Michael Fitzpatrick

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, in the wake of the Enron and WorldCom scandals, it is vital that Congress bring competition, transparency and accountability to the credit rating industry. Thanks to the leadership of House Financial Services Committee Chairman Mike Oxley and Capital Markets Subcommittee Chairman Richard Baker, our quest to reform the credit rating industry is becoming a reality. It is extremely disturbing that the two largest NRSROs, S&P and Moody's, rated Enron at investment grade just prior to its bankruptcy filing. Essentially, S&P and Moody's told the market that Enron was a safe investment; and Enron was not their only blunder. S&P and Moody's also rated WorldCom and Orange County at investment grade just prior to their bankruptcy filings. But what other options were out there? There are over 130 credit ratings agencies in the financial market. However, only five are currently designated as NRSROs by the Securities and Exchange Commission. This label is the root of the problem. To receive the elusive SEC distinction, companies must be ``nationally recognized'' or, that is, their ratings must be widely used and generally accepted in the financial markets. This artificial barrier to entry has created a chicken-and-the-egg situation for non-NRSRO credit rating agencies trying to enter this industry, thus fostering a duopoly. S&P and Moody's have over 80 percent of the market share, and they rate more than 99 percent of the debt and preferred stock issues in the United States. As a result, they are raking in record fees. This lack of competition in the credit rating industry has lowered the quality of ratings, inflated prices, stifled innovation, and allowed anti-competitive industry practices and conflicts of interest to go unchecked. On June 20, 2005, I introduced the Credit Rating Agency Duopoly Relief Act. On July 12, 2006, the House passed H.R. 2990 with a bipartisan vote. Last Friday, the Senate passed bipartisan and broadly endorsed legislation, the Credit Rating Agency Reform Act, S. 3850, by unanimous consent. I am extremely pleased that S. 3850 took the legislation, H.R. 2990, as its base text. Like H.R. 2990, Senate bill S. 3850 would eliminate the SEC staff's anti-competitive NRSRO process. Mr. Speaker, in the wake of a seminal failure by S&P and Moody's in the Enron and WorldCom scandals, we must ensure integrity in the credit ratings process. This bill will reduce prices and anti-competitive practices. It will improve credit ratings quality and spur innovation. This view is broadly endorsed by the Investment Company Institute, Association for Financial Professionals, the Bond Market Association, the Financial Executives International, Financial Services Roundtable, Standards & Poor's, Moody's Corporation, Fitch Ratings, Fidelity Investments, and Consumer Federation of America. Today's passage of this important reform legislation demonstrates Congress' commitment to protecting the individual investor by creating a more accountable, transparent and competitive market in our financial services industry. This would not have been possible without the exemplary work by the staff of the Financial Services Committee, especially Bob Foster, Kristen Jaconi, Frank Tillotson, Josh Wilsusen, Alex Urrea, Marisol Garibay, and Tom Duncan, and the staff in the Senate Banking Committee, especially Justin Daly. Thanks for your diligence. Again, I thank Chairman Oxley and Chairman Baker for their leadership. This artificial barrier of entry that fostered the duopoly and allowed the warning signs of Enron and WorldCom to go unnoticed had to be broken. Thank you for supporting our legislative efforts. Chairman Oxley, it has been a pleasure to work with you. Your bipartisanship and knowledge of the issues are envied, admired, and they need to be replicated. I wish you and your wife, Pat, many future successes and endeavors. You will be greatly missed. Mr. Speaker, I strongly urge a ``yes'' vote on S. 3850 to kill the duopoly and ensure integrity in the credit rating industry.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, the surplus lines and reinsurance marketplace is subject to regulatory problems that hamper efficiency and pass on higher costs to policyholders. I find it extremely troubling that surplus lines policyholders in a number of States are facing skyrocketing rates due to an unnecessary, inefficient and burdensome regulatory maze for compliance. In addition, I find it problematic that reinsurance rates are rising because some State regulators are taking it upon themselves to throw out arbitration agreements between reinsurance providers and primary carriers. For this reason, I am an original cosponsor of this bipartisan and broadly endorsed legislation. This commonsense bill fixes the problems created by the multitude of conflicting State laws and regulations and by some state-by-state regulators that are taking it upon themselves to throw out the agreements between the reinsurance providers and primary carriers to settle disputes without tying up the courts. Congress must correct flaws in the current regulatory regime of commercial insurance. These policyholders cannot continue to be picking up the tab because of the basic problems in the current insurance regulatory system. I commend Congresswoman Ginny Brown-Waite and Congressman Dennis Moore for introducing this legislation. I strongly urge the Members to vote for H.R. 5637.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I rise today to recognize National Assisted Living Week as a time to honor the doctors, employees and the residents they serve in assisted living facilities across the county. This year's theme of ``Hearts In Harmony,'' properly expresses the shared desire of everyone in the assisted living community to deliver care in a respectful and loving manner to the residents and the families they serve. Today, I want to take a moment to honor the great work that the nurses and staff of Pickering Manor, an independent living facility in Newtown, PA, do every day to honor this theme and enhance the lives of senior citizens throughout my district. Pickering Manor was opened in 1963 through the great generosity of H. Russell Pickering, who bequeathed his residence fortune for the creation of a facility to serve the older citizens of Newtown, PA, and its surrounding communities. This unique non-profit facility is located in historic Newtown in beautiful Bucks County, PA, and is owned and operated by the Community Welfare Council of Newtown. Even after extensive growth, Pickering Manor continues to be funded solely by its residents and contributions from individuals, businesses and organizations throughout the community. It is easy to see that Pickering Manor takes great pride in its ability to provide a comfortable and friendly atmosphere throughout its full spectrum of services, which ranges from independent living to highly skilled nursing. The facility provides its residents with a variety of independent living choices. Pickering Manor offers 24 apartments and 10 landscaped cottages for its residents to choose from. This variety, combined with its well manicured grounds and a multitude of activities ensures that Pickering Manor's residents have a beautiful place to live and interact with friends and family. The generosity of H. Russell Pickering in bequeathing his home and his treasure to create a place where his neighbors could call home is a testament to the American character and our ideals of compassion and civic involvement. His legacy lives on at Pickering Manor. The idea that we may need long-term or personal care as we get older is not something many of us think about on a day-to-day basis. However, it is something we must all plan for as we grow older. It is good to know that there are places like Pickering Manor and the people who staff it that embody the idea of this year's theme and the ideals behind National Assisted Living Week.

Mr. FITZPATRICK

Mr. FITZPATRICK. Mr. Speaker, I rise today to recognize the 60th anniversary of the Central Bucks County Chamber of Commerce. Since its establishment in 1946, the Central Bucks Chamber has served a vibrant community of small businesses and it has helped promote an atmosphere that has made Southeast Pennsylvania one of the best areas for economic investment in the State of Pennsylvania. The Central Bucks Chamber was founded in 1946 by a group of 12 area businessmen. In 1971, with great foresight, they hired an ad man from New York, Don F. Whitney, to serve as their Executive Director. Don Whitney not only brought his experience in advertising to bear to heighten the profile of Central Bucks to businesses, but he also brought his love for Bucks County, his new home. With an outsider's eye and an insider's love of the region, Don F. Whitney, forged over a unique vision of the Chamber over 27 years, growing the Chamber from its original 12 members to over 2,600 businesses. Today, with a membership of 2,600 and growing, the Central Bucks Chamber is second only in the region after the Greater Philadelphia Chamber of Commerce. The Central Bucks Chamber of Commerce continues to forge strong alliances between business and culture, profit and non- profit, and between established and emerging businesses. This synergy provides a dynamic mission for the Chamber's membership and they continue to exceed expectations. To do business in Bucks County, membership in the Central Bucks Chamber of Commerce is an essential and powerful tool. With each new membership added to its rolls, the Central Bucks Chamber of Commerce will continue to create the foundation for a successful business environment in Bucks County, assuring economic opportunity, jobs and a better life for all of its residents. Congratulations on 60 wonderful years.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker in an amazing demonstration of the strength of the American economy, the Treasury Department reported the largest single gross receipt of quarterly corporate taxes in our Nation's history last Friday. Without question, this milestone demonstrates the effectiveness of the pro-growth tax and fiscal policies advanced by this Congress. This news also proves that despite our obligations to protect our national security, fight the War on Terror abroad and cover the increasing costs of entitlement programs at home, the American economy will continue to grow and benefit the American people. These historic tax receipts are not an isolated event. Last Friday's announcement is the result of back-to-back quarters of economic growth throughout America. According to the Treasury Department, last year's tax receipts were also a record high, having grown $275 billion, or 14.6 percent, from the previous year. Let's not forget about jobs. Increased corporate tax receipts are the result of greater corporate activity, which leads to job creation. Our economy has now added jobs for 36 straight months. The policies this Congress has set in motion have created the framework for an economy that has created more than 1.7 million jobs over the past 12 months and more than 5.7 million jobs since August 2003. I and my colleagues are dedicated to continuing this trend by promoting legislation to roll back red tape, lower taxes on America's families and set the stage for a brighter future for all Americans.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I rise tonight to thank my friends and colleagues, Mr. Davis and Mr. Kuhl, for introducing this outstanding legislation, and I am proud to join them in strong support of the Student and Teacher Safety Act. As a father, I am very concerned about my children's safety during the school day. Every morning, my wife and I, we send our children off to school to prepare them for a better and brighter future. I expect them to learn in a safe, secure and nurturing environment, an environment incompatible with weapons and violence. Unfortunately, statistics show that this may not be the case. I am shocked by the statistics that describe the threat drugs and guns pose in our schools. According to a national survey of high school students in 2003, 29 percent of students in grades 9-12 reported having been offered drugs on school grounds; 9 percent of students reported having been threatened or injured by a weapon such as a gun or knife on school property; and almost 7 percent of students in these same grades said they had missed at least one school day because they felt unsafe at or traveling to or from school. Statistics show America has a problem. It is up to Congress to provide the tools our educators need to combat this threat. Back when I was a student in high school, if a teacher asked me to show them the contents of my locker, I would have complied. It was a simpler time. Today our teachers' hands are tied with incoherent regulations and the constant threat of litigation that prevents them from confidently acting on perceived threats to their students. That is why this act is so important. H.R. 5295 will provide much-needed clarity for school districts in setting policies for school searches. Specifically, this legislation will require school districts and other local education agencies to create a policy that is firmly founded upon the fourth amendment protections and follows the controlling Supreme Court decision on school searches, New Jersey v. TLO. I am proud to be listed as a cosponsor of this legislation, and I call on my colleagues in Congress to support its passage here today.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I want to thank Chairman Joe Barton and Subcommittee Chairman Fred Upton for their leadership in shepherding this legislation, the Deleting Online Predators Act, from the Energy and Commerce Committee to the floor today. I want to especially thank Congressman Mark Kirk and all of the members of the Suburban Caucus for the commitment they have shown in addressing the needs of American families in the suburbs. Monitoring our children's use of emerging technologies is a huge task for parents across the Nation, and the Internet remains the focus of many parents' concerns. The growth of the Internet has opened the door to many new applications that tear down the walls that once prevented communication across vast distances. One set of applications in particular has created a huge following online, but have also created an equal amount of danger, and they are social networking sites. Social networking sites, best known by the popular examples of MySpace, Friendster and Facebook, have literally exploded in popularity in just a few short years. MySpace alone has over 90 million users and it is growing every day. While these sites were designed to allow their users to share virtual profiles of themselves to friends and like- minded users, the sites at most have become a haven for online sexual predators who have made these corners of the Web their own virtual hunting ground. The dangers our children are exposed to by these sites is clear and compelling. According to a study conducted by the National Center for Missing and Exploited Children, in 1998, there were 3,267 tips reporting child pornography. Since then, the number has risen by over 3,000 percent to an outstanding 106,119 tips in 2004. The Department of Justice recognizes child pornography as a precursor for pedophiles and is often linked to online predators. According to Attorney General Gonzales, one in five children has been approached sexually on the Internet. Mr. Speaker, one in five. Worse still, a survey conducted by the Crimes Against Children Research Center found that less than one in four children told their parents about the sexual solicitation they received. On their face, these numbers are startling. Even more startling, however, has been the visual evidence offered to millions of Americans through the news outlets like NBS Dateline's ``To Catch a Predator'' series. Throughout his investigations, Chris Hansen proved time and again with disturbing regularity that child predators are ready and willing and able to approach the prey they stalk online. What would have happened in these circumstances if the children these predators were to meet were not decoys and Chris Hansen was not there? How many assaults, rapes and ruined lives would have resulted in these encounters? Mr. Speaker, the fact, however disturbing it may be, is that child predators have harnessed the power and anonymity that social networking sites provide to hunt their prey. I want to make the intention very clear about my legislation. This legislation is directed at limiting the access of minors to chat rooms and social networking sites in public schools and libraries receiving Federal universal service funding. My legislation is not designed to limit speech or infringe on the rights of law-abiding adults. Under H.R. 5319, schools may disable protection measures in order to allow use by students with adult supervision for educational purposes. In addition, libraries may disable protection measures to allow use by children with parental authorization. Nothing will ever prevent adults from using these sites in schools and libraries. Most importantly, children would remain able to use these sites at home under the supervision of their parents. This legislation is not a substitute for parental supervision, which remains the first line of defense for our children's safety. That is why H.R. 5319 would require the Federal Trade Commission to create a Web site and issue consumer alerts to inform parents, teachers and school officials about the potential dangers on the Internet, specifically online sexual predators and their ability to contact children through social networking sites and chat rooms. Mr. Speaker, this bill is only part of the solution. I fear that no one law can stop the threat from sexual predators. Instead, it will take the combined commitment of the Congress, the Department of Justice, as well as State and local law enforcement to track, investigate and prosecute these offenders. Congress must stand with law enforcement to provide them with the tools that they need to accomplish this goal. Finally, I stood with Representative Nancy Johnson to add $3.3 million for the FBI's Innocent Images Program, the FBI's anchor program for its effort to stop online sexual predators. I wrote to Chairman Wolf to increase funding for the Internet Crimes Against Children Task Force and for the addition of 26 new U.S. Attorney positions to increase the rate of child exploitation prosecutions. I am committed to combating this growing threat, and I call on my colleagues to help me in this fight, and to do so now before the start of a new school year.

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, on that I demand the yeas and nays.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I rise as one Member on this side of the aisle that in the past has supported Mr. Markey's calls for increased fuel efficiency standards and voted for his amendments but believe that it would be foolish to so vote and not also support this demand side plan presented by Mr. Conaway from Texas, which also has a proven track record, and urge my colleagues to support H.R. 5611, the Fuel Education Conservation Act. I just want to point out one fact, that, over one year, Californians reduced peak demand by 89 percent and total consumption by 6.7 percent. I would submit, if we can do it in California, we can do it across America. So I would urge my colleagues to support the bill.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, the Boy Scouts of America is one of the most wholesome organizations in this Nation's history, which is why it has earned the Congressional Charter. The Scouts have provided a way for children from the inner city and the country to learn more about themselves, their environment and their role as citizens through active engagement in outdoor and service activities. Unfortunately, the city of Philadelphia is considering a move that would seriously hinder scouting in southeastern Pennsylvania. Philadelphia Mayor John Street has told the Cradle of Liberty Council, which serves 87,000 inner city and suburban Scouts, to either pay market value for or vacate the headquarters it has used rent-free since 1928. Mayor Street has chosen to focus on the differences of opinion he has with the Boy Scouts, rather then embracing and fostering greater cooperation on the issues we can agree on. This is an unfortunate turn of events for the scouting community in my district and the Philadelphia region, especially when the city is in crisis; violent crime and drug use are at all-time highs. I call on Mayor Street to work with the Scouts to work out an equitable solution to their dispute, and I call on my colleagues to cosponsor H.R. 1337, The Support Our Scouts Act, which will reaffirm the Federal Government's commitment to scouting.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I would also like to thank Chairman Sensenbrenner for his leadership in protecting America's families and for his determination in bringing this bill, H.R. 4472, to the House floor today. Mr. Speaker, as the father of six children, I am deeply committed to finding better ways to safeguard the welfare of America's families. That is why I introduced the Justice for Crime Victims Families Act and, with Congressman Foley, the Internet SAFETY Act of 2006. Both of these bills have been included into H.R. 4472, and they will strengthen what is already a sweeping set of improvements to the way law enforcement solve murders and protect kids from online sexual predators. The Internet SAFETY Act will increase penalties for registered sex offenders who commit felony offenses involving a minor and set fines and imprisonment for Internet providers who facilitate child pornography. The legislation will also establish an Office of Sexual Crimes and Violence Against Children within the United States Department of Justice. These are strong additions to an already thoughtful and comprehensive set of policies outlined in H.R. 4472. Mr. Speaker, I urge my colleagues to adopt this legislation.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, the Voting Rights Act of 1965 stands as one of the most important pieces of legislation ever passed by this Chamber in its distinguished history. Today, the House has a distinctive opportunity to reauthorize the expiring portions of this landmark legislation for another 25 years. The Voting Rights Act ensures that every American, regardless of race or ethnicity, has the franchise to take part in our democracy, and it is a direct response to new allegations of discrimination in our Nation. Over the course of this year the House Judiciary Committee conducted 12 hearings on claims of discrimination in our democratic process. The committee compiled over 8,000 pages of testimony and heard stories of disenfranchisement from across the Nation. Mr. Speaker, although our Nation continues to stand as the beacon of freedom and democracy in the world, we can never lose sight of the need to protect the rights of our citizens to take part in the democratic process that has guided our Nation throughout our history. The provisions of H.R. 9 will reaffirm our Nation's commitment to protecting the rights of all Americans to elect their candidates of choice so that every American is equally represented under the law. This is a good bill, Mr. Speaker. It is a bipartisan bill. And I call on all my colleagues to support this rule and final passage of the legislation.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Chairman, as the bill's sponsor, I rise in opposition to the substitute amendment offered. It is vital that Congress bring competition, transparency, and accountability to the credit rating industry. And H.R. 2990 would accomplish just that. However, Congressman Kanjorski's substitute amendment retains the anticompetitive status quo and provides no transparency and no accountability. The subcommittee amendment offered today has three key components: It requires the SEC to complete its definitional rulemaking; it encourages completion of the voluntarily framework; and it calls for hearings on rating agencies before the Committee on Financial Services. First, the SEC has never defined the term ``NRSRO,'' and it has been over 30 years. I doubt that the SEC's illustrious track record on this issue deserves this much faith. H.R. 2990 replaces this vague and undefined system with a registration system and is consistent with the free market principles of our Federal securities laws. The substitute amendment makes no change to this ambiguous and anticompetitive system. Second, a voluntary agreement offers no real accountability. The SEC cannot enforce violations of the voluntary agreement by rating agencies that sign it, let alone those agencies that are not signatories. H.R. 2990 holds credit rating firms accountable and requires adherence to the credit rating firm's stated methodologies. Third, there already have been numerous hearings in the Financial Services Committee in the 108th and 109th Congresses. No less than five, dozens of witnesses have been called to testify before the committee, and close to 1,000 pages of recorded and transcribed testimony. The Financial Services Committee has been diligent in holding hearings on this important issue. Mr. Chairman, in the wake of a seminal failure by S&P and Moody's in the Enron and WorldCom scandals, we must ensure integrity in the credit ratings process. This bill would inject greater competition, transparency and accountability in the credit rating industry. As a result, prices and anticompetitive practices will be reduced, credit ratings quality will improve, and firms will innovate. Mr. Chairman, I strongly urge a ``no'' vote on the substitute amendment.

Mr. FITZPATRICK of Pennsylvania. Mr. Chairman, I thank Chairman Oxley and subcommittee Chairman Baker for their considerable leadership on this issue. There have been no less than five hearings over the last two terms of Congress, dozens of witnesses and approaching 1,000 pages of transcribed testimony, all pointing to the unavoidable conclusion, which is that it is vital that Congress bring competition, transparency and accountability to the credit rating industry in this Nation. Mr. Chairman, credit rating agencies have been issuing ratings on the likelihood of an issuer's default on debt payments since the early 20th century. Today, credit rating agencies rate companies, countries and bonds. Despite being often underestimated and overlooked, their power is immense. Credit rating agencies have a great impact on the bottom line of companies, municipalities and school districts. The better the credit rating, the lower the interest rate that the borrower must pay. This expansive influence finally came into question because of the recent corporate scandals and the fact that the two largest NRSROs, Standard & Poor's and Moody's, rated Enron and WorldCom at investment grade just prior to their bankruptcy filings. Essentially, they told the market that Enron and WorldCom were safe investments, even though their problems were very apparent in the marketplace. As a result, reforming the rating agency industry has been the subject of much debate in the House Committee on Financial Services. S&P's and Moody's monitoring and reviewing of Enron and WorldCom fell far below the careful efforts one would have expected from organizations whose ratings hold so much importance. And Enron and WorldCom were not their only problems. But what are the other options that are out there? There are 130 credit rating agencies in the financial market; however, only five are rated and designated as NRSROs by the SEC. This label is the root of the problem. The SEC coined the term NRSRO without defining it in its 1975 rule on net capital requirements when it obligated broker-dealers to hold more capital for those bonds rated junk by a NRSRO. Since then, other regulators in the private investment community have taken up the term, but also without defining it. As a result, credit ratings matter only if they are issued by an NRSRO. The commission still has never defined the term, and it has been over 30 years. It is more than naive to assume that the SEC will actually define it now. Their track record is not encouraging. To receive the illusive distinction, companies must be nationally recognized. This artificial barrier to entry has created a chicken-and- the-egg situation for non-NRSRO credit rating agencies trying to enter this industry. As a result of the artificial barrier to entry, there are only five NRSROs. Reputable credit rating firms have been unable to receive this distinction after trying for as long as a decade. Firms like Egan Jones in my home State of Pennsylvania receive no explanation from the SEC because no process actually exists. This SEC-imposed barrier to entry has consolidated the industry, thus fostering a duopoly. Moody's and S&P enjoy over 80 percent of the market share and rate 99 percent of the debt in the market. As a result, Moody's and S&P are raking in record fees. Since 2000, Moody's and S&P have earned average annual returns on assets of 37 and 39 percent respectively over a 6-year period. This compares to the average return on assets over the same period earned by U.S. manufacturing firms of less than 5 percent per year. These excessive profits are government-granted to those two NRSROs by virtue of the special status granted to them by the government. As a result of this lack of competition, the quality of ratings has decreased, prices are inflated, innovation has been stifled, and anticompetitive industry practices have been allowed in conflicts of interest, like tying, notching and unsolicited ratings, have gone unchecked. Mr. Chairman, in the wake of the seminal failure by S&P and Moody's in the WorldCom and Enron scandals, we must ensure integrity in the credit rating process. H.R. 2990 would inject greater competition, transparency and accountability in the credit rating industry. As a result, prices and anticompetitive practices will be reduced, credit rating quality will improve, and firms will be forced to innovate. This view is shared by the Bond Market Association, the Association for Financial Professionals, the Financial Executives International, Investment Company Institute, and The Financial Services Roundtable, and I will submit their letters of support for the Record. Mr. Chairman, there is a lot of talk in this town about reform and transparency and managing conflicts of interest. This bill, I would submit, meets each of those challenges, and I would like to leave you with a quote right from the horse's mouth. The SEC stated: ``The greater competition in the market for credit ratings and analysis could provide for more credible and reliable ratings, and greater competition could also stimulate innovation in the technology and methods of analysis for issuing credit ratings, which could further lower barriers to entry.'' I submit H.R. 2990 would do just that. I strongly urge a ``yes'' vote on H.R. 2990 to ensure integrity in the credit rating industry. The Bond Market Association, July 10, 2006. Hon. Michael Fitzpatrick, House of Representatives, Washington, DC. Dear Representative Fitzpatrick: I applaud your efforts on legislation to reform the credit rating agency industry. The significant growth in the global capital markets in recent years has increased the importance of credit quality analysis. Boosting competition among credit rating agencies, as your legislation, the Credit Rating Agency Duopoly Relief Act (H.R. 2990), seeks to do, assures this critical industry will remain robust and innovative. I appreciate that the version of H.R. 2990 approved last month by the House Financial Services Committee addresses concerns of Association members with an earlier version of the legislation. Specifically, the bill would no longer compel registration of a credit rating agency with the Securities and Exchange Commission. The amended version of H.R. 2990 also expands the definition of credit rating agency to include any person in the business of issuing credit ratings on the Internet or other readily accessible means for free or for a reasonable fee. Association members viewed the previous legislation as both too narrow--deeming a rating public only if it was disseminated on the Internet--and too broad--including companies who produce ratings not used for regulatory purposes. The changes included in the new legislation will help foster competition in the industry. Again, I commend your leadership on this important issue. We support H.R. 2990 and look forward to speedy action on the bill in the House. Sincerely, John R. Vogt, Executive Vice President.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I thank my friend from West Virginia for providing me the time to speak on behalf of the Credit Rating Agency Duopoly Relief Act, H.R. 2990, the bill that I have introduced. I am here today in support, and strong support, of the rule. Mr. Speaker, it is vital that Congress bring transparency, competition and accountability to the credit rating industry, and the time to do it is now. Mr. Speaker, it is extremely disturbing that the two largest nationally recognized statistical rating organizations, known as NRSROs, in the industry, Moody's and Standard & Poor's, both rated Enron at investment grade just immediately prior to their bankruptcy filings. Essentially, Moody's and Standard & Poor's told the market that Enron was a safe investment. Credit rating agencies claim that they are not in the business of detecting fraud, but they are most certainly in the business of impacting the bottom line of companies, municipalities and also school districts. The better the credit rating, the lower the interest rate the borrower must pay to expand its operations, construct a road or build a school. Enron was not their only blunder. Moody's and Standard & Poor's also rated WorldCom as investment grade just prior to their bankruptcy filing, but there are other options throughout the marketplace. Mr. Speaker, there are over 130 credit rating agencies in the financial market. However, only five are designated as nationally recognized statistical rating organizations by the Securities and Exchange Commission. This label, I would submit, is the root of the problem. To receive the elusive SEC distinction, companies must be nationally recognized; that is, their ratings must be widely used and generally accepted in the financial markets. This artificial barrier to entry has created a chicken and the egg situation for non-NRSRO credit rating agencies trying to enter this industry, thus forcing a duopoly that we have heard about. Moody's and S&P have over 80 percent of the market share, and they are rating 99 percent of all debt issued. The lack of competition in the credit rating industry has lowered the quality of ratings, inflated prices, stifled innovation and allowed anti-competitive industry practices and conflicts of interest to go unchecked. Mr. Speaker, in the wake of Enron and WorldCom, we must ensure integrity in the credit ratings process. H.R. 2990 would inject greater competition, transparency and accountability in the credit rating industry by eliminating the SEC staff's anti-competitive NRSRO process. This legislation replaces the current SEC staff designation process for credit rating agencies as NRSROs with a registration process like that for other market participants, such as investment advisors and broker- dealers. In addition, H.R. 2990 would require each rating agency to disclose relevant information so that investors would have the information they need to select the rating agencies that they want to use. As a result, prices and anti-competitive practices will be reduced, credit ratings quality will improve, and firms will innovate. Many organizations whose opinions matter support this legislation: The Bond Market Association, the Association for Financial Professionals, the Investment Company Institute, the Association for Financial Professionals, and the well-regarded Financial Services Roundtable, who opposes Moody's and Standard & Poor's. Mr. Speaker, I urge a ``yes'' vote on the rule.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Chairman, I am pleased to offer this amendment with my friend from Connecticut to increase by $3.3 million the FBI's Innocent Images Task Force. This vital FBI program targets a real and growing problem. Sexual predators are increasingly taking to the Internet to victimize our Nation's kids. The FBI's Innocent Images Task Force is the focal point of our Federal law enforcement's efforts to combat online sexual predators. While they do great work, our field agents are being overburdened by the rapidly increasing caseload they find in the Internet's target-rich environment. In the past 10 years alone, Mr. Chairman, the FBI has seen a 2,000 percent increase in its caseload of crimes involving online sexual predators. As a father of six children, I recognize the dangers of the Internet, especially with social networking sites. As a result, I introduced the Deleting Online Predators Act to protect our children from these sites while they are at school or in the public libraries. Recognizing that chat rooms and social networking sites represent a clear and present danger to millions of children, I believe that a key component of protecting our children is to crack down on these online predators. That means we must provide law enforcement with the tools necessary to track these criminals down. I want to commend the leadership of Chairman Wolf for his efforts to increase funding for a number of programs in the Department of Justice to protect our children both on- and offline. I reached out to Chairman Wolf, requesting his assistance in securing increased funding for a number of law enforcement programs, and I am pleased to see that he has taken the initiative to include that language to do just that. Through Chairman Wolf's leadership, this legislation comes to the floor with increased funding not only for the Innocent Images Task Force but also for other vital law enforcement programs like the Internet Crimes Against Children Task Forces and the National Center for Missing and Exploited Children. This bill also includes funds to add 26 new U.S. attorneys to prosecute these crimes. I requested Chairman Wolf's assistance in increasing funding for these programs, and I am grateful for his work to provide the necessary funding to protect our Nation's children while on the Internet. The Johnson amendment to fund law enforcement will protect children and will save lives. Congress must act to make the Internet a safer place for kids, not a virtual hunting ground for child predators. This amendment will help accomplish this goal, and I urge my colleagues to support the amendment.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I am proud today to join Mr. Porter and my fellow members of the Suburban Caucus in support of H.R. 4894. It is fitting that this legislation is the first bill to reach the floor for consideration as part of the Suburban Agenda. H.R. 4894 follows the commonsense set of issues that frames the Suburban Agenda, protecting kids and families at home and at school, providing families with better ways to save for college, and protecting our resources for a sustainable future. As the father of six children, I want to know that when I or my wife drop our kids off at school that they will be well taken care of. Our teachers are responsible for our children's welfare for the 6 or 8 hours that they are at school, and we need to know without question that their safety will be paramount on the minds of teachers, faculty, and also volunteers. Unfortunately, some would take advantage of their students. Instead of guiding our children, they are preying on them. Mary Kay Letourneau and Debra Lafave have become household names. But for each high-profile case of inappropriate encounters between teacher and student, how many go unnoticed, unreported? That is why today's legislation is so important. H.R. 4894 would give schools the ability to request background checks on candidates for employment. Teachers, janitors, administrative staff, all would be subject to a background search through the Department of Justice's national crime information databases. This legislation protects our kids, our communities, and maintains the high standard that we set for our educators. I am proud to support the legislation today and call on my colleagues to support it as well.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Chairman, as cochair of the Passenger Rail Caucus, I urge you to support th LaTourette-Oberstar amendment to the FY07 Transportation, Treasury and HUD Appropriations bill. The amendment will increase funding for Amtrak to a total of $1.114 billion, an increase of $214 million. The FY 2007 TTHUD appropriations bill provides only $900 million for Amtrak, $412 million less than the FY 2006 enacted level and $698 million less than Amtrak requested in order to continue operation and invest in capital. I am concerned that the current funding level in the bill would leave the rail system incapable of providing sufficient service to Amtrak's 25 million customers--many of whom are my constituents of the 8th Congressional District of Pennsylvania on the Northeast Corridor. The Department of Transportation's Inspector General has stated that the status quo funding option for Amtrak is unsustainable. The Inspector General also stated that postponement of maintenance-- especially on heavily traveled Northeast Corridor increases the risk of accident. Today, as Americans are facing skyrocketing energy prices and increasingly overcrowded roads, it is crucial that we invest in our national passenger rail system. I urge you to join us in preserving transportation options for our constituents and support the LaTourette-Oberstar amendment.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I rise today with my colleagues to honor the memory of a brave little girl and the cause she started, to find a cure for childhood cancer. Six years ago, Alexandra Scott opened her first lemonade stand to help stop the spread of childhood and pediatric cancer. She was only 4 years old. Although herself stricken with the disease, Alex held annual lemonade stands every year to raise money for cancer research, inspiring thousands of other Americans to follow suit. As the father of six young children, I can only imagine the pain that would come with having one of your young children diagnosed with cancer. I cannot fathom the thought of facing such a tremendous fight for the child's future. However, where many adults would falter under the odds, Alexandra found immeasurable strength, perhaps only the strength that a child could muster, to turn something negative into something else entirely, hope. Alexandra thought not only of herself, but of all the other children in the world experiencing the same illness. Her decision to start her own lemonade stands demonstrates the purity of her spirit, a spirit that made her cause a national phenomenon. I want to thank Congressman Gerlach for introducing this legislation to honor Alexandra and the good work she started to defeat childhood cancer. Her story is a testament that everyone can do their part to change the world.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I rise today to congratulate the men and women of Quakertown Fire Company No. 1 which celebrates its one hundred and thirtieth anniversary this year. Since its humble beginnings in 1876 as the Quakertown Hook and Ladder Company, station 17 has protected the residents of the Quakertown area with distinction and pride. One hundred and thirty years ago, Quakertown Pennsylvania, which is located in the northern portion of my district, was a small and quiet farming community. And in its early years, I doubt the fire company needed to answer many calls. However, the Quakertown of today is a vibrant suburban area and station 17 has seen an increase of nearly 400 calls a year in the past 40 years. The need to expand and recruit on such a large scale would likely hinder the performance of the department, but the fire company has continued to grow and enlist generation after generation of fire fighters. Firefighters have always been an integral part of American history. The safety of the citizens of Bucks County has been the top priority of the Quakertown Fire Company, and they have at all times served selflessly to that end. Mr. Speaker, volunteerism is an American institution. Station 17 has always operated with volunteer firefighters, and I wish to congratulate and thank the current 50 volunteer members, who do an exceptional job. It is a special group of people that would voluntarily dedicate so much of their own time and effort towards the common good, and Quakertown is fortunate to have such a large and committed team of volunteers working for them. How many people, Mr. Speaker, would jump out of bed in the middle of night at the sound of their alarm with no questions asked and go to a complete stranger's house only to battle a blazing inferno for hours upon hours, and still go to work the next morning? Well I am proud to say that Quakertown has at least 50 of these extraordinary men and women, and we thank them all. To these heroic men and women of station 17; thank you for your work, your time, your dedication, and your sacrifice.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I rise today to highlight the accomplishments of Mr. Joseph Sellers. Joe Sellers is the President and Business Manager for Local Union 19 of the Sheet Metal Workers in the Philadelphia area, Central Pennsylvania, Southern New Jersey, and Delaware. This week, The City of Hope's Tri-State Labor and Management Council will honor Mr. Sellers with its Spirit of Life Award. City of Hope National Medical Center is one of the world's leading research and treatment centers for cancer, diabetes, HIV/AIDS, and bone marrow transplantation. City of Hope's Tri-state Labor and Management Council Award has for many years increased public awareness and support for its research efforts. The Council's efforts are vital to City of Hope's battle against killer diseases. Additionally, the Labor and Management Council provides opportunities to union and management leaders to work together for a common cause--to assist the City of Hope in its vital research and patient care, no matter how long the hospital stay or complex the therapy. Mr. Sellers began as an apprentice in 1980. Since then Mr. Sellers has made great contributions to his union and his community. Mr. Sellers has served as a union Executive Board Member, Training Coordinator, and Business Agent. Mr. Sellers has held numerous positions within his union's International Association and currently holds executive positions with the Pennsylvania State Council of Sheet Metal Workers' International Association, New Jersey State Council of Sheet Metal Workers, Mechanical Trades District Council of Delaware Valley, Metropolitan Association of Presidents and Business Representatives, and the National Energy Management Institute. If these positions were not enough, Mr. Sellers is the Vice-President of the Philadelphia Building and Construction Trades Council and the Philadelphia AFL-CIO. He is the Secretary-Treasurer of the Mechanical and Allied Crafts Council of New Jersey. Additionally, Mr. Sellers is an Executive Board Member of the Pennsylvania Building and Construction Trades Council and the Pennsylvania AFL-CIO and a Member of the Pennsylvania State Apprentice and Training Council. In addition to his commitment to supporting working men and women throughout the Delaware Valley, Mr. Sellers is active in civic, charitable, and government affairs. In the aftermath of Hurricane Katrina, he gathered monetary donations as well as clothing and food for the storm ravaged communities along the Gulf Coast. Recognizing the Gulf Coast's need for strong backs, hard workers, raw manpower, he dispatched union workers to aid in hurricane recovery. In his local community, Mr. Sellers has spent countless hours working with the Piney Grove Baptist Church and Community Center and The Potter House Mission. For these honors Mr. Sellers selected as Labor Leader of the Year 2004 for the Boy Scouts of America, and the 2004 Labor Leader award from the American Veterans Association. Mr. Speaker, it is an honor for me to draw this Chamber's attention to the accomplishments of Mr. Sellers. He has made a great contribution to his community. Our nation would be greatly improved if we all made a fraction of the contribution as Mr. Sellers.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I rise today to recognize the achievements of Pasquale (Pat) T. Deon, Sr. a constituent in my district who will be honored tomorrow at the 2006 annual scholarship luncheon at the Justinian Society of Philadelphia for his contributions to the business community in the Philadelphia region and the community of Bucks County, Pennsylvania where he lives. Since 1935, the Justinian Society has served as the premier legal organization in the Philadelphia area for Americans of Italian ancestry. Comprised of attorneys, judges and law students, the society has directed itself to maintaining the honor of our legal system and the high ethical standards that distinguish its practice in our society. The Justinian Society accomplishes its mission by promoting continuing legal education programs, offering scholarships to Italian American law students and by promoting civic engagement by the legal community. Pat Deon is a respected member of the Bucks County community. A successful businessman and entrepreneur, Pat has become a leader in his region, serving on numerous local and statewide boards and commissions. Since 1995, Pat Deon has been a volunteer member of the Board of the Southeastern Pennsylvania Transportation Authority (SEPTA), and has served as Board Chair since 1999. Since being named chairman of SEPTA, Pat Deon has transformed this $3 billion public transportation asset from an organization wracked by inefficiency to a model of progress and competence. With SEPTA well in hand, Pat turned his attention to our highways in 2002 and was appointed to a four-year term as a member of the Pennsylvania Turnpike Commission. Besides his public works, Pat Deon is also actively involved in community service. He is Vice Chairman of the Board of Directors of Temple Lower Bucks Hospital, board member of the Bucks County Community College Foundation, and the Bucks County Enterprise Zone. In addition to these endeavors, both Pat and his wife Carlene are strong local supporters of the Special Olympics, the American Red Cross and Race for a Cure. His work with the Special Olympics alone has allowed a delegation of 116 athletes and coaches to attend the first ever USA National Games in Iowa. For many, this would be enough, but Pat has also excelled in business. Pat Deon has extensive residential and commercial real estate developments in Bucks and Montgomery Counties, and construction services in the Northeast region. He is also the owner of WBCB-AM radio in Bucks County and a successful restaurateur through his ownership of the Temperance House Restaurant and Inn located in Newtown, Bucks County, Pennsylvania. I can think of no better person deserving the honor of the Justinian Society as Pat Deon. His success is a clear example that the American Dream is indeed alive and well. In addition to serving as a model of success, Pat Deon is also an example of modesty. He never searches for the spotlight, never craves fanfare or publicity for his good works. I am proud to represent him in Congress, and I am proud to acknowledge him today.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I ask unanimous consent to speak out of order.

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I rise today to recognize the achievements of Pat T. Deon, Sr., a constituent of mine who will be honored tomorrow at the 2006 annual scholarship luncheon at the Justinian Society of Philadelphia for his contributions to the business community in the Philadelphia region and the community of Bucks County, Pennsylvania, where he lives with his family. Since 1935, the Justinian Society has searched, as the premier legal organization in the Philadelphia area, for Americans of Italian ancestry. Comprised of attorneys, judges, and law students, the society has directed itself to maintaining the honor of our legal system and the high ethical standards that distinguish its practice in our society. The Justinian Society accomplishes its mission by promoting continuing legal education programs, offering scholarships to Italian American law students and by promoting civic engagement by the legal community. Mr. Speaker, Pat Deon is a respected member of the Bucks County community. A successful businessman and entrepreneur, Pat has become a leader in his region, serving on numerous local and statewide boards and commissions. Since 1995, Pat Deon has been a volunteer member of the Board of Directors of the Southeastern Pennsylvania Transportation Authority and has been its chairman since 1999. Since being named chairman of SEPTA, Pat Deon has transformed this $3 billion public transportation asset from an organization wracked by inefficiency to a model of progress and competence. With SEPTA well in hand, Pat turned his attention to our highways in 2002 when he was appointed to a 4-year term as a member of the Pennsylvania Turnpike Commission. Besides his public works, Pat Deon is also actively involved in community service. He is vice chairman of the Board of Directors of Temple Lower Bucks Hospital, a board member of the Bucks County Community College Foundation, and the Bucks County Enterprise Zone. In addition to these endeavors, both Pat and his wife, Carlene, are strong supporters of the Special Olympics, the American Red Cross, and Race for a Cure. His work with the Special Olympics alone has allowed a delegation of 116 athletes and coaches to attend the first-ever USA National Games in Iowa. For many this would be enough, but Pat has also excelled in business. Pat Deon has completed residential and commercial real estate projects in Bucks and Montgomery Counties and construction services in the northeast region. He is the owner of WBCB-AM Radio in Bucks County and a successful restaurateur through his ownership of the Temperance House Restaurant and Inn located in Newtown Township, Bucks County, Pennsylvania. Mr. Speaker, I can think of no better person deserving the honor of the Justinian Society than Pat Deon. His success is a clear example of the American dream and that it is indeed alive and well. In addition to serving as a model of success, Pat Deon is also an example of modesty. He never searches for the spotlight and never creates fanfare or publicity for his good works. I am proud to represent him in the Congress and am proud to acknowledge him here today.

Mr. FITZPATRICK of Pennsylvania

Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I rise today in support of H.R. 5449; legislation that will strengthen the negotiation process between unions and the federal governments. As many of my colleagues know, the Federal Aviation Administration recently declared a deadlock in negotiations with the National Air Traffic Controllers Association (NATCA). The issue is simple; on one hand, the air traffic controllers unions want to increase the pay package for their employees and on the other, the FAA wants to cut the pay package. On June 5, 2006, the 60 day period for Congress to take action on the FAA's contract offer to the NATCA officially expired. Under current law the FAA would now be able to unilaterally impose the contract because Congress has not acted. The legislation being considered tonight would provide air traffic controllers with a fair negotiation process. H.R. 5449 would break the current impasse by sending negotiators to the Federal Service Impasse Panel (FSIP), a neutral third party, for a final resolution instead of keeping them bound to the FAA. Mr. Speaker, American workers must be provided with the opportunity to participate in a fair bargaining process. Contracts should be the result of a fair deliberate process that ensures that the rights of workers are protected through a full hearing of their grievances in front of a neutral third party. Congressional inaction and the forced acceptance of one sided contracts are not the way to settle employment disputes. There has been a lot of talk about this bill interfering with the FAA's ability to budget its compensation packages. Opponents say that this legislation will cost the FAA $1.9 billion over the next 5 years. This bill does none of these things. H.R. 5449 does nothing to modify or manipulate the compensation scheme of air traffic controllers. It only deals directly with the bargaining process itself by reaffirming the meaning of good faith bargaining by requiring the parties to submit their impasses to the Federal Service Impasses Panel (FSIP) for final resolution--the natural course for employment disagreements and negotiations at the federal level. I call on my colleagues to cut through the clutter that this issue has created. The ability for American workers to fairly negotiate with the federal government is at stake here and Congress has a chance to stand up for our Air Traffic Controllers. I call on my colleagues to support and pass H.R. 5449.