[Senate Report 104-27]
[From the U.S. Government Publishing Office]
104th Congress 1st SENATE Report
Session
104-27
_______________________________________________________________________
ACTIVITIES OF THE COMMITTEE ON
GOVERNMENTAL AFFAIRS
__________
REPORT
of the
COMMITTEE ON GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
and its
SUBCOMMITTEES
for the
ONE HUNDRED THIRD CONGRESS
April 4 (legislative day, March 27), 1995.--Ordered to be printed
COMMITTEE ON GOVERNMENTAL AFFAIRS
WILLIAM V. ROTH, Jr., Delaware,
Chairman
TED STEVENS, Alaska
WILLIAM S. COHEN, Maine
FRED THOMPSON, Tennessee
THAD COCHRAN, Mississippi
CHARLES E. GRASSLEY, Iowa
JOHN McCAIN, Arizona
JOHN GLENN, Ohio BOB SMITH, New Hampshire
SAM NUNN, Georgia
CARL LEVIN, Michigan
DAVID PRYOR, Arkansas
JOSEPH I. LIEBERMAN, Connecticut
DANIEL K. AKAKA, Hawaii
BYRON L. DORGAN, North Dakota
Franklin G. Polk, Staff Director
and Chief Counsel
Leonard Weiss, Minority Staff
Director
Michal Sue Prosser, Chief Clerk
------
COMMITTEE ON GOVERNMENTAL AFFAIRS DURING THE 103d CONGRESS
JOHN GLENN, Ohio, Chairman
SAM NUNN, Georgia
CARL LEVIN, Michigan
JIM SASSER, Tennessee
DAVID PRYOR, Arkansas
JOSEPH I. LIEBERMAN, Connecticut
DANIEL K. AKAKA, Hawaii
WILLIAM V. ROTH, Jr., Delaware BYRON L. DORGAN, North Dakota
TED STEVENS, Alaska
WILLIAM S. COHEN, Maine
THAD COCHRAN, Mississippi
JOHN McCAIN, Arizona
ROBERT F. BENNETT, Utah*
Leonard Weiss, Staff Director
Deborah R. Cohen, Assistant
Counsel
Franklin G. Polk, Minority Staff
Director and Chief Counsel
Michal Sue Prosser, Chief Clerk
----------
*Joined the Committee on October 1, 1993.
9SUBCOMMITTEES OF THE 103d CONGRESS
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
SAM NUNN, Georgia, Chairman
JOHN GLENN, Ohio, Vice Chairman
CARL LEVIN, Michigan
JIM SASSER, Tennessee
DAVID PRYOR, Arkansas
JOSEPH I. LIEBERMAN, Connecticut
WILLIAM V. ROTH, Jr., Delaware BYRON L. DORGAN, North Dakota
TED STEVENS, Alaska
WILLIAM S. COHEN, Maine
THAD COCHRAN, Mississippi
JOHN McCAIN, Arizona
ROBERT F. BENNETT, Utah*
------
OVERSIGHT OF GOVERNMENT MANAGEMENT
CARL LEVIN, Michigan, Chairman
DAVID PRYOR, Arkansas
JOSEPH I. LIEBERMAN, Connecticut
DANIEL K. AKAKA, Hawaii
SAM NUNN, Georgia
WILLIAM S. COHEN, Maine BYRON L. DORGAN, North Dakota
TED STEVENS, Alaska
THAD COCHRAN, Mississippi
JOHN McCAIN, Arizona
ROBERT F. BENNETT, Utah*
------
GENERAL SERVICES, FEDERALISM, AND THE DISTRICT OF COLUMBIA
JIM SASSER, Tennessee, Chairman
JOSEPH I. LIEBERMAN, Connecticut
JOHN McCAIN, Arizona DANIEL K. AKAKA, Hawaii
TED STEVENS, Alaska
------
FEDERAL SERVICES, POST OFFICE, AND CIVIL SERVICE
DAVID PRYOR, Arkansas, Chairman
JIM SASSER, Tennessee
TED STEVENS, Alaska DANIEL K. AKAKA, Hawaii
THAD COCHRAN, Mississippi
------
REGULATION AND GOVERNMENT INFORMATION
JOSEPH I. LIEBERMAN, Connecticut,
Chairman
SAM NUNN, Georgia
CARL LEVIN, Michigan
THAD COCHRAN, Mississippi BYRON L. DORGAN, North Dakota
WILLIAM S. COHEN, Maine
JOHN McCAIN, Arizona
----------
*Joined the Committee on October 1, 1993.
(iii)
104th Congress Report
SENATE
1st Session 104-27
_______________________________________________________________________
ACTIVITIES OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS DURING THE 103RD
CONGRESS
_______
April 4 (legislative day, March 27), 1995.--Ordered to be printed
_______________________________________________________________________
Mr. Roth, from the Committee on Governmental Affairs, submitted the
following
R E P O R T
This report reviews the legislative and oversight
activities of the Committee on Governmental Affairs during the
103rd Congress. These activities parallel the broad scope of
responsibilities vested in the Committee by the Legislative
Reorganization Act of 1946, as amended, rule XXV(1)(k) of the
Standing Rules of the Senate, and additional authorizing
resolutions.
CONTENTS
Page
I. Highlights of activities.........................................2
National performance review and other management 2
initiatives.
Information management............................. 3
Procurement reform................................. 4
Federal disaster management........................ 5
General Accounting Office.......................... 5
Federal personnel issues............................... 6
Federalism............................................. 7
Nuclear nonproliferation issues........................ 7
Environmental and energy issues........................ 8
II. Committee jurisdiction...........................................9
III. Bills and resolutions referred and considered...................10
IV. Hearings.......................................................10
V. Reports, prints and studies.....................................11
VI. Official communications.........................................12
VII. Legislative actions.............................................12
Measures enacted into law.............................. 12
Measures favorably reported from GAC and passed by the 16
Senate.
Measures favorably reported from GAC but died in 103d 17
Congress.
VIII.
Description of major full committee hearings....................19
IX. Presidential nominations........................................28
X. Activities of the subcommittees.................................30
Subcommittee on Federal Services, Post Office, and 30
Civil Service.
Subcommittee on General Services, Federalism and the 35
District of Columbia.
Subcommittee on Permanent Investigations............... 40
Subcommittee on Oversight of Government Management..... 52
Subcommittee on Regulation and Government Information.. 55
Task Force on Waste, Fraud and Abuse................... 60
I. Highlights of Activities
national performance review and other management initiatives
A highlight of the 103rd Congress was the support of
Chairman Glenn and Ranking Member Roth for the government
reform efforts of the National Performance Review (NPR). Some
significant initiatives also arose independently in the
Committee, such as procurement reform and performance
measurement. In 1993, President Clinton signed into law two
Governmental Affairs initiatives: (1) the ``buy-out'' bill
(i.e., the ``Federal Workforce Restructuring Act''); and (2)
the ``Government Performance and Results Act.''
In 1994, in addition to procurement reform, the GAC
considered the NPR's omnibus government reform bill, H.R. 3400.
While a few issues in the jurisdiction of other committees
moved on their own, most were not acted upon--but not in the
Governmental Affairs Committee. The Committee took those
provisions of H.R. 3400 under its jurisdiction and, after a
hearing, moved them as a stand-alone bill, S. 2170, the
``Government Management Reform Act.''
After being reported by the Committee, S. 2170 passed the
Senate and House and was signed into law by President Clinton.
The most important provisions of the law involve the expansion
of the Chief Financial Officers Act, but it also requires an
annual government-wide consolidated financial statement,
expands the use of electronic funds transfer to simplify and
save money in paying Federal wages and benefits, simplifies
agency reporting requirements, and establishes SES leave
accumulation caps and congressional COLA limits (to that of GS
levels).
In addition to work on specific management issues, the
Committee continued to oversee overarching management issues
such as Office of Management and Budget (OMB) management
leadership. The Committee held confirmation hearings for the
OMB Director and Deputy Director for Management and pressed all
nominees to commit to making management a priority.
Along with its sister committee on the House side,
Government Operations, the Committee exercised oversight over
OMB's reorganization, known as ``OMB 2000''. In this
reorganization, OMB has been attempting to integrate its
management functions with its budget functions. GAO was tasked
with assessing whether OMB's management functions, such as CFO
Act implementation, were being adequately performed in the
context of the new ``Resource Management Offices'' (RMO's).
In total, the Committee held over a dozen hearings on
waste, fraud, abuse and mismanagement at various Federal
agencies including the Internal Revenue Service, U.S. Customs
Service, the Department of Energy (DOE) and the Environmental
Protection Agency (EPA). Three hearings were held solely on the
issue of financial management at the Department of Defense
(DOD).
A sampling of some other findings reveals:
The Customs Service may have been losing billions in
revenue because it accepted, at face value, information
reported by importers.
Many EPA contracts were not awarded on a competitive
basis, had possible conflict of interest problems, or
were for nonessential services.
The Army made unauthorized payroll payments in one
month to 2,100 individuals totaling $6.1 million.
As of January 1994, the Army had made about $8
million in unauthorized payments to soldiers, including
repeated payments to 76 deserters and six ghost
employees.
In addition, the Committee convened its annual hearings in
1993 and 1994 to review the findings in the General Accounting
Office's (GAO) high risk reports, continuing the Committee's
broad-based review of government management, focusing on cost
savings, improvements to general and financial management, and
the National Performance Review, as initiatives to make
government more effective.
Information management
In the realm of information management, after a year-long
effort, the Committee produced a bipartisan consensus
compromise bill to reauthorize the Paperwork Reduction Act,
which subsequently passed the Senate. The bill, a compromise
between S. 560 (Senators Nunn, Bumpers and Roth) and S. 681
(Senators Glenn and Levin), would have strengthened paperwork
clearance and information resources management responsibilities
for both OMB and Federal agencies. On the issue of paperwork
clearance, the bill also addresses the major business community
concern by overturning the Supreme Court decision, Dole v.
United Steelworkers, to ensure that agency information
disclosure requirements are cleared by OMB.
At the request of Senator Glenn, GAO evaluated the design
and implementation of DOD's Corporate Information Management
(CIM) initiative. Committee interest originated in initial GAO
audits of DOD financial management efforts, but this time GAO's
work expanded beyond financial management to cover CIM
initiatives in logistics, medical care, and technical areas.
such as data standardization, the CASE (integrated computer-
aided software engineering) procurement, and consolidation of
data processing operations. In each area, GAO has found
troubling examples of poor planning, systems consolidation
taking place before process re-engineering, and inadequate
direction from top DOD officials. GAO has begun a project for
the Committee to try to apply to CIM the ``IRM Best Practices''
lessons also integrated into the Paperwork Reduction Act
legislation.
In September 1994, the congressional Office of Technology
Assessment (OTA) released a study, ``Information Security and
Privacy in Network in Network Environments,'' which had been
requested by Senators Roth and Glenn. The report describes the
vulnerabilities faced by government computers in the new age of
telecommunications and networks--information on more people and
important government matters is accessible through networks and
over phone lines than ever before. The OTA report recommended
congressional oversight and legislative action on the Privacy
Act, the Computer Security Act, and specific Federal agencies,
such as the National Security Agency, the National Institute of
Standards and Technology, OMB, and GSA.
The OTA report represents a culmination in the 103rd
Congress of the Committee's continuing attention to computer
security and privacy issues. In a financial management hearing
on the Internal Revenue Service, for example, the Committee
revealed serious lapses in security and privacy controls--IRS
employees were found to be browsing through taxpayer records.
In the Committee's hearing on the reauthorization of the
Paperwork Reduction Act, witnesses also testified on the need
to strengthen security and privacy controls in the context of
information resources management. Earlier in the 103rd
Congress, the Committee also revealed weaknesses in privacy
controls in proposed health care reform systems.
Procurement Reform
The passage by Congress of the Federal Acquisition
Streamlining Act of 1994 (FASA) constituted a critical victory
in the war against government inefficiency and one of the most
significant accomplishments of the Committee during the 103rd
Congress. The Act is a comprehensive government-wide
procurement reform effort aimed at streamlining the acquisition
process by reducing paperwork burdens through revision and
consolidation of acquisition statutes to eliminate redundancy,
provide consistency, and facilitate implementation.
The law is the culmination of over a decade of legislative
and oversight effort led by the Government Affairs in
conjunction with the Armed Services and Small Business
Committees of both the Senate and the House, to make sense out
of the complex process of supplying the Federal government with
the goods and services it needs to operate. NPR recommendations
regarding increased reliance on acquisitions of commercial
items, an increased ``simplified acquisition threshold'' of
$100,000 and others mirroring those in the Report of the
Advisory Panel on Streamlining and Codifying Acquisition Laws
pursuant to Section 800 of the National Defense Authorization
Act for Fiscal Year 1991 (the so-called ``800 Panel'') also
figured significantly.
FASA seeks to address concerns raised regarding the
administrative burden associated with the government's
specialized requirements from cost accounting standards to
socioeconomic laws to the government's oversight tools, which
have resulted in the bifurcation of the government and
commercial markets. The law attempts to minimize this
undesirable consequence of these well-intentioned provisions in
an effort to strike a balance between efficiency and oversight.
The Committee also had jurisdiction to oversee a section of
the implementing legislation for the North American Free Trade
Agreement (NAFTA) and the GATT (General Agreement on Tariffs
and Trade) and Uruguay Round treaties. These relevant sections
were related to liberalizing the procurement markets of
signatory countries.
Federal Disaster Management
During the 103rd Congress, the Committee held hearings and
favorably reported legislation designed to improve the
government's response to disasters, particularly those causing
major devastation. The main objectives were as follows:
1. Improving the Federal response to catastrophic
disasters by clarifying the Federal Emergency
Management Agency's (FEMA) pre-disaster declaration
authority, creating a new category of disaster
(``catastrophic'') for events which overwhelm State and
local capabilities and triggers a heightened federal
response, including utilization of DOD resources,
providing direct White House involvement in
coordinating this response, and establishing rapid
disaster assessment ``strike'' teams;
2. Elevating and refining the Federal Response Plan
by giving it the full weight and scope of Presidential
authority, requiring all hazards training and exercises
by the National Guard and State and local authorities,
developing an inventory of federal disaster resources,
and improving the system of disaster volunteers and
donated goods;
3. Revitalizing FEMA's mission, organization, and
structure to encompass an all-hazards approach to
disaster management, mitigation, and preparedness to
minimize the effects of natural or manmade disasters by
integrating all government resources, setting
qualification standards for FEMA officers, stressing
cross-training approaches at the National Academy for
Fire Prevention and Control and the Emergency
Management Institute, and enhancing university-based
research for disaster management methods and
technologies;
4. Improving State preparedness, accountability, and
performance through streamlined, flexible Federal
emergency grants and establishing State performance
standards to determine the eligibility for such grants
and the cost-share for other related federal disaster
assistance;
5. Preventing fraud and price gouging following
Presidentially-declared disasters by making such crimes
federal offenses, establishing intergovernmental
antifraud task forces, and providing fraud prevention
information to victims of disasters.
General Accounting Office
In May, 1993, the Committee entered into a contract with
the National Academy of Public Administration (NAPA), under the
authority of section 13(b)(1) of S. Res. 71, for a
comprehensive examination of the General Accounting Office
(GAO). This report, ``The Roles, Mission, and Operation of the
U.S. General Accounting Office'' was released by the Committee
on October 6, 1994. In a joint statement, Chairman Glenn and
Senator Roth, the Ranking Minority Member, said, in part:
Congress depends on GAO for accurate, fair audits and
evaluations. That should be GAO's mission and service
to Congress and the nation. In recent years, there has
been growing concern over the operation of GAO, and its
relationship to Congress and the Executive Branch, the
quality and objectivity of its reports, and its very
role. This report makes a number of recommendations
designed to ensure that GAO's effectiveness, reputation
and credibility will be preserved as we move into the
next century.
Among the issues raised are: the scope of GAO's work,
the use of its resources, the quality of its work
products, the objectivity of its findings and
conclusions, and the manner in which reports are
presented and released. The NAPA report suggests that
GAO's mission and use by Congress has been broadened
and expanded in recent years, placing new demands on
the agency's core purpose, skills, and resources. This,
in turn, has heightened GAO's involvement in policy
questions and raised concerns by some over the exercise
of GAO's responsibilities and impartiality.
The report makes no recommendation for revising GAO's
statutory charter and concludes there is no evidence of
deliberate political or partisan bias in its work.
However, there are questions surrounding whether GAO
should undertake certain studies that may be
politically-sensitive and controversial in nature. We
recognize that there is always an inherent tension in
any political process. And the report does cite aspects
in GAO's relations with Congress calling for further
examination. These include: increased sharing of
information with Congress, such as strategic plans and
on-going projects, improved performance indicators,
utilization of outside peer review groups, assignment
of detailees, and the use of agency comments on
reports.
These matters deserve our consideration. All of the
issues raised in the report will be the subject of
thorough oversight hearings in the next Congress. GAO
is an important institution, and one we rely on. It
requires that it have our confidence and trust to
effectively meet its future challenges and preserve its
reputation and competence.
federal personnel issues
In the 103rd Congress, the Committee continued to exercise
active oversight over a major part of its jurisdiction: issues
affecting Federal employees. In the past, this oversight had
largely been of issues affecting employees of the Executive
branch, but this time Legislative branch employees were
included when the Committee considered the ``Congressional
Accountability Act'' which would have applied certain Acts of
Congress to employees of Congress or congressional agencies. A
hearing was held on this legislation, and the bill was reported
from Committee, but no further action was taken in the 103rd
Congress.
The Committee also considered S. 404, the ``Federal
Employees Fairness Act'' which, if passed, would have improved
the effectiveness of administrative review of Federal
employment discrimination claims. The Committee favorably
reported the bill, but no further action was taken in the 103rd
Congress.
After a multi-year long struggle, S. 185, the ``Hatch Act
Reform Amendments of 1993'' was passed by the Congress and
signed into law by the President. S. 185 amended the 1939 Hatch
Act statute that prohibited most Federal civilian and postal
employees from being politically active, and now allows these
civil servants to participate voluntarily, as private citizens,
in the Nation's political processes with some restrictions. The
new law retains all prohibitions against the use of one's
official position to influence other employees and increased
penalties for those convicted of such abuse.
The Congress also passed and the President signed into law
S. 1535, the ``Federal Workforce Restructuring Act'' during
this Congress. The passage of this bill allows agencies to
offer targeted voluntary separation incentives to encourage
employees to resign or retire from Federal service.
Finally, at the request of Chairman Glenn, GAO prepared two
reports. The first, ``Political Appointees: 10 Year Staffing
Trends at 30 Federal Agencies'' (GGD-93-74FS; April, 1993),
examined the historical trends in the employment of noncareer
and Senior Executive Service (SES) and Schedule C appointees
and full-time permanent employees at the 30 federal agencies
with the largest number of political appointees between 1981 to
1991. The second study, ``Political Appointees: Turnover Rates
in Executive Schedule Positions Requiring Senate Confirmation''
(GGD-94-115FS; April, 1994), presented information on the
periods of service for persons appointed by the President to
federal Executive positions with the advice and consent of the
Senate over a similar 10-year span.
federalism
A new issue tackled by the Committee during the 103rd
Congress was that of unfunded Federal mandates; the practice of
passing Federal laws applicable to States and localities
without providing funding. The Committee held hearings on the
problems and burdens facing State and local governments in
implementing Federal mandates and on Federal mandate reform and
relief legislation. The purpose of this legislation, S. 993,
was to end the practice of imposing unfunded Federal mandates
on State and local governments and to ensure that the Federal
government pays the costs incurred by those governments in
complying with certain requirements under Federal statutes and
regulations. A subsequent bill, S. 1604, was introduced by
Chairman Glenn to provide for greater regulatory flexibility
for small governments, lessen compliance burdens on small
governments, and test innovative regulatory methods). It was
known as the Federal Mandate Accountability and Reform Act of
1994. The Committee reported the legislation as an amendment in
the nature of a substitute, but no further action was taken.
nuclear nonproliferation issues
Continuing the long leadership by the Chairman to promote
policies to prevent nuclear proliferation, the Committee
pursued a variety of oversight activities throughout the 103rd
Congress with respect to nuclear export controls and
nonproliferation issues. Four hearings were held on the
following topics: bomb exports, the U.S. strategic nuclear
triad, disposing of plutonium in Russia, and proliferation
threats of the 1990s.
The key legislative accomplishment of the Committee in this
area was the enactment on April 30,1994 of the Nuclear
Proliferation Prevention Act of 1994. This Act had been
introduced originally by Senator Glenn on May 27, 1993 as the
Omnibus Nuclear Proliferation Control Act of 1993 and was
passed by the Senate by unanimous consent on January 31, 1994
as Title VIII of the Foreign Relations Authorization bill
(enacted as P.L. 103-236). The Act authorizes the President to
impose stiff economic sanctions against companies and countries
that engage in illicit sales of goods or technology with
nuclear weapons-related applications. The Act also expands
public access to data about U.S. exports, eliminates a special
waiver for Pakistan from U.S. nonproliferation legislation, and
recommends 24 measures to strengthen the International Atomic
Energy Agency.
At the request of Chairman Glenn during the 103rd Congress,
several reports and studies were produced by the GAO and OTA on
nonproliferation issues. Topics were wide-ranging and included
export controls, plutonium, chemical and biological defense,
issues related to the former Soviet Union and Japan, U.S.
nuclear tracking capabilities, inventory management of
missiles, ballistic missile defense, challenges facing the
International Atomic Energy Agency, and technologies and
proliferation of weapons of mass destruction. In addition, the
Congressional Research Service prepared a ``Nuclear
Proliferation Factbook'' and ``Nuclear Non-Proliferation Act
Reporting Requirements.''
Finally, the Committee published volumes 4 and 5 of its
newsletter, Proliferation Watch, chronicling worldwide and
national developments relating to the global spread of nuclear
weapons and other weapons of mass destruction.
environmental and energy issues
During the 103rd Congress, Senator Glenn continued his
active oversight of the Department of Energy's Environment
Safety and Health programs. A total of nine GAO reports were
released by Chairman Glenn during this Congress on these issues
alone. The Committee has continued its efforts to foster more
responsible environmental cleanup practices and to protect
public health and safety at such facilities as the Hanford
Nuclear Reservation, the Fernald plant, and the Savannah River
facility.
New revelations in late 1993 about the U.S. government's
Cold War involvement in exposing citizens to radiation
(including a report released by the Committee concerning
heretofore secret ``planned releases'' of radiation at DOE and
DOD sites) were the topic of two hearings during 1994. The
first of these hearings examined, in part, whether appropriate
controls are currently in place to prohibit improper human
experimentation by Government agencies. The second hearing
examined the progress made by the Advisory Committee on Human
Radiation Experiments in their effort to evaluate the Cold War
radiation experiments.
Two additional hearings focused on the Nuclear Regulatory
Commission's ability (or inability) to properly work with other
Federal and state agencies in the regulation of various aspects
of radiation. The first hearing looked at the Federal
government's regulation of medical radiation, and specifically
the gaps and overlaps arising from FDA and NRC regulation. The
second hearing, held jointly with the House Subcommittee on
Environment, Energy and Natural Resources, explored radioactive
contamination of sewage sludge, and the failure of NRC and EPA
regulation to adequately control this pollution.
In addition to several other GAO and OTA reports on topics
ranging from energy conservation to nuclear regulation, the
Committee also issued its own report, ``U.S. Department of the
Interior: Environmental Problems and Issues'' (September 1993).
The report was issued in conjunction with a hearing on the same
topic.
Finally, for the third consecutive Congress, Senator Glenn
introduced legislation, S. 171, to elevate EPA to Cabinet-level
status. Although the Committee held hearings on S. 171, it was
reported out of Committee, and it passed the Senate twice, the
House failed to take any action, and the measure died with the
adjournment of the 103rd Congress.
Each of the subcommittees also examined a number of issues
within their individual jurisdictions. The Subcommittee on
Federal Services, Post Office and Civil Service held hearings
on and examined a variety of relevant postal issues, Federal
licensing procedures for importing and selling firearms,
Federal performance, operational testing to ensure better
weapons for our troops, arms export licensing, and the Federal
role in child support enforcement.
The Subcommittee on General Services, Federalism and the
District of Columbia examined a myriad of issues relevant to
the District of Columbia and the General Services
Administration.
Important hearings were held on the oversight of the
insurance industry and Blue Cross/Blue Shield programs,
corruption in professional boxing, abuses in Federal student
grant programs, criminal aliens in the United States, and
international organized crime and its impact on the U.S. by the
Permanent Subcommittee on Investigations.
The Oversight of Government management Subcommittee
examined ethics reform, NAFTA, oversight of Federal property
management, government contracting, oversight of the FDIC,
oversight of U.S.-Japan auto parts framework negotiations,
oversight of EPA's implementation of the nonattainment
provisions of the Clean Air Act in the Lake Michigan region,
and the Navy's mismanagement of the Sealift Tanker Program.
The Subcommittee on Regulation and Government Information
held hearings on contracting problems at the RTC, the adequacy
of HCFA information systems and the collection and privacy of
health care information, assuring the preservation and access
to public papers of Supreme Court justices, at-home business
opportunity scams, international consumer fraud, using new
technology to improve services and cut costs, video games
violence, crisis in the availability of life-saving medical
devices, and deceptive invention marketing scams.
Finally, the Task Force on Waste, Fraud and Abuse held
hearings on the overbuilding of Federal courthouses, the
accountability and management of DOD facilities requirements,
criminal debt collection, drug pricing, and the Interstate
Identification Index.
II. Committee Jurisdiction
In the 95th Congress, the jurisdiction and functions of the
Committee on Governmental Affairs were substantially enlarged
with the Senate approval of the Committee System Reorganization
Amendments of 1977 (S. Res. 4, 95-1, February 4, 1977). S. Res.
4 also changed the Committee's name from the Committee on
Government Operations to the Committee on Governmental Affairs.
Rule XXV(1)(k) of the Standing Rules of the Senate requires
reference to this Committee of all proposed legislation, and
other matters, dealing with (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 social and
economic statistics; (4) congressional organization, except for
matters which amend 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; (9) organization and management of U.S.
nuclear export policy; (10) organization and reorganization of
the Executive Branch of the Government; (11) Postal Service;
and (12) status of officers and employees of the United States
including their classification, compensation and benefits.
The Committee is further authorized and directed to (1)
receive and examine reports of the Comptroller General of the
United States and to submit to the Senate such recommendations
as the Committee deems advisable; (2) study the efficiency,
economy and effectiveness of all agencies and departments of
the Government; (3) evaluate the effects of laws enacted to
reorganize the legislative and executive branches of the
Government; and (4) study the intergovernmental relations
between the United States and States and municipalities, and
between the United States and international organizations of
which the United States is a member.
In addition, the Committee has primary oversight and
legislative jurisdiction over the General Accounting Office,
the Office of Personnel Management, the Office of Management
and Budget, the Postal Service, and the General Services
Administration, and processes all legislation relating to the
disposal and the negotiated sales of federal surplus property.
III. Bills and Resolutions Referred and Considered
Two hundred five Senate bills and 51 House bills were
referred to the Committee for consideration during the 103rd
Congress. Three original bills came out of the Committee. One
amendment was referred to the Committee. In addition, two
simple Senate resolutions and four Concurrent Senate
resolutions were referred to the Committee. No joint
resolutions were referred to the Committee. No reorganization
plans were submitted. Of the legislation received and
considered, 41 bills were reported, 34 became law, 0 were
vetoed, 1 resolution was agreed to, and 1 resolution was
incorporated into a larger Senate resolution.
IV. Hearings
During the 103rd Congress, the Committee and its five
Subcommittees held a total of 119 days of hearings on numerous
nominations and a wide variety of legislative and oversight
issues. At the full Committee level, a number of important
topics were examined, including:
(1) Transition recommendations and high risk reports; (2)
EPA elevation to Cabinet level; (3) Nuclear proliferation
threats in the 1990s; (4) Disposing of plutonium in Russia; (5)
Improving governmental organization and performance; (5)
Breakdown of IRS tax enforcement regarding multi-national
corporations; (6) Human genome diversity project; (7) Hatch Act
Reform Amendments; (8) Federal regulation of medical radiation
uses; (9) Rebuilding FEMA; (10) Federal Employees Fairness Act;
(11) Evaluation of the Triad; (12) EPA contract management
problems; (13) DOD financial management; (14) Problems at the
Department of Agriculture; (15) Waste and Abuse at IRS and
Customs; (16) Environmental problems in the Federal government;
(17) Federal Workforce Restructuring Act; (18) Federal mandates
on state and local governments and accompanying legislation;
(19) NAFTA statistics; (20) The Federal government's role in
human radiation and other scientific experiments; (21) OMB's
plan to make government work; (22) Government Reform and
Savings Act; (23) Federal Acquisition Streamlining Act (held
jointly with the Senate Armed Services Committee); (24) Federal
policies governing the introduction of non-indigenous plant and
animal species; (25) Contract and financial management at DOE;
(26) Federal telecommunications policy; (27) Overbuilding of
Federal courthouses; (28) Health care information management;
(29) Health care reform and FEHBP; (30) Past U.S. exports of
nuclear dual-use goods and technologies to countries with
illicit nuclear weapons programs; (31) Regulatory review and
paperwork reduction; (32) Reauthorization of the FEMA Emergency
Food and Shelter National Board Program; (33) Radioactive
contamination at sewage treatment plants (held jointly with a
House Environment Subcommittee); (34) Military construction;
(35) Federal criminal and restitution debt collection; (36)
Congressional coverage legislation; (37) High risks and
emerging fraud at IRS, student loan programs and HUD; (38)
Differences in international pricing policies of prescription
drug manufacturers; (39) Review of the audited financial
statements and financial management practices of Federal
agencies; (40) Full voting representation in Congress for the
District of Columbia; and (41) Interstate Identification Index.
V. Reports, Prints and Studies
During the 103rd Congress, the Committee and its
Subcommittees prepared and issued 29 reports, special prints
and studies on these topics, among others:
(1) Lobbying Disclosure Act; (2) Department of the
Environment Act; (3) Hatch Act Reform Amendments; (4)
Government Performance and Results Act; (5) Independent Counsel
Reauthorization Act; (6) Reauthorization of the National
Historical Publications and Records Commission; (7) Federal
Employee Fairness Act; (8) Government Streamlining and Reform
Act; (9) North American Free Trade Agreement Implementation Act
(jointly with several other committees); (10) Federal Workforce
Restructuring Act; (11) Congressional Gifts Reform Act; (12)
Federal Acquisition Streamlining Act; (13) District of Columbia
Justice Reform Act; (14) Government Management Reform Act; (15)
Reauthorization of the Office of Government Ethics; (16)
Federal Mandate Accountability and Reform Act; (17) Paperwork
Reduction Act; (18) FEGLI Living Benefits Act; (19)
Congressional Accountability Act; and (20) Federal Disaster
Preparedness and Response Act.
VI. Official Communications
During the 103rd Congress, a total of 1,124 official
communications were submitted to the Committee. Of these, 40
were from the Comptroller General of the United States, and
1,084 were from the President of the United States and other
executive departments. These communications included reports to
advise and inform the Congress, required annual or semi-annual
agency budget and activities summaries, and requests for
legislative action. The Committee also received 70 petitions
and memorials.
VII. Legislative Actions
For information not included in this section, please refer
to the Committee's legislative calendar.
The Committee was extremely productive in the 103rd
Congress. Important legislation was reported by the Committee,
approved by Congress and signed by the President in a variety
of areas within the Committee's jurisdiction. Following are
brief legislative histories of selected measures referred to
the Committee, and in some cases, drafted by the Committee,
which: (1) became public law; (2) were favorably reported from
the Committee and passed by the Senate; and (3) were favorably
reported from the Committee but which died in the 103rd
Congress.
measures enacted into law
Government Performance and Results Act of 1993 (Public Law 103-62)
S. 20, the Government Performance and Results Act of 1993,
introduced by Senator Roth on January 21, 1993, with Senators
Glenn, Graham, Metzenbaum, McCain, Akaka, Robb, and Lugar as
cosponsors, provides for the establishment, testing, and
evaluation of strategic planning and performance measurement in
the Federal Government. It is to improve the efficiency and
effectiveness of Federal programs by establishing a system to
set goals for program performance and measuring results.
Senator Roth first introduced this legislation in 1990.
The bill also requires that, beginning in FY 1994, there
shall be at least 10 three-year pilot projects in program
performance, goal setting, measurement, and reporting, and at
least five two-year pilot projects in greater managerial
flexibility in return for commitments to greater program
performance. In 1997, OMB and GAO shall report on the results
of the pilot projects. By FY 1998, the requirements of the Act
for five-year strategic planning, annual program performance
plans, and annual program performance reports shall come into
force governmentwide. Also in 1997, OMB will begin at least
five two-year pilot projects in performance budgeting.
A hearing was held on the bill on March 11, 1993. On March
24, 1993, the Committee voted to report S. 20 as amended by
Senators Glenn and Pryor (S. Rept. 103-58). By voice vote, S.
20 passed the Senate with amendment on June 23, 1993 and passed
the House by voice vote on July 15, 1993. The President signed
S. 20 into law on August 3, 1993.
The Hatch Act Reform Amendments of 1993 (Public Law 103-94)
S. 185 was introduced by Chairman Glenn and ten cosponsors
on January 26, 1993 and referred to the Governmental Affairs
Committee. Subsequently, it was marked up by the Committee on
May 11 and May 13, 1993. An amendment in the nature of a
substitute, offered by Chairman Glenn, was approved by voice
vote.
The text of S. 185 was passed by the Senate on July 20,
1993, as an amendment in the nature of a substitute to H.R. 20.
The House did not request a conference on this bill and passed
the amended text of H.R. 20, clearing the measure for the
President's signature. It was signed into law on October 6,
1993.
Public Law 103-94 amended the 1939 Hatch Act statute that
prohibited most Federal civilian and postal employees from
being politically active. The new law allows these civil
servants to participate voluntarily, as private citizens, in
the Nation's political processes with some restrictions. The
new law retains all prohibitions against the use of one's
official position to influence other employees and increased
penalties for those convicted of such abuse. In addition, it
includes language that covers political recommendations
regarding civilian personnel actions and allows for garnishment
of Federal employees' wages.
The Federal employees Leave Sharing Amendments Act of 1993 (Public Law
103-103)
S. 1130 was a bill to provide for the continuing
authorization of Federal employee leave transfer and leave bank
programs. It reauthorizes the Federal Employees Leave Sharing
Act of 1988 to make both the leave transfer and leave bank
programs permanent. In addition, the bill: (1) provides that
advanced leave shall not be considered when determining
eligibility for donated leave; (2) eliminates the requirement
that leave accrued during a medical emergency be set aside
until the medical emergency has terminated; and (3) authorizes
employees to participate in both the leave transfer and leave
bank programs.
The Committee favorably reported the bill without amendment
on June 24, 1993, and it passed the full Senate without
amendment by voice vote on July 14, 1993. The House passed an
amended version of the bill by voice vote on September 21,
1993. The President signed S. 1130 into law on October 8, 1993.
Trade Treaty Implementing Legislation
On November 10, 1993, the Committee held a hearing which
examined the methodology used by the Commerce Department in
estimating the gains in U.S. jobs and exports as a result of
the North American Free Trade Agreement. On November 18, 1993,
the Committee marked up Subtitle G of Title III of S. 1627,
legislation to implement the North American Free Trade
Agreement. These provisions seek to expand and open up the
government procurement markets of Mexico, the United States,
and Canada to companies from those nations. The legislation was
reported out unanimously, without recommendation, by the
Committee.
On October 5, 1994, the Committee voted unanimously to
report, without recommendation, Section 102 of Subtitle A,
Title I and Subtitle E of Title III of S. 2467, legislation to
implement the Uruguay Round Trade Agreement. Section 102
addresses issues concerning the sovereign powers of State
governments under the Constitution and ensures that the
authority of the new World Trade Organization does not
supersede these powers. Subtitle E establishes criteria and
procedures to further liberalize the government procurement
markets of the member nations of the General Agreement on
Tariffs and Trade (GATT) Government Procurement Code.
The Federal Workforce Restructuring Act of 1993 (Public Law 103-226)
S. 1535 was introduced on October 7, 1993 by Senator Glenn,
with Senators Pryor and Stevens as cosponsors, and was referred
to the Committee on Governmental Affairs. The Committee marked
up S. 1535 on November 9, 1993. Six amendments were offered and
accepted to the bill. The Committee on Governmental Affairs
reported out S. 1535 by a vote of 11-0.
The text of S. 1535 was enacted into law, with amendments,
in the context of a conference agreement on H.R. 3345 (the
House companion bill). It was signed into law on March 30,
1994.
Public Law 103-226 allows agencies to offer targeted
voluntary separation incentives, through March 31, 1995, to
encourage employees to resign or retire from Federal service.
The financial payments would be the lesser of $25,000 or the
amount an employee would be paid in severance pay if his or her
job was being abolished. It requires overall government caps on
Full-Time Equivalent (FTE) positions, from Fiscal Year 1994
through Fiscal Year 1999, in order to reduce Federal employment
by 272,000 positions.
The Federal Acquisition Streamlining Act of 1993 (Public Law 103-355)
On October 26, 1993 Senator Glenn, along with Senators
Bingaman, Levin, Nunn, Bumpers, and Lieberman introduced S.
1587, the Federal Acquisition Streamlining Act (``FASA''). On
March 24, 1994, Senators Roth and Cohen introduced S. 1982, the
Federal Acquisition Management Improvement Act of 1994.
Subsequently, S. 1587, some aspects of S. 1982, along with some
Administration recommendations, were blended together into a
Committee substitute amendment sponsored by Senators Glenn,
Roth, Levin, Cohen, and Nunn. The Committee Substitute was
reported out of the Governmental Affairs Committee on April 26,
1994. The Act is a comprehensive government-wide procurement
reform effort aimed at streamlining the acquisition process by
reducing paperwork burdens through revision and consolidation
of acquisition statutes to eliminate redundancy, provide
consistency, and facilitate implementation.
This law is the culmination of over a decade of legislative
and oversight effort by the Governmental Affairs Committee and
others to make sense out of the complex process of supplying
the federal government with the goods and services it needs to
operate. Included in the final product are many recommendations
from the Report of the Advisory Panel on Streamlining And
Codifying Acquisition Laws pursuant to Section 800 of the
National Defense Authorization Act for Fiscal Year 1991 (the
so-called 800 Panel) and the ``National Performance Review''
led by Vice President Gore. Major reforms were made in the
areas of acquisition management, electronic commerce, the
simplified acquisition threshold, commercial items and pilot
programs.
Three joint hearings were conducted on S. 1587 in 1994 by
the Senate Governmental Affairs and Armed Services Committees.
On June 8, 1994, the bill passed the Senate with an amendment
by voice vote. On June 27, 1994, the House passed an amended
version by voice vote. The conference report was filed on
August 21, 1994 (H. Rept. 103-712). Both houses agreed to the
conference report, and on October 13, 1994, the President
signed the legislation into law.
The Government Management Reform Act (Public Law 103-356)
Chairman Glenn introduced S. 2170, the Government
Management Reform Act, which provides for a more effective,
efficient, and responsive government. It requires for the first
time that all major Federal agencies produce annual audited
financial statements by fiscal 1996, to be followed by
governmentwide annual audited financial statement starting in
fiscal year 1997. Other important elements of the law include
Electronic Funds Transfer of payroll for all new Federal hires,
and a Franchise Fund pilot program to determine if the
government can reduce costs and duplication on certain
administrative services.
The Committee also considered the National Performance
Review's omnibus government reform bill, H.R. 3400. The
Committee took those provisions in H.R. 3400 under its
jurisdiction and, after a hearing on February 23, 1994, moved
them as a stand-alone bill, S. 2170, the Government Management
Reform Act.
After being favorably reported by the Committee on March
23, 1994, S. 2170 passed the Senate (September 28, 1994) and
House (October 4, 1994) and was signed into law by the
President on October 13, 1994.
The President John F. Kennedy Assassination Records Collection
Extension Act (Public Law 103-345)
H.R. 4569 was necessary due to the unfortunate delays in
appointing members to the Assassination Records Review Board,
as established pursuant to P.L. 102-526, and also in organizing
staff and receiving federal appropriations. The underlying
intent of the original bill was to provide the public
disclosure of all records pertaining to President Kennedy's
assassination. The Board itself is to oversee the
identification, collection, review, and release of such
pertinent materials. This bill, as amended by the Committee,
extends the life of the Review Board until September 30, 1996,
with one additional year possible. It also made technical
corrections so the Board could organize its staff operations
without further delay.
On August 2, 1994, the Committee agreed to amendments to
H.R. 4569, offered by Chairman Glenn, and ordered the
legislation favorably reported. The Senate passed this version
on August 10, 1994, and the House subsequently agreed to H.R.
4569 as amended. The bill was signed into law by the President
on October 6, 1994.
Federal employees sick leave legislation (Public Law 103-388)
H.R. 4361 was a bill to provide that an employee of the
Federal government may use sick leave to attend to the medical
needs of a family member. The bill also modifies the voluntary
leave transfer program with respect to employees who are
members of the same family.
After being passed by the House by voice vote on September
19, 1994, H.R. 4361 was referred to the Committee which
discharged it on October 7, 1994. That same day, the Senate
passed a bill by voice vote with amendment. On October 8, 1994,
the House agreed to the Senate Amendment, and on October 22,
1994, the President signed the bill into law.
measures favorably reported from gac and passed by the senate
The Department of the Environment Act
On February 18, 1993, the Committee held hearings on S.
171, legislation introduced by Chairman Glenn to elevate the
Environmental Protection Agency (EPA) to Cabinet-level status.
On March 24, 1993, the Committee reported out by unanimous
voice vote S. 171 as an amendment in the nature of a substitute
(S. Rept. 103-38). S. 171 subsequently passed the Senate twice
in the 103rd Congress--once, freestanding, and then as an
amendment to the reauthorization of the Safe Drinking Water
Act. No action was taken by the House during the 103rd
Congress.
Reauthorization of the Office of Government Ethics (OGE)
The purpose of S. 1413 was to ensure an effective ethics
system throughout the Executive Branch by extending the OGE's
authorization for eight years. The bill also provided OGE with
gift-acceptance authority and made certain technical changes to
the ethics laws.
The Subcommittee on Oversight of Government Management held
hearings on April 20, 1994, and the full Committee favorably
reported the bill with amendments on June 16, 1994. The bill
passed the Senate amended on October 6, 1994. No action was
taken by the House in the 103rd Congress.
Paperwork Reduction Act
After a year-long effort, the Committee produced a bi-
partisan consensus compromise bill to reauthorize the Paperwork
Reduction Act. The bill was a compromise between S. 560
(Senators Nunn and Bumpers) and S. 681 (Senators Glenn and
Levin). OMB and GAO staff were active participants in the many
meetings and drafting revisions that led to the final bill. GAO
very much supported the legislation because of the way it
incorporated the lessons of GAO's ``IRM Best Practices'' study
and recommendations. The bill strengthens paperwork clearance
and information resources management responsibilities for both
OMB and Federal agencies. On the issue of paperwork clearance,
the bill addressed the major business community concern by
overturning the Supreme Court decision, Dole v. United
Steelworkers, to insure that agency information disclosure
requirements are cleared by OMB.
The Committee held a hearing on May 19, 1994, and marked-up
the bill on August 2, 1994, at which time the Committee
unanimously voted to report the bill, in the nature of a
Committee substitute to S. 560. The Senate passed the
legislation by unanimous consent on October 6, 1994. The
Session ended without House action.
Lobbying disclosure and congressional gifts reform legislation
S. 349, The Lobbying Disclosure Act of 2994, would have
replaced existing lobbying disclosure laws with a single,
uniform statute, covering the paid lobbying of Congress and the
Executive Branch on behalf of both domestic and foreign
persons. This bill was considered and reported by subcommittee.
It was reported by the full Committee and passed the Senate
(May 6, 1993) and House (March 24, 1994).
S. 1935, the Congressional Gifts Reform Act was referred to
GAC under a unanimous consent agreement on March 17, 1994 an
favorably reported by the Committee with an amendment in the
nature of a substitute on April 26, 1994. The measure, as
reported, prohibited Members and congressional staff, with very
limited exceptions, from taking gifts from registered lobbyists
and barred all privately funded travel not related to official
business.
The full Senate passed the Committee's S. 1935 substitute
after incorporating several amendments thereto on May 11, 1994.
It was subsequently incorporated in the Conference Report on S.
349, The Lobbying Disclosure Act, to which in modified version
the House had earlier added its gift ban language. The House
passed the Conference Report on September 29, 1994, however,
the Senate was unable to invoke cloture on the motion to
proceed to the Conference Report prior to the sine die
adjournment.
Federal emergency food and shelter program authorization
S. 2218 was to provide authorization of appropriations for
the Federal Emergency Food and Shelter Program for Fiscal Years
1995 and 1996. The Committee favorably reported it without
amendment on August 2, 1994, and it passed the Senate without
amendment on August 10, 1994. No further action was taken on
this legislation after its referral to the House Committee on
Banking, Finance and Urban Affairs Subcommittee on Housing and
Community Development.
measures favorably reported from gac but died in 103rd congress
Federal mandate legislation
The purpose of S. 993, introduced on May 21, 1993 was to
end the practice of imposing unfunded Federal mandates on State
and local governments and to ensure that the Federal Government
pays the costs incurred by those governments in complying with
certain requirements under Federal statutes and regulations.
On November 3, 1993, the Committee held hearings on the
problems and burdens facing State and local governments in
implementing Federal mandates, and on April 28, 1994, the
Committee held a hearing on Federal mandate reform and relief
legislation. On June 16, 1994, the Committee reported out by
unanimous voice vote, S. 993 (as an amendment in the nature of
a substitute), the Federal Mandate Accountability and Reform
Act of 1994. Provisions of S. 1604, were incorporated into S.
993, as reported. S. 1604 was introduced by Chairman Glenn to
provide for greater regulatory flexibility for small
governments, lessen compliance burdens on small governments,
and test innovative regulatory methods.
Federal Employees Fairness Act
S. 404 was introduced by Senator Glenn on February 18,
1993, with ten Senators as original cosponsors, and referred to
the Committee on Governmental Affairs. S. 404, as amended by
Committee, would have improved the effectiveness of
administrative review of Federal employment discrimination
claims. On June 24, 1993, the Committee favorably reported the
bill by voice vote (S. Rept. 103-167).
Federal disaster preparedness legislation
The Federal Disaster Preparedness and Response Act of 1994,
S. 1697, sought to enhance the federal government's ability to
prepare for and respond to disasters that overwhelm the ability
of States, localities, and volunteer organizations to provide
life-sustaining services, shift the emphasis of the Federal
Emergency Management Agency (FEMA) to an all hazards, risk-
based approach, and to emphasize FEMA's mission to provide for
mitigation, preparedness, response, and recovery for all
hazards.
On May, 18, 1993, the Committee held a hearing to consider
how to improve the government's response to disasters,
particularly those causing major devastation. Shortly after
this hearing, Senator Barbara Mikulski introduced S. 995, the
Federal Disaster Preparedness and Response Act, with Chairman
Glenn and others, on a bipartisan basis, as original
cosponsors. On November, 19, 1993, Senator Mikulski introduced
a revised version, S. 1697. both bills were referred to the
Committee.
On August 18, 1994, the Committee considered an amendment
offered by Chairman Glenn in the nature of a substitute to S.
1697 and unanimously ordered the legislation to be favorably
reported to the Senate (S. Rept. 103-400). Due to the press of
other business, the full Senate was unable to consider this
legislation prior to its adjournment sine die.
Congressional coverage legislation
On September 20, 1994, the Committee met to consider H.R.
4822, the Congressional Accountability Act, which passed the
House of Representatives on August 10, 1994. H.R. 4822 was
similar to S. 2071, which was introduced by Senator Lieberman
and referred to the Committee.
At markup, Senator Glenn proposed an amendment in the
nature of a substitute which drew heavily on S. 2071 and H.R.
4822 and was approved by voice vote. It was further amended by
the Committee, and the Committee then voted to report favorably
on H.R. 4822 as amended. The bill was reported as of October 3,
1994 (S. Rept. 103-397).
VIII. Description of Major Full Committee Hearings
annual review of government management
On January 8, 1993, the Committee convened its annual
hearing to review the findings in GAO's high risk reports
which, in 1993, identified 17 areas especially vulnerable to
fraud, waste, abuse, and mismanagement. Specifically, the
hearing raised issues ranging from billions in fraud in food
stamp and Medicare programs, to contract mismanagement at EPA
and the Department of Energy. The sole witness was Charles A.
Bowsher, Comptroller General of the United States.
On January 27, 1994 and February 3, 1994, the Committee
heard testimony from Mr. Bowsher, and Leon E. Panetta, Director
of the Office of Management and Budget (OMB), respectively. The
hearings continued the Committee's broad-based annual review of
government management, and focused on cost savings,
improvements to general and financial management, and the
National Performance Review, as ways to make government more
effective.
s. 171, the epa cabinet level elevation
On February 18, 1993, the Committee held hearings on S.
171, legislation introduced by Chairman Glenn to elevate the
Environmental Protection Agency (EPA) to Cabinet-level status.
Testimony supporting the bill was heard from several U.S.
Senators as well as The Honorable Carol Browner, Administrator,
EPA; Douglas Costle, former Administrator, EPA; Dr. Jay Hair,
President, National Wildlife Federation; and Dr. Stephen Gage,
President, Cleveland Advanced Manufacturing Program.
proliferation threats of the 90's
On February 24, 1993, the Committee held a hearing to
discuss the challenge of curbing the global spread of weapons
of mass destruction. The single witness, CIA Director James
Woolsey, surveyed weapons developments around the world. The
hearing print includes an English translation of a KGB analysis
of the global proliferation threat, a report which Chairman
Glenn released at the hearing. The hearing print also includes
written CIA responses to over 100 questions concerning
proliferation developments around the world.
disposing of plutonium in russia
On March 9, 1993, the Committee held a hearing which
addressed accomplishments and setbacks of U.S. efforts to
accelerate the dismantlement and destruction of plutonium
recovered from Russian nuclear weapons. Testifying at this
hearing was Maj. Gen. (ret.) William F. Burns, the Special US
Envoy on the Safety, Security and Dismantling of Nuclear
Weapons. Joseph E. Kelley of the General Accounting Office
(GAO) also testified on GAO's findings concerning the progress
of this program.
improving governmental organization and performance
On March 11, 1993, the Committee held a hearing on S. 20,
the Government Performance and Results Act, and other
legislation proposing to reform the organization of Federal
agencies and programs. Witnesses: The Honorable Harry Reid,
U.S. Senator (D-NV); The Honorable Leon Panetta, Director,
Office of Management and Budget (OMB); The honorable Charles
Bowsher, Comptroller General of the United States; David
Osborne, Author, ``Reinventing Government''; Martin Gross,
Author, ``The Government Racket: Washington Waste Form A to
Z''; and Peri Arnold, Professor of Government, Notre Dame
University.
human genome diversity project
On April 26, 1993, Senator Akaka chaired a hearing which
examined a supplemental program of the $3 billion Human Genome
Project, the Human Genome Diversity Project. This project is
designed to preserve genetic information from diverse ethnic
and aboriginal populations, many of which are in danger of
losing their genetic identity. The information thus preserved
may have anthropological and biomedical value. Witnesses
included experts from the National Science Foundation, National
Institutes of Health, Department of Energy (DOE), Office of
Technology Assessment (OTA), Stanford University, and the
University of California at Berkeley.
S. 185, THE HATCH ACT REFORM AMENDMENTS OF 1993
The Committee held two days of hearings on S. 185 on April
27 and 30, 1993. Over the two days, oral testimony was received
from: James B. King, Director, Office of Personnel Management
(OPM); David H. Rosenbloom, The National Academy of Public
Administration's (NAPA); Bernard Rosen, Distinguished Adjunct
Professor in Residence, The American University; Marvin H.
Morse, The Federal Bar Association; David Burckman,
Organization of Former Internal Revenue Service Executives; and
David Denholm, President, Public Service Research Council.
federal regulation of medical radiation uses
This hearing, on May 6, 1993, examined a number of gaps and
inadequacies in Nuclear Regulatory Commission's (NRC) and Food
and Drug and Administration's (FDA) ability to regulate medical
radiation. The Committee's investigation and subsequent hearing
resulted in a Memorandum of Understanding between the two
agencies to improve this regulation as well as a review by the
National Academy of Sciences of NRC's medical use program.
Witnesses: Ivan Selin, Chair, NRC; Dr. D. Bruce Burlington,
Director, Center for Devices and Radiological Health, FDA; and
Aubrey V. Godwin, Chair, Conference for Radiation Control
Program Directors.
rebuilding fema: preparing for the next disaster
On May 18, 1993, the Committee held a hearing to consider
how to improve the government's response to disasters,
particularly those causing major devastation. At the hearing,
the GAO presented its final report (``Disaster Management:
Improving the Nation's Response to Catastrophic Disasters'';
GAO/RCED-93-186), prepared at the request of Chairman Glenn and
other Members. In addition, the Committee heard from NAPA on
its extensive study prepared for Congress, entitled ``Coping
with Catastrophe: Building an Emergency Management System to
Meet People's Needs in natural and Manmade Disasters''. These
comprehensive studies found that: the Federal Government's
response plan was deficient in being able to provide victims of
disasters swift and effective assistance due, in part, because
it could not adequately assess the nature and extent of damage;
the Federal Government lacks explicit authority to prepare in
advance of a disaster when there is warning; and State and
local governments do not have sufficient training and funding
to enable them to respond to catastrophic disasters.
Witnesses: J. Dexter Peach, Assistant Comptroller General,
GAO; R. Scott Fosler, President, NAPA; The Honorable Curt
Weldon, Member of Congress; James Lee Witt, Director of the
Federal Emergency Management Agency (FEMA); Dr. Robert C.
Sheets, Director, National Hurricane Center; Dale W. Shipley,
Deputy Director, State of Ohio Emergency Management Agency and
Past President of the National Emergency Management Association
(NEMA); and Dr. Richard T. Sylves, Professor of Political
Science, University of Delaware.
S. 404, the federal employees fairness act
The Governmental Affairs Committee held a hearing on S.
404, the Federal Employee Fairness Act, on may 26, 1993.
Witnesses: The Honorable Barbara A. Mikulski, U.S. Senator;
Nancy Kingsbury, Director, Federal Human Resource Management
Issues, General Government Division, GAO; The Honorable Dennis
DeConcini, U.S. Senator; John N. Sturdivant, National
President, American Federation of Government Employees; Robert
M. Tobias, National President, National Treasury Employees
Union; Joseph M. Sellers, Washington Lawyers Committee for
Civil Rights Under the Law. In addition, a panel of current
Federal employees testified regarding their experience with the
EEO complain process system.
Evaluation of the triad
On June 10, 1993, the Committee held a hearing at which GAO
Assistant Comptroller General Eleanor Chelimsky presented
detailed testimony based on a GAO report, which found that
``there exist systematic disparities between estimates or
claims that have been made about the triad systems and what the
data actually show. We found this to be the case whether the
issue was the likely cost and performance of upgrades, the
actual performance of current systems, or the likely offensive
or defensive threats to these systems from the former Soviet
Union.'' Secretary of Defense William Perry testified in
response to the GAO findings.
EPA contract management problems
On June 22, 1993, a hearing was held which continued
Senator Glenn's examination of EPA contracting abuses. The
hearing was based on reports issued by the Inspector General
and focused on EPA contracts that were no competitive, had
possible conflict of interest problems, or were for
nonessential services, including researching Congressional
oversight of contract management issues and teaching senior
level officials how to testify before Congress. Questions were
raised regarding the lack of cooperation by parts of EPA with
the Inspector General and his staff--some labs were ordered to
``remove and shred'' documents before the auditors arrived.
Witnesses: EPA Administrator Carol Browner, and EPA Inspector
General John Martin.
dod financial management
On July 1, 1993, the Committee examined the results of
financial statement audit work performed by GAO, the Inspector
General for the Department of Defense (DOD IG), and the Air
Force Auditor General in compliance with the Chief Financial
Officers Act. Among other things, the audits found that the
Army had made unauthorized payroll payments in one month to
2,100 individuals totaling $6.1 million; contractors
voluntarily returned to the Defense Finance and Accounting
Service (DFAS) $751 million in overpayments in a six-month
period; DFAS was paying $6 million a year to a public
accounting firm to straighten out its books; and the Navy had
nearly $13 billion in disbursements that had not been matched
to invoices. Witnesses: Charles A. Bowsher, Comptroller General
of the United States; Derek Vander Schaaf, Acting DOD IG; Lt.
Gen. Merle Freitag, Controller of the Army; John Beach,
Principal Deputy Assistant Secretary of the Air Force for
Financial Management; Albert Conte, Acting Assistant Secretary
of the Navy for Financial Management; and Alvin Tucker, Deputy
Comptroller of the Department of Defense.
On April 12, 1994, Senator Glenn held a followup hearing.
Recently released audit reports from the DOD IG and GAO
indicated that DOD's problems were even more significant than
originally thought. For example, as of January 1994, the Army
had made about $8 million in unauthorized payments to soldiers,
including repeated payments to 76 deserters and six ghost
employees. Also, during the first nine months of Fiscal Year
1993, returned contractor overpayments had grown to $1.4
billion--these are payments for which contractors had never
sent the Pentagon a bill. Overall, DOD was found to have
between $32 billion and $41 billion in undistributed
disbursements. And finally, 31 percent of the debts canceled
for Desert Storm/Desert Shield veterans did not meet the legal
requirements for cancellation. Witnesses: Mr. Bowsher, Mr.
Vander Schaaf, and John Hamre, Comptroller of the Department of
Defense.
Finally, on July 12, 1994, the Committee held a hearing to
further review the audited financial statements and financial
management practices of DOD, specifically looking for signs of
progress. Witnesses: Mr. Vander Schaaf; Francis E. Reardon,
Auditor General of the Army; Jackie R. Crawford, Auditor
General of the Air Force; Robert Hale, Assistant Secretary of
the Air Force for Financial Management; Helen T. McCoy,
Assistant Secretary of the Army for Financial Management; and
Richard Keevey, Deputy Comptroller, DOD.
auditing the auditors: waste and abuse at irs and customs?
On August 4, 1993, the Committee held a hearing which
revealed that 368 employees of the Internal Revenue Service
(IRS) had inappropriately accessed and browsed the taxpayer
records of friends, relatives, neighbors, and celebrities--some
employees appeared to have fraudulently manipulated some of
that tax data. The hearing also raised financial audit
findings, such as that IRS lacked controls to ensure that
proper payments were made to its vendors. GAO also testified
that the Customs financial audit revealed it may be losing
billions in revenue because it accepts without checking the
information reported by importers. In addition, Customs was
unable to account for much of its seized property, including
1,850 pounds of marijuana. Witnesses: Charles A. Bowsher,
Comptroller General of the United States; and Margaret Milner
Richardson, Commissioner of Internal Revenue.
environmental problems in the federal government
As part of its continuing effort to address and assess the
Federal government's overall liabilities, the Committee
convened on September 21, 1993 to hear testimony from the
Government's top cleanup officials. While the large cleanup
costs for DOD and DOE installations are well known, the
Committee released a report outlining a number of potentially
serious environmental problems with the Department of Interior.
As a result of the hearing, OMB formed a policy level Federal
facility task force to examine ways to improve the Federal
government's environmental cleanup strategy. Witnesses: Alice
M. Rivlin, Deputy Director, OMB; Steven Herman, Assistant
Administrator, EPA; Thomas P. Grumbly, Assistant Secretary for
Environmental Restoration and Waste Management, DOE; Sherri
Wasserman Goodman, Deputy Under Secretary for Defense
(Environmental Security), DOD; and Michael Heyman, Deputy
Assistant Secretary, Policy Management and Budget, Department
of Interior.
the federal workforce restructuring act of 1993
On October 19, 1993, the Committee held a hearing on S.
1535, the Federal Workforce Restructuring Act of 1993. The
witnesses at the hearing included: James B. King, Director,
OPM; Philip Lader, Deputy Director for Management, OMB; Edwin
Dorn, Assistant Secretary for Personnel and Readiness, DOD.
federal mandates on state and local governments
The Committee held three hearings on the problems and
burdens facing State and local governments in implementing
Federal mandates. On November 3, 1993, the Committee heard
testimony from several U.S. Senators, mayors and other local
officials.
On April 28, 1994, the Committee held a hearing on Federal
mandate reform and relief legislation. In addition to testimony
from more state and local officials, the Committee also heard
from Dr. Robert Reischauer, Director, Congressional Budget
Office; Sally Katzen, Administrator, Office of Information and
Regulatory Affairs (OIRA), OMB; Justin Dart, former Chairman,
President's Committee on Employment of People with
Disabilities; Dr. John Kincaid, Executive Director, Advisory
Committee on Intergovernmental Relations (ACIR); and Robert
Adler, Senior Attorney, Natural Resources Defense Council
(NRDC).
Finally, on April 5, 1994, Senator Dorgan chaired a related
hearing of the full Committee in Minot, ND. The hearing
discussed Federal mandates on both local governments and
private businesses. Witnesses mentioned aspects of health care
reform, metric conversion requirements and environmental
regulations as particularly burdensome Federal mandates.
Suggested remedies included greater regulatory flexibility and
congressional action on several mandate reform bills. All
witnesses were local officials or private businessmen in North
Dakota.
nafta job claims: truth in statistics?
On November 10, 1993, the Committee held a hearing which
examined the methodology used by the Department of Commerce in
estimating the gains in U.S. jobs and exports as a result of
the North American Free Trade Agreement. Testimony was heard
from Dr. Paul London, Acting Under Secretary of Commerce for
Economic Affairs.
human radiation and other scientific experiments: the federal
government's role
Following a number or revelations about Cold War radiation
experiments on unsuspecting U.S. citizens (including a GAO
report released by Senator Glenn which discussed a number of
``intentional releases'' of radiation at DOE and DOD
facilities) the Committee met on January 25, 1994 to review the
status of major agencies' efforts to get to the bottom of their
historical role in these experiments. This hearing resulted in
a Presidential Memorandum being issued to all executive
agencies instructing agency heads to review their policies to
ensure that any human experiment be conducted with strict
adherence to appropriate informed consent guidelines. The
hearing also prompted DOE to make information publicly
available on all current radiation experiments.
Witnesses: The Honorable Hazel O'Leary, Secretary, DOE; The
Honorable Jesse Brown, Secretary, Department of Veterans
Affairs; Dr. Harold Smith, Assistant to the Secretary For
Atomic Energy, DOD; Dr. Donald A. Henderson, Deputy Assistant
Secretary for Health and Science, Department of Health and
Human Services; H. Jack Geiger, M.D., City University of New
York Medical School; Steven Piantadosi, M.D., Ph.D., Johns
Hopkins School of Hygiene and Public Health; Francis X. Masse,
New England Medical Center; and Mrs. Emma Craft, Nashville, TN.
A subsequent hearing was held on December 1, 1994, when the
Committee examined the progress made by the Advisory Committee
on Human Radiation Experiments after six months of searching
for and evaluating the Government's Cold War radiation
experiments. The hearing found that a complete investigation of
these experiments will likely take much longer than originally
planned. Witnesses: Victor S. Rezendes, GAO; Ruth Faden, Ph.D.
Chair, Advisory Committee on Human Radiation Experiments; and
Tara O'Toole, M.D., Assistant Secretary for Environment, Safety
and Health, DOE.
h.r. 3400, government reform and savings act
On February 23, 1994, the Committee heard testimony from
Alice Rivlin, Deputy Director, OMB, and Charles A. Bowsher,
Comptroller General of the United States, to discuss
legislation to implement recommendations of the National
Performance Review.
s. 1587, the federal acquisition streamlining act of 1993
A series of three hearings (February 24, March 10 and 17,
1994) were held jointly with the Senate Armed Services
Committee on the topic of procurement reform and the Section
800 Panel's recommendations. These hearings served as a
critical part of the process which ultimately led to the
passage of this legislation. Witnesses over the three hearings
included: Steven Kelman, Administrator, Office of Federal
Procurement Policy; John M. Deutch, Under Secretary of Defense
for Acquisition and Technology, DOD; Roger Johnson,
Administrator, General Services Administration (GSA); Robert
Murphy, Acting General Counsel, GAO; Derek Vander Schaaf,
Deputy Inspector General, DOD; and numerous representatives of
industry and associations.
federal policies governing the introduction of non-indigenous plant and
animal species
On March 11 and 15, 1994, Senator Akaka chaired this
hearing exploring the extent to which alien pests adversely
impact agriculture, the economy, an the environment, using
Hawaii as a special example. The focus was on how the U.S. can
develop a more comprehensive, effective policy to address this
problem. Witnesses were academic experts, state officials, and
representatives from OTA, the Departments of the Interior,
Commerce and Agriculture and environmental associations.
contract and financial management at doe
On March 17, 1994 the Committee examined a number of
aspects concerning DOE's contract reform initiative. The
hearing closely investigated DOE's use of affiliate
contractors, and whether such contracts were conducted with
appropriate controls. The hearing also examined weak property
management practices at the Department Witnesses: Victor S.
Rezendes, GAO; John C. Layton, Inspector General, DOE; and
William H. White, Deputy Secretary, DOE.
FEDERAL TELECOMMUNICATIONS POLICY
On May 3, 1994, the Committee convened to examine issues
affecting government-wide telecommunications, specifically,
civilian and DOD needs under the current FTS 2000 contract and
the present and future DOD contracts, and the benefits and
disadvantages of aggregating government-wide needs into one
integrated system. In this context, the hearing addressed many
issues including market dynamics, flexibility of contract
requirements, systems interoperability, systems integrators,
and emerging technologies. Witnesses: Jack L. Brock, Director,
Information Resources Management/Policies and Issues Group,
Accounting and Information Management Division, GAO; General
Emmett Page, Jr., (Ret.), Assistant Secretary for Command,
Control, Communications and Intelligence, DOD; and Robert J.
Woods, Associate Administrator for FTS 2000, GSA.
HEALTH CARE INFORMATION MANAGEMENT
On May 6, 1994, the Committee held a hearing to consider
implications of government information management in health
care reform (automation, computer security, privacy).
Witnesses: Sally Katzen, Administrator, OIRA, OMB; Nan Hunter,
Deputy General Counsel, HHS; Leslie Aronovitz, Associate
Director, Health Finance and Policy, GAO; Joel E. Gimpel, Blue
Cross/Blue Shield Association; Lois Gargotto, Director of
Systems Development, HUMANA, Inc.; Carolyn Kelly, Director,
Government and Public Affairs, American Payroll Association;
Donald T. Lewers, M.D., American Medical Association; and
Janlori Goldman, Director, Technology and Law Project, American
Civil Liberties Union.
BOMB PREVENTION VS. BOMB PROMOTION: EXPORTS IN THE 1990's
On May 17, 1994, the Committee held a hearing focusing on
past U.S. exports of nuclear dual-use goods and technologies to
several countries with illicit nuclear weapons programs.
Witnesses from the GAO and six Federal agencies participated in
this hearing, which released data showing that the U.S.
approved over a seven-year period some $29 billion in exports
of nuclear dual-use goods going to controlled countries,
including some $350 million that went to sensitive nuclear
facilities in those countries. The GAO report was published as
``Nuclear Nonproliferation: Export Licensing Procedures for
Dual-Use Items Need to be Strengthened,'' NSIAD-94-119, April
1994.
REGULATORY REVIEW AND PAPERWORK REDUCTION
On May 19, 1994, the Committee held a hearing to consider
legislation to reauthorize the Paperwork Reduction Act, and to
oversee the Administration's conduct of regulatory review under
Executive Order 12866. Witnesses: Gene Dodaro, Assistant
Comptroller General, Accounting and Information Management
Division, GAO; Sally Katzen, Administrator, OIRA, OMB; C.
Boyden Gray, Chairman, Citizens for a Sound Economy; Robert
Coakley, Executive Director, Council on Regulatory and
Information management and Lorraine Lavet, Director of Domestic
Policy, U.S. Chamber of Commerce (Co-chairs, Paperwork
Reduction Act Coalition); David Vladeck, Director, Public
Citizen Litigation Group; and Gary Bass, Executive Director,
OMB Watch.
RADIOACTIVE CONTAMINATION AT SEWAGE TREATMENT PLANTS
This hearing, held on June 21, 1994 jointly with the House
Subcommittee on Environment, Energy and Natural Resources,
examined the failure of the NRC's regulations regarding the
disposal of radioactive material into the nation's sanitary
sewer systems. Witnesses: The Honorable Louis Stokes (D-OH);
Jim Wells, GAO; Ivan Selin, Chairman, NRC; Mike Cook, EPA;
James Payne, Assistant Attorney General, State of Ohio; Jane
Harf, Deputy Director for Low Level Waste, Ohio EPA; and Erwin
J. Odeal, Northeast Ohio Regional Sewer District.
CONGRESSIONAL COVERAGE LEGISLATION: APPLYING LAWS TO CONGRESS
On June 29, 1994, the Committee conducted a hearing on this
topic. The hearing addressed six bills. Four bills apply
various employment, information, and other laws to Congress had
been referred to the Committee: S. 2071 (introduced by Senator
Lieberman), S. 579 (introduced by Senator Smith), S. 103
(introduced by Senator Nickles), and S. 29 (introduced by
Senator McCain). In addition, the Committee on Rules and
Administration had recently voted to report out S. 1824,
containing provisions to apply certain employment-related laws
to the Senate. Finally, S. 2194 (introduced by Senator
Mikulski) addressed personnel management by the Architect of
the Capitol.
Witnesses included several U.S. Senators and Congressmen;
representatives from other legislative branch agencies
including OTA, GAO, Library of Congress, Government Printing
Office, Architect of the Capitol, and Senate Legal Counsel;
representatives from the Occupational Safety and Health
Administration, and Employment Standards Administration in the
Department of Labor, and the Federal Labor Relations Authority,
Office of Senate Fair Employment Practices, and several
scholars on this subject.
HIGH RISKS AND EMERGING FRAUD: IRS, STUDENT LOANS AND HUD
On July 19, 1994, the Committee held a hearing to examine
high risk problems and wasteful operations at these three
agencies. At the hearing, Senator Glenn disclosed that more
than 500 IRS employees had been investigated for unauthorized
borrowing of taxpayer files--a higher figure than the agency
had previously admitted. As a result, the IRS agreed to take a
number of actions for the 1995 filing season, including slowing
down certain refunds and checking the criminal records of tax
preparers, in an effort to reduce fraud. This hearing also led
the Department of Housing and Urban Development (HUD) to seek
more information from its regions to better assess and cope
with the extent of HUD's problems with equity skimming, a very
costly issue. Witnesses: Margaret Milner Richardson,
Commissioner of Internal Revenue; Nicholas Retzensos, Assistant
Secretary for Housing, HUD; James Thomas, Inspector General,
Department of Education; and Susan Gaffney, Inspector General,
HUD.
financial problems: are agencies getting better?
On July 28, 1994, the Committee held a hearing to review
the audited financial statements and financial management
practices of Federal agencies. As a result of this hearing, the
Customs Service tightened measures related to handling drug
seizures, the State Department committed to hiring a Chief
Financial Officer (CFO), and OPM agreed to strengthen the role
of the CFO. Witnesses: Gene Dodaro, Assistant Comptroller
General, GAO; John Payne, Assistant Inspector General,
Department of State; Larry Eisenhart, Acting CFO, Department of
State; Morgan Kinghorn, IRS, Department of Treasury; Patrick
McFarland, Inspector General, OPM; and William Flynn III,
Acting Director, Retirement and Insurance Group, OPM.
full voting representation in congress for the district of columbia
On August 4, 1994, the Committee convened to hear testimony
regarding the voting representation in Congress and proposals
regarding statehood for the District of Columbia. Witnesses
included several Members of Congress; The Honorable Sharon
Pratt Kelly, Mayor, Washington, D.C.; several other District of
Columbia officials and representatives; The Honorable Charles
McC. Mathias, former Senator from Maryland and the former
Chairman of the Senate District of Columbia Committee and
Governmental Affairs Subcommittee on General Services,
Federalism and the District of Columbia; and several academic
experts in this area.
IX. Presidential Nominations
During the 103rd Congress, the Committee received a total
of 48 Presidential nominations, 41 of which were favorably
reported by the committee and confirmed by the Senate. The
following nominations were favorably reported by the committee
and confirmed by the Senate:
Leon Panetta of California, to be Director, Office of
Management and Budget,
Alice M. Rivlin of the District of Columbia, to be
Deputy Director, Office of Management and Budget,
Russell Canan of the District of Columbia, to be an
Associate Judge of the Superior Court of the District
of Columbia,
James B. King of Massachusetts, to be Director,
Office of Personnel Management,
James Lee Witt of Arkansas, to be Director, Federal
Emergency Management Agency,
Sally Katzen of the District of Columbia, to be
Administrator, Office of Information and Regulatory
Affairs, Office of Management and Budget,
Philip Lader of South Carolina, to be Deputy Director
for Management, Office of Management Budget,
Lorraine Allyce Green of the District of Columbia, to
be Deputy Director, Office of Personnel Management,
Roger W. Johnson of California, to be Administrator
of General Services,
Benjamin Leader Erdreich of Alabama, to be a Member
and Chairman of the Merit Systems Protection Board,
Einar V. Dyhrkopp of Illinois, to be a Governor of
the United States Postal Service,
Joseph Swerdzewski of Colorado, to be General
Counsel, Federal Labor Relations Authority,
Kermit Hall of Oklahoma, to be a Member of the
Assassination Records Review Board (new position),
John R. Tunheim of Minnesota, to be a Member of the
Assassination Records Review Board (new position),
William R. Joyce of New Jersey, to be a Member of the
Assassination Records Review Board (new position),
Anna K. Nelson of the District of Columbia, to be a
Member of the Assassination Records Review Board (new
position),
Steven Kelman of Massachusetts, to be Administrator,
Office of Federal Procurement Policy, Office of
Management and Budget,
Henry Graff of New York, to be a Member of the
Assassination Records Review Board (new position),
Edward Jay Gleiman of Maryland, to be a Commissioner
of the Postal Rate Commission,
Rafael Diaz of the District of Columbia, to be an
Associate Judge of the Superior Court of the District
of Columbia,
Rhonda Reid Winston of the District of Columbia, to
be an Associate Judge of the Superior Court of the
District of Columbia,
Judith Bartnoff of the District of Columbia, to be an
Associate Judge of the Superior Court of the District
of Columbia,
Zoe Alice Bush of the District of Columbia, to be an
Associate Judge of the Superior Court of the District
of Columbia,
John Koskinen of the District of Columbia, to be
Deputy Director for Management, Office of Management
and Budget,
Phyllis Nachimoff Segal of Massachusetts, to be a
Member of the Federal Labor Relations Authority,
Vanessa Ruiz of the District of Columbia, to be an
Associate Judge of the District of Columbia Court of
Appeals,
Martha Riche of Maryland, to be Director, Bureau of
the Census, Department of Commerce,
Alice M. Rivlin of the District of Columbia, to be
Director, Office of Management and Budget,
George J. Opfer of Virginia, to be Inspector General,
Federal Emergency Management Agency,
Harvey G. Ryland of Florida, to be Deputy Director,
Federal Emergency Management Agency,
James H. Atkins of Arkansas, to be a Member of the
Federal Retirement Thrift Investment Board,
Scott B. Lukins of Washington, to be a Member of the
Federal Retirement Thrift Investment Board,
Susan Gaffney of Virginia, to be Inspector General,
Department of Housing and Urban Development
(sequentially referred),
June Gibbs Brown of Hawaii, to be Inspector General,
Department of Health and Human Services (sequentially
referred),
Charles Masten of Virginia, to be Inspector General,
Department of Labor (sequentially referred),
Michael Bromwich of the District of Columbia, to be
Inspector General, Department of Justice (sequentially
referred),
Roger C. Viadero of Virginia, to be Inspector
General, Department of Agriculture (sequentially
referred),
Luise S. Jordan of Maryland, to be Inspector General,
Corporation for National and Community Service
(sequentially referred, new position),
Martin Dickman of Illinois, to be Inspector General,
Railroad Retirement Board (sequentially referred),
Valerie Lau of California, to be Inspector General,
Department of the Treasury (sequentially referred), and
Jeffrey Rush of Kansas, to be Inspector General,
Agency for International Development (sequentially
referred).
The following 7 nominations failed of confirmation under
paragraph 6 of rule XXXI of the Standing Rules of the Senate:
G. Edward DeSeve of Pennsylvania, to be Controller,
Office of Federal Financial Management, Office of
Management and Budget,
Father Robert F. Drinan of Massachusetts, to be a
Member of the Civil Liberties Public Education Fund
Board of Directors,
Susan Hayase of California, to be a Member of the
Civil Liberties Public Education Fund Board of
Director,
Cherry T. Kinoshita of Washington, to be a Member of
the Civil Liberties Public Education Fund Board of
Directors,
Elsa H. Kudo of Hawaii, to be a Member of the Civil
Liberties Public Education Fund Board of Directors,
Yeiichi Kuwayama of the District of Columbia, to be a
Member of the Civil Liberties Public Education Fund
Board of Directors, and
Don T. Nakanishi of California, to be a Member of the
Civil Liberties Public Education Fund Board of
Directors.
X. Activities of the Subcommittees
subcommittee on federal services, post office, and civil service
Chairman: David Pryor
Ranking Minority Member: Ted Stevens
I. Hearings
The Federal Services, Post Office and Civil Service
Subcommittee held the following hearings during the 103rd
Congress:
Oversight of the U.S. Postal Service (March 18,
1993). The Subcommittee reviewed information presented
by the Postmaster General. Witnesses: The Honorable
Marvin Runyon, Postmaster General, U.S. Postal Service
(USPS), accompanied by other USPS officers.
Federal Licensing Procedures for Importing and
Selling Firearms (March 26, 1993). The Subcommittee
heard from the Bureau of Alcohol, Tobacco, and Firearms
about its efforts to enforce statutes regarding weapons
import/export. Witnesses: Stephen E. Higgins, Director,
Bureau of Alcohol, Tobacco, and Firearms; Don Cahill,
Legislative Director, Fraternal Order of Police, on
behalf of Dewey R. Stokes; and Richard Gardiner,
Legislative Counsel, Institute for Legislative Action,
National Rifle Association of America; accompanied by
Stephen Halbrook, Consulting Counsel.
Federal Performance: Getting Results (July 14, 1993).
The Subcommittee heard from a variety of witnesses
about successful efforts to improve the efficiency and
effectiveness of Federal programs and Federal
employees. Witnesses: Bernald Kulik, Assistant
Administrator for Disaster Assistance, Small Business
Administration; Professor Harold Seidman, Center for
the Study of American Government, Johns Hopkins
University; Asa Whitaker, Eastman Chemical Company;
Michael Schaffner, Manager, Classification Division,
Pension Benefit Guaranty Corporation; and Gerald
Carson, Analyst, Internal Revenue Service.
Operational Testing: Ensuring Better Weapons for Our
Troops (March 22, 1994). The Subcommittee reviewed
plans by the Department of Defense (DOD) to revise
current operational test and evaluation efforts and
heard from the General Accounting Office (GAO) about
the efficacy of those proposed changes. Witnesses:
Colleen Preston, Deputy Under Secretary of Defense
Acquisition Reform, DOD; Louis J. Rodrigues, Director,
Systems Development and Production Issues, National
Security and International Affairs Division, GAO; and
Russell Murray, former Assistant Secretary of Defense.
Annual Report of the Postmaster General (March 24,
1994). The Subcommittee reviewed information presented
by the Postmaster General. Witnesses: The Honorable
Marvin Runyon, Postmaster General and Chief Executive
Officer, USPS, accompanied by other USPS officers.
A Review of Arms Export Licensing (June 15, 1994).
The Subcommittee reviewed a GAO report prepared at the
Chairman's request regarding the effectiveness of
export ``watchlists'' maintained by the Departments of
State and Commerce. Witnesses: James F. Wiggins,
Associate Director, Acquisition Policy, Technology and
Competitiveness Group, National Security and
International Affairs Division, GAO; William A.
Reinsch, Under Secretary of Commerce for Export
Administration; and Thomas T. McNamara, Acting
Assistant Secretary, Bureau of Political-Military
Affairs, Department of State.
Child Support Enforcement: The Federal Role (July 20,
1994). The Subcommittee heard from Federal, state, and
local officials responsible for ensuring that non-
custodial parents fully comply with their legal
responsibilities. Witnesses: Mary Jo Bane, Assistant
Secretary, Department of Health and Human Services
(HHS) accompanied by David Ross, Deputy Director,
Office of Child Support Enforcement, Department of
Health and Human Services; Judy Jones Jordan,
Administrator, Arkansas Office of Child Support
Enforcement; Pat Addison, Program Specialist, Division
of Child Support Enforcement, Commonwealth of Virginia;
Nancy Ebb, Senior Staff Attorney, Children's Defense
Fund; and Joseph F. Delfico, Director, Income Security
Issues, Health, Education and Human Services Division,
GAO.
Labor-Management Relations at the Postal Service
(November 30, 1994). Witnesses discussed a two-volume
GAO report reviewing problems and prospects for the
improvement of labor-management relations at the Postal
Service. Witnesses: Mike Motley, Associate Director,
Government Business Operations, General Government
Division, GAO; Marvin Runyon, Postmaster General, USPS;
Moe Biller, President, American Postal Workers Union;
Scottie Hickes, President, National Rural Letter
Carriers Association; William Quinn, President,
National Postal Mail Handlers Union; and Vince
Palladino, President, National Association of Postal
Supervisors.
II. Legislation
The following bills were considered by the Subcommittee and
became public law:
S. 622/H.R. 2970, reauthorizes the Office of Special
Counsel (OSC) and Merit Systems Protection Board (MSPB)
for 3 years (through 1997), putting the OSC and the
MSPB on the same authorization schedule. It also
clarifies the rules governing OSC's disclosure of
information about whistleblowers; requires the OSC to
provide detailed information to employees when their
cases are terminated; establishes a 240-day time limit
for OSC to make a determination regarding whistleblower
cases; requires agencies to inform Federal employees of
the rights and remedies available to them under the
Whistleblower Protection Act. (Public Law 103-424)
S. 1130, Federal Employees Leave Sharing Amendments
Act of 1993 made leave bank/leave transfer
demonstration programs permanent law. (Public Law 103-
103)
S. 1131, temporarily extended the proxy premium
formula used to compute the Government's share of
premiums under FEHBP. The bill passed the Senate on
June 28, 1993 and was incorporated into OBRA 1993.
(Public Law 103-66)
S. 1624, Thrift Plan Withdrawal Simplification Act
streamlined and standardized the withdrawal options
available to Federal employees/retirees. It passed the
Senate November 24, 1993 and was incorporated into
Public Law 103-226, the Federal Workforce Restructuring
Act.
S. 2040, treats employees of Federally Funded
Research and Development Centers like other Federal
employees for the purposes of Intergovernmental
Personnel Act transfers. The bill was incorporated into
Public Law 103-337, the DOD Authorization bill.
H.R. 512, FEGLI Living Benefits with amendment,
allows Federal employees diagnosed with a terminal
illness (less than 9 months to live) to withdraw all or
a portion of their life insurance benefits. The
amendment ensured that employees of the Office of the
Comptroller of the Currency (OCC) and the Office of
Thrift Supervision (OTS) will not lose their health
insurance as the OCC and OTS switch back into the
Federal Employees' Health Benefits Program. (Public Law
103-409)
H.R. 588, Abe Murdock Post Office Naming. (Public Law
103-51)
H.R. 1779, Jerry Litton Post Office Naming passed
with two amendments: VA SES last move home technical
correction which corrects a date in a prior statute,
and SES widows and orphans last move home which allows
otherwise eligible families to move home after the
death of a Federal employee. (Public Law 103-388)
H.R. 2056, Sam Perry Post Office Naming. (Public Law
103-410)
H.R. 2294, Graham Purcell Post Office Naming. (Public
Law 103-385)
H.R. 2751, leave bill, was incorporated into Public
Law 103-329, Treasury Postal Appropriations. It allows
Federal employees to use leave for employees serving as
bone marrow or organ donors and allows Federal
employees to use sick leave for purposes relating to
the adoption of a child.
H.R. 3197, Gus Yatron Post Office Naming. (Public Law
103-315)
H.R. 3499, DOD Overseas Teachers' Pay with amendment,
extends leave transfer/leave bank authority to DOD
overseas teachers. The amendment prevents political
appointees from receiving bonuses beginning June 1 of a
presidential election year until January after the
election. (Public Law 103-425)
H.R. 3694, Child Abuse Garnishment Act, allows the
garnishment of Federal annuity if a court so orders as
result of child abuse. (Public Law 103-358)
H.R. 3839, Roy Wheat Post Office Naming. (Public Law
103-341)
H.R. 3840, Sam Hall Federal Building and Courthouse.
(Public Law 103-289)
H.R. 3984, John Longo Post Office Naming. (Public Law
103-453)
H.R. 4177, Candace White Post Office Naming. (Public
Law 103-342)
H.R. 4190, Alvaro de Lugo Post Office Naming with two
amendments. The first amendment, S. 1983, Postal
Reemployed Annuitants, allows the Postal Service to
rehire retired postal workers to fill in as
substitutes. This was particularly helpful to rural
carriers who often have trouble finding replacements
when they fall ill or go on vacation. The second
amendment, FEGLI assignment authority, allows for
irrevocable assignments of life insurance to assist
employees in planning their estate. This brings FEGLI
in line with laws pertaining to other life insurance.
(Public Law 103-336)
H.R. 4191, Aubrey Ottley Post Office Naming. (Public
Law 103-343)
H.R. 4361, Family Friendly Leave Act, allows Federal
employees to use between 5 and 13 days of their paid
sick leave for bereavement purposes or to tend to the
illnesses of family members. (Public Law 103-388)
H.R. 4595, Marian Oldham Post Office Naming. (Public
Law 103-460)
S. Con. Res. 60, Sense of the Senate stating that the
Postal Service should issue a stamp honoring Jewish War
Veterans.
The following bills were considered by the Subcommittee or
Committee but did not become public law:
H.R. 2194, private relief Lannen; marked up September
20, 1994; no floor action.
H.R. 3285, George Young Post Office Naming, approved
by Senate Governmental Affairs Committee with 2
amendments (contract post office closing appeal rights
which would have allowed towns to appeal the closing of
their contract post offices to the Postal Rate
Commission, and FLRA pay adjustment which would have
equalized the pay of Members of FLRA to that of similar
small agencies); no floor action taken.
III. Reports
The following reports were issued at the request of the
Chairman of the Subcommittee:
Defense Force Management: Challenges Facing DOD as It
Continues to Downsize Its Civilian Work Force, GAO/
NSIAD-93-123 (February 1993)
Federal Performance Management: Agencies Need
Flexibility in Designing Their Systems, GAO/RCED-93-57
(February 1993)
Energy Management: Improving Cost-Effectiveness in
DOE's Support Services Will Be Difficult, GAO/GGD-93-88
(March 1993)
Public Affairs: Personnel Engaged in Public and
Congressional Affairs in Federal Agencies, GAO/GGD-93-
71FS (March 1993)
Resolution Trust Corporation: Summary of GAO
Products, GAO/GGD-93-128 (July 1993)
Postal Service: 1992 Olympic Sponsorship--Profit or
Loss Is Unknown, GAO/GGD-93-89 (July 1993)
Army Materiel Command: Providing Early Retirement
Incentives in 1990 Could Have Saved Money, GAO/NSIAD-
93-233 (August 1993)
Office of Technology Assessment: Medical Records
Privacy (October 1993)
Revolving Fund: New Tuition Pricing Policy Is Under
Study by OPM
Government Contractors: Measuring Costs of Service
Contractors Versus Federal Employees, GAO/GGD-94-95
(March 1994)
OPM Revolving Fund: OPM Sets New Tuition Pricing
Policy, GAO/GGD-94-120 (April 1994)
Postage Meters: Risk of Significant Financial Loss
But Controls Are Being Strengthened, GAO/GGD-94-148
(May 1994)
Tax Administration: Information on IRS Executive
Relocations and Travel Matters, GAO/GGD-94-140 (June
1994)
U.S. Postal Service: Proposed Policy to Accept Credit
and Debit Cards Makes Sense Conceptually, GAO/GGD-94-
154 (June 1994)
Export Controls: License Screening and Compliance
Procedures Need Strengthening, GAO/NSIAD-94-178 (June
1994)
Ballistic Missile Defense: Records Indicate Deception
Program Did Not Affect 1984 Test Results, GAO/NSIAD-94-
219 (July 1994)
U.S. Postal Service: Labor-Management Problems
Persist on the Workroom Floor, GAO/GGD-94-201A
(September 1994).
subcommittee on general services, federalism and the district of
columbia
Chairman: Jim Sasser
Ranking Minority Member: John McCain
Hearings, bills, investigations
Investigation into Government mismanagement of Federal
civilian aircraft
After being informed in August 1991 by a Nashville business
owner that despite existing technology, the Federal
government's aircraft--numbering at least 1,300--were being
mismanaged, Senator Sasser opened an investigation which
ultimately found that the cost to taxpayers was a waste of
tens--possibly hundreds--of millions of dollars.
Efforts included requesting Inspector General William
Barton of the General Services Administration (GSA) to conduct
the first ever comprehensive audit of these aircraft and assess
GSA's management of the planes; and urging OMB to strengthen
its regulations to ensure that all flights on all Federal
civilian aircraft are documented and held accountable to public
scrutiny and to improve it enforcement of aircraft regulations.
In March of 1993, the Subcommittee issued a report for the
President on the status of Federal civilian aircraft management
including criticisms of the current system and recommendations
on how to improve efficiency. The President responded by letter
that he would make aircraft management a priority.
Administrator Johnson wrote Senator Sasser on July 29,
1993, informing him of actions taken in response to the
Senator's recommendations. GSA has now compiled an accurate
count of all non-military Federal aircraft and how they are
used. Moreover, all aircraft owning agencies are currently
working together, at the insistence of Senator Sasser, to
incorporate a government-wide computer inventory to document up
to the minute aircraft usage and expenditures.
As a result of the Subcommittee's investigation of all
Federal civilian aircraft, the Inspector General of the U.S.
Department of Agriculture (USDA) conducted a review of the
Forest Service's airplanes and learned that at least 28 former
military planes had been illegally transferred through the
Forest Service to private contractors. The contractors were
supposed to have used the planes for fighting fires on Federal
lands, but subsequent investigation revealed that less than
half of the planes were even outfitted to fight fires, much
less used to do so. For instance, one contractor took the
aircraft he received for free and leased it back to the allies
to transport equipment and supplies in Kuwait during Operation
Desert Shield/Storm for a profit of almost a million dollars in
spite of the end use regulations that prevented the planes from
being flown abroad. Other contractors scrapped the airplanes
they received and sold the parts on the open market for cash. A
middleman who arranged the transfer of airplanes received cash
and aircraft worth over a million dollars for his fee.
The Justice Department is currently reviewing the transfer
arrangement for criminal wrongdoing and the USDA Inspector
General, at Senator Sasser's request, is considering action to
recover the planes or the proceeds derived from them.
Comprehensive study of waste, fraud and abuse at GSA
On September 30, 1992, GAO completed the most comprehensive
ever investigation of GSA, instigated at the request of Senator
Sasser in mid-1991. The GAO study found that GSA was prone to
unnecessary losses in virtually every aspect of its duties--
including building and maintaining Federal structures, managing
government automobiles and assuring other Federal agencies of
the cheapest possible goods and services from the private
sector.
Vice President Gore's National Performance Review echoed
the concerns raised in the Subcommittee report and called for a
massive overhaul of a number of GSA operations. Most
particularly, the Administration and the Governmental Affairs
Committee completed work on an overhaul of the Federal
government's contract procurement process, the Federal
Acquisition Streamlining Act.
In response to the increased scrutiny brought about by the
Subcommittee report, GSA suspended all office space
procurements not yet under construction (or for leases, in the
contract phase) to review each and every one to ensure cost-
efficiency.
Fraud in the Federal Workers' Compensation Programs
In January of 1992, responding to a report by the Inspector
General of TVA citing massive abuse in its Workers'
Compensation Program, Senator Sasser called for a government-
wide inquiry into the efficiency of the Federal workers
compensation program.
After correspondence with the TVA IG, Senator Sasser
introduced legislation to plug two major loopholes which
allowed payments of thousands of dollars in fraudulent and
unnecessary workers' compensation claims. This bill would
prevent the collection of workers' compensation benefits if the
beneficiary (1) was convicted of workers' compensation fraud or
(2) was incarcerated (with an exception for dependents relying
on the payments). The provisions of this legislation were
included as a proposal for reducing government waste in Vice
President Gore's National Performance Review.
Discouraged by the slow pace of reform in the workers'
compensation area, Senator Sasser wrote to the President's
Council on Integrity and Efficiency (PCIE), the
Administration's office that oversees the Inspectors General,
to recommend they play a more active role in solving the
problem.
Investigation of GSA lease procurement of Federal office
space for the Federal Communications Commission
As Chairman of the Subcommittee which oversees the General
Services Administration, the government's ``real estate
agent,'' Senator Sasser requested that the GAO examine GSA's
controversial decision to cancel the consolidation of FCC
headquarters. The project, which was over five years in
planning and would save millions of taxpayer dollars, was
reportedly canceled over the FCC's unreasonable refusal to
relocate. After GAO reported that it would cost a million
dollars to redo the project, plus unknown costs of delay and
interim lease expenses, the government agreed to reconsider its
decision.
Passage of a provision that promotes private resale of
government automobiles resulting in substantial
government savings
At the urging of Senator Sasser, the 1994 appropriations
bills for general government amended current law to clear the
way for more private auction companies to sell off unneeded
government vehicles. Figures show that such companies handle
the sales more quickly than the government and on average, net
the taxpayer over $1,000 more per vehicle. As a result of this
amendment, GSA placed several contracts for private auction
services which will realize several million dollars in savings
to the government.
Commissioned GAO report criticizing the General Services
Administration's poor job of collecting default
payments from poor performing vendors
On June 15, 1994, Sasser released a report prepared by GAO
at his request detailing the terrible job GSA has done
collecting default payments from poor performing vendors. Of 40
defaulted contracts surveyed by GAO, costs either had been only
partly recovered or had not been recovered at all. In many
cases, GSA had not even identified what costs were recoverable,
much less made an attempt to recover them. GSA agreed there are
weaknesses in its recovery program and began working to make
corrections.
Assisted Corrections Corporation of America (CCA) with its
contract maintaining District of Columbia prisoners
and with a Bureau of Prisons contract for a private
Federal facility
At the request of CCA, Senator Sasser, through the
Subcommittee on General Services, contacted the District
government to express concern about their withdrawal of
prisoners from CCA facilities in Tennessee while the District
was under court order to reduce its prison population. Citing
budget concerns, the District intended to make room for its
returning prisoners by paroling current inmates. Presently, the
District has removed its prisoners from every facility with
which it was contracting except CCA. In the 1993 District of
Columbia appropriations bill Senator Sasser secured conference
language stating it was the belief of the conferees that the
District had been well-served by its contracting arrangements
with private facilities (CCA) and that such a relationship
should continue until the District had adequately dealt with
its overcrowding problem.
In May of 1991, the Bureau of Prisons (BOP) awarded the
contract for a 1000 bed private prison to a company that was
unable to fulfill its contract obligations. After several
contacts by Senator Sasser including a letter to the Director
of BOP on April 29, 1993, the Bureau canceled the award and
rebid the contract allowing CCA and other competitors another
opportunity to win the award. The contract was reawarded on May
17, 1993, yet once again the winning contractor failed to
perform. Senator Sasser wrote to BOP again on September 17,
1993 requesting a status report on the second contract, the
reasons for the delay, and BOP's plan for dealing with the
problem. The BOP responded that the contract may once again
need to be rebid, or in the alternative, that the contract
award may be passed along to the second ranked bidder from the
most recent award. Either option would give CCA and other
bidders another opportunity to win this important pilot project
in the privatization of a Federal prison.
Intervention with Bureau of Prisons on behalf of
Corrections Management Affiliates (CMA)
At the request of CMA, Senator Sasser through the
Subcommittee on General Services, contacted the BoP on
September 16, 1993 to request that CMA be allowed to
participate in negotiations with Bop on behalf of CMA's client,
the Town of Hinton, OK. CMA managed a Hinton, OK correctional
facility which leased beds to BoP but had been excluded from
bargaining on behalf of Hinton by BoP. Senator Sasser was
informed by BoP that CMA would be allowed to participate in the
meeting.
National Women's Health Resource Center
This bill was reported from the Subcommittee, and Congress
eventually passed it to authorize the National Women's Health
Resource Center in Washington, D.C. The spotlight was growing
on the need for greater research into women's health problems.
The Center will be run by the Congressionally-chartered and
nationally known Columbia Hospital for Women; it will provide
world-class research on women's health. The bill passed with
unanimous Democratic and Republican support.
Letter to Attorney General requesting scrutiny of a request
by the Pharmaceutical Manufacturer's Association
(PMA) to be exempt from certain anti-trust
liability
On March 12, 1993, Senator Sasser wrote to Attorney General
Reno requesting that the Department of Justice give careful
scrutiny to a request by the PMA for a ``business letter''
asserting that the Department would forego an anti-trust
prosecution of PMA members for certain price-fixing agreements.
The PMA claimed such agreements would eventually lead to
reduced prescription drug prices for the consumer. Senator
Sasser expressed doubt that ``voluntary'' price restraints by
the PMA would be sufficient in light of the fact that
prescription drug prices increased almost three times faster
than normal inflation in the 1980s.
Introduction of S. 1606, The Federal Mandate Funding Act of
1993
On November 1, 1993 in response to appeals from over 100
cities and towns, Senator Sasser introduced S. 1606, The
Federal Mandate Funding Act of 1993, which would have provided
relief to state and local governments for the costs they incur
in implementing Federal legislation. Because of the dramatic
increase in the number and amount of Federal mandates on state
and local governments over the last decade, many local
governments were finding it increasingly difficult to meet
their own needs while also keeping up with Federal funding
requirements. This legislation was referred to the
Subcommittee.
This legislation (1) required Congress, before it passed
significant Federal mandates in the future, to state
specifically how much Federal reimbursement or cost sharing is
authorized, and in no case will such reimbursement be less than
20 percent; (2) further imposed an actual moratorium on new
mandates on state and local governments for two years to assess
the impact of current mandates already enacted but not yet in
effect; and (3) created a fund to furnish additional mandate
relief to hard-pressed state and local governments to
supplement any Federal cost-sharing already in place.
Critized the Department of Health and Human Services (HHS)
for not moving quickly enough to make its human
radiation records public
On May 27, 1994, Senator Sasser wrote a letter to Donna
Shalala, Secretary of the Department of Health and Human
Services, concerning HHS's delay in locating and making public
its thousands of pages of records on human radiation
experiments. The letter noted the Department of Energy and
other agencies were moving forward by making their records
public, but that HHS appeared to be lagging behind. Senator
Sasser requested that Shalala take steps to review the
Department's files and disclose its human radiation records as
soon as possible.
Commissioned a comprehensive audit by GAO of TVA's power
needs and debt load
In June of 1994, Senator Sasser requested a GAO audit to
determine whether the Tennessee Valley Authority's current
power supply options (as coal, gas, nuclear, etc.) are adequate
to meet the Valley's power needs in the foreseeable future.
Since TVA is in the process of bringing some of its nuclear
plants back on line, it was an appropriate time to make certain
TVA and Congress understand the proper mix of available power
sources to make the most efficient use of each. Senator Sasser
also requested that GAO examine TVA's debt limit and determine
whether TVA is handling its debt in a manner most beneficial to
ratepayers.
National Law Enforcement Officers Memorial
Senator Sasser successfully assisted in resolving a dispute
involving the Washington Metro, which was holding up completion
of this Memorial (located in Judiciary Square in Washington,
D.C.). Writing to Metro's Board of Supervisors, Senator Sasser
won Board approval of a design which incorporates Metro's
handicapped elevators into the Memorial's overall design. The
Memorial walls contain the names of over 42,000 law enforcement
officers killed in the line of duty in our country's history,
dating back to 1794.
Significant National Capital Planning Commission Actions
and Senator Sasser's vote as Chairman of the
Subcommittee and a Member of the Commission
National Black Revolutionary War Veterans' Memorial:
Senator Sasser's vote on the 12-member Commission was to
approve final designs for this monument, clearing the way for
groundbreaking. This is a monument authorized by Congress, to
be paid for entirely with private funds, which will be placed
nearby a memorial to the Framers of the U.S. Constitution in
Washington, D.C.
Transfer of Federal Land (Children's Island) to the
District of Columbia: Senator Sasser's vote was to deny the
transfer of 46 acres of Federally-owned land to the District
government. These are artificial islands in the Anacostia river
in Washington, D.C., which were created by the U.S. Army Corps
of Engineers at Federal taxpayer expense. Senator Sasser,
through his representative on the Commission, objected to such
an uncontrolled giveaway of Federal property, especially since
the District planned to turn control of it over to private
developers for a vaguely-described ``theme park'' which would
charge admission to the public. The proposed transfer is
currently under congressional investigation.
Permission to Use Federal Land for a New Redskins Stadium:
Senator Sasser voted with a majority of the Commission to
require the U.S. Department of the Interior, which controls the
land under R.F.K. Stadium, to do more studies of alternatives
such as renovating the N.F.L. team's existing stadium.
Tentative agreements between team owner, Jack Kent Cooke, and
the District government would have allowed Cooke to build his
stadium on adjacent Federal land and keep all parking fees and
various other profits from use of this land.
Federal Detention Center in Washington, D.C.: The
Subcommittee has been studying Federal Detention Centers in
other major U.S. cities to determine the feasibility of placing
a similar facility in Washington, D.C. Such centers are used to
house Federal prisoners awaiting trial, or post-trial offenders
awaiting permanent sentencing. DOJ estimates that Washington
will need a 1,000-bed facility within the next few years;
District officials would likely want to locate the center in a
neighboring jurisdiction, but Justice officials prefer keeping
the facility in Washington.
subcommittee on permanent investigations
Chairman: Sam Nunn
Ranking Minority Member: William V. Roth, Jr.
The following is a list of activities of the Permanent
Subcommittee on Investigations during the 103rd Congress in the
areas of hearings, legislation and reports.
I. Historical Background
The Permanent Subcommittee on Investigations was originally
authorized by Senate Resolution 189 on January 28, 1948. At
that time, the Subcommittee was part of the Committee on
Expenditures in the Executive Departments. In 1952, the parent
committee's name was changed to Committee on Government
Operations and in early 1977 to the Committee on Governmental
Affairs. The Subcommittee's records and jurisdiction actually
antedate its creation since it was given custody of the
jurisdiction of the old Special Committee to Investigate the
National Defense Program (the so-called War Investigating
Committee), chaired by Senator Harry S Truman during World War
II.
The Subcommittee has had seven 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), and William V. Roth of Delaware (1981-1986).
Until 1957, the subcommittee's jurisdiction was principally
the investigation of waste, inefficiency, impropriety, and
illegality in government operations. It has been expanded
considerably since then. 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 also by Senator McClellan.
This 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 was in operation for three years sharing office
space, personnel, and other facilities in common with the
Permanent Subcommittee.
Upon the expiration of the Select Committee in early 1960,
its jurisdiction and files were transferred to the
Subcommittee, greatly enlarging the Subcommittee's
investigative authority in the labor-management area.
The Subcommittee's jurisdiction was broadened further in
future years. In 1961, authority was granted for inquiries into
syndicated or organized crime. The famous Valachi hearings were
held in 1963. In the wake of riots and civil disturbances that
marked the summer of 1967, a Resolution was approved directing
the Subcommittee to investigate the causes and to recommend
corrective action. In January 1973, the National Security
Subcommittee was merged with the Subcommittee. With this, the
Subcommittee's jurisdiction was further enlarged to include
inquiries concerning the adequacy of national security staffing
and procedures, relations with international organizations,
technology transfer, and related matters. And, in 1974,
jurisdiction was conferred to investigate the government
operations involving the control and management of energy
resource and supplies.
Armed with this broad jurisdictional mandate, the
Subcommittee has initiated investigations into a wide variety
of topics during the past decade ranging from child pornography
to espionage. A significant number of these investigations have
involved a review of organized crime activities, including
labor racketeering, fraudulent insurance plans, and newly
emerging criminal groups. The Subcommittee has also spent
considerable effort reviewing all aspects of narcotics
trafficking, including money laundering, Federal drug
enforcement, and drug abuse. In recent years, the Subcommittee
has devoted increasing attention to allegations of waste,
fraud, and abuse in government programs.
II. Hearings
1. Oversight of the Insurance Industry: Blue Cross/Blue
Shield--National Capital Area--January 26 and 27,
1993
The Subcommittee continued its series of investigations
into the management and regulation of various Blue Cross and
Blue Shield (BCBS) plans by examining the BCBS plan for the
National Capital Area (BCBS-NCA), also known as Group
Hospitalization and Medical Services, Incorporated (GHMSI). The
investigation of BCBS-NCA resulted in the fourth set of
hearings in the series of BCBS investigations by the
Subcommittee.
The investigation into GHMSI, which processed over $1
billion in premiums and claims annually, was spawned by the
testimony of the Superintendent of Insurance for the District
of Columbia, Robert M. Willis, on July 2, 1992 at the
Subcommittee's initial hearing regarding mismanagement within
the BCBS system. Superintendent Willis informed the
Subcommittee that due to provisions contained in BCBS-NCA's
original 1939 Congressional Charter, he was precluded from
effectively regulating this Plan. As a result of this
testimony, Senator Nunn introduced legislation on July 29,
1992, which was signed into law on October 5, 1992, amending
the Congressional Charter and subjecting BCBS-NCA to regulation
by the District of Columbia. Because this amendment included
only a one-year provision, Senator Nunn later introduced the
amendment as a permanent measure and it was signed into law on
November 1, 1993.
Also as a result of Superintendent Willis' testimony on
July 2, 1992, the Subcommittee launched an extensive
investigation of BCBS-NCA which resulted in two days of public
hearings on January 26 and 27, 1993. At these hearings, the
Subcommittee staff and insurance regulators for Virginia and
the District of Columbia described many of the same problems
identified in the West Virginia and Maryland plans examined in
prior hearings. These problems included a proliferation of 45
subsidiary companies incurring cumulative losses in excess of
$100 million; excessive spending, exorbitant salaries and
fringe benefits for executives, and questionable travel and
entertainment expenses; inadequate oversight by the Board of
Trustees; inadequate regulation by the District of Columbia,
Maryland and Virginia insurance authorities; and inadequate
oversight by the BCBS Association.
The Subcommittee also heard testimony from Benjamin
Giuliani, then President and CEO of the Plan, from Peter J.
O'Malley, Chairman of the Board of Trustees of BCBS-NCA, and
from Charles Duvall, M.D., former Chairman of the Board of
Trustees. Additionally, the Subcommittee subpoenaed the
appearance and testimony of Joseph P. Gamble, the recently
retired President and CEO of the Plan, who invoked his Fifth
Amendment privilege against self-incrimination and declined to
respond to Subcommittee questioning.
2. Corruption in Professional Boxing, Part II--March 10 and
April 1, 1993
The Subcommittee continued the first Senate investigation
into professional boxing in over 30 years, following up on
hearings held during the 102nd Congress. Those hearings
revealed widespread and systemic problems in the boxing
industry, including ineffective regulation by state regulatory
bodies, widespread unfair and corrupt practices and continued
organized crime influence.
The Subcommittee's hearing on March 10, 1993, focused on
current health and safety issues in professional boxing, as
well as the role of television in the boxing industry. These
hearings revealed that perhaps the most important area in which
the current system of state regulation of professional boxing
has proven ineffective is protection of the health and safety
of boxers. The patchwork system of state regulation of
professional boxing results in wide variations from state to
state both in health and safety rules themselves and in the
enforcement of those rules. As a result, it is the boxers who
suffer. The Subcommittee heard testimony from a panel of
physicians, who work closely with state boxing regulators,
endorsing the need for uniform minimum national health and
safety standards for professional boxing. That goal was also
supported by the representatives of the television industry who
testified at the hearing.
Congressman Bill Richardson also testified about the
problems currently facing professional boxing, including health
and safety concerns, and the need for Federal regulation of the
sport, particularly regarding uniform minimum national health
and safety standards. Congressman Richardson specifically
advocated the need to adopt the Professional Boxing Corporation
Act of 1993, legislation that Senator Roth and Congressman
Richardson introduced in both the Senate and the House,
respectively (S. 1189 and H.R. 2607).
The Subcommittee's hearing on April 1, 1993, revealed the
continuing influence of organized crime on professional boxing
and the failure of state regulators to effectively eliminate
that influence. The Subcommittee's investigation identified
three currently active world class boxers with significant ties
to organized crime figures as case studies of how the current
regulatory structure has failed to keep organized crime out of
boxing. The three boxers are former World Boxing Council
welterweight champion James ``Buddy'' McGirt, former
International Boxing Federation super-middleweight champion
Iran Barkley, and former World Boxing Association cruiserweight
champion Bobby Czyz. Salvatore ``Sammy the Bull'' Gravano,
former underboss of the Gambino organized crime family,
testified that a member of the Gambino crime family ``owned a
piece'' of Buddy McGirt, and that Alfred Certissimo, McGirt's
manager of record, was an associate of the Gambino family. Both
McGirt and Certissimo testified before the Subcommittee, as did
alleged organized crime figures who were found to have ties to
boxers Barkley and Czyz; two of those individuals exercised
their Fifth Amendment rights and did not respond to
Subcommittee questions.
3. Oversight of the Insurance Industry: Blue Cross/Blue
Shield--Empire Plan (New York)--June 25 and 30,
1993
The Subcommittee continued its investigation into
management and regulatory weaknesses within the Blue Cross and
Blue Shield (BCBS) system by examining the country's largest
BCBS plan, Empire BCBS of New York. The Subcommittee's June 25
and 30, 1993 hearings, the fifth in this series, revealed that
Empire insured over 8 million subscribers and collected over $6
billion in premiums in 1992, yet experienced financial losses
of over $250 million in the two years preceding the
Subcommittee's investigation.
The causes of Empire's financial instability reflected many
of the weaknesses exhibited by other BCBS plans examined by the
Subcommittee, namely: mismanagement, including exorbitant
executive salaries and excessive spending; poor financial
performance by subsidiary companies; inadequate oversight by
the Plan's Board of Directors, which was chaired by the Plan's
Chief Executive Officer; inadequate regulation by the State
Insurance Department, and inadequate oversight by the BCBS
Association.
Among the most critical allegations was the Subcommittee
staff's testimony that Empire's Chief Executive Officer, Albert
A. Cardone, and Chief Financial Officer, Jerry Weissman,
knowingly misrepresented to New York State regulators the
Plan's underwriting gains/losses in certain segments of its
business. Two former employees of Empire also testified that
when they became aware of the discrepancy between the figures
provided to the state regulators and those maintained by
Empire's financial department, they confronted both Cardone and
Weissman yet nothing was done to rectify the situation.
Several of Empire's executives appeared before the
Subcommittee on June 25, 1993, including Albert A. Cardone and
Jerry Weissman. Weeks before the Subcommittee's hearings,
Cardone had resigned as Chairman and CEO of Empire. Weissman,
when questioned about the inaccurate figures provided to the
State Insurance Department, denied any wrongdoing and explained
that the discrepancy had been the result of using two different
accounting methods. Subsequently, on October 18, 1994, Jerry
Weissman was indicted by a grand jury sitting in the Southern
District of New York on three counts of perjury in testimony
given before the Subcommittee and one count of obstructing the
Subcommittee's investigation of Empire.
4. Abuses in Federal Student Grant Programs--October 27 and
28, 1993
As part of its review of fraud, abuse and mismanagement in
student aid programs within the Department of Education, the
Subcommittee held two days of hearings on the largest direct
Federal student aid program, the Pell Grant Program. The Pell
Grant program is the foundation of all student aid and is
designed to provide financial aid to qualified undergraduate
students who need it the most. In the 1991-1992 school year,
3.7 million students shared in $6.79 billion in Pell Grant
awards. The Subcommittee found, however, gross abuse of the
Pell Grant program which went unchecked by the Department of
Education.
The Pell Grant program relies on schools to properly
document, calculate, and verify the needs of eligible students
and depends on the Department of Education to properly oversee
the schools to assure that the program is not being abused or
defrauded. Unlike Federally guaranteed student loans, Pell
Grants are administered and disbursed by the schools where the
students are enrolled and are not required to be repaid. The
Subcommittee staff found that the Department of Education
continued to recognize and provide Pell Grant funds to school
which did not meet the statutory requirements for institutions
of postsecondary education. Additionally, a review by the U.S.
General Accounting Office criticized the capability of the
Department of Education of effectively manage the multi-
billion-dollar student aid programs.
Senator Claiborne Pell (D-RI), who sponsored the 1973
legislation creating this grant program and for whom the
program was subsequently named, expressed his concern over the
abuse the Subcommittee staff uncovered. In addition to poor
oversight exercised by the Department of Education, the
Subcommittee's investigation also found: schools which received
Pell Grants for students who told the Subcommittee staff that
they never attended the courses nor the schools; schools which
paid students to attend classes so that the school could
collect and pocket Pell Grant funds as profit; students who
attend classes for money paid to them by the school, not to
attain any educational or vocational goal; and schools which,
in contravention of law, falsified or manufactured records to
enable ineligible students to obtain Pell Grants.
Just prior to the Subcommittee's hearing, the Department of
Education took action against 20 schools in the New York City
area after determining that they failed to meet the statutory
criteria for participation in the Federal student financial aid
programs. Some of those schools had been participating in the
Pell Grant program since the early 1970s.
5. Criminal Aliens in the United States--November 10 and
16, 1993
During the 102nd Congress, the Subcommittee's investigation
of Asian organized crime revealed that alien smuggling can be
more profitable for Asian organized crime syndicates and less
risky than drug smuggling, indicating a growing problem with
criminal aliens (i.e., aliens in the United States who commit
crimes in this country). Based on those findings, the
Subcommittee conducted an investigation and held hearings on
criminal aliens in the United States. The hearings revealed
widespread problems with criminal aliens with the need for
change at all levels of the current system.
On November 10, 1993, the Subcommittee heard testimony from
a panel of criminal aliens each of whom confirmed what the
Subcommittee's investigation found; namely that, even in the
rare instances when the system finally works and a criminal
alien is deported, reentry into the United States is so easy
that it makes the whole process appear to be a giant exercise
in futility. Despite the fact that reentry into the U.S. after
being deported is a felony, the Subcommittee found that these
cases are not a high priority for Justice Department
prosecutors, who frequently fail to prosecute violators.
The Subcommittee's hearings showed that the current system
for dealing with criminal aliens rarely works effectively, with
problems at every level. The Federal deportation laws for
criminal aliens set out an irrational, lengthy, complex process
far beyond what is due already convicted criminals. In
addition, the Immigration and Naturalization Service (INS), the
agency responsible for enforcing the immigration laws and for
deporting criminal aliens, is lacking the resources and the
management priorities necessary to effectively deal with this
problem. Finally, the Subcommittee's investigation found
evidence of local governments refusing to cooperate with the
INS, making an already difficult job that much harder.
At the Subcommittee's November 16, 1993, hearing, INS
Commissioner Doris Meissner outlined the priorities and goals
for the INS criminal aliens program, including plans for an
automated case tracking and reporting system and a fingerprint-
based automated identification system. The Subcommittee also
heard testimony from representatives of the Executive Office of
Immigration Review (EOIR), which is responsible for conducting
deportation hearings for criminal aliens. These immigration
judges confirmed the obstacles presented by current Federal
immigration law in effectively dealing with the problem of
criminal aliens. These judges also testified that, while the
EOIR established the Institutional Hearing Program (IHP) to
provide expeditious hearings for alien inmates at designated
correctional institutions, this program is under-utilized. For
example, on any given day, the Los Angeles county jail will
house approximately 2,200 criminal aliens; yet the INS may
present only six cases a day to the institutional hearing
program there. This investigation led to the introduction by
Senator Roth of the Criminal Alien Control Act of 1994 (S.
1934).
6. International Organized Crime and Its Impact On The
United States--May 25, 1994
In keeping with its historical interest in the problem of
organized crime, the Subcommittee examined international
security implications arising from the dramatic increase of
organized crime in the states of the former Soviet Union. At
the hearing held on May 25, 1994, the Subcommittee heard
testimony from a distinguished panel of law enforcement experts
from the United States, Germany and Russia.
Lois Freech, Director of the Federal Bureau of
Investigation, announced to the Subcommittee that the FBI
planned to establish a legal attache office in Moscow, marking
the first time that the Department of Justice would be
stationing full-time law enforcement officers in Russia. Hans-
Ludwig Zachert, President of the German Federal Criminal
Police, also testified before the Subcommittee regarding his
efforts in combating organized crime and the threat presented
to Germany by the increase of organized crime in the former
Soviet Union. Finally, the Subcommittee heard from General
Mikhail Yegorov, First Deputy Minister and head of the
Organized Criminal Control Department of the Russian Ministry
of Internal Affairs.
The testimony underscored the increasing strength of
Russian organized crime groups, including evidence of their
growing presence in the United States and joint activity
between Russian and American organized crime groups. These
witnesses told the Subcommittee that the fear of this criminal
activity has spread not only to the United States but to many
of Russia's neighbors, including Germany and Poland. Most
significantly, the Subcommittee received evidence that Russian
organized crime groups may begin trafficking in nuclear
materials and weapons of mass destruction. Recognizing all
these problems Director Freeh testified that it was critical
that U.S. law enforcement authorities cooperate with their
counterparts in Russia and Eastern Europe in order to
effectively combat these organized crime groups.
7. Oversight of the Insurance Industry: Blue Cross/Blue
Shield--Federal Contracts--August 5 and 8, 1994
In its sixth and final hearings on the Blue Cross and Blue
Shield (BCBS) system, the Subcommittee examined the performance
and oversight of the BCBS Association in its contracts with the
Federal Government. These contracts allow BCBS plans across the
country to provide health insurance coverage to over 40 percent
of the Federal employees, dependents and annuitants through the
Federal Employees Health Benefits Program (FEHBP) and to
process over 90 percent of all Medicare Part A and 65 percent
of all Medicare Part B claims. As a result, the Federal
Government pays the BCBS system over $1.5 billion annually in
administrative costs.
The Subcommittee found that BCBS' relationship with the
FEHBP and Medicare programs was marked by some of the same
problems uncovered in the investigations of several individual
BCBS plans, including mismanagement and inadequate oversight by
responsible regulatory authorities.
The Subcommittee staff found that problems in the BCBS
Federal contracts included a multi-layered, complex and costly
organizational structure; excessive administrative costs;
improperly withheld provider discounts by some plans; poor
customer service; unreconciled enrollment allowing former
Federal employees to continue to receive BCBS benefits; and
unreasonable and exorbitant expenses for conferences, gifts and
salaries being charged to the Federal contracts.
The Office of Personnel Management (OPM) is responsible for
oversight of the BCBS contract with the Federal Employees
Health Benefits Program. The Health Care Financing
Administration (HCFA) of the Department of Health and Human
Services is vested with regulating the performance of BCBS
plans as Medicare contractors. Representatives of each of these
agencies testified before the Subcommittee regarding their
oversight and regulatory efforts. Both OPM and HCFA
representatives told the Subcommittee that they had met with
uncooperative attitudes and evasive tactics on the part of the
BCBS Association and the individual participating BCBS plans,
and OPM, in particular, faced considerable difficulty in
effective regulation as a result.
Bernard R. Tresnowski, President and Chief Executive
Officer of the BCBS Association, testified that the
Association, in response to this investigation, had instituted
reforms within the Blue Cross and Blue Shield system that were
intended to address many of the Subcommittee's concerns.
III. Legislation
The Subcommittee does not have legislative authority, but
its investigations contributed to the development of the
following legislative initiatives:
S. 285--Medicare Secondary Payer Reform Act of 1993 (by
Senator Roth). This legislation is the result of hearings held
by PSI on July 11 and 12, 1990, on health care fraud in the
Medicare Secondary Payer (MSP) program. Senator Roth introduced
different legislation on this subject in the previous two
Congresses. The Subcommittee's investigation revealed the need
to better identify Medicare-eligible individuals who have
private insurance so that Medicare pays secondary and the
private insurance pays primary. Federal Government estimates
indicate that losses of between $400 million to $1 billion
annually are occurring as a result of the failure of this
program. This legislation amends the Federal W-2 tax form
adding one additional line regarding employers health insurance
coverage. This bill would also establish a data bank for the
collection and processing of this health insurance information.
S 285 was introduced on February 3, 1993 and was referred to
the Senate Finance Committee. No further action was taken on
this legislation during the 103rd Congress.
S. 1091--The International Organized Crime Control Act of
1994 (by Senator Roth). This legislation contains a variety of
measures, most of which were recommended by the PSI report of
December 1992 on ``The New International Criminal and Asian
Organized Crime.'' The report followed an extensive PSI
investigation and five days of hearings on Asian organized
crime and the new international criminal. S. 1091 was
introduced on June 10, 1993 and was referred to the Senate
Foreign Relations Committee. No further action was taken on
this legislation during the 103rd Congress.
S. 1189--The Professional Boxing Corporation Act of 1993
(by Senator Roth, additional cosponsors Senators Biden, McCain
and Dorgan). Very similar to the legislation Senator Roth
introduced in the 102nd Congress, this bill would create a
nonprofit government corporation, known as the Professional
Boxing Corporation (PBC). The PBC would be fully funded by the
professional boxing industry; other than an initial startup
loan which would be repaid, no taxpayers' dollars would be
used. The PBC would be responsible for working with the state
boxing authorities to develop and enforce uniform rules and
minimum health and safety standards for all professional boxing
matches held in the United States. The PBC would also develop
and maintain a centralized boxing database to which states
would have access containing boxers' won-loss records, medical
data, and other relevant information. The PBC would have full
authority to investigate improper activities in boxing for the
protection of the boxers' health and safety and to reduce
corruption and unfairness. S. 1189 was introduced on July 1,
1993, and was referred to the Senate Committee on Commerce,
Science and Transportation. No further action was taken on this
legislation during the 103rd Congress.
S. 1213--A bill to amend the charter of Group
Hospitalization and Medical Services Inc., (by Senator Nunn,
additional cosponsor: Senator Roth). In 1939, Congress
chartered Group Hospitalization, Incorporated, the predecessor
of the District of Columbia's Blue Cross and Blue Shield Plan,
now known as Group Hospitalization and Medical Services,
Incorporated, and exempted the corporation from the vast
majority of the District's insurance code. In the mid-1980's,
the D.C. Blue Cross and Blue Shield plan had grown to include
42 subsidiary corporations, some of which were based in Europe
and the Far East. All of the subsidiary operations were
operated without the benefit of effective regulation by the
District's insurance department, and the operation of many of
the subsidiaries resulted in severe financial losses for the
Plan. Realizing that the D.C. Blue Cross and Blue Shied Plan
lacked effective regulatory oversight due to the exemption
contained in the 1939 charter, Senator Nunn acted to remove the
exemption. In 1992, Senator Nunn introduced S. 3092, which was
included as a one-year provision in the District's
appropriations bill (H.R. 6056), which was signed into law on
October 5, 1992 as Public Law 102-382. In 1993, Senator Nunn
introduced S. 1213 to make the amendments contained in S. 3092
permanent. S. 1213 was accepted as amendment No. 696 to the
1994 appropriations bill for the District of Columbia, and was
signed into law on November 1, 1993 as Public Law 103-127.
Amendment to S. 1607--The Violent Crime Control and Law
Enforcement Act of 1993 (by Senator Roth, additional
cosponsors: Senators Grassley, Thurmond, Coats, Hatch, Nickles,
Heflin, Murkowski, Sasser, Kassebaum, Feinstein, Gramm, Conrad
and Hutchison), expressing the Sense of the Senate to confirm
original intent of Congress in enacting child pornography
provisions of the Child Protection Act of 1984, and express
sense of the Congress in opposition to the Supreme Court brief
in the case of Knox v. U.S. The Justice Department in the Knox
brief asked the Supreme Court to set aside a judgment upholding
the second conviction of a man who had previously been
convicted under the Federal child pornography laws. The Justice
Department told the Supreme Court that the appeals court had
used ``an impermissibly broad standard'' to interpret and apply
the law. The Administration maintained that the appeals court
should be ordered to reconsider the case under a narrower
standard. In 1984, the Congress passed anti-child pornography
legislation intended to stamp out the business of child
pornography and stop sexual exploitation of children. In 1986
after a two-year probe, the Subcommittee issued a report on the
relationship between child pornography and the sexual abuse of
children. The Subcommittee found that child pornography plays a
central role in child molestations by pedophiles. This
amendment was adopted by a vote of 100-0 on November 4, 1993.
Amendment to S. 1607--The Violent Crime Control and Law
Enforcement Act of 1993 (by Senator Roth), expressing the sense
of the Senate encouraging the development of a United Nations
Convention on Organized Crime and urging the U.N. to provide
additional authority and resources to the U.N. Commission on
Crime Prevention and Criminal Justice. Senator Roth introduced
this amendment as a result of the Subcommittee's investigation
of Asian organized crime. Following the Subcommittee hearings,
the Subcommittee issued a report in December 1992 concluding
that there have been substantial increases in Asian organized
criminal activity in the U.S., facilitated by modern
development in transportation and communications, relaxed
travel restrictions and the greatly increased volume of
international trade. This necessitates greater cooperation
among nations to prosecute and eliminate organized criminal
groups. The current role of the United Nations is limited with
respect to international organized crime by lack of a binding
international convention. This amendment was adopted by voice
vote on November 5, 1993 and was signed into law as part of
Public Law 103-322 on September 13, 1994.
Amendment to S. 1607--The Violent Crime Control and Law
Enforcement Act of 1993 (by Senator Roth), requiring State and
local governments to cooperate with the INS regarding
enforcement of immigration laws by providing information on
aliens who are not lawfully present in the U.S. During the
course of the Subcommittee's investigation of criminal aliens,
the Subcommittee found that several major cities have, either
by law or policy, adopted practices of non-cooperation with the
INS. These provisions vary widely but are generally referred to
as sanctuary, refuge, or non-cooperation policies. These
policies hamper the INS's efforts to identify and process
criminal aliens and generally restrict the effectiveness of any
governmental response to the criminal alien problem. Senator
Roth's amendment would require that, consistent with the
Supremacy Clause of the U.S. Constitution, State and local
governments provide information to duly authorized officials of
the INS when such information is necessary to enforce our
nation's immigration laws. The amendment also calls for the
Attorney General, together with the Commissioner of the INS, to
report to Congress and the President six months after this
legislation is enacted regarding the level of state and local
cooperation with the INS and to identify those jurisdictions
that have adopted policies of non-cooperation with the INS. The
amendment prohibits those jurisdictions identified by the
Attorney General's report from receiving Federal funds
appropriated by this pending legislation until their non-
cooperation policy is discontinued. This amendment was adopted
by a vote of 93-6 on November 9, 1993.
S. 1934--Criminal Alien Control Act of 1994 (by Senator
Roth). The legislation follows a PSI investigation and two days
of hearings regarding the problem of criminal aliens in the
United States. The PSI investigation found that criminal aliens
are a serious and growing threat to public safety and are
costing our criminal justice system hundreds of millions of
dollars. Criminal aliens account for 25 percent of the Federal
prison population and represent the fastest growing segment of
that population. This legislation streamlines the deportation
process for criminal aliens by, among other things, allowing
State and Federal judicial deportations and by restricting
defenses criminal aliens currently used to avoid deportation.
The bill simplifies existing law by establishing that any alien
who commits a felony is deportable. It also strengthens
existing law by enhancing penalties for evading deportation and
reentering the U.S. after being deported. S. 1934 was
introduced on march 16, 1994 and was referred to the Senate
Judiciary Committee. No further action was taken on this
legislation during the 103rd Congress.
Amendment to S. 2192--the National Defense Authorization
Act, Fiscal Year 1995 (by Senator Nunn). In response to
concerns raised during the subcommittee's hearing on
International Organized Crime, about the possible involvement
of organized criminal groups in trafficking nuclear materials,
Senator Nunn offered an amendment to the National Defense
Authorization Act for 1995, which provided $10 million for a
joint DoD-FBI law enforcement training program to expand and
improve efforts to deter the possible proliferation of weapons
of mass destruction by crime organizations in Eastern Europe,
the Baltic countries, and the former Soviet Union. The
amendment was enacted into law as part of Public Law 103-337 on
October 5, 1994.
IV. Reports, prints and studies
U.S. Government Efforts to Combat Fraud and Abuse in the
Insurance Industry: Third Interim Report on Enhancing Solvency,
Regulation and Disclosure Requirements--A Case Study of
guarantee Security Life Insurance Company (GSLIC) (Senate
Report 103-29, March 1993).
General Accounting Office Report to the Permanent
Subcommittee On Investigations--Federal Prison Expansion:
Overcrowding Reduced but Inmate Population Growth May Raise
Issue Again (December 1993).
General Accounting Office Report to the Permanent
Subcommittee on Investigations--Money Laundering: U.S. Efforts
to Fight It Are Threatened By Currency Smuggling (March 1994).
General Accounting Office Report to the Permanent
Subcommittee on Investigations--Blue Cross and Blue Shield:
Experiences of Weak Plans Underscore the Role of Effective
State Oversight (April 1994)
General Accounting Office Report to the Permanent
Subcommittee on Investigations--Federal Judicial Security:
Comprehensive Risk-Based Program Should be Fully Implemented
(July 1994)
Report of the Department of Health and Human Services,
Office of the Inspector General to the Permanent Subcommittee
on Investigations--Review of Executive Compensation at Medicare
Contractors (August 1994)
General Accounting Office Report to the Permanent
Subcommittee on Investigations--Medicare: HCFA's Contracting
Authority for Processing Medicare Claims (August 1994)
General Accounting Office Report to the Permanent
Subcommittee on Investigations--Tax Administration: Compliance
Measures and Audits of Large Corporations Need Improvement
(September 1994)
Corruption in Professional Boxing (Senate Report 103-408,
October 7, 1994)
subcommittee on oversight of government management
Chairman: Carl Levin
Ranking Minority Member: William S. Cohen
I. Hearings
Legislative
1. S. 420, the Ethics in Government Reform Act of 1993, and
S. 79, the Responsible Government Act of 1993. (March 5,
1993)--These bills proposed changes to the post-employment
lobbying restrictions on Members and employees of Congress and
employees of the Executive Branch. The bills were considered at
some length by the Subcommittee but not reported to the full
committee. Witnesses: The Honorable David L. Boren, U.S.
Senator from the State of Oklahoma; The Honorable John McCain,
U.S. Senator from the State of Arizona; The Honorable Dennis
DeConcini, U.S. Senator from the State of Arizona; Gary Davis,
General Counsel, Office of Government Ethics; Alexander B.
Trowbridge, President, Trowbridge Partners, Inc. on behalf of
the Council for Excellence in Government; Charles Lewis,
Chairman and Executive Director, The Center for Public
Integrity; Fred Wertheimer, President, Common Cause; William N.
Eskridge, Jr., Professor of Constitutional Law and Legislation,
Georgetown University Law School; and Robert S. Peck,
Legislative Counsel, American Civil Liberties Union.
2. S. 885, to Modify Congressional Restrictions on Gifts.
(July 19, 1993)--This hearing looked at a legislative proposal
to establish a uniform gift rule for the House and Senate. The
Subcommittee reported a separate bill which was passed by the
full committee and the Senate. Similar legislation was passed
by the House, and a conference report was passed by the House
but did not pass the Senate. Witnesses: The Honorable Frank
Lautenberg, U.S. Senator from the State of New Jersey; The
Honorable Paul Wellstone, U.S. Senator from the State of
Minnesota; former U.S. Senator Birch Bayh; former U.S.
Congressman Frank J. Horton; Stephen D. Potts, Director, Office
of Government Ethics; and Joan Claybrook, President, Public
Citizen.
3. S. 1413, Reauthorization of the Office of Government
Ethics. (April 20, 1994)--The Subcommittee heard testimony from
the Director of the Office of Government Ethics in support of
reauthorizing the office. The bill was reported by the
subcommittee to the full committee and passed by the Senate. It
was not passed by the House. Witnesses: The Honorable Stephen
D. Potts, Director, Office of Government Ethics; Jan Ley,
Deputy General Counsel; and Jack Covaleski, Associate Director
for Program Assistance and Review.
Oversight
1. Will Jobs Be America's Biggest Export under NAFTA?
(April 1, 1993)--This hearing reviewed the data available to
predict the employment effects of ratification of NAFTA.
Witnesses: Tom Fairfax, former broker and ``Shelter Operator,''
Rancho Santa Margarita, CA; Jerry Lundy, Dowagiac, Michigan,
former employee of Modine Heat Transfer; Scarlet Bachmann,
Dowagiac, Michigan, former employee of Modine Heat Transfer;
Doug Fenton, Kokomo, IN, former employee of United Technologies
Automotive; and Harry Browne, Research Associate, The Inter-
Hemispheric Education Resource Center.
2. Oversight of Federal Trade Data: What We Don't Know
Could Hurt Us. (April 28, 1993)--This hearing was a
continuation of the subcommittee's investigation into the data
available to predict the employment effects of ratification of
NAFTA. Witnesses: Kevin L. Kearns, President, United States
Business and Industrial Council; Steve Beckman, International
Economist, United Auto Workers; Charles A. Waite, Associate
Director for Economic Programs, Bureau of the Census, U.S.
Department of Commerce; Allan I. Mendelowitz, Director,
International Trade, Finance, and Competitiveness Issues,
General Government Division, GAO; Jeffrey Schott, Senior
Fellow, Institute for International Economics; Thomas J.
Plewes, Associate Commissioner, Office of Employment and
Unemployment Statistics, Bureau of Labor Statistics, U.S.
Department of Labor; and Fred Goff, Director, The Data Center,
Oakland, CA.
3. Oversight of Federal Property Management. (July 27,
1993)--This hearing was held at the request of Ranking
Republican, Senator Cohen. The subcommittee reviewed the
management practices of GSA in purchasing and leasing space for
Federal agencies. Witnesses: The Honorable Howard M.
Metzenbaum, U.S. Senator from the State of Ohio; Michael E.
Motley, Associate Director, Government Business Operations
Issues, GAO; Sherri Wasserman Goodman, Deputy Under Secretary
of Defense for Environmental Security, DOD; David L. Bibb,
Assistant Commissioner, Office of Facility Planning, GSA;
Lester M. Hunkele, III, Deputy Assistant Secretary for
Facilities Oversight, Department of Veterans Affairs; Dr.
Michael Sumichrast, Publisher and Editor, ``Real Estate
Perspectives,'' Sumichrast Publications; Dr. Paul C. Taylor,
Vice President for Public Affairs, NAIOP, The Association for
Commercial Real Estate, accompanied by Dr. Hayden B. Bryan,
former Executive Director, Base Closure Commission (1988); and
Thomas B. McChesney, President, Building Owners and Managers
Association International.
4. Off-Loading: The Multi-Million Dollar Loophole in
Government Contracting. (July 30, 1993)--This hearing was the
result of an extensive investigation by the Subcommittee into a
governmentwide practice to avoid competition in contracting.
Witnesses: Derek J. Vander Schaaf, Acting Inspector General,
DOD; John C. Layton, Inspector General, DOE; William I. Hinshaw
II, Inspector General, TVA; Admiral Eugene B. Harshbarger,
Deputy for Acquisition Policy, Integrity and Accountability,
Department of the Navy; Norman A. Zigrossi, President Resource
Group, Tennessee Valley Authority; Joseph R. Varady, Jr.,
Director for Procurement Policy, Department of the Army;
Brigadier General Robert W. Drewes, Deputy Assistant Secretary
of the Air Force for Contracting, Department of the Air Force;
and Colleen A. Preston, Deputy Under Secretary of Defense for
Acquisition Reform, DOD.
5. Oversight of the FDIC: Are Investors Cashing in on FDIC
Mismanagement? (November 9, 1993)--This hearing was held at the
request of Ranking Republican, Senator Cohen. The Subcommittee
looked at how the Federal Deposit Insurance Corporation (FDIC)
was managing the resale of properties under its control.
Witnesses: The Honorable Mark Johnston, Mayor, City of Saco,
ME; Douglas Hess, Sole Proprietor, Doug Hess Investments,
Tyler, MN; Daniel Masucci, Liquidation Assistant, FDIC, Irvine,
CA; Ramon Hernandez, Liquidation Review Specialist, FDIC,
Chicago, IL; Howard G. Rhile, Director, Accounting and
Information Management Division, GAO; and John F. Bovenzi,
Director, Division of Depositor and Asset Services, FDIC.
6. Oversight of U.S.-Japan Auto Parts Framework
Negotiations: What's Needed to Get Results. (February 3,
1994)--The Subcommittee held this hearing to review the
progress and the U.S. position in trade negotiations with Japan
on auto parts. Witnesses: Jeffrey E. Garten, Under Secretary
for International Trade Administration, U.S. Department of
Commerce; Robert E. Cole, Vice President, Government Affairs,
Kaiser Aluminum and Chemical Corporation and Chairman, Annual
Report Task Force; Michael S. Flynn, Associate Director, Office
for the Study of Automotive Transportation, Transportation
Research Institute, University of Michigan; and Andrew H. Card,
Jr., President and CEO, American Automobile Manufacturers
Association, and Former Secretary, U.S. Department of
Transportation.
7. Oversight of EPA's Implementation of the Nonattainment
Provisions of the Clean Air Act in Lake Michigan Region. (July
25, 1994)--The subcommittee reviewed EPA's actions with respect
to regulatory burdens placed on communities which do not
generate their air quality problem. Witnesses. Mary Nichols,
Assistant Administrator for Air and Radiation, EPA; and Steve
Gerritson, Executive Director, Lake Michigan Air Directors
Consortium.
8. Navy's Mismanagement of the Sealift Tanker Program.
(October 12, 1994)--This hearing was the result of an extensive
investigation by the Subcommittee and GAO of mismanagement by
the Military Sealift Command of 9 oil tankers. Witnesses:
Richard C. Steiner, Director, Office of Special Investigations,
GAO; Captain Gordon D. Marsh, Chief, Marine Technical &
Hazardous Materials Division, Coast Guard Headquarters; Vice
Admiral Philip M. Quast, Commander, U.S. Military Sealift
Command; and Robert G. Wellner, President and Chairman of the
Board, International Marine Carriers, Inc.
II. Miscellaneous bills
S. 24: The ``Independent Counsel Reauthorization Act of
1993'' which would reauthorize the independent counsel law for
an additional 5 years. This bill was considered and reported by
the subcommittee. It was reported by the full committee, passed
by the Senate and enacted into law on June 30, 1994 (P.L. 103-
270).
The Lobbying Registration Act. This bill was considered and
reported by the subcommittee. It was reported by the full
committee, passed by the Senate, passed by the House, and sent
to conference. The conference report was passed by the House
but not approved by the Senate.
S. 2156: The Reports Elimination Act. This bill--which
would have eliminated some 300 statutorily required reports to
Congress--was considered and reported by the subcommittee. It
was reported by the full committee but not passed by the
Senate.
S. 1587: Acquisition Reform. Subcommittee staff contributed
a significant amount of time and effort to the passage of this
legislation.
III. Reports
The Subcommittee issued five reports as a result of its
investigations and hearings. Three reports, Reauthorization of
the Office of Government Ethics (S. Rept. 103-315),
Congressional Gifts Reform Act (S. Rept. 103-255), and the
Reports Elimination Act (S. Rept. 103-375) were legislative
reports.
One report, following the Subcommittee's hearing on off-
loading abuses, was an oversight report containing findings and
recommendations (Off-Loading: The Abuse of Inter-Agency
Contracting to Avoid Competition and Oversight Requirement (S.
Prt. 103-61)).
One report, a compilation of Federal ethics laws, was
issued to provide a readily accessible document of ethics laws
for Federal employees and the public (Compilation of Federal
Ethics Laws (S. Prt. 103-25)).
The subcommittee worked closely with GAO on numerous
reports concerning DOD inventory, DOD procurement, management
of the Postal Service, residential schools for disadvantaged
children, management of FFRDC's, and commercial practices of
the private sector.
IV. Other efforts
The subcommittee worked extensively on the role of the
Financial Accounting Standards Board in establishing new
accounting standards for public corporations with respect to
stock options. Staff members worked on legislation which was
enacted into law that would eliminate bonuses for Presidential
appointees in the period shortly before and shortly after a
Presidential election. The Subcommittee also reviewed the
management of the Anti-Deficiency Act in the Department of
Defense.
subcommittee on regulation and government information
Chairman: Joseph I. Lieberman
Ranking Minority Member: Thad Cochran
I. Legislation
EBT Regulatory Relief Act, S. 2511: Introduced at the end
of the second session, this bill exempts EBT cards from
regulation E of the Electronic Funds Transfer Act when used for
means tested benefits. The bill was introduced to facilitate
discussions of the issue between Congresses.
Poverty Cost of Living Adjustment, S. 1412: Introduced in
the first session in response to Rep. Sawyer's (D-OH) bill to
authorize biannual poverty estimates for school districts, this
bill requires those estimates to be adjusted for state-to-state
differences in the cost of living; The bill did not pass, but
was effective in blocking the requirement that biannual data be
used to distribute funds under Chapter 1 of the Elementary and
Secondary Education Act.
Address List Improvement Act, H.R. 5084: Passed at the end
of the 103rd Congress, this bill amends Title 13 to allow the
Census Bureau to share the census address list with designated
officials in State and local governments. Strongly supported by
state and local governments, this act should reduce the
friction between governments over the correctness of the next
census.
Medicare Data Bank Penalty Delay, S. 1719: Introduced in
the first session, this bill would have delayed any penalties
arising from employer noncompliance with the Medicare Data
Bank. While this bill did not pass, the Senate Appropriations
Subcommittee included language provided by Senator Lieberman,
instructing HHS not to implement the data bank. The Conference
Report carried similar language, and HHS has announced that it
will not implement the data bank in 1995.
NHPRC Reauthorization: Introduced and passed in the first
session, this act reauthorized NHPRC for the period FY 1994 to
FY 1998 at $5 million, $6 million, $8 million, $8 million and
$10 million respectively.
Mainstream Information Package: In conjunction with staff
for Senators Bond and Moynihan, Subcommittee staff developed
the titles of health care reform legislation devoted to
administrative simplification and privacy. These titles
provided the authority for setting standards of communication
for all third party (non doctor-patient) communication, and at
the same time provide tremendous cost savings for all involved.
At the same time, care is taken to protect patient privacy
while at the same time providing the necessary access for
financial transactions and research.
Video Game Rating Act, S. 1823: Senator Lieberman
introduced the Video Game Rating Act that would have
established an independent commission to rate video games based
on the level of violence, sexual material or offensive
language. This legislation would have enabled parents to
determine which games are appropriate for their children. The
bill was referred to the Commerce Committee. In the interim,
the video game industry, prompted by hearings jointly chaired
by Senators Lieberman and Kohl in the Subcommittee on
Regulation and Government Information and the Subcommittee on
Juvenile Justice and the legislation, devised a voluntary
rating system.
Biomaterials Access Assurance Act, S. 2215: Introduced at
the end of the second session, following the Subcommittee's May
20, 1994 hearing on the health crisis resulting from the
possibility that raw materials and components could be
unavailable for use in manufacturing medical devices, this bill
would limit the tort liability of raw material and component
suppliers under certain conditions. The bill was referred to
the Commerce Committee.
II. Legislation
Contracting Problems at the RTC: HomeFed.--On February 19,
1993, Senator Lieberman chaired a Subcommittee hearing that
exposed extreme cost overruns on the RTC's Management and
Continuity Contracts with Price Waterhouse. Testifying were
John J. Adair, Inspector General of the Resolution Trust
Corporation (``RTC''); Albert V. Casey, President and Chief
Executive Officer, RTC; William H. Roelle, Senior Vice
President and Chief Financial Officer, RTC. According to the
testimony, Price Waterhouse charges amounted to 67 cents per
page for photocopying and related document handling. The
hearing led to reductions in charges to the RTC of $6.9-$9.6
million, and substantial tightening of contracting activities
by the RTC.
Adequacy of HCFA Information Systems.--On April 2, 1993,
Senator Lieberman chaired a Subcommittee hearing to examine the
ability of the Health Care Financing Administration to solve
the problem of identifying cases where Medicare should be the
secondary payer. Testifying were Leslie Aronovitz, GAO; Carol
Walton, HCFA; James Michner, The Travelers Companies; and Linda
Ryan, New York Department of Health. Ms. Aronovitz outlined the
magnitude of the problem and the need for a system that
identifies payer status when a claim is filed. Ms. Walton
explained that current efforts only identify payer status three
to ten years after the claim has been processed. Mr. Michner
described the burden the current system places on insurance
companies and indicated that The Travelers was willing to work
with HCFA to craft a better solution. Ms. Ryan described just
such a better solution currently being tested in New York. Her
project links payers and payees electronically, and could
include a system that identified Medicare primary and secondary
payers. Senator Lieberman urged HCFA to explore solutions like
those being demonstrated in New York.
Public Papers of Supreme Court Justices: Assuring
Preservation and Access.--On June 11, 1993, Senator Lieberman
chaired a Subcommittee hearing to examine the controversy
created when the Library of Congress opened the collection of
papers from the estate of Thurgood Marshall a year after his
death. Most sitting Justices were concerned that providing
access to the internal documents of the Court on recent cases
would complicate their ability to fulfill their
responsibilities. Testifying were The Honorable James
Billington, Librarian of Congress; Mr. E. Barrett Prettyman,
Jr., Attorney; Mr. Dennis Hutchinson, Editor of The Supreme
Court Review; Ms. Anne Kenney, President, Society of American
Archivists; and Ms. Jane Kirtley, Executive Director of The
Reporters Committee for Freedom of the Press. judicial papers
are the private property of the Justices, and it was clear from
the testimony at this hearing that without making them Federal
property, there was little that could be done to control
access. Senator Lieberman urged the Supreme Court to issue
guidance for the disposition of and access to Judicial records.
At-Home Business Opportunity Scams.--On July 28, 1993,
Senator Lieberman chaired a Subcommittee hearing exploring the
growth in at-home business opportunity scams. Like other types
of advance fee scams, victims are required to send money in
advance, but return little or none of the promised goods or
services. Since the scam artists are usually located out of
state and the amounts at issue are relatively small, victims
rarely receive refunds and prosecutions are difficult. James
McIlhenny, President of the Better Business Bureaus, Inc.
testified that these scams have multiplied in recent years as
people seek to supplement their income. He said people who are
at home either because they are unemployed or are taking care
of children are frequent targets of these scam artists.
Kimberly Cole and George Matthews of Hurlock, Maryland, and
Bernard Rooney of Arlington, Virginia, victims of scams,
testified about their experiences. Richard Barton, Senior Vice
President for Governmental Affairs, Direct Marketing
Association, explained what industry was doing to battle these
scam artists. Alvin Lamden, Manager of Fraud and Prohibited
Mailings, U.S. Postal Inspection Service, testified about
enforcement efforts, successes and problems.
International Consumer Fraud: Can Consumers Be Protected?--
On October 15, 1993, Senator Lieberman chaired a Subcommittee
hearing to examine the recent increase in consumer fraud
practiced across international borders. Testifying were Jinni
Anderson of Gilford, CT; Mr. John Barker, Director of the
National Fraud Information Center; Mr. Lawrence Urgenson,
Acting Deputy Assistant Attorney General; Ms. Christian White,
Acting Director of the Federal Trade Commission Bureau of
Consumer Protection; Mr. Fred Verinder of the Federal Bureau of
Investigation; and Mr. Michael Stenger of the U.S. Secret
Service. Ms. Anderson and her husband were defrauded of
thousands of dollars by a company operating out of Canada. All
agreed that more stringent enforcement was needed in this area,
but both the FBI and the Secret Service pointed out that
because of the complications of negotiating international
agreements, progress in this area is slow.
Reinventing Government: Using New Technology to Improve
Services and Cut Costs.--On December 2, 1993, Senator Lieberman
chaired a Subcommittee hearing to examine the ways that
information technology could be used to improve government
services. The OTA report ``Making Government Work'' was
released concurrent with this hearing. Testifying were The
Honorable Sally Katzen, Administrator of the Office of
Information and Regulatory Affairs; Mr. Fred Wood, Office of
Technology Assessment; Mr. Elliot Gerson, The Travelers
Companies; Mr. David Truax, Maryland Department of Human
Resources; The Honorable Carmen Nazario, Secretary of Health
and Social Services in Delaware; and H.W. Porterfield of
Consulting Resources Inc. Ms. Katzen reported on the Vice
President's National Information Infrastructure Initiative
which is designed to improve the use of information technology
within the Government. Mr. Wood summarized the OTA report which
encouraged the Administration's efforts and described some of
the pitfalls that could beset that effort. Mr. Truax described
the Maryland experiment with delivering Food Stamps and Aid to
Families with Dependent Children through ATM-like cards. This
``electronic benefits transfer'' (EBT) system is the only one
in the country being used statewide. Ms. Nazario described the
system of ``one-stop shopping'' for social services in
Delaware. Both public and private support services are housed
in a single location to facilitate citizen access. Mr.
Porterfield described a project his company was working on
under contract with EPA to put environmental regulations on-
line for individual and business access.
Violent Video Games: What Parents Need to Know.--On
December 9, 1993, Senator Lieberman chaired a hearing, held in
conjunction with Senator Kohl's Judiciary Subcommittee on
Juvenile Justice, to explore the need to rate video games so
that parents would know what they were buying for their
children. Representatives of parents, teachers, as well as
academic and other experts testified about the link between
violence depicted in media and actual violence among youth.
They were Dr. Parker Page of the Children's Television Resource
and Education Center; Professor Eugene Povenzo of the
University of Miami; Mr. Robert Chase, National Education
Association; Ms. Marilyn Droz of the National Coalition on
Television Violence. Representatives of industry, including
Howard Lincoln, Nintendo of America; Mr. Bill White, Sega of
America; Ms. Ilene Rosenthal, General Counsel, Software
Publishers Association; Ms. Dawn Weiner, Video Software Dealers
Association; and Mr. Craig Johnson, Past-President, Amusement
and Music Operators Association, committed to working together
to create a credible rating system in time for the 1994 holiday
season.
Video Game Violence and Establishing a Video Game Rating
System.--On March 4, 1994, Senator Lieberman chaired a second
joint Subcommittee hearing with Senator Kohl on the preliminary
outline of a rating system offered by the video game industry.
Responding to standards for the rating system set down by
Senator Lieberman in a letter sent two weeks after the first
hearing, industry leaders discussed how the system would be
structured so that its independence and credibility is assured.
Representatives of major video game retailers, including Toys-
R-Us and Walmart, voice support for the industry's rating
effort and a commitment to work with the system once it is in
place. Testifying at the hearing were Congressman Tom Lantos;
Jack Heistand, Senior Vice President for Electronic Arts on
behalf of the Interactive Entertainment Industry Rating
Commission; Mary Evan, Vice President of Store Operations,
Babbages; Chuck Kerby, Divisional Merchandise Manager, Wal-
Mart; Steve Loenigsberg, President, American Amusement Machine
Association; R.A. Green, III, Amusements & Music Operator
Association.
Health Care Information: Collection and Privacy.--On May 6,
1994, Senator Lieberman chaired a Governmental Affairs
Committee hearing to examine the needs and benefits of
collecting information on health care, and the importance of
protecting the privacy of that information. Testifying were The
Honorable Sally Katzen, Administrator, Office of Information
and Regulatory Affairs; The Honorable Nan Hunter, Department of
Health and Human Service; Leslie Aronovitz, Associate Director,
Health Finance and Policy, General Accounting Office; Joel
Gimpel, Blue Cross/Blue Shield Association; Lois Gargotto,
Director of Systems Development, HUMANA, Inc.; Carolyn Kelley,
Director, Government and Public Affairs, American Payroll
Association; Donald T. Lewers, American Medical Association;
Janlori Goldman, Director, Technology and Law Project, American
Civil Liberties Union.
Crisis in the Availability of Life-Saving Medical
Devices.--On May 20, 1994, Senator Lieberman chaired a
Subcommittee hearing to examine the threat that raw materials
and component parts could become unavailable for use in
manufacturing implantable medical devices, and the potential
public health consequences if that occurs. Witnesses included
representatives of medical device companies, raw material
companies, physicians, patients and consumer advocacy groups.
They were Paul Citron, Vice President, Medtronic, Inc.; Eleanor
Gackstatter, President and Chief Operating Officer, Meadox
Medicals, Inc.; Katherine F. Knox, Business Program Manager,
DuPont Company; James S. Benson, Senior Vice President,
Technology and Regulatory Affairs; Mark Reilly, Houston, Texas;
Peggy Phillips, Falls Church, Va.; J. Donald Hall, Chair,
Department of Cardiovascular Surgery, California Pacific
Medical Center; Bernard N. Stulberg, Cleveland Center for Joint
Reconstruction, on behalf of the American Academy of Orthopedic
Surgery; Pierre Galletti, University Professor and Professor of
Medical Science, Brown University, and President, American
Institute for Medical and Biological Engineering; M. Kristen
Rand, Counsel, Consumers Union.
Progress Report: Rating Video Games.--On July 29, 1994,
Senator Lieberman chaired the third joint video game hearing
with Senator Kohl addressing the rating categories proposed by
the industry. An industry representative detailed how the
proposed rating system would comply with the standards outlined
by Senator Lieberman after the first hearing. A representative
of software publishers described a proposed rating system for
personal computer games. Arcade operators stated their
intention to establish an appropriate system for providing
information about a games content in the coin-operated game
context. The industry rating system is now operational. The
witnesses who testified were: Steve Koeningsberg, American
Amusement Machine Association; Chuck Kerby, Wal-Mart; Jack
Heistand, Chairman, Interactive Digital Software Association;
Mark Traphagen, Counsel, Software Publishers Association;
Robert Clarke, V.P., National Education Association, Mary Ellen
R. Fise, Consumer Federation of America.
Caveat Inventor: Deceptive Invention Marketing Scams.--On
September 2, 1994, Senator Lieberman chaired a hearing of the
Subcommittee to uncover techniques used by some unethical
businesses to rope thousands of inventors into spending
significant amounts for worthless services involving the
promotion of their inventions. The Subcommittee subpoenaed
testimony from one former salesperson who described the inner
workings of invention promotion mills. One of the salesman's
victims recounted how she was targeted and drawn into the scam.
Representatives of Federal and State law enforcement agencies
testified as to their current efforts to curb these rip-offs.
Witnesses were: Lorraine E. Leiner, inventor; Kenneth Rogers,
former Invention Marketing Salesman; Robert Lougher, President,
Inventors Awareness Group; Dr. Gerald Udell, Director Center
for Business and Economic Development, Southern Missouri State
University; Phoebe Morse, Regional Director, Boston Regional
Office, Federal Trade Commission; Mr. Michael Kirk, Deputy
Commissioner of Patents and Trademarks; Robert Litt, Deputy
Assistant Attorney General, Department of Justice; James
Mallett, Office of Consumer Protection of the New Jersey
Attorney General; Ms. Margaret M. Leonard, District of Columbia
Department of Consumer and Regulatory Affairs.
task force on waste, fraud and abuse
Chairman: Byron L. Dorgan
I. Background
The government Waste Project was created on March 11, 1993
by Chairman Glenn to identify and document areas of wasteful
government spending and to set forth an agenda to eliminate
waste in many Federal programs.
In a joint news release at that time, Chairman Glenn said
in announcing the project ``We are fortunate to have Senator
Byron Dorgan as a new member of this Committee, particularly
because of his experience in the House of Representatives,
where he did a superb job as head of a Democratic Task Force on
Government Waste. With that background to draw on, I'm looking
forward to working closely with Senator Dorgan.''
The agenda included a select series of ongoing projects to
heighten awareness of waste in the Legislative, Judicial, and
Executive branches of government. The project focused on
wasteful overhead, costly management failures, unnecessary
duplication, and related problems.
The goal was to highlight ways the government could improve
its business practices. For example, hearings on topics such as
the Buildings Moratorium Bill and the $10 Billion Courthouse
Construction program, as well as progress on the implementation
of the Interstate Identification Index (III) shone the
congressional spotlight on waste problems.
Additionally, in consultation with Chairman Glenn, the task
force sought to work with Vice President Gore to further the
goals and recommendations of the National Performance Review.
The task force pursued efforts that were analogous to OMB and
GSA efforts (i.e., overhead and Federal property management
reform issues).
II. Hearings and investigations
1. Are We Overbuilding? May 4, 1994
The prime focus of this hearing was the government's
civilian building program, specifically the abnormally high
cost of Federal courthouse construction. On the first panel, a
senior Federal judge exposed a range of excess costs in the
Federal courts system. For example, the judge testified: ``I
think we would have much more credibility with the Congress if
we would get our own house in order and stop wasting money.''
The second and third panels, respectively, evaluated the
status of two reports which further reinforce why court costs
are excessive. The first report was by the General Accounting
Office--Federal Judiciary Space, Long Range Planning Process
Needs Revision, GAO/GGD-93-132, September 1993--and dealt with
just the long-range planning process. It showed that the cost
of this overestimation was $112 million per year, or more than
$1.1 billion for the 10-year planning period. GAO experts
outlined three major flaws in the courts' long-range planning
process and reviewed the results of GAO's recommendations for
improved planning.
Other significant waste-related issues were addressed in
the second report--Report of Independent Courts Building
Program, December 1993--by a blue ribbon panel of experts in
judicial design and construction, including: the Administrative
Office of the Courts (AOC) design guide, needs prioritization,
the one judge/one courtroom principle, and other issues unique
to the courts that contribute to high courthouse construction
costs.
As a result of Committee efforts, the GSA has reviewed
nearly 200 major projects; identified $1.34 billion of savings,
including $310 million in court projects, and
Established a system of benchmarks for cost
comparison based on private sector cost methods;
refined system and reduced benchmarks 5% after
professional studies of court projects in Alexandria,
VA and Shreveport, LA;
Created a method to apply benchmark analysis to
individual projects to account for differential cost
resulting from geographic location, type of
construction and date contract award;
Changed budgeting/estimating philosophy from
``comfortable budget syndrome'' to ``spend not $1 more
than necessary to meet the court's functional needs in
a well-designed facility'';
Convened an independent panel of private sector
architects, engineers and contractors to review court
programs and identify solutions to problems; a joint
task group of GSA and AOC prepared an implementation
plan adopting 20 of the 22 recommendations of the
independent panel; eight of the most critical have
already been substantially implemented or are underway;
Established a Courthouse Management Group to create a
single point of responsibility for program efficiency
and cost effectiveness. A national program office will
be responsible for long-range planning, oversight/input
into project development plan, involvement in site
selection and review of any requests to change agreed-
upon scope of project; will coordinate project manager
skill assessment and training; will become functional
in January in conjunction with reorganization of
overall real estate operations, and;
Reached agreement with AOC on necessity of rolling 5-
year plan which prioritized projects; AOC has completed
first draft.
2. Accountability and Management of Department of Defense
Facilities Requirements--June 7, 1994
This was the second of five scheduled hearings on issues
that contribute to government waste. This hearing addressed the
waste of taxpayer dollars due to the lack of efficiency and
accountability within the government's military construction
and building program.
Following are specific examples of real and potential waste
examined by the Committee.
Naval Undersea Warfare Center
In July 1993, a ribbon-cutting ceremony took place to mark
the opening of the $27 million custom-designed Naval Undersea
Warfare Center (NUWC) Detachment in Norfolk, VA. Even before
the ribbon-cutting ceremony took place, the decision had
already been made by the Base Realignment and Closure
Commission (BRAC)--at the Navy's recommendation--to relocate
the facility to Newport, Rhode Island. As a result the Navy
incurred approximately $30.6 million in unnecessary costs.
In its report, NAVY LABORATORIES, Issues Concerning the
Naval Undersea Warfare Center's Suffolk Facility, GAO/T-NSIAD-
94-211, the GAO established a timeline with corroborating
documentation proving that the Navy knew as early as 1990 that
their requirements for the building had diminished by more than
half. The Navy's original 1987 requirement for a 278,000 sq.
ft. facility kept changing due to an old requirement for a
changing requirement due to the end of Cold War. This
requirement was reduced due to some units finding other
quarters prior to the construction of the building, thus
reducing the space requirements even more. By 1990 the space
requirement dropped from 278,000 to 175,000 sq. ft. and from
1000 to 500 employees.
Because the Navy used the build to lease method to have the
NUWC constructed, the Committee found that even after the move
is completed, the government will continue to incur rental
costs of approximately $4 million per year for the length of
the NUWC lease, which could run as long as 20 years.
Army construction of new office space for 30,000
The Committee investigated the Army's plan to develop new
office space at the 820-acre Engineer Proving Ground (EPG) in
Fairfax County, VA to consolidate 30,000 Army employees
currently in leased space throughout the metro Washington area.
Army planners claimed that the proposed project will not cost
the taxpayer anything, because they will trade Army-owned land
to private developers in exchange for no cost construction of
office buildings. Army planned to solicit development contracts
in five stages and require the successful bidder in each stage
to be responsible for hundreds of millions of dollars in
infrastructure improvements. Army claimed a projected savings
of $54 million annually in lease payments by consolidating Army
components currently housed in approximately 12 locations in
the Washington metropolitan area.
An independent report prepared by TAI Realty Consultants of
McLean, VA for the Fairfax County Office of Comprehensive
Planning and released in October of 1993 found that ``the EPG
development program, as originally envisioned, is simply not
feasible.'' In addition, the report listed the following
conclusions regarding the feasibility of the Army's development
program: ``Our interpretation of current market conditions, and
our forecast of future real estate market conditions, lead us
to conclude that site, by itself, represents insufficient value
to provide for required infrastructure improvements and for the
Army's required 2.9 million gross square feet of office space.
Market conditions have changed dramatically since the time the
market analysis, that forms the basis of the Army's development
program, was completed.''
The Army Audit Agency released it's report, SR 95-753--
Development of Engineer Proving Ground Fort Belvoir, VA.
The Committee made the following findings:
The Army's plan to obtain 2.9 million gross square
feet of office space in exchange for development rights
on the Engineer Proving Ground was overly optimistic
and not financially feasible. Requirements in the draft
request for proposal weren't clear enough to make sure
the Army selects the developer that can provide the
best value.
The Army's requirement for 2.9 million gross square
feet of office space was overstated. Procedures for
keeping potential tenants up to date were generally
adequate, but procedures for identifying potential
tenants needed improvement.
The Program Manager didn't maintain adequate
documentation to support cost analyses. Because
adequate documentation wasn't maintained, the Committee
was unable to determine if documentation was accurately
prepared.
Procedures for identifying the information mission
area infrastructure were generally adequate.
The program offices didn't have adequate
documentation to supports its market projections. The
Committee was unable to determine if the projections
were reasonable.
Procedures for ensuring the Army receives fair market
value for its property were properly documented and
reasonable. However, it is not possible to determine
how effective they are until they are implemented.
Subsequently, during the December 1993 in-process review,
the Acting Assistant Secretary of the Army (Installations,
Logistics and Environment) made two major decisions that
significantly affected the development plan. The Army wouldn't
execute a residual value lease agreement to reimburse the
developer, and it couldn't guarantee that DOD activities would
lease 1.15 million square feet of commercial office space.
These changes had a potentially significant impact on the
financial feasibility of the development. Cost estimates showed
that the potential estimated value of Army office space and
infrastructure exceeded the estimated value of the land by
about $176 million.
Overall failures in military facilities management
Three projects illustrate a lack of adequate controls
throughout the DOD to ensure that new construction projects and
collateral equipment are justified and needed, especially at
bases that may be recommended for closure; the Family Housing
at Naval Station, New York; the battleship support projects at
Pearl Harbor; and Fitzsimons Army Medical Center, Denver. As a
result of this poor planning and failure to heed early warning
concerns, the Committee found that the Federal government is
wasting hundreds of millions of dollars in unneeded and
unnecessary construction projects. The Committee also found
that components of DOD routinely have ignored the
recommendations of the DOD Inspector General (IG) or their in-
house audit commands with respect to redefining or cancelling
military construction projects.
Between 1988 and 1993, the military spent more than $1.1
billion for construction at bases that were later recommended
for closure by the Base Realignment and Closure Commission
(BRAC). While there is no way to determine exactly how much of
the $1.1 billion may have been wasted, the Committee has
established that by cancelling 783 housing units at New York
and eliminating six projects in support of battleships in
Hawaii, the government would have saved as much as $305
million. This highlighted the lack of a clear mechanism to
coordinate between operating commands and their construction
requirements and the DOD planners preparing closure
recommendations for the BRAC.
Much of this waste was traced to the Navy's ``Homeporting''
program which began in 1982 to alleviate overcrowding in
existing ports and to accommodate expansion of the Fleet toward
a 600-ship goal. The program, which was a failure, is no longer
in effect however, its residual effects are still evident. The
acting DOD IG told the Committee that as much as $7 billion of
the $8 billion program cost was wasted.
3. Criminal Debt Collection--June 28, 1994
On June 28, 1994 the Committee on Governmental Affairs,
conducted a hearing on the economy, efficiency and
effectiveness of Federal criminal and restitution debt
collection. The following issues were reviewed: low collection
rates of outstanding debt; the National Fine Center (NFC) which
had yet to become operational after five years despite $19
million in start-up funds; law enforcement utilization of the
Seized and Forfeiture Statutes impact on a convicted felons
ability to pay court ordered fines and/or restitution; and who
has specific oversight responsibility, the Department of
Justice (DOJ) or the Administrative Office of the Courts
(USAOC), thus creating the problem of accountability.
The GAO believes that the government's systems for
imposing, collecting, enforcing, and accounting for criminal
debt deserves scrutiny. The GAO presented an update to their
earlier report of August 1993 on the NFC entitled
``Expectations High, But Development Behind Schedule.''
In their testimony, the GAO told the Committee that
outstanding criminal debt grew from $0.3 billion to $3.6
billion between fiscal years 1985 and 1993. But because of
severe data limitations and other factors, it is extremely
difficult to assess how effectively Federal agencies collect
criminal debts or how much of the outstanding debt is
realistically collectible.
The GAO further testified that the most important step to
enhance debt collection efforts would be for the USAOC to make
the NFC fully operational. The USAOC now is developing a new
two part implementation plan and expects that the first phase
of the NFC will be operational nationwide by September 1, 1996,
almost nine years after legislation creating the NFC was
enacted.
The GAO also testified regarding financial institution
fraud. In 1992, the GAO found that the perpetrators of the
nation's savings and loan fiasco and other financial
institution fraud had paid only about four cents on every
dollar of fines, restitution and other payments they owe the
American taxpayers. Recent statistics collected by Federal law
enforcement officials suggest that the Federal government's
dismal record in this area remains unchanged. The GAO testified
that of the top 50 pending criminal debts (i.e., fines and
restitution orders) owed to the Federal government less than 1
percent has been collected.
4. Drug Pricing: Poor prescription for consumers and
taxpayers?--July 28, 1994
The Committee found that U.S. consumers and taxpayers are
paying more than their fair share for prescription drugs. This
hearing examined the differences in international pricing
policies of prescription drug manufacturers. The Committee
examined the scope of price differences, as well as the reasons
behind them.
The Committee heard testimony from the General Accounting
Office, individuals with expertise in international drug
pricing, representatives of the prescription drug manufacturing
industry, and Americans who have been affected by the high cost
of prescription drugs.
The Committee found that Americans spent $36.4 billion in
1991 on outpatient prescription drugs--triple the $12 billion
spent in 1980. Billions more were spent on medication for
patients in hospitals. A GAO report comparing wholesale drug
prices in the U.S. and Canada found U.S. prices to be, on
average, 32% higher. A similar GAO report compared the
wholesale prices charged by manufacturers for 20 of the top 100
drugs sold in the U.S. with the prices in Canada, Great Britain
and Sweden. The GAO found that of wholesale drug prices in the
U.S. and UK, U.S. prices were an average of 60% higher. In
almost every case, the U.S. price for the same dosage was
higher than the price in each of the other countries--in some
cases several times higher.
In addition, the Committee found that U.S. taxpayers and
consumers are subsidizing the lower prices in other countries.
In almost every other nation, drug manufacturer's prices are
regulated. In the U.S. they are not. The Committee also found
that resulting high drug prices are an improper drain on the
Federal Treasury, which pays the drug costs of millions of
Federal employees and hospitalized Medicare and Medicaid
patients.
5. Interstate Identification Index: Is it an effective
weapon in the war against violent crime? Is it
interstate, does it identify, is it an index?--
December 6, 1994
The Committee found that law-enforcers are being frustrated
in their efforts to protect U.S. citizens from violent
criminals by limited access to the full criminal histories of
felons. FBI statistics point to the fact that one-third of all
criminals commit offenses in more than one state, yet most
criminal records are only immediately available to law-
enforcers within the state where the crimes were committed. The
Committee found that this information shortfall may have fatal
consequences if law-enforcers are unable to identify and place
certain limitations on the movements and activities of
particularly dangerous offenders, such as repeat violent
criminals, child molesters and sexual predators.
The Triple I (III) was established in 1984, as part of the
National Crime Information Center (NCIC) and was designed to
provide instant access to the history of repeat offenders on an
interstate basis. Each state would have a central repository
containing its criminal records, and the FBI would line-up
states requesting criminal history information with the
appropriate state repository. This would prevent criminals from
effectively shedding their criminal records as soon as they
cross state lines.
However, only 20% of the full criminal records of the
states are available or accessible to law enforcement officials
on an interstate basis. Though the III was set up in 1984,
assimilating these records into III is proceeding at a very
slow pace. Ten years after the inception of the Triple I, 21
states and Washington D.C. are not yet participating in the
program. The Committee found that the slow progress towards
full participation is preventing law-enforcers from doing their
jobs effectively. Consequently, agencies involved in the
criminal justice system often are vulnerable to making
decisions that may well result in real risk to their
communities.
The Task Force held a hearing to focus on the economy and
efficiency of the current program. Additionally, the Committee
attempted to identify the impediments to full participation/
implementation of Triple I in all states and the District of
Columbia. The hearing raised the visibility of Triple I as a
weapon against crime and established it as an urgent national
priority. It illustrated the fact that all other measures
against crime (including laws that attempt to keep repeat sex
offenders in prison for life) are of limited value unless law
enforcement officials know whom the repeat offenders are.
Given that Triple I was a funded mandate, with $27 million
available from the Justice Department specifically for Triple
I, and $100 million allocated by the Brady Act to upgrade the
capabilities of the NCIC, the Committee attempted to determine
how this money has been allocated. Further, the Committee
attempted to find out what is delaying full participation and
implementation.
The aim of the hearing was to make Triple I a priority. It
was an attempt to educate those states who are not yet
participating about the advantages of Triple I and find out why
those states who are participating are not making all their
criminal records accessible through the program. In addition
the Committee sought to: determine the pace at which the
records will become available; discover the barriers to making
these records available; raise the visibility of the issue of
prior felony conviction records for repeat offenders with key
political officials and the public, and speed up the process to
make the Triple I current and up-to-date.
The Committee found that all the states not currently
participating in the program blame this upon a lack of
resources rather than any deliberate opposition to Triple I.
Most states aim to be participating by the end of 1996, and the
remaining states should follow before the end of the decade.