[Senate Report 107-1]
[From the U.S. Government Publishing Office]
107th Congress S. Rpt.
SENATE
1st Session 107-1
_______________________________________________________________________
ACTIVITIES OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS
__________
REPORT
of the
COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE
AND ITS
SUBCOMMITTEES
FOR THE
ONE HUNDRED FIFTH CONGRESS
January 29, 2001.--Ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
89-010 WASHINGTON : 2001
COMMITTEE ON GOVERNMENTAL AFFAIRS
FRED THOMPSON, Tennessee, Chairman
JOSEPH I. LIEBERMAN, Connecticut TED STEVENS, Alaska
CARL LEVIN, Michigan SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii GEORGE V. VOINOVICH, Ohio
RICHARD J. DURBIN, Illinois PETE V. DOMENICI, New Mexico
ROBERT G. TORRICELLI, New Jersey THAD COCHRAN, Mississippi
MAX CLELAND, Georgia JUDD GREGG, New Hampshire
THOMAS R. CARPER, Delaware ROBERT F. BENNETT, Utah
JEAN CARNAHAN, Missouri
Hannah S. Sistare, Staff Director
and Counsel
Ellen B. Brown, Senior Counsel
Joyce A. Rechtschaffen, Democratic
Staff Director and Counsel
Darla D. Cassell, Chief Clerk
105th CONGRESS
FRED THOMPSON, Tennessee, Chairman
JOHN GLENN, Ohio WILLIAM V. ROTH, Jr., Delaware \1\
CARL LEVIN, Michigan TED STEVENS, Alaska \1\
JOSEPH I. LIEBERMAN, Connecticut SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii SAM BROWNBACK, Kansas
RICHARD J. DURBIN, Illinois PETE V. DOMENICI, New Mexico
ROBERT G. TORRICELLI, New Jersey THAD COCHRAN, Mississippi
MAX CLELAND, Georgia DON NICKLES, Oklahoma
ARLEN SPECTER, Pennsylvania
BOB SMITH, New Hampshire \2\
ROBERT F. BENNETT, Utah \2\
Hannah S. Sistare, Staff Director
and Counsel
Leonard Weiss, Minority Staff
Director
Lynn L. Baker, Chief Clerk
----------
\1\ Did not serve on the Committee during the Special Investigation
Hearings from May 21, 1997 to March 10, 1998.
\2\ Joined the Committee during the Special Investigation Hearings from
May 21, 1997 to March 10, 1998.
------
SUBCOMMITTEES OF THE 105th CONGRESS
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
Ms. COLLINS, of Maine, Chair
Mr. GLENN, of Ohio Mr. ROTH, Jr. of Delaware \1\
Mr. LEVIN, of Michigan Mr. STEVENS, of Alaska \1\
Mr. LIEBERMAN, of Connecticut Mr. BROWNBACK, of Kansas
Mr. AKAKA, of Hawaii Mr. DOMENICI, of New Mexico
Mr. DURBIN, of Illinois Mr. COCHRAN, of Mississippi
Mr. TORRICELLI, of New Jersey Mr. NICKLES, of Oklahoma
Mr. CLELAND, of Georgia Mr. SPECTER, of Pennsylvania
Mr. SMITH, of New Hampshire \2\
Mr. BENNETT, of Utah \2\
OVERSIGHT OF GOVERNMENT MANAGEMENT, RESTRUCTURING AND THE DISTRICT OF
COLUMBIA
Mr. BROWNBACK, of Kansas, Chairman
Mr. LIEBERMAN, of Connecticut Mr. ROTH, Jr., of Delaware \1\
Mr. CLELAND, of Georgia Mr. SPECTER, of Pennsylvania
Mr. BENNETT, of Utah \2\
INTERNATIONAL SECURITY, PROLIFERATION, AND FEDERAL SERVICES
Mr. COCHRAN, of Mississippi
Chairman
Mr. LEVIN, of Michigan Mr. STEVENS, of Alaska \1\
Mr. AKAKA, of Hawaii Ms. COLLINS, of Maine
Mr. DURBIN, of Illinois Mr. DOMENICI, of New Mexico
Mr. TORRICELLI, of New Jersey Mr. NICKLES, of Oklahoma
Mr. CLELAND, of Georgia Mr. SPECTER, of Pennsylvania
Mr. SMITH, of New Hampshire \2\
----------
\1\ Did not serve on the Subcommittee during the Special Investigation
Hearings from May 21, 1997 to March 10, 1998.
\2\ Joined the Subcommittee during the Special Investigation Hearings
from May 21, 1997 to March 10, 1998.
CONTENTS
Page
I. Highlights of Activities................................... 1
High Risk Agencies....................................... 2
Information Security/Vulnerability....................... 2
Results Act.............................................. 2
Government Procurement Reform............................ 2
Regulatory Issues........................................ 3
Vacancies Act............................................ 3
Financial Mismanagement.................................. 3
Year 2000 Computer Problem............................... 3
Decennial Census......................................... 4
Federalism............................................... 4
Export Controls.......................................... 4
Budget Reforms........................................... 5
Inspectors General....................................... 5
District of Columbia..................................... 5
Federal Personnel Issues................................. 6
Special Investigation.................................... 6
II. Committee Jurisdiction...................................... 8
III. Bills and Resolutions Referred and Considered............. 8
IV. Hearings................................................... 8
V. Reports and GAO Reports.................................... 16
VI. Official Communications.................................... 19
VII. Legislative Action......................................... 20
Measures Enacted Into Law................................ 20
Measure Favorably Reported by Committee and Passed by the
Senate......................................................... 28
Selected Measures Considered by Committee................ 29
VIII. Presidential Nominations.................................. 31
IX. Activities of the Subcommittees............................ 35
International Security, Proliferation, and Federal Services
Subcommittee
I. Hearings.................................................... 35
II. Legislation................................................. 39
III. Report, Committee Print, and GAO Reports................... 42
Oversight of Government Management, Restructuring, and the District of
Columbia Subcommittee
I. Hearings.................................................... 43
II. GAO Reports................................................. 53
III. Legislation................................................ 54
IV. Other Activities............................................ 56
Permanent Subcommittee on Investigations
I. Historical Background--50th Anniversary of the Subcommittee. 58
II. Subcommittee Hearings During the 105th Congress............. 62
III. Legislative Activities During the 105th Congress........... 73
IV. GAO Reports and Committee Print............................. 75
107th Congress S. Rpt.
SENATE
1st Session 107-1
======================================================================
ACTIVITIES OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS DURING THE 105TH
CONGRESS
_______
January 29, 2001.--Ordered to be printed
_______
Mr. THOMPSON, from the Committee on Governmental Affairs, submitted the
following
REPORT
This report reviews the legislative and oversight
activities of the Committee on Governmental Affairs during the
105th Congress. These activities parallel the broad scope of
responsibilities vested in the Committee by the Legislative
Reorganization Act of 1946, as amended, rule XXV(k) of the
Standing Rules of the Senate, and additional authorizing
resolutions.
I. Highlights of Activities
In the 105th Congress, the Senate Governmental Affairs
Committee continued its pursuit of a smaller, more efficient
and accountable government. The Committee's jurisdiction is
extensive. This writ covers not only whether taxpayers are
getting their money's worth on over $1.9 trillion in annual
Federal expenditures, but also includes the $700 billion in
annual regulatory expenditures, the $850 billion government
loan portfolio, Federal insurance programs and the impact of
Federal mandates on State and local governments. The Committee
is committed to effective oversight of all of these instruments
used by the government.
Over the years, the Committee has consistently worked to
create a leaner, more efficient government. Legislation
originating from the Committee established a new framework for
government accountability. This statutory framework includes
the Government Performance and Results Act of 1993 (P.L. 103-
62); financial management statutes, such as the Chief Financial
Officers Act of 1990 (P.L. 103-356), the Federal Managers'
Financial Integrity Act of 1996 (P.L. 104-208), and the Federal
Financial Management Improvement Act of 1982 (P.L. 97-255); and
acquisition and information technology management reforms, such
as the Federal Acquisition Streamlining Act of 1994 (P.L. 103-
355) and the Clinger-Cohen Act of 1996 (Divisions D and E of
P.L. 104-106). These statutes will be driving Federal agencies
to modernize and improve both performance and accountability.
Chairman Thompson said ``it is for us--the Congress and the
Administration--now to work together to ensure that these
management reforms now in place are implemented and accomplish
their goals to improve government performance and results.''
The Committee believes that considerable progress was made,
particularly in light of the extensive period of time devoted
to the Committee's special Investigation of Illegal or Improper
Activities in Connection with 1996 Federal Election Campaigns.
HIGH RISK AGENCIES
The Committee spotlighted the most egregious examples of
government waste and mismanagement. The Committee held hearings
on those agencies the General Accounting Office (GAO)
identified as most susceptible to waste, fraud, abuse and
mismanagement: The IRS, the Department of Defense (DOD), the
Department of Housing and Urban Development (HUD) and the
Census Bureau. Subsequently, Chairman Thompson and Senators
Cochran, Brownback, Durbin and Cleland were appointed from the
Committee to the Conference Committee which finalized the
historic IRS reform act.
INFORMATION SECURITY/ VULNERABILITY
The Committee uncovered and identified failures of
information security affecting our international security and
vulnerability to domestic and international terrorism. Chairman
Thompson highlighted our Nation's vulnerability to computer
attacks--from international and domestic terrorists to crime
rings to everyday hackers. The Committee conducted studies on
the computer security vulnerabilities of the State Department,
the FAA, the Social Security Administration, and the Veterans'
Administration.
RESULTS ACT
Meaningful implementation of the Government Performance and
Results Act (GPRA) was a major Committee priority. GPRA
requires agencies to set multiyear strategic goals and
corresponding annual goals, measure performance toward the
achievement of those goals, and report on their progress. At a
first-ever joint hearing of their two committees, Chairman
Thompson and Appropriations Committee Chairman Ted Stevens
called on Federal agencies to actively work for a leaner,
results-oriented government by complying with GPRA.
To spur agency implementation of GPRA, the Committee
engaged in correspondence with the Office of Management and
Budget (OMB) and individual agencies regarding their statutory
obligations under GPRA. In addition, the Committee sponsored
audit and investigative work at GAO with respect to strategic
plans, performance planning, performance budgeting, and program
evaluation.
GOVERNMENT PROCUREMENT REFORM
Given that the Federal Government spends about $200 billion
annually on buying everything from weapons systems to computer
systems to everyday commodities, the Committee's role is to
ensure that, within that system, industry sellers and
government buyers offer and acquire, respectively, maximum
value for the taxpayer. Chairman Thompson developed consensus
legislation, the FAIR Act, to require Federal agencies to
identify those activities currently performed by Federal
employees that could be performed by the private sector. The
Committee added language to other legislation to further
streamline and simplify the procurement system. The Committee
also opposed legislation and regulations which would have added
unnecessary government-unique requirements to Federal contracts
and increased costs to the taxpayer.
REGULATORY ISSUES
The Chairman initiated a series of GAO investigations of
the Administration's management of the regulatory process and
its compliance with ``transparency requirements'' and cost-
benefit analyses. Chairman Thompson and Senator Levin drafted
and moved the Regulatory Improvement Act through the Committee,
after working successfully to develop broad bipartisan support
for this measure. Chairman Thompson also drafted and passed
regulatory accounting legislation, now law, which requires that
Federal agencies report on the costs of Federal regulatory
programs for fiscal year 1999.
VACANCIES ACT
Chairman Thompson, working with Senator Robert Byrd (D-WV),
Senator Strom Thurmond (R-SC), and Committee Democrats,
developed and managed to enactment bipartisan legislation to
preserve our Constitutional system of checks and balances and
assure that officials serving in key government jobs have been
nominated and confirmed as required by law. At the time of
enactment of the Vacancies Act (Public Law 105-277), 20 percent
of the 340 Executive Branch positions which require Senate
confirmation were held by acting officials.
FINANCIAL MISMANAGEMENT
As part of its efforts to improve financial management in
the Federal Government, the Committee highlighted financial
mismanagement at DOD, where waste, fraud, and abuse totalled
billions of dollars. Of the GAO audit opinion of the Federal
Government's first ever consolidated financial statements,
Chairman Thompson said: ``The government failed miserably. The
government's deteriorating accounting systems put Congress at a
severe disadvantage because we lack reliable information to
assess program performance, control costs and stop widespread
waste, fraud and abuse.''
In that audit, Secretary of the Treasury Robert Rubin
described the work in the Executive Branch to improve financial
management. But, he agreed that more needed to be done.
Secretary Rubin wrote, ``Despite the substantial progress that
has been made, however, further improvements are clearly
necessary.''
YEAR 2000 COMPUTER PROBLEM
Through hearings and other actions, the Committee kept
pressure on the Executive agencies to treat the anticiapted
year 2000 computer failure with the seriousness it demands.
DECENNIAL CENSUS
The Committee identified, examined and worked toward the
resolution of the Census Bureau's problems and progress in
preparing for the 2000 decennial census. The 2000 census was
the subject of two oversight hearings and a Committee-requested
GAO investigation. The Committee challenged the new Census
director, during his confirmation process, to rise to his
critical management tasks.
FEDERALISM
Rule XXV of the Standing Rules of the Senate vests
responsibility for intergovernmental relations with the
Committee. Federalism, the Federal Government's relationship
with the States, is the constitutional principle that the
Federal Government has limited powers and that government
closest to the people--States and localities--plays a critical
role in our governmental system.
Shortly after becoming Chairman, Senator Thompson initiated
a GAO review of agency compliance with Title II of the Unfunded
Mandates Reform Act. Among other things, Title II requires
agencies to consider the extent to which regulations impose
significant unfunded mandates on State, local, and tribal
governments. It also calls for agencies to consider regulatory
alternatives and to select the alternative that is the least
costly, most cost-effective, or least burdensome. GAO found
that, in many instances, Title II had little effect on agency
rulemaking. Senator Thompson also worked closely with the
National Governors' Association, the National Conference of
State Legislatures, and other State and local government
organizations to reform the regulatory process and to make
agencies more sensitive to State and local government concerns.
Chairman Thompson also sponsored a resolution to stop
repeal of the Reagan Executive Order on Federalism (E.O. 12612)
and an attempt to replace it with a new Executive Order that
was opposed by State and local officials. That resolution
passed the Senate unanimously as an amendment to the
appropriations bill for the Departments of Commerce, Justice,
and State, the Judiciary, and related agencies for Fiscal Year
1999. Chairman Thompson subsequently introduced legislation
requiring Federal agencies to respect Federalism when
formulating policies and implementing the laws passed by
Congress.
EXPORT CONTROLS
In 1998, the Administration's export control policy became
a focus of national attention following allegations that
American companies undermined national security by illegally
transferring sensitive technology to China. Through its
Subcommittee on International Security, Proliferation, and
Federal Services, chaired by Senator Cochran, the Committee
exercised consistent oversight on the issue of technology
transfer and its facilitation of dangerous weapons
proliferation. Because of this experience and expertise,
Chairman Thompson and Senator Cochran were included on a
Special Task Force created by the Majority Leader to examine
the issue of technology transfers to China.
The Subcommittee on International Security, Proliferation,
and Federal Services and the full Committee held a series of
hearings examining America's export control process. At these
hearings, a number of witnesses raised questions about the
effectiveness and efficiency of the U.S. export control system,
and about the extent to which they believed lax export control
policies helped the People's Republic of China improve the
reliability of its ballistic missile program. The attention
given this issue and the findings of the Committee contributed
to legislative action. As part of the National Defense
Authorization Act for Fiscal Year 1999, Congress returned
communications satellite exports to the U.S. Munitions List run
by the State Department, removing them from the more loosely-
controlled Commerce Control List administered by the Department
of Commerce. In addition, recognizing the need to further
examine our export control policy, Chairman Thompson requested
the Inspectors General at six agencies--the Departments of
Commerce, Defense, State, Treasury, Energy, and the Central
Intelligence Agency--to conduct an interagency investigation of
the licensing process for dual-use items and munitions.
BUDGET REFORMS
Budgetary reform is another priority of the Committee.
Senate rules grant joint jurisdiction on budget process reform
legislation to the Committee and the Committee on the Budget.
Chairman Thompson teamed up with Budget Committee Chairman
Domenici to push for budget reform. A bill was reported out of
the Committee to provide for a biennial budget and
appropriations process which would reduce the amount of time
spent on the budget process and provide more time for program
oversight and reviewing government performance.
INSPECTORS GENERAL
Nineteen hundred and ninety eight marked the 20th
anniversary of the Inspector General Act. To commemorate the
occasion, the Committee approved a joint resolution which was
enacted congratulating the Inspectors General on their efforts
to fight waste, fraud and abuse in the Federal Government. On
September 9, 1998, the Committee conducted a hearing to address
various threats to the effectiveness and independence of the
Inspectors General. As a result of the hearing, the Committee
began an investigation into alleged attempts to intimidate the
Inspector General for the Department of Housing and Urban
Development. The Committee also considered legislative
proposals to amend the Inspector General Act.
DISTRICT OF COLUMBIA
Because the Committee has jurisdiction over the matters of
the District of Columbia, the Committee devoted substantial
time to D.C. reforms. The major piece of reform legislation in
the 105th Congress was the National Capital Revitalization and
Self-Government Improvement Act of 1997 which was enacted as
part of the Balanced Budget Act of 1997 (Public Law 105-33).
The Committee was involved extensively in the development of
the Act which was designed to address serious financial and
management problems the District of Columbia was experiencing.
The law, among other things, temporarily altered the home rule
status of D.C. by reducing the power of the Mayor and D.C.
Council and transferring authority over various items to the
previously-established financial control board and the Federal
Government. Some of the major responsibilities transferred to
the Federal Government include financial responsibility for
D.C. prisons and court system and $4.8 billion for D.C. pension
liability for police, firefighters, teachers, and judges. The
Act also increased the Federal contribution to Medicaid from 50
percent to 70 percent. The financial control board assumed
authority over nine major agencies. The authority transferred
to the control board included the ability to appoint and
dismiss agency heads and direct the implementation of
management reforms.
FEDERAL PERSONNEL ISSUES
In the 105th Congress, the Committee continued to exercise
active oversight over a major part of its jurisdiction: Issues
affecting Federal employees. The Committee reviewed and
approved legislation which was enacted to improve the Federal
Employees' Health Benefits Program and the Federal Employees
Group Life Insurance program.
The Committee also addressed issues affecting the Federal
Employees' Compensation Act--the comprehensive workers'
compensation law for Federal employees. The Committee reported
legislation which was enacted to ensure that persons who commit
fraud in the receipt of FECA benefits would lose their
entitlement to such benefits.
Finally, the Committee addressed budget issues affecting
Federal and postal employees and retirees. While achieving
targeted savings, the Committee approved budget reconciliation
legislation which ended the delay in cost-of-living adjustments
for Federal and postal retiree annuities, thereby treating the
date on which cost-of-living adjustments are paid to Federal
annuitants in the same manner as Social Security recipients and
military retirees. These reforms were incorporated into the
Balanced Budget Act of 1997 (Public Law 105-33).
SPECIAL INVESTIGATION
In the wake of numerous revelations in the news media of
unusual, and possibly illegal, campaign contributions during
the 1996 presidential campaign, the Senate Majority Leader
announced in early December 1996 that the Committee on
Governmental Affairs would conduct an investigation on behalf
of the Senate into these fundraising practices following the
convocation of the 105th Congress in January 1997. The Majority
Leader chose to entrust the Committee, which has the broadest
oversight jurisdiction and most extensive subpoena authority of
any committee of the Senate, with this responsibility.
Subsequently, on March 11, 1997, the Senate voted
unanimously to authorize the Committee to conduct ``an
investigation of illegal or improper activities in connection
with 1996 Federal election campaigns'' (S. Res. 39).
Significantly, however, a deadline of December 31, 1997, was
imposed on the investigation. The Committee's work was further
impeded by the many witnesses who fled the country or asserted
their Fifth Amendment right against self-incrimination, and the
many public and private entities that either delayed their
responses to Committee subpoenas or inquiries, or simply
refused to cooperate at all. Despite these obstacles, however,
in the brief time available to it, the Committee conducted a
world-wide investigation: It issued 427 subpoenas, received
over 1.5 million pages of documents, took 200 depositions,
conducted over 200 witness interviews, and held 32 days of
hearings at which 72 witnesses testified. In early 1998, the
Committee published a final report of 9,600 pages--S. Rept.
105-167 on March 10, 1998--and still returned $850,000 to the
U.S. Treasury.
Unfortunately, the Justice Department's efforts to
investigate the 1996 fundraising scandals lagged behind those
of the Committee's Special Investigation. An internal FBI
memorandum sent to Director Louis Freeh in August 1997, for
example, expressed concerns that the Committee investigators
were often ahead of the Department's Campaign Financing Task
Force (CFTF).
By the end of the 105th Congress, the Task Force
investigating the campaign finance scandals had achieved eight
guilty pleas or convictions by individuals or corporations for
activities related to their campaign fundraising:\1\ Juan Ortiz
(in connection with donations to the Democratic National
Committee [DNC]); Johnny Chung (relating to straw donor
contributions to the DNC); Howard Glicken (relating to
contributions to the Democratic Senatorial Campaign Committee);
Future Tech International (relating to straw donor
contributions to the DNC); Gene Lum, Nora Lum, Trisha Lum, and
Michael Brown (relating to straw donor contributions to the
campaign of Senator Edward Kennedy). Numerous additional
persons also stood accused of crimes in cases that had not yet
concluded--including DNC fundraisers Maria Hsia, Yah Lin
(``Charlie'') Trie, and Pauline Kanchanalak--and numerous other
individuals or organizations were the subjects of ongoing
investigations.
---------------------------------------------------------------------------
\1\ See U.S. Department of Justice, ``Future Tech International and
its CFO Agree to Plead Guilty to Tax and Campaign Finance Charges''
(press release of December 17, 1998) (listing Task Force pleas and
convictions).
---------------------------------------------------------------------------
By the end of the 105th Congress, a separate inquiry by the
U.S. Attorney's office in New York had also produced five
convictions or guilty pleas in connection with another subject
examined during the Committee's Special Investigation--the
unlawful ``swapping'' of campaign contributions between the DNC
and the International Brotherhood of Teamsters. As a result of
the Committee's inquiry, moreover, an Independent Counsel was
also appointed to investigate Secretary of the Interior Bruce
Babbitt, and preliminary inquiries under the Independent
Counsel Act had been opened concerning the President, the Vice-
President, and three other Administration officials. (In 1999,
the Independent Counsel declared there to be insufficient
evidence to warrant an indictment in the Babbitt case. Attorney
General Janet Reno declined to request an Independent Counsel
for any of the other preliminary inquiries.)
All in all, the Committee's Special Investigation
demonstrated that the U.S. campaign finance system had become
subject to wide abuse and had essentially lost its ability to
restrain and regulate the conduct of political fundraising in
this country. Even before the end of the 105th Congress, the
Committee's public airing of the 1996 abuses was being widely
cited by advocates of campaign finance reform--including both
those who support a more strict regulatory framework and those
who favor substituting full and complete disclosure rules for
our current system of regulations.
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 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 Controller 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
Government; and (4) study the intergovernmental relations
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 GAO, the Office of Personnel
Management, OMB, 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
During the 105th Congress, 146 Senate bills and 43 House
bills were referred to the Committee for consideration. Also,
12 Concurrent Senate Resolutions, 7 Senate Resolutions and 2
House Concurrent Resolutions were referred to the Committee. Of
the legislation received and considered, 50 bills were reported
and 25 were enacted into law. In addition, 16 measures were
enacted as part of other legislation.
IV. Hearings
During the 105th Congress, the Committee and its three
Subcommittees held a total of 133 hearings during 120 days on
legislation, a wide variety of oversight issues, and
nominations. At the full Committee level, a number of important
topics were examined, including:
BIENNIAL BUDGETING
On April 23, 1997, the Committee held a hearing on S. 261,
the Biennial Budgeting and Appropriations Act. The hearing
focused on the legislative proposal to convert the current
annual budget and appropriations process to a 2-year, or
biennial, cycle. The Committee heard from Franklin D. Raines,
Director, OMB; Hon. Robert F. Bennett, U.S. Senator from the
State of Utah; Charles J. Whalen, Senior Economist at the
Institute for Industry Studies at Cornell University; Louis
Fisher, Senior Specialist in Separation of Powers with the
Congressional Research Service; and Susan J. Irving, Associate
Director for Budget Issues, GAO. The bill was reported by the
Committee to the Senate for consideration, but it was never
acted upon.
CORPORATE SUBSIDY REFORM
On February 13, 1997, the Committee held a hearing on S.
207, the Corporate Subsidy Reform Commission Act of 1997. The
purpose of the hearing was to review S. 207, as introduced by
Senator John McCain. The bill would create a Commission
intended to fairly and independently review corporate subsidies
and make recommendations to the President and the Congress for
the retention, reform or termination of such subsidies. The
Committee heard from Hon. John McCain, U.S. Senator from the
State of Arizona; Hon. John F. Kerry, U.S. Senator from the
State of Massachusetts; Hon. Russell D. Feingold, U.S. Senator
from the State of Wisconsin; Thomas Schatz, President, Citizens
Against Government Waste; Grover Nordquist, President,
Americans for Tax Reform; Courtney Cuff, Green Scissors
Campaign Director, Friends of the Earth; and Dean Stencil,
Fiscal Policy Analyst with the Cato Institute. The bill was
reported by the Committee to the Senate for consideration, but
it was never acted upon.
HIGH RISK AREAS
The Committee held several hearings during the 105th
Congress on high risk areas at IRS, the Department of Defense
(DOD), the Department of Housing and Urban Development (HUD)
and the Bureau of the Census.
On March 5, 1997 the Committee held a hearing on Lasting
Solutions to High Risk Programs. Witnesses included John
Koskinen, Deputy Director for Management, OMB; Gene Dodaro,
Assistant Comptroller, General Accounting and Information
Management Division, GAO; Dwight Robinson, Deputy Secretary,
HUD; and Susan Gaffney, Inspector General, HUD.
On April 10, 1997 the Committee held a hearing on IRS and
the Taxpayer at Risk. Testifying at the hearing were Lawrence
Summers, Deputy Secretary of Treasury, Department of Treasury;
Michael Dolan, Deputy Commissioner, IRS; Dr. Rona Stillman,
Chief Scientist, Office of Computers and Telecommunications
Accounting and Information Management Division, GAO; and Donald
C. Alexander, Akin, Gump, Strauss, Hauer and Feld.
A third high risk hearing was held on May 1, 1997 on the
Department of Defense at Risk. Witnesses included Henry Hinton,
Assistant Comptroller General for National Security and
International Affairs, GAO; R. Noel Longuemare, Principal
Deputy Under Secretary for Acquisition and Technology, DOD;
John F. Phillips, Deputy Under Secretary for Logistics, DOD;
Emmett Paige, Assistant Secretary for Command, Control,
Communications, and Intelligence, DOD; and John J. Hamre, Under
Secretary and Comptroller, DOD.
INTERNAL REVENUE SERVICE RESTRUCTURING
On March 12, 1998, the Committee held a hearing to discuss
the challenges of restructuring the Internal Revenue Service
(IRS). The hearing focused specifically on the personnel and
management flexibilities contained in legislation aimed at
restructuring the IRS. Testifying at this hearing were Charles
O. Rossotti, Commissioner of the Internal Revenue Service; G.
Edward DeSeve, Deputy Director for Management, OMB; Carol J.
Okin, Associate Director, Office of Merit Systems Oversight and
Effectiveness, Office of Personnel Management; and Michael
Brostek, Associate Director, Federal Workforce and Management
Issues, GAO.
GOVERNMENT PERFORMANCE AND RESULTS ACT
The Government Performance and Results Act (GPRA) is the
foundation of better government management, and oversight of
the implementation of this law is critical to improving
government performance. In June 1997, at a historic first-ever
joint hearing of the two committees, Chairman Fred Thompson and
Appropriations Committee Chairman Ted Stevens called on Federal
agencies to actively work for a smaller, leaner government by
complying with GPRA. Witnesses at this hearing were the Hon.
Franklin D. Raines, Director, Office of Management and Budget;
and James Hinchman, Acting Comptroller General of the United
States, United States General Accounting Office. Oversight
continued throughout the 105th Congress as the government
implemented its first budget cycle under GPRA.
INFORMATION SECURITY
On May 19, 1998, the Committee continued to exercise its
oversight over a major part of its jurisdiction: Information
management. In particular, the Committee held a hearing on how
Federal agencies are providing computer security. The hearing,
``Weak Computer Security in the Government: Is the Public at
Risk?'' provided many new insights into how the government has
not kept pace with the advances in technology and its multiple
applications. In fact, the hearing revealed that, not only has
technology advanced, it has become less complex for users and
its availability is not limited but instead is widely
distributed around the world.
Specifically, this hearing addressed systemic problems,
which make government computer and communication systems
vulnerable to both deliberate and inadvertent attacks. Dr.
Peter Neumann, Principal Scientist, Computer Science
Laboratory, SRI International, testified that our Nation's
underlying information infrastructure (for example, power
generation, transmission and distribution; air traffic control;
and telecommunication) remain at risk. Even though the risk is
widely known, Dr. Neumann stated that until high-visibility
disasters occur, few people are willing to admit that something
drastic needs to be done. He said that may take a Chernobyl-
scale event to raise awareness levels adequately. Also, seven
members of L0pht, a ``hacker'' think tank, provided testimony
to the Committee. L0pht said that, in a matter of 30 minutes,
they could unlock the security systems within the Internet and
make the entire system unusable for a couple of days. While
they have shared this finding with appropriate authorities,
they asserted that nothing has been done to remedy the problem.
On June 24, 1998, another hearing was conducted, ``Cyber
Attack: Is the Nation at Risk?'' This hearing addressed threats
and vulnerabilities to the U.S. national security due to weak
computer security.
The Director of Central Intelligence, George Tenet,
testified that information warfare has the potential to deal a
crippling blow to our national security if strong measures are
not taken to counter it. Director Tenet noted that the United
States is highly dependent on information systems and therefore
is the most likely target for an information attack. Potential
threats range from national intelligence and military
organizations, terrorists, criminals, industrial competitors,
hackers, and disgruntled or disloyal insiders. Director Tenet
stated that several countries, including Russia and China, have
government-sponsored information warfare programs with both
offensive and defensive applications. These countries see
information warfare as a way of leveling the playing field
against a stronger military power, such as the United States.
The more difficult threat to assess is that from non-State
actors, such as terrorists and criminals. Cyber attacks offer
these groups greater security and operational flexibility. They
can launch an assault from almost anywhere in the world without
directly exposing themselves to physical harm.
The Director of the National Security Agency (NSA),
Lieutenant General Ken Minihan, testified on the findings from
the DOD's exercise ``Eligible Receiver.'' This exercise
demonstrated that our Nation's information infrastructure is
riddled with vulnerabilities and that there exist severe
deficiencies in our ability to respond to a coordinated attack
on our national infrastructure and information systems. During
the exercise, a team of hackers from NSA, using easily
available tools obtained from the Internet, proved that they
could deny our military the ability to deploy forces and
conduct operations.
In the third hearing on computer security in Federal
Government agencies, the Committee examined whether private
information held by the Federal Government--information
relating to one's identification, finances and health--is
susceptible to unauthorized access and manipulation by computer
hackers. The hearing on September 23, 1998, ``Information
Security,'' focused on the results of penetration testing
performed at two Federal agencies--the Department of Veterans
Affairs (VA) and the Social Security Administration (SSA) .
Regarding SSA, the Committee heard testimony from agents of
the SSA Office of Inspector General, who described a variety of
computer crimes committed by SSA employees. The agents
discussed in detail a series of prosecutions known as
``Operation Pinch,'' in which 14 SSA employees were convicted
for their part in a widespread credit card fraud ring centered
in New York. The agents had determined that SSA employees sold
identity information on 20,000 people whose credit cards were
fraudulently activated by a West African crime ring, resulting
in bank losses of at least $70 million. The cases demonstrate
the danger of the ``inside threat'' to agencies that do not
adequately monitor and limit computer access of their own
employees.
Witnesses from GAO described the results of penetration
testing at the VA and SSA. GAO was able, during its VA testing,
to alter, disclose or delete sensitive information, such as
financial data and personal information on veterans' medical
records and benefit payments. GAO's penetration went undetected
because the VA does not have a monitoring system. GAO's
penetration testing of the SSA exposed vulnerabilities in the
SSA computer system to both external and internal intrusions.
These types of weaknesses place at risk private information
held by SSA, including Social Security numbers, earnings,
disabilities, and benefits.
YEAR 2000
On April 1, 1998, a hearing was held on the Year 2000
problem, ``Crashing into the Millennium.'' This hearing
addressed the Administration's management of the problem to
ensure that critical government systems are Year 2000 compliant
and interpret the digits ``00'' as the year 1900 instead of the
year 2000. The ability of Federal agencies to fix this problem
was deemed insufficient.
The Assistant to the President for Year 2000, John
Koskinen, along with the Deputy Secretaries from the
Departments of Health and Human Services (HHS) and
Transportation discussed their efforts to: Increase public
awareness; enhance information or data exchange between and
among Federal, State and local governments, as well as between
public and private sectors; and ensure contingency plans are in
place to avoid disruption of critical governmental operations
and prevent harm to the health and safety of the public.
EXPORT CONTROLS
The Committee held a hearing on June 25, 1998, to examine
the Defense Technology Security Agency and its role in
approving critical technology exports.
Witnesses included Dr. Peter Leitner, Senior Strategic
Trade Advisor, Defense Technology Security Administration, and
Franklin Miller, Principal Deputy Assistant Secretary for
Strategy and Threat Reduction, DOD. This hearing discussed
serious allegations about the adequacy and fairness of the
process by which dual-use export licensing decisions are
evaluated within the Department of Defense and in the
interagency dispute-resolution process.
INSPECTOR GENERAL ACT: 20TH ANNIVERSARY
Nineteen hundred ninety eight marked the 20th anniversary
of the Inspector General (IG) Act, and the Committee, as the
Senate's primary IG oversight authority, held a hearing on
September 9, 1998, to reflect on the health of the IGs and to
consider various proposals to amend the IG Act. The Committee
heard testimony from two prominent IGs--Susan Gaffney of HUD
and June Gibbs Brown of HHS--and a witness from OMB.
First, Ms. Brown described her generally positive working
relationship with HHS Secretary Donna Shalala, noting that an
inspector general can be a valued internal advisor on issues
relating to fraud and abuse, without compromising the IG's
independence. In contrast, Ms. Gaffney discussed her troubled
relationship with senior management at HUD, including
difficulties over HUD's handling of an equal employment
opportunity complaint against the IG, and pressure placed upon
Ms. Gaffney to forego criticizing a high profile HUD
reorganization initiative. The witnesses offered
recommendations on how the IG Act might be amended and how IG/
agency relationships should be structured to ensure IG
productivity and independence.
CENSUS
The Committee's first census oversight hearing on March 11,
1997, gave Members an overview of the Bureau's plans for Census
2000. The focus of the testimony was two-fold: (1) to hear from
the Secretary of Commerce and the Director of the Census Bureau
regarding the Bureau's preparation and plans for Census 2000
and (2) to discuss how census data is used by States, local
governments and the private sector. A subsequent hearing April
16, 1997, focused exclusively on the legal and scientific
aspects of sampling and adjustment in the decennial census. It
was clear from the testimony that opinions on the legal and
statistical propriety of sampling in Census 2000 are as diverse
as the methods used to conduct the census itself. For instance,
a GAO report on the 2000 Census, ``Preparations for Dress
Rehearsal Leave Many Unanswered Questions,'' focused on a
number of major operational design activities still in the
development stage including address list development, outreach
and promotion, staffing, and other major management issues. GAO
auditors concluded that the longer these key decisions remain
unresolved, the greater the risk of a failed 2000 census.
The Committee also held a hearing on September 17, 1998, on
the nomination of Dr. J. Kenneth Prewitt, to be director of the
Census Bureau. The Committee focused on Dr. Prewitt's
qualifications to manage Census 2000 in light of the numerous
immediate challenges facing the incoming director. The Senate
confirmed Dr. Prewitt as Director of the Census Bureau on
October 21, 1998.
VACANCIES ACT
On March 18, 1998, the Committee held a hearing,
``Oversight of the Implementation of the Vacancies Act,'' then
in effect. Appearing before the Committee as witnesses were:
Hon. Robert C. Byrd, U.S. Senator from the State of West
Virginia; Hon. Strom Thurmond, U.S. Senator from the State of
South Carolina; Joseph N. Onek, Principal Deputy Associate
Attorney General, accompanied by Daniel Koffsky, Special
Counsel, Office of Legal Counsel; Joan M. Hollenbeck, Associate
General Counsel, GAO; Michael J. Gerhardt, Professor of Law,
Case Western Reserve University; Morton Rosenberg, Specialist
in American Public Law, Congressional Research Service; and
Paul C. Light, Director, Public Policy Program, The Pew
Charitable Trusts.
All of the witnesses except those from the Justice
Department supported legislation that would overturn the
Justice Department's arguments of exemption from the Vacancies
Act, and that would create an enforcement mechanism. Senators
Byrd and Thurmond stressed the need for air-tight legislation
so that the Justice Department could no longer argue that it is
exempt from the Act. GAO testified that the Justice
Department's interpretation of the Vacancies Act was contrary
to the language and legislative history of both the Act and its
organic statute and also offered GAO's recommendation that
legislation be passed to explicitly provide that the Act can be
superseded only by a statute providing an alternative means for
filling a particular vacancy. Prof. Michael Gephardt of Case
Western University testified to the need to change some of the
terms of art used in the Vacancies Act, and suggested
lengthening the 120-day time period. Morton Rosenberg of the
Congressional Research Service, spoke of the problem of
transferring assistant secretaries from one position to another
without undergoing Senate confirmation. Paul Light, of the Pew
Charitable Trusts, testified that one of the problems with
noncompliance of the Vacancies Act is the unnecessary
proliferation of political appointees in the government at a
time when total Federal employment was declining.
REFORM OF NATIONAL SECURITY INFORMATION CLASSIFICATION AND
DECLASSIFICATION SYSTEM
On May 7, 1997, the Committee held a hearing to review the
consensus final report and recommendations of the Commission on
Protecting and Reducing Government Secrecy. The Committee heard
testimony from the four congressional members of the
Commission--Senator Daniel Patrick Moynihan, the Commission's
Chairman; Senator Jesse Helms; Representative Larry Combest,
the Commission's Vice Chairman; and Representative Lee
Hamilton. The Committee also heard testimony from former
Secretary of State Lawrence Eagleburger; journalist David Wise;
and Alden V. Munson, Jr., senior vice president of the
Information Systems Group of Litton Industries, Inc., a
government contractor involved in classified programs.
On March 25, 1998, the Committee held a second hearing on
the national security information system to consider S. 712,
legislation which reflected the recommendations of the
Commission on Protecting and Reducing Government Secrecy. The
Committee heard testimony from Edmund Cohen, Director of
Information Management, Central Intelligence Agency; William
Leonard, Director of Security Programs, Department of Defense;
A. Bryan Seibert, Director of the Office of Declassification,
Department of Energy; Steven Garfinkel, Director of the
Information Security Oversight Office, National Archives and
Records Administration; T. Jeremy Gunn, Executive Director,
John F. Kennedy Assassination Records Review Board; and Steven
Aftergood, Director of the Project on Government Secrecy,
Federation of American Scientists. The Committee received
specific suggestions from these witnesses on provisions of the
legislation and proposals for amendments to improve the
legislation.
THE REGULATORY IMPROVEMENT ACT OF 1998
On September 12, 1997, the Committee held its first hearing
on S. 981, the Regulatory Improvement Act of 1998. This hearing
built on the Committee's extensive hearing record and
legislative history on regulatory reform from the 104th
Congress. Testifying at this hearing were Sally Katzen,
Administrator, OMB's Office of Information and Regulatory
Affairs; L. Nye Stevens, Director, Federal Management and
Workforce Issues, General Government Division, GAO; Thomas F.
Walton, Director, Economic Policy, General Motors Corporation,
on behalf of the Alliance for Understandable, Sensible and
Accountable Regulation; Sal Risalvato, a small business owner,
on behalf of the National Federation of Independent Business;
James L. Martin, Director, Office of State-Federal Affairs,
National Governors' Association; Ernest Gellhorn, Professor of
Law, George Mason University School of Law; John D. Graham,
Director, Harvard Center for Risk Analysis; C. Boyden Gray,
Partner, Wilmer, Cutler and Pickering, former Counsel to the
President and former Counsel to the Presidential Task Force on
Regulatory Relief; David G. Hawkins, Senior Attorney, Natural
Resources Defense Council; Paul R. Portney, President,
Resources for the Future; and David Vladek, Director, Public
Citizen Litigation Group.
The Committee held its second regulatory reform hearing on
February 24, 1998. The first two witnesses were Hon. George
Voinovich, Governor of Ohio and President of the National
Governors' Association, and Hon. Ben Nelson, Governor of
Nebraska and Chairman of the Committee on Natural Resources,
National Governors' Association. Also testifying were Dr.
Milton Russell, Senior Fellow of the Joint Institute for Energy
and the Environment and Professor Emeritus at the University of
Tennessee; Nancy Donley, President, Safe Tables Our Priority;
Sue Doneth, Member, Safe Tables Our Priority; Dr. Lester
Crawford, Georgetown Center for Food and Nutrition Policy;
Michael Resnick, National School Boards Association; Dr. Bruce
Alberts, President, National Academy of Sciences; Warren
Belmar, Chair, ABA Administrative Law Committee; Frank Mirer,
Director of Health and Safety, United Auto Workers; Karen
Florini, Senior Attorney, Environmental Defense Fund; Robert
Litan, Director of Economic Studies and Cabot Family
Chairholder of Economics, Brookings Institution; and Robert
Hahn, Resident Scholar, American Enterprise Institute.
THE MANDATES INFORMATION ACT
On June 3, 1998, the Committee held a hearing on S. 389,
the Mandates Information Act. This bill would amend the
Congressional Budget Act of 1974 to require the Director of the
Congressional Budget Office (CBO), in preparing estimates of
the direct costs of all Federal private sector mandates, to
estimate also the indirect impact of such mandates on
consumers, workers, and small businesses, including any
disproportionate impact in particular regions or industries. It
also would subject to a point of order any legislation for
which the CBO Director is unable to determine the economic
impact of a Federal mandate.
Witnesses at the hearing were Senator Spencer Abraham (R-
MI), the sponsor of S. 389; Representative Rob Portman (R-OH),
the House sponsor of H.R. 3534, the House companion bill; James
L. Blum, Deputy Director, Congressional Budget Office; R. Bruce
Josten, Executive Vice President of Government Affairs, U.S.
Chamber of Commerce; Mary Ann Cricchio, owner of Da Mimmo
Italian Restaurant in Baltimore, Maryland on behalf of the
National Restaurant Association; and, Sharon Buccino,
Legislative Counsel, Natural Resources Defense Council. The
bill was reported by the Committee to the Senate for
consideration, placed on the Senate calendar, but never acted
upon.
V. Reports and GAO Reports
During the 105th Congress, the Committee and its
Subcommittees prepared and issued 20 reports, special prints
and studies on these topics:
(1) Biennial Budgeting and Appropriations (S. Rept. 105-
72);
(2) Corporate Subsidy Reform Commission Act of 1997 (S.
Rept. 105-107);
(3) Census of Agriculture Act of 1997 (S. Rept. 105-141);
(4) The National Drought Policy Act of 1997 (S. Rept. 105-
144);
(5) Lobbying Disclosure Technical Amendments Act of 1997
(S. Rept. 105-147);
(6) Federal Reports Elimination Act of 1997 (S. Rept. 105-
187);
(7) Regulatory Improvement Act of 1998 (S. Rept. 105-188);
(8) Federal Financial Assistance Management Improvement Act
of 1998 (S. Rept. 105-194);
(9) Extension of a Quarterly Financial Report Program
Administered by the Secretary of Commerce (S. Rept. 105-241);
(10) Vacancies Act (S. Rept. 105-250);
(11) To Improve Administration of Sanctions Against Unfit
Health Care Providers under the Federal Employees Health
Benefits Program (S. Rept. 105-257);
(12) To provide for a system to classify information in the
interests of national security and a system to declassify such
information (S. Rept. 105-258);
(13) To provide a process for identifying the functions of
the Federal Government that are not inherently governmental
functions, and for other purposes (S. Rept. 105-269);
(14) To Establish a Commission to Assist in Commemoration
of the Centennial of Powered Flight and the Achievements of the
Wright Brothers (S. Rept. 105-294);
(15) To Require Federal Employees to use Federal Charge
Cards (S. Rept. 105-295);
(16) To Correct a Provision Relating to Termination of
Benefits for Convicted Persons (S. Rept. 105-296);
(17) To Improve Congressional Deliberation on Proposed
Federal Private Sector Mandates (S. Rept. 105-299);
(18) To Amend the Federal Advisory Committee Act (S. Rept.
105-309);
(19) To require that the Office of Personnel Management
Submit Proposed Legislation under which Group Universal Life
Insurance and Group Variable Universal Life Insurance would be
Available under Chapter 87 of title 5 (S. Rept. 105-337);
(20) To Establish a Federal Commission on Statistical
Policy to Study the Reorganization of the Federal Statistical
System (S. Rept. 105-367).
gao reports
Also during the 105th Congress, 64 reports were issued by
the General Accounting Office at the request of the Committee:
(1) Nuclear Waste: DOE's Estimates of Potential Savings
From Privatizing Cleanup Projects, RCED-97-49R (January 31,
1997);
(2) Land Management Agencies: Information on Selected
Administrative Policies and Practices, RCED-97-40 (February 11,
1997);
(3) High-Risk Areas: Actions Needed to Solve Pressing
Management Problems, T-AIMD--GGD-97-60 (March 5, 1997);
(4) Department of Energy: Management and Oversight of
Cleanup Activities at Fernald, RCED-97-63 (March 14, 1997);
(5) IRS Systems Security: Tax Processing Operations and
Data Still at Risk Due to Serious Weaknesses, AIMD-97-49 (April
8, 1997);
(6) IRS Systems Security: Tax Processing Operations and
Data Still at Risk Due to Serious Weaknesses, T-AIMD-97-76
(April 10, 1997);
(7) Budget Process: Comments on S. 261--Biennial Budgeting
and Appropriations Act, T-AIMD-97-84 (April 23, 1997);
(8) DOD High-Risk Areas: Eliminating Underlying Causes Will
Avoid Billions of Dollars in Waste, T-NSIAD--AIMD-97-143 (May
1, 1997);
(9) Financial Management: The Prompt Payment Act and DOD
Problem Disbursements, AIMD-97-71 (May 23, 1997);
(10) Managing for Results: The Statutory Framework for
Improving Federal Management and Effectiveness, T-GGD--AIMD-97-
144 (June 24, 1997);
(11) Relocation Travel: Numbers and Costs Reported by
Federal Organizations for Fiscal Years 1991 Through 1995, GGD-
97-119 (June 30, 1997);
(12) 2000 Census: Progress Made on Design, but Risks
Remain, GGD-97-142 (July 14, 1997);
(13) Combating Terrorism: Status of DOD Efforts to Protect
Its Force Overseas, NSIAD-97-207 (July 21, 1997);
(14) Defense Computers: DFAS Faces Challenges in Solving
the Year 2000 Problem, AIMD-97-117 (August 11, 1997);
(15) Defense Computers: Issues Confronting DLA in
Addressing Year 2000 Problems, AIMD-97-106 (August 12, 1997);
(16) Defense Computers: Improvements to DOD Systems
Inventory Needed for Year 2000 Effort, AIMD-97-112 (August 13,
1997);
(17) Defense Computers: SSG Needs to Sustain Year 2000
Progress, AIMD-97-120R (August 19, 1997);
(18) Tax Administration: Assessment of IRS' Report on Its
Fiscal Year 1995 Compliance Initiatives, GGD-97-158 (August 27,
1997);
(19) Regulatory Reform: Comments on S. 981--The Regulatory
Improvement Act of 1997, T-GGD--RCED-97-250 (September 12,
1997);
(20) Inventory Management: Vulnerability of Sensitive
Defense Material to Theft, NSIAD-97-175 (September 18, 1997);
(21) Combating Terrorism: Federal Agencies' Efforts to
Implement National Policy and Strategy, NSIAD-97-254 (September
26, 1997);
(22) Defense Computers: LSSC Needs to Confront Significant
Year 2000 Issues, AIMD-97-149 (September 26, 1997);
(23) Regulatory Reform: Agencies' Efforts to Eliminate and
Revise Rules Yield Mixed Results, GGD-98-3 (October 2, 1997);
(24) Federal Ships: Policy Changes in the Disposal of
Surplus Ships, NSIAD-98-17R (October 17, 1997);
(25) Financial Management: Outsourcing of Finance and
Accounting Functions, AIMD--NSIAD-98-43 (October 17, 1997);
(26) Defense IRM: Poor Implementation of Management
Controls Has Put Migration Strategy at Risk, AIMD-98-5 (October
20, 1997);
(27) Defense Computers: Technical Support Is Key to Naval
Supply Year 2000 Success, AIMD-98-7R (October 21, 1997);
(28) Executive Guide: Information Security Management:
Learning From Leading Organizations (Exposure Draft), AIMD-98-
21 (November 1, 1997);
(29) Federal Advisory Committee Act: Overview of Advisory
Committees Since 1993, T-GGD-98-24 (November 5, 1997);
(30) Combating Terrorism: Spending on Governmentwide
Programs Requires Better Management and Coordination, NSIAD-98-
39 (December 1, 1997);
(31) Financial Management: Profile of Financial Personnel
in Large Private Sector Corporations and State Governments,
AIMD-98-34 (January 2, 1998);
(32) Regulatory Reform: Changes Made to Agencies' Rules Are
Not Always Clearly Documented, GGD-98-31 (January 8, 1998);
(33) Defense Computers: Air Force Needs to Strengthen Year
2000 Oversight, AIMD-98-35 (January 16, 1998);
(34) Unfunded Mandates: Reform Act Has Had Little Effect on
Agencies' Rulemaking Actions, GGD-98-30 (February 4, 1998);
(35) Regulatory Reform: Comments on S. 981--The Regulatory
Improvement Act of 1998, T-GGD--RCED-98-95 (February 24, 1998);
(36) IRS Personnel Flexibilities: An Opportunity to Test
New Approaches, T-GGD-98-78 (March 12, 1998);
(37) Nuclear Waste: Understanding of Waste Migration at
Hanford is Inadequate for Key Decisions, RCED-98-80 (March 13,
1998);
(38) 2000 Census: Preparations for Dress Rehearsal Leave
Many Unanswered Questions, GGD-98-74 (March 26, 1998);
(39) Social Security Financing: Implications of Stock
Investing for the Trust Fund, the Federal Budget, and the
Economy, T-AIMD--HEHS-98-152 (April 22, 1998);
(40) Defense Computers: Year 2000 Computer Problems
Threaten DOD Operations, AIMD-98-72 (April 30, 1998);
(41) Year 2000 Computing Crisis: Potential for Widespread
Disruption Calls for Strong Leadership and Partnerships, AIMD-
98-85 (April 30, 1998);
(42) Decennial Census: Overview of Historical Census
Issues, GGD-98-103 (May 1, 1998);
(43) Executive Guide: Information Security Management--
Learning From Leading Organizations, AIMD-98-68 (May 1, 1998);
(44) Air Traffic Control: Weak Computer Security Practices
Jeopardize Flight Safety, AIMD-98-155 (May 18, 1998);
(45) Computer Security: Pervasive, Serious Weaknesses
Jeopardize State Department Operations, AIMD-98-145 (May 18,
1998);
(46) Information Security: Serious Weaknesses Put State
Department and FAA Operations at Risk, T-AIMD-98-170 (May 19,
1998);
(47) Regulatory Reform: Agencies Could Improve Development,
Documentation, and Clarity of Regulatory Economic Analyses,
RCED-98-142 (May 26, 1998);
(48) Defense Computers: Army Needs to Greatly Strengthen
Its Year 2000 Program, AIMD-98-53 (May 29, 1998);
(49) Federal Advisory Committee Act: General Services
Administration's Oversight of Advisory Committees, GGD-98-124
(June 15, 1998);
(50) Grant Programs: Design Features Shape Flexibility,
Accountability, and Performance Information, GGD-98-137 (June
22, 1998);
(51) Defense Computers: Year 2000 Computer Problems Put
Navy Operations at Risk, AIMD-98-150 (June 30, 1998);
(52) Federal Advisory Committee Act: Views of Committee
Members and Agencies on Federal Advisory Committee Issues, GGD-
98-147 (July 9, 1998);
(53) Results Act: Observations on the Office of Personnel
Management's Annual Performance Plan, GGD-98-130 (July 28,
1998);
(54) Decennial Census: Preliminary Observations on the
Results to Date of the Dress Rehearsal and the Census Bureau's
Readiness for 2000, T-GGD-98-178 (July 30, 1998);
(55) Defense Networks: Management Information Shortfalls
Hinder Defense Efforts to Meet DISN Goals, AIMD-98-202 (July
30, 1998);
(56) Federal Rulemaking: Agencies Often Published Final
Actions Without Proposed Rules, GGD-98-126 (August 31, 1998);
(57) The Results Act: Assessment of the Governmentwide
Performance Plan for Fiscal Year 1999, AIMD--GGD-98-159
(September 8, 1998);
(58) Information Security: Strengthened Management Needed
to Protect Critical Federal Operations and Assets, T-AIMD-98-
312 (September 23, 1998);
(59) Chemical Weapons: DOD Does Not Have a Strategy to
Address Low-Level Exposures, NSIAD-98-228 (September 23, 1998);
(60) Information Security: Serious Weaknesses Place
Critical Federal Operations and Assets at Risk, AIMD-98-92
(September 23, 1998);
(61) Acquisition Reform: Multiple-award Contracting at Six
Federal Organizations, NSIAD-98-215 (September 30, 1998);
(62) Federal Surplus Ships: Government Efforts to Address
the Growing Backlog of Ships Awaiting Disposal, NSIAD-99-18
(October 22, 1998);
(63) Decennial Census: Additional Information for Hearing
Record on the Initial Results of the Census Dress Rehearsal,
GGD-99-5R (November 20, 1998);
(64) IRS Systems Security: Although Significant
Improvements Made, Tax Processing Operations and Data Still at
Serious Risk, AIMD-99-38 (December 14, 1998).
VI. Official Communications
During the 105th Congress, a total of 2,295 official
communications were submitted to the Committee. Of these, 1,127
were from the Comptroller General of the United States and
1,168 were from the President of the United States and other
executive departments. The communications included reports to
advise and inform the Congress, required annual or semi-annual
agency budget and activity summaries, and requests for
legislative action. The Committee also received 26 petitions
and memorials.
VII. Legislative Action
The Committee was highly productive in the 105th 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. The following are brief
legislative histories of measures referred to the Committee or
within the jurisdiction of 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 were not
subject to further action. For information not included in this
section please refer to the Committee's Legislative Calendar.
Measures Enacted Into Law
S. 314--Federal Activities Inventory Reform (FAIR) Act (Public Law 105-
270)
This law requires Federal agencies to prepare a list of
activities that are not inherently governmental functions that
are being performed by Federal employees, submit that list to
OMB for review, and make the list publicly available. It also
establishes an ``appeals'' process within each agency to
challenge what is on the list or what is not included on the
list. S. 314 creates a statutory definition--identical to
current regulation--for what is an ``inherently governmental
function'' that must be performed by the government and not the
private sector.
S. 314 was originally introduced by Senator Craig Thomas in
February 1997 as the Freedom from Government Competition Act.
It attempted to put into statute a policy embodied in OMB
Circular A-76 that the Federal Government will rely on the
private sector for goods and services that are not inherently
governmental. The bill was referred to the Subcommittee on the
Oversight of Government Management, Restructuring and the
District of Columbia on March 5, 1997. The Subcommittee held
hearings on June 18, 1997 and March 24, 1998. In order to
favorably report the legislation, significant revisions were
necessary. Chairman Thompson worked with the bill's sponsors,
other Members of the Committee, industry, Federal employee
unions, and the Administration to craft a compromise which
represented a consensus of all interested participants.
The Chairman's substitute amendment emanated from current
administrative policy. OMB Circular A-76 establishes the policy
regarding government employees' performance of activities that
are not inherently governmental functions and sets forth
procedures for determining whether such activities should be
performed under contract with private companies or using
government facilities and personnel. The policy embodied in OMB
Circular A-76, that the Federal Government will rely on the
private sector for goods and services that are not inherently
governmental, is more than 40-years old. However, there
continue to be activities which are not inherently governmental
that the government performs for itself. Therefore, the
Chairman's substitute was intended to establish a process to
evaluate those activities that continue to be performed by
government employees. On July 15, 1998, the Committee ordered
the bill to be favorably reported with Chairman Thompson's
amendment in the nature of a substitute. The Committee filed a
report on July 28, 1998 (S. Rept. 105-269). The Chairman's
substitute amendment was passed by the Senate by unanimous
consent on July 30, 1998. On October 5, 1998, the House passed
S. 314 by voice vote under suspension of the rules. The
President signed the bill on October 8, 1998.
S. 1364--Federal Reports Elimination Act of 1998 (Public Law 105-362)
S. 1364 eliminates or modifies congressionally mandated
Federal agency reports that are redundant, obsolete, or
otherwise unnecessary on the recommendation of the
Administration.
The bill was introduced on November 4, 1997 by Senators
McCain and Levin. In 1995, Congress enacted the Federal Reports
Elimination and Sunset Act of 1995 (P.L. 104-66), also
sponsored by Senators McCain and Levin. That act contained
three major provisions: One provision eliminated or modified
approximately 200 reporting requirements imposed on Federal
agencies in law by Congress; the second required the President
to identify in the next available budget message additional
congressionally mandated reporting requirements that could and
should be eliminated; and the third provision terminates all
annual or routine congressionally mandated reporting
requirements 4 years after enactment of the 1995 Act, or
December 21, 1999. As a result of this legislation, the
President, in the FY 1997 Budget, provided Congress with a list
of 400 reports recommended for elimination or modification.
That list of reports was used as the basis for S. 1364.
S. 1364 eliminates or modifies approximately 187
congressionally mandated reports. The reports contained in the
bill were distilled from the list of 400 recommended reports
included on the Administration's list pursuant to the
requirements of the 1995 Act. The Committee circulated the
Administration's list to the chairmen and ranking minority
members of the relevant authorizing committees for comment. As
a result of the responses, which were incorporated into the
bill for introduction, the list of 400 reports was ultimately
reduced to 187 reports. The Committee also worked closely with
the Office of Information and Regulatory Affairs of the Office
of Management and Budget to clarify citations and any
discrepancies between the bill and the recommendations of the
Administration.
On March 10, 1998, the Committee ordered the bill favorably
reported with amendments. A written report was filed on May 11,
1998 (S. Rept. 105-187). The bill passed the Senate with
amendments by unanimous consent on June 10, 1998, and passed
the House with amendment under suspension of the rules on
October 13, 1998. On October 21, 1998, the Senate concurred in
the House amendment with an amendment by unanimous consent, and
the House agreed to the Senate amendment. The President signed
the bill on November 10, 1998.
S. 1397--Centennial of Flight Commemoration Act (Public Law 105-389)
This bill establishes a commission to assist in the
commemoration of the centennial of powered flight and the
achievement of the Wright brothers.
S. 1397 was introduced in the Senate by Senator Helms on
November 7, 1997, for himself and Senators Glenn, Dewine, and
Faircloth. Rep. Hall introduced a similar bill, H.R. 2305, in
the House of Representatives on July 30, 1997, and it was
referred to the House Government Reform and Oversight
Subcommittee on Civil Service. The provisions of H.R. 2305 also
were offered as an amendment to H.R. 4057, the Airport
Improvement Program Reauthorization Act of 1998, which was
ordered to be reported to the House from the House Committee on
Transportation and Infrastructure on July 20, 1998. The Senate
passed its own version of H.R. 4057, but the conferees never
reached agreement.
The Committee considered S. 1397 on July 15, 1998. The
Committee unanimously adopted, by voice vote, Senator Glenn's
amendment in the nature of a substitute. The Committee voted by
voice vote to order the bill reported as amended. Chairman
Thompson and Senators Domenici and Nickles stated that they
opposed the motion to report S. 1397. Nonetheless, the
Committee filed its report on August 25, 1998 (S. Rept. 105-
294). On September 22, 1998, the Committee substitute was
amended on the Senate floor and passed, as amended, by the
Senate by unanimous consent. The House passed the bill by voice
vote under suspension of the rules on October 14, 1998, and the
bill was signed by the President on November 13, 1998.
S. 2161--Regulatory Right-to-Know (Public Law 105-277)
This bill provides government-wide accounting of regulatory
costs and benefits by requiring the President to submit to
Congress an accounting statement that estimates the costs and
corresponding benefits of Federal regulatory programs and
program elements.
On June 11, 1998, Chairman Thompson introduced S. 2161, the
Regulatory Right-to-Know Act of 1998, with Senator Breaux. On
July 29, 1998, Chairman Thompson offered on the Senate floor
many of the provisions of S. 2161 as an amendment to S. 2312,
the Treasury and General Government Appropriations bill for
Fiscal Year 1999. On October 19, 1998, the Thompson regulatory
accounting amendment was adopted in modified form as part of
H.R. 4328, the Omnibus Consolidated and Emergency Supplemental
Appropriations Act for Fiscal Year 1999, which was signed into
law on October 21, 1998.
S. 2176--Federal Vacancies Reform Act of 1998 (Public Law 105-277)
The purpose of this legislation is to restore the Senate's
advice and consent prerogative, to make the Vacancies Act
uniform in its application, and to provide for its effective
enforcement. The legislation comprehensively addresses the
eligibility and length of service of acting officials to serve
in Executive Branch positions for a period of time without
their appointments having received the advice and consent of
the Senate and provides an enforcement mechanism to ensure
compliance with acting officer qualifications and time limits.
On June 16, 1998, S. 2176, the Federal Vacancies Reform Act
of 1998, was introduced in the Senate by Chairman Thompson and
Senators Byrd, Thurmond, Lott, Roth, Cochran, and Hatch. On
June 17, 1998, the Committee ordered the bill favorably
reported with amendments, by a vote of 9-1. The Committee filed
a report on July 15, 1998 (S. Rept. 105-250). With further
modifications, the legislation was included as part of H.R.
4328, the Omnibus Consolidated and Emergency Supplemental
Appropriations Act for Fiscal Year 1999 (Public Law 105-277),
which was signed into law on October 21, 1998.
International Postal Issues (Public Law 105-277)
With the support of Chairman Thompson and International
Security, Proliferation, and Federal Services Subcommittee
Chairman Cochran, provisions affecting international postal
services were included in the Omnibus Consolidated and
Emergency Supplemental Appropriations Act for Fiscal Year 1999
(Public Law 105-277).
The first provision transfers representational authority
for U.S. interests before international postal forums, such as
the Universal Postal Union, from the U.S. Postal Service to the
U.S. State Department. International postal services are not
covered by the current U.S. mail monopoly and many private
sector carriers compete with the Postal Service in providing
international mail and parcel services. Private sector carriers
had charged that the representation at international forums,
such as the Universal Postal Union, should be accorded a
neutral U.S. governmental entity, such as the State Department,
to ensure that private carrier interests, as well as those of
the U.S. Postal Service, were represented.
The second provision also addresses international postal
services. In order to prevent monopoly revenues from cross-
subsidizing competitive international postal services, the
legislation grants independent postal rate commissions the
authority to review the costs, revenues and volume for each
international mail product or service provided by the Postal
Service in order to ensure that monopoly revenues are not
cross-subsidizing international mail services.
Federal Procurement Issues
Small Business Reauthorization Act of 1997 (Public Law 105-135)
With the support of Chairman Thompson and Senator Glenn
and Senators Thurmond and Levin of the Committee on Armed
Services, language was enacted as part of the Small Business
Reauthorization Act of 1997 to foster the participation of
small businesses in Federal contracting by facilitating
competition by and among small businesses and prohibiting the
unnecessary and unjustified bundling of Federal contracts which
could preclude small business participation as contractors.
National Defense Authorization Act for Fiscal Years 1998 and 1999
(Public Law 105-85) and National Defense Authorization Act for
Fiscal Year 1999 (Public Law 105-261)
As part of both these laws, language offered by Chairman
Thompson and Senator Glenn was enacted to further streamline
and simplify the government-wide procurement system, including
provisions relating to permitting electronic purchasing,
limiting executive compensation, and clarifying spare parts
pricing.
Government Paperwork Elimination Act (Public Law 105-277)
The Committee worked with the Committee on Commerce,
Science and Transportation to develop consensus language
affecting government information policy which was enacted as
part of the Omnibus Consolidated and Emergency Supplemental
Appropriations Act for Fiscal Year 1999 (Public Law 105-277).
The Government Paperwork Elimination Act takes advantage of the
advances in modern technology to lessen the paperwork burdens
on those who deal with the Federal Government. This is
accomplished by requiring OMB, through its existing
responsibilities under current law, to develop policies to
promote the use of alternative information technologies so that
individuals who deal with the Federal Government can reduce
their cumulative burden of meeting the Federal Government's
information demands.
Year 2000 Information and Readiness Disclosure Act (Public Law 105-271)
This law encourages the disclosure and exchange of
information about computer processing problems, solutions, and
tests in connection with the transition to the year 2000 and
provides for the establishment of working groups as a part of
the President's Year 2000 Council. Chairman Thompson developed
language which was enacted as part of this law to mitigate
against false and inaccurate year 2000 solicitations while
promoting the open sharing of information.
H.R. 930--Travel and Transportation Reform Act (Public Law 105-264)
This law requires Federal employees to use Federal travel
charge cards for payments of expenses of official government
travel, establishes requirements for prepayment audits of
Federal agency transportation expenses, authorizes
reimbursement of Federal agency employees for taxes incurred on
travel transportation reimbursements, and authorizes test
programs for the payment of Federal employee travel expenses
and relocation expenses.
H.R. 930 was introduced in the House of Representatives by
Rep. Horn on March 5, 1997. It passed the House of
Representatives on April 16, 1997, by voice vote and was
received by the Senate and referred to the Committee. The
Committee considered H.R. 930 on June 17, 1998, and ordered it
favorably reported, with amendments offered by Chairman
Thompson, by voice vote. The Committee filed its report on
August 25, 1998 (S. Rept. 105-295). On September 1, 1998, the
Senate passed H.R. 930 with amendments by unanimous consent.
The House agreed to the Senate amendments on October 5, 1998,
and it was signed by the President on October 18, 1998.
H.R. 1316--To amend chapter 87 of Title 5, United States Code, with
respect to the order of precedence to be applied in the payment
of life insurance benefits (Public Law 105-205)
H.R. 1316 amends chapter 87 of title 5, United States Code,
and directs the Office of Personnel Management to obey certain
domestic relations orders when paying the proceeds of life
insurance policies under the Federal Employees Group Life
Insurance program. It also permits courts to direct the
assignment of such policies to individuals specified in
domestic relations orders.
H.R. 1316 was introduced in the House by Rep. Collins on
April 14, 1997. The House Committee on Government Reform and
Oversight approved the legislation, as amended, on June 11,
1997. It was passed by the House on June 24, 1997, on the
Corrections Calendar. The legislation was received in the
Senate on June 25, 1997 and referred to the Committee on
Governmental Affairs. On July 8, 1997, the legislation was
referred to the Subcommittee on International Security,
Proliferation, and Federal Services. No hearings were held. On
November 5, 1997, the legislation was approved by the Committee
without amendment. On June 18, 1998, the legislation passed the
Senate under unanimous consent. On July 22, 1998, the President
signed the bill into law.
H.R. 1836--The Federal Employees Health Care Protection Act of 1998
(Public Law 105-266)
This legislation amends chapter 89 of title 5, United
States Code, to improve the administration of the Federal
Employees Health Benefits Program. Specifically, the bill
allows the government to impose sanctions on health care
providers or bars them from selling coverage to any government
agency; encourages full disclosure in discounted rate
agreements; and establishes standards for readmitting
discontinued plans and for crediting of associated contingency
reserves.
H.R. 1836 was introduced by Rep. Burton on June 10, 1997.
The House Committee on Government Reform and Oversight approved
the legislation on October 31, 1997, and the House passed H.R.
1836 by voice vote, under suspension of the rules, on November
4, 1997.
The legislation was received in the Senate and referred to
the Committee on November 5, 1997. On November 11, the bill was
referred to the Subcommittee on International Security,
Proliferation, and Federal Services. On March 31, 1998, a
majority (eight members) of the Subcommittee approved reporting
favorably H.R. 1836 to the full Committee. No hearings were
held. On April 1, 1998, the Committee favorably considered the
legislation and ordered it to be reported with an amendment.
The report (S. Rept. 105-257) was filed in the Senate by
Chairman Thompson with amendments on July 21, 1998. H.R. 1836,
as amended, passed the Senate by unanimous consent on September
30, 1998. On October 5, the House suspended the rules and
agreed to the Senate amendment by voice vote. The bill was
signed into law by the President on October 19, 1998.
H.R. 2015--Balanced Budget Act of 1997: Budget Reconciliation (Public
Law 105-33)
On June 17, 1997, the Committee approved a Fiscal Year 1998
budget reconciliation measure covering spending and saving
proposals. The FY 1998 Budget Resolution instructed the
Committee to develop recommendations for deficit reduction in
the amount of $5.5 billion. These proposals reflected
assumptions included in the FY 1998 congressional budget
resolution and included deficit reduction provisions pertaining
to the Federal civil service retirement and health insurance
programs.
Included in this deficit reduction package were provisions
to: (a) increase postal and nonpostal employee contributions to
the Federal retirement systems by 0.5 percent of pay, to be
phased in beginning in 1999 through Fiscal Year 2002; (b)
increase nonpostal agency payments to the Federal retirement
trust fund on behalf of workers in the Civil Service Retirement
System; (c) establish a new formula governing health insurance
premiums for Federal employees and annuitants under the Federal
Employees' Health Benefits Program. (The new formula is based
on the average total premium cost of all insurance plans in
FEHPB, weighted by the number of participants in each plan, and
is expected to reduce the government's share of FEHBP costs by
approximately $28 million over 5 years. This revision shielded
participants from an expected increase in premiums due to the
expiration of the previous formula); and (d) shift workers'
compensation costs of the former Post Office Department from
the Federal Government to the Postal Service. The provisions
approved by the Committee were similar to provisions included
in a House bill concerning the FY 1998 Budget Reconciliation.
Not included in this agreement was the proposal to continue
the 3-month cost-of-living adjustments (COLA) delay for Federal
retirees, as proposed in President Clinton's FY 1998 budget.
These measures were included in the conference report to
H.R. 2015 (H. Rept. 105-217) for the Balanced Budget Act of
1997 which was signed into law by the President on August 5,
1997.
H.R. 2675--The Federal Employees Life Insurance Improvement Act (Public
Law 105-311)
H.R. 2675 is designed to improve the structure and
administration of the Federal Employees Group Life Insurance
Program--the life insurance program the Federal Government
provides for its civilian employees and retirees under chapter
87 of title 5, United States Code. Rep. Mica introduced H.R.
2675 in the House on October 21, 1997. The bill was referred to
the Committee on Government Reform and Oversight, which ordered
the bill reported on October 31, 1997. H.R. 2675 was approved
by the full House under suspension of the rules by voice vote
on November 4, 1997.
H.R. 2675 was received in the Senate and referred to the
Committee on Governmental Affairs on November 5, 1997. On June
17, 1998, the Committee ordered the bill reported favorably
with an amendment in the nature of a substitute (S. Rept. 105-
337). No hearings were held. On September 21, 1998, Chairman
Thompson reported the bill to the Senate with an amendment in
the nature of a substitute. The bill, as amended, was passed by
the Senate by unanimous consent. The House suspended the rules
and agreed to the Senate amendments by voice vote on October 8,
1998. The legislation was signed by the President on October
30, 1998.
H.R. 3096--A bill to correct a provision relating to termination of
benefits for convicted persons (Public Law 105-247)
H.R. 3096 makes a technical correction in the Federal
Employees' Compensation Act, the workers' compensation statute
covering Federal employees. The bill ensures that persons
convicted of fraud in the application or receipt of workers'
compensation benefits lose their entitlement to receive such
benefits.
The legislation was introduced by Rep. Greenwood on January
27, 1998. On March 11, 1998, the Committee on Education and the
Workforce approved H.R. 3096 by voice vote and ordered the bill
favorably reported. On March 24, 1998, the bill was passed by
the House by a roll call vote of 408-0.
On March 25, 1998 the bill was received in the Senate and
referred to the Committee on Governmental Affairs. On April 20,
1998, the bill was referred to the Subcommittee on
International Security, Proliferation, and Federal Services. On
March 8, 1998, a majority (nine members) of the Subcommittee
Members approved reporting favorably H.R. 3096 to the full
Committee. No hearings were held. On June 17, 1998, the
Committee ordered to be reported H.R. 3096 without amendment,
and Chairman Thompson favorably reported the bill to the Senate
on August 25, 1998 (S. Rept. 105-296). H.R. 3096 passed the
Senate by unanimous consent on September 28, 1998, and was
signed into law by the President on October 9, 1998.
Postal Naming Bills
S. 916, a bill designating a U.S. Post Office building in
Taylorsville, Mississippi as the ``Blaine H. Eaton Post Office
Building'' (Public Law 105-161).
S. 985, a bill designating a U.S. Post Office in Paterson,
New Jersey as the ``Larry Doby Post Office'' (Public Law 105-
162).
H.R. 282, a bill designating a U.S. Post Office building in
New York, New York, as the ``Oscar Garcia Rivera Post Office
Building'' (Public Law 105-87).
H.R. 499, a bill designating the facility of the U.S. Post
Office in San Antonio, Texas as the ``Frank M. Tejeda Post
Office Building'' (Public Law 105-4).
H.R. 681, a bill designating a U.S. Post Office building in
Glendale, California as the ``Carlos J. Moorhead Post Office
Building'' (Public Law 105-88).
H.R. 1057, a bill designating a U.S. Post Office building
in Indianapolis, Indiana as the ``Andrew Jacobs, Jr. Post
Office Building'' (Public Law 105-90).
H.R. 1058, a bill designating the facility of the U.S.
Postal Service in Terre Haute, Indiana as the ``John T. Myers
Post Office Building'' (Public Law 105-91).
H.R. 1254, (see also S. 595) a bill designating a U.S. Post
Office building in Springfield, Missouri as the ``John N.
Griesemer Post Office Building'' (Public Law 105-131).
H.R. 2013, a bill designating the facility of the U.S.
Postal Service in South Kingstown, Rhode Island, as the ``David
B. Champagne Post Office Building.''
H.R. 2129, a bill designating a U.S. Post Office in
Steubenville, Ohio as the ``Douglas Applegate Post Office''
(Public Law 105-97).
H.R. 2564, a bill designating a U.S. Post Office in
Pottsville, Pennsylvania as the ``Peter J. McCloskey Postal
Facility'' (Public Law 105-99).
The following postal naming bills were enacted as part of the Omnibus
Consolidated and Emergency Supplemental Appropriations Act for
Fiscal Year 1999 (Public Law 105-277):
S. 2310, a bill designating a U.S. Post Office in East
Northport, New York as the ``Jerome Anthony Ambro, Jr. Post
Office Building.''
S. 2370, a bill designating the facility of the U.S. Postal
Service in Thomasville, Georgia as the ``Lieutenant Henry O.
Flipper Station.''
S. 2404, a bill establishing designations for five U.S.
Postal Service buildings in Coconut Grove, Opa Locka, Carol
City, and Miami, Florida.
H.R. 2623, a bill designating a U.S. Post Office in Kiln,
Mississippi as the ``Ray J. Favre Post Office Building.''
H.R. 2766, a bill designating the facility of the U.S. Post
Office in Painesville, Ohio as the ``Karl Bernal Post Office
Building.''
H.R. 2773, a bill designating the facility of the U.S.
Postal Service in Chicago, Illinois as the ``Daniel J. Doffyn
Post Office Building.''
H.R. 2798, a bill redesignating the building of the U.S.
Postal Service in Chicago, Illinois as the ``Nancy B. Jefferson
Post Office Building.''
H.R. 2799, a bill redesignating the building of the U.S.
Postal Service in Chicago, Illinois as the ``Reverend Milton R.
Brunson Post Office Building.''
H.R. 2836, (see also S. 1640) a bill designating the
building of the U.S. Postal Service in St. Paul, Minnesota as
the ``Eugene J. McCarthy Post Office Building.''
H.R. 3120, a bill designating the U.S. Post Office in
Provo, Utah as the ``Howard C. Nielson Post Office Building.''
H.R. 3630, a bill redesignating the facility of the U.S.
Postal Service in Albuquerque, New Mexico as the ``Steven
Schiff Post Office.''
H.R. 3808, a bill designating a U.S. Post Office in
Plymouth, Michigan as the ``Carl D. Pursell Post Office.''
H.R. 3810, a bill designating a U.S. Post Office in
Garwood, New Jersey as the ``James T. Leonard, Sr. Post
Office.''
H.R. 3939, a bill designating a U.S. Postal Service
building in Philadelphia, Pennsylvania as the ``Edgar C.
Campbell, Sr. Post Office Building.''
H.R. 3999, a bill designating a U.S. Postal Service
building in Philadelphia, Pennsylvania as the David P.
Richardson, Jr., Post Office Building.''
H.R. 4516, a bill designating a U.S. Postal building in
Oxon Hill, Maryland as the ``Jacob Joseph Chestnut Post Office
Building.''
Measure Favorably Reported by Committee and Passed by the Senate
S. 1642--Federal Financial Assistance Management Improvement Act of
1998
This bill improves the effectiveness and performance of
Federal financial assistance programs, simplifies Federal
financial assistance application and reporting requirements,
and improves the delivery of services to the public.
On February 12, 1998, S. 1642 was introduced by Senator
Glenn along with Chairman Thompson and Senators Levin,
Lieberman, and Akaka. While still in draft form, the
legislation was endorsed by the National Governors'
Association, the National Association of Counties, the National
Conference of State Legislatures, the National League of
Cities, and the Council of State Governments. Governor George
Voinovich (R-OH) and Governor Ben Nelson (D-NE), representing
the National Governors' Association, testified in favor of the
legislation during the Committee's hearing on regulatory reform
on February 24, 1998. (S. Hrg. 105-486) The Committee ordered
S. 1642 reported favorably without amendment on April 1, 1998.
A written report was filed on May 22, 1998 (S. Rept. 105-194).
On October 12, 1998, the bill passed the Senate with an
amendment by unanimous consent.
Selected Measures Considered by Committee
S. 207--Corporate Subsidy Reform Commission Act of 1997
The purpose of S. 207 is to review, reform, and terminate
unnecessary and inequitable Federal subsidies. The bill creates
a commission intended to fairly and independently review
corporate subsidies and make recommendations to the President
and the Congress for the retention, reform or termination of
such subsidies.
On January 28, 1997, S. 207 was introduced in the Senate by
Senator McCain for himself, Chairman Thompson, and Senators
Kerry, Feingold, Kennedy, Coats, Glenn, Lieberman, and
Brownback. On February 13, 1997, the Committee held a hearing
on S. 207. (S. Hrg. 105-209) On May 22, 1997, the Committee
reported the bill favorably with amendments. The bill was then
reported favorably to the Senate by Chairman Thompson with
amendments and an amendment to the title (S. Rept. 105-107).
S. 261--Biennial Budgeting and Appropriations Act
S. 261 provides for a biennial budget and appropriations
process and to enhance oversight and the performance of the
Federal Government.
S. 261 was introduced in the Senate on February 4, 1997, by
Senator Domenici and 24 other Senators, including Chairman
Thompson and Senators Ford, Snowe, Thomas, Roth, Moynihan,
Nickles, McCain, and Collins. On April 23, 1997, the Committee
held a hearing on the bill. (S. Hrg. 105-138) On May 22, 1997,
the Committee ordered S. 261 to be reported favorably with an
amendment in the nature of a substitute. On September 4, 1997,
Chairman Thompson reported to the Senate S. 261 with an
amendment in the nature of a substitute (S. Rept. 105-72).
S. 389--Mandates Information Act of 1997
S. 389 amends the Congressional Budget Act of 1974 to
require the Director of the Congressional Budget Office (CBO),
in preparing estimates of the direct costs of all Federal
private sector mandates, to estimate also the indirect impact
of such mandates on consumers, workers, and small businesses,
including any disproportionate impact in particular regions or
industries. It also subjects to a point of order any
legislation for which the CBO Director is unable to determine
the economic impact of a Federal mandate.
Senator Abraham introduced S. 389 on March 3, 1997. The
Committee held hearings on June 3, 1998 (S. Hrg. 105-664) and,
on July 15, 1998, ordered the bill to be reported favorably
with amendments. On September 2, 1998, a written report, with
minority views, was filed (S. Rept. 105-299).
S. 712--Government Secrecy Act of 1997
In addition to providing for the first time a statutory
basis for the national security information classification and
declassification system, S. 712 requires agencies to balance
the national security interests of the United States with the
public interest in disclosure of information prior to
classifying or declassifying information.
Senator Moynihan and Senator Helms introduced S. 712 on May
7, 1997, the same day the Committee held a hearing on the
recommendations of the Commission on Protecting and Reducing
Government Secrecy, on which the legislation was based. (S.
Hrg. 105-84) The Committee held a hearing on S. 712 on March
25, 1998 (S. Hrg. 105-525). On June 17, 1998, the Committee
considered the legislation at a business meeting, approving by
unanimous consent an amendment in the nature of a substitute
and favorably reporting the bill, as amended, by unanimous
consent. The Committee's report was filed on July 22, 1998 (S.
Rept. 105-258). Thereafter, negotiations between the bill's
sponsors, the Committee, and the Administration continued.
S. 981--Regulatory Improvement Act of 1998
The bill requires agencies to conduct a regulatory analysis
before issuing a major rule. The regulatory analysis includes:
(1) a cost-benefit analysis comparing the costs and benefits of
regulatory alternatives; (2) a risk assessment, if the rule
addressed an environmental, health or safety risk; and (3) an
analysis of any substitution risks resulting from the rule. The
regulatory analysis is subject to independent peer review. S.
981 also requires a study using comparative risk analysis to
compare various environmental, health and safety risks and to
inform agency planning. Finally, the bill establishes a
statutory requirement for the Office of Information and
Regulatory Affairs in OMB to systematically review agencies'
regulatory proposals and to implement the legislation.
S. 981 was introduced on June 27, 1997 by Senator Levin for
himself, Chairman Thompson and Senators Glenn, Abraham, Robb,
Roth, Rockefeller, and Stevens. The Committee held hearings on
the bill on September 12, 1997, (S. Hrg. 105-335) and February
24, 1998 (S. Hrg. 105-486). On March 10, 1998, the Committee
ordered S. 981 reported favorably with an amendment in the
nature of a substitute by a vote of 8-4. A written report,
including Minority views, was filed by the Committee on May 11,
1998 (S. Rept. 105-188).
S. 2228--Advisory Committee Termination and Streamlining Act of 1998
S. 2228 enhances the efficient use of government resources
supporting Federal advisory committees and promotes
congressional oversight by requiring periodic congressional
reauthorization of statutorily mandated advisory committees. In
fiscal year 1997, there were 963 advisory committees assisting
agencies of the Executive Branch. Of these, 422 were mandated
by law. In fiscal year 1997, it cost the government over $178
million to operate the 963 advisory committees.
The bill was introduced on June 25, 1998, by six Members of
the Committee, Chairman Thompson, Senators Glenn, Cochran,
Levin, Brownback, and Lieberman. On July 15, 1998, the
legislation was ordered reported favorably without amendment.
On September 8, 1998, a written report was filed by the
Committee (S. Rept. 105-309).
VIII. Presidential Nominations
During the 105th Congress, the Committee received a total
of 45 Presidential nominations. The following 29 were favorably
reported by the Committee and confirmed by the Senate:
David J. Barram, of California, to be Administrator of
General Services. (Hearing held February 25, 1997)
Patricia Broderick, of the District of Columbia, to be
an Associate Judge of the Superior Court of the District of
Columbia. (Hearing held September 3, 1998)
Mary Ann Gooden Terrell, of the District of Columbia,
to be an Associate Judge of the Superior Court of the District
of Columbia. (Hearing held October 3, 1996)
James H. Atkins, of Arkansas, to be a Member of the
Federal Retirement Thrift Investment Board.
Janice R. Lachance, of Virginia, to be Deputy Director
of the Office of Personnel Management. (Hearing held July 28,
1997)
George A. Omas, of Mississippi, to be a Commissioner of
the Postal Rate Commission. (Hearing held July 28, 1997)
Virginia Dale Cabaniss, of Virginia, to be a Member of
the Federal Labor Relations Authority. (Hearing held November
4, 1997)
John MacLaughlin Campbell, of the District of Columbia,
to be Associate Judge of the Superior Court of the District of
Columbia. (Hearing held October 30, 1997)
Anita Marie Josey, of the District of Columbia, to be
Associate Judge of the Superior Court of the District of
Columbia. (Hearing held October 30, 1997)
Ernesta Ballard, of Alaska, to be a Governor of the
U.S. Postal Service. (Hearing held November 4, 1997)
Susanne T. Marshall, of Virginia, to be a Member of the
Merit Systems Protection Board. (Hearing held November 4, 1997)
Elaine D. Kaplan, of the District of Columbia, to be
Special Counsel in the Office of Special Counsel. (Hearing held
March 30, 1998)
Melvin Randolph Wright, of the District of Columbia, to
be Associate Judge of the Superior Court of the District of
Columbia. (Hearing held April 1, 1998)
Ruth Y. Goldway, of California, to be a Commissioner of
the Postal Rate Commission. (Hearing held March 30, 1998)
Deidre A. Lee, of Oklahoma, to be Administrator of the
Office of Federal Procurement Policy for the Office of
Management and Budget. (Hearing held April 22, 1998)
Neal E. Kravitz, of the District of Columbia, to be an
Associate Judge of the Superior Court of the District of
Columbia. (Hearing held September 3, 1998)
Natalia Combs Greene, of the District of Columbia, to
be an Associate Judge of the Superior Court of the District of
Columbia. (Hearing held September 3, 1998)
Jacob J. Lew, of New York, to be Director of the Office
of Management and Budget. (Hearing held June 22, 1998)
Kenneth Prewitt, of New York, to be Director, Bureau of
the Census. (Hearing held September 17, 1998)
Sylvia Mathews, of West Virginia, to be Deputy Director
of the Office of Management and Budget. (Hearing held October
6, 1998)
Robert M. (Mike) Walker, of Tennessee, to be Deputy
Director of the Federal Emergency Management Agency. (Hearing
held September 17, 1998)
Gregory H. Friedman, of Maryland, to be Inspector
General of the Department of Energy. Hearing held by Energy and
Natural Resources Committee September 18, 1998.
David C. Williams, of Maryland, to be Inspector
General, Department of Treasury. (Hearing held July 30, 1998)
John U. Sepulveda, of New York, to be Deputy Director
of the Office of Personnel Management. (Hearing held October 2,
1998)
Joseph Swerdzewski, of Colorado, to be General Counsel
of the Federal Labor Relations Authority. (Hearing held October
2, 1998)
Eljay Bowron, of Michigan, to be Inspector General,
Department of the Interior. Hearing held by Energy and Natural
Resources Committee October 1, 1998.
Dana Bruce Covington, Sr., of Mississippi, to be a
Commissioner of the Postal Rate Commission. (Hearing held
October 7, 1998)
Edward Jay Gleiman, of Maryland, to be a Commissioner
of the Postal Rate Commission. (Hearing held October 7, 1998)
David M. Walker, of Georgia, to be Comptroller General
of the United States. (Hearing held October 7, 1998)
There were two nominations in which the Committee was
discharged with the concurrence of the Committee and the
nominations confirmed by the Senate. They are as follows:
Janice R. Lachance, of Virginia, to be Director of the
Office of Personnel Management. (Hearing held July 28, 1997)
Nikki Tinsley, of Maryland, to be Inspector General for
the Environmental Protection Agency. Hearing held by
Environment and Public Works Committee July 15, 1998.
Eight nominations were not acted upon by the Committee
because the Board for which they were nominated was slated for
termination. The White House, subsequent to the adjournment of
the first session of Congress, decided to move forward
nevertheless on the nominations and made recess appointments.
They are as follows:
Leo K. Goto, of Colorado, to be a Member of the Board
of Directors of the Civil Liberties Public Education Fund.
Don T. Nakanishi, of California, to be a Member of the
Board of Directors of the Civil Liberties Public Education
Fund.
Peggy A. Nagae, of Oregon, to be a Member of the Board
of Directors of the Civil Liberties Public Education Fund.
Dale Minami, of California, to be a Member of the Board
of Directors of the Civil Liberties Public Education Fund.
Yeiichi Kuwayama, of the District of Columbia, to be a
Member of the Board of Directors of the Civil Liberties Public
Education Fund.
Elsa H. Kudo, of Hawaii, to be a Member of the Board of
Directors of the Civil Liberties Public Education Fund.
Robert F. Drinan, of Massachusetts, to be a Member of
the Board of Directors of the Civil Liberties Public Education
Fund.
Susan Hayase, of California, to be a Member of the
Board of Directors of the Civil Liberties Public Education
Fund.
Another nomination was not acted upon by the Senate and was
recessed appointed, as follows:
James B. King, of Massachusetts, to be Director of the
Office of Personnel Management (Mr. King was nominated for a
second term as Director of OPM on March 6, 1997, two weeks
before the Senate's spring recess. His original term of 4 years
was to expire on April 2, 1997. Senator Cochran scheduled a
hearing on this nomination for April 7, 1997, the Tuesday
immediately following the recess. Despite the scheduling of
this nomination hearing and the Committee's request to the
White House that it follow the regular confirmation process,
the President gave Mr. King a recess appointment on April 6,
1997. At the hearing the next day (April 7, 1997), Senator
Cochran expressed Chairman Thompson's view that the Committee
would take no further action on the nomination for the
foreseeable future).
One nomination was favorably reported by the Committee, not
confirmed by the Senate and recess appointed with the
concurrence of the Committee. It is as follows:
G. Edward DeSeve, of Pennsylvania, to be Deputy
Director for Management of the Office of Management and Budget.
(Hearing held April 22, 1998).
Three nominations failed confirmation under paragraph 6 of
rule XXXI of the Standing Rules of the Senate, as follows:
Denis J. Hauptly, of Minnesota, to be Chairman of the
Special Panel on Appeals.
Emilio W. Cividanes, of the District of Columbia, to be
an Associate Judge of the District of Columbia Court of
Appeals.
John F. Walsh, of Connecticut, to be Governor of the
U.S. Postal Service.
One nomination was withdrawn by the White House, as
follows:
James Hudson Bailey, of Wisconsin, to be Deputy
Director of the Federal Emergency Management Agency.
IX. ACTIVITIES OF THE SUBCOMMITTEES
INTERNATIONAL SECURITY, PROLIFERATION, AND FEDERAL SERVICES
SUBCOMMITTEE
Chairman: Thad Cochran
Ranking Minority Member: Carl Levin
I. Hearings
The Subcommittee on International Security, Proliferation,
and Federal Services held the following hearings during the
105th Congress:
The Future of Nuclear Deterrence (February 12, 1997)
The Subcommittee explored the future role of nuclear
weapons in America's national security strategy.
Witnesses: Hon. Walter B. Slocombe, Under Secretary of
Defense for Policy, DOD; Gen. Andrew J. Goodpaster, USA (Ret.),
Co-Chair, The Atlantic Council of the United States; and Hon.
Richard Perle, Resident Fellow, American Enterprise Institute.
National Missile Defense and Prospects for U.S.-Russian ABM Treaty
Accommodation (March 13, 1997)
The Subcommittee reviewed a new study by the National
Institute for Public Policy regarding the potential for U.S.-
Russian cooperation on missile defense and the ABM treaty.
Witnesses: Ambassador Max Kampelman, Vice-Chairman, United
States Institute of Peace; Dr. Keith Payne, President, National
Institute for Public Policy; and Dr. Andrei Kortunov,
President, Moscow Public Science Foundation.
Proliferation: Chinese Case Studies (April 10, 1997)
The Subcommittee examined cases of Chinese weapons
proliferation, including weapons of mass destruction components
and technologies, missile delivery systems, advanced
conventional munitions, and related technologies.
Witnesses: Robert Einhorn, Deputy Assistant Secretary for
Nonproliferation, Bureau of Political-Military Affairs,
Department of State; Ambassador James Lilley, Director,
Institute for Global Chinese Affairs of the University of
Maryland; and Gary Milhollin, Director, Wisconsin Project on
Nuclear Arms Control.
Proliferation: Chinese Case Studies, Part II (April 17, 1997)
The Subcommittee held a closed hearing as a follow-up to
its April 10, 1997 hearing on Chinese proliferation.
Witness: Dr. Gordon Oehler, Special Assistant to the
Director of Central Intelligence for Nonproliferation, and
Director, DCI's Nonproliferation Center.
National Missile Defense and the ABM Treaty (May 1, 1997)
The Subcommittee examined the relationship between the
Administration's proposed ``3+3'' National Missile Defense plan
and the ABM Treaty.
Witness: John D. Holum, Director, Arms Control and
Disarmament Agency.
Proliferation: Russian Case Studies (June 5, 1997)
The Subcommittee explored cases of Russian weapons
proliferation, focusing on Russia's exports of weapons of mass
destruction components and technologies and missile delivery
systems to various countries, including Iran, Iraq, and India.
Witnesses: Robert Einhorn, Deputy Assistant Secretary for
Nonproliferation, Bureau of Political-Military Affairs,
Department of State; Dr. William C. Potter, Director, Center
for Nonproliferation Studies, Monterey Institute for
International Studies; and Dr. Richard H. Speier, Independent
Consultant.
Proliferation and U.S. Export Controls (June 11, 1997)
The Subcommittee examined the role of the United States in
assisting such countries as Russia and China to develop weapons
of mass destruction and their delivery systems through the
transfer of dual-use items, focusing particularly on the
administration's policy of loosening export control
restrictions on supercomputers.
Witnesses: William Reinsch, Under Secretary for Export
Administration, Department of Commerce; Dr. Mitchell
Wallerstein, Deputy Assistant Secretary for
Counterproliferation, Department of Defense; Dr. Stephen Bryen,
President, Delta Tech; and Dr. William Schneider, Fellow,
Hudson Institute.
The Compliance Review Process and Missile Defense (July 21, 1997)
The Subcommittee examined the process by which the United
States determines whether its missile defense systems comply
with the obligations of international treaties.
Witness: Dr. Kent Stansberry, Deputy Director, Arms Control
Implementation and Compliance, Office of the Secretary of
Defense (Acquisition and Technology).
Missile Proliferation in the Information Age (September 22, 1997)
The Subcommittee examined the widespread availability and
increasing accessibility of information and materials that
support the development of ballistic missile systems in foreign
countries.
Witnesses: Dr. William R. Graham, former Science Advisor to
President Reagan and former Deputy Administrator of NASA; and
Dr. W. Seth Carus, Visiting Fellow, National Defense
University.
Written Testimony: General Bernard A. Schriever, U.S. Air
Force (retired), former Commander of Air Force Systems Command.
North Korean Missile Proliferation (October 21, 1997)
The Subcommittee examined the role of North Korea as an
international supplier of ballistic missiles and related
technologies.
Witnesses: Colonel Joo-hwal Choi, former official of the
Ministry of the People's Army, North Korea; and Young-hwan Ko,
former official of the Ministry of Foreign Affairs, North
Korea. Information provided for the record by Robert Einhorn,
Deputy Assistant Secretary for Nonproliferation, Bureau of
Political-Military Affairs, Department of State.
The Safety and Reliability of the U.S. Nuclear Deterrent (October 27,
1997)
The Subcommittee examined how the administration plans to
maintain the safety and reliability of the nuclear stockpile in
the absence of nuclear testing.
Witnesses: Dr. James R. Schlesinger, former Secretary of
Defense, former Secretary of Energy, and former Director of
Central Intelligence; Dr. Vic Reis, Assistant Secretary of
Energy for Defense Programs; and Dr. Robert B. Barker,
Assistant to the Director, Lawrence Livermore National
Laboratory.
The Annual Report of the Postmaster General (November 3, 1997)
The Subcommittee examined the Postal Service's financial
status, proposed postage rate increases, levels of productivity
and quality of customer service.
Witness: Hon. Marvin Runyon, Postmaster General and Chief
Executive Officer of the U.S. Postal Service.
Merit System Protection Act of 1997 (February 26, 1998)
The Subcommittee examined S. 1495.
Witnesses: Lorraine Lewis, General Counsel, OPM; David M.
Cohen, Director Commercial Litigation Branch, Civil Division,
Department of Justice; Robert Tobias, National President,
National Treasury Employees Union; and Mark Roth, General
Counsel, American Federation of Government Employees, AFL-CIO.
The Comprehensive Test Ban Treaty and Nuclear Nonproliferation (March
18, 1998)
The Subcommittee explored the relationship between the
Comprehensive Test Ban Treaty and the spread of nuclear
weapons.
Witnesses: John Holum, Acting Under Secretary of State and
Director, Arms Control and Disarmament Agency; Spurgeon Keeny,
Director, Arms Control Association; and Dr. Kathleen Bailey,
Senior Fellow, Lawrence Livermore National Laboratory.
Retirement Coverage Error Correction Act of 1998 (May 13, 1998)
The Subcommittee examined S. 1710.
Witnesses: William E. Flynn, Associate Director for
Retirement and Insurance, U.S. Office of Personnel Management;
Hon. Roger W. Mehle, Executive Director, Federal Retirement
Thrift Investment Board; Dallas Salisbury, President, Employee
Benefit Research Institute; and Daniel F. Geisler, President,
American Foreign Service Association.
The Benefits of Commercial Space Launch for Foreign ICBM and Satellite
Programs (May 21, 1998)
The Subcommittee examined how a foreign country's satellite
and ICBM programs could benefit from launching U.S. commercial
satellites, and whether the administration's export control
policy is adequate to prevent technology transfers that
endanger America.
Witnesses: Dr. William R. Graham, President, National
Security Research, Inc.; John Pike, Federation of American
Scientists; and Dr. William Schneider, Fellow, Hudson
Institute.
International Postal Services Act of 1998 (June 2, 1998)
The Subcommittee examined S. 2082.
Witnesses: William J. Henderson, Postmaster General, U.S.
Postal Service; Einar V. Dyhrkopp, Vice Chairman of the Board,
U.S. Postal Service Board of Governors; Christopher McCormick,
Senior Vice President of Advertising and Direct Marketing, L.L.
Bean, Inc.; Fred Smith, Chairman, FDX Corporation; and James P.
Kelly, Chairman and CEO, United Parcel Service.
The Adequacy of Commerce Department Satellite Export Controls, Part 1
(June 18, 1998)
The Subcommittee held a hearing to determine whether the
current Commerce Department-administered export control system
for commercial satellites is sufficient to prevent technology
transfer harmful to U.S. National Security.
Witnesses: William Reinsch, Under Secretary for Export
Administration, Department of Commerce; Jan M. Lodal, Principal
Deputy Under Secretary for Policy, Department of Defense; and
John D. Holum, Acting Under Secretary of State for Arms Control
and International Security Affairs.
The Adequacy of Commerce Department Satellite Export Controls, Part 2
(July 8, 1998)
The Subcommittee continued its previous hearing to
determine whether the current Commerce Department-administered
export control system for commercial satellites is sufficient
to prevent technology transfer harmful to U.S. National
Security.
Witnesses: William Reinsch, Under Secretary for Export
Administration, Department of Commerce; John D. Holum, Acting
Under Secretary of State for Arms Control and International
Security Affairs; and Frank W. Miller, Principal Deputy
Assistant Secretary, Department of Defense.
An Industry View of the Satellite Export Licensing Process (July 29,
1998)
The Subcommittee examined the aerospace industry's
perspective on the Commerce Department-administered export
control system for commercial satellites.
Witnesses: C. Michael Armstrong, Chairman and CEO, AT&T and
Chairman, President's Export Council; and Steven D. Dorfman,
Vice Chairman, Hughes Electronics Corporation.
Use of Mass Mail to Defraud Consumers (September 1, 1998)
The Subcommittee examined the use of mass mail to defraud
consumers, to include sweepstakes and government look-a-like
mail.
Witnesses: Hon. Ben Nighthorse Campbell, U.S. Senator; Ken
Hunter, Chief Inspector, U.S. Postal Inspection Service; Hon.
Robert A. Butterworth, Attorney General, State of Florida;
Stanley Pruss, Assistant Attorney General, State of Michigan;
Richard A. Barton, Senior Vice President, Direct Marketing
Association Inc.; and William E. Arnold, Ph.D., Director of
Gerontology, Arizona State University.
GAO Report on High Performance Computers (September 16, 1998)
The Subcommittee examined a report prepared by the General
Accounting Office on the administration's rationale for
liberalizing export controls on high performance computers.
Witnesses: Harold J. Johnson, Associate Director,
International Relations and Trade Issues, General Accounting
Office; and William Reinsch, Under Secretary for Export
Administration, Department of Commerce.
Annual Report of the Postmaster General (October 1, 1998)
The Subcommittee held its annual postal oversight hearing
to give Hon. William J. Henderson, the Postmaster General, the
opportunity to report publicly on the state of the U.S. Postal
Service.
Witness: Hon. William J. Henderson, Postmaster General,
U.S. Postal Service.
II. Legislation
1. The following is a list of selected measures which were
considered by the Subcommittee on International Security,
Proliferation, and Federal Services and became public laws:
S. 916, a bill designating a U.S. Post Office building in
Taylorsville, Mississippi as the ``Blaine H. Eaton Post Office
Building'' (Public Law 105-161).
S. 985, a bill designating a U.S. Post Office in Paterson,
New Jersey as the ``Larry Doby Post Office'' (Public Law 105-
162).
H.R. 282, a bill designating a U.S. Post Office building in
New York, New York, as the ``Oscar Garcia Rivera Post Office
Building'' (Public Law 105-87).
H.R. 499, a bill designating the facility of the U.S. Post
Office in San Antonio, Texas as the ``Frank M. Tejeda Post
Office Building'' (Public Law 105-4).
H.R. 681, a bill designating a U.S. Post Office building in
Glendale, California as the ``Carlos J. Moorhead Post Office
Building'' (Public Law 105-88).
H.R. 1057, a bill designating a U.S. Post Office building
in Indianapolis, Indiana as the ``Andrew Jacobs, Jr. Post
Office Building'' (Public Law 105-90).
H.R. 1058, a bill designating the facility of the U.S.
Postal Service in Terre Haute, Indiana as the ``John T. Myers
Post Office Building'' (Public Law 105-91).
H.R. 1254, (see also S. 595) a bill designating a U.S. Post
Office building in Springfield, Missouri as the ``John N.
Griesemer Post Office Building'' (Public Law 105-131).
H.R. 1316, to amend chapter 87 of Title 5, United States
Code, with respect to the order of precedence to be applied in
the payment of life insurance benefits (Public Law 105-205).
H.R. 1836, the Federal Employees Health Care Protection Act
of 1998, to amend chapter 89 of title 5, United States Code, to
improve the administration of the Federal Employees Health
Benefits Program (Public Law 105-266).
H.R. 2013, a bill designating the facility of the U.S.
Postal Service in South Kingstown, Rhode Island, as the ``David
B. Champagne Post Office Building'' (Public Law 105-70).
H.R. 2129, a bill designating a U.S. Post Office in
Steubenville, Ohio as the ``Douglas Applegate Post Office''
(Public Law 105-97).
H.R. 2564, a bill designating a U.S. Post Office in
Pottsville, Pennsylvania as the ``Peter J. McCloskey Postal
Facility'' (Public Law 105-99).
H.R. 2675, the Federal Employees Life Insurance Improvement
Act, a bill to improve the structure and administration of the
Federal Employees Group Life Insurance Program (Public Law 105-
311).
H.R. 3096, a bill to correct a provision relating to
termination of benefits for convicted persons under the Federal
Employees' Compensation Act, the workers' compensation statute
covering Federal employees (Public Law 105-247).
The following bills were enacted as part of the Omnibus
Consolidated and Emergency Supplemental Appropriations Act for
Fiscal Year 1999 (Public Law 105-277):
S. 2310, a bill designating a U.S. Post Office in East
Northport, New York as the ``Jerome Anthony Ambro, Jr. Post
Office Building.''
S. 2370, a bill designating the facility of the U.S. Postal
Service in Thomasville, Georgia as the ``Lieutenant Henry O.
Flipper Station.''
S. 2404, a bill establishing designations for five U.S.
Postal Service buildings in Coconut Grove, Opa Locka, Carol
City, and Miami, Florida.
H.R. 2623, a bill designating a U.S. Post Office in Kiln,
Mississippi as the ``Ray J. Favre Post Office Building.''
H.R. 2766, a bill designating the facility of the U.S.
Postal Service in Chicago, Illinois as the ``Karl Bernal Post
Office Building.''
H.R. 2773, a bill designating the facility of the U.S.
Postal Service in Chicago, Illinois as the ``Daniel J. Doffyn
Post Office Building.''
H.R. 2798, a bill redesignating a U.S. Postal Service
building in Chicago, Illinois as the ``Nancy B. Jefferson Post
Office Building.''
H.R. 2799, a bill redesignating a U.S. Postal Service
building as the ``Reverend Milton R. Brunson Post Office
Building.''
H.R. 2836, (see also S. 1640) a bill designating a U.S.
Postal Service building in St. Paul, Minnesota as the ``Eugene
J. McCarthy Post Office Building.''
H.R. 3120, a bill designating a U.S. Post Office in Provo,
Utah as the ``Howard C. Nielson Post Office Building.''
H.R. 3630, a bill redesignating a facility of the U.S.
Postal Service in Albuquerque, New Mexico as the ``Steven
Schiff Post Office Building.''
H.R. 3808, a bill designating a U.S. Post Office in
Plymouth, Michigan as the ``Carl D. Pursell Post Office
Building.''
H.R. 3810, a bill designating a U.S. Post Office in
Garwood, New Jersey as the ``James T. Leonard, Sr. Post Office
Building.''
H.R. 3939, a bill designating a U.S. Postal Service
building in Philadelphia, Pennsylvania as the ``Edgar C.
Campbell, Sr. Post Office Building.''
H.R. 3999, a bill designating a U.S. Postal Service
building in Philadelphia, Pennsylvania as the ``David P.
Richardson, Jr., Post Office Building.''
H.R. 4516, a bill designating a U.S. Postal Facility in
Oxon Hill, Maryland as the ``Jacob Joseph Chestnut Post Office
Building.''
2. The following bill was reported favorably by polling
letter from the Subcommittee on International Security,
Proliferation, and Federal Services but did not pass the
Senate:
S. 336, a bill to convert certain excepted service
positions in the U.S. Fire Administration to competitive
service positions. On November 5, 1997, the full Committee
ordered the bill reported favorably without amendment, and on
November 6, 1997, the bill was reported without written report.
3. The investigation and oversight hearings of the
Subcommittee on International Security, Proliferation, and
Federal Services regarding international security and
proliferation issues contributed greatly to the development of
the following legislative initiatives:
Amendment relating to high performance computer export regulations to
the Fiscal Years 1998 and 1999 National Defense Authorization
Act (Public Law 105-85)
This amendment was offered on June 19, 1997, by Senator
Cochran for himself and Senators Durbin, Abraham, Hutchinson,
Thurmond, Lugar, Smith (Bob), Kyl, Coverdell, Sessions, Inhofe,
and Collins. It strengthened high performance computer export
regulations by requiring exporters to notify the Department of
Commerce of any planned sales of computers with performance
levels greater than 2,000 MTOPS to tier three countries and
requiring the Department of Commerce to perform post-shipment
verification on all high performance computer exports with
performance levels greater than 2,000 MTOPS to tier three
countries. The amendment was agreed to by the Senate by voice
vote and included in the final conference report on the bill.
S. 1873--The American Missile Protection Act of 1998
This bill, introduced by Senator Cochran and 38 other
Senators, including Chairman Thompson and Senators Inouye,
Hollings, Lott, Thurmond, Stevens, Helms, Warner, Nickles,
Domenici, Craig, Inhofe, Murkowski, Shelby, Bond, Frist,
Abraham, McCain, and Snowe, on March 27, 1998, would make it
``the policy of the United States to deploy as soon as
technologically possible an effective National Missile Defense
system capable of defending the territory of the United States
against limited ballistic missile attack (whether accidental,
unauthorized, or deliberate).'' It was referred to the Senate
Committee on Armed Services and favorably reported to the
Senate on April 24, 1998. A motion to proceed to consideration
of the measure was made on May 11, 1998, and this motion was
filibustered. On May 13, 1998, by a Yea-Nay Vote of 59-41,
cloture on the motion to proceed was not invoked in the Senate.
A second motion to proceed to consideration of the bill was
made on September 3, 1998, and again, by a Yea-Nay Vote of 59-
41, cloture on the motion to proceed was not invoked in the
Senate.
Legislation relating to satellite export regulations
As part of the Fiscal Year 1999 National Defense
Authorization Act, export licensing for commercial
communications satellites was moved from the Commerce
Department to the State Department, thus reversing the Clinton
Administration's 1996 decision.
III. Report, Committee Print, and GAO Reports
1. The Proliferation Primer. In January 1998, the Majority
Members of the Subcommittee issued a paper which described an
investigation of the actions of the principal suppliers of
technology and components for weapons of mass destruction,
missile delivery systems, and key enabling technologies such as
supercomputers. The paper also examined the increasing
availability of ballistic missile technology and expertise in
the information age, as well as the Clinton Administration's
response to the proliferation threat. The Primer was based on
11 hearings held by the Subcommittee in 1997.
2. Compilation of Hearings on National Security Issues. (S.
Prt. 105-50)
3. The following reports were issued by the General
Accounting Office (GAO) at the request of the Chairman and/or
Ranking Member of the Subcommittee on International Security,
Proliferation, and Federal Services:
Export Controls: Information on the Decision to Revise High
Performance Computer Controls, GAO--NSIAD-98-196 (September
1998)
Export Controls: Changes in Controls Applied to the Export
of High Performance Computers, GAO--T-NSIAD-98-250 (September
1998)
Proposed Legislation: Issues Related to Honesty in
Sweepstakes Act of 1998 (S. 2141), GAO--T-GGD-98-198 (September
1998)
Comparison of Foreign Lobbying Registrations, GAO--GGD-98-
129R (May 1998)
Comparison of Lobbyists' Registrations, GAO--GGD-98-105R
(April 1998)
Information on States' Lobbying Disclosure Requirements,
GAO--GGD-97-95R (May 1997)
OVERSIGHT OF GOVERNMENT MANAGEMENT,
RESTRUCTURING, AND THE DISTRICT OF COLUMBIA SUBCOMMITTEE
Chairman: Sam Brownback
Ranking Minority Member: Joseph I. Lieberman
I. Hearings
The Subcommittee on Oversight of Government Management,
Restructuring, and the District of Columbia held the following
hearings during the 105th Congress:
1. Federal Tax Policy for the District of Columbia (March 6, 1997)
This hearing marked the first of many that the Subcommittee
held to examine a comprehensive package of incentive-based
policies such as enterprise zones, tax policy, improved public
safety, education and welfare reform. This particular hearing
focused on changing Federal tax policies to provide incentives
for certain economic activities in the District. The goal of
the hearing was to highlight different Federal tax policy ideas
that would empower the District of Columbia Government and
revive the local economy.
Witnesses: Hon. Eleanor Holmes Norton, U.S. Representative
from the District of Columbia; Marion Barry, Mayor of the
District of Columbia; Jack Kemp, Co-Director, Empower America;
Daniel J. Mitchell, McKenna Senior Fellow in Political Economy,
The Heritage Foundation; and William A. Niskanen, Chairman,
Cato Institute.
2. Overview of Management Issues for the Department of Commerce (March
10, 1997)
This hearing was the first in a series regarding management
issues in the Department of Commerce. The hearing focussed on
concerns raised by the Inspector General's Office, Congress,
the General Accounting Office, and the National Performance
Review with regard to the management of the Department of
Commerce. Of particular concern were questions raised in regard
to the National Oceanic and Atmospheric Administration (NOAA)
corps and the NOAA fleet. Even after the Department of Commerce
had received directives regarding the fleet from a number of
different entities, little or no progress had been demonstrated
in solving the areas of concern.
Witnesses: Frank DeGeorge, Inspector General, U.S.
Department of Commerce; and Raymond G. Kammer, Jr., Acting
Chief Financial Officer and Assistant Secretary for
Administration, U.S. Department of Commerce.
3. Successes in Urban Problem-Solving, Mayoral Perspectives (March 11,
1997)
This was a joint hearing held by the Subcommittee in
conjunction with the House Subcommittee on the District of
Columbia of the Committee on Government Reform and Oversight,
the House Subcommittee on the District of Columbia of the
Committee on Appropriations, and the Senate Subcommittee on the
District of Columbia of the Committee on Appropriations. The
purpose of the hearing was to explore how other cities have
successfully dealt with a variety of problems similar to those
faced by the District of Columbia. Mayors from around the
country testified as to how their cities addressed the
challenges of economic development, educational quality,
infrastructure improvement, public safety and general
governmental efficiency.
Witnesses: Patrick McCrory, Mayor, Charlotte, NC; Susan
Golding, Mayor, San Diego, CA; Stephen Goldsmith, Mayor,
Indianapolis, IN; Knox H. White, Mayor, Greenville, SC; and
Edward G. Rendell, Mayor, Philadelphia, PA.
4. White House Proposal for the District of Columbia (March 13, 1997)
This was a joint informational hearing held with the House
Subcommittee on the District of Columbia of the Committee on
Government Reform and Oversight. The hearing reviewed the
President's National Capital Revitalization and Self-Government
Improvement Plan which outlined the terms for the transfer of
many city functions to the Federal Government. The
Subcommittees heard the testimony of the Mayor, financial
control board members, D.C. Council members and city
administrators as to how the plan would affect the District of
Columbia. On August 5, 1997, the National Capital
Revitalization and Self-Government Improvement Act of 1997 was
enacted as part of the Balanced Budget Act of 1997 (Public Law
105-33).
Witnesses: Marion Barry, Jr., Mayor, Washington, D.C.;
Charlene Drew Jarvis, Chairwoman, Pro Tempore, Washington, D.C.
City Council; Andrew Brimmer, Chairman, District of Columbia
Financial Responsibility Management and Assistance Authority;
and Anthony Williams, Chief Financial Officer, Washington, D.C.
5. The Role of the Department of Commerce in the U.S. Trade Policy,
Promotion and Regulation, and Opportunities for Reform and
Consolidation (March 20, 1997)
This hearing was the second in a series on the Department
of Commerce. The first hearing focused on management issues and
problems that existed at the Department of Commerce; this
hearing focused on the role of the Department of Commerce in
international trade policy and promotion. The hearing was
comprised of three panels, the first of which discussed a
proposed plan for consolidating the trade promotion and the
trade policy making within the Federal Government. The second
panel addressed the overall trade policy and promotion
structure within the Federal Government and the third panel
represented the Department of Commerce with respect to
international trade.
Witnesses: Hon. John L. Mica, Representative in Congress
from the State of Florida; Hon. Rick White, Representative in
Congress from the State of Washington; Professor William H.
Lash III, Director of the Law and Economics Center, and
Associate Dean, George Mason University School of Law; Edward
L. Hudgins, Director of Regulatory Studies, Cato Institute;
Edward J. Black, President, Computer and Communications
Industry Association; and Timothy J. Hauser, Deputy Under
Secretary, International Trade Administration, Department of
Commerce.
6. Role of the Department of Commerce in Federal Statistical Gathering,
Analysis and Dissemination, and Opportunities for Reform and
Consolidation (April 9, 1997)
This hearing was the third in a series on the Department of
Commerce. The focus of this hearing was the statistical
gathering functions of the Federal Government and legislation
to create a commission to study the consolidation of these
agencies (S. 1404, ``The Federal Statistical Systems Act of
1998''). The Subcommittee looked at the lack of efficiency of
statistical gathering in the United States where 89 different
government organizations are involved in the collection of
information at a cost of $3 billion annually. The goal of the
hearing was to address possibilities for reform and
consolidation in the Federal Government's gathering, analysis,
and dissemination of statistical information.
Witnesses: Hon. Daniel Patrick Moynihan, U.S. Senator from
the State of New York; Hon. Stephen Horn, Representative in
Congress from the State of California; Vincent P. Barabba,
General Motors Corporate Strategy and Knowledge Department;
Janet Norwood, Senior Fellow, The Urban Institute; Maurine A.
Haver, Chair, Statistics Committee, National Association of
Business Economists; Leonard Nakamura, Economic Adviser,
Federal Reserve Bank of Philadelphia; and L. Nye Stevens,
Director, Federal Management and Workforce Issues, General
Government Division, U.S. General Accounting Office.
7. Government and Television: Improving Programming Without Censorship
(April 16 and May 8, 1997)
This hearing addressed the issue of television violence and
the role of the Federal Government. The Subcommittee examined
what the Federal Government could do about the negative impact
that violent television has on children, without engaging in
censorship or imposing government standards on the broadcast
industry. The goal of the hearing was to discuss ways that the
Federal Government could have a positive influence on the
television debate, for example, by removing perceived barriers,
either real or artificial, to the creation of voluntary
programming guidelines by the industry.
Witnesses: (April 16, 1997) Hon. Mike DeWine, U.S. Senator
from the State of Ohio; Dale Kunkel, Ph.D., Associate
Professor, Department of Communications, University of
California-Santa Barbara; Jeffery I. Cole, Director, UCLA
Center for Communication Policy; Helen K. Liebowitz, Member,
National PTA Board of Directors; Witney G. Vanderwerff, Ph.D.,
Executive Director, National Alliance for Non-Violent
Programming; Michael Brody, M.D., American Academy of Child and
Adolescent Psychiatry Media Committee; and David Walsh, Ph.D.,
Executive Director, National Institute on Media and the Family.
Witnesses: (May 8, 1997) L. Brent Bozell, III, Chairman,
Media Research Center; David Murray, Director of Research,
Statistical Assessment Service; Jane Brown, Professor,
University of North Carolina-Chapel Hill School of Journalism
and Mass Communication; Laurie Lee Humphries, M.D., Professor,
Child and Adolescent Psychiatry Department, University of
Kentucky College of Medicine; Mary Anne Layden, Director of
Education, University of Pennsylvania, Center for Cognitive
Therapy; Sarah S. Brown, Director, National Campaign to Prevent
Teen Pregnancy; and Elayne Bennett, President and Founder, Best
Friends Foundation, accompanied by Sue Lei, School Without
Walls, Whitney Brown, and Nefertina Frances, from Amidon.
8. Improvement Opportunities for the Public Schools in the District of
Columbia (April 17, 1997)
This hearing focussed on public education in the District
of Columbia--solutions for poor performance, how to increase
school safety and student well being, stopping material
shortages in the schools, and alleviating the school district's
crumbling infrastructure. The hearing also focused on ways to
help students improve their below-average test scores on the
Comprehensive Basic Skill Test.
Witnesses: General Julius W. Becton, Jr., Chief Executive
Officer, District of Columbia Public Schools; Dr. Bruce
MacLaury, Chairman, Emergency Transition Education Board of
Trustees; Hon. Lamar Alexander, Former U.S. Secretary of
Education; Hon. Ed Koch, Former Mayor of New York City; Dr. Jay
P. Greene, University of Houston, Author of ``The Effectiveness
of School Choice in Milwaukee: A Secondary Analysis of Data
from the Program's Evaluation''; Jeanne Allen, President, The
Center for Education Reform; Kathleen Sylvester, Vice President
of Domestic Policy, Progressive Policy Institute; Kevin
Chavous, D.C. Councilmember, Chairman, Committee on Education,
Libraries and Recreation; and Mark Roberts, Parent of Students
in District of Columbia Public Schools.
9. Opportunities for Management Reforms at the National Oceanic and
Atmospheric Administration (April 24, 1997)
This hearing was the fourth in a series on the Department
of Commerce. The purpose for the hearing was to look at the
National Oceanic and Atmospheric Administration, NOAA. More
specifically the hearing addressed issues concerning the
Federal surveying and mapping, the NOAA fleet, and the National
Weather Service. The goal of the hearing was to determine
whether or not NOAA performs functions that could be more
efficiently handled by the private sector or consolidated
elsewhere within the government. Other issues that were raised
pertained to the competition between more than 100 private
companies and the National Weather Service, as well as issues
regarding the aging NOAA fleet.
Witnesses: Diana Josephson, Deputy Under Secretary for
Oceans and Atmosphere, National Oceanic and Atmospheric
Administration, U.S. Department of Commerce, accompanied by
Admiral William Stubblefield, Director, NOAA Corps, and John
Carey, Associate Deputy Under Secretary for Oceans and
Atmosphere; Brian Logan, President, Photo Science, Inc.,
accompanied by John Palatiello, Executive Director, Management
Association for Private Photogrammetric Surveyors; Kenneth S.
Johnson, Chairman, University-National Oceanographic Laboratory
System; and Joel Myers, President, AccuWeather, Inc.; Joel
Willemssen, Director, Information Resources Management,
Accounting and Information Management Division, U.S. General
Accounting Office, accompanied by Keith Rhodes, Technical
Director, Office of Chief Scientist, U.S. General Accounting
Office.
10. Fighting Crime and Violence in the District of Columbia: Capital
Punishment as a Deterrent (April 30, 1997)
This oversight hearing examined legislation introduced by
Senator Kay Bailey Hutchison, S. 294, entitled ``Officer Brian
Gibson District of Columbia Police Protection Act.'' The
proposed bill would protect District of Columbia police
officers with the same death penalty laws that apply to Federal
law enforcement officers. The Subcommittee also looked at other
new mechanisms to reduce the District's crime rate--
particularly crime towards police officers--including an
increase in the penalties for committing crime. The bill was
reported out of Committee favorably and without amendments on
November 5, 1997.
Witnesses: Hon. Kay Bailey Hutchison, U.S. Senator from the
State of Texas; Tracie Gibson, widow of District of Columbia
Officer Brian Gibson; Stephen D. Harlan, Vice Chairman,
District of Columbia Financial Responsibility and Management
Assistance Authority; Gary Mather, Senior Vice President, Booz-
Allen and Hamilton, Inc., accompanied by James Stewart,
Principal, Booz-Allen and Hamilton, Inc.; Larry Soulsby, Chief
of Police, District of Columbia Police Department; Hon. Eugene
N. Hamilton, Chief Judge, Superior Court of the District of
Columbia; Robert Moffit, Deputy Director for Domestic Policy
Studies, The Heritage Foundation; C. Stephen Wallis,
Washington, D.C. Area School Administrator; Carol Schwartz,
District of Columbia City Council Member; and Rev. H. Beecher
Hicks, Jr., Senior Minister, Metropolitan Baptist Church.
11. The President's Proposal and Alternative Approaches for the
District of Columbia (May 13, 1997)
The hearing focused on President Clinton's National Capital
Revitalization and Self-Government Improvement Plan, as well as
the city's reaction to it. The administration's plan
recommended reordering the relationship between the District of
Columbia and the Federal Government with a goal of putting the
city on firmer financial ground and returning home rule. The
plan provided for the Federal Government's assumption of over
$4 billion of the District of Columbia's operating costs over 5
years, saving the city nearly $700 million over the same
period. The plan also offered over $1 billion for economic
development.
Witnesses: Hon. G. Edward DeSeve, Controller, Office of
Financial Management, U.S. Office of Management and Budget;
Marion Barry, Mayor, District of Columbia; and Linda W. Cropp,
Acting Chair, District of Columbia City Council.
12. Department of Commerce's Technology Grant Programs (June 3, 1997)
This hearing was the fifth in a series on the Department of
Commerce, it looked at technology grants administered by the
Department, primarily the Advanced Technology Program (ATP).
This program provides hundreds of millions of taxpayer dollars
each year to industrial giants such as GE and IBM. While some
people viewed these subsidies as critical to American
competitiveness in the global marketplace, others saw them as
wasteful corporate subsidies. The cost of the ATP program was
$10 million in 1990 and had grown to $225 million by 1997.
Witnesses: Mary Lowe Good, Under Secretary for Technology,
Technology Administration, U.S. Department of Commerce; Robert
M. White, University Professor, Carnegie Mellon University; Tim
Draper, Managing Director, Draper Fisher Associates; T.J.
Rodgers, President and Chief Executive Officer, Cypress
Semiconductor Corporation; Stephen Moore, Director of Fiscal
Policy Studied, Cato Institute; and Dwight D. Carlson, Vice
Chairman, Perceptron, Incorporated.
13. S. 314--Freedom from Government Competition Act (June 18, 1997)
This hearing was the first in a series to investigate the
opportunities for greater competitive contracting within the
Federal Government as well as other privatization projects at
the national level. While most prominent privatization
initiatives have focused on the divestiture of assets and
commercial-like enterprises, such as the Naval Petroleum
Reserve and the Uranium Enrichment Corporation, this hearing
focused on opportunities at the Federal level to involve
competition contracting in the thousands of routine commercial-
type services that the government provides to itself and the
public. Senator Craig Thomas and Representative John Duncan
testified on their bicameral companion legislation that
addresses the issue of Federal Government competition with the
private sector for commercial activities.
Witnesses: Hon. Craig Thomas, U.S. Senator from the State
of Wyoming; Hon. John J. Duncan, Jr., Representative in
Congress from the State of Tennessee; John A. Koskinen, Deputy
Director, Office of Management and Budget; Samuel D. Kleinman,
Director, Center for Naval Analysis; Captain Burton Streicher,
CEC, U.S. Navy, Director, Navy Outsourcing Support Office;
Charles S. Davis III, Chamberlain, Davis, Rutan and Valk,
formerly the Associate Administrator for Operations, General
Services Administration; L. Nye Stevens, Director, Federal
Management and Workforce Issues, General Government Division,
U.S. General Accounting Office; and John N. Sturdivant,
National President, American Federation of Government
Employees, AFL-CIO.
14. National Drought Policy Act of 1997--S. 222 (September 8, 1997)
(unofficial)
In the wake of the past year's devastating floods the
Subcommittee held this hearing to examine S. 222, ``The
National Drought Policy Act of 1997,'' which calls for the
creation of an independent commission to study and make
recommendations on the Federal Government's response to drought
emergencies. Introduced by Senator Pete Domenici, S. 222's
national advisory commission would report to the President, the
Senate, and the House, and be chaired by the Secretary of
Agriculture or his designee. S. 222 was reported out of
Committee on November 7, 1997 and passed the Senate on November
10, 1997. On November 12, 1997, the bill was introduced in the
House as H.R. 3035, passed by the House on June 16, 1998, and
passed by the Senate on June 24, 1998. It was signed into law
on July 16, 1998 (Public Law 105-199).
Witnesses: Hon. Richard Rominger, Deputy Secretary, U.S.
Department of Agriculture; Hon. Edward T. Schafer, Governor,
North Dakota; Hon. Jennifer Salisbury, Secretary, Department of
Energy, Minerals and Natural Resources, New Mexico; John Baker,
Commissioner, Texas Natural Resources Conservation Commission;
John Van Sweden, President, New Mexico Farm and Livestock
Bureau, American Farm Bureau Federation; and Robert C. Brown,
Executive Vice President, Credit Division, Farm Credit Bank of
Texas.
15. A Progress Report on the Reforms in the D.C. Public Schools
(September 8, 1997)
This hearing was the second which focused on the District
of Columbia public schools. Held right before the opening of
the 1997-98 school year, the purpose of the hearing was to
discuss the progress of educational reform in the school system
and examine DCPS management. Representative Richard Armey
testified on H.R. 1797, school choice legislation for the
District of Columbia. Rep. Armey's bill would provide
Opportunity Scholarships for approximately 2,000 low-income
children who attend the District's public schools. The same
legislation also was introduced in the Senate by Senators
Coats, Lieberman, and Brownback.
Witnesses: Hon. Richard K. Armey, Majority Leader, U.S.
House of Representatives; Jeanne Allen, President, The Center
for Education Reform; Nina Shokraii, Education Policy Analyst,
Domestic Policy Studies, The Heritage Foundation; Kent B. Amos,
President, Urban Family Institute; Bruce K. MacLaury, Chairman,
Emergency Transition Education Board of Trustees, District of
Columbia Public Schools; and General Julius W. Becton, Jr.,
(Retired), Chief Executive Officer and Superintendent, District
of Columbia Public Schools, accompanied by Major General
Charles Williams, (Retired), Chief Operating Officer.
16. Music Violence: How Does it Affect Our Children? An Examination of
the Impact of Violent Music Lyrics on Youth Behavior and Well-
Being in the District of Columbia and Across the Nation
(November 6, 1997)
This oversight hearing looked at the impact that violent
music has on the youth of America. Over the last 30 years,
violent juvenile crime had jumped by more than 500 percent,
teen suicide had tripled, and unwed teen pregnancy had
skyrocketed. In the last 4 years alone, casual drug use among
teens had jumped nearly 50 percent. The same statistics were
especially alarming among the children in the District of
Columbia.
Witnesses: Hon. Kent Conrad, U.S. Senator from the State of
North Dakota; Raymond Kuntz, Parent, Burlington, North Dakota;
Dr. Frank Palumbo, on behalf of the American Academy of
Pediatrics, Washington, D.C.; Hilary Rosen, President and Chief
Executive Officer, Recording Industry Association of America,
Washington, D.C.; C. DeLores Tucker, Chair, National Political
Congress of Black Women, Inc., Silver Spring, Maryland,
accompanied by Chad Sisk, Philadelphia, Pennsylvania; and
Donald F. Roberts, Thomas Moore Stork Professor of
Communications, Stanford University.
17. Reforming the Adoption and Foster Care System in the District of
Columbia (February 12, 1998)
This hearing focused on the deteriorating condition of the
District of Columbia adoption and foster care system. In the
District, two-thirds of the children who come under the
District's custody grow up and age out of the foster care
system at 18 years of age rather than growing up in a permanent
adoptive home. As a result, the D.C. Child and Family Services,
which handles foster care and adoption, is currently operating
under a Federal court receivership. The purpose of the hearing
was to hear about the innovative adoption reforms in Kansas and
how they may apply to the District. In addition, the hearing
provided an opportunity for the newly-appointed Federal Court
receiver to announce her plans for improvement within the D.C.
Child and Family Services.
Witnesses: Hon. Mike DeWine, U.S. Senator from the State of
Ohio; Hon. Charles E. Grassley, U.S. Senator from the State of
Iowa; Hon. Dave Camp, U.S. Representative in Congress from the
State of Michigan; Hon. Rochelle Chronister, Secretary,
Department of Social and Rehabilitative Services, State of
Kansas; Hon. Larry E. Craig, U.S. Senator from the State of
Idaho; Debora Caruth, D.C. Foster Care Parent; Gordon Henry
Gosselink, D.C. Pre-Adopted Child; Ernestine F. Jones, LaShawn
General Receiver, District of Columbia Child and Family
Services; Judith Meltzer, Senior Associate, Center for the
Study of Social Policy; and Thomas Wells, Executive Director,
Consortium for Child Welfare.
18. Lessons Learned in the D.C. Public Schools (March 9, 1998)
This hearing served as a progress report on the D.C. public
school system for the previous academic year. The District
school system had performed poorly under the leadership of a
new Superintendent and the D.C. Emergency Education Board of
Trustees. The city's public schools suffered from low academic
achievement scores throughout the system and a delayed opening
due to roof repairs. The hearing addressed a GAO study that
highlighted flaws in the school system's roof repair process as
well as safeguards to help avoid more set-backs in following
school years.
Witnesses: Gloria L. Jarmon, Director, Health, Education
and Human Services, Accounting and Financial Management,
Accounting and Information Management Division, General
Services Office; David L. Cotton, Managing Partner, Cotton and
Company, accompanied by Ed Fritts, Senior Manager, Cotton and
Company, and Marvin Allmond, Managing Partner, Allmond and
Company; General Julius W. Becton, Jr., Superintendent,
District of Columbia Public Schools, accompanied by Arlene
Ackerman, Chief Academic Officer; and Tallib-Din Uqdah, parent
of D.C. Public School students.
19. A Free Market Approach to Federal Contracting: Fair Competition Act
of 1998 and the Competition in Commercial Activities Act of
1998 (S. 314) (March 24, 1998)
This was a joint hearing held in conjunction with the House
Subcommittee on Government Management, Information, and
Technology of the House Committee on Government Reform and
Oversight. The hearing focused on the Senate and House re-draft
of the original version of S. 314, the Freedom From Government
Competition Act of 1997. Rather than prohibiting the Federal
Government from competing with the private sector, the new
draft establishes a level playing field in which the private
sector and the Federal agencies compete for commercial
activities performed by the Federal Government. The purpose of
the hearing was to gain input from various representatives from
OMB, the private sector, former government officials, and
Federal employee unions.
Witnesses: Hon. Craig Thomas, U.S. Senator from the State
of Wyoming; G. Edward DeSeve, Acting Deputy Director for
Management, U.S. Office of Management and Budget; Skip Stitt,
former Deputy Mayor, City of Indianapolis, testifying on behalf
of Hon. Steven Goldsmith, Mayor of Indianapolis; Steve Kelman,
Ph.D., Weatherhead Professor of Public Management, Harvard
University; Bryan Logan, Chief Executive Officer, Earth Data
International; Larry Trammell, Corporate Vice President and
General Manager, Science Applications International Corp;
Douglas K. Stevens, Jr., Partner of Information Technology
Services Group, under Grant Thornton, LLP, representing the
U.S. Chamber of Commerce; Robert M. Tobias, National President,
The National Treasury Employees Union; Bobby L. Harnage,
President, American Federation of Government Employees; and
Michael B. Styles, National President, Federal Managers
Association.
20. Giving Children a Chance to Learn: The D.C. Student Opportunity
Scholarship Act (May 5, 1998)
This hearing solicited the views of the parents and
children who were going to be directly impacted by President
Clinton's decision to veto the ``District of Columbia Student
Opportunities Scholarship Act of 1997.'' The Act, which was to
provide approximately $7 million to be apportioned into 1,800
scholarships for low income families, was vetoed 15 days after
the hearing on May 20, 1998. Two District of Columbia residents
testified as to how the proposed legislation would positively
impact their lives and the lives of their children. They
discussed the condition of the District's public schools and
how the system was failing to educate their children.
Witnesses: Virginia Walden, District of Columbia resident;
and Wesley Walker-Bey, District of Columbia resident.
21. The Role of Faith-Based Charities in the District of Columbia (May
18, 1998)
The purpose of this hearing was to examine how faith-based
nonprofit organizations serve a positive role in helping
residents of the District of Columbia. The Subcommittee was
interested in uncovering government barriers hindering the work
of these charities and finding ways to help them overcome these
barriers. The executive directors from several local charities
testified, as well as former ``clients'' of several charities.
One former drug addict is now gainfully employed on Capitol
Hill; a disruptive high school student is now focused on
education and is finishing her undergraduate degree at George
Washington University. The charities represented had
encountered excessive government paperwork and zoning
impediments in the District of Columbia. Senator Coats and
other policy analysts testified to the positive impact of
Members of Congress through their personal involvement in
charitable work.
Witnesses: Hon. Dan Coats, U.S. Senator from the State of
Indiana; Dr. Edward J. Eyring, President and Executive
Director, Gospel Rescue Ministries; Hannah M. Hawkins, Founder
and Director, Children of Mine Center; Jim Till, Executive
Director, Strategies to Elevate People; Amy Hunt Johnson,
Director, Neighborhood Learning Center; April Lassiter,
President, The Initiative for Children Foundation; and Joe
Loconte, Deputy Editor, Policy Review Magazine, The Heritage
Foundation.
22. Competition for Commercial Activities in the Federal Government
(June 4, 1998)
In an effort to keep commercial functions in-house, many
Federal agencies ignore OMB's policy, known as OMB Circular A-
76, for identifying and competing non-inherently governmental
activities. This hearing focused on why agencies ignore OMB A-
76 and how legislation, like the Fair Competition Act (S. 314)
could solve this problem. Senator Craig Thomas, sponsor of the
original version of S. 314, gave a statement and discussed why
the Federal Government should use the tools available to them
to bring the benefits of competition to the government.
Witnesses: Hon. Craig Thomas, U.S. Senator from the State
of Wyoming; J. Christopher Mihm, Acting Associate Director,
Federal Management Workforce Issues, U.S. General Accounting
Office, accompanied by Bill Reinsberg and Marilyn Wasleski; G.
Edward DeSeve, Acting Deputy Director, U.S. Office of
Management and Budget; John Berry, Assistant Secretary for
Policy, Management and Budget, U.S. Department of the Interior;
and W. Scott Gould, Chief Financial Officer and Assistant
Secretary for Administration, U.S. Department of Commerce.
23. ``Keeping the Nation's Capital Safe'' (July 27, 1998)
The crime situation in the Nation's capital city has been
improving statistically but remains far too violent. This
hearing examined a D.C. Inspector General's report documenting
the problems with the city's emergency 911 system and discussed
grass roots efforts being implemented to fight crime at the
neighborhood level in the District of Columbia. Chief of
Police, Charles Ramsey, testified on behalf of the Metropolitan
Police Department. Two local residents testified about their
local anti-crime efforts and the positive impact they have had
on their communities. Chairman Brownback also honored Capitol
Hill Police officers Jacob Chestnut and John Gibson who gave
their lives in the line of duty just 3 days prior to the
hearing.
Witnesses: Charles H. Ramsey, Chief of Police, Metropolitan
Police Department, District of Columbia, accompanied by
Terrence Gainer, Executive Assistant Chief of Police, and Mike
Fitzgerald, Assistant Chief, Technical Services; James F.
Foreman, Coordinator, Metro Orange Coalition; and Kirsten
Oldenburg, Editor, Crimemail, D.C. Police Service Area 109.
24. Agency Management of Implementation of the Coal Act (October 6,
1998)
In June of 1998, the U.S. Supreme Court ruled in Eastern
Enterprises v. Apfel that the 1992 Coal Act created an
unconstitutional ``taking.'' Senator Sam Brownback focused this
oversight hearing on the impact of the Supreme Court's decision
for other reachback companies and the decision's long-term
financial implications for the solvency of the Combined Fund.
Witnesses: Hon. John D. Rockefeller, IV, U.S. Senator from
the State of West Virginia; Hon. Kent Conrad, U.S. Senator from
the State of North Dakota; Hon. Kathy Karpan, Director, Office
of Surface Mining Reclamation and Enforcement, Department of
the Interior; Bill Fant, Special Assistant, Office of Tax
Policy, Department of the Treasury; and Marilyn O'Connell,
Associate Commissioner, Office of Program Benefits Policy,
Social Security Administration.
25. Are Military Adultery Standards Changing: What Are the
Implications? (October 7, 1998)
On August 14, 1998, the Federal Register contained proposed
changes to the Department of Defense Manual for Courts Martial
relating to adultery. This oversight hearing focused on the
process of developing these new proposed guidelines and whether
these changes would ``clarify'' the standards or make it easier
for a commander to overlook unacceptable behavior because the
effects of the offense were not ``immediate, obvious, and
measurably divisive.'' Elaine Donnelly, President of the Center
for Military Readiness, testified that she had discovered
through a FOIA request that DOD had solicited outside advice on
the proposed change in the adultery standard from the ACLU and
the Servicemembers Legal Defense Network. Furthermore, she
stated that DOD did not consult with any of the major veterans'
organizations or military professional societies such as the
American Legion, the Veterans of Foreign Wars, and the Naval
Institute. She believes that the proposed changes may serve to
muddy the waters on prosecuting adultery and give the
perception that adultery is not taken seriously by the
military. Others testifying stated that the changes would serve
to ``civilianize'' the military culture, interfering with the
focus of troops and damaging combat readiness, morale, and unit
cohesion.
Witnesses: Elaine Donnelly, President, Center for Military
Readiness; Dr. Daniel R. Heimbach, Former Deputy Assistant
Secretary of the Navy for Manpower; and Lieutenant Colonel
Robert L. Maginnis, USA Ret., Director, Military Readiness
Project, Family Research Council.
II. GAO Reports
During the 105th Congress, the Subcommittee worked in
conjunction with the General Accounting Office on 13 reports
and studies:
Transportation Infrastructure: Managing the Costs of
Large-Dollar Highway Projects, RCED-97-47 (February 28, 1997)
Weather Service Modernization: Risks Remain that Full
System Potential Will Not Be Achieved, T-AIMD-97-85 (April 24,
1997)
Courthouse Construction: Better Courtroom Use Data
Could Enhance Facility Planning and Decisionmaking, GGD-97-39
(May 19, 1997)
Privatization and Competition: Comments on S. 314, the
Freedom From Government Competition Act, T-GGD-97-134 (June 18,
1997)
District of Columbia: Revenue Compared With Those of
Selected Cities, GGD-97-135R (June 26, 1997)
Best Practices: Elements Critical to Successfully
Reducing Unneeded RDT&E Infrastructure, NSIAD--RCED-98-23
(January 8, 1998)
Convention Centers' Economic Benefits, GGD--AIMD--OCE-
98-71R (February 27, 1998)
Federal Research: Challenges to Implementing the
Advanced Technology Program, RCED--OCE-98-83R (March 2, 1998)
District of Columbia Public Schools: Availability of
Funds and the Cost of FY 1997 Roof Projects, T-AIMD-98-95
(March 9, 1998)
OMB Circular A-76: Oversight and Implementation Issues,
T-GGD-98-146 (June 4, 1998)
Regulatory Management: Implementation of Selected OMB
Responsibilities Under the Paperwork Reduction Act, GGD-98-120
(July 9, 1998)
Employee Benefits: Status of UMWA Combined Benefit
Fund, HEHS-99-7R (October 2, 1998)
Paperwork Reduction Act: Implementation at IRS, GGD-99-
4 (November 16, 1998)
III. Legislation
The following bills were considered by the Subcommittee on
Oversight of Government Management, Restructuring, and the
District of Columbia during the 105th Congress:
S. 199--Federal Research Financing Improvement Act of 1997
The bill prohibits the construction of new Federal research
facilities to carry out a covered research activity unless the
head of the Federal agency with jurisdiction over the new
facility enters into a cooperative agreement for such
construction and the conduct of such research with appropriate
representatives of each beneficiary industry to be served by
the activity. It requires the beneficiary industry to pay at
least half the cost of construction and requires the agreement
to provide for both: (1) sharing among beneficiary industries
of intellectual property obtained from covered research
activities; and (2) protection of certain intellectual property
used by the Federal Government in carrying out the activities.
S. 222--National Drought Policy Act of 1997 (Public Law 105-199)
This bill establishes the National Drought Policy
Commission to conduct a thorough study and submit a specified
report on national drought policy to the President and the
Committee on Government Affairs of the Senate and the Committee
on Government Reform and Oversight of the House together with
its recommendations for such legislation and administrative
actions as it considers appropriate. The bill terminates the
Commission 90 days after the submission of report.
On November 5, 1997, the Committee ordered the bill
reported favorably with an amendment in the nature of a
substitute. A written report was filed on November 7, 1997 (S.
Rept. 105-144). It passed the Senate on November 10, 1997 with
an amendment by unanimous consent. On November 12, 1997, the
bill was introduced in the House as H.R. 3035, passed by the
House on June 16, 1998, and passed by the Senate on June 24,
1998. It was signed into law on July 16, 1998 (Public Law 105-
199).
S. 294--Officer Brian Gibson District of Columbia Police Protection Act
This bill amends the Federal criminal code to establish
penalties, including the death penalty, for the killing or
attempted killing of a law enforcement officer of the District
of Columbia.
The Committee ordered the bill reported favorably without
amendment on November 5, 1997.
S. 314--Freedom From Government Competition Act of 1997 (Public Law
105-270) (Title amended to ``Federal Activities Inventory
Reform Act of 1998.'')
This bill directs the head of each executive agency to
submit to the Director of the Office of Management and Budget,
not later than the end of the third quarter of each fiscal
year, a list of activities performed by Federal Government
sources for the agency that, in the judgment of the head of the
executive agency, are not inherently governmental functions.
On July 15, 1998, the Committee ordered the bill to be
favorably reported with Chairman Thompson's amendment in the
nature of a substitute. The Committee filed a report on July
28, 1998 (S. Rept. 105-269). The Chairman's substitute
amendment was passed by the Senate by unanimous consent on July
30, 1998. On October 5, 1998, the House passed S. 314 by voice
vote under suspension of the rules. The President signed the
bill on October 8, 1998. (Public Law 105-270)
S. 847--District of Columbia Student Opportunity Scholarship Act of
1997
The bill authorizes the establishment of a private,
nonprofit corporation the District of Columbia Scholarship
Corporation to administer, publicize, and evaluate the District
of Columbia scholarship program and to determine student and
school eligibility for program participation. It establishes
the District of Columbia Scholarship Fund, to be administered
by the Secretary of the Treasury, through which annual funds
shall be provided to the District and used by the Corporation
for the program. It also authorizes appropriations to the fund
for FY 1998 through 2002.
This bill was introduced on June 5, 1997, by Senators
Coats, Lieberman, Brownback, Ashcroft, Coverdell, and Gregg. It
was reintroduced as S. 1502 on September 9, 1997, and passed by
the Senate without amendment by unanimous consent. S. 1502
passed the House on April 30, 1998, and was vetoed by the
President on May 20, 1998.
S. 1404--Federal Statistical System Act of 1998
This bill expresses the sense of the Congress that: (1) a
more centralized statistical system is integral to efficiency;
(2) the Chief Statistician must have the authority, personnel,
and other resources necessary to carry out the duties of that
office effectively, including duties relating to statistical
forms clearance; and (3) statistical forms clearance at the
Office of Management and Budget (OMB) should be better
distinguished from regulatory forms clearance.
The bill was introduced on November 7, 1997 by Senator
Brownback for himself, Chairman Thompson, and Senators Moynihan
and Kerrey. On September 25, 1998, the Committee ordered the
bill reported favorably with an amendment in the nature of a
substitute. The Committee filed a written report on October 6,
1998 (S. Rept. 105-367).
H.R. 497--A bill to repeal the Federal charter of Group Hospitalization
and Medical Services, Inc., and for other purposes (Public Law
105-149)
This bill amends the Federal charter of Group
Hospitalization and Medical Services, Inc., to: (1) permit the
corporation to have one class of members consisting of at least
one member and not more than 30; and (2) prohibit dissolution
of the corporation without congressional approval.
H.R. 497 was passed by the House on February 26, 1997. On
November 5, 1997, the Committee ordered the bill reported
favorably with an amendment in the nature of a substitute. On
November 6, 1997, the Committee reported the bill without a
written report. The bill passed the Senate with an amendment by
unanimous consent on November 8, 1997. On November 12, 1997,
the Senate-passed bill was introduced as H.R. 3025 which was
passed by the House under suspension of the rules by voice
vote. The Senate passed H.R. 3025 by unanimous consent on
November 13, 1997, and it was signed into law on December 16,
1997. (Public Law 105-149)
H.R. 513--District of Columbia Council Contract Review Reform Act of
1997
The bill amends the District Self-Government and
Governmental Reorganization Act to exempt from review and
approval by the District of Columbia Council: (1) contracts
entered into by the Washington Convention Center Authority for
preconstruction activities, project management, design, or
construction; (2) contracts entered into by the District of
Columbia Water and Sewer Authority other than contracts for the
sale or lease of the Blue Plains Wastewater Treatment Plant;
and (3) at its option, contracts for Federal-aid highway
improvement projects.
IV. Other Activities
The Subcommittee worked extensively with the District of
Columbia to create a better and more livable city for its
residents. On June 24, 1998 the Subcommittee held an Adoption
Fair for District children who were under the custody of the
city's foster care system and were in need of permanent homes
and families. The effort to match foster care children with
permanent families was a success with a total of eight children
being joined with eight loving families.
On June 25, 1997 the Subcommittee announced the inclusion
of its D.C. tax proposal in the Senate Finance Committee's
reconciliation package. The Finance Committee included a zero
capital gains tax and a first-time home buyer tax credit for
the people of the District of Columbia which were intended to
jump start the District's economy and empower its citizens.
Joining the Subcommittee for the announcement were Senators
Mack and Lieberman and Delegate Norton, whose work on behalf of
the legislation dated back to the previous Congress. The
Subcommittee also was joined by economists from the Heritage
Foundation and Wharton Forecasting Associates, who presented
their findings from a detailed analysis of the tax plan and its
effects on the city.
In conjunction with the LaShawn General Receiver, the D.C.
Inspector General and the Chief Management Officer of the
District of Columbia, the Subcommittee was involved with the
rectification of abuse problems relating to the District
Government's telecommunications policies. The problem has since
been remedied.
The Subcommittee also worked with the Executive Branch to
ensure that all agencies were run with fiscal prudence and
sound management practices. Among these efforts the
Subcommittee, in conjunction with the General Accounting
Office, closely monitored the Paperwork Reduction Act of 1995
and more specifically, its implementation by the Office of
Information and Regulatory Affairs (OIRA). The Subcommittee
worked in association with the House of Representatives and the
Senate Appropriations Subcommittee on Treasury, Postal Service
and General Government to withhold a portion of OIRA's proposed
budget until the agency was able to adhere to the mandates
placed upon it by the aforementioned Paperwork Reduction Act.
Lastly, the Subcommittee monitored the process under which
the Department of Defense attempted to change the long standing
military adultery standards. As noted above, the Subcommittee
held a hearing regarding this issue and subsequently tracked
the progress, including a submission for public comment, on the
Notice of Proposed Amendments to the Manual for Courts Martial
published in the Federal Register on August 14, 1998. The
Subcommittee also monitored what DOD actually took into
consideration during the public comment period and what
pertinent information may have been omitted.
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
Chairman: Susan M. Collins
Ranking Minority Member: John Glenn
The following is the annual Activities Report of the
Permanent Subcommittee on Investigations during the 105th
Congress:
I. Historical Background--50th Anniversary of the Subcommittee
A. Expansion of Jurisdiction
Although its records and jurisdiction actually predate its
authorization, the Permanent Subcommittee on Investigations
(Subcommittee) was originally authorized by Senate Resolution
189 on January 28, 1948. At its creation in 1948, the
Subcommittee was part of the Committee on Expenditures in the
Executive Departments. The Subcommittee's records and broad
investigative jurisdiction over government operations and
national security issues, however, actually antedate its
creation, since it was given custody of the jurisdiction of the
former Special Committee to Investigate the National Defense
Program (the so-called ``War Investigating Committee'' or
``Truman Committee''), chaired by Senator Harry S. Truman
during the Second World War. Today, the Subcommittee is part of
the Committee on Governmental Affairs.\1\
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\1\ In 1952, the parent committee's name was changed to the
Committee on Government Operations. It was changed again in early 1977,
to the Committee on Governmental Affairs, its present title.
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The Subcommittee has had eight chairmen: Senators Homer
Ferguson of Michigan (1948), Clyde R. Hoey of North Carolina
(1949-1952), Joseph R. McCarthy of Wisconsin (1953-1954), John
L. McClellan of Arkansas (1955-1972), Henry M. Jackson of
Washington (1973-1978), Sam Nunn of Georgia (1979-1980 and
1987-1994), William V. Roth of Delaware (1981-1986 and 1995-
1996), and Susan M. Collins of Maine (1997 to present). With
Senator Collins' chairmanship, the Subcommittee in some sense
came full circle: Its predecessor body, the Truman Committee,
had also been chaired by a Republican Senator from Maine, Ralph
Owen Brewster.
Until 1957, the Subcommittee's jurisdiction focused
principally on waste, inefficiency, impropriety, and alleged
illegality in government operations. Its jurisdiction has been
expanded considerably since then, however, today encompassing
investigations within the broad ambit of the Committee on
Governmental Affairs' responsibility for matters relating to
the efficiency and economy of operations of all branches of the
Government.
The Subcommittee's responsibilities increased in several
successive stages. In 1957--based on information developed by
the Subcommittee--the Senate passed a resolution establishing a
Select Committee on Improper Activities in the Labor or
Management Field. Chaired by Senator McClellan, who also
chaired the Subcommittee at that time, the Select Committee was
composed of eight Senators--four of whom were drawn from the
Subcommittee on Investigations and four from the Committee on
Labor and Public Welfare. The Select Committee existed for 3
years sharing office space, personnel, and other facilities
with the Permanent Subcommittee. Upon its expiration in early
1960, the Select Committee's jurisdiction and files were
transferred to the Subcommittee on Investigations, greatly
enlarging the latter body's investigative authority in the
labor-management area.
The Subcommittee's investigatory jurisdiction expanded
further throughout the 1960's. In 1961, for example, it
received authority to make inquiries into matters pertaining to
syndicated or organized crime.\2\ In the wake of the riots and
other civil disturbances that marked the summer of 1967, the
Senate approved a resolution directing the Subcommittee to
investigate the causes of this disorder and to recommend
corrective action. The Subcommittee acquired its national
security mandate in January 1973, when it merged with the
National Security Subcommittee. With this merger, the
Subcommittee's jurisdiction was broadened to include inquiries
concerning the adequacy of national security staffing and
procedures, relations with international organizations,
technology transfer issues, and related matters. Finally, in
1974--in reaction to the global oil shock and energy shortage
precipitated by the Arab-Israeli War of October 1973--the
Subcommittee also acquired jurisdiction to investigate
government operations involving the control and management of
energy resources and supplies.
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\2\ It exercised this jurisdiction in 1963, for example, in
organizing the famous Valachi hearings described below, in which the
Subcommittee examined the inner workings of the Italian Mafia.
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B. Past Investigations
Armed with this broad investigatory mandate, the
Subcommittee has in recent years conducted investigations into
a wide variety of topics of public concern, ranging from child
pornography to espionage, including reviews of organized crime
activities such as labor racketeering, fraudulent insurance
plans, and newly emerging criminal groups. The Subcommittee has
also conducted investigations into numerous aspects of the
narcotics trade, including money laundering, issues in Federal
drug enforcement, and drug abuse. The Subcommittee has also
devoted itself particularly to investigating allegations of
waste, fraud, and abuse in government programs. Most recently,
under Senator Collins' chairmanship, the Subcommittee has
focused particularly upon consumer protection issues,
addressing problems ranging from the safety of imported foods
to issues of Medicare fraud.
The second session of the 105th Congress was a significant
one for the Permanent Subcommittee on Investigations, since
January 28, 1998 marked the 50th anniversary of the Truman
Committee's conversion into a permanent subcommittee of the
U.S. Senate.\3\ In the half-century of its existence, the
Subcommittee's many successes have made clear to the Senate the
importance of retaining a standing investigatory organ devoted
to keeping government not only efficient and effective, but
also honest and accountable.
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\3\ This anniversary also marks the first date upon which internal
Subcommittee records generally began to become available to the public.
Unlike most standing committees of the Senate whose previously
unpublished records open after a period of 20 years has elapsed, the
Permanent Subcommittee on Investigations, as an investigatory body, may
close its records for 50 years to protect personal privacy and the
integrity of the investigatory process. With this 50th anniversary, the
Subcommittee's earliest records, housed in the Center for Legislative
Archives at the National Archives and Records Administration, began to
open seriatim. The records of the predecessor committee--the Truman
Committee--were opened by Senator Nunn in 1980.
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The Subcommittee's investigatory record as a permanent
Senate body began under the chairmanship of Republican Senator
Homer Ferguson and his Chief Counsel (and future Secretary of
State) William P. Rogers, as the Subcommittee inherited the
Truman Committee's role in investigating fraud and waste in
U.S. Government operations. This investigative work became
particularly colorful under the chairmanship of Senator Clyde
Hoey--a North Carolina Democrat who took the chair from Senator
Ferguson after the 1948 elections. The last U.S. Senator to
wear a long frock coat and wing-tipped collar, Mr. Hoey was a
distinguished southern gentleman of the old school. Under his
leadership, the Subcommittee won national attention for its
investigation of the so-called ``five percenters,'' notorious
Washington lobbyists who charged their clients five percent of
the profits from any Federal contracts they obtained on the
client's behalf. Given the Subcommittee's jurisdictional
inheritance from the Truman Committee, it is perhaps ironic
that the ``five percenters'' investigation raised allegations
of bribery and influence-peddling that reached right into the
White House and implicated members of President Harry Truman's
staff. In any event, the fledgling Subcommittee was off to a
rapid start.
What began as colorful soon became contentious. When
Republicans returned to the majority in the Senate in 1953,
Wisconsin's junior Senator, Joseph R. McCarthy, became the
Subcommittee's chairman. Two years earlier, as Ranking Minority
Member, McCarthy had arranged for another Republican Senator,
Margaret Chase Smith of Maine, to be removed from the
Subcommittee. Senator Smith's offense, in McCarthy's eyes, was
her issuance of a ``Declaration of Conscience'' repudiating
those who made unfounded charges and used character
assassination against their political opponents. Although
Senator Smith had carefully declined to name any specific
offender, her remarks were universally recognized as criticism
of McCarthy's accusations that communists had infiltrated the
State Department and other government agencies. McCarthy
retaliated by engineering Senator Smith's removal from the
Subcommittee, replacing her with the newly-elected Senator from
California, Richard M. Nixon.
Upon becoming Subcommittee Chairman, McCarthy staged a
series of highly publicized anti-communist investigations,
culminating in an inquiry into communism within the U.S. Army,
which became known as the Army-McCarthy hearings. During the
latter portion of these hearings, in which the parent Committee
examined the Wisconsin Senator's attacks on the army, Senator
McCarthy recused himself, leaving South Dakota Senator Karl
Mundt to serve as Acting Chairman of the Subcommittee. Gavel-
to-gavel television coverage of the hearings helped turn the
tide against McCarthy by raising public concern about his
treatment of witnesses and cavalier use of evidence. In
December 1954, in fact, the Senate censured Senator McCarthy
for unbecoming conduct; in the following year, the Subcommittee
adopted new rules of procedure that better protected the rights
of witnesses. It had taken some years, but these developments
finally vindicated the courageous stand of Senator Margaret
Chase Smith.
In 1955, Senator John McClellan of Arkansas began 18 years
of service as Chairman of the Permanent Subcommittee on
Investigations. Senator McClellan appointed the young Robert F.
Kennedy as the Subcommittee's Chief Counsel. That same year,
Members of the Subcommittee were joined by members of the
Senate Labor and Public Welfare Committee on a special
committee to investigate labor racketeering. Chaired by Senator
McClellan and staffed by Kennedy and other Subcommittee staff
members, this special committee directed much of its attention
to criminal influence over the Teamsters Union, most famously
calling Teamsters' leaders Dave Beck and Jimmy Hoffa to
testify. The televised hearings of the special committee also
introduced Senators Barry Goldwater and John F. Kennedy to the
Nation, as well as leading to passage of the Landrum-Griffin
Labor Act. After each day's hearings, moreover, Robert Kennedy
and other staff members, including Pierre Salinger and Kenneth
O'Donnell, would meet in the Committee's back room to plan
strategies for Senator John Kennedy's upcoming 1960
presidential campaign. As Ruth Watt, the Subcommittee's Chief
Clerk, observed: ``They were running for President in our
office after 5 o'clock in the evening.'' Several of the
Subcommittee's staff members would subsequently join the
Kennedy Administration.
After the special committee completed its work, the
Permanent Subcommittee on Investigations continued to
investigate organized crime. In 1962, the Subcommittee held
hearings during which Joseph Valachi outlined the activities of
La Cosa Nostra, or the Mafia. Former Subcommittee staffer
Robert Kennedy--who had by now become Attorney General in his
brother's administration--used this information to prosecute
prominent mob leaders and their accomplices. The Subcommittee's
investigations also led to passage of major legislation against
organized crime, most notably the Racketeer Influenced and
Corrupt Organizations (RICO) provision of the Crime Control Act
of 1970. Under Chairman McClellan, the Subcommittee also
investigated fraud in the purchase of military uniforms,
corruption in the Department of Agriculture's grain storage
program, securities fraud, and civil disorders and acts of
terrorism. From 1962 to 1970, the Permanent Subcommittee on
Investigations conducted an extensive probe of political
interference in the awarding of government contracts for the
Pentagon's ill-fated TFX (``tactical fighter, experimental'').
In 1968, the Subcommittee also examined charges of corruption
in U.S. servicemen's clubs in Vietnam and elsewhere around the
world.
In 1973, Senator Henry ``Scoop'' Jackson, a Democrat from
Washington, replaced McClellan as the Subcommittee's chairman.
During these years, recalled Chief Clerk Ruth Young Watt--who
served in this position from the Subcommittee's founding until
her retirement in 1979--Ranking Minority Member Charles Percy,
an Illinois Republican, initiated and led many Subcommittee
activities, often working closely in this regard with Georgia
Democrat Sam Nunn, who subsequently succeeded Senator Jackson
as chairman in 1979. As Chairman, Nunn continued the
Subcommittee's investigations into the role of organized crime
in labor-management relations and also investigated pension
frauds.
The regular reversals of political fortunes in the Senate
of the 1980's and 1990's saw Senator Nunn trade chairmanship
three times with Delaware Republican Senator William Roth. Nunn
served from 1979 to 1980 and again from 1987 to 1995, while
Senator Roth served from 1981 to 1986, and again from 1995 to
1996. For his part, Senator Roth led a wide range of
investigations into commodity investment fraud, off-shore
banking schemes, money laundering, and child pornography.
Senator Nunn inquired into Federal drug policy, the global
spread of chemical and biological weapons, abuses in Federal
student aid programs, computer security, airline safety, and
health care fraud. Senator Nunn also appointed the
Subcommittee's first female counsel, Eleanore Hill, who served
as Chief Counsel to the Minority from 1982 to 1986 and then as
Chief Counsel from 1987 to 1995. Ms. Hill subsequently served
as Inspector General at the Department of Defense under Defense
Secretary--and former Republican Senator from Maine--William
Cohen.
In January 1997, Cohen's successor, Republican Senator
Susan Collins of Maine, became the first woman to chair the
Permanent Subcommittee on Investigations. Senator John Glenn of
Ohio became Ranking Minority Member. Senator Collins pledged to
continue the Subcommittee's mission of vigilantly exposing
government malfeasance, social and economic wrongdoing, and
serious violations of the public trust. Her aim was to focus
upon problems that affected the American people in their daily
lives so that the Subcommittee's work would help and protect
the people of Maine and Americans across the Nation. The
following pages describe the Subcommittee's work in this regard
during the 105th Congress.
II. Subcommittee Hearings During the 105th Congress
1. Medicare at Risk: Emerging Fraud in Medicare Programs (June 26,
1997)
In keeping with Senator Collins' emphasis upon protecting
ordinary citizens from fraud, the Subcommittee began the 105th
Congress with a hearing in June 1997 pertaining to emerging
fraud in the Medicare program. This hearing focused upon the
problems of preventing fraud in the enormous--and hugely
important--health care industry.
It is, of course, no overstatement to say that America's
vital health care industry is an economic behemoth; by some
estimates, combined private and public expenditures on health
care constitute 13.6 percent of America's gross domestic
product in 1995 dollars, and this figure is growing. These
spiraling costs are unlikely to abate because the average age
in this country continues to rise. The Nation's largest health
care payor is a public entity, the Medicare program.
Unfortunately, however, the Medicare program has borne the
dubious distinction of appearing on the U.S. General Accounting
Office (GAO) list of government programs ``highly vulnerable to
waste, fraud, abuse and mismanagement'' every year since 1992.
As a result of these program vulnerabilities--and the great
sums of money spent under the Medicare program--the
Subcommittee commenced an investigation into Medicare waste,
fraud, and abuse in May 1997. The aim of this inquiry was both
to help protect the taxpayer from those unscrupulous
individuals who steal billions of dollars from Medicare and to
protect the elderly and disabled Americans who rely on this
important program for their health care needs.
On June 26, the Subcommittee conducted its first public
hearing on this topic. Among the witnesses testifying were
Leslie Aronvitz, Associate Director of Health Financing and
Systems Issues at the GAO, a recognized expert in health care
fraud issues; Bruce C. Vladeck, HCFA's Administrator; Professor
Pamela H. Bucy, Bainbridge Professor of Law at the University
of Alabama Law School, a well-known expert in the area and a
former Assistant U.S. Attorney; Michael F. Mangano, Principal
Deputy Inspector General of the Department of Health and Human
Services; and Charles L. Owens, Chief of the FBI's Financial
Crimes Section. These witnesses testified that waste, fraud,
and abuse occur throughout the health care industry, including
the areas of home health care, medical equipment and supplies,
nursing homes, laboratory services, hospitals, and managed
care. The Subcommittee also heard testimony from Senators
Charles E. Grassley and Tom Harkin of Iowa.
The Subcommittee also heard testimony about some of the
fraudulent schemes that have been used to take advantage of the
Medicare program. Perpetrators of such schemes included the
owner of a Florida home health care agency who billed Medicare
$84,000 for gourmet popcorn, $140,000 for an airplane, $14,000
in company-logo emery boards, and $5,000 to lease a BMW for the
owner's son. Another example involved the chief financial
officer of ABC Home Health Services, Inc.--one of the country's
largest home health care chains--who was convicted of billing
Medicare for more than $14 million in false expenses, including
jewelry and a luxury beach house.
2. Fraud in Micro-Capital Markets Including Penny Stock Fraud
(September 22, 1997)
The Subcommittee's investigations continued in 1997 by
building upon the Subcommittee's long tradition of
investigating securities frauds directed at small investors.
After published reports suggested that investors may lose as
much as $6 billion each year due to fraud in so-called ``penny
stocks,'' the Subcommittee launched an investigation of
securities fraud into the micro-capital (``micro-cap'')
markets. This new investigation focused upon small companies
with relatively low market values, including (but not limited
to) penny stocks.
The Subcommittee staff found that the explosion in the U.S.
stock market that occurred during the mid-1990's brought with
it a sharp increase in securities sales fraud and stock price
manipulation schemes. Rogue brokers, they found, played upon
investors' impressions about the successes of legitimate market
offerings in misrepresenting the potential of their wares in
high-pressured ``cold-call'' presentations built around false
or exaggerated information. In addition to coercive cold-
calling and spreading false information, rogue broker ``boiler
rooms'' also used numerous other tactics to manipulate stock
prices. These tactics included making unauthorized purchases in
consumers' accounts, refusing to execute sell orders in order
to maintain a stock's upward momentum, using unlicensed cold-
callers who were paid ``under the table'' for making sales, and
actually bribing brokers to recommend particular stocks to
unsuspecting consumers.
In its hearing on this subject on September 22, 1997, the
Subcommittee heard from a panel of three victims--Helen
Sprecher, Louis Poggi, and Emile Murnan--who had been coerced
into disastrous purchases by high-pressure ``boiler room''
cold-callers. After aggressively pursuing and convincing the
victims to purchase stocks from them, these rogue brokers
swindled the victims out of thousands of dollars by lying to
them and performing unauthorized trades in their accounts.
Several witnesses from the industry's regulatory agencies
also provided testimony for the Subcommittee. These included
Arthur Levitt, Jr., Chairman of the U.S. Securities and
Exchange Commission; Joseph P. Borg, Director of the Alabama
Securities Commission; and Barry R. Goldsmith, Executive Vice
President of NASD Regulation, Inc. These witnesses described
the extent of micro-cap stock fraud problems currently
affecting the industry, and suggested how such schemes might be
brought under control. In their view, prevention strategies,
tougher civil and criminal enforcement efforts, and a series of
new regulatory initiatives should be examined to control the
micro-cap stock fraud problem. The aim of such a regulatory
program would be to strike the necessary balance--controlling
fraud without damaging the legitimate securities market that
sustains many small businesses in this country.
3. Oversight Review of the Treasury Department's Inspector General
(October 31 and November 3, 1997)
In May 1997, the Subcommittee began an investigation of
published allegations against the Department of the Treasury's
Office of Inspector General (OIG). These allegations concerned
the OIG's contracting practices with respect to two consulting
contracts. The GAO's Office of Special Investigations (OSI)
assisted the Subcommittee in conducting its review of the
Treasury OIG's contracting practices. The Subcommittee's
inquiry also examined events surrounding the OIG's
investigation of testimony provided by two career Secret
Service special agents at a July 1996 hearing before the House
Government Reform and Oversight Committee regarding the FBI
``Filegate'' matter.
After a 5-month investigation, the Subcommittee held
hearings on October 31 and November 3, 1997. At the first
hearing, the Subcommittee heard testimony from three GAO
representatives--Robert P. Murphy, General Counsel; Donald J.
Wheeler, OSI's Deputy Director; and Theodore Barreaux,
Associate Director of the Accounting and Information Management
Division--as well as from Valerie Lau, the Treasury
Department's Inspector General. At the second hearing, the
Subcommittee heard testimony from Richard J. Gallo, President
of the Federal Law Enforcement Officers Association, and from
three representatives from the Treasury's OIG: James M. Cottos,
Senior Technical Advisor to the Inspector General; Emily P.
Coleman, Special Agent-in-Charge of the Eastern Region; and
Inspector General Lau.
The Subcommittee was gravely concerned about the problems
it found at the Treasury OIG. As Senator Collins put it, the
Subcommittee's findings of misconduct were ``troubling, not
only because they involve the waste of government resources and
mismanagement of a Federal office, but also because they
involve an Inspector General, the very person charged with
protecting the public from waste, fraud and abuse.''
Inspector General Lau announced her resignation on January
16, 1998.
4. Medicare Fraud Prevention: Improving the Medicare Enrollment Process
(January 29, 1998)
The Subcommittee's investigation into Medicare fraud
continued in the wake of its June 26, 1997 hearing, focusing
upon several weaknesses this inquiry revealed in the procedures
and processes used to enroll Medicare providers. These
weaknesses have allowed numerous individuals or entities, with
little or no experience as health care providers, to enter the
Medicare program and thereby to steal millions of dollars from
the Nation's taxpayers. The Subcommittee's hearing on this
subject, on January 29, 1998, revealed that there existed
essentially no screening process for those applying to become
Medicare providers. Indeed, despite the high financial and
public health stakes involved, it was much easier to obtain a
Medicare provider number than to obtain a liquor license.
Witnesses at the Subcommittee's January 1998 hearing
included one such Medicare criminal, who wished to have his
identity concealed. Mr. Smith--a pseudonym--had stolen
approximately $32 million from the Medicare program until being
caught and convicted.\4\ He testified that it had been very
easy for him to obtain his Medicare provider number: He simply
filled out an application, mailed it to the appropriate office,
and was thereafter simply given a provider number over the
telephone. No one ever scrutinized his application or performed
a site visit to verify that his business actually existed.
After receiving the provider number, Smith paid recruiters to
acquire Medicare beneficiary numbers, with which he billed
Medicare month after month, ostensibly for supplying
nutritional supplements to the elderly--supplements which he
never actually provided. Through such fraud, he received
between $180,000 to $200,000 in Medicare payments every month.
Smith told the Subcommittee that he and his criminal colleagues
considered Medicare to be a gold mine, adding that the
government had made it easy for him to rob the taxpayer by not
bothering to require that he produce any documents in support
of the false bills he submitted to Medicare.
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\4\ Concealing his identity by testifying from behind a screen,
this convicted felon told the Subcommittee that ``this is a dangerous
world and I sincerely fear for my safety.''
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In addition to Smith, the Subcommittee also heard from
several expert investigators with experience in Medicare fraud
issues. These included John M. Frazzini, a former Subcommittee
investigator; John E. Hartwig, Deputy Inspector General for
Investigations at HHS's Office of Investigations (OI); Cathy E.
Colton, Supervisory Special Agent of OI's Miami Sub-Office; H.
Donna Dymon, Ph.D., former California Team Leader of HCFA's
anti-fraud initiative, Operation Restore Trust (ORT); Dewey
Price, ORT's South Florida Team Leader; and Susan A. Frisco, a
Special Agent from the New York Field Office of the HHS Office
of Inspector General.
5. Fraud on the Internet: Scams Affecting Consumers (February 10, 1998)
With a large and growing number of American households with
access to the Internet through personal computers, the use of
the Internet for consumer purchases, banking, and other
electronic commerce is increasing rapidly. With this growth in
commerce, however, comes the risk of new kinds of fraud. Credit
card fraud has already been identified by law enforcement
agencies as a major problem in Internet commerce, and new types
of Internet-related crime have been proliferating. Financial
institutions and other businesses with on-line financial
services, for example, have been affected by unauthorized
criminal intrusions into their systems. According to published
reports, ``electronic bank robberies'' net on average
approximately $250,000, and only 2 percent of those
``cybercrimes'' are ever detected and investigated, let alone
solved. Such statistics compare alarmingly to conventional bank
robberies, which net on average approximately $7,500--and with
80 percent of the robbers eventually being apprehended.
Concerned about Americans' vulnerability to Internet-
related fraud, the Subcommittee began an investigation into the
extent to which such criminal activities affect commerce on the
Internet. The Subcommittee's first hearing on this subject
occurred on February 10, 1998, and focused upon traditional
types of fraud perpetrated over the Internet. At this hearing,
the Subcommittee heard testimony from Susan Grant, Director of
the National Fraud Information Center and Vice President for
Public Policy at the National Consumers' League; Tatiana Gau,
Vice President for Integrity Assurance at America Online, the
world's largest Internet provider; Barry Wise, C.P.A., a victim
of Internet fraud; and Hon. Robert Pitofsky, Chairman of the
Federal Trade Commission.
The outcome of the hearing determined that more consumer
education was required so that consumers could distinguish more
easily between fraudulent and genuine offers on the Internet
without stifling legitimate commerce. The hearing also
determined that consumer complaints regarding Internet fraud
need to be vigorously pursued by the appropriate authorities
and that these agencies have the resources that are required to
do the job.
6. Unauthorized Long Distance Switching ``Slamming'' (February 18,
1998--Field Hearing in Portland, Maine)
In 1996, the Federal Communications Commission (FCC)
received over 16,000 complaints from consumers about telephone
``slamming''--the unauthorized switching, by a long distance
carrier, of a consumer's long distance service--making this the
number one consumer complaint to the FCC. The FCC, which is
responsible for investigating complaints of telephone slamming,
has adopted regulations against slamming and taken numerous
actions against companies that engage in this practice.
Nevertheless, despite current regulations prohibiting slamming,
it continues to be used by long distance carriers against
unwitting consumers. Concerned at the scope of this continuing
problem, the Subcommittee began an investigation into the
prevalence of telephone slamming, the adequacy of current
regulations, and FCC enforcement to prevent this insidious
practice.
The Subcommittee held a field hearing concerning telephone
slamming on February 18, 1998 in Portland, Maine. During this
hearing, Maine consumers victimized by slamming practices
explained how some long distance companies used fraudulent or
deceptive practices to change their telephone service without
their knowledge or approval. Witnesses at this hearing included
the Hon. Susan Ness, FCC Commissioner; Daniel Breton, Director
of Governmental Affairs for Bell Atlantic; Susan Grant, Vice
President for Public Policy of the National Consumers' League;
and three victims of telephone slamming practices--Susan
Deblois of Wintrhop, Maine; Pamela Corrigan of West Farmington,
Maine; and Steve Klein of Portland, Maine.
This hearing showed how some long distance companies used
fraudulent practices to change their telephone service.
Witnesses used words such as ``stealing,'' ``criminal,'' and
``break-in'' to describe practices employed by unscrupulous
telephone companies to pick up customers and boost profits.
Pamela Corrigan testified that she was sent an unsolicited
``welcome package'' in the mail, which looked like the stacks
of junk mail that consumers receive every day. However, this
``junk mail'' was not what it appeared to be. This ``welcome
package'' automatically signed her up for a new long distance
service unless she returned a card rejecting the change. She
was amazed and appalled that it was possible for a company to
change her long distance service simply because she did not
respond that she did not want their service. Susan Deblois
testified that, when she was slammed, her children were unable
to use the 800 number she had for them to call home in case of
an emergency.
The hearing also illustrated how slamming not only affects
families but also small businesses and communities. For
example, Steve Klein, the owner of Mermaid Transportation
Company in Portland, Maine, testified that his business phone
lines, which are critical to his livelihood, were tied up for 4
days when he was slammed by a long-distance telephone reseller
which falsely represented itself as AT&T. Similarly, Ms.
Corrigan, who is the town manager of Farmington, Maine,
reported that the town's phone lines were also slammed. It
became clear from the hearing that no one is immune from this
illegal activity.
Also, at this hearing, FCC Commissioner Susan Ness
testified about the FCC's efforts to control slamming. The
Commissioner acknowledged that the FCC really does not know how
many of the 50 million carrier selection changes each year
result in slamming, since many slammed consumers resolve the
problem without bringing it to the FCC. However, the
Commissioner did offer the conservative estimate that, if just
one percent of the carrier changes made each year are the
result of unauthorized changes in service, over 500,000
households are slammed each year.
The hearing also made it clear that the FCC must step up
its enforcement efforts against slammers. Senator Collins
pointed out to the FCC that the States are much more aggressive
than the FCC in taking enforcement actions against slammers.
The FCC Commissioner agreed that the relatively small fines
imposed on slammers by the FCC might be considered by the
company as just the cost of doing business, rather than a real
deterrent to slamming. In addition, the Commissioner agreed
that the FCC could increase its enforcement against slammers
and that establishing criminal penalties for slamming would
help to reduce the problem.
7. The Exploding Problem of Telephone Slamming in America (April 23,
1998)
Building upon the record established in its Portland field
hearing in February, the Subcommittee held a second hearing on
telephone slamming on April 23, 1998. At this hearing, GAO
investigators presented the results of a case study they had
undertaken at the Subcommittee's request, and Members discussed
its findings with the head of the FCC. The GAO study focused
upon one particular long distance telephone company and
revealed that this company apparently slammed over 500,000
consumers at one time, billed consumers over $20 million, and
left unpaid bills to long distance carriers of nearly $4
million--all while successfully eluding Federal officials. The
Subcommittee heard testimony at this hearing from the Hon.
William E. Kennard, Chairman of the FCC, and from Eljay B.
Bowron, Assistant Comptroller General for Special
Investigations at GAO.
Mr. Bowron testified that long distance companies engage in
slamming because there is a financial incentive to do so and
that it is easy for fraudulent individuals to enter the long
distance market because there are no controls in place at the
FCC to screen potential providers. As part of its
investigation, GAO investigators filed fictitious information
with the FCC without any difficulty that gave the investigators
authority to ``resell'' long distance services. This authority
gives the applicant the ability to enter the long distance
market and slam consumers with little chance of being caught.
In addition, to illustrate how an entity engages in slamming,
Mr. Bowron presented a case study of Daniel Fletcher, an
individual who operated as a long distance reseller under at
least eight different company names, slamming thousands of
consumers. According to the findings in the GAO report, Mr.
Fletcher slammed or attempted to slam over 500,000 consumers,
billed consumers for at least $20 million in long distance
charges, and left at least $3.8 million in unpaid bills to
telecommunications industry firms. Furthermore, Mr. Bowron
testified that the FCC took over 2 years to take final action
against the Fletcher companies and has been unable to locate
Mr. Fletcher.
Chairman Kennard testified that current FCC rules do not do
enough to protect consumers against slamming and that tougher
rules are needed take the profit out of slamming. The Chairman
explained that the FCC has proposed new rules to improve its
ability to protect consumers from this fraudulent practice.
However, the new rules had not yet been adopted by the FCC. The
Chairman also testified that the FCC took the unprecedented
action of revoking the operating authority of the Fletcher
companies on April 21, 1998, and fined these companies $5.7
million.
The Subcommittee learned that billing practices in the
telecommunications industry allow long distance companies to
use misleading company names that are difficult for consumers
to identify on their phone bills, and that the States have been
much more aggressive than the FCC in taking enforcement action
against companies that repeatedly slam consumers.
8. The Safety of Food Imports--An Overview (Part I) (May 14, 1998)
In June 1997, the Subcommittee began an in-depth
investigation into the safety of food imported into the United
States. According to the GAO, there are an estimated 81 million
cases of food borne illnesses and as many as 9,100 related
deaths each year. The two Federal agencies that are primarily
responsible for monitoring food imports are the Agriculture
Department's Food Safety and Inspection Service (FSIS) and the
HHS's Food and Drug Administration (FDA). The FSIS inspects
domestic and imported meat, poultry, and eggs to ensure safety,
wholesomeness, and accurate labeling while the FDA inspects all
other domestic and imported food products. Food imports to the
United States have increased dramatically in recent years, and
the FSIS and FDA have not kept up. Today, they inspect a
smaller proportion of food products than ever.
Concerned at the possibility that this dynamic might be
putting American consumers increasingly at risk, the
Subcommittee's inquiry aimed to determine: (i) the extent to
which some imported food poses health risks to U.S. consumers;
(ii) whether Federal agencies effectively and efficiently use
their existing resources; and (iii) whether the Nation's food
safety system is adequate to prevent unsafe food from entering
the United States. Chairman Collins requested that GAO assist
the Subcommittee in its investigation by conducting a review of
the adequacy of the procedures used to ensure the safety of
food imports, specifically focusing on the processes used by
Federal agencies to monitor fruit and vegetable imports--the
fastest growing sector of imported food products.
The Subcommittee held the first of its four public hearings
on the safety of food imports on May 14, 1998. The Subcommittee
heard testimony from Dr. Mary Ellen Camire, Department of Food
Science and Human Nutrition at the University of Maine; Robert
E. Robertson, Associate Director for Food and Agricultural
Issues at the GAO; and Reggie Jang, a former Consumer Safety
Inspector for the Food and Drug Administration. Dr. Camire
testified that preventative measures at the (foreign) farm
level are very important because border inspection procedures
involve testing relatively few shipments of imported food and
extensive microbiological and chemical testing of all imports
is not feasible. Mr. Robertson, Associate Director, Food and
Agriculture Issues for the GAO discussed the key findings of
the year-long GAO review requested by Chairman Collins: (1)
limitations in FDA's authority make it unnecessarily difficult
to ensure food safety; (2) FDA's and FSIS' procedures for
selecting shipments to review result in the ineffective
targeting of inspection resources; and (3) weaknesses in FDA
and Customs controls allow unscrupulous importers to market
unsafe products. Finally, Mr. Jang described techniques used by
unscrupulous importers to circumvent current import procedures.
9. The Safety of Food Imports: From Farm to the Table--A Case Study of
Tainted Imported Fruit (Part II) (July 9, 1998)
The Subcommittee held its second hearing on the safety of
food imports in July 1998. During this hearing, the witnesses
laid out a case study of tainted imported fresh fruit ``from
the farm to the table,'' focusing on contamination problems
with such imports and how the Centers for Disease Control (CDC)
and other public health agencies investigate outbreaks of
foodborne illness. The first witness was Dr. Stephanie A.
Smith, a food scientist and Subcommittee investigator who
traveled to Guatemala to observe first-hand the production and
export of fresh raspberries. The Subcommittee also heard from
Dr. Jeffery Foran, an environmental scientist and a consumer
who contracted a Cyclospora infection after eating contaminated
raspberries. The final witness, Dr. Stephen Ostroff, the
Associate Director for Epidemiologic Science of the CDC's
National Center for Infectious Diseases, provided an overview
of CDC's foodborne disease surveillance systems and described
the process of outbreak investigation and ``traceback'' to the
source of contamination.
10. ``Cramming''--An Emerging Telephone Billing Fraud (July 23, 1998)
Like telephone ``slamming,'' another emerging consumer
fraud examined by the Subcommittee during the 105th Congress is
the practice of telephone ``cramming''--the billing of
unauthorized charges on a consumer's telephone bill. At the
Subcommittee's cramming hearing on July 23, 1998, Members heard
testimony from: Susan Grant, Vice President for Public Policy
at the National Consumers' League; Lawrence E. Strickling,
Deputy Chief of the FCC's Common Carrier Bureau; Eileen
Harrington, Assistant Director for Marketing Practices at the
Federal Trade Commission's Bureau of Consumer Protection; and
Roy M. Neel, President and Chief Executive Officer of the U.S.
Telephone Association.
This hearing was designed to raise consumer awareness and
determine what was being done to control the emerging problem
of telephone ``cramming''. The hearing highlighted the scope
and nature of cramming, educated consumers about cramming,
determined what was being done to control the practice, and
explored further regulatory and legislative remedies that could
be implemented to stop cramming.
Susan Grant, from the National Consumer's League, discussed
consumer complaints about cramming, what consumers can do to
protect themselves from unauthorized charges, and what changes
need to be made in telephone billing practices to control
cramming. Roy Neel, from USTA, discussed the telephone billing
industry's efforts to control cramming, focusing on the anti-
cramming guidelines that were developed by key representatives
of the industry. Larry Strickling, Deputy Chief of the FCC's
Common Carrier Bureau (the Bureau responsible for telephone
regulations and enforcement), discussed FCC's anti-cramming
efforts, including consumer awareness programs, pending
enforcement actions, and efforts to encourage industry
guidelines to prevent cramming. Eileen Harrington, Associate
Director for Marketing Practices, discussed FTC's efforts to
stop cramming, including consumer awareness and enforcement
actions. She also discussed additional legislative changes that
may be required to enable FTC to take enforcement actions
against all companies, including telecommunications carriers.
11. The Safety of Food Imports--Fraud and Deception in the Food Import
Process (Part III) (September 10, 1998) (Combined with Part IV,
September 24 and 25, 1998)
In September 1998, the Subcommittee held its third hearing
on the safety of imported food. This hearing examined the
specific ways in which unscrupulous importers exploit
weaknesses in the U.S. food safety system. The witnesses at
this hearing were Lawrence J. Dyckman, Director for Food and
Agriculture Issues at the GAO; Keith Oleson, GAO's Assistant
Director for Food and Agriculture Issues; Dennis Richards, a
GAO investigator; Richard J. Hoglund, Deputy Assistant
Commissioner for the U.S. Customs Service's Office of
Investigations; Philip Metzger, Director of the Customs
Service's Trade Compliance Team; and ``Mr. Broker'' (a
pseudonym), a former customer broker now serving as a
confidential informant.
The GAO witnesses testified that importers' ability to
retain custody over food products even during the inspection
process made it much easier for unscrupulous operators to bring
unsafe goods into the United States, that shipments rejected by
inspectors are not marked to show such rejection (thereby
making it easier to bring them in through another port of
entry), that Customs and FDA seldom coordinated their efforts
to prevent unsafe imports, and that current penalties were not
effective deterrents. The GAO officials also detailed seven
recent Customs Service investigations into the devices used by
unscrupulous importers to bring tainted food products into the
country, after which ``Mr. Broker'' described his experiences
with such schemes.
12. National Cancer Institute's Management of Radiation Studies
(September 16, 1998)
The Subcommittee's next hearing focused upon the handling
of an important study of radiation risks by the National Cancer
Institute (NCI). In 1983, Congress required HHS to conduct a
study to determine exposures and doses resulting from the
release of radioactive iodine (I-131) from U.S. atmospheric
nuclear weapons testing at the Nevada Test site between the
mid-1940's and the early 1960's, and assess the risk of thyroid
cancer associated with doses of I-131. NCI did not issue this
study until fully 14 years later, on October 1, 1997--even
though the report had essentially been completed as early as
1992. Furthermore, even when it was finally issued, the report
did not fully comply with the requirements set forth by
Congress in that it neglected to discuss any increased public
risk of thyroid cancer from I-131.
Led by investigators from the Minority Staff, the
Subcommittee conducted an inquiry into NCI's management of this
study. Witnesses at the NCI hearing included: Senator Tom
Harkin of Iowa; Dr. Owen Hoffman, President of Senes Oak Ridge,
Inc.; Dr. Barry L. Johnson, Assistant Administrator of the
Agency for Toxic Substances and Disease Registry at HHS; Dr.
Bruce Wachholz, Chief of the Radiation Effects Branch of NCI;
Dr. William F. Raub, Deputy Assistant Secretary for Science
Policy at HHS; and Dr. Richard Klausner, NCI's director.
The Subcommittee's hearing focused on accusations of
mismanagement in NCI's handling of this important study, and
the resulting delay in informing the American public about how
it may have been affected by nuclear fallout. NCI witnesses
acknowledged that the I-131 report should indeed have been
released earlier, attributing some of NCI's inattention to the
mistaken belief that the public did not have a strong interest
in the results of the study. In light of these problems, the
hearing also addressed alleged NCI mismanagement of two similar
ongoing studies, including one addressing the health effects of
the nuclear accident at Chernobyl in the former Soviet Union in
1986. Of particular concern was HHS' lack of department-wide
policies or guidelines to govern the conduct of radiation
health effects research, even though its agencies perform many
of those studies for the government. Witness testimony also
explored the differing approaches to health effects research
taken by various agencies within HHS. HHS officials, in turn,
pledged to review the practices and procedures for such dose
reconstruction studies at NCI and CDC and to arrange an
independent review of ongoing projects.\5\
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\5\ After the Subcommittee hearing, Congress gave CDC an additional
$1.85 million to conduct a broader study of the health consequences of
nuclear weapons tests. See H.R. 4328 (Omnibus Consolidated and
Emergency Supplemental Appropriations Bill for Fiscal Year 1999). This
bill also required HHS to conduct a review of NCI's Chernobyl study and
to inform Congress of its plans and recommendations for the development
and implementation of guidelines and policies to govern radiation
health studies in the future.
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13. Improving the Safety of Food Imports (Part IV) (September 24-25,
1998) (Combined with Part III, September 10 1998)
The Subcommittee held 2 more days of hearings on the safety
of imported food in September 1998. These hearings focused upon
possible legislative, administrative, and regulatory remedies
for the weaknesses in the U.S. food safety system identified
during the course of the Subcommittee's investigation.
Witnesses at the hearing were: Senators Paul Coverdell of
Georgia, Edward Kennedy of Massachusetts, Barbara Mikulski of
Maryland, and Tom Harkin of Iowa; William Schultz, Deputy
Commissioner for Policy at the FDA; Thomas J. Billy,
Administrator of the Department of Agriculture's Food Safety
and Inspection Service (FSIS); Raymond W. Kelly, Commissioner
of the U.S. Customs Service; and Dr. Sanford A. Miller of the
National Academy of Sciences' Committee to Ensure Safe Food.
The Subcommittee also heard from Timothy M. Hammonds, President
and Chief Executive Officer of the Food Marketing Institute;
Dr. Stacey A. Zawel, Director for Scientific and Regulatory
Affairs at the Grocery Manufacturers of America; Dane T.
Bernard, Vice President for Food Safety Programs at the
National Food Processors Association; Dr. Nancy Nagle, Senior
Advisor for Food Safety at the United Fresh Fruit and Vegetable
Association; Dr. Richard Levinson, Associate Executive Director
for Programs and Policy at the American Public Health
Association; Carol Tucker Foreman, Coordinator of the Safe Food
Coalition; Dr. Ruth Kava, Director of Nutrition at the American
Council on Science and Health; and Robert Hahn, Director for
Legal Affairs and Research at Public Voice for Food and Health
Policy.
While there was no overriding consensus among the 16
witnesses, some of the recommendations provided were shared
across witness categories. For example, both the industry and
consumer organizations want increased funding for research and
consumer education. Both the industry groups and the agencies
recognize the need for enhanced coordination between the FDA
and the U.S. Customs Service. Both the consumer groups and the
FDA want Congress to grant FDA equivalency authority. Two
additional statements of interest were provided. First, both
the United Fresh Fruit and Vegetable Association and the
Grocery Manufacturers Association want the United States to
more aggressively participate in international standard-setting
activities, specifically Codex Alimentarius. Second, the Food
Marketing Institute suggested creation of a revenue-neutral
cross-utilization plan to permit FSIS and FDA to share both
financial and human resources.
14. Medicare Fraud Prevention and Enforcement Efforts (December 9,
1998--Field Hearing in Chicago, Illinois)
Building upon its previous investigation and hearings into
Medicare fraud, the Subcommittee held a field hearing on this
subject in Chicago, Illinois in December 1998. This hearing
examined some recent successful Medicare fraud prevention and
enforcement efforts, particularly Operation Restore Trust (ORT)
and a local senior citizen outreach and education program in
Illinois. ORT was a major 2-year effort launched by HHS' Office
of Inspector General (HHS-OIG) in May 1995, which focused on
five States--California, Florida, New York, Texas, and
Illinois--that contain 40 percent of Medicare beneficiaries.
The project targeted three areas the HHS-OIG had identified
with systemic health care fraud: Home health agencies, nursing
homes, and durable medical equipment suppliers. The hearing
also examined the congressionally-authorized Health Care Anti-
Fraud, Waste and Abuse Community Volunteer Demonstration
Program, which recruited and trained retired professionals to
serve as local, volunteer resources, and educators--also
enlisting them in identifying and reporting health care fraud
and abuse.
At this Chicago field hearing, the Subcommittee heard
testimony from: Dorothy Collins, Regional Administrator of
HCFA; James A. Kopf, Director of HHS-OIG's Criminal
Investigations Division Office; Barbara Coyle, a volunteer with
the Suburban Area Agency on Aging in Oak Park, Illinois; and
Jonathan Lavin, Executive Director of the Suburban Area Agency
on Aging. Testimony revealed that Federal taxpayers were often
billed for home health services that were either overused, not
medically necessary, or not actually covered by Medicare. The
Subcommittee found that ORT, however, had great success in
combating such fraud, and that the retired volunteers recruited
by the demonstration program were proving to be an important
bulwark in the fight to identify and stop such schemes and to
educate health care consumers about such issues.
III. Legislative Activities During the 105th Congress
The Permanent Subcommittee on Investigations does not have
legislative authority, but because its investigations play an
important role in bringing issues to the attention of Congress
and the public, the Subcommittee's work frequently contributes
to the development of significant legislative initiatives. The
Subcommittee's activities during the 105th Congress were no
exception, with Subcommittee hearings and Members playing
prominent roles in the development of a number of legislative
initiatives.
S. 1740--Slamming Protection Act of 1998
Sparked by the findings of the Subcommittee's investigation
into American consumers' growing problems with telephone
``slamming''--the unauthorized switching of telephone service
subscribers from one telecommunications carrier to another--
Senators Collins and Durbin introduced a bill to amend the
Communications Act of 1934 to improve Federal safeguards
against such practices. Portions of this legislation were
included in legislation introduced by Senator McCain, chairman
of the Commerce Committee, which passed the Senate by a vote of
99 to 0 on May 12, 1998. This bill did not become law by the
close of the 105th Congress, however, because agreement could
not be reached in conference after the House passed a less
encompassing slamming bill.
The Collins/Durbin provisions would have established new
criminal penalties for intentional slamming, the same as those
for any other Federal crime: A maximum of $100,000 and 1 year
imprisonment for a misdemeanor, and $250,000 and 5 years
imprisonment for a felony. In addition, anyone convicted of
intentional slamming would be disqualified from being a
telecommunications service provider. This would provide an
additional enforcement tool against those individuals that
engage in the most egregious of slamming violations, and would
not prevent the Federal Government from using any other civil
or criminal remedy to stop those who intentionally defraud
consumers by slamming.
Second, the provisions would increase consumer protection
and give control back to consumers by taking the financial
incentive away from companies that engage in slamming. Rather
than paying the slamming company, consumers could pay their
original carrier at their previous rate. This is a more
reasonable approach to removing the financial incentive for
slamming than absolving subscribers of any liability for
telephone charges when they are slammed, as was proposed by the
FCC Chairman, William Kennard.
Finally, the Collins/Durbin provisions encouraged better
FCC enforcement against slamming by requiring all
telecommunications carriers to report slamming violations, on a
quarterly basis, to the FCC in a summary report. Currently,
there is no central repository for slamming complaints, and the
FCC must rely on consumers to write or call the FCC to report a
slamming incident. A universal reporting requirement would
increase the FCC's ability to learn which carriers are engaging
in widespread slamming and take immediate enforcement action
against them.
S. 2167--Inspector General Act Amendments of 1998
As an outgrowth of the Subcommittee's hearings on problems
in the office of the Treasury Department's Inspector General,
Senators Collins and Grassley introduced a bill to improve the
accountability and efficiency of Offices of Inspector General
(OIGs) throughout the Federal system. This bill proposed
amendments to the Inspector General Act that would: (i)
establish a 9-year renewable term of office for presidentially-
appointed Inspectors General; (ii) require that all OIGs
undergo an external review, not less than every 3 years, to
evaluate their management and controls of contracts,
appropriated funds, and personnel actions; (iii) require OIGs
to submit annual (rather than semiannual) reports to Congress;
(iv) increase an Inspectors General's annual salary from
$118,400 (Executive Level 4) to $125,900 (Executive Level 3);
and (v) consolidate selected smaller OIGs into larger, more
efficient, department-wide offices. The bill did not become law
by the close of the 105th Congress, but Chairman Collins
intended to reintroduce a second version of the bill in the
106th Congress.
S. Amdt. 934--Oversight of Treasury Department Inspector General
In legislative action also growing out of the
Subcommittee's investigation into abuses by the Treasury OIG,
Senators Collins, Shelby and Grassley introduced an amendment
to prohibit the Treasury Department's Inspector General from
spending any funds on consulting contracts and to make a
corresponding reduction in the Inspector General's budget by $1
million. This amendment was necessary because the
Subcommittee's investigation revealed clear and credible
evidence that the Inspector General had abused her contracting
authority by spending taxpayer dollars on management studies of
doubtful value and excessive cost. The amendment was later
adopted as part of the Treasury, Postal Service, and General
Government Appropriations Act (Public Law 105-61).
IV. GAO Reports and Committee Print
In connection with its investigations into the above
topics, the Subcommittee made extensive use of the resources
and expertise of the General Accounting Office, the various
U.S. Government Inspectors General, and other entities. In the
process, the Subcommittee requested a number of reports and
studies on issues of great importance to Congress and to U.S.
consumers. Among these reports were the following:
Inspectors General: Contracting Actions By Treasury Office of Inspector
General (General Accounting Office, October 1997)
In May 1997, after allegations had been raised of
misconduct against the Treasury Department's Inspector General,
Chairman Collins requested that GAO's Office of Special
Investigations assist the Subcommittee in determining the facts
and circumstances surrounding the events at issue.
Specifically, Chairman Collins requested that GAO examine the
Department of Treasury's award, without full and open
competition, (a) of a sole-source contract to Sato and
Associates for a management study of the Treasury Department's
OIG and (b) of a consulting services contract to Kathie M.
Libby.
GAO reported that, shortly after Inspector General Valerie
Lau's confirmation, she notified the Treasury's Procurement
Services Division that she wanted Frank Sato--an old personal
friend--to perform a management review. The Procurement
Division subsequently awarded a sole-source management study to
Sato and Associates on the basis of ``unusual and compelling
urgency.'' Although Inspector General Lau stated that the need
to limit competition was urgent because of the need to make
reassignments in the senior executive ranks and to marshal the
resources needed to conduct audits, GAO found that there was
insufficient urgency to justify limiting competition in this
fashion. GAO also reported that the price of the Sato and
Associates contract for the Treasury OIG effort appeared to be
artificially high, especially in light of the fact that the
same firm had performed a similar review of the Department of
Interior OIG for approximately $62,000 less.
In September 1995, the Procurement Division also awarded a
time-and-materials consulting services contract to Kathie M.
Libby--doing business as KLS--to review and analyze an Office
of Personnel Management (OPM) report on morale and diversity
problems in the OIG office and assist OIG managers and staff
concerning goals identified in the OPM study. The contract was
also awarded with only very limited competition on the basis of
``unusual and compelling urgency.'' GAO reported that the
justification for limiting competition was unreasonable in this
case as well, since delay would not have prevented Inspector
General Lau from addressing the problems in question. In
addition, GAO identified a pattern of careless management in
the procurement process and in oversight of performance under
the KLS contract; this careless management resulted in a four-
fold increase in the contract's total price and required a 1-
year extension to the contract's performance period. Finally,
GAO found that KLS received payments for work that had not been
authorized.
Oversight Review of the Office of Inspector General, U.S. Department of
The Treasury (S. Prt. 105-42, January 30, 1998)
After a 5-month investigation and 2 days of hearings
examining management problems at the Treasury OIG, the
Subcommittee concluded that substantial evidence suggested that
the office had violated Federal laws in the sole-source
procurement of its consulting contracts with Sato and
Associates and KLS. Specifically, the Subcommittee concluded
that there was insufficient urgency for the OIG to award the
Sato and Associates contract on a sole-source basis, making
this award a violation of applicable procurement statutes and
regulations. The OIG, the Subcommittee found, also violated
applicable statutes and regulations by failing to request
offers from as many potential sources as practicable under the
circumstances. Inspector General Lau was aware, for example, of
at least three other contractors who could have done the work
she gave to her friend Frank Sato.
Regarding the KLS contract, the Subcommittee also concluded
that Inspector General Lau's justification for limiting
competition was also unreasonable, and that two modifications
to that contract clearly fell outside its scope. The
Subcommittee's investigation, in fact, identified a pattern of
careless management in the procurement process and in the OIG's
oversight of performance under the KLS contract. The OIG
engaged in poor procurement planning which resulted in five
contract modifications, a four-fold increase in the contract's
total price, and a 1 year's extension to the period of
performance. In addition, the OIG paid for work that was not
authorized by the contract or modifications, and payments were
made to KLS without verification that work had been
accomplished and without receipts for travel costs incurred by
the contractor.
The Subcommittee found additional problems with the
Treasury OIG's handling of issues relating to the controversy
popularly known as ``Filegate''--which began when the sensitive
FBI background files of former Bush Administration officials
and other prominent Republicans were acquired by Clinton
Administration officials at the White House. Testimony given by
White House officials to the House Committee on Government
Reform and Oversight apparently conflicted with that given by
two career Secret Service agents about the procedures used by
the Secret Service to generate lists of White House
passholders. This conflict led the Treasury OIG to begin an
investigation into the Secret Service agents for perjury and/or
false statements.
In looking into the OIG's handling of this investigation,
the Subcommittee found the OIG's work to have been marked by
inconsistencies and confusion from the start. The Subcommittee
received conflicting reports about (a) who directed the opening
of the investigation, (b) the nature and scope of the case, (c)
who authorized or knew of changes in its scope, and (d) why
accurate and complete information about the existence and
nature of the investigation was concealed from Congress despite
repeated inquiries by the Senate and the House. Indeed, the
Subcommittee found that the Treasury OIG had badly mishandled
the inquiry--destroying documents, unfairly and inappropriately
harassing and humiliating the two Secret Service agents, and
misleading Congress about the nature of this investigation.
Telecommunications: Telephone Slamming and Its Harmful Effects (General
Accounting Office, April 1998)
The General Accounting Office's Office of Special
Investigations conducted a 4-month investigation of the types
of entities that engage in slamming and the process by which
such entities are able to defraud consumers.
This report provided evidence that shows telephone
resellers are responsible for a disproportionate number of
slamming complaints. While all telecommunications carriers have
had slamming complaints against them, resellers are more often
involved in many of the more fraudulent slamming practices.
The report showed that, because the FCC operates in a
deregulation mode, there are no mechanisms in place to screen
out fraudulent telecommunications providers and prevent them
from entering the market. Even the minimum requirements that
the FCC has in place to issue licenses are not enforced by the
FCC until complaints are lodged against a particular carrier.
To determine how easy it is to get an FCC license and get into
the telecommunications business, GAO investigators filed a
tariff with the FCC for a fictitious telecommunications company
named ``PSI Communications.'' Even though the GAO investigators
did not provide all of the information required, within a day
or so, PSI Communications received an FCC license and was
officially authorized to be a telecommunications provider.
Armed with the FCC license, GAO investigators contacted various
facilities-based carriers, such as Sprint, MCI and AT&T, to see
what requirements they would have to meet to become resellers
for those carriers. Although the GAO investigators did not
pursue this any further, they learned that as long as they
signed an agreement to deliver a certain level of business,
they could operate as resellers without meeting any additional
requirements.
The GAO report also provided information on the enforcement
actions against slamming taken by the States as compared to
those actions taken by the FCC. The evidence shows that the
States have been much more aggressive in their pursuit of
slammers than the FCC has been.
As a case study of slamming, GAO presented the case of
Daniel Fletcher, an individual who operated as a
telecommunications reseller under at least eight different
company names, repeatedly slamming thousands of consumers. By
working with larger telephone resellers and billing agents, Mr.
Fletcher was able to receive at least several million dollars
in advance of billing his so-called customers, most of whom
turned out to have been slammed by the Fletcher companies. When
those resellers or billing agents became aware of the slamming
complaints against one particular Fletcher company, Mr.
Fletcher disappeared and continued to do business using another
of his many fictitious companies.
Only after the FCC received numerous slamming complaints
against the Fletcher companies did the Commission realize that
Mr. Fletcher did not provide the information required by FCC
regulations. Mr. Fletcher filed tariffs, required as a
condition of obtaining an FCC license, for only two of his
companies. The FCC's efforts to locate him were futile, since
his business addresses were all mail box drops and the contact
phone numbers provided in the FCC applications all led to
answering services. As a result, the FCC has not been able to
collect the $80,000 fine it assessed against one of the
Fletcher companies. In June 1997, the FCC issued a proposed
order to revoke the operating authority of the Fletcher
companies, but has yet to finalize that order. Technically,
under the law, Mr. Fletcher is still allowed to offer
telecommunications services.
Food Safety: Federal Efforts to Ensure the Safety of Imported Foods Are
Inconsistent and Unreliable (General Accounting Office, April
1998)
In May 1998, Chairman Collins released a report prepared by
GAO in response to her request that it evaluate the Federal
Government's efforts to ensure the safety of imported foods.
This report contained recommendations--to Congress and to the
Secretaries of Agriculture and of Health and Human Services--
designed to enhance the Federal Government's authority to
review the safety of food imports, improve the effectiveness
and efficiency of systems and staff to screen imports, and
strengthen internal controls.
The GAO report reached three principal conclusions. First,
it concluded that weaknesses in import controls allow entry of
unsafe food products. Without sufficient controls, unscrupulous
importers can falsify laboratory test results on suspect foods
in order to obtain an FDA release, sell potentially unsafe
imported food before FDA can inspect it, and/or still sell
imported foods that FDA has actually barred from entry. Second,
the report found that Federal agencies could more effectively
target resources on unsafe foods. Accordingly, GAO recommended
that both FDA and FSIS modify their import information systems;
among other things, such modifications should allow inspectors
to access laboratory test results. Third, the report found that
the lack of ``equivalency authority'--the authority of U.S.
regulators'' to require countries to demonstrate that they have
safety inspection systems equivalent to those of the United
States before granting them authority to export to the U.S.-
diminishes FDA's ability to protect American consumers from
unsafe imported foods.
Year-End Spending: Reforms Underway But Better Reporting and Oversight
Needed (General Accounting Office, July 1998)
During 1979 and 1980, the Governmental Affairs Committee's
Subcommittee on Oversight of Government Management conducted an
investigation and held hearings on the subject of ``hurry-up
spending''--unplanned, binge spending upon low-priority
projects and items at the end of a fiscal year in order to use
up available budgets. The Subcommittee concluded that
inadequate management practices responsible for hurry-up
spending cost the taxpayer, at a minimum, $2 billion each
fiscal year. In June 1997, Chairman Collins requested GAO to
assist the Permanent Subcommittee on Investigations in
determining if these management weaknesses had in fact been
corrected.
GAO reported that changes in the budget environment and
procurement reforms have made hurry-up spending a much less
severe problem than in 1980. Agencies spend far less today in
the direct provision of goods and services, while payments to
individual beneficiaries and grants to State and local
governments have increased. This trend, combined with limits on
discretionary spending, has significantly changed the budget
environment for most agencies. At the same time, Congress has
made funds available for longer periods for many agencies,
which reduces the pressure to spend funds at the end of each
year. In addition, systemic procurement reforms have addressed
most of the issues raised in the Subcommittee on Oversight of
Government Management's report--although problems persist in
certain agencies and with some procurements.
Despite these changes, GAO reported that it is difficult to
assess the patterns of spending during the year because
reported quarterly budget execution data is not reliable.
According to GAO, without complete and timely information for
oversight, the Office of Management and Budget (OMB) and other
decisionmakers do not have an accurate assessment of the
financial status of Federal programs during the year. Even at
year-end, there are significant differences in three comparable
sets of data that agencies report to OMB and the Department of
the Treasury. Although OMB officials stated that a new system
they have developed--in conjunction with the Treasury
Department--to collect year-end data starting in fiscal year
1999 should resolve or greatly alleviate the differences in
year-end budget data, more work is needed to assure compliance
with the requirement for quarterly data.
``Slamming''--The Unauthorized Switching of Long-Distance Telephone
Service (S. Rept. 105-259, July 23, 1998)
Based on the findings and conclusions of the slamming
investigation, the Subcommittee made the following
recommendations:
1. Congress should enact legislation to remove the
financial incentive to slam. Currently, companies engaging in
slamming reap financial benefits from the theft of telephone
service from unsuspecting consumers. Congress should make sure
that crime does not pay.
2. Congress should enact legislation to eliminate deceptive
methods of changing a consumer's long distance service
provider, such as the so-called ``welcome package.'' A welcome
package is material received by a consumer in the mail that
requires the consumer to affirmatively reject the change in
carrier; otherwise, the change goes into effect after 2 weeks.
The problem is that these welcome packages look like junk mail,
and many consumers simply discard them without reading the
material.
3. Congress should enact legislation to establish tougher
fines to deter slamming. Civil penalties must be tough enough
so that they are not considered just the cost of doing
business.
4. Congress should enact legislation that establishes
criminal penalties for intentional and deliberate slamming. In
addition to civil penalties, criminal penalties are needed to
deter intentional slamming. Slamming is essentially stealing
someone's long distance service, and it should be treated as
such.
5. The FCC must be more consistent and aggressive in its
enforcement efforts against companies that engage in slamming.
The FCC currently has the authority to impose fines on those
who engage in repeated and intentional slamming and to revoke
the operating authority of carriers in the most severe cases.
However, the use of this authority has been inconsistent, slow,
and inadequate. The FCC must be as aggressive as many of the
States have been in the enforcement of anti-slamming laws and
regulations.
6. Congress should enact legislation that requires all
carriers to report slamming complaints. The FCC must have
accurate and up-to-date information to effectively investigate
slamming complaints.
7. The FCC should review its licensing system for long
distance providers, particularly with respect to switchless
resellers, to determine how to screen out fraudulent providers.
While the FCC is following Congress' direction to eliminate
unnecessary requirements that would limit competition in the
long distance market, the FCC must be able to enforce its
orders and prevent fraudulent telephone service providers from
remaining in the telecommunication business.
Medicare HMO Institutional Payments: Improved HCFA Oversight, More
Recent Cost Data Could Reduce Overpayments (General Accounting
Office, September 1998)
Medicare spending for home health agencies as a proportion
of total Medicare outlays has been increasing steadily in
recent years. By 1996, in fact, this ratio had risen to $1 in
every $11 from only $1 in every $40 in 1989. To control this
rapid cost growth, Congress in 1997 required HCFA to implement
a prospective payment system that sets fixed, predetermined
payments for home health services. Since its implementation on
October 1, 1997, however, concerns have been raised about
Medicare's home health interim payment system. Specifically,
industry representatives have claimed that the system's new
cost limits have caused some health agencies to close or made
it difficult for some beneficiaries--particularly those with
high-cost needs--to obtain care. In response to those concerns,
Chairman Collins asked GAO to (1) identify the potential impact
of the interim payment system on home health agencies; (2)
determine the number, distribution, and effect of recent home
health agency closures; and (3) assess whether the interim
payment system could be affecting beneficiaries' access to
services, particularly for beneficiaries who are expensive to
serve.
The GAO report concluded that, during the time period
studied, the new system had no significant affect either upon
the Medicare beneficiaries' receipt of services or upon the
home health industry's ability to provide services--although
beneficiaries requiring more health care visits may find it
more difficult to obtain care over an extended period of time.
GAO noted, however, that the new system's affect upon any
particular agency depends on several factors, including that
agency's base-year costs, changes in the provision of services
since the base year, how recently it entered the market, and
its regional location.
SEC Enforcement: Responses to GAO and SEC Recommendations Related to
Microcap Fraud (General Accounting Office, September 1998)
In December 1997 and February 1998, Chairman Collins and
Ranking Minority Member John Glenn joined Representative John
D. Dingell, Ranking Minority Member of the House Committee on
Commerce, in requesting that GAO conduct an inquiry into
reported increases in microcap stock fraud. GAO's subsequent
report detailed a number of actions taken by the Securities
Exchange Commission (SEC) and the various State regulatory
organizations (SROs) to enhance regulatory oversight of
microcap stock firms and help provide investors with additional
protection against abusive practices by such firms. GAO also
detailed a number of steps that had not yet been taken in this
regard, including: (a) steps to prevent the migration of
unscrupulous brokers from the securities industry to other
financial services industries; (b) modernization of the central
registration database to improve oversight of problem brokers
and public access to broker disciplinary histories; (c)
improving the SEC's ability to identify trends in securities
violations revealed during its broker-dealer examinations; and
(d) provision of information on broker disciplinary histories
before activity occurs in an account. GAO concluded that these
reforms would further enhance regulatory oversight and investor
protection.