Paul Kanjorski

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to my personal friends Senator Charles D. Lemmond and his wife, Barbara, who have been honored by the Salvation Army of the greater Wilkes-Barre area for their many years of community service. Senator Lemmond has represented the 20th senatorial district in the Pennsylvania Senate since 1985 and is retiring at the end of this year. He is chairman of the Senate State Government Committee, Vice Chairman of the Senate Judiciary Committee and a member of the Senate Committees on Rules and Executive Nominations, Finance, and Military and Veterans Services. A former Common Pleas Court judge in Luzerne County, Senator Lemmond is currently chairman of the Executive Committee of the Pennsylvania Higher Education Assistance Agency and he serves on the Joint Legislative Budget and Finance Committee and the Joint State Government Commission's Task Force on Decedent's Estates. Senator Lemmond is also a member of the Reapportionment Task Force, the Elections Reform Task Force and the Criminal Justice Committee of the National Conference of State Legislatures. Legislatively, Senator Lemmond was the prime sponsor of a law providing judicial access to juvenile crime reports, a major anti-drug law aimed at imposing tougher punishments for repeat drug offenders, a law providing for the housing of state prisoners in federal prisons, and a law providing sentencing procedures for first-degree murder. Senator Lemmond has also been instrumental in the passage of voter registration and election reform laws and, most recently, a law requiring hearing screening for all infants born in the Commonwealth. He has also sponsored numerous initiatives relating to government ethics, charitable organizations, tourist promotion, agriculture preservation, natural resource conservation and industrial site clean up. A past potentate of Irem Temple, he is a 33rd degree Mason, a trustee of the Wyoming Conference of the United Methodist Church, an advisory board member of the Salvation Army, a life member of the board of trustee of Wyoming Seminary Preparatory School and an advisory board member of the Penn State Wilkes-Barre campus. Senator Lemmond is a graduate of Harvard College and the University of Pennsylvania Law School. He also served overseas in the U.S. Army of Occupation. Barbara Northrup Lemmond is a graduate of Wyoming Seminary and she attended Skidmore and Elmira Colleges. During a career spanning 37 years, she served as secretary to the Luzerne County Register of Wills, was a nursery school teacher for B'nai B'rith, co-owned Project 40, a handcraft and antique shop, served as office manager to a local physician as well as secretary for the Penn State University, Wilkes- Barre campus. Mrs. Lemmond's dedication to the enhancement and well-being of the northeastern Pennsylvania community extends beyond her business acumen. She serves as a member of the board of directors for Wesley Village and the Anthracite Scenic Trails Association. She is an active volunteer for the Back Mountain Memorial Library and has been a driver for Meals on Wheels for more than 30 years, which is still a part of her weekly routine. Mrs. Lemmond has served as past secretary, vice president, and board member for the Back Mountain Memorial Library, as well as a board member and president of Meals on Wheels. She has also served as a board member and president of the Luzerne County Library Systems, and a teacher at First United Methodist Church School in Wilkes-Barre. Mrs. Lemmond has also been a volunteer for Wilkes-Barre General Hospital, Planned Parenthood of Luzerne County, the Swetland Home, and a member of the Junior League of Wilkes-Barre. On a personal note, my wife Nancy and I have known Charlie and Barbara for many, many years, since Charlie and I were young lawyers in the Luzerne County bar. Although we are members of different political parties, Charlie and I have always been friends and have been able to work together to serve Northeastern Pennsylvania. His thoughtful and dedicated service to our region and the Commonwealth will be greatly missed, and I wish him and Barbara all the best in their well-deserved retirement. Mr. Speaker, please join me in congratulating Senator and Mrs. Lemmond on this joyous occasion. Together, they have contributed greatly to improving the quality of life in northeastern Pennsylvania through their selflessness and love of community.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to Mr. Stephen Barrouk, of Wilkes-Barre, Pennsylvania, who has served as president and chief executive officer of the Wilkes-Barre Chamber of Business and Industry from 1989 until earlier this month. Mr. Barrouk's extraordinary leadership has helped guide and forge the beginning of a truly remarkable revitalization of the City of Wilkes- Barre. Since 1989, Mr. Barrouk has led the growth of the Chamber from 500 members to 1,338 members in 2005. He has been at the forefront of a litany of catalytic projects that have transformed the region. Those projects include the Wachovia Arena, an entertainment venue that has spawned tens of millions of dollars of commercial expansion and created hundreds of new jobs. An innovation center was carved out of a vacant department store complex in central city to nurture fledgling businesses. Public Square Commons, formerly the Pomeroy's Department Store, was completely renovated to provide first class office space. Also during his tenure, Mr. Barrouk secured an American Hockey League franchise and recruited the Penguins as an anchor tenant for the Wachovia Arena. In addition, Mr. Barrouk helped launch a 14-screen downtown theater complex as well as studies for the Susquehanna Riverfront Convention Center and Hotel and the Riverfront Museum. Mr. Barrouk also led the way for the development of two business parks, Hanover Crossings and the East Mountain Corporate Center, both of which have major tenants responsible for creating hundreds of jobs. During his tenure he managed three capital campaigns that raised over $10 million to support 15 years of economic development marketing that attracted over 125 new companies to the region. He also led the effort to create Penn's Northeast, Inc., a regional marketing organization; the Diamond City Partnership and Downtown Business Association, the Great Valley Technology Alliance and the Luzern County Convention Center Authority which manages the Arena. Mr. Barrouk has been the worthy recipient of numerous service awards, among them the Distinguished Citizen Award from the Boy Scouts of America; the Distinguished Leader Award from Leadership Wilkes-Barre; a 25 Year Leadership Star Award from Leadership Wilkes-Barre, a Special Achievement Award from the Pennsylvania Ben Franklin Partnership and, in 2001, he received the Chamber of the Year award from the Pennsylvania Chamber of Business and Industry and the Pennsylvania Chamber of Commerce executives in 2001. Mr. Barrouk serves on the boards of directors of numerous organizations including 10,000 Friends of Pennsylvania, Chairman of Steering Committee for the Renew Pennsylvania effort; NEPA Alliance; Luzerne-Schuylkill Counties Work Force Investment Board; Great Valley Technology Alliance; Joint Urban Studies Center, Earth Conservancy, United Way of Wyoming Valley, Catholic Social Services and the Diamond City Partnership. On a personal note, I have worked closely with Steve on many projects over the last 17 years. There is no economic development official who is more dedicated to improving the quality of life in our area. His perseverance, hard work and integrity made him one of the most effective leaders in our area. I am proud to call him a friend and look forward to continuing working with him to help northeastern Pennsylvania for many years to come. Mr. Speaker, please join me in congratulating Mr. Barrouk for the exemplary community service he has contributed over the past 17 years. His commitment to revitalizing the Wilkes-Barre area has been responsible for a wealth of community improvements that have greatly enhanced the quality of life in northeastern Pennsylvania.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise in strong support of the resolution I helped to introduce with my distinguished colleague from Illinois, Mrs. Biggert, House Resolution 912. This resolution would designate September as National Life Insurance Awareness Month. Life insurance is a financial planning tool that all families should explore, but particularly at this time when we in this country are so interested in providing personal and family security. Life insurance is an element of that security which all families should consider and which is helpful in helping those families plan for their future needs. To provide security in the event of an untimely death for a family is one of the most important aspects of financial life. Too often, we wait too long or ignore the advantage that this financial tool has and the use it should be put to, to provide the support for those left behind in an untimely death. By designating September as National Life Insurance Awareness Month, we will hopefully highlight the importance of this financial instrument for the nearly 50 million Americans who presently lack the life insurance coverage needed to meet long-term financial needs of their families. In closing, I urge my colleagues to support this important resolution to promote financial literacy.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to my good friend Mr. August Piazza, of Jenkins Township, Luzerne County, Pennsylvania, upon the occasion of his retirement as superintendent of the Wyoming Valley West School District. Mr. Piazza received his Bachelor of Science degree from Mansfield University and his Master of Science degree from Wilkes University. His post-graduate work includes principal certification and a superintendent's letter of eligibility from Temple University. Mr. Piazza began his career with Wyoming Valley West School District in 1971. Over the past 35 years, Mr. Piazza has taught elementary grades ranging from kindergarten through sixth grade in subject areas including mathematics, social studies and reading. He was an instructional support specialist, head teacher and department chairperson. He served as assistant principal and principal of the Wyoming Valley West Middle School. Mr. Piazza was appointed as superintendent of schools in the Wyoming Valley West School District. He also holds the position of adjunct professor at Wilkes University Graduate School. Mr. Piazza currently serves on the Luzerne County Community College Foundation Board of Directors and the Luzerne County Convention Center and Arena Board of Directors. His service organization affiliations include the Knights of Columbus where he is a Third Degree Knight, and the Wilkes-Barre Chapter of UNICO, an organization where he once served as president. He is also a charter member of the Kingston Kiwanis Club. Augie and his wife, Corine, have two children, Jeffrey and Maria. Mr. Speaker, please join me in congratulating Mr. Piazza on a distinguished career in the field of education. His exceptional record of service and dedication to duty is an inspiration to both his peers and to the students for whom he worked tirelessly to prepare for adult life. Mr. Piazza's contribution to the greater Wyoming Valley community has left a lasting mark and has had a positive effect on improving the quality of life.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to COL Tracy L. Ellis, who has commanded the Tobyhanna Army Depot in Monroe County, Pennsylvania, from July 31, 2003 to July 20, 2006, when he will turn over command to COL Ronald Alberto. The Tobyhanna Army Depot is the Nation's largest repair station for military communications equipment and weapons targeting systems. It employs more than 3,000 people and circulates more than $450 million each year to the local economy. Under Colonel Ellis' command, mission workload surged by 40 percent between 2003 and 2004 and 60 percent between 2003 and 2005. The depot effectively incorporated hundreds of new employees to meet the expanded workload. The depot also expanded maintenance support of other critical systems including aircraft survivability equipment, aircrew survival radios, secure communications equipment, air defense and air traffic control, landing systems and tactical satellite communications systems. Tobyhanna Army Depot effectively prepared for the 2005 Base Realignment and Closure process, and will gain new missions from two other installations as a result. During his command tour, Colonel Ellis added to Tobyhanna's environmental stewardship, winning the Secretary of the Army Environmental Quality Award in both 2004 and 2005. The 2005 award recognized the depot for pollution prevention in the industrial installation category for recycling more than 40 percent of the solid waste generated annually. The depot's special employment programs earned further recognition with receipt of the 2003 Army Disability Program of the Year Award. Colonel Ellis also directed that the depot's Army Community Services program allot its limited resources to provide maximum assistance to the large National Guard and Reserve population surrounding the installation. ACS has conducted many briefings for hundreds of families of military personnel before, during and after their deployments. Colonel Ellis' command of Tobyhanna Army Depot is one marked by rapid increases in maintenance production, growth of depot employees, innovation and improvement in business and production management and sustained performance in environmental stewardship. Mr. Speaker, please join me in congratulating Colonel Ellis on a job well done. His devotion to duty and country as well as his commitment to excellence have bolstered the already superb reputation of the Tobyhanna Army Depot as an indispensable resource for the American Armed Forces, and insured that the depot will remain a key element in the region's economic well-being.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I am generally pleased that the passage of this rule will make in order a substitute to H.R. 2990. I nevertheless rise to express some concerns about the rule, as well as to articulate some of my apprehensions about the underlying bill. Regarding the rule itself, the 20 minutes of debate for the substitute should have been longer in considering H.R. 2990. We also have a classic debate here on quantity versus quality. At its core, 2990 seeks to promote competition among nationally recognized credit raters by increasing the quantity of approved agencies. Critics of the present designation system have raised legitimate concerns about competition. I agree with the supporters of 2990 that increasing competition in the credit ratings used for regulatory purposes is a desirable goal. We, however, should not seek to increase quantity of raters by sacrificing the quality of their ratings. In this debate, the issue of quality of ratings is at least equally important as the issue of quantity of raters. We, therefore, should have had an equal amount of time to debate this quantity-quality question on the floor. An equally balanced debate between the substitute and the general debate on the bill would have allowed for a more thorough vetting of these important matters. Now, let me turn to the bill itself. I would like to use the remainder of my time to make some observations. First, a robust, free market for trading debt securities relies on an independent assessment of financial strength provided by credit rating agencies, entities like Moody's, Fitch and Standard & Poor's. I have deep concerns and reservations about considering H.R. 2990, because it dramatically alters the way in which we identify the bodies that issue the credit ratings used for essential regulatory purposes and undermines the integrity of credit ratings. More significantly, I am concerned that 2990 could allow history to repeat itself. Under the worst case scenario, the bill would allow financial institutions to hold debt instruments in their portfolios that would not truly be investment grade, causing another taxpayer bailout similar to the savings and loan crisis. Moreover, the area of rating agency oversight is very technical. We should have thus worked with the experts of the Securities and Exchange Commission on these specialized matters. The failure to work with our Nation's primary securities regulator on H.R. 2990 is unexplainable, and a poor way to develop public policy. Instead of taking a hard approach with the Securities and Exchange Commission and guiding the legislation for the best interests of the public, we do neither. Mr. Speaker, this is important, not necessarily to the wealthiest or most sophisticated investors in America; this is important to the average investors in America, their pension funds and other investment instrumentalities. These nationally recognized statistical rating organizations are not just some dealership; they rate quality of portfolios that affect trillions of dollars in our economy. If we open up for purposes of quantity and competition this registration without addressing the question of quality, we run the risk that the misusers of this proposal will file, will register as a nationally recognized statistical rating organization, and will literally be able to sell their ratings to portfolios in the future and to instruments in the future. What will happen and what is the weakness here? This bill can pass today, open up those loopholes and the reality will not be known for 5, 10 or 15 years, until the next financial crisis in this country. We have no need to make this rush today. We should do it right. I ask that the substitute be supported.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, our capital markets rely on the independent assessment of financial strength provided by credit raters. The bill before us, however, would decrease the quality of credit ratings because it would dramatically alter the way in which government identifies entities to issue the credit ratings used for essential regulatory purposes. I therefore oppose H.R. 2990. In the 1970s, the Securities and Exchange Commission created nationally recognized statistical rating organizations. It is not a very sexy term and not well understood, but those are the little fellows that are called in to evaluate bonds and all types of instruments of debt and other materials that are sold throughout our financial system to pension funds and all others. They created these organizations in a rulemaking on the capital levels that brokers and dealers must hold. Since then, the term, with its inference to quality, credible, and reliable ratings has become embedded in numerous Federal, State, and local statutes, rules, and regulations. Many private parties have also included references to ``nationally recognized'' agencies in the terms of their contracts, corporate bylaws, and pension trust agreements. Foreign governments and international bodies have used the concept in their accords and codes, too. In considering any bill to modify the process for identifying ``nationally recognized'' agencies, we must, therefore, keep in mind the need to maintain high quality ratings. It is this credible and reliable standard on which investors rely. We should not lightly abandon this standard. Critics of the present designation system have raised legitimate concerns about competition. I agree with the supporters of H.R. 2990 that increasing competition in the credit ratings used for regulatory purposes is a desirable goal. I further agree that the current designation process should be improved. To achieve its objectives of greater competition, however, H.R. 2990 seeks to make statutory changes that will come at a dangerous cost. The bill, through its voluntary registration regime, will increase the number of ``nationally recognized'' agencies without providing sufficient authority to assure the issue ratings are credible and reliable. We must achieve equilibrium in these matters by balancing the desire to increase the quantity of approved credit raters with the need to ensure that their ratings are of a consistently high quality. The minimum standard set forth in H.R. 2990 that allows any credit rater to obtain the ``nationally recognized'' designation after 3 years of experience are akin to granting a driver's license to anyone who meets a 3-year residency requirement. We know, however, to keep our roads safe, every potential driver must pass one or more quality assurance tests administered by a third party before getting a license. Why should we hold those rating agencies that serve as gatekeepers to our capital markets to a lower oversight standard? Investor advocates have also concluded that quality should be an important factor in identifying ``nationally recognized'' agencies. The AFL-CIO, for example, has noted that replacing the concept of approved raters, ``with a mere registration process without substantive oversight will be harmful to investors,'' and ``ultimately to the functioning of our credit markets.'' In a recent letter, the Consumer Federation of America has additionally observed that the central provision of H.R. 2990 is ``fatally flawed.'' In competitive markets, ``some credit rating agencies will invariably compete based on the leniency of their ratings methodology. That is not good for investors or for the integrity and efficiency of the markets.'' Moreover, H.R. 2990 could allow history to repeat itself. In the wake of the savings and loan crisis, we required that the debt securities held in portfolios by financial institutions must be of investment grade as determined by a ``nationally recognized'' agency. I may point out, in response to my colleague, the chairman of my subcommittee, Mr. Baker, he seemed to indicate that the cause of the S&L disaster was that the rating agencies made mistakes. Quite to the contrary. The disaster was that the rating agencies were not used to determine investment grade instruments held in their portfolios, and that only occurred after the S&L disaster. This bill's failure to ensure that such ratings continue to be credible and reliable could one day create another regrettable situation whereby the taxpayers need to finance a bailout of the deposit insurance funds. Moreover, this legislation threatens the strength of the Securities Investors Protection Corporation, which protects investors against fraud. Less than 4 years ago, Congress wisely adopted the standards in the Sarbanes-Oxley Act to strengthen financial reporting, restore investor confidence, and assure the integrity of our capital markets. In an effort to promote competition, however, H.R. 2990 would weaken the quality of our ratings, thereby damaging investor confidence and the integrity of our markets going forward. It is, in other words, a step backwards. In sum, Mr. Chairman, I find such developments are highly regrettable today and I urge my colleagues to reject H.R. 2990. In response to the chairman of our committee's quoting from a letter addressed to me by Chairman Cox, our former colleague, he failed to read the second paragraph of Mr. Cox's letter, under part B. He properly read the first phase, and I won't repeat that, but Mr. Cox said, ``In the weeks and months ahead, the commission,'' speaking of the Securities and Exchange Commission, ``and its staff will continue to consider potential ways by which we can help facilitate the issuance of high quality ratings using our existing regulatory authority, including the adoption of an existing rulemaking proposal in some form or other approaches,'' thus indicating that the SEC has not had the opportunity to fully address this problem. The SEC has not been called to testify before the committee on the consideration of this bill, and the fact is that of the five hearings held by this committee, at least four of the five occurred without the concept of the piece of legislation we are considering today. I sympathize with the makers of this. I know they want to do the right thing. But speed to get a bill passed, to create an on-demand registration of a new entity that is so critical to trillions of dollars of instruments of debt should not pass this House without realizing the potential consequences, and they are great. I concede rating agencies that exist today have made mistakes in Enron and WorldCom, but I recall, and I guess I have served on the committee a little longer than most, but Mr. Oxley was certainly in the Congress, not on the committee at the time, but during the S&L disaster, I recall a very famous American, who is an economist and served in very high appointive office in the Federal Reserve, testifying before our committee that he had evaluated, for a professional fee, 20 entities, S&Ls, and had found them to be sound. Many of them failed within 4 months of his evaluation. Actually, 19 of the 20 he evaluated failed. This is not kid's play. This is not a bean bag. This is very serious rating information that investors across the country, indeed across the world rely upon. Quality is clearly as important as quantity. We can have both. Just taking a greater consideration and using the expertise and availability of the Securities and Exchange Commission may do us well. Mr. Chairman, I reserve the balance of my time.

Mr. KANJORSKI. Mr. Chairman, I yield 4 minutes to the gentlewoman from New York (Mrs. Maloney).

Mr. KANJORSKI. Mr. Chairman, I yield such time as he may consume to the gentleman from Massachusetts (Mr. Frank), the ranking member of the Committee on Financial Services.

Mr. KANJORSKI. Mr. Chairman, I reserve the balance of my time.

Mr. KANJORSKI. Mr. Chairman, I think there are good intentions on both sides of this issue, and unfortunately, I find it to be an extremely complicated issue and, most of all, not a sexy issue, as you can see by attendance on the floor. I doubt whether 5 percent of our viewing audience out there understands what a nationally recognized statistical rating organization really is, and probably not a great deal more really care about it. Except, when you look at what they do and the effect they have on all of our lives in some very big ways, they are an important entity and we have to get this right. And I want to point out that when this entity was constructed by rule, as Mr. Fitzpatrick pointed out, in 1975, there were originally three agencies that were granted this nationally recognized statistical rating organization nomenclature. Since that time, six have been added, for a total of nine. Existing today, there are only five because there has been consolidation in the industry. But what that indicates is that this has not been a prohibitive area for qualified organizations to gain the recognition of a nationally recognized statistical rating organization. I think, and I agree with our friends on the other side, that competition would be good, and the availability to enter this field would be much better if we can find a methodology to do that. It does not necessitate, however, a regimentation regime, and it certainly doesn't justify the thinking process that the marketplace, through competition, will cure all ends, and particularly if you look at the cost of competition and what it means. Certainly, when we are dealing with hundreds and billions and trillions of dollars in instruments to be evaluated by these organizations, whatever the cost of getting that down is infinitesimal to the importance of getting the quality of the organization correct and the rating correct to protect investors. I think that what we have a tendency to do is to think competition in and of itself is such a wonderful thing that it is going to solve all purposes. Well, I could suggest to my colleagues on the other side that if brain surgery is expensive we could entertain the idea that any doctor can register after 3 years of practice to be a brain surgeon, and that would qualify him to be a brain surgeon. And in many instances, in many places it clearly may, although I don't want him operating on my brain, and I assure you most of the Members of this House wouldn't want that process used to qualify one's self as a brain surgeon. This organizational structure and the methodology used in the rating agency are analogous to the complications of brain surgery in the financial field. There aren't many organizations that have the capacity to do it. Those that do should have methodologies of being tested as to quality, transparency and methodology, and they should have increased competition. That we agree upon. What we disagree upon is the nature of this bill and the regime of registration is not sufficient to guarantee quality. What may very easily happen is one or two rogue organizations, after 3 years, may apply, be designated as a nationally recognized statistical rating organization, and then do what Mr. Baker referred to, actually bid down the value by getting business and offering to give good ratings to get business. They may actually deteriorate the value and the quality of the ratings. We don't know that for certain. We don't want to suggest that. We want to make sure that we structure a methodology and means of designating nationally recognized statistical rating organizations so we don't have deterioration in quality just to get quantity. What we wish to have is quantity and quality, and both are equally important. I urge my colleagues in the House to consider that when they vote on this measure. I am offering a substitute which we will debate for 20 minutes immediately after the close of this debate. I think that this is premature. At the very least, the committee and the Congress should have received legitimate critiques from the Securities Exchange Commission with all the expertise that they have. I am sure most of us don't feel fully qualified to view the structure of these organizations and their ability to perform on the basis of what we know individually. We are relying on expertise evaluation that is contained in very limited areas, one of which is certainly an independent agency of the United States Government, the Securities and Exchange Commission. I would urge, at this time, a ``no'' vote on passage of this when we get to that point in the bill. Mr. Chairman, I yield back the balance of my time.

Mr. KANJORSKI. Mr. Chairman, I rise to claim the time in opposition.

Mr. KANJORSKI. Mr. Chairman, I rise in order to express some thoughts on the amendment, but I do not intend to oppose the manager's amendment itself. The manager's amendment, Mr. Chairman, makes a number of technical changes in the bill, improving its precision, fixing drafting errors and extending the implementation time frames. These changes are acceptable and appropriate. The manager's amendment also makes a set of larger and more significant changes; namely, it alters the bill's wording in multiple places in an attempt to address recently raised concerns about the possible creation of explicit and implicit private rights of action under the bill. Regardless of one's position on whether these changes are needed, and whether they accomplish their intended purposes, the fact is that these modifications are coming late in the legislative process and indicates that the legislation is not well thought out. Moreover, this is precisely the type of issue on which getting the views of the experts at the Securities and Exchange Commission would have been helpful and invaluable. That said, Mr. Chairman, I do not intend to object to the manager's amendment. Mr. Chairman, I have no further requests for time, and I yield back the balance of my time.

Mr. KANJORSKI. Mr. Chairman, I offer a substitute amendment.

Mr. KANJORSKI. Mr. Chairman, I yield myself such time as I may consume. While the supporters of H.R. 2990 have tinkered with and somewhat improved the bill since its introduction, the central provision of the legislation, in the words of the Consumer Federation of America, is ``fatally flawed.'' I am likewise very concerned that this bill sacrifices the quality of independent assessments of financial strength provided by the ``nationally recognized'' credit raters that help our capital markets remain vibrant. As a result, I am offering a substitute. Unlike H.R. 2990, which creates an untested system for establishing nationally recognized agencies, this alternative expedites and builds upon existing regulatory, private sector, and international reform efforts. The voluntary registration regime of H.R. 2990 will increase the number of nationally recognized agencies without assuring the credibility and reliability of the issued ratings. We must seek equilibrium, balancing the desire to increase the quantity of approved agencies with the need to ensure high-quality ratings. The substitute addresses this shortcoming. Moreover, H.R. 2990 ignores ongoing reform efforts. The Securities and Exchange Commission has a rulemaking pending on these matters. Currently, approved raters are also developing a voluntary, robust self-regulatory regime based on the industry code established by the International Organization of Securities Commissions. Moreover, the European Commission recently relied on this global code to oversee its approved rating agencies. Congress should build upon these domestic, private sector, and international reform efforts rather than creating chaos by forging a new regulatory plan. To ensure the advancement of good public policy in this area, we need to recognize the work of others. We also ought to provide for the continued legislative oversight of these matters and minimize unintended consequences. Specifically, the substitute would require the commission to complete its definitional rulemaking on what constitutes an approved rating agency within 60 days of enactment. It would also require the commission to establish public guidance about the process used to identify new, nationally recognized agencies within 180 days of enactment. The substitute would additionally encourage participating parties to expedite and complete their discussions over the voluntary framework to improve market discipline and enhance rating quality. Finally, it would require annual hearings before the Financial Services Committee to explore the need for further action. In short, the substitute establishes a globally consistent market- based approach. It protects the quality of ratings, enhances competition, and injects transparency into the process for determining nationally recognized agencies. It also promotes international harmonization; ensures that Congress stays focused on these matters; and gives the commission, which has the foremost expertise on these issues, a seat at the table in developing any future bill. In Monday's Bond Buyer, the head of JPMorgan's rating advisory group opined that efforts related to the rulemaking to defined approved rating agencies and to establish a voluntary framework consistent with global standards offers a ``positive solution'' to present concerns. We should heed his advice to balance quality and quantity concerns in order to ensure that investors benefit from the best thinking and the best opinions by passing this substitute. In sum, Mr. Chairman, the substitute pursues a more prudent course that accelerates and adds to ongoing domestic, private sector, and international reform efforts instead of creating an untested system for establishing nationally recognized agencies. This alternative would also protect investors by ensuring high-quality ratings. It is the better approach, and I urge its adoption. Mr. Chairman, I reserve the balance of my time.

Mr. KANJORSKI. Mr. Chairman, I yield 4 minutes to the gentleman from North Dakota (Mr. Pomeroy).

Mr. KANJORSKI. Mr. Chairman, may I inquire as to how many speakers are on the other side.

Mr. KANJORSKI. Then I will reserve my time.

Mr. KANJORSKI. Mr. Chairman, I think I have the right to close, so I will reserve my time.

Mr. KANJORSKI. Mr. Chairman, I yield myself the balance of the time. Mr. Chairman, I listened to the last speaker with somewhat dismay. He tended to quote a lot of votes. Yes, there was a vote that passed this on from the committee to the floor, and after the preceding vote that was held by the committee on the substitute he failed to inform the House that there were 35 against the substitute, 31 in favor of the substitute. This did not come out of the committee without contention. It came out on the voice vote because we saw the count was 35-31. We did not call for a vote. Secondly, the gentleman charges my suggestion of the substitute as a definition to define and maintain the status quo. Either he has not looked at the substitute or we define the status quo in different proportions because this substitute does several things. First and foremost, it would require the Securities and Exchange Commission to complete its definitional rulemaking of what constitutes an approved rating agency within 60 days of enactment. That does not give them unlimited time to continue to pursue. Within 60 days they have to have the definition. The second position, it would require the commission to establish public guidelines about the process used to identify new nationally recognized agencies within 180 days of enactment, within 6 months. That is hardly the status quo. Then, finally, we would encourage continuation and participation of the parties to expedite and complete a voluntary framework to improve the discipline and enhance rating quality. This substitute accomplishes several things, moves the process along but does not create an entire new entity and process which is contradictory to international agreements and other conditions held throughout the world. I urge the adoption of the substitute.

Mr. KANJORSKI. Mr. Chairman, I demand a recorded vote.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to the Sports Car Club of America and Laurel Run Borough, sponsors of the Giant's Despair Hill Climb in Laurel Run, Luzerne County, Pennsylvania, which is celebrating its 100th anniversary this year. Begun in 1906 as a supreme test of man and automotive machine, the hill climb has captured the imagination of many of America's premier race drivers and has provided a challenging course that has continued to attract racing aficionados year after year for the past century. Over the years, the Giant's Despair Hill Climb has played host to some famous personalities who dared to challenge the course's grueling and dangerous turns. Those people included Hugh Harding, Louis Chevrolet, Ralph DePalma, Carroll Shelby, Roger Penske, Bud Faust, Dellevan Lee, Dave Garroway, John Van Meyer, Oscar Koveleski, Jackie Cooper, John Halbing and Ron Moreck. Held just outside of Wilkes-Barre in Laurel Run Borough on East Northampton Street, the Giant's Despair Hill Climb starts out as a long, gently rising straightaway about one quarter mile in length that leads into a fast left turn that tests both nerves and skill. Then it goes on to a short chute and the ``Devil's Elbow,'' a sharply rising hairpin turn that goes off camber at its crest. Next is a series of 90 degree turns connected by short straights. Finally comes the incline, a meandering quarter mile stretch that rises at 22 degrees to the finish line. Ron Moreck finished the course in 39.914 seconds in 2001 and is the current race record holder. The Northeast Pennsylvania Regional Sports Car Club of America predicts at least 10,000 race fans from West Virginia to Connecticut will come to the area to see the race and that over $100,000 in revenues will be generated for the local economy. Oscar Koveleski, who won the race and set a new time record in 1977 that held for 15 years, described the event as one of the best hill climbs in the world. He also noted that the event has generated much interest from manufacturers of alternative fuel vehicles that include propane, electric hybrids, converted Indianapolis 500 cars that run on methanol, bio-diesel and other fuels. The original hill climb winner in 1906 finished the race in 2 minutes and 11 seconds. Technology and racing skills over the past 100 years have evolved to the point where the current record is 39 seconds. Mr. Speaker, please join me in congratulating the organizers and participants of the Giant's Despair Hill Climb. Over the past century, they and their predecessors have established and maintained an event of epic proportions that has captivated and entertained generations of Americans and has contributed to the advancement of automotive technology that has served this Nation well in this era of global economy.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to Tunkhannock Township, PA, which is celebrating its 150th anniversary this year. With an area of 38.9 square miles, Tunkhannock Township was once part of Coolbaugh Township that was founded in 1794. Tunkhannock Township became a separate township in 1830 and, in 1856, it was officially formed. Two of the earliest known settlers were Peter Merwine, who arrived in 1804 and George Altemose, who arrived about 1830. An 1875 map of Long Pond, the major community within the township, reflects that the land was primarily owned by Merwine and Altemose. Other owners included Nathan Hetter, Stephen Kistler, M. George, M. Heller, Levi Knecht, Mrs. Keiper, R.B. Bonser, H. Kingshold, J. Kresge, L. Bierman, P. Larzalere, Mrs. Barrall, E. Eckhart, Philip Henning and E. Christman. According to the census of 1900, Tunkhannock Township had a population of 329. By 1960, the population had dwindled to 214. Today, the population has expanded to 4,983. In its early days, the Township developed two sawmills that provided some employment opportunities and encouraged commercial activity. Three hotels emerged by 1856 including the Mount Pocono Hotel, Cold Spring Hotel and Tunkhannock Hotel. They all thrived from new settlers arriving to find land to build new lives and from weary travelers needing shelter and food. In 1883, the first post office opened in Long Pond. A one-room elementary school opened in Long Pond although student populations were small. Electricity did not come to the township until about 1940. Today Tunkhannock Township is, perhaps, best known as the home of the Pocono International Raceway, founded by Dr. Joseph Mattioli in 1968. The raceway has become internationally known and attracts hundreds of thousands of race fans annually. The facility is responsible for putting millions of dollars into the local economy over the years. Mr. Speaker, please join me in congratulating Tunkhannock Township on this auspicious occasion. Tunkhannock Township enjoys a rich heritage as a quiet residential community which has given birth to a tremendous economic engine in the form of the Pocono International Raceway that is helping fuel the economy of the entire Pocono region and beyond.

Mr. KANJORSKI

Mr. KANJORSKI. Madam Speaker, I rise in very strong support of the bill I introduced, H.R. 5232, the Cherry Valley National Wildlife Refuge Study Act. Located in the Pocono Mountains of northeastern Pennsylvania, Cherry Valley provides habitat to more than 75 species of national or regional concern, including several plants and animals listed as either endangered or threatened. These species include the bog turtle and the bald eagle. Monroe County, however, is also the fastest growing county in Pennsylvania, and this development now threatens and will soon encroach upon the habitat of these rare species. As a result, grass-roots efforts to protect these sensitive habitats have gained momentum and now have widespread support within the local community. Rarely in my career in Congress have I experienced such overwhelming local support for a legislative endeavor as I have encountered for the designation of a national wildlife refuge in Cherry Valley. Designation of a national wildlife refuge has bipartisan support from elected officials, including all three county commissioners, two State representatives, and a State senator. It also has the support of supervisors from all of the townships included and located in the Cherry Valley area. Moreover, my colleague from Pennsylvania (Mr. Dent) has joined me in sponsoring this legislation because he once represented parts of Cherry Valley when he served as a State senator. Area business owners have also voiced their support for this effort. For example, the Pocono Builders Association, a building industry trade association in Monroe County, passed a resolution in support of designating Cherry Valley a national wildlife refuge. Moreover, a number of local landowners have already put their land into easements and other conservation arrangements to facilitate the creation of a national wildlife refuge. Voters have also approved initiatives designed to provide the revenue needed for conservation purposes. Designation of a national wildlife refuge would, therefore, help to coordinate these efforts and provide Federal support for conservation of this important habitat. In order to determine the appropriate land for inclusion in a potential refuge, I introduced H.R. 5232, the Cherry Valley National Wildlife Refuge Study Act, after consulting with my colleagues and determining the best course of action. The bill authorizes a study to be completed by the Fish and Wildlife Service to determine what specific lands are suitable for inclusion in a potential refuge. The legislation does not authorize the creation of a national wildlife refuge at this time. The bill is intended merely to study areas for their potential for inclusion in a refuge, not to authorize the creation of another refuge. In addition, the study is designed to provide Congress with the information needed to determine if the designation of a wildlife refuge in Cherry Valley is appropriate. Before closing, I would like to thank my colleague from New Jersey (Mr. Pallone) and my colleague from Maryland (Mr. Gilchrest) for holding a hearing on this legislation. I also would like to thank my colleague from California (Mr. Pombo) and my colleague from West Virginia (Mr. Rahall) for moving this legislation through the House Resources Committee. Their work on this bill is much appreciated. In summation, I urge passage of this legislation.

Mr. KANJORSKI

Mr. KANJORSKI. Mr. Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to Dr. Patricia Donohue, president of the Luzerne County Community College, in Nanticoke, Pennsylvania, who was a recipient of the Wilkes-Barre Chamber of Business and Industry's prestigious ``Athena Award.'' The Athena Award honors women who show excellence in business accomplishments, community service, personal achievements, and assisting the efforts of other women working toward their full leadership potential. The concept started in 1980 when Martha Mayhood Mertz, then serving on the Board of Directors of the Lansing Michigan Regional Chamber of Commerce, realized that only one woman was recognized for excellence in her Chamber in 75 years. Since its inception in Michigan, thousands of ATHENA Awards have been presented throughout North America, Eastern Europe, Asia, and the Middle East. The Greater Wilkes-Barre Chamber has honored local women for their achievements since 1985. MotorWorld Automotive Group has remained a sponsor of the Greater Wilkes-Barre Chamber's ATHENA Award during that tenure. Dr. Donohue oversees a $36 million budget and remains active in the community volunteering her time with several organizations. She has spent countless hours providing guidance and mentorship to female professionals and young women. Dr. Donohue is a member of the board of directors of the Luzerne Foundation, Osterhout Free Library, F.M. Kirby Center and the Greater Wilkes-Barre Chamber. She is a member of the Council of Presidents of Luzerne County and serves on the board and executive committee of the Joint Urban Studies Center. Dr. Donohue has made a lifelong commitment to Girl Scouting and serves on the Executive Committee of the Girl Scouts of Penn's Woods Council. She served as the first chair of the NEPA Technology Institute and is a graduate of the Leadership Wilkes-Barre Executive Leadership program and the Lackawanna Leadership Executive Program. She is a member of the National Institute for Leadership Development and has sponsored/mentored more than 50 women for leadership training. Dr. Donohue serves on the Board of the American Association of Women in Community Colleges and on the United Way Campaign Cabinet. Among her many awards are the Outstanding Leadership Award from the American Association of University Women, Harrisburg and the Central Penn Technology Council's Outstanding Service Award. She has been recognized by Who's Who in America and the Outstanding Young Women of America and is the recipient of the Outstanding Service Award from the American Cancer Society, the Merit Recognition Award from Harrisburg Area Community College, and was named Community Woman of the Year by the American Business Women's Association. Mr. Speaker, please join me in congratulating Dr. Donohue on this important occasion. Dr. Donohue's commitment to the advancement of women and her devotion to community service have enhanced the quality of life greatly in the Wyoming Valley. It is fitting, indeed, that she be selected for this unique honor.