Sue Kelly

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, I rise today to pay tribute to the heroes of September 11, to offer my sincerest condolences to the family and friends of those who were taken from us on that awful morning, and to offer my prayers to the men and women of our Armed Forces who continue the fight spawned by those attacks. Much has been said about the firefighters and police officers who ran into those burning buildings, never to run out. I feel that we can never say enough about such unparalleled bravery. In the face of an unprecedented attack, they displayed unprecedented courage in fighting through smoke and flames to save people they had never even met. They made the ultimate sacrifice for their country, and their selfless action helped thousands of people escape the burning towers. The people I represent lost a number of their friends, their coworkers, and their family members, but because of the heroics of the ones who ran in, many mothers, fathers, sisters, brothers, sons, and daughters did make it home to embrace their families, and we pay tribute to the heroic firefighters and police officers who helped save lives on the anniversary of this attack on America. We yet mourn the 3,000 fellow citizens who lost their lives that day. These were men, women, and children who did nothing wrong; who had no enemies; no foreign policy. They were killed for merely living as free Americans. As we speak, tens of thousands of young men and women carry the stars and stripes on their sleeves working in hostile regions around the globe to protect the security and freedom many of us took for granted 3 years ago. Though they may be physically detached from their families and their loved ones, we hold a special place for them in our hearts. The sacrifices that they make can never be fully repaid, but we in this House and this Nation must remain committed to see that we try. And we must try to do so by providing our men and women in uniform the wages, benefits and respect that they deserve and that the American people expect. Mr. Speaker, following the attack on Pearl Harbor, President Franklin Roosevelt told a shocked and angry America, we will always remember the character of the onslaught upon us. I do not think a person in this House or in this country will ever forget the disbelief they felt on September 11. We must never forget the way we felt that day watching our friends and neighbors die before our eyes in an act of war. Our world was changed forever that day, as our Nation's otherwise passive course was suddenly and forcibly altered. We need to continue the lessons learned from September 11 and continue our steadfast and resolute fight to rid the world of this radical form of terror. We must never forget.

Mrs. KELLY

Mrs. KELLY. Mr. Chairman, I rise today in strong support for H.R. 2432, the Paperwork and Regulatory Improvement Act, of which I am a co- sponsor. This important legislation will enable Congress to take responsibility for the laws and regulations imposed on this Nation. Over the past 20 years, the costs and impacts of regulations have increased dramatically. We routinely authorize executive branch agencies to issue rules implementing the laws we pass in Congress. Just as Congress needs a Congressional Budget Office to check and balance the executive branch in the budget process, it also needs an analytic capability to check and balance the executive branch in the regulatory process. Our delegation of authority to the agencies does not relieve us of our duty to ensure the responsiveness and effectiveness of those agency regulations. Agency rules and regulations have the force and effect of law. They spew forth from the agencies more than 3 or 4,000 rules and regulations every 2 years, and Congress rightly should have better oversight. Since the 104th Congress, I have led the fight for a Congressional Office of Regulatory Analysis resulting in the passage of the Truth in Regulating Act of 2000. That statute authorized a 3-year pilot project, adding a function at the General Accounting Office to respond to Congress' request for an independent evaluation of selective economically significant proposed rules, including an evaluation of the proposals that are consistent with congressional intent. Instead of using their own experts, GAO planned to hire outside contractor experts for the 3-year pilot test. As a consequence Congress did not fund this approach. Today it is regrettable that despite the passage of TIRA, we still do not have an independent analysis of the various agencies regulatory analyses required by law or by executive order. H.R. 2432 would permanently authorize this function within GAO, ensuring full-time agency expertise within GAO. More importantly, the GAO's analysis would allow us to submit more informed and more influential comments on the cost, scope, and content of proposed rules during the public comment period. Clearly it is time to increase the transparency of important regulatory decisions, promote effective congressional oversight,and increase the accountability of agencies. The government is accountable to the people and must take responsibilities for the rules established under the laws Congress passes. Passage of H.R. 2432 would be one step toward Congress meeting its regulatory responsibilities. It is long past time for us to stop trying to change the subject and politicizing good public policy for small businesses. I urge my colleagues to vote for this bill, which is a small step towards giving some agencies the oversight they require.

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, I rise to support this legislation. The enactment of H.R. 2771 has significant implications for my district, immediately north of New York City. This includes portions of Westchester, Rockland, Dutchess, Putnam and Orange Counties. Through all of these counties all of New York City's drinking water flows. The entire Croton system of reservoirs, the lower third of this system, is in my district. New York City's tap water has been called the champagne of drinking waters because of its exceptional purity. And it is because of the actions that take place in my district and other Upstate counties that this water is so pure. We are happy to partner with the city to protect its water supply in a way that helps preserve the pristine character of the Hudson River Valley. And the 1997 Watershed Agreement has been an essential tool for maintaining this partnership. Through assistance provided under the Watershed Agreement, communities in my district have been able to develop plans which help preserve their character and protect the water supply for New York City. Without the agreement and the critical assistance of the EPA, the balance we have struck would be undermined. And so the passage of this bill is vital to the continuing partnership in my district. The cost savings brought by this agreement needs to be considered as well. The cost of a plant to filter New York City's water supply system which would be necessary if this 1997 agreement falls apart, has been estimated at $8 billion. The Watershed Agreement is an area of common ground. We have worked hard to get this agreement going. I thank my colleagues for considering this legislation that will allow this mutually beneficial process to continue.

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3170) to amend the Investment Company Act of 1940 to provide incentives for small business investment, and for other purposes.

Mrs. KELLY. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on H.R. 3170.

Mrs. KELLY. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I thank the Speaker very much for allowing me to bring this important legislation to the floor for consideration today. I also thank the gentlewoman from New York (Ms. Velazquez) for working with me on this important issue that will help small businesses. Small businesses are the backbone of our economy and Congress must ensure that they have every opportunity to succeed. It is crucial that small businesses have efficient access to capital in order to create jobs and ensure a strong and growing economy. Today, the legislation before us, the Increased Capital Access For Growing Business Act, will ensure that small businesses have better access to capital by modernizing outdated security laws. In 1980, Congress created Business Development Companies to encourage investments in small, developing and financially troubled businesses, known as ``eligible portfolio companies.'' BDCs are publicly traded investment companies that invest in both public and private companies and generate an injection of capital for businesses. BDCs have provided significant benefits to the economy, including the opportunity for the public to invest in small, developing companies while also supplying much needed financing. The legislation we are considering today makes important changes to the securities laws that ensure the viability of BDCs and expands the businesses these entities are able to assist. In 1980, BDCs were able to invest in approximately 66 percent of the 12,000 publicly held operating companies. Since that time, however, the Federal Reserve has amended its margin rules on several occasions, resulting in a clear decrease in the number of eligible portfolio companies. In order to correct these unintended consequences, the legislation amends the definition of an eligible portfolio company to enable the BDCs to have a greater flexibility in selecting appropriate investments. To accomplish this goal, the legislation permits BDCs to provide capital to a larger number of companies by increasing the size of companies that BDCs can invest in to reflect changes in the market since the creation of the act. The legislation also includes specific authority for the Securities and Exchange Commission to modify dollar thresholds in the future. This would enable the SEC to review these thresholds on a regular basis and consider changes that are in the interest of the companies trying to access capital and shareholders of BDCs. Small and developing businesses should be able to devote their energies towards their customers growing their business, not worrying about access to capital. As BDCs are able to provide financing to additional small and medium sized businesses, the economy will experience greater growth and job creation. I also would like to commend the chairman of the Committee on Financial Services, the gentleman from Ohio (Mr. Oxley), and the ranking member, the gentleman from Massachusetts (Mr. Frank), for recognizing the importance and urgency of this legislation and agreeing to move it quickly. This is a no-cost, common sense piece of legislation that will help small businesses and increase capital formation; and that is good, healthy economic structure for all. I urge my colleagues to join me in support of this important legislation for investors and small businesses. Mr. Speaker, I reserve the balance of my time.

Mrs. KELLY. Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, I rise today, Earth Day, to discuss the critical importance of investing in America's clean water infrastructure. As we begin the 21st century, investment in water infrastructure stands as one of the most important economic and environmental investments our government will make. Since 1972, our Nation has made important progress in improving the water quality of lakes, rivers and harbors across the land. However, we are at an important crossroad in the effort to make our Nation's waters fishable and swimmable. Recent studies by EPA, GAO and the Water Infrastructure Network all point to a water infrastructure funding crisis. According to EPA's Clean Water and Drinking Water Gap Analysis, America is facing a $535 billion funding shortfall for water infrastructure over the next two decades. This analysis comes at a time when the Federal Government is committing less than $2 billion dollars a year to water and wastewater infrastructure. The most significant improvements in water quality have resulted from our investments in wastewater treatment--if we fail to replace and upgrade existing wastewater treatment facilities we could see the progress of the past 30 years reversed. As we enter the summer months, over 30 million fisherman will head to their favorite fishing holes, millions more Americans will head to beaches and lakes for a refreshing swim. These simple summer pleasures share one common element--clean water. Investing in clean water infrastructure also makes eminent economic sense. According to the American Public Works Association, over 40,000 jobs are created for every billion dollars that is invested in wastewater infrastructure construction. As we reflect on the importance of clean water to our quality of life, I believe it is time to consider providing water infrastructure with the same funding priority we assign to highways and airports. Congress must begin considering long-term, dedicated funding for our Nation's water infrastructure.

Mrs. KELLY

Mrs. KELLY. Mr. Chairman, I offer an amendment.

Mrs. KELLY. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I also want to thank the gentleman from Pennsylvania (Mr. Toomey) for his collaboration on this proposal and Members of the Committee on Rules for allowing this amendment to be considered today. Most Americans with checking accounts would be shocked to learn that if they started their own business, any checking account they establish for that business would be prohibited from earning any interest. Yet that is the case today. Checking accounts held by small businesses are banned by Federal law from collecting the interest that money would earn if it were held by an individual. The amendment I am offering addresses this matter and it has been pending before Congress for some time now. This body has actually passed this measure by voice vote not once, not twice, but actually three times; twice in the last Congress, and once earlier in the earlier year in this Congress. Unfortunately, the job is not yet done. So I am coming again in the hope that we will finally be able to send this language to the President's desk. The provisions in this amendment will go a long way in helping our main street banks and small businesses which are essential to growth and communities and our overall economy. The Business Checking Freedom Act contains a number of important provisions. First, it repeals the 70-year-old law prohibiting banks from paying interest on business checking accounts after a transition period. And while I believe it should be repealed entirely, a bipartisan group of Members have agreed that a proper transition period is necessary. We are also aware of the potential impact of an outright repeal of the law. That is why a transition period is crucial. And we will continue to work to ensure that the needs of our smaller banks are being addressed. As a result, the legislation includes a 2-year transition period contained in the bill. I would also like to say that I share and recognize the concerns of some Members with regard to the ILCs and will work with my colleagues, including the gentleman from Ohio (Mr. Gillmor) and the gentleman from Massachusetts (Mr. Frank) to achieve a remedy to the concerns that have been raised about the ILCs. The legislation is important. It allows banks to increase money market deposits and savings account sweeps from the current 6 to 24 times a month. This gives banks an increase in their sweep activities, increasing the interest which businesses can make on their accounts. The final provision gives the Federal Reserve the opportunity to pay interest on the reserves that the banks need to keep within the Federal Reserve system. And Chairman Greenspan has repeatedly testified that he is in favor of this provision. It also gives the Fed the flexibility to lower reserve requirements, which enables the Fed to have greater control to maintain reserves at specific and consistent levels. This language will help foster healthy receiver balances and reduce the potential for volatility within the bank Federal funds rate protecting the Federal Reserve's ability to conduct monetary policy. Quite simply, this legislation is about creating a new and broader market option and supporting our small businesses at the same time. The amendment allows banks to pay interest on business checking accounts and increase sweeps activities. The amendment also allows the Fed to pay interest on the sterile reserves that banks are required to keep with them and lower reserve requirements. The amendment does not require or mandate anything. It allows the market to create change and not the government. I want to thank the gentleman from Pennsylvania (Mr. Toomey) once again for working so closely with me on this proposal. I thank Members for considering, once again, this important legislation. I have been working on it for many years. I really am pleased to be able to bring it to the floor. I ask my colleagues on both sides of the aisle to join me in strong support for this commonsense amendment that will help banks and small businesses fuel the economy. Mr. Chairman, I reserve the balance of my time.

Mrs. KELLY. Mr. Chairman, I yield my remaining minute to the gentleman from Pennsylvania (Mr. Toomey.)

Mrs. KELLY. Mr. Chairman, I demand a recorded vote.

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, I rise today in strong support of this resolution, first to praise the efforts of our men and women in the military who have worked so hard and sacrificed so much on behalf of this country. I also want to take a minute to recognize the courage and resilience of the Iraqi women. Under Saddam Hussein, Iraqi women lived in fear. They endured years of great beatings, torture, under a farce of a legal system under which they had no rights. Does no one remember the pictures of the Kurdish people, dead, holding their babies in their arms, trying to shield them from the horror of a weapon of mass destruction in Iraq? Only Baathists were awarded the right to have medical care. Families were torn apart on trumped-up charges. Divorce was grounds for having their children taken away. Imagine a mother watching her child die because of her political beliefs. Imagine watching a husband leave for work one day, never to come back. Imagine walking down the street and having their children ripped from their hands. The persecution of women under Saddam Hussein was brutal and systematic and left deep and damaging psychological wounds. Women were afraid to walk down the streets. Girls were afraid to go to school. With the source of that oppression now removed great challenges lie ahead. Some estimate, for example, that over 70 percent of the Iraqi women are illiterate. They could not go to school. Somehow this battered and oppressed nation has to educate a new generation of Iraqi children. And in the face of that tough task, there is optimism in Iraq. For the first time in generations, they see an opportunity where only once they had terror. Where once there was depravity, there is excitement and hope in these women for the future. I have met with these women. I have talked with these women. The optimism is due to the United States' intervention and the selfless service of our men and women in uniform. In our Armed Forces stationed in Iraq, women stand alongside with men there and they serve as a model for the Iraqi women who aspire to that kind of equality on their own in their own country. The new Constitution of Iraq calls for almost a 25 percent representation of women. The Iraqi women themselves have asked for 40 percent. Mr. Speaker, the resolution before us commends the Iraqi people for their courage in the face of unspeakable oppression. I commend the women of Iraq for overcoming that unspeakable adversity. I hope that everyone will back this bill.

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, as the Member of Congress who represents all of Putnam County, NY, I rise today to recognize Putnam County leaders, groups, and residents for their remarkable achievement in being recognized nationwide as one of eight Preserve America communities. The new Preserve America initiative was developed in cooperation with the Advisory Council on Historic Preservation, as well as the U.S. Departments of Interior and Commerce. Putnam County recently received a Preserve America Award at a White House ceremony hosted by First Lady Laura Bush. Located along the Hudson River, many of Putnam County's towns and villages were instrumental to trade and commerce throughout our nation's history. Putnam County has further demonstrated its ability to make history by becoming one of the first communities in our country to apply for and receive this special designation as a Preserve America Community. Putnam County's proactive spirit has been duly rewarded with this prestigious recognition. County government has partnered with local municipalities, historic societies, and non-profit organizations to develop initiatives and plans to protect historic property for economic development and community revitalization. These efforts have helped Putnam County emerge as a national leader in the preservation of cultural and natural heritage. I rise to commend Putnam County legislator Vincent Tamagna's dedicated efforts in spearheading the county's application efforts. I also rise to thank the Hudson River Valley Institute for its active support of Putnam County. Also deserving recognition and congratulations are Putnam County Executive Robert Bondi; the Putnam County legislature; Putnam County Historical Society; Putnam County Tourist Promotion Agency; Foundry School Museum; and the county's Historic Advisory Preservation Commission and its Office of the County Historian and County Archives. Mr. Speaker, I am extremely proud and honored to represent the people of Putnam County. They deserve this special designation for their steadfast commitment to preserving a uniquely historic past while planning for a bright and promising future.

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, I rise today to call attention to an issue that is too often overlooked in our society: the problem of suicide According to the Centers for Disease Control, a suicide occurs once every 18 minutes. In the year 2000, we lost 29,350 people to suicide. It is the third leading killer of children ages 10 to 14 in the U.S., causing 7.2 percent of the total deaths in that age group. For children ages 15 to 19, the percentage jumps to 12 percent. When most people are starting a family and beginning their careers, between the ages of 25 and 34, suicide is the number two cause of death. Too often suicide has been stigmatized as a weakness or character flaw. Instead, suicide must be viewed as it truly is: a symptom of mental illness. Viewing suicide as such allows us to recognize the warning signs (including depression, reckless behavior, substance abuse, and a drastic change in attitude and behavior) and helps encourage people to seek help. While the number of males who commit suicide is about four times higher than the number of females, it is important that we pay special attention to suicide attempts among females, especially teenage girls. It is estimated that women attempt suicide at a three-to-one margin. In the case of teenage girls, these attempts are often a cry for help at a very confusing time in their lives. We lose one person to suicide every 18 minutes. To put this in perspective, this equates to nearly 13,000 more deaths per year than homicide. We must do more to educate people about suicide, thereby helping to prevent it. For this reason I am sponsoring a Concurrent Resolution in support of National Survivors of Suicide Day and the ideals it upholds. This resolution recognizes and praises the work that numerous public and private sector groups carry out to raise awareness about suicide and provide treatment for depression.

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, I rise today to urge the passage of H.R. 1964, the Highlands Stewardship Act. The Highlands region is spread through parts of New York, New Jersey, Connecticut, and Pennsylvania and covers more than two million acres of pristine, undeveloped land. In studies in 1992 and 2002, the National Forest Service recognized the Highlands as ``nationally significant'' and estimated that 5,000 acres of land are lost to development just in the New York and New Jersey portions of the Highlands. The Highlands also serve as an ``oasis'' amid the urban centers of Philadelphia, Hartford, and New York. The region, with its networks of reservoirs and aquifers, supplies clean, safe drinking water for over 11 million Americans. At the moment, only 23% of those watershed lands are protected, with almost 100,000 of those acres being immediately threatened. Without these water sources, the sprawling metropolises we know today and New York and Philadelphia would have never developed. The tourist value of this region cannot be overlooked. Every year, over 14 million people visit the Highlands. This total is higher than the number of people who visit Yellowstone National Park every year, and we don't even have a geyser. Twenty million people live within a two hour drive of the Highlands. With the ever-increasing rigors of city and suburban life, it is important to have a place for families to unwind and interact with the natural splendors that are too often missing from their lives. The Highlands provides that and so much more. This bill will ensure that these natural beauties survive so that future generations can enjoy them as we do now.

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, it happens I do not agree with the previous speaker. I rise in strong support of the conference report before us. I would like to commend the gentleman from Ohio (Chairman Oxley) and the gentleman from Massachusetts (Ranking Member Frank) and their counterparts in the Senate for moving this legislation with great thoroughness, deliberation, and really in a strong spirit of bipartisanship. At the heart of the legislation is the permanent reauthorization of the Fair Credit Reporting Act. It has provided a national uniform credit reporting system that has effectively lowered the cost of credit. And it has increased the choice and convenience for millions of Americans across the country. The FCRA has helped to address other vital security issues such as combating identity theft and blocking terrorist financing under the U.S.A. Patriot Act, both issues that I have held hearings on in my subcommittee. Combating identity theft and drying up terrorist financing requires a collaborative effort of law enforcement and regulatory agencies, consumers, and financial institutions, all with access to appropriate information. We have also made some other important improvements to the FCRA in order to protect the sanctity of privacy for the American people throughout the credit granting process. I believe that one of the most important pieces of that is medical information. The medical information of consumers should be kept private. It does not need to be shared or be distributed by creditors or listed on credit reports. Individuals should know that their personal medical information belongs to them and it is not released for any other purposes, whether it is for the credit-granting process or employee background checks. And we have done that with our legislation by coding the information. I would like to thank the gentleman from Arkansas (Mr. Ross) and the gentleman from North Carolina (Mr. Watt) for working with me on this amendment that will protect medical information of individuals without disrupting the access to low-cost credit and the security of information. By allowing consumers to benefit from reporting the financial aspects of their transactions to credit bureaus while maintaining the sanctity of their medical privacy, this legislation is a real win for all Americans. Finally, I am pleased we were able to include a new title in the legislation, which creates a Commission on Financial Literacy and Education, or the SAFE Act. As a result of that strategy, we will have a clear vision of the future financial literacy that will be the benefit of all Americans. Mr. Speaker, I strongly support this legislation. Mr. Speaker, I rise in strong support of the Conference Report before us. I would like to commend Chairman Oxley and Ranking Member Frank--and their counterparts in the Senate--for moving this legislation with great thoroughness and deliberation and in the spirit of bipartisanship. The legislation, ``The FACT Act'', is the result of a dozen hearings, one hundred witnesses, and months of deliberations by my colleagues on both sides of the aisle, and both sides of the Capitol. At the heart of the legislation is the permanent reauthorization of the Fair Credit Reporting Act, or FCRA. FCRA has provided a national uniform credit reporting system that has effectively lowered the cost of credit, and increased choice and convenience for millions of Americans across the country. As a conferee on this report, I can tell you that we worked with many diverse interests before we reached a unified, solid product. And in this product, we have built on the framework of FCRA to ensure that the legislation continues to lower the cost of credit and help fuel our economy--while also creating new opportunities for populations who have never had access. That's why this legislation has overwhelmingly bipartisan support. FCRA has also helped address other vital security issues, such as combating identity theft and blocking of terrorist financing under the USA PATRIOT Act--both issues which I have held numerous hearings on in my Oversight Subcommittee. Combating identity theft and drying up terrorist financing requires the collaborative effort of law enforcement and regulatory agencies, consumers and financial institutions--all with access to appropriate information. I am extremely pleased that this conference report addresses these important issues, and improves our ability to combat identity theft and help law enforcement officials track down illicit money. The information-sharing under this legislation is essential to protecting the American people by detecting suspicious activity and weeding out wrongdoers. The national uniform standards under FCRA have also facilitated a financial institution's ability to utilize additional authentications and identity verifications to protect consumer security. And the increased protections incorporated in this legislation are critically important in enabling victims to correct the damage to their credit histories created by identity thieves. This legislation will further help law enforcement combat financial fraud and track down criminals and terrorists. And it adds new protections that are important to achieving these goals. We have also made other important improvements to FCRA in order to protect the sanctity of privacy for the American people throughout the credit-granting process. I believe the medical information of consumers should be kept private, and it does not need to be shared or distributed by creditors or listed on credit reports. Individuals should know that their personal medical information belongs to them and is not released for other purposes, whether it is for the credit granting process or employee background checks. And we have done this in our legislation by coding this information. I would like to thank Reps. Ross and Watt for working with me on an amendment that will protect the medical information of individuals without disrupting access to low cost credit and the security of information. By allowing consumers to benefit from reporting the financial aspects of their transactions to credit bureaus while maintaining the sanctity of their medical privacy, this legislation is a real win for all Americans. Finally, I am pleased that we were able to include a new title in the legislation, which creates a Commission on Financial Literacy and Education to improve the financial literacy of millions of Americans of all ages. At the crux of this language is the creation of the first ever national strategy for financial literacy--which will facilitate new public, private and nonprofit partnerships to help educate all Americans in financial literacy. The national strategy, and its subsequent report to Congress, will be known as ``The Strategy for Assuring Financial Empowerment'' or ``SAFE strategy'', based on legislation that I introduced--H.R. 3520, ``The SAFE Act''. As as result, the ``SAFE strategy'' will provide a clear vision for the future of financial literacy. The vision will provide a systematic approach to identify effective ways to increase the general education level of current, and future, consumers of financial services and products. The Commission and the ``SAFE strategy'' will be goal- oriented and subject to reviews by Congress through annual testimony. Mr. Speaker, I strongly support this legislation that is crucial to the economy and the security of the American people. I thank you for addressing these important issues and urge my colleagues to support this conference report.

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, I rise in support of this important legislation. The Medicare Prescription Drug and Modernization Act will provide prescription drugs to seniors, and provide additional money for doctors and hospitals, both of which are the front line in providing health care. I am particularly pleased with provisions in the bill which seek to provide financial assistance to hospitals currently experiencing difficulties with inadequate wage index reimbursement rates. And I am encouraged by the potential this bill holds for assisting hospitals in the Hudson Valley which are adversely affected by their proximity to the New York City Metropolitan Statistical Area (MSA). I would also like to direct my colleagues' attention to an aspect of this legislation which perhaps hasn't received a great deal of attention, and that's the provision that creates Health Savings Accounts. For years we have been concerned about the many people in this country who have no health insurance. Many of the uninsured are small business owners or employees who simply cannot afford health insurance. With the Health Savings Accounts established in this bill, the small business owner can not only save tax free money for health care, but offer tax free health care money to their employees. Think of it. Now, because of Health Savings Accounts, the owners of small businesses across the country can make contributions--tax free contributions--to their employees. Money in these accounts can be used for insurance premiums or spent directly on medical care. This means many more people can buy coverage. For the first time, health care will be more accessible to the millions of small businesses in this country. This is a powerful tool for empowering working Americans who deserve to control important decisions over their own medical care.

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, I rise in support of this legislation. Mr. Speaker, I would like to commend the gentleman from Ohio (Mr. Oxley) and the gentleman from Louisiana (Mr. Baker), the gentleman from Pennsylvania (Mr. Kanjorski) and the gentleman from Massachusetts (Mr. Frank) for their leadership in improving and moving this legislation through. It is going to send a clear message to all Americans that we are trying to make sure that when they invest their money, there will be fairness and there will be oversight in the marketplace. The interest of the investors of this Nation need to come first. As the gentleman from Delaware (Mr. Castle) said, this is a good step in restoring confidence to those people with whom we trust our investment money. And when we entrust that money to them, we want to know that it will be regulated, that the transactions will be transparent so we can see what they are doing. This problem with the mutual funds should have been addressed many years ago. Again, as my colleague, the gentleman from Delaware (Mr. Castle) pointed out, this is something the SEC should have acted on a long time ago, and especially during the 1990s when we had a strong market and such a bright light of investigation could have gone in with possibly less impact, because we certainly do not want to do anything that is going to affect this Nation's growth that we are experiencing with our economy now. I think it is imperative that Congress take action to strengthen investor confidence. It will allow our economy to continue to experience a full growth. And we have to be sure that our investors here in the United States, now over half of all American families are invested in mutual funds, we have to make sure that we have, they have the backing of Congress, that they have the oversight from Congress, but more importantly, that that backing and oversight comes from the SEC. They need to invest their hard-earned money with full faith and hope for prosperous futures. The Mutual Fund Integrity Fee and Transparency Act is an important step in the process. The legislation improves accountability and integrity by requiring a greater independence and transparency, as I mentioned before, and eliminating conflict of interests which we certainly are finding out were. Nearly 100 million Americans invest their money in mutual funds. These investments really represent a part of their nest egg. This is what they are using for their tuition for their kids. This is what they are going to use for their first home. It is what they are thinking about when they are thinking about what they are going to do for their retirement. These investments are the essential part of the lives of American families. Our work today is not going to be done. We are going to be all finished because this is a first step in this. We are going to continue to investigate these issues, and I look forward to continuing to work on these issues to strengthen investor confidence to ensure the highest level of integrity, transparency and accountability in this market. I want people to have faith when they put their dollars into the U.S. markets, that the market is acting in their behalf and not on the behalf of someone who is going to make a private profit from what their money is. I urge my colleagues to support this legislation.

Mrs. KELLY. Mr. Speaker, during debate on the bill today, the gentleman from Pennsylvania placed in the Record an editorial authored by the Attorney General of New York. I want to also include for the Record a response published on November 18, 2003, in the Wall Street Journal by the chairman of the Securities Exchange Commission. [From the Wall Street Journal, Nov. 18, 2003] Investors First (By William H. Donaldson) Washington.--Among its many roles, the Securities and Exchange Commission has two critical missions. The first is to protect investors, and the second is to punish those who violate our securities laws. Last week's partial settlement of the SEC's fraud case against the Putnam mutual-fund complex does both. It offers immediate and significant protections for Putnam's current mutual-fund investors, serving as an important first step. Moreover, by its terms, it enhances our ability to obtain meaningful financial sanctions against alleged wrongdoing at Putnam, and leaves the door open for further inquiry and regulatory action. Despite its merits, the settlement has provoked considerable discussion, and some criticism. Unfortunately, the criticism is misguided and misinformed, and it obscures the settlement's fundamental significance. By acting quickly, the SEC required Putnam to agree to terms that produce immediate and lasting benefits for investors currently holding Putnam funds. First, we put in place a process for Putnam to make full restitution for investor losses associated with Putnam's misconduct. Second, we required Putnam to admit its violations for purposes of seeking a penalty and other monetary relief. Third, we forced immediate, tangible reforms at Putnam to protect investors from this day forward. These reforms are already being put into place, and they are working to protect Putnam investors from the sort of misconduct we found in this case. Among the important reforms Putnam will implement is a requirement that Putnam employees who invest in Putnam funds hold those investments for at least 90 days, and in some cases for as long as one year--putting an end to the type of short-term trading we found at Putnam. On the corporate governance front, Putnam fund boards of trustees will have independent chairmen, at least 75% of the board members will be independent, and all board actions will be approved by a majority of the independent directors. In addition, the fund boards of trustees will have their own independent staff member who will report to and assist the fund boards in monitoring Putnam's compliance with the federal securities laws, its fiduciary duties to shareholders, and its Code of Ethics. Putnam has also committed to submit to an independent review of its policies and procedures designed to prevent and detect problems in these critical areas--now, and every other year. This settlement is not the end of the Commission's investigation of Putnam. We are also continuing to examine the firm's actions and to pursue additional remedies that may be appropriate, including penalties and other monetary relief. If we turn up more evidence of illegal trading, or any other prohibited activity, we will not hesitate to bring additional enforcement actions against Putnam or any of its employees. Indeed, our action in federal court charging two Putnam portfolio managers with securities fraud is pending. There are two specific criticisms of the settlement that merit a response. First, some have charged that it was a mistake not to force the new management at Putnam to agree that the old management had committed illegal acts. In fact, we took the unusual step of requiring Putnam to admit to liability for the purpose of determining the amount of any penalty to be imposed. We made a decision, however, that it would be better to move quickly to obtain real and practical protections for Putnam's investors, right now, rather than to pursue a blanket legal admission from Putnam. The SEC is hardly out of the mainstream in making such a decision. All other federal agencies, and many state agencies (including that of the New York attorney general), willingly and regularly forgo blanket admissions in order to achieve meaningful and timely resolutions of civil proceedings. Second, some have criticized the Putnam settlement because it does not address how fees are charged and disclosed in the mutual fund industry. While this issue is serious, the claim is spurious. The Putnam case is about excessive short-term trading by at least six Putnam management professionals and the failure of Putnam to detect and deter that trading. The amount and disclosure of fees is not, and never has been, a part of the Putnam case, and thus it would be wholly improper to try to piggyback the fee-disclosure issue on an unrelated matter. If our continuing investigation of Putnam uncovers evidence of wrongdoing in the fee-disclosure area, we will not hesitate to act, and the Commission is already moving forward with rulemaking that will address this issue, and others, on an industry-wide basis. Those lacking rulemaking authority seem to want to shoehorn the consideration of the fee- disclosure issues into the settlement of lawsuits about other subjects. But we should not use the threat of civil or criminal prosecution to extract concessions that have nothing to do with the alleged violations of the law. Criticism of the Commission for moving to quickly misses the significance of the Commission's action. While continuing our broader investigation of Putnam, we have reached a fair and far-reaching settlement that establishes substantial governance reforms and compliance controls that are already benefiting Putnam's investors. It is a settlement where the Commission put the interests of investors first. As the Commission continues to initiate critical and immediate reforms of the mutual-fund industry, and while we investigate a multitude of other cases involving mutual fund abuses, we will continue to seek reforms that provide immediate relief to harmed investors.

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, on rollcall No. 541 I was unavoidably detained. Had I been present, I would have voted ``nay.''

Mrs. KELLY

Mrs. KELLY. Mr. Speaker, the bill before the House today makes certain that the heroes of America's forgotten war are not forgotten. It is important because if we look at the Korean War Veterans Memorial here in Washington, D.C., we will see the words ``Freedom is not free.'' We need to remind ourselves that over 36,000 Americans lost their lives in a war that has been essentially simply forgotten by many, many people. Flying the flag on this day makes a difference because people will look at it, young people will look at it, and they will say why is the flag flying especially today. The flag is flying because it is a reminder and a recognition of the Korean War Veterans Armistice Day. It is a day when we all should stop and remember a tremendously difficult hard-fought war. We had an armistice there, and 1.8 million members of the United States Armed Forces fought bravely to preserve freedom and democracy in Korea; and we need to take time out to honor them. Mr. Speaker, I would like to thank the gentleman from Wisconsin (Chairman Sensenbrenner) for his leadership and his assistance in bringing this measure to the floor this morning, and I urge all Members to support H.R. 292.

Mrs. KELLY

Mrs. KELLY. Mr. Chairman, I thank the gentleman for yielding me this time, and I want to applaud both the chairman and the ranking member of the Committee on Financial Services for acting on this important legislation with the kind of thoroughness and deliberation that they did take. The legislation before us, the FACT Act, is the result of half a dozen hearings, 75 witnesses, and months of deliberation by my colleagues from both sides of the aisle. The construction of the legislation is the permanent reauthorization of the Fair Credit Reporting Act, or the FCRA. It has provided a national uniform reporting system that has effectively lowered the cost of credit and increased choices and convenience for consumers across the country. In our hearings, we heard extensive testimony from many diverse witnesses with different interests. But there was a common message that the FCRA has lowered the cost of credit and helped fuel our economy. And this extension of low-cost credit has created new opportunities for populations who have never before had access to credit. That is why this legislation has overwhelming bipartisan support. The Fair Credit Reporting Act has also helped address other important security provisions, such as combating identity theft and the blocking of terrorist financing under the USA PATRIOT Act, both issues which I have held a number of hearings on in my oversight subcommittee. Combating identity theft and drying up terrorist financing requires the collaborative effort of law enforcement and regulatory agencies, consumers and financial institutions, all with access to appropriate information. FCRA improves our ability to combat identity theft and help law enforcement officials track down illicit money under the PATRIOT Act. The information sharing under this legislation is essential to protecting the American people by detecting suspicious activity and weeding out wrongdoers. The national reform standards under FCRA have also facilitated the financial institution's ability to utilize additional authentications and identity verifications to protect consumer security. And the increased protections incorporated in this legislation are critically important in enabling victims to correct the damage to their credit histories created by identity thefts. This legislation will further help law enforcement combat financial fraud and track down criminals and terrorists. It adds new protections that are important to achieving these goals. We have also made other important improvements to the FCRA in order to protect the sanctity of privacy of the American people throughout the credit-granting process. I believe that medical information of consumers should be kept private and does not need to be shared or distributed to others by creditors listed on credit reports. Individuals should know their personal medical information belongs to them and is not released for other purposes, whether it is for the credit-granting process or employee background checks. And we have done this with our legislation by coding this information. Mr. Chairman, I would like to thank the gentleman from North Carolina (Mr. Watt) and the gentleman from Arkansas (Mr. Ross) for working with me on an amendment in full committee that will protect the medical information of individuals without disrupting access to low-cost credit and the security of information. By allowing consumers to benefit from reporting the financial aspects of their transactions to credit bureaus while maintaining the sanctity of their medical privacy, this legislation is a real win for Americans. Mr. Chairman, I strongly support this legislation. It is crucial to the economy and the security of the American people. I thank the chairman for addressing these important issues, and I urge my colleagues to vote for this legislation.

Mrs. KELLY. Mr. Chairman, I offer an amendment.

Mrs. KELLY. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, while this bill contains good consumer protections, my concern is that if free credit reports are extended to consumers, then there will be an unquestionable strain on the system. Unfortunately, the current system is not yet equipped to deal with overwhelming requests for credit reports that may result from offering free credit reports or any other extraordinary events. Consumers who have an identified need to access their file could find their request lost in an overburdened system. This will undoubtedly reduce service levels that could otherwise be dedicated to helping consumers who do have a concern about their files and need to have information quickly. After holding several hearings on the issue of identity theft, my concern is that large numbers of people simply looking for information could result in a chaotic shock to the system that would be ripe then for fraud and difficult to detect criminal behavior. In the full committee I offered an amendment to ensure consumers' requests are accommodated by alleviating burdens on credit bureaus as the new law is implemented. I am pleased we have included a lot of this language in the manager's amendment, and as a result, the underlying bill now directs regulators as they construct a system for implementation to take into consideration potential spikes in the volume of requests for first year of the legislation. It is a tremendous first step, but I do not feel it is enough. The amendment I am offering now builds on the manager's amendment and simply gives regulators the authority to respond on a temporary basis to the needs of consumers when credit bureaus are overwhelmed with requests after the 1-year implementation. If the regulators determine it is necessary to exercise this authority, the amendment also explicitly states that their temporary approach must maintain consumer access to credit reports for emergency or time-sensitive requests. Including incidents of home purchases and suspected identity theft. Without the flexibility that this amendment provides, customer service may decline as credit bureaus become overwhelmed with requests under extenuating circumstances. By giving regulators the authority to mitigate in these instances, credit bureaus would be able to devote time and attention that each request deserves. I want to thank both the chairman and ranking member for including some language in the manager's amendment on the first year of implementation, but this amendment would complete that work. It is a straightforward approach to a significant problem and I urge colleagues to support the amendment that will benefit millions of Americans who need prompt access to their credit reports. Mr. Chairman, I reserve the balance of my time.