, and broaden the proposal to
allow access to past audit reports, photocopying of the
reports, and release of audit information to the public, absent
exceptional circumstances. Second, the report recommended that
the UNDP ensure that whistleblowers do not face retaliation for
disclosing improper conduct. Third, the report recommended that
the UNDP take steps to ensure that its name and resources are
not used as cover for non-U.N. activities. In particular, UNDP
should require host countries to establish a bank account
designated for exclusive use on UNDP development projects,
prohibit the deposit of any other funds in the account, and
mandate, as a condition precedent for the receipt of
development aid, that the host country designate UNDP as a
secondary account signatory and authorize the financial
institution to grant UNDP access to all account documentation
so that UNDP can monitor the account activity. Finally, the
report recommended that, prior to making payments to a vendor,
UNDP take steps to ensure the vendor is not associated with
illicit activity, including by checking U.N. lists of suspect
entities. The report also recommended that Congress and the
U.S. State Department press for each of the suggested reforms.
D. Medicare Vulnerabilities: Payments for Claims Tied to Deceased
Doctors, July 9, 2008 (Report Prepared by the Majority and
Minority Staffs and released in conjunction with the
Subcommittee's Hearing on July 9, 2008) (Printed in July 9th
hearing record.)
As part of its continuing efforts to uncover waste, fraud,
and abuse in the Medicare and Medicaid programs, on July 9,
2008, the Subcommittee released a bipartisan staff report on
the payment by Medicare of durable medical equipment (DME)
claims using identification numbers belonging to deceased
physicians. Using Medicare data from 2000 to 2007, the report
estimated that nearly half a million Medicare payments,
totaling at least $76 million, had been provided to medical
equipment suppliers submitting DME claims that used identifiers
for at least 17,000 deceased doctors, which is about half of
the deceased doctor population. The Subcommittee held a hearing
on the same day.
The report explained that Medicare regulations require DME
claims to contain certain information in order to qualify for
payment, including the identification number of the prescribing
medical provider. That identifier, until recently, was called
the Unique Physician Identification Number (UPIN). In 2001, the
Inspector General (IG) of the U.S. Department of Health and
Human Services (HHS) issued a report alerting the Centers for
Medicare and Medicaid Services (CMS) to failures in the UPIN
system after finding that, in 1999 alone, over $90 million had
been paid for medical equipment claims with invalid UPINs. In
response, in 2002, CMS instructed the contractors that
maintained the UPIN registry to review the UPIN database,
eliminate UPINs for deceased physicians, and keep the registry
updated going forward. The contractors were also told to modify
the claims process to bar payment of claims with invalid UPINs.
CMS reported to the HHS IG that the needed UPIN reforms had
been completed, but neither CMS nor its contractors ever tested
them to ensure they worked. The Subcommittee's investigation
showed that, despite the 2002 reforms, CMS continued to pay
millions of dollars of Medicare claims referencing UPINs for
deceased physicians.
The report summarized the Subcommittee's investigation, and
offered a number of findings and recommendations. The report
estimated that, from 2000 to 2007, Medicare paid between $76
million and $92 million for hundreds of thousands of DME claims
that contained identification numbers assigned to an estimated
16,500 to 18,200 deceased physicians. About 51,000 of those
claims, or 16 percent of the total, valued at roughly $4
million, contained UPINs for doctors who had died ten or more
years before the service date on the claims. The report cited
one instance in which a UPIN belonging to a deceased physician
in Florida was used for 484 claims between November 2005 and
November 2006, totaling more than $544,000, even though the
corresponding physician had died in 1999. In another instance,
the UPIN assigned to a doctor who died in 2001, was used on
more than 3,800 claims submitted between 2002 and 2007,
resulting in Medicare payments of more than $354,000.
The report noted that these problems were not new to CMS,
which had been alerted to them in the HHS IG's 2001 report. The
report found, however, that the 2002 procedures put into place
by CMS to ensure that DME claims with UPINs of deceased
physicians would be rejected, were ineffective in resolving the
problem, and HHS and CMS personnel failed to perform the
reviews or audits needed to ensure the procedures were working.
In fact, 63 percent of the claims identified by the
Subcommittee as using deceased physician UPINs were paid with
dates of service after April 1, 2002, the date after which
Medicare was supposed to reject such claims. The report also
found that, as of May 2008, the UPINs of an estimated 2,000 to
2,900 deceased physicians remained active, and the continuing
inability of CMS payment systems to reject claims containing
deceased physician identifiers rendered Medicare vulnerable on
a continuing basis to millions of dollars in improper claims
each year.
The report offered several recommendations to stop the
abuses. First, it recommended that CMS strengthen its
procedures to deactivate physician identifier numbers after a
physician died, and develop a quality control program to ensure
those deactivations are taking place within a specified period
of time after CMS receives notice of a physician's death, such
as 90 days. Second, the report recommended initiating periodic
audits of the Medicare physician registry to test whether
identifiers assigned to deceased physicians have been
deactivated and of Medicare payment records to test whether
claims containing deceased physician identifiers were rejected.
Third, the report recommended that CMS consider instituting
additional procedures and audits to ensure the prompt
deactivation of identifiers assigned to Medicare service
providers who have stopped providing services for other reasons
than death, such as licensure revocation or retirement,
including automatic deactivation of any identifier that has not
been used in a Medicare claim within a specified time period,
such as 12 months.
E. Tax Haven Banks and U.S. Tax Compliance, July 17, 2008 (Report
Prepared by the Majority and Minority Staffs and released in
conjunction with the Subcommittee's Hearing on July 17, 2008)
(Printed in the July 17th and 25th hearing records.)
As part of its ongoing efforts to combat offshore tax
abuse, on July 17, 2008, the Subcommittee released a staff
report showing how two tax haven banks, LGT Bank in
Liechtenstein and UBS in Switzerland, helped U.S. clients evade
U.S. taxes by opening offshore accounts, concealing their
assets, and using financial services in ways that did not alert
U.S. authorities to the existence of their foreign accounts.
The Subcommitee released the report in conjunction with two
days of hearings.
The report summarized the Subcommittee's investigation and
offered a number of findings and recommendations. First, it
highlighted eight case histories of U.S. clients with offshore
accounts at LGT or UBS. It described, for example, the Marshes
of Florida who hid $49 million in four Liechtenstein
foundations over 20 years; William Wu who concealed ownership
of his assets, including his New York residence, using an
elaborate offshore structure; the Lowys of California who used
shell companies and a Delaware corporation to hide their
beneficial interest in a Liechtenstein foundation with $68
million in assets; a father and son who met LGT private
bankers, including a Liechtenstein Prince, to discuss
transferring $30 million in offshore funds from the Bank of
Bermuda to LGT; and Igor Olenifcoff, a California real estate
magnate who worked with a UBS private banker to hide $200
million in assets in Switzerland and Liechtenstein.
The report found that offshore bank secrecy laws and
practices were serving as a cloak, not only for client
misconduct, but also for misconduct by banks colluding with
clients to evade taxes, dodge creditors, and defy court orders.
The report found that, from at least 2000 to 2007, LGT and UBS
employed banking practices that could facilitate, and did
result in, tax evasion by their U.S. clients, including
assisting those clients to open accounts in the names of
offshore entities; advising clients on complex offshore
structures to hide ownership of assets; using client code
names; and disguising asset transfers into and from accounts.
In addition, the report found that, since 2001, LGT and UBS had
collectively maintained thousands of U.S. client accounts with
billions of dollars in assets that had not been disclosed to
the IRS. UBS alone had admitted maintaining accounts in
Switzerland for an estimated 19,000 U.S. clients with assets
valued at $18 billion, while the IRS has identified at least
100 accounts with U.S. clients at LGT.
Finally, the report found that LGT and UBS had assisted
their U.S. clients in structuring their foreign accounts to
avoid required reporting to the IRS under the so-called
Qualified Intermediary (QI) Program, which requires
participating foreign financial institutions to report and
withhold tax on U.S. source income paid to foreign bank
accounts. The report described how the banks had allowed U.S.
clients who sold their U.S. securities to continue to hold
undisclosed accounts or to open new accounts in the name of
offshore shell corporations which they secretly owned. The
report found that the banks used these banking practices to
keep accounts secret from the IRS and thereby facilitated tax
evasion by their U.S. clients.
The report contained numerous recommendations to stop tax
haven banks from facilitating U.S. tax evasion. Those
recommendations included penalizing tax haven banks that
impeded U.S. tax enforcement by terminating their QI status;
enacting legislation allowing the Treasury to bar such banks
from doing business with U.S. financial institutions; and
enacting legislation extending from 3 years to 6 years the
amount of time the IRS has after a tax return is filed to
assess additional tax if the case involves an offshore tax
haven with secrecy laws. The report also recommended
strengthening the QI reporting program by requiring QI
participants to file 1099 Forms with the IRS for: (1) all U.S.
persons who are clients (whether or not the client has U.S.
securities or receives U.S. source income); and (2) accounts
beneficially owned by U.S. persons, even if the accounts are
held in the name of a foreign corporation, trust, foundation,
or other entity. In addition, the report recommended closing
the ``QI-KYC Gap'' by expressly requiring QI participants to
apply to their QI reporting obligations all information
obtained through their Know-Your-Customer procedures, including
the identification of all beneficial owners of an account.
F. Dividend Tax Abuse: How Offshore Entities Dodge Taxes on U.S. Stock
Dividends, September 11, 2008 (Report Prepared by the Majority
and Minority Staffs and released in conjunction with the
Subcommittee's Hearing on September 11, 2008) (Printed in Sept.
11th hearing record.)
As part of its ongoing efforts to combat offshore tax
abuse, on September 11, 2008, the Subcommittee released a staff
report exposing practices at nearly a dozen financial
institutions showing how U.S. financial institutions knowingly
developed, marketed, and implemented a wide range of
transactions aimed at enabling their non-U.S. clients to dodge
payment of U.S. dividend taxes. The Subcommittee released the
report in conjunction with a hearing held the same day.
Foreigners who invest in the United States are exempt from
many U.S. taxes--they do not pay taxes on interest earned on
money deposited in a U.S. bank, nor do they pay taxes on
capital gains. However, if they invest in a U.S. company and
the stock pays a dividend, U.S. law requires the foreign
investor to pay a tax on the dividend. Dividends sent abroad
are subject to tax at a rate of 30 percent in most countries,
and 15 percent in countries having a tax treaty with the United
States. The report found that many non-U.S. clients escape
paying the required tax through the assistance of U.S.
financial institutions.
The report summarized the Subcommittee's investigation and
offered a number of findings and recommendations. It first
described six case histories of dividend tax abuse, involving
Lehman Brothers, Morgan Stanley, Deutsche Bank, UBS, Merrill
Lynch, and Citigroup. Using a variety of complex financial
instruments, primarily involving equity swaps and stock loans,
these U.S. financial institutions structured transactions to
enable their non-U.S. clients to enjoy all of the economic
benefits of owning shares of U.S. stock, including receiving
dividends, without paying the tax applicable to those
dividends. These structured transactions increased the amount
of dividend returns obtained by some of their non-U.S. clients
by 30 percent or more.
Additionally, the report found that U.S. financial
institutions frequently cooperated with offshore hedge funds to
negotiate and carry out abusive dividend tax transactions.
Offshore hedge funds actively sought these abusive
transactions, negotiated the terms of the arrangements with the
financial institutions, and at times played one financial
institution against another to elicit the largest possible tax
reduction. The report also found that many of the offshore
hedge funds benefiting from these tax dodges did not maintain
physical offices or investment professionals in their offshore
locations, and instead operated primarily under the control of
U.S. persons serving as the fund's general partner or
investment manager. In these cases, U.S. hedge fund managers
and their employees often played key roles in facilitating the
offshore dividend tax abuse.
The report found that, as a result of the offshore dividend
tax abuses, billions of dollars in U.S. taxes that should have
been paid into the Treasury were lost. For example, the report
cited Morgan Stanley data indicating that, over a 7-year period
from 2000-2007, its dividend tax transactions enabled clients
to escape payment of U.S. dividend taxes totaling more than
$300 million. In another example, the investment manager of a
group of related offshore hedge funds, Maverick Capital
Management, calculated that over an 8-year period, from 2000 to
2007, it had entered into ``U.S. Dividend Enhancements'' with a
variety of firms that enabled it to escape paying U.S. dividend
taxes totaling nearly $95 million.
The report also found that the responsible Federal
agencies, the Treasury Department and the IRS, had failed to
prevent or punish dividend tax abuse. The agencies had failed
to publish for 10 years final regulations to address abusive
stock loans, failed to clarify existing regulations related to
abusive equity swaps, and failed to take enforcement actions
against participating financial institutions or their clients.
The report found that, while the instances of abuse multiplied,
the silence and inaction of the Treasury Department and the IRS
encouraged the spread of offshore dividend tax abuse.
The report offered several recommendations to end dividend
tax abuses, including by enacting legislation to make it clear
that non-U.S. persons cannot avoid U.S. dividend taxes by using
a swap or stock loan to disguise dividend payments, and by
eliminating the different tax rules for U.S. stock dividends,
dividend equivalent payments, and dividend substitute payments,
and making them all equally taxable as dividends. The report
also recommended that the IRS complete its ongoing review of
dividend-related transactions and take civil enforcement action
against taxpayers and U.S. financial institutions that
knowingly participated in abusive transactions aimed at dodging
U.S. taxes on stock dividends. In addition, to stop misuse of
equity swap transactions to dodge U.S. dividend taxes, the
report recommended that the IRS issue a new regulation to make
dividend equivalent payments under equity swap transactions
taxable to the same extent as U.S. stock dividends. To stop
misuse of stock loan transactions to dodge U.S. dividend taxes,
the report recommended that the IRS issue a new regulation to
make clear that inserting an offshore entity into a stock loan
transaction does not eliminate U.S. tax withholding obligations
for stock dividends.
G. Medicare Vulnerabilities: The Use of Diagnosis Codes in DME Claims
(Report Prepared by the Minority Staff of the Permanent
Subcommittee on Investigations on September 24, 2008 and
released in conjunction with the Subcommittee's Hearing on July
9, 2008) (Printed in July 9th hearing record.)
As part of its ongoing efforts to uncover waste, fraud, and
abuse in the Medicare and Medicaid programs, on September 24,
2008, the Subcommittee released a Minority staff report on the
use of diagnosis codes in claims for durable medical equipment
(DME). Medicare DME claims include diagnosis codes identifying
the ailment of the Medicare beneficiary purchasing the medical
equipment. In order to determine if those diagnoses codes could
be used to prevent waste, fraud or abuse, the Subcommittee
examined data related to millions of DME claims. This review
uncovered numerous claims using invalid diagnosis codes and
diagnosis codes that, while valid, appeared unrelated to the
claimed medical equipment.
The report summarized the Subcommittee's investigation and
offered several findings and recommendations. The report
described the Subcommittee's examination of DME claims data
from 1995 to 2006. This review found $4.8 billion in Medicare
payments for 60 million DME items in which the claims contained
diagnosis codes that were invalid, blank, or impossible to
process. To further test these DME claims, the Subcommittee
conducted a detailed review of a subset of 2,000 claims, in
which the Subcommittee could verify only 30 percent of the
claims as legitimate. The report noted that many of the
unverified claims contained indicators of fraudulent activity,
such as the identification number of a doctor who had died
years earlier or of doctors who denied that they had prescribed
the indicated items or treated the indicated patients. The
review also uncovered DME claims that paid for medical
equipment or supplies that appeared wholly unrelated to the
listed ailment. For example, the Subcommittee reviewed hundreds
of thousands of claims paid by Medicare for blood glucose test
strips, which are used by diabetics to test their blood-sugar
levels, and found many with diagnosis codes unrelated to
diabetes, listing such ailments as chronic airway obstruction,
bubonic plague, leprosy, or cholera.
In addition to these findings, the report identified a
number of procedural and regulatory issues. It found, for
example, that Medicare rules governing the use of diagnostic
codes on DME claims had been inconsistent over time, and that
some of the Medicare claims data on diagnosis codes was
incorrect or outdated. The report also found that Medicare had
not used diagnosis codes effectively in the claims review
process. The report noted that Medicare limited its analysis to
the presence of a valid diagnosis code, and failed to use the
diagnosis codes to evaluate the validity or medical necessity
of the claim being presented. The report found that diagnosis
codes could be used in many instances to detect and prevent
fraudulent, wasteful, or abusive claims.
The report provided several recommendations to CMS in light
of the Subcommittee's findings. First, the report recommended
that CMS strengthen its claims review process to ensure that
all diagnosis codes submitted on claims be not only valid, but
medically related to the claimed DME supplies, and that claims
with invalid or incorrect codes are rejected and returned to
the biller for correction. The report also recommended that CMS
consider developing procedures to link diagnosis codes with
medical procedures to prevent and reject improper payments. The
report recommended that CMS also consider developing procedures
to link DME claims with corresponding claims for doctor visits
and medical treatment. Finally, the report recommended that CMS
strengthen its oversight of its payment contractors, including
by imposing penalties for making improper payments or failing
to maintain reliable data.
V. Requested and Sponsored Reports
In connection with its investigations, the Subcommittee
makes extensive use of the resources and expertise of the
Government Accountability Office (GAO), the Offices of
Inspectors General (OIGs) at various Federal agencies, and
other entities. During the 110th Congress, the Subcommittee
requested a number of reports and studies on issues of
importance to Congress and to U.S. consumers. Most of these
reports have already been described in connection with
Subcommittee hearings. Several additional reports that were of
particular interest, and that were not covered by Subcommittee
hearings, are the following.
A. Highway Bridge Program: Clearer Goals and Performance Measures
Needed for a More Focused and Sustainable Program (GAO-08-
1043), September 10, 2008
The August 1, 2007, collapse of a Minnesota bridge raised
urgent questions about bridge safety nationwide, as well as
efforts by the U.S. Department of Transportation (DOT) to
prioritize resources to address varying bridge safety problems.
The Subcommittee and the Senate Committee on Environment and
Public Works made a joint request to GAO to evaluate how
Federal, State, and local transportation officials carry out
the Highway Bridge Program (HBP), the primary source of Federal
funding for bridges. GAO's report examined: (1) how the HBP
addresses bridge conditions, (2) how States use HBP funds and
select bridge projects for funding, (3) what data indicate
about bridge conditions and the HBP's impact, and (4) the
extent to which the HBP aligns with principles GAO developed,
based on prior work and Federal laws and regulations, for re-
examining surface transportation programs.
GAO found, based on information gathered during bridge
inspections that are generally conducted every 2 years, that
the HBP classifies bridge conditions as deficient or not;
assigns each bridge a sufficiency rating reflecting its
structural adequacy, safety, serviceability, and relative
importance; and uses that information to distribute funding to
States. While each State's HBP apportionment amount is largely
determined by bridge conditions and bridges generally must be
below a certain condition threshold to qualify for HBP funding,
other bridges are also eligible for HBP funds because States
may use the funds for a broad array of other purposes, such as
bridge systematic preventive maintenance projects. States have
discretion in how they choose to spend HBP funds and select
bridge projects in a variety of ways.
GAO found that bridge conditions, as measured by the number
of deficient bridges and average sufficiency rating, improved
from 1998 through 2007. However, the impact of the HBP on that
improvement was difficult to determine, in part, because (1)
the program provides only a share of what States spend on
bridges and there are no comprehensive data for State and local
spending on bridges, and (2) HBP funds can, in some cases, be
used for a variety of bridge projects without regard to a
bridge's deficiency status or sufficiency rating.
GAO determined that the HBP lacks focus, performance
measures, and sustainability. For example, the program's
statutory goals are not focused on a clearly identified Federal
or national interest, but rather have expanded from improving
deficient bridges to supporting seismic retrofitting,
preventive maintenance, and many other projects, thus expanding
the Federal interest to potentially include almost any bridge
in the country. In addition, GAO found that the program lacks
measures linking funding to performance and is not financially
sustainable, given the anticipated deterioration of the
Nation's bridges and the declining purchasing power of funding
currently available for bridge maintenance, rehabilitation, and
replacement.
B. Tax Administration: Comparison of the Reported Tax Liabilities of
Foreign- and U.S.-Controlled Corporations, 1998-2005 (GAO-08-
957), July 24, 2008
The Subcommittee has a longstanding interest in tax abuse
issues involving U.S. corporations, including corporations that
use transfer pricing strategies to shift profits offshore to
avoid the payment of U.S. taxes. In three prior reports, GAO
examined U.S. corporations that reported paying little or no
tax, and examined differences in those corporations that were
U.S. versus foreign-controlled. Subcommittee Chairman Levin,
Senator Dorgan, and the Joint Committee on Taxation asked GAO
to update its previous reports by comparing: (1) the tax
liabilities of U.S.-controlled corporations (USCC) and foreign-
controlled domestic corporations (FCDC)--including those
reporting zero tax liabilities for 1998 through 2005 (the
latest available data); and (2) the characteristics of those
USCCs and FCDCs such as age, size, and industry.
The data collected by GAO indicated that the majority of
corporations reviewed had reported no tax liability for the
years 1998 to 2005. During this 8-year period, GAO found that
over 1.2 million USCCs paid no tax (67 percent of returns),
despite total gross receipts of $2.1 trillion; and that over
38,000 FCDCs that paid no tax (65 percent of returns) despite
total gross receipts of $435 billion. In addition, GAO found
that about 72 percent of large FCDCs versus 55 percent of large
USCCs had reported no tax liability for at least 1 year over
the 8 years studied.
GAO also found that, by most measures in the report, FCDCs
reported lower tax liabilities than USCCs. A greater percentage
of large FCDCs reported no tax liability in a given year from
1998 through 2005. For all corporations, a higher percentage of
FCDCs reported no tax liabilities than USCCs through 2001, but
differences after 2001 were not statistically significant. Most
large FCDCs and USCCs that reported no tax liability in 2005
also reported that they had no current-year income. A smaller
proportion of these corporations had losses from prior years
and tax credits that eliminated any tax liability. By another
measure, large FCDCs were more likely to report no tax
liability over multiple years than large USCCs. In 2005,
comparisons of FCDCs and USCCs based on ratios of reported tax
liabilities to gross receipts or total assets showed that FCDCs
reported less tax than USCCs.
GAO found that FCDCs and USCCs differed in age, size, and
industry. FCDCs were younger than USCCs in that a greater
percentage had been incorporated for 3 years or less from 1998
through 2005. In 2005, FCDCs were larger on average than USCCs
in that they reported higher average gross receipts and assets
than USCCs. A comparison by industry in 2005 showed that large
FCDCs were relatively more concentrated in manufacturing and
wholesale trade, while large USCCs were more evenly distributed
across industries. GAO did not attempt to determine the extent
to which these factors and others, such as transfer pricing
abuses, explained the differences in tax liabilities.
C. Tax Compliance: Federal Grant and Direct Assistance Recipients Who
Abuse the Federal Tax System (GAO-08-31), November 16, 2007
Since 2004, the Subcommittee has conducted an ongoing
investigation into Federal contractors who bid for and receive
Federal dollars for their work, while simultaneously owing
substantial unpaid taxes. To expand the focus of this
investigation, the Subcommittee, as well as the full Committee,
asked GAO to examine noncompliant taxpayers who simultaneously
did business with or received benefits from the Federal
Government through Federal Grant programs. The resulting GAO
report was the latest in a series of GAO reports examining
weaknesses in the Federal Payment Levy Program and other
Federal programs and controls that have allowed tens of
thousands of Federal contractors and Medicare providers to
receive government money while owing billions of dollars in
unpaid taxes. The Subcommittee asked GAO to examine the extent
of this problem for entities who receive Federal Grants or
direct assistance, including by providing the magnitude of
taxes owed, examples of grant recipients involved in abusive or
potentially criminal activity, and the efforts being made to
prevent delinquent taxpayers from participating in such
programs.
GAO determined that while most recipients of Federal Grant
and direct assistance payments pay their Federal taxes, as of
September 30, 2006, tens of thousands of recipients
collectively owed about $790 million in unpaid Federal taxes.
GAO's data included over 2,000 individuals and organizations
that received $124 billion of payments directly from the
Federal Government and who owed more than $270 million of
unpaid taxes (almost 6 percent of such recipients) and about
37,000 landlords participating in HUD's Section 8 tenant-based
housing program who owed an estimated $520 million of unpaid
taxes (almost 4 percent of such landlords). GAO indicated that
the $790 million estimate is likely substantially understated,
because GAO's analysis excluded the 80 percent of Federal
Grants that are directly given to State and local governments
which, in turn, disburse the grants to the ultimate recipients.
GAO presented 20 cases of grant and direct assistance
recipients who had high tax debt and who appeared to be engaged
in abusive or potential criminal activity related to the
Federal tax system, including failure to remit individual
income taxes or payroll taxes to the IRS. Willful failure to
remit payroll taxes is a felony under U.S. law, and GAO
provided evidence that some of the individuals associated with
some of the recipients had diverted payroll tax money to their
personal use or to help fund their businesses. GAO referred the
20 cases to the IRS for additional investigation and
enforcement action, as appropriate.
GAO also recommended that the Office of Management and
Budget consider requiring Federal agencies that issue grants or
make direct assistance payments take affirmative steps to
determine whether any of their applicants have unpaid tax debt.
D. Tax Compliance: Some Hurricanes Katrina and Rita Disaster Assistance
Recipients Have Unpaid Federal Taxes (GAO-08-101R), November
16, 2007
In further support of the Subcommittee's ongoing
investigation into persons who do business with or receive
benefits from the Federal Government while owing Federal taxes,
the Subcommittee and full Committee asked GAO to examine the
extent to which tax delinquent persons received benefits from
the Individuals and Households Program (IHP) operated by the
Federal Emergency Management Agency (FEMA) following Hurricanes
Katrina and Rita. IHP is a Federal direct assistance program
authorized by the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (Stafford Act). GAO agreed to
determine, to the extent practical, the estimated magnitude of
Federal taxes owed by individuals receiving IHP disaster
assistance benefit payments following Hurricanes Katrina and
Rita; and provide examples of abusive or criminal activity
related to the Federal tax system by IHP recipients with unpaid
Federal taxes.
GAO conducted its estimate by cross referencing IRS tax
debts in excess of $100 as of September 30, 2005 with IHP
disaster assistance benefit payments for Hurricanes Katrina and
Rita. It found that about 80,000 of the 1.5 million individuals
(about 5 percent) who received disaster assistance benefits for
Hurricanes Katrina and Rita owed over $700 million in unpaid
Federal taxes prior to those hurricanes. GAO reported that FEMA
officials stated that they do not screen disaster applicants
for existing tax debts because there is no legal requirement to
do so.
GAO also presented five IHP recipient case histories of
abusive and criminal activity. These recipients had tax debts
ranging from about $400,000 to over $2 million, and several had
a history of failing to file tax returns for several years
prior to the hurricane disasters. GAO also identified instances
in which IHP recipients attempted to transfer property to avoid
IRS seizure. For example, one IHP recipient in the oil and gas
industry had forged a third party's signature to illegally
transfer land. Another IHP recipient, a lawyer, transferred a
large quantity of stock to a family member while the IRS was
taking collection actions against the lawyer.
E. Medicare: Covert Testing Exposes Weaknesses in the Durable Medical
Equipment Supplier Screening Process (GAO-08-955), July 3, 2008
In connection with the Subcommittee's ongoing investigation
into waste, fraud, and abuse in the Medicare and Medicaid
programs, the Subcommittee asked GAO to examine vulnerabilities
in Medicare's enrollment process for suppliers of durable
medical equipment, prosthetics, orthotics, and supplies
(DMEPOS). Due to weaknesses in the DMEPOS enrollment and
inspection process, CMS has found that sham companies have been
able to enroll in the program and fraudulently bill Medicare
for unnecessary or nonexistent supplies. CMS has estimated
that, from April 2006 through March 2007, Medicare has made $1
billion in improper payments for DMEPOS supplies, in part due
to fraud by the enrolled suppliers.
GAO tested CMS's processes by creating two fictitious
DMEPOS suppliers, applying for Medicare billing numbers, and
completing electronic test billings. GAO reported that it was
able easily to establish two fictitious DMEPOS companies using
undercover names and bank accounts. GAO reported that its
fictitious companies applied for and were able to win approval
for Medicare billing privileges despite having no clients or
inventory. GAO reported that CMS had initially denied the
applications in part because of a lack of inventory, but
undercover GAO investigators then fabricated contracts with
nonexistent wholesale suppliers to convince CMS and its
contractor, the National Supplier Clearinghouse (NSC), that the
companies had access to DMEPOS items.
As a result of these simple methods of deception, both
fictitious DMEPOS companies obtained Medicare billing numbers.
After requesting an electronic billing enrollment package and
obtaining passwords from CMS, GAO was then able to successfully
complete Medicare's test billing process for the Virginia
office. GAO was unable to complete test billing for the
Maryland office, however, because CMS has not sent the
necessary passwords. However, if real criminals had been in
charge of the fictitious companies, they would have been clear
to bill Medicare for potentially millions of dollars worth of
nonexistent supplies.
After concluding the test, GAO recommended that CMS and
associated contractors initiate procedures beyond the current
paperwork reviews to conduct more rigorous oversight of DMEPOS
suppliers to ensure their legitimacy.
F. Premium Class Travel: Internal Control Weaknesses Governmentwide Led
to Improper and Abusive Use of Premium Class Travel (GAO-07-
1268), September 28, 2007
In conjunction with its work to uncover waste, fraud, and
abuse in the Federal Government, the Subcommittee has conducted
an ongoing inquiry into problems with Federal travel programs
and expenses. Previous GAO reports undertaken at the request of
the Subcommittee disclosed improper premium class travel at the
Department of Defense (DOD) and the Department of State
(State). In this report, the Subcommittee asked GAO to examine
whether similar improper travel existed in the rest of the
Federal Government. In response, GAO undertook a study to
determine the magnitude of premium class travel government-
wide, and the extent to which such travel was improper; the
existence of internal control weaknesses that contributed to
improper and abusive premium class travel; and specific
examples of improper and abusive premium class travel.
GAO found that Federal employees on official government
travel were expected to follow published guidelines related to
when and how premium (first and business) class travel should
be undertaken. Due to the high cost of premium class travel,
Federal Travel Regulations (FTR) issued by the General Services
Administration (GSA) provide specific guidelines to restrict
premium class use. GAO reported that, according to GSA data,
the government fare for business class travel is typically more
than 5 times the price of coach class travel for comparable
routes, with some tickets costing more than 10 times as much.
GAO reported that the Federal Government spent over $230
million on about 53,000 premium class tickets from July 1,
2005, through June 30, 2006. GAO determined that breakdowns in
internal controls and a weak controled environment resulted in
at least $146 million in improper first and business class
travel government-wide. Based on statistical sampling, GAO
estimated that 67 percent of premium class travel was not
properly authorized, justified, or both. While business class
travel accounted for 96 percent of all premium class travel,
GAO found that many agencies did not track, and thus did not
know the extent of, business class travel. GAO noted that
Office of Management and Budget (OMB) and GSA also did not
require reporting of business class travel. GAO also found
large differences in premium class guidance government-wide,
with some agencies issuing less restrictive guidance that were
tailored for executive travel.
GAO made two recommendations to prevent improper premium
travel. GAO recommended that agencies: (1) improve internal
controls to properly authorize and justify premium class
travel, including prohibiting subordinates or the travelers
themselves from authorizing premium class travel, and (2)
establish procedures to require compiling government-wide data
and monitoring of the extent of premium class travel, including
business class.
G. Governmentwide Purchase Cards: Actions Needed to Strengthen Internal
Controls to Reduce Fraudulent, Improper, and Abusive Purchases
(GAO-08-333), March 14, 2008
In conjunction with its work uncovering waste, fraud, and
abuse in the Federal Government, the Subcommittee requested
that GAO analyze credit card transactions at certain agencies
to (1) determine whether internal control weaknesses existed in
the government purchase card program; and (2) if so, identify
examples of fraudulent, improper, and abusive activity. To
conduct this review, GAO asked agencies to provide
documentation on selected transactions to establish that the
purchase had been properly authorized and that when the good or
service was delivered, an individual other than the cardholder
received and signed for it. Using a statistical sample of
purchase card transactions from July 1, 2005, through June 30,
2006, GAO estimated that nearly 41 percent of the transactions
failed to meet either of these basic internal control
standards. Using a second sample of transactions over $2,500,
GAO found a similar failure rate--that agencies could not
demonstrate that 48 percent of these large purchases met
standards for proper authorization, independent receipt and
acceptance, or both.
GAO also presented case studies showing how the breakdowns
in these internal controls resulted in fraudulent, improper, or
abusive purchase card use. These examples included instances in
which government cardholders used government purchase cards to
subscribe to Internet dating services, buy video iPods for
personal use, and pay for lavish dinners. In one case, a
cardholder used the government purchase card program to
embezzle over $642,000 over 6 years from the Department of
Agriculture's Forest Service firefighting fund. This cardholder
was sentenced to 21 months in prison and ordered to pay full
restitution. GAO also determined that agencies were unable to
locate 458 items of 1,058 total accountable and pilferable
items totaling over $2.7 million that GAO selected for testing.
These missing items, which GAO considered to be lost or stolen,
included computer servers, laptop computers, iPods, and digital
cameras. For example, the Department of the Army could not
adequately account for 256 items making up 16 server
configurations, each of which cost nearly $100,000.
H. Information Security: Protecting Personally Identifiable Information
(GAO-08-343), January 25, 2008
In May 2006, a laptop computer containing the personal data
of millions of veterans was stolen from the home of an employee
of the Department of Veterans Affairs (VA). This incident
raised a host of concerns regarding the security of personal
information on Federal systems compromised by the loss or theft
of equipment or by unauthorized access. The Subcommittee's
Ranking Member Senator Coleman and Representative Susan Davis
made a joint request that GAO: (1) identify the Federal laws
and guidance issued to protect personally identifiable
information from unauthorized use or disclosure; and (2)
describe agencies' progress in developing policies and
procedures under recent Office of Management and Budget
guidance to protect personally identifiable information that is
either accessed remotely or physically transported outside an
agency's secured physical perimeter.
The loss of personally identifiable information can result
in substantial harm, embarrassment, and inconvenience to
individuals and may lead to identity theft or other fraudulent
use of the information. Prior GAO evaluations had exposed
weaknesses in the Federal Government's efforts to protect
personally identifiable information. In this evaluation, GAO
found that of the 24 major agencies, 22 had developed policies
requiring personally identifiable information to be encrypted
on mobile computers and devices. Fifteen of the agencies had
policies to use a ``time-out'' function for remote access and
mobile devices requiring user reauthentication after 30 minutes
of inactivity. Eleven agencies had established policies to log
computer-readable data extracts for databases holding sensitive
information and erase the data within 90 days after extraction.
At the conclusion of GAO's review, OMB announced in
November 2007, that agencies that did not complete certain
privacy and security requirements had received a downgrade in
their scores for progress in electronic government initiatives.
According to OMB, it will continue working with agencies to
help them strengthen their information security and privacy
programs, especially as they relate to the protection of
personally identifiable information.
I. Combating Nuclear Smuggling: DNDO Has Not Yet Collected Most of the
National Laboratories' Test Results on Radiation Portal
Monitors in Support of DNDO's Testing and Development Program
(GAO-07-347R), March 9, 2007
As part of its effort to evaluate U.S. safeguards against
nuclear and radiological threats, the Subcommittee has examined
government efforts to prevent a nuclear weapon or radiological
dispersal device (a ``dirty bomb'') from being smuggled into
the United States. The Department of Homeland Security (DHS),
through its Domestic Nuclear Detection Office (DNDO), has lead
responsibility for conducting the research, development,
testing, and evaluation of radiation detection equipment that
can be used to detect smuggled nuclear or radiological
materials. As of 2007, most of DNDO's work on radiation
detection equipment has focused on the development and use of
radiation detection portal monitors, which are larger-scale
equipment that can screen vehicles, people, and cargo entering
the United States. Current portal monitors, made of polyvinyl
toluene plastic (PVTs), can detect the presence of radiation
but cannot distinguish between benign radiological materials
(NORM) such as ceramic tile, and dangerous materials such as
highly enriched uranium (HEU). DNDO plans to replace PVTs with
the next generation of portal monitors, known as Advanced
Spectroscopic Portals (ASP), with the hope that ASPs will be
able to more specifically identify radiological and nuclear
materials within a shipping container. Given that this plan
would require a multibillion dollar investment and coordination
with State and local governments, the Subcommittee, the full
Committee, the House Committee on Energy and Commerce, and the
House Committee on Homeland Security made a joint request to
GAO to assess the advantages and disadvantages of this planned
approach.
GAO's report examined the extent to which DNDO has: (1)
compiled previous test results from the national laboratories
on commercially available portal monitors, and (2) provided
State and local authorities with information on the technical
performance characteristics and operation of radiation
detection equipment. GAO reported that DNDO was in the process
of planning how to develop a database with PVT test reports to
gauge how well they detect radiological and nuclear material
and how environmental conditions and other factors may affect
PVT performance. GAO reported that DNDO was also improving its
efforts to provide technical and operational information about
radiation portal monitors to State and local authorities. For
example, DNDO recently helped to establish a Website that,
among other features, includes information for State and local
officials on radiation detection equipment products and
performance requirements. GAO reported that some State
representatives, particularly those from States with less
experience conducting radiation detection programs, would like
to see DNDO provide more prescriptive advice on what types of
radiation detection equipment to deploy and how to use it.
J. Nuclear Security: NRC and DHS Need to Take Additional Steps to
Better Track and Detect Radioactive Materials (GAO-08-598),
June 19, 2008
As part of its effort to evaluate U.S. safeguards against
nuclear and radiological threats, the Subcommittee has devoted
resources to evaluating the government's ability to detect and
track nuclear materials in the United States, including low-
grade radioactive materials that could be used to build a
``dirty bomb'' a device using conventional explosives to
disperse radioactive material. During the 110th Congress, the
Subcommittee and the House Committee on Energy and Commerce
made a joint request to GAO to assess certain policies and
practices of the Nuclear Regulatory Commission (NRC) and
Department of Homeland Security (DHS) related to tracking and
detecting nuclear materials, including: (1) the NRC's progress
in implementing recommendations, made by GAO in 2003, to
strengthen U.S. capabilities in this area; (2) other steps the
NRC has taken to improve its ability to detect and track
nuclear materials; (3) the capability of the DHS Customs and
Border Protection (CBP) to detect radioactive materials at land
ports of entry, and (4) the capability of the CBP to verify
that such materials were appropriately licensed prior to
entering the United States.
GAO determined that NRC had implemented three of the six
recommendations from GAO's 2003 report. GAO reported that the
NRC had worked with the 35 States to which it has ceded primary
authority to regulate radioactive materials to: (1) identify
sealed sources (radioactive materials sealed in a capsule) of
greatest concern; (2) enhance requirements to secure
radioactive sources; and (3) ensure security requirements are
implemented. GAO reported that, in contrast, NRC had made only
limited progress toward implementing recommendations to: (1)
modify its process for issuing licenses to ensure that
radioactive materials cannot be purchased by those with no
legitimate need for them; (2) determine how to effectively
mitigate the potential psychological effects of malicious use
of such materials; and (3) examine whether certain radioactive
sources should be subject to more stringent regulations.
Beyond acting on GAO's recommendations, GAO reported that
the NRC had taken four additional steps to improve its ability
to track radioactive materials. First, NRC created an interim
national database to monitor the licensed sealed sources
containing materials that pose the greatest risk of being used
in a dirty bomb. Second, NRC is developing a National Source
Tracking System to replace that interim database and provide
more comprehensive, updated information on potentially
dangerous sources. GAO also reported, however, that this system
has been delayed by 18 months and is not expected to be fully
operational until January 2009. Third, NRC is developing a Web-
Based Licensing System that will include more comprehensive
information on all sources and materials that require NRC or
State approval to possess. Finally, NRC is developing a license
verification system that will draw information from the other
new systems to enable officials and vendors to verify that
those seeking to bring radioactive materials into the country
or purchase them are licensed to do so. GAO noted, however,
that the various systems are more than 3 years behind schedule
and initially may not include the licensing information on
radioactive materials regulated by Agreement States--which
represent over 80 percent of all U.S. licenses for such
materials. GAO reported that the delays in the development and
deployment of these systems are especially consequential
because NRC has identified them as key to improving the control
and accountability of radioactive materials. Finally, GAO
reported that, while the CBP has a comprehensive system in
place to detect radioactive materials entering the United
States at land borders, some equipment that is used to protect
CBP officers is in short supply.
K. Supply Chain Security: Examinations of High-Risk Cargo at Foreign
Seaports Have Increased, but Improved Data Collection and
Performance Measures Are Needed (GAO-08-187), January 25, 2008
The Container Security Initiative (CSI) of the Customs and
Border Protection (CBP) aims to identify and examine high-risk
U.S.-bound cargo through inspections at foreign seaports. GAO
reported in 2003 and 2005 that CSI helped to enhance homeland
security, and recommended actions to strengthen the program.
The Subcommittee, full Committee, the Senate Committee on
Commerce and the House Committee on Energy and Commerce made a
joint request to GAO to update its prior work and assess how
CBP has: (1) contributed to strategic planning for supply chain
security, (2) strengthened CSI operations, and (3) evaluated
CSI operations.
GAO determined that CBP reached an important target of
operating CSI in 58 foreign seaports, and thereby having 86
percent of all U.S.-bound cargo containers pass through CSI
seaports in fiscal year 2007. Also, CBP has increased CSI
staffing levels closer to those called for in its staffing
model and in prior GAO recommendations. GAO reported, however,
that CBP still faces staffing challenges because of its partial
dependence on a temporary workforce and inability to identify
sufficient numbers of qualified staff. Also, while CBP has been
able to reach most foreign seaports, hurdles to cooperation
remain at some of them, such as restrictions on CSI teams
witnessing examinations. GAO reported that CBP refined overall
CSI performance measures, but has not fully developed
performance measures and annual targets for core CSI functions,
such as the examination of high-risk containers before they are
placed on vessels bound for the United States. GAO concluded
that these weaknesses in CBP's data collection and performance
measures potentially limit the information available on overall
CSI effectiveness.
L. Supply Chain Security: U.S. Customs and Border Protection Has
Enhanced Its Partnership with Import Trade Sectors, but
Challenges Remain in Verifying Security Practices (GAO-08-240),
April 25, 2008
The Customs and Border Protection (CBP) is responsible for
ensuring the security of cargo containers shipped into the
United States. To strike a balance between security and
commerce, CBP oversees the Customs-Trade Partnership Against
Terrorism (C-TPAT) program. C-TPAT aims to secure the flow of
goods bound for the United States by developing a voluntary
antiterrorism partnership with stakeholders of the
international trade community comprised of importers; customs
brokers; air, sea, and land carriers; and other logistics
service providers such as freight consolidators and nonvessel
common carriers. Member companies agree to allow CBP to
validate their security practices and, in exchange, they are
awarded benefits, such as reduced scrutiny of their cargo. CBP
gained additional responsibility for the C-TPAT program when
the Security and Accountability For Every Port (or SAFE Port)
Act of 2006 established a statutory framework for it and added
new components to it.
A prior review by GAO of the C-TPAT program found multiple
managerial and operational weaknesses. The Subcommittee, full
Committee, Senate Committee on Commerce, and House Committee on
Energy and Commerce made a joint request that GAO assess CBP's
progress in overcoming those weaknesses, including progress in:
(1) improving its benefit award policies for C-TPAT members,
(2) addressing challenges in validating members' security
practices, and (3) addressing management and staffing
challenges.
GAO found that CBP had taken steps to improve the C-TPAT
program, but challenges remained. GAO reported that CBP had
strengthened its policies for granting benefits to importers,
C-TPAT's largest member sector, but is working to improve its
policies for members in other trade sectors. With regard to the
C-TPAT security validation process, GAO reported that CBP was
unable to verify that partnership members had security
practices that met the minimum criteria. For example, CBP did
not have internal controls to consistently ensure that when
security specialists made recommendations in validation
reports, appropriate actions were taken to follow up those
recommendations. As a result, CBP could not be certain that the
C-TPAT member companies who were shipping containers under
reduced security agreements were using adequate security
practices. Finally, GAO reported that CBP had embarked on plans
to improve managing and staffing.
GAO made recommendations for specific improvements which
CBP agreed to implement.
M. Supply Chain Security: CBP Works with International Entities to
Promote Global Customs Security Standards and Initiatives, but
Challenges Remain (GAO-08-538), August 15, 2008
As part of the responsibility of the Customs and Border
Protection (CBP) to ensure the security of cargo containers
shipped into the United States, CBP is involved with efforts to
establish an international system of mutual recognition of
customs security practices based on the adoption of uniform,
international standards. The Subcommittee, full Committee,
Senate Committee on Commerce, and House Committee on Energy and
Commerce made a joint request to GAO to evaluate: (1) actions
taken by CBP to develop and implement international supply
chain security standards, (2) actions taken by CBP with
international partners to achieve mutual recognition of customs
security practices, and (3) issues CBP and foreign customs
administrations anticipate in implementing 100 percent scanning
of U.S.-bound container cargos.
GAO reported that, to develop and implement international
supply chain security standards, CBP has taken a lead role in
working with foreign customs administrations and the World
Customs Organization (WCO). Through the Container Security
Initiative (CSI), CBP places staff at foreign seaports to work
with host nation customs officials to identify high-risk
container cargo bound for the United States, and through the
Customs-Trade Partnership Against Terrorism (C-TPAT), CBP forms
voluntary partnerships to enhance security measures with
international businesses involved in oceangoing trade with the
United States. GAO reported that, in collaboration with 11
other members of the WCO, CBP has developed the Framework of
Standards to Secure and Facilitate Global Trade (SAFE
Framework). The SAFE Framework was adopted by the 173 WCO
member customs administrations in June 2005; and as of July
2008, 154 had signed letters of intent to implement the
standards. More specifically, CBP has signed mutual recognition
arrangements with New Zealand, Jordan and Canada, and
anticipates an agreement in 2009 with the European Commission,
which represents the 27 member nations of the European Union.
GAO reported that recent U.S. laws, such as The
Implementing Recommendations of the 9/11 Commission Act of 2007
(9/11 Act)--requiring that 100 percent of U.S.-bound container
cargo be scanned at foreign seaports--may affect worldwide
adoption of international standards. CBP and some foreign
partners have stated that, unless additional resources are made
available, 100 percent scanning could not be met. GAO reported
that CBP and European custom administration officials have said
that 100 percent scanning may result in a lower level of
security if customs officers are diverted from focusing on
high-risk container cargo. Under the current risk-management
system, for example, the scanned images of high-risk containers
are to be reviewed in a very detailed manner. However,
according to WCO and industry officials, if all containers are
to be scanned, the reviews may not be as thorough. Further, a
European customs administration reported that 100 percent
scanning could have a negative impact on the flow of commerce
and also would affect trade with developing countries
disproportionately.
N. United Nations Organizations: Oversight and Accountability Could Be
Strengthened by Further Instituting International Best
Practices (GAO-07-597), June 18, 2007
As part of the Subcommittee's ongoing investigation into
United Nations management issues, the Subcommittee's Ranking
Minority Member, Senator Coleman, and the House Committee on
Foreign Affairs' Ranking Minority Member, Representative Ileana
Ros-Lehtinen, asked GAO to examine the progress of the United
Nations in implementing a range of management, oversight, and
accountability reforms designed, in part, to ensure that
resources are used effectively and efficiently. In particular,
GAO examined the extent to which: (1) selected U.N. internal
audit offices had implemented professional standards for
performing audits and investigations; (2) selected U.N.
evaluation offices had implemented U.N. evaluation standards;
and (3) selected U.N. governing bodies were provided with
information about the results of U.N. oversight practices.
GAO reported that the six U.N. internal audit offices
reviewed had made progress in implementing international
auditing standards, they had not fully implemented key
components of the standards. GAO reported that the audit
offices lacked completed organization wide risk-management
frameworks, which are essential in identifying the areas with
the greatest vulnerability to waste, fraud, and abuse, and
three audit offices lacked sufficient staff to cover high-risk
areas of the organization. GAO also reported that some of the
audit offices had not fully implemented quality assurance
processes, which include activities such as external peer
reviews; and some did not have professional investigators.
GAO reported that the six U.N. evaluation offices reviewed
were working toward implementation of U.N. evaluation
standards, but had not fully implemented them. GAO reported
that most of the evaluation offices lacked sufficient resources
and expertise to manage and conduct evaluations, especially at
the country level, which impacted their ability to conduct
high-quality and strategically important evaluations. In
addition, GAO reported that most of the evaluation offices had
not fully implemented quality assurance processes relating to
areas such as evaluation methodology, scope, evidence, and
findings. GAO also reported that all of the evaluation offices
were working toward fully establishing mechanisms that
systematically follow up and report on the status of their
recommendations.
GAO reported that the U.N. governing bodies responsible for
oversight of the audit and evaluation offices lacked full
access to internal audit reports and most lacked direct
information from the audit offices about the sufficiency of
their resources and capacity to conduct their work. GAO noted
that access to that information would provide greater insights
into the offices' operations and help identify critical
systemic weaknesses. In addition, GAO reported that, with one
exception, the audit committees that GAO examined were
generally not accountable to their governing bodies, and some
were composed of senior U.N. management officials.
O. United Nations: Progress on Management Reform Efforts Has Varied
(GAO-08-84), November 14, 2007
As part of the Subcommittee's ongoing investigation into
United Nations management issues, the Subcommittee asked GAO to
update a 2006 GAO report which had found that United Nations
management reforms were progressing slowly. In response, GAO
evaluated U.N. management reform initiatives in five areas--
ethics, oversight, procurement, management operations of the
Secretariat, and management of U.N. programs and activities
(known as mandates); and also identified factors that had
slowed the pace of reform efforts.
Overall, GAO found mixed progress in U.N. management reform
efforts. In the area of ethics, GAO found that the U.N. Ethics
Office had made substantial progress in staffing its office and
implementing a whistleblower protection policy, as well as some
progress in developing ethics standards and collecting and
analyzing financial disclosure forms. In the area of oversight,
GAO found that member states had made some progress when they
created an Independent Audit Advisory Committee, which is
expected to be operational by January 2008. Additionally, the
Office of Internal Oversight Services (OIOS) had improved the
oversight capacity of individual divisions, including through
internal audit and investigations. GAO noted, however, that
U.N. funding arrangements continude to constrain the
independence of OIOS and its ability to audit high-risk areas.
In the area of procurement, GAO found that some progress
had been made, noting the development of a comprehensive
training program for procurement staff. GAO also noted,
however, that the U.N. had made little or no progress in
establishing an independent bid protest system. GAO found that
some progress had been made in reforming management operations
at the U.N. Secretariat, highlighting improvements to human
resource functions and information technology. In contrast, GAO
found little or no progress had been made in reforming the
U.N.'s internal justice system for resolving and adjudicating
staff grievances and safeguarding the rights of staff members,
certain budgetary and financial management functions, and the
delivery of certain services. Finally, GAO found that, despite
some limited initial actions, the U.N.'s review of U.N.
programs and activities had not advanced, due in part to a lack
of support by many member states.
GAO reported that various factors had slowed the pace of
U.N. management reforms, and predicted that a number of reforms
would be unable to move forward until those factors were
addressed. GAO identified four main factors slowing reforms:
(1) disagreements among member states on the priorities and
importance of U.N. management reform efforts, (2) the lack of
comprehensive implementation plans for some management reform
proposals, (3) administrative policies and procedures that
continue to complicate the process of implementing certain
complex human resource initiatives, and (4) competing U.N.
priorities, such as the proposal to reorganize the Department
of Peacekeeping Operations, that limit the capacity of General
Assembly members to address management reform issues.
P. Selected Agencies Use of Criminal Background Checks for Determining
Responsibility (GAO-07-215R), January 12, 2007
As part the Subcommittee's ongoing interest in uncovering
and preventing contractor waste and fraud affecting the Federal
Government, the Subcommittee asked GAO to research certain
agency policies and practices for making responsibility
determinations before awarding contracts, including any agency
use of criminal background checks. Responsibility
determinations for Federal contractors include an assessment of
a number of specific elements including a contractor's
technical capability, past performance, financial capability,
and business ethics and integrity. In its report, GAO sought to
(1) identify agency policies and practices for making
contractor responsibility assessments, and the conditions under
which agencies conduct criminal background checks; (2)
determine how contracting officers use the Excluded Parties
List System (EPLS) to make responsibility assessments and
identify any planned improvements to the EPLS; and (3)
determine the number of fraud investigations in which the
contractor or its principals had a prior criminal background.
GAO found that Federal agencies base their policies and
practices for making contractor responsibility determinations
on the Federal Acquisition Regulation (FAR) and their own
supplements to the FAR. The FAR specifies a number of factors
to consider in making responsibility determinations, but does
not require a criminal background check. GAO reported that
contracting officers also used the EPLS system to determine if
a particular contractor was excluded from eligibility to bid on
a contract. GAO reported that contracting officers said they
generally searched the EPLS by using (1) an identifying number
such as the Data Universal Numbering System (DUNS) or a
Taxpayer Identification Number, or (2) the name of either the
firm or an individual.
GAO described how the EPLS list was compiled. GAO reported
that officials said their agencies received allegations of
irregularities from many sources including contracting
officers, oversight organizations such as the Defense Contract
Management Agency, agency or contractor employees, competitors,
other Federal agencies, whistleblower cases, and hotlines.
Agencies assigned investigations of fraud to internal criminal
investigative units, such as the Office of Inspector General,
which coordinate with their General Counsel offices to report
indictments or evidence to initiate suspensions and convictions
to initiate debarment proceedings.
GAO reported that, according to agency officials,
information on whether investigations included company
employees or principals with a prior criminal history may be
contained in the case files if it is a part of the information
collected in developing the investigation. For example, at DOJ,
prior criminal history checks are a routine part of case
development. However, the case files are narrative in nature
and, therefore, obtaining the information would require a case-
by-case analysis. GAO was thus unable to determine the number
of fraud investigations in which the contractor or its
principals had a prior criminal background.
Q. Terrorist Watch List Screening: Opportunities Exist to Enhance
Management Oversight, Reduce Vulnerabilities in Agency
Screening Processes, and Expand Use of the List (GAO-08-110)
October 11, 2007
The Terrorist Screening Center (TSC) of the Federal Bureau
of Investigation (FBI) maintains a consolidated watch list of
known or suspected terrorists and sends records from the list
to agencies to support terrorism-related screening. Because the
list is an important tool for combating terrorism and because
there have been complaints and criticisms about its
effectiveness, the Subcommittee, the full Committee, and the
House Committee on Homeland Security made a joint request to
GAO to examine: (1) the standards for including individuals on
the list, (2) the outcomes of encounters with individuals on
the list, (3) potential vulnerabilities and efforts to address
them, and (4) actions taken to promote effective terrorism-
related screening.
To conduct this work, GAO reviewed documentation obtained
from and interviewed officials at TSC, the FBI, the National
Counterterrorism Center, the Department of Homeland Security
(DHS), and other agencies that perform terrorism-related
screening. GAO found that the FBI and intelligence community
use standards of reasonableness to evaluate individuals for
nomination to the consolidated watch list. GAO reported that
agencies generally list individuals with known links to
terrorism as well as individuals who are reasonably suspected
of having possible links to terrorism. Because the list
includes individuals with possible, but not known, links to
terrorism, being on the list does not automatically prohibit
the issuance of a visa or entry into the United States.
Instead, agency officials are required to assess the threat
that a particular person poses to determine what action to
take, if any.
GAO reported that, as of May 2007, the consolidated watch
list contained approximately 755,000 records. GAO found that,
from December 2003 through May 2007, screening and law
enforcement agencies encountered individuals who were
positively matched to watch list records approximately 53,000
times. Many of the same individuals were matched multiple
times. The encounters resulted in a wide array of actions,
including arrests, denials of entry into the United States,
and, most often, questioning and release. GAO reported that,
within the Federal community, there is general agreement that
the watch list has helped to combat terrorism by (1) providing
screening and law enforcement agencies with information to help
them respond appropriately during encounters, and (2) helping
law enforcement and intelligence agencies track individuals on
the watch list and collect information about them for use in
conducting investigations and in assessing threats.
Regarding potential vulnerabilities, GAO reported that TSC
sends records daily from the watch list to screening agencies.
GAO noted, however, that some records are not sent, partly
because screening against them may not be needed to support the
respective agency's mission or may not be possible due to the
requirements of various computer programs used to check
individuals against watch list records. GAO reported that some
listed persons had passed undetected through agency screening
processes and were not identified, for example, until after
they had boarded and flew on an aircraft or were processed at a
port of entry and admitted into the United States. TSC and
other Federal agencies have ongoing initiatives to help reduce
these potential vulnerabilities, including efforts to improve
computerized name-matching programs and the quality of watch
list data.
GAO reported that, although the Federal Government has made
progress in promoting effective terrorism-related screening,
additional screening opportunities remain untapped within both
the Federal and private sectors. GAO found that the government
lacked an up-to-date strategy and implementation plan for
optimizing use of the terrorist watch list, and clear lines of
authority and responsibility. GAO concluded that an up-to-date
strategy and implementation plan, supported by a clearly
defined leadership or governance structure, would provide a
platform to establish government-wide screening priorities,
address privacy and civil liberties issues, identify problems,
implement reforms, and assess progress.
R. Additional GAO reports that assisted the Subcommittee during the
110th Congress include the following, which have already been
described in connection with the Subcommittee's hearings.
LThousands of Medicaid Providers Abuse the Tax
System (GAO-08-17), November 14, 2007
LMedicare: Thousands of Medicare Providers Abuse
the Federal Tax System (GAO-08-618), June 13, 2008
LTax Compliance: Businesses Owe Billions in
Federal Payroll Taxes (GAO-08-617), July 27, 2008
S. Additional GAO reports that assisted the Subcommittee during the
110th Congress include the following, which were requested by
multiple parties and which lie within the primary jurisdiction
of other committees.
LNuclear Nonproliferation: Progress Made in
Improving Security at Russian Nuclear Sites, but the Long-term
Sustainability of U.S.-Funded Security Upgrades Is Uncertain
(GAO-07-404), February 28, 2007
LOil and Gas Royalties: Royalty Relief Will Cost
the Government Billions of Dollars but Uncertainty Over Future
Energy Prices and Production Levels Make Precise Estimates
Impossible at this Time (GAO-07-590R), April 12, 2007
LGlobal Nuclear Energy Partnership: DOE Should
Reassess Its Approach to Designing and Building Spent Nuclear
Fuel Recycling Facilities (GAO-08-483), April 22, 2008
AD HOC SUBCOMMITTEE ON STATE, LOCAL, AND
PRIVATE SECTOR PREPAREDNESS AND INTEGRATION
Chairman: Mark L. Pryor
Ranking Minority Member: John E. Sununu
I. Hearings
1. Private Sector Preparedness--Part I: Defining the Problem and
Proposing Solutions (June 21, 2007)
Witnesses: Mr. Alfonso Martinez-Fonts, Assistant Secretary,
Private Sector Office, U.S. Department of Homeland Security
(DHS); Mr. Marko Bourne, Director, Policy and Program Analysis,
Federal Emergency Management Agency (FEMA), U.S. Department of
Homeland Security (DHS); Mr. Duane Ackerman, Chair, Task Force
on Business Response, Business Executives for National
Security; Honorable John Breaux, Former Senator, Co-Chair, Task
Force on Business Response, Business Executives for National
Security; Dr. Richard Andrews, Senior Advisor for Homeland
Security, National Center for Crisis and Continuity
Coordination.
The purpose of this hearing was to examine the status of
public-private collaboration in preparing for and responding to
national catastrophes. For economic reasons, businesses have
long had their own contingency plans in place. Similarly,
Federal, State, and local governments have long operated
emergency management agencies to cope with hazardous material
accidents, disasters caused by extreme weather, and terrorist
incidents. However, the September 11, 2001 terrorist attacks,
combined with Hurricanes Katrina and Rita of 2005, shined a
spotlight on the fact that the private sector and public
disaster management agencies rarely coordinate their actions.
These tragedies revealed problems ranging from an inability of
potential donor companies to find a government point of contact
to accept donated materials, to logistics management that
stopped privately-owned trucks from delivering goods to
disaster zones, to private sector technicians denied access to
the critical infrastructure they were sent to disaster zones to
repair.
A number of post-September 11, 2001, bills have briefly
mentioned the topic of private sector preparedness. Most of
these references instruct DHS or FEMA to ``work with the
private sector'' on projects without providing any guidance on
the specific goals that public-private cooperation should
achieve. The only piece of legislation, at the time of the
hearing, with a specific private sector title was S. 4,
Implementing the 9/11 Commission Recommendations, now Public
Law 110-53. The 9/11 Commission recommended that Congress
provide a set of voluntary preparedness and contingency
planning standards that companies could choose to adopt. Public
Law 110-53 instructs the private sector on how to meet
standards set by the government. However, the law does not
instruct the government on how to cooperate with the private
sector to improve logistics, contracting, training exercises,
or point of contact authorities.
In June 2006, the non-partisan Business Executives for
National Security (BENS) formed a task force to address public-
private coordination. The task force identified the factors
that hindered public-private cooperation in preparedness and
response, and analyzed them in a report entitled, ``Getting
Down to Business: An Action Plan for Public-Private Disaster
Response Coordination.'' The three main findings of this report
are: (1) that the private sector must be integrated
systematically into national preparedness and response efforts,
(2) that commercial supply chains can provide a wider range of
goods and services than government entities, and (3) that
businesses require more predictable regulatory and legal regime
to be effective in contributing to government response efforts.
The findings of this report have sparked debate and increased
interest in public-private partnerships.
The Subcommittee received testimony from five witnesses,
each providing a different perspective. DHS discussed the
activities of its private sector outreach office. FEMA offered
testimony on the steps it has taken to improve coordination
with the private sector on logistics and on FEMA's adoption of
some private sector best practices. The BENS witnesses
discussed the findings and recommendations of their report.
Finally, a representative of the National Center for Crisis and
Continuity Coordination presented a State and local government
perspective.
The sole panel consisted of five witnesses. Mr. Alfonso
Martinez-Fonts discussed DHS's outreach activities and
relationship with private sector advisory councils. Mr. Marko
Bourne explained a number of new initiatives such as efforts
with the private sector. FEMA was implementing to better
coordinate response activities with the private sector. Mr.
Duane Ackerman discussed the main criteria that must be
satisfied to re-establish continuity of community in the wake
of a disaster, including effective communication methods,
logistics, and regulatory authority. He also recommended some
steps that could be taken to coordinate Emergency Operations
Centers (EOCs) that exist at all levels of government, and
Business Operations Centers (BOCs) of large corporations such
as Wal-Mart and Home Depot. Hon. John Breaux, representing
Business Executives for National Security, discussed the
regulatory and legislative steps that the government can take
to improve coordination with the private sector. He highlighted
some recommendations that have already been incorporated into
policy by FEMA or DHS, and identified additional action steps
that could further national preparedness efforts.The fifth
witness was Dr. Richard Andrews who recently completed a survey
of States' activities to integrate the private sector into
planning and response councils. He discussed his findings,
including the factors that facilitate public-private
cooperation at the State level and those that hinder it.
2. Private Sector Preparedness--Part II: Protecting Our Critical
Infrastructure (July 12, 2007)
Witnesses: Colonel Robert Stephan, Assistant Secretary for
the Office of Critical Infrastructure Protection, U.S.
Department of Homeland Security (DHS); Ms. Eileen Larence,
Director of Homeland Security and Justice Issues Division, U.S.
Government Accountability Office (GAO); Colonel Kenneth Watson,
Vice President, Partnership for Critical Infrastructure
Security and Senior Manager, Critical Infrastructure Insurance
Group, Cisco Systems.
The purpose of this hearing was to examine the state of
public-private collaboration in identifying, prioritizing, and
protecting our country's critical infrastructure.
Critical infrastructure is defined as the array of physical
assets, functions, information, and systems that support
activities that are crucial to the day-to-day functioning and
security of our country. It includes socioeconomic functions
ranging from the transportation of goods and people, to
communications, financial services, and electricity
distribution. These functions are often so interconnected that
an attack or accident affecting one could have ramifications
for many. However, for purposes of protection and risk
analysis, they have been divided into 17 individual sectors.
The 17 sectors and their lead Federal coordinating agencies
include: Sector and Department/Agency
Ag/food/farming, Agriculture; Banking and Finance,
Treasury; Drinking Water/Water Treatment, EPA; Public Health
and Healthcare, HHS; Defence Industrial Base, Defence; National
Monuments and Landmarks, Interior; Energy (includes both
electricity and oil/natural gas), Energy; Transportation
(includes rail, highways, maritime, air, and public mass
transit), Postal and Shipping, Information Technology,
Telecommunications, Nuclear reactors, Material, and Waste,
Chemical, Emergency Services, Dams, Commercial Facilities, and
Government Facilities, all under DHS.
A variety of Congressional statutes and Presidential
Directives have placed the responsibility of coordinating the
Nation's critical infrastructure protection efforts with DHS.
In response, DHS issued the National Infrastructure Protection
Plan (NIPP) on June 30, 2006. The NIPP is a base plan that
serves as a road map for how DHS and other relevant
stakeholders should use risk management principles to
prioritize protection activities within and across various
sectors. It required government agencies and corresponding
private sector leaders in each of 17 critical sectors to form
advisory councils to direct preparedness efforts and submit a
sector-wide plan to DHS.
This hearing focused on both the general issue of public-
private coordination for Critical Infrastructure Protection,
and on how well the sector specific plans contribute to a
broader strategy for critical infrastructure protection. The
sole panel consisted of three witnesses. Colonel Robert Stephan
discussed the activities of DHS Critical Infrastructure
Protection Office. He also gave an overview of his Department,
the NIPP, and the Department's relationship with the 17
sectors. GAO representative Ms. Eileen Larence presented the
results of its recent investigation into the NIPP and 17
sector-specific plans. Third, Colonel Kenneth Watson, a
representative of the Partnership for Critical Infrastructure
Security, the body coordinating the efforts of all 17 sector-
specific coordinating councils, testified and identified
strengths and weaknesses in the public-private relationship.
3. Pandemic Influenza: State and Local Efforts to Prepare (October 3,
2007)
Witnesses: Hon. Rear Admiral W. Craig Vanderwagen,
Assistant Secretary for Preparedness and Response, U.S.
Department of Health and Human Services (DHHS); Dr. Tilman
Jolly, Associate Chief Medical Officer, U.S. Department of
Homeland Security (DHS); Dr. Paul Halverson, Director and State
and Health Officer, Arkansas Department of Health; Mr.
Christopher Pope, Director of Homeland Security and Emergency
Management, New Hampshire Department of Safety; Ms. Yvonne
Madlock, National Association for County and City Health
Officials.
The purpose of this hearing was to determine whether and
how the Federal Government can help facilitate State and local
preparedness for pandemic flu. Although the avian flu strain
has not yet achieved the ability to transmit through person-to-
person contact, increased transmission among poultry
populations has raised concerns that a mutation could cause a
human flu pandemic. It is critical that we identify in advance
the problems State and local partners would face in responding
to this crisis.
Panel one consisted of two Federal witnesses. Rear Admiral
Craig Vanderwagen discussed the progress of the DHHS Office of
Preparedness and Response, as well steps his office is taking
to coordinate public health preparedness across all levels of
government. Dr. Tilman Jolly reported on the progress of the
new DHS Office of Health Affairs in coordinating with relevant
departments within DHS (such as FEMA, the Private Sector
Office, the Office of Critical Infrastructure Protection, the
Homeland Security Advisory Council, etc.) as well as with other
Federal agencies, and State and local agencies.
Panel two consisted of State and local witnesses. Dr. Paul
Halverson, from the Arkansas Department of Health, discussed a
variety of State pandemic flu planning concerns. Mr.
Christopher Pope, from the New Hampshire Department of Health,
commented on the considerations of State and regional emergency
planners in planning for pandemic flu. As a former fire chief,
he has a unique perspective on the role of first responders in
a health crisis. Ms. Yvonne Madlock, from the National
Association for County and City Health Officials, described the
pandemic flu planning considerations from the county
perspective.
4. Not a Matter of ``If,'' But of ``When'': The Status of U.S. Response
Following a RDD Attack (November 15, 2007)
A joint hearing was held with the Oversight of Governmental
Management, the Federal Workforce, and the District of Columbia
Subcommittee and the Ad Hoc Subcommittee on State, Local, and
Private Sector Preparedness and Integration.
Witnesses: Mr. Eugene E. Aloise, Director, Natural
Resources and Environment, U.S. Government Accountability
Office (GAO); Mr. Glenn M. Cannon, Assistant Administrator for
Disaster Operations, Federal Emergency Management Agency
(FEMA), U.S. Department of Homeland Security (DHS); Dr. Steven
Aoki, Ph.D., Deputy Undersecretary of Energy for
Counterterrorism, Department of Energy/National Nuclear
Security Administration (NNSA), U.S. Department of Energy
(DOE); Dr. Kevin Yeskey, M.D., Deputy Assistant Secretary for
Preparedness and Response, U.S. Department of Health and Human
Services (DHHS), accompanied by: Dr. Richard J. Hatchett, MD,
Associate Director for Radiation Countermeasures Research and
Emergency Preparedness, National Institute for Allergy and
Infectious Disease (NIAID), National Institute of Health (NIH),
U.S. Department of Health and Human Services (DHHS); Mr. Thomas
P. Dunne, Associate Administrator for Homeland Security,
Environmental Protection Agency (EPA); Mr. Kenneth Murphy,
Director, Oregon Department of Emergency Management; Mr. Wayne
Tripp, Program Manager, Domestic Preparedness Equipment
Training Assistance Program; Dr. Thomas Tenforde, National
Council on Radiation Protection and Measurements.
The hearing examined our national level of preparedness to
respond to a terrorist attack using a radiological dispersion
device (RDD) or ``dirty bomb.'' The hearing looked specifically
at how DHS coordinates with other agencies within the Federal
Government, such as DOE and DHHS, and the capabilities these
and other agencies have to address the health and environmental
consequences of such an attack. The hearing examined the
ability of regional, State, and local governments to respond to
a dirty bomb attack.
The first panel was comprised of representatives from
Federal agencies that have responsibility under the ``Nuclear/
Radiological Incident Annex'' of the National Response Plan for
radiological preparedness and response. In its September 2006
report entitled ``Federal Efforts to Respond to Nuclear and
Radiological Threats and to Protect Emergency Response
Capabilities Could be Strengthened,'' the GAO examined the
capabilities of one of those agencies, the DOE. GAO concluded
that physical security measures in place at DOE's two key
emergency response facilities may not be adequate to protect
them against a terrorist attack. Further, GAO found that key
tools that could be used to help detect radiological threats in
U.S. cities more quickly and to measure radiation levels after
a radiological attack to assist in, and reduce the costs of
cleanup efforts are not being used because neither agency
charged with radiological response, DOE and DHS, has mission
responsibility for funding and conducting such surveys.
First, Mr. Eugene Aloise discussed GAO's findings of the
report, NNSA's response, and relevant developments since the
report was issued in 2006. Next, Mr. Glenn Cannon discussed how
DHS would coordinate the Federal response to a RDD attack,
using as examples the results of the recent TOPOFF IV national
exercise, and other means to ensure that the Federal response
is well coordinated. He also explained what capabilities DHS
maintains to conduct the requisite analyses, including dose
reconstruction for medical interventions for victims of the
attack, and technical nuclear forensics to determine the origin
of material used in the attack, in line with the National
Planning Scenario #11, Radiological Attack--Radiological
Dispersal Device. Mr. Glenn Cannon ended his testimony with how
DHS coordinates with State and local level entities in the
aftermath of a RDD attack. Third, DOE representative Dr. Steven
Aoki discussed the capabilities that NNSA has to respond to a
radiological attack, measures it has taken to implement the
recommendations of the September 2006 GAO report, and how it
would coordinate with DHS, the EPA, and State and local
governments in the aftermath of such an attack. Also, he
explained the capabilities NNSA has to perform analyses to help
identify doses received by individuals to facilitate
appropriate medical intervention, and to help identify the
source of radioactive material used in such an attack. The
fourth witness, Dr. Kevin Yeskey accompanied by Dr. Richard
Hatchett, testified on DHHS's preparedness specific to
radiation events and the initial observations by DHHS through
its participation in the TOPOFF IV exercise, which involved
several simulated attacks using Radiologic Dispersal Devices.
Fifth, Mr. Thomas Dunne discussed the capabilities EPA has to
take over a site that has been contaminated by radiation
following such an attack, how it would handle the turnover from
DOE, and how EPA would coordinate with State and local entities
to ensure that the public is aware of such clean-up activities.
He also discussed the technologies EPA has available to conduct
such a cleanup, using as examples the results of the recent
TOPOFF IV national exercise, in line with the National Planning
Scenario #11, Radiological Attack--Radiological Dispersal
Device.
The second panel included implementers of preparedness and
protection plans who gave their views on the successes and
continuing challenges of RDD response at the State and local
levels. Critical infrastructure owner/operators have worked
closely with local law enforcement officials to increase
perimeter security. The hearing looked at ``hard protections''
as well as advances in technology, employee screening, and
medical response procedures. It also examined the training
programs in place to ensure that first responders can identify
and respond quickly to an RDD detonation site.
On the second panel, Mr. Kenneth Murphy, representing
Oregon Department of Emergency Management, testified on the
coordination of response efforts between local, State, and
private sector entities and the Federal Government during the
recent TOPOFF IV exercise. He also discussed lessons learned
related to first responders as well as recommendations for
improving the participation of the private sector in RDD
preparedness and response efforts. Next, Mr. Wayne Tripp,
representing the Domestic Preparedness Equipment Technical
Assistance Program, discussed the types of radiological
detection equipment available, the proficiency of responders,
and community and hospital decontamination programs that could
help prevent the spread of radiological materials in the
aftermath of a RDD attack. Finally, Dr. Thomas Tenforde
discussed the findings of NCRP's landmark 2001 report
``Management of Terrorist Events Involving Radioactive
Material'' and subsequent work in this area, including the
psychosocial effects of a radiological terrorist incident,
public communication in the aftermath of such an incident, and
any regional, State, and local level coordination of public
outreach and preparedness efforts.
5. The New Madrid Seismic Zone: Whose Fault Is It Anyway? (December 4,
2007)
Witnesses: Mr. Glenn M. Cannon, Assistant Administrator for
Disaster Operations, Federal Emergency Management Agency
(FEMA), U.S. Department of Homeland Security (DHS); Dr. Jack
Hayes, Director, National Earthquake Hazard Reduction Program
(NEHRP), National Institute of Standards and Technology (NIST);
Dr. David Applegate, Senior Science Advisor for Earthquakes and
Geological Hazards, U.S. Geological Survey (USGS); Mr. David
Maxwell, Director, Arkansas Department of Emergency Management;
Mr. Callen Hayes, Crisis Management Coordinator, Memphis Light,
Gas, and Water.
The purpose of this hearing was to assess mitigation and
response plans in the event of an earthquake along the New
Madrid fault line. The hearing focused on the predicted outcome
of a significant earthquake in this region and the efforts of
Federal, State, and local officials to prepare for such an
event. The hearing also examined Federal Guidance to State and
local officials as well as the ways in which States were
forming regional partnerships in advance of this situation.
In the first panel, Mr. Glenn Cannon testified about FEMA's
development and execution of interagency plans, policies, and
procedures for response operations to an earthquake along the
New Madrid fault line. He offered information about
coordination among the relevant Federal agencies that are
involved in the mitigation, planning and response efforts in
regard to an earthquake along the New Madrid fault line as well
as coordination with State and local governments. Next, Dr.
Jack Hayes spoke about the state of coordination between
Federal agencies and improvements NIST has made since taking on
primary responsibility for NEHRP. He also discussed the
division of responsibilities in regard to planning, mitigation,
and response efforts of an earthquake along the New Madrid
fault line. Third, Dr. David Applegate, from the USGS, gave an
overview of his work in monitoring and notification of seismic
activity. He testified about the differences between the New
Madrid fault line and other fault lines around the country--
especially those physical differences in geology and the
psychosocial differences in communities.
In the second panel, Arkansas Department of Emergency
Management Director, Mr. David Maxwell, offered information
about preparedness efforts at the State level and coordination
of those efforts with local first responders and government
officials. He also testified about regional efforts to mitigate
the risk posed by a major earthquake along the New Madrid fault
line. Next, Mr. Callen Hayes spoke about the work that Memphis
Light, Gas and Water has done in terms of preparing for,
mitigating the effects of and responding to an earthquake along
the New Madrid fault line. As a critical infrastructure
representative he offered information about the risks posed by
the earthquake hazard and how those risks have influenced
Memphis, Light, Gas and Water's business plan.
6. Is Housing Too Much to Hope For?: FEMA's Disaster Housing Strategy
(Mar. 4, 2008)
A joint hearing was held with the Ad Hoc Subcommittee on
Disaster Recovery and the Ad Hoc Subcommittee on State, Local,
and Private Sector Preparedness and Integration.
Witnesses: Admiral Harvey E. Johnson, Jr., Deputy
Administrator, Federal Emergency Management Agency (FEMA), U.S.
Department of Homeland Security (DHS); Dr. Howard Frumkin,
Director, National Center for Environmental Health Agency for
Toxic Substances and Diseases, Center for Disease Control
(CDC); Mr. Milan Ozdinec, Deputy Assistant Secretary, Public
Housing and Voucher Programs, U.S. Department of Housing and
Urban Development (HUD).
This hearing examined FEMA's progress towards the
completion of the National Disaster Housing Strategy, which was
required by Public Law 109-295, the Post Katrina Emergency
Management and Reform Act (PKEMRA). The hearing looked at the
strategy itself, the Disaster Housing Assistance Program's
(DHAP) transition progress, the formaldehyde testing and
evaluation of FEMA temporary housing units, and other post-
disaster housing options.
In panel one Admiral Harvey Johnson addressed FEMA's
overarching plan to provide emergency and long-term recovery
housing to victims of natural and man-made disasters,
particularly the timeframe for resolving the question of travel
trailer use, as well as how this and other issues have delayed
production of the National Disaster Housing Strategy. Second,
Dr. Howard Frumkin discussed CDC's collaboration with FEMA to
complete the formaldehyde testing of 519 travel trailers, park
models, and mobile homes, as well as the timeframe for applying
the findings beyond the initial test cases. Third, Mr. Milan
Ozdinec addressed HUD's involvement in providing disaster
related housing, including the progress of the current
activities, HUD's future roles and responsibilities in disaster
housing, and HUD's involvement in the development and
implementation of the National Disaster Housing Strategy.
7. Focus on Fusion Centers: A Progress Report (April 17, 2008)
Witnesses: Captain Charles Rapp, Director, Maryland
Coordination and Analysis Center; Mr. Matthew Bettenhausen,
Homeland Security Advisor, State of California; Mr. Russell
Porter, Director, Iowa Intelligence Fusion Center; Ms. Eileen
Larence, Director, Homeland Security and Justice, U.S.
Government Accountability Office (GAO); Mr. Vance Hitch, Chief
Information Officer, U.S. Department of Justice (DOJ); Mr. Jack
Tomarchio, Principal Deputy Assistant Secretary, Office of
Intelligence and Analysis, U.S. Department of Homeland Security
(DHS).
The purpose of this hearing was to assess the role of the
Federal Government in coordinating with and providing guidance
to fusion centers. It examined the successes of fusion centers
in facilitating information sharing between various Federal and
State partners as well as remaining challenges to fusion center
missions, collaboration, or sustainability.
In panel one Maryland Coordination and Analysis Center
representative Captain Charles Rapp testified on day-to-day
management, benchmarks for success, coordination between
satellite fusion centers within States and between centers
across the country, as well as next steps for fusion centers.
Mr. Matthew Bettenhausen testified about achievement of
coordinated Federal support for the Nation's fusion centers,
his evaluation of cooperation between local and State fusion
centers as well as inter-state information sharing, and the
integration of critical infrastructure concerns and private
sector partners into the intelligence gathering process. He
also assessed the factors that contribute to a successful
fusion center and offered recommendations on improving the
network of fusion centers. Mr. Russell Porter discussed day-to-
day management at the Iowa Intelligence Fusion Center as well
as next steps for fusion centers.
In panel two, GAO's Ms. Eileen Larence assessed the factors
that contribute to a successful fusion center and those that
inhibit fusion center creation or maintenance. She also spoke
about whether and how the Federal Government should continue to
assist fusion center development. DOJ's Mr. Vance Hitch and
DHS's Mr. Jack Tomarchio both testified on how to best achieve
coordinated Federal support for State and local fusion centers.
They spoke specifically of the factors that contribute to a
successful information sharing center that enhances law
enforcement priorities.
8. It Takes a Village: Community Preparedness (June 5, 2008)
Witnesses: Mr. Dennis Schrader, Deputy Administrator,
National Preparedness Directorate, Federal Emergency Management
Agency (FEMA), U.S. Department of Homeland Security (DHS); Mr.
Russell Decker, Director, Office of Homeland Security and
Emergency Management and First Vice President of the
International Association of Emergency Managers; Ms. Suzy
DeFrancis, Chief Public Affairs Officer, American Red Cross.
The purpose of the hearing was to assess the ability of
various Federal and non-Federal outreach programs to prepare
our citizens and communities for natural or man-made disasters.
The Subcommittee was interested in determining whether
additional communications and outreach programs are necessary,
and if so, what types of approaches best achieve the goal of
enabling private citizens to contribute to an overarching
homeland security strategy.
FEMA's Mr. Dennis Schrader gave an overview of Ready.gov
and the Citizen Corps programs. Second, from the International
Association of Emergency Managers, Mr. Russell Decker gave an
overview of local preparedness programs. Third, Ms. Suzy
DeFrancis gave an overview of the American Red Cross
preparedness programs. All the witness testified about the
factors that contribute to successful community preparedness
programs and their recommendations for continued improvement of
the network of programs.
9. Mission Possible: FEMA's Future Preparedness Planning (September 24,
2008)
Witnesses: Mr. Marko Bourne, Director, Policy and Program
Analysis, Federal Emergency Management Agency (FEMA), U.S.
Department of Homeland Security (DHS); Ms. Nancy Dragani,
President, National Emergency Management Association (NEMA);
Mr. Larry Gispert, President, International Association of
Emergency Managers (IAEM); Ms. Jane Bullock, Former Chief of
Staff, Federal Emergency Management Agency (FEMA), U.S.
Department of Homeland Security (DHS).
The purpose of this hearing was to assess FEMA's planning
as it relates to preparedness programs. The hearing focused on
FEMA's mission plans and processes as well as the agency's
efforts to involve State and local partners in policy changes.
Mr. Marko Bourne testified on FEMA's coordination with
State and local preparedness partners. He discussed the role of
the 10 FEMA Regional offices and their outreach to State and
local governments. Mr. Marko Bourne spoke of the ability of
FEMA and State and local emergency managers to respond and
coordinate response efforts in the event of a natural disaster
during periods of political change. Next, Ms. Nancy Dragani
testified on behalf of NEMA about State-level preparedness
planning and coordination of efforts with stakeholders at all
levels of government. She also discussed the ways in which FEMA
can continue to support its State and local partners over the
coming year. Third, Mr. Larry Gispert testified on behalf of
IAEM on local-level preparedness planning and coordination of
efforts with stakeholders at all levels of government. Fourth,
former FEMA chief of staff, Ms. Jane Bullock, discussed best
practices in remaining prepared for disasters during periods of
political change. She discussed how FEMA, along with State and
local partners, could adapt preparedness programs and
activities to any potential changes in policy, regional
coordination, and organization.
II. Legislation
S. 47--Law Enforcement Assistance Force Act of 2007 or the
``LEAF Act''
Senator John Ensign (R-NV) introduced S. 47 on January 4,
2007. The bill was referred to the Senate Homeland Security and
Governmental Affairs Committee. S. 47 aimed to establish a Law
Enforcement Assistance Force in the Department of Homeland
Security to facilitate the contributions of retired law
enforcement officers during major disasters. It was referred to
the Subcommittee on State, Local, and Private Sector
Preparedness and Integration on March 30, 2007.
AD HOC SUBCOMMITTEE ON DISASTER RECOVERY
I. Hearings
1. GAO's Analysis of the Gulf Coast Recovery: A Dialogue on Removing
the Obstacles to the Recovery Effort, April 12, 2007 (Printed,
134 pp. S. Hrg. 110-292.)
Witnesses: Mr. Stanley Czerwinski, Director of Strategic
Issues, U.S. Government Accountability Office (GAO); Chairman
Donald Powell, Federal Coordinator for Gulf Coast Rebuilding,
U.S. Department of Homeland Security (DHS); Ms. Donna Fraiche,
Chairman, Long-Term Community Planning Task Force, Louisiana
Recovery Authority; Hon. John Thomas Longo, Mayor, City of
Waveland, Mississippi; Dr. Edward J. Blakely, Executive
Director for Recovery Management, City of New Orleans; Mr.
Ernie Broussard, Executive Director, Cameron Parish Planning
and Development Authority.
The Subcommittee's first hearing featured GAO's preliminary
findings on Gulf Coast Recovery efforts. GAO's significant
findings are that:
(1) A relatively small portion of Federal Gulf Coast
assistance is targeted to long-term rebuilding, while estimates
of loss suggest great need;
(2) Two key Federal programs (Public Assistance and
Community Development Block Grants (CDBG)) that provide long-
term rebuilding resources use different approaches;
(3) Louisiana and Mississippi target the majority of their
CDBG funds to homeowners, but differ in policies and
procedures;
(4) Louisiana's homeowner assistance program aims to
restore a displaced population;
(5) Mississippi's homeowner assistance program aims to
compensate losses;
(6) Louisiana and Mississippi are engaged in planning
activities, while the Federal Government has assumed a
coordination role.
The first panel highlighted several key rebuilding issues
and challenges facing the Gulf Coast. The Federal Coordinator
responded to these issues and described his office's efforts to
coordinate and lead rebuilding efforts, including measuring
progress and providing oversight.
The second panel provided the Subcommittee with information
on how States and localities have developed and implemented
policies regarding rebuilding issues, such as the use of CBDG
funds for housing. The Director of Disaster Recovery for the
Mississippi Development Authority accepted an invitation to
attend, but was unable to join the hearing due to an unforeseen
work obligation. Because the Mississippi Emergency Management
Agency (MEMA) and the Mississippi Governor's Office of Recovery
and Renewal were unable to provide a replacement, the
Subcommittee accepted a statement from Mr. Bryan McDonald,
Executive Director of the Mississippi Governor's Office of
Recovery and Renewal, and was placed on the record.
The second half of this panel provided the Subcommittee
with a range of local government, non-profit, and other
perspectives. Specifically, these panelists shared first-hand
knowledge of rebuilding issues, including the Federal Emergency
Management Agency's Public Assistance Program, local planning
efforts, and challenges facing local decisionmakers such as
mayors and parish presidents.
2. Beyond Trailers: Creating a More Flexible, Efficient, and Cost-
Effective Federal Disaster Housing Program, April 24, 2007
(Printed, 165 pp. S. Hrg. 110-302)
Witnesses: Mr. David E. Garratt, Acting Director of
Recovery, Federal Emergency Management Agency (FEMA), U.S.
Department of Homeland Security (DHS); Mr. Robert Hebert,
Director of Hurricane Recovery , Charlotte County, Florida; Ms.
Sheila Crowley, President and Chief Executive Officer, National
Low Income Housing Coalition; Colonel William Croft (Retired),
Director of Response and Recovery, The Shaw Group, Inc.; Mr.
Matthew Jakacki, Inspector of Gulf Coast Recovery, Federal
Emergency Management Agency (FEMA), U.S. Department of Homeland
Security (DHS); Mr. Gil Jamieson, Deputy Director for Gulf
Coast Recovery, Federal Emergency Management Agency (FEMA),
U.S. Department of Homeland Security (DHS); Major General John
R. D'Araujo, Jr. (U.S. Army Retired), Primary Selection
Officer, Alternative Housing Pilot Program; Mr. Andres Dunany,
Founding Principa, Dunany, Plater-Qyberk and Company,
Architects and Town Planners; Mr. John Badman III, Chief
Executive Officer, RE: Formed Systems, Inc.
The hearing examined the Stafford Act's disaster housing
program.
The first panel addressed the Alternative Housing Pilot
Project grant. The panel focused upon the Katrina Cottage
program, Congress' original intent in creating it, program
implementation by FEMA, and the award allocations, of which
there are questions as to whether it satisfies Congressional
intent. As a result of some of the challenges FEMA faced while
delivering disaster housing assistance, Congress created the
Alternative Housing Pilot Program in the fourth emergency
supplemental appropriations bill last year to better serve
housing needs and spur new alternatives to the traditional
trailers. This pilot program received $400 million for the
``hardest hit areas'' from the 2005 hurricanes. The program's
goals were to provide immediate housing to evacuees and to
prompt FEMA to look beyond its existing model, which only
permits temporary housing projects.
The second panel addressed problems with trailers and
rental assistance provided under the Stafford Act through FEMA.
The panel focused on Section 408 assistance, which is also
referred to as the Individual and Households Program (IHP). In
the first year after Hurricanes Katrina and Rita, FEMA's
attempts to transition people from the 403 Sheltering Program
to the 408 Housing Program caused significant problems. Many
individuals were forced out of their disaster housing when FEMA
determined that their homes did not meet Section 408's damage
requirements, although a subsequent lawsuit reversed many of
these evictions.
Louisiana has 56,668 disaster victims in trailers and 9,412
receiving rental assistance. Mississippi has 27,198 victims
living in trailers and 557 receiving rental assistance. These
are very high numbers for events that occurred nearly two years
ago. Problems with FEMA's trailer program include locating
sites for multi-trailer ``parks,'' park maintenance, utility
hookup difficulties, and trailer procurement/storage/
distribution. Inefficiencies in the latter category led to
thousands of trailers wasting away, as evidenced by the
situation in Hope, Arkansas.
3. The Road Home? An Examination of the Goals, Costs, Management, and
Impediments Facing Louisiana's Road Home Program, May 24, 2007
(Printed, 232 pp. S. Hrg. 110-249.)
Witnesses: Mr. Donald E. Powell, Federal Coordinator for
Gulf Coast Rebuilding, U.S. Department of Homeland Security
(DHS); Mr. Nelson Bregon, Assistant Deputy Secretary, U.S.
Department of Housing and Urban Development (HUD); Mr. David
Maurstad, Mitigation Directorate, Federal Emergency Management
Agency (FEMA), U.S. Department of Homeland Security (DHS); Mr.
Walter Thomas, Resident, Lower 9th Ward; Ms. Connie Uddo,
Administrator, St. Paul Beacon of Hope Organization; Ms. Debbie
Gordon, President, Chimneywood Homeowner's Association; Mr.
Frank Silvestri, Co-Chairman, Citizens' Road Home Action Team,
Frank Trapani, President, New Orleans Metropolitan Association
of Realtors; Mr. Andy Kopplin, Executive Director, Louisiana
Recovery Authority; Ms. Suzie Elkins, Executive Director,
Office of Community Development; Isabel Reiff, Senior Vice
President, Social Programs and Strategic Communications, ICF
The hearing examined problems caused by the use of project
worksheets by FEMA's Public Assistance Program. We heard from
FEMA, as well as from State officials and parish leaders. The
panels discussed concerns and frustrations directly from
program applicants, as well as the shortcomings of Federal and
State governmental actors charged with administering the
program. The Subcommittee examined issues ranging from
underestimated rebuilding costs to delays caused by the
requirement of numerous documents. The hearing highlighted the
impact of these problems on the Gulf Coast recovery as well as
recoveries from past storms.
The first panel addressed problems that FEMA has identified
with the Project Worksheets process as well as steps FEMA has
taken to address the related concerns of State and local
applicants. This DHS panel also indicated the time needed to
complete appeals of FEMA decisions as well as the time needed
to complete project worksheets and allocate money to the State.
The second panel addressed problems that their parishes
experienced with the Public Assistance Program and its use of
project worksheets. They discussed the impact of project
worksheets on local recovery efforts and on overall allocations
of public assistance dollars. They also highlighted the most
pressing problems with the program as they see them, and made
recommendations that they believe could improve the
administration of the program and make it easier to navigate.
The third panel discussed their roles as State-level
administrators of the Public Assistance Program. They addressed
the impact of project worksheets on rebuilding and repairing
State-run public buildings and critical infrastructure. This
panel also focused on the role they play in the administrative
process and the difficulties presented by project worksheets in
disbursing Federal funds to local entities.
4. FEMA's Project Worksheets: Addressing a Prominent Obstacle to the
Gulf Coast Rebuilding, July 10, 2007. (Printed, 92 pp. S. Hrg.
110-404)
Witnesses: Hon. C. Ray Nagin, Mayor, City of New Orleans;
Kevin Davis, President, St. Tammary Parish, Louisiana; Colonel
Jeff Smith, Acting Director, Governor's Office of Homeland
Security and Emergency Preparedness; Mr. Bryan McDonald,
Executive Director, Mississippi Governor's Office of Recovery
and Renewal; Mr. Mark Merritt, Senior Vice President of
Response and Recovery, James Lee Witt Associates; Mr. James
Walke, Director, Public Assistance Division, Disaster
Assistance Directorate, Federal Emergency Management Agency
(FEMA), U.S. Department of Homeland Security (DHS)
The purpose of this hearing was to hear testimony on FEMA's
administration of its Public Assistance Program, which focused
on project worksheets that by all accounts have become a major
obstacle to Gulf Coast rebuilding efforts and rebuilding
efforts of past disasters. Many issues ranging from
underestimated rebuilding projects to the requirement to
produce huge numbers of documents, have resulted in enormous
delays in reimbursements from the Public Assistance Program to
localities working feverishly to rebuild important public
infrastructure. The hearing highlighted the impact of this
problem on the Gulf Coast Recovery, as well as recoveries from
past storms.
The first and second panel addressed problems that the
parishes experienced with FEMA's Public Assistance Program and
its use of project worksheets. The witnesses discussed the
impact of project worksheets on Gulf Coast recovery efforts and
on overall allocations of public assistance dollars.
Panel three discussed issues that FEMA had identified with
the Project Worksheets process as well as steps FEMA has taken
to address the related concerts of State and local applicants.
Mr. Walke also addressed the timeline it takes to complete
appeals of FEMA decisions, and the average time it takes to
complete project worksheets and allocate money to a State.
5. The State and Federal Response to Storm Damage and Erosion in
Alaska's Coastal Villages, Oct. 11, 2007. Field Hearing in
Anchorage, Alaska. (Printed, 140 pp. S. Hrg. 110-486)
Witnesses: Brigadier General John W. Peabody, Commander,
Pacific Ocean Division, U.S. Army Corps of Engineers; Mr. John
Madden, Director, Division of Homeland Security and Emergency
Management, State of Alaska; Ms. Susan Reinertson, Regional
Administrator, Federal Emergency Management Agency Region X
(FEMA), U.S. Department of Homeland Security (DHS); Ms. Colleen
E. Swan, Tribal Administrator, Kivalina Alaska; Stanley Tom,
Tribal Administrator, Newtok, Alaska; Mr. Tony Weyiouana Sr.,
Village Transportation Planner, Shishmaref, Alaska; Mr. Steve
Ivanoff, Village Transportation Planner, Unalakleet, Alaska
This field hearing's purpose was to discuss State and
Federal efforts to prevent and respond to the massive storm
damage and erosion that Alaska's coastal villages are suffering
at an alarming rate. The Army Corps of Engineers and a 2003
Government Accountability Office (GAO) report found that
flooding and erosion impact an estimate of 184 out of 213, or
86 percent, of Alaska Native villages are threatened by
erosion, and have found that Kivalina, Shishmaref and Newtok
must be relocated within the next 10 years due to the severity
of the damage in those villages. The cost of relocating these
villages ranges from $100 million to $400 million.
Federal, State and local entities share responsibility for
protecting these areas from flooding and erosion. The U.S. Army
Corps of Engineers is responsible for planning and constructing
stream bank and shoreline erosion protection and flood control
structures. Most recently, they have supplied Kivalina with
super sacs to protect their shoreline during large storms. The
Army Corps has also built an erosion mitigation wall along the
shore in Shishmaref. Other Federal agencies such as the
Department of Transportation and Housing and Urban Development
have the responsibility to protect certain infrastructure from
flooding and erosion.
The State Division of Emergency Services responds to State
disaster declarations when communities require assistance.
Local governments such as the North Slope Borough have also
funded erosion and flood protection projects. Alaska Native
villages have traditionally faced difficulties qualifying for
assistance under some Federal programs because of the cost/
benefit analysis. The cost of construction in remote Alaska
villages is very high, making it more difficult for these areas
to meet the Corps' cost/benefit requirements.
The GAO report offers several alternatives for Congress to
consider when responding to the needs of these villages.
1. Expand the Role of the Denali Commission by directing
that Federal funding for flood and erosion projects go through
the commission. The commission could set priorities and
establish programs for flood and erosion projects that would
otherwise not qualify for funding under the Corps. Additional
funding for the Denali Commission may be required for this
alternative. The Denali Commission has been hesitant to take on
this role for fear that it would stretch their funds too thin,
making it difficult to respond to other needs in rural Alaska
such as health clinics.
2. Direct the Corps to include social and environmental
factors in their cost/benefit analysis for flooding and erosion
projects in Alaska Native villages, including subsistence
living. This alternative could have an impact on the amount of
fund and resources that the Corps has available for these
projects, depending on the number of villages that may qualify
for a study or project under this alternative.
3. Waive the Federal cost-sharing requirement for flooding
and erosion projects in Alaska native villages. This is done in
some cases already, but not all. In cases where cost sharing is
not exempt, it is usually 50-50.
4. Authorize the bundling of funds from various agencies.
This would reduce administrative costs by consolidating
administrative functions.
All the witnesses discussed the problems of erosion in
Alaska, as well as actions currently being taken to curtail the
effects of erosion. All suggested possible solutions for the
future.
6. Post-Catastrophic Crisis: Addressing the Dramatic Need and Scant
Availability of Mental Health Care in the Gulf Coast, Oct. 31,
2007. (Printed, 176 pp. S. Hrg. 110-481)
Witnesses: Ms. Kathryn Power, M.Ed., Director, Center for
Mental Health Services, Substance Abuse and Mental Health
Services; Dr. Anthony Speier, Director, Disaster Mental Health
Operations, Louisiana Office of Mental Health; Dr. Jan
Kasofsky, Executive Director, Capital Area Human Services
District; Dr. Kevin U. Stephens, M.D., J.D., Director, New
Orleans Health Department; Dr. Ronald Kessler, Professor of
Health Care Policy, Harvard Medical School; Dr. Howard Osofsky,
M.D., Ph.D., Chairman, Department of Psychiatry, LSU Health
Sciences Center; Dr. Mark Townsend, M.D., Director of
Psychiatry, Medical Center of Louisiana at New Orleans.
The purpose of this hearing was to examine the ongoing
mental health crisis in the Gulf Coast region. As communities
struggle to recover, survivors continue to suffer with mental
health problems ranging from slight depression to suicidal
thoughts. In the time since Hurricanes Katrina and Rita, mental
illness rates have steadily increased as the long-term
realities of the recovery become part of everyday life for
survivors. The traumatic events of Hurricane Katrina--loss of
homes, jobs, death of loved ones, separating of families--took
a heavy toll on survivors, resulting in Post-Traumatic Stress
Disorder (PTSD), nightmares, and other immediate symptoms of
distress. Furthermore, the frustratingly slow pace of recovery
combined with inadequate mental health resources has resulted
in a growing, unparalleled public mental health crisis among
the survivors. This lack of mental health infrastructure has
emerged as among the most critical issues facing the recovery,
rebuilding, and restoration of lives. Harvard professor of
health care policy Dr. Ronald Kessler recently told the
Washington Post, ``It's really stunning in juxtaposition to . .
. other disasters, or after people have been raped or mugged.''
Typically, ``people have a lot of trouble the first night and
the first month afterward. Then you see a lot of improvement.
However, with the rebuilding process in New Orleans going
slowly, residents are in this stage of where there are a lot of
people just kind of giving up.''
The first panel was Ms. Kathryn Power who discussed studies
Substance Abuse and Mental Health Services Administration
(SAMHSA) has undertaken to document the extent and severity of
mental health illness in the Gulf Coast, as well as the steps
SAMHSA has taken to improve the situation. She also discussed
funding, legal, and regulatory obstacles that have prevented
the mental health needs of survivors from being met.
Witnesses on the second panel discussed problems from the
State and local perspective. Dr. Anthony Speier discussed
obstacles he encountered with funding and related challenges.
Dr. Jan Kasofsky highlighted the impact of personnel shortages
on the quality of mental health care in the affected region.
She also discussed the ways in which her organization has
struggled to meet mental health challenges head-on. Last, Dr.
Kevin Stephens discussed the overall mental health situation in
Louisiana, including the lack of facilities, beds, and
physicians. He also discussed the emotional impact of the
hurricanes on first responders.
The last panel addressed the mental impact of the
hurricanes on survivors from a provider perspective. Each of
the witnesses on this panel had studied the effect of
catastrophes on mental health. Dr. Ronald Kessler discussed the
work of the Hurricane Katrina Advisory Group and shared his
findings. He also addressed the issue of how this catastrophe
differs from other catastrophes of similar force. Dr. Howard
Osofsky discussed the overall lack of resources and its impact
on survivors and on children in particular. He shared the
difficulty he had in navigating the Federal system, and
discussed how the lack of funding impacts recovery in the short
and long term. Last, Dr. Mark Townsend addressed the ability of
the existing medical infrastructure and personnel to meet the
mental health needs of hurricane survivors. He gave his
perspective as a practitioner and administrator of a mental
health facility.
7. Host Communities: Analyzing the Role and Needs of Communities That
Take in Disaster Evacuees in the Wake of Major Disasters and
Catastrophes, Dec. 3, 2007. Field Hearing in Baton Rouge,
Louisiana. (Printed, 104 pp. S. Hrg. 110-487.)
Witnesses: Mr. Melvin ``Kip'' Holden, Mayor-President, City
of Baton Rouge, Louisiana; Mr. Randy Roach, Mayor, Lake
Charles, Louisiana; Mayson Foster, Mayor, City of Hammond,
Louisiana; Ms. Mary Hawkins Butler, Mayor, City of Madison,
Mississippi; Mr. Sid Hebert, Sheriff, Iberia Parish, Louisiana;
Mr. Robert Eckels, County Judge, Harris County, Texas; Mr.
Raymond Jetson, Chief Executive Officer, Louisiana Family
Recovery Corps; Ms. Kim Boyle, Chair, Louisiana Recovery
Authority Health Care Committee; Mr. Greg Davis, Commissioner,
Cajundome.
This hearing focused on host communities that received mass
influxes of evacuees fleeing Hurricanes Katrina and Rita, and
examined how Congress could provide adequate assistance to meet
these communities' needs. Cities, localities, and States who
accept large numbers of evacuees face short-term and long-term
challenges, and the Subcommittee explored the toll that a host
community bears after a catastrophic event.
The first panel was mayors who discussed how their cities,
parishes and towns were impacted by the large number of
Hurricanes Katrina and Rita evacuees.
The second panel consisted of witnesses from organizations
and groups that provided services to evacuees and helped
transition evacuees into their new communities.
8. Is Housing Too Much to Hope For?: FEMA's Disaster Housing Strategy,
Mar. 4, 2008 (Printed, 76 pp. S. Hrg. 110-681)
A joint hearing was held with the Ad Hoc Subcommittee on
Disaster Recovery and the Ad Hoc Subcommittee on State, Local,
and Private Sector Preparedness and Integration.
Witnesses: Admiral Harvey E. Johnson, Jr., Deputy
Administrator, Federal Emergency Management Agency (FEMA), U.S.
Department of Homeland Security (DHS); Dr. Howard Frumkin,
Director, National Center for Environmental Health Agency for
Toxic Substances and Diseases, Center for Disease Control
(CDC); Mr. Milan Ozdinec, Deputy Assistant Secretary, Public
Housing and Voucher Programs, U.S. Department of Housing and
Urban Development (HUD).
This hearing examined FEMA's progress towards the
completion of the National Disaster Housing Strategy, which was
required by P.L. 109-295, the Post Katrina Emergency Management
and Reform Act (PKEMRA). The hearing looked at the strategy
itself, the Disaster Housing Assistance Program's (DHAP)
transition progress, the formaldehyde testing and evaluation of
FEMA temporary housing units, and other post-disaster housing
options.
In panel one Admiral Harvey Johnson addressed FEMA's
overarching plan to provide emergency and long-term recovery
housing to victims of natural and man-made disasters,
particularly the timeframe for resolving the question of travel
trailer use, as well as how this and other issues have delayed
production of the National Disaster Housing Strategy. Second,
Mr. Howard Frumkin discussed CDC's collaboration with FEMA to
complete the formaldehyde testing of 519 travel trailers, park
models, and mobile homes, as well as the timeframe for applying
the findings beyond the initial test cases. Third, Mr. Milan
Ozdinec addressed HUD's involvement in providing disaster
related housing, including the progress of the current
activities, HUD's future roles and responsibilities in disaster
housing, and HUD's involvement in the development and
implementation of the National Disaster Housing Strategy.
9. Major Disaster Recovery: Assessing FEMA's Performance Since Katrina,
July 17, 2008. (Printed, 104 pp. S. Hrg. 110-704.)
Witnesses: Major General Tod Bunting, Kansas Adjutant
General, Director, Kansas Emergency Management and Homeland
Security; Mr. Stephen Sellers, Deputy Director, Regional
Operations Division, California Governor's Office of Emergency
Services; Mr. David Maxwell, Director, Arkansas Department of
Emergency Management; Mr. James Bassham, Director, Tennessee
Emergency Management Agency; Admiral Harvey E. Johnson, Jr.,
Deputy Administrator, Federal Emergency Management Agency
(FEMA), U.S. Department of Homeland Security (DHS)
The objective of this hearing was to get a direct post-
disaster assessment of FEMA's efforts in key areas of post
disaster operations, ranging from their initial response to the
recovery activities that are in some cases still under way. We
heard from the emergency managers who handled the State
response for the following disasters: (1) the May 4, 2007 F-5
tornado in Greensburg, Kansas; (2) the October 2007 California
wildfires; (3) the February 5, 2008 tornadoes in Arkansas; and
(4) the February 5, 2008 tornadoes in Tennessee. These were
some of the largest disasters to have occurred in the United
States since Hurricane Katrina. Each storm required a
significant Federal response as a result of the States being
overwhelmed.
The hearing highlighted FEMA's progress or lack of progress
with respect to the initial recovery activities. We also heard
about any new and innovative recovery approaches taken by the
impacted States and FEMA, including ideas for further
improvement in Federal-State response to disasters.
Witnesses on the first panel analyzed FEMA's performance
during the response and recovery from the State and local
perspective. These emergency managers highlighted three areas
where they thought FEMA's performance and collaboration was
particularly successful and three areas FEMA's efforts were
weak. They highlighted FEMA's performance with regard to
coordination and support, disaster housing assistance, and the
Public Assistance Program which replaces damaged public
infrastructure. Included in each testimony were detailed damage
assessments, numbers of evacuees, and dollar figures for the
declared disasters. The witnesses described unique challenges
between their office and FEMA with regard to coordination and
communication between the agency throughout the process.
Major General Bunting discussed the experiences of the EF-5
tornado that hit Kansas on May 4, 2007. This severe storm wiped
out the city of Greensburg so his testimony focused on FEMA's
recovery efforts. Mr. Stephen Sellers highlighted the October
2007 California wildfires and the evacuation of nearly a half
million people. He also discussed the lengthy waiting period
for FEMA mobile homes. Mr. David Maxwell addressed the February
5, 2007 tornado in Arkansas and the extensive damage. He
focused on FEMA's recovery effort on the 500 homes that were
destroyed and the 938 families that were displaced nationwide.
Last, Mr. James Bassham discussed the February 5, 2007
tornadoes in Tennessee resulting in 33 deaths.
The second panel was Admiral Johnson of FEMA. He discussed
specific challenges faced during recently declared disasters
and unique improvements the agency has made since Hurricane
Katrina. He also discussed the challenges that lie ahead for
FEMA.
10. Planning for Post-Catastrophe Housing Needs: Has FEMA Developed an
Effective Strategy for Housing Large Numbers of Citizens
Displaced by Disaster? July 30, 2008. (Printed, 76 pp. S. Hrg.
110-749)
Witnesses: Admiral Harvey E. Johnson, Jr., Deputy
Administrator, Federal Emergency Management Agency (FEMA), U.S.
Department of Homeland Security (DHS); Mr. David Garratt,
Acting Director of Recovery Efforts, Federal Emergency
Management Agency (FEMA), U.S. Department of Homeland Security
(DHS); Mr. Jan Opper, Associate Deputy Assistant Secretary for
Disaster Policy and Management, Department of Housing and Urban
Development (HUD).
The objective of this hearing was to determine whether
FEMA's National Disaster Housing Strategy complies with the
legal requirements imposed by the Post-Katrina Emergency Reform
Act of 2006 and to answer the question in the hearing's title,
which is whether the strategy is an effective post-catastrophic
disaster housing plan.
We also considered whether the Hurricane Pam simulation in
2004 led to efforts to develop a catastrophic disaster housing
strategy. Second, we inquired as to whether such a strategy was
in place when Hurricanes Katrina and Rita struck in 2005, and,
if not, what the consequences did the absence of such a
strategy have. Third, if no catastrophic disaster housing
strategy was in place when the 2005 hurricanes struck, we asked
whether an effort was made to develop and implement such a
strategy in the immediate aftermath of the hurricanes.
Admiral Johnson made up panel one and he discussed whether
FEMA and other agencies have developed a strategy that would
successfully meet housing needs following a disaster that
displaces large numbers of people.
The second panel discussed the drafting and editing of the
strategy. Mr. Garratt has been identified as the key FEMA
housing official responsible for drafting the strategy. Mr.
Opper has been produced by HUD as the key official for that
department's editing and contribution to the strategy.
Mr. Garratt was questioned on missing information from the
strategy including seven programs and planning descriptions
legally required by PKEMRA. He was also questioned on detailed
funding proposals called for in PKEMRA and by Senator Landrieu
at the March 4, 2008 SDR hearing. Mr. Garratt was asked to
discuss how the strategy's emphasis on individual, State and
local responsibility workable in catastrophic disasters which
overwhelm their capacities severely enough to require Federal
leadership.
Mr. Opper was questioned on how the strategy addresses and
plans for HUD programs such as the Disaster Housing Assistance
Program and affordable housing for low income citizens. Both
were asked questions regarding timing and preparation of the
strategy.
11. Lessons Learned: Ensuring the Delivery of Donated Goods to
Survivors of Catastrophes, July 31, 2008. Joint hearing with
House Committee on Homeland Security Subcommittee on Emergency
Communications, Preparations and Response. (Printed, 86 pp.
Serial No. 110-134)
Witnesses: Mr. Eric Smith, Assistant Administrator for
Logistics Management, Federal Emergency Management Agency
(FEMA), U.S. Department of Homeland Security (DHS); Mr. Carlos
Castillo, Assistant Administrator for Disaster Assistance,
Federal Emergency Management Agency (FEMA), U.S. Department of
Homeland Security (DHS); Mr. Barney Brasseux, Deputy
Commissioner of Federal Acquisition Service, Federal Emergency
Management Agency (FEMA), U.S. Department of Homeland Security
(DHS); Mr. Paul Rainwater, Executive Director, Louisiana
Recovery Authority; Mr. Bill Stallworth, Executive Director,
East Biloxi Coordination and Relief Center; Ms. Valerie Keller,
Chief Executive Officer, The Acadiana Outreach Center; Mr.
Ollie Davidson, Member of Donations Management Committee,
National Voluntary Organizations Active in Disaster
The purpose of this hearing was to consider testimony from
FEMA, State officials, and nonprofit relief organizations
involved in the distribution of donated goods to disaster
victims. CNN reported on June 11, 2008, that FEMA had
transferred approximately $18.5 million worth of goods
originally intended for victims of Hurricanes Katrina and Rita
to other Federal agencies and several States outside the
hurricane-affected region. This happened after FEMA classified
the supplies as ``surplus'' and turned them over to U.S.
General Services Administration (GSA) for re-distribution
according to the Federal Government's process for disposition
of excess property.
A significant number of hurricane victims along the Gulf
Coast have an ongoing need for cookware, bedding, cleaning
supplies, and other household items of the type that were given
away. After they were classified as surplus, GSA contacted
Louisiana's State Agency for Surplus Property, which declined
the supplies. They were subsequently re-distributed. Upon
learning what had happened, the Louisiana Recovery Authority
contacted FEMA to express its desire for the goods on behalf of
nonprofits operating in the State. Many of these supplies have
been voluntarily re-directed to nonprofits in Louisiana and
Mississippi since then.
This hearing examined breakdowns that occurred in the
communications system and supply chain at the Federal and State
levels, as well as the method of interaction between Federal,
State, and voluntary agencies involved in recovery. We heard
from Federal agencies about the supplies they offered to the
States, and how they went about informing the States that
supplies were available to disaster victims in the wake of the
storms. We also heard from witnesses representing State
recovery agencies and nonprofit organizations about their roles
in the process and the impact these delays in aid delivery have
had on disaster victims. Last, we examined the procedure by
which FEMA goes about offering and delivering these supplies to
States in need.
FEMA witnesses on the first panel were respectively
responsible for managing and distributing donated goods,
overseeing FEMA assistance to disaster victims, and disposing
of surplus Federal property.
Witnesses on the second panel described conditions on the
ground for disaster victims and highlighted their efforts to
gain access to these supplies.
12. After Action: A Review of the Combined Federal, State, and Local
Activities to Respond and Recover from Hurricanes Gustav and
Ike, Sept. 23, 2008. (Printed, 153 pp. S. Hrg. 110-827)
Witnesses: Mr. Reggie Dupre, Jr., Louisiana State Senate
District 20; Ms. Lyda Ann Thomas, Mayor of Galveston, Texas;
Mr. Cedric Glover, Mayor of Shreveport, Louisiana; Mr. Bill
White, Mayor of Houston, Texas; Lieutenant Governor Mitch
Landrieu, Louisiana Lieutenant Governor; Lieutenant Governor
David Dewhurst, Texas Lieutenant Governor; Admiral Harvey E.
Johnson, Jr., Deputy Administrator, Federal Emergency
Management Agency (FEMA), U.S. Department of Homeland Security
(DHS); Chief Ed Hecker, Chief of Engineers and Commanding
General, Homeland Security Division, U.S. Army Corps of
Engineers
The objective of this hearing was to assess the joint
response and recovery efforts to Hurricanes Gustav and Ike. We
heard from FEMA, the Army Corps of Engineers, and State and
local officials about their efforts before and after these
storms made landfall. The hearing evaluated the effectiveness
of the Federal programs that were used, coordination between
Federal, State, and local officials, and the impact of the
storms on the lives of the citizens who lived through them and
their aftermath. We learned about the areas where government
was effective as well as those where it fell short.
Witnesses on the first panel analyzed Federal performance
during the response and recovery phases from the local
perspective. They were asked to highlight three areas where
they thought FEMA and the Corps' performance and collaboration
was particularly successful and three areas where those efforts
were relatively weak. Senator Dupre represented Lafourche and
Terrebonne Parishes in Louisiana, where Hurricane Gustav made
landfall and where Hurricane Ike's storm surge flooded tens of
thousands of homes. Mayors Thomas and Mayor White discussed the
damage their communities experienced from Hurricane Ike and the
response measures undertaken to mitigate loss of life and
property. Shreveport opened several shelters for Hurricane
Gustav evacuees from Louisiana and Hurricane Ike evacuees from
Louisiana and Texas. Mayor Glover spoke on behalf of host
communities.
Witnesses on the second panel analyzed FEMA and the Corps'
performance during the response and recovery from the State
perspective. They were also asked to highlight three successes
and three failures during the response and recovery phases.
Particular attention was devoted to intergovernmental
coordination and communication throughout these emergencies.
The third panel consisted of Admiral Johnson and Chief Ed
Hecker. Admiral Johnson discussed specific challenges faced
during Hurricanes Gustav and Ike, ongoing performance
improvements, and the challenges that lie ahead for FEMA. Chief
Ed Hecker addressed the role of the Corps in flood protection
and emergency response, including construction and maintenance
of levees and infrastructure, generator supply during power
outages, and the Blue Roof Program which sends Corps-contracted
work crews to disaster victims' homes to repair roof damage.
13. Assessing the Effectiveness of Agricultural Disaster Assistance
Programs in the Wake of the 2008 Midwest Floods, Hurricane
Gustav, and Hurricane Ike, Sept. 24, 2008. Joint hearing with
the Senate Agriculture Committee. (Printed, 149 pp. S. Hrg.
110-798)
Witnesses: Mr. Chuck Conner, Deputy Secretary, U.S.
Department of Agriculture; Dr. Mike Strain, Louisiana
Agriculture Commissioner, Louisiana Department of Agriculture;
Ms. Barb Prather, Executive Director, Northeast Iowa Food Bank;
Mr. Lyle Asell, Special Assistant to the Director on
Agriculture, Iowa Department of Natural Resources, Mr. Dickie
Ellender, Southwest Louisiana Sugarcane Farmer; Ms. Natalie
Jayroe, Director, Second Harvest Food Bank; Mr. John Harkwick,
Northeast Louisiana Cotton Farmer
This joint hearing's purpose was to hear testimony from the
U.S. Department of Agriculture (USDA), and State and local
emergency managers to assess the effectiveness of the joint
response to and recovery from the 2008 Midwest floods, and
Hurricanes Gustav and Ike. The goal was to assess the
activities USDA and its State and local partners took prior to
and after landfall of these storms. We analyzed the
effectiveness of the Federal programs that were used, the
coordination between Federal, State, and local officials, and
the impact on the lives of the citizens who lived through the
storms and their aftermath. It is estimated that Hurricane
Gustav has caused an estimated $700 million in lost revenue
damage to Louisiana's agriculture farm gate value. Louisiana's
fisheries suffered an estimated $100 million in lost revenue.
The USDA has five permanent disaster programs to provide a
payment to farmers when an agricultural natural disaster is
declared by the Secretary of Agriculture: The Livestock
Indemnity Program; the Livestock Forage Disaster Program;
Emergency Assistance for Livestock, Honey Bees and Farm Raised
Fish; the Tree Assistance Program and the Supplemental Revenue
Assistance Payments (SURE) program. These five programs and
crop insurance are the only two mechanisms farmers can rely on
to help them. In Louisiana, most farmers only purchase
catastrophic insurance, which is the lowest coverage of crop
insurance provided. This is because crop insurance is based on
historical losses and unfortunately, Louisiana has a high loss
record which makes premiums high and out of economically
justified reach for Louisiana farmers. For instance, it is
estimated that to cover soybeans at the same rate, it is 4
times as expensive in Louisiana than in Iowa. It is double the
cost to purchase crop insurance at the same rate for cotton and
corn as well.
The recently enacted Farm Bill included for the first time
in over 25 years a permanent agriculture disaster program to
help move Congress away from ad-hoc disaster packages. The SURE
program ties a farmer's disaster payment to the level of crop
insurance a farmer purchased. This is to provide an incentive
for farmers to purchase high levels of insurance. However, in
Louisiana, with most of our farmers purchasing the lowest level
of insurance, the SURE program will be of limited or no help.
The SURE payment cannot exceed $100,000.
Panel one discussed USDA's response to these disasters
through nutrition programs, conservation programs, and
commodity programs, including crop insurance and credit
programs. The witnesses gave a review of USDA's actions and
performance in disaster response and recovery. Panel one gave
information about damage assessments and dollar figures for the
declared disasters.
Panel two discussed the experiences with the USDA's
disaster relief programs including Federal crop insurance, food
and nutrition services, disaster food stamps, and the disaster
housing relief. Both panels described challenges regarding
coordination and communication among Federal, State, and local
agencies throughout the process.
II. Legislation referred to the Ad Hoc Subcommittee on Disaster
Recovery for review
S. 87: A bill to permit the cancellation of certain loans
under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act. Introduced on 1/4/2007 by Senator Vitter. This
bill amends the Community Disaster Loan Act of 2005 to permit
the cancellation of certain loans under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act. (Makes this Act
effective as if enacted as part of the Community Disaster Loan
Act of 2005.)
S. 253: Disaster Loan Fairness Act of 2007. Introduced on
1/10/2007 by Senator Landrieu. This bill will permit the
cancellation of certain loans under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act, and for other
purposes.
S. 664: Local Government Disaster Relief Act of 2007.
Introduced on 2/16/2007 by Senator Landrieu. This bill will
provide adequate funding for local governments harmed by
Hurricanes Katrina or Rita of 2005.
S. 925: A bill to provide for funding assistance under
section 406 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5172) to a State or local
government for the acquisition of real property for the purpose
of the replacement of certain public facilities based on
reasonable reliance of cost estimates provided by the Federal
Emergency Management Agency. Introduced on 3/2/2007 by Senator
Landrieu.
S. 2006: Rate Payer Recovery Act of 2007. Introduced on 8/
3/2007 by Senator Landrieu. This bill is designated to provide
for disaster assistance for power transmission and distribution
facilities, and for other purposes.
S. 2335: Case Management Services Improvement Act of 2007.
Introduced on 11/13/2007 by Senator Landrieu. This bill will
amend the Robert T. Stafford Disaster Relief and Emergency
Assistance Act to provide adequate case management services.
S. 2789: A bill to amend the Emergency Supplemental
Appropriations Act for Defense, the Global War on Terror, and
Hurricane Recovery, 2006 to authorize the Federal Emergency
Management Agency to provide additional assistance to State and
local governments for utility costs resulting from the
provision of temporary housing units to evacuees from Hurricane
Katrina and other hurricanes. Introduced on 3/31/2008 by
Senator Landrieu.
S. 3176: Disaster Recovery Substance Abuse Mental Health
Treatment Act of 2008--Amends the Robert T. Stafford Disaster
Relief and Emergency Assistance Act to authorize the President
to provide mental health and substance abuse services to
individuals affected by a major disaster to relieve or prevent
mental health or substance abuse problems caused or aggravated
by that disaster or its aftermath. Introduced on 6/23/2008 by
Senator Landrieu.